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HomeMy WebLinkAbout2010-07-13 - AGENDA REPORTS - RESO PURCHASING POLICIES (2)Agenda Item: 3 CITY OF SANTA CLARITA JOINT CITY COUNCIL / REDEVELOPMENT AGENCY AGENDA REPORT City Manager Approval: CONSENT CALENDAR Item to be presented by: JVon Bischetsrieder DATE: July 13, 2010 SUBJECT: ADOPT RESOLUTIONS ESTABLISHING PURCHASING POLICIES AND PROCEDURES DEPARTMENT: Administrative Services RECOMMENDED ACTION Redevelopment Agency:. 1. Adopt a Resolution adopting public contracting and, purchasing procedures. 2. Adopt a Resolution adopting the City of Santa Clarita's Purchasing Policy Manual. 3. Adopt a Resolution adopting various purchasing -related policies. BACKGROUND The City Council activated the Redevelopment Agency of Santa Clarita by ordinance on November 28, 1989. Over the years, as redevelopment plans were formulated, the Agency began exercising more of its authorized powers to include initiating procurement actions. Government Code section 54202 requires the adoption of policies and procedures governing the purchase of supplies and equipment by local agencies. Staff has researched the best approach to comply with state purchasing requirements. A series of discussions among staff arid with the Agency Counsel's office resulted in the process of mirroring the City of Santa Clarita's Purchasing procedures as the most effective and efficient approach. This process will provide standardized processes for staff to follow for both agencies, minimizing any confusion. The first resolution adopts the City's Municipal Code sections covering procurement of goods and services, as well as public projects. This action also adopts the provisions of the Uniform fro N�) r2Cs 4 t o-7 VF -so NO ePA 10-k t,.!;..A*tW: cesQ go let)14 lo—�,f Public Construction Cost Accounting Act. This Act, also adopted by the City in 1993, provides increased bid limits and more flexible procedures for public project procurement. The second resolution adopts the City's Purchasing Policy outlining the policies and procedures for the acquisition of goods and services by the Agency. The last resolution adopts the following City of Santa Clarita procurement -related policies for the Agency, Disadvantaged Business Enterprise (DBE) policy, Procurement Card policy, Environmentally Preferred Purchasing (EPP) policy, Standards of Conduct Policy for Procurement Staff, and the Federally Funded Procurement policy. ALTERNATIVE ACTIONS Other action as determined by the Agency Board. FISCAL IMPACT No direct fiscal impact is anticipated with the adoption of the Resolutions. ATTACHMENTS Resolution - Resolution adopting Purchasing Code Resolution - Resolution adopting Purchasing Policy Manual Resolution - Resolution adopting various Purchasing policies Exhibit A to Resolution adopting Purchasing Code available in the City Clerk's Reading File Exhibit A to Resolution adopting Purchasing Policy Manual available in the City Clerk's Reading File Exhibit A to Resolution adopting various Purchasing policies available in the City Clerk's Reading File Exhibit B to Resolution adopting various Purchasing policies available in the City Clerk's Reading File Exhibit C to Resolution adopting various Purchasing policies available in the City Clerk's Reading File Exhibit D to Resolution adopting various Purchasing policies available in the City Clerk's Reading File Exhibit E to Resolution adopting various Purchasing policies available in the City Clerk's Reading File RESOLUTION NO. 10 - A RESOLUTION OF THE SANTA CLARITA REDEVELOPMENT AGENCY ADOPTING PUBLIC CONTRACTING AND PURCHASING PROCEDURES WHEREAS, the Santa Clarita Redevelopment Agency is a public body, corporate and politic that exercises governmental functions and has the powers prescribed in Community Redevelopment Law found at California Health & Safety Code §§33100 et seq.; and WHEREAS, as part of its governmental functions the Agency can enter into contracts for the performance of services and public works projects as well as for the purchase of supplies and equipment; and WHEREAS, in order to provide for the fair and orderly process for the selection of contractors and the expenditure of funds for the purchases of supplies and equipment consistent with state law, the Agency desires to adopt appropriate procedures. NOW, THEREFORE, REDEVELOPMENT AGENCY OF THE CITY OF SANTA CLARITA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1: The Agency Board finds that the above recitations are true and correct and are incorporated as a material part of this Resolution. SECTION 2: The Agency Board finds and determines the following: A. That the purchasing procedures for the Agency shall be as provided for in Exhibit A titled: Procedure 1.12 Purchases. B. That the public works bid procedure for the Agency shall be as provided for in Exhibit A titled: Procedures 1.14 Public Works Bid Requirements. The Agency in adopting Procedure 1.14 is implementing the Uniform Public Construction Cost Accounting Act per California Public Contracts Code section 22000 et seq. SECTION 3: The Agency Secretary shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED this day of , 2010. CHAIR ATTEST: SECRETARY STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Sarah P. Gorman, City Clerk of the City of Santa Clarita, do 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 2010, by the following vote: AYES: AGENCY MEMBERS: NOES: AGENCY MEMBERS ABSENT: AGENCY MEMBERS SECRETARY 2 [� STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) CERTIFICATION OF CITY COUNCIL RESOLUTION I, , City Clerk of the City of Santa Clarita, do hereby certify that this is a true and correct copy of the original Resolution 10- adopted by the Redevelopment Agency of the City of Santa Clarita, California on 2010, which is now on file in my office. Witness my hand and seal of the City of Santa Clarita, California, this day of 2010. City Clerk By Deputy City Clerk 3 b RESOLUTION NO. 10 - A RESOLUTION OF THE SANTA CLARITA REDEVELOPMENT AGENCY ADOPTING THE CITY OF SANTA CLARITA'S PURCHASING POLICY MANUAL WHEREAS, the Santa Clarita Redevelopment Agency is a public body, corporate and politic that exercises governmental functions and has the powers prescribed in Community Redevelopment Law found at California Health & Safety Code §§33100 et seq.; and WHEREAS, in order to ensure consistent, fair and clear policies for purchases by the Agency, the Agency desires to adopt the City of Santa Clarita's Purchasing Policy Manual. NOW THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF SANTA CLARITA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1: The Agency Board finds that the above recitations are true and 'correct and are incorporated as a material part of this Resolution. SECTION 2: The Agency Board adopts the City of Santa Clarita's Purchasing Policy Manual attached hereto as Exhibit A with the below alterations: A. When the term "City of Santa Clarita" is used it shall be replaced with "Santa Clarita Redevelopment Agency." B. When the term "City Council" or "Council" is used it shall be replaced with "Agency Board" or "Board." C. When the term "City Clerk" is used it shall be replaced with "Agency Secretary." D. When the term "City Manager" is used it shall be replaced with "Executive Director." E. When the term "City Attorney"' is used it shall be replaced with "Agency Counsel." SECTION 3: The Agency Secretary shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED this day of , 2010. CHAIR �r ATTEST: SECRETARY STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Sarah P. Gorman, City Clerk of the City of Santa Clarita, do 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 2010, by the following vote: AYES: AGENCY MEMBERS: NOES: AGENCY MEMBERS ABSENT: AGENCY MEMBERS 2 SECRETARY STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) CERTIFICATION OF CITY COUNCIL RESOLUTION I, , City Clerk of the City of Santa Clarita, do hereby certify that this is a true and correct copy of the original Resolution 10- adopted by the Redevelopment Agency of the City of Santa Clarita, California on , 2010, which is now on file in my office. Witness my hand and seal of the City of Santa Clarita, California, this __ day of 2010. City Clerk By Deputy City Clerk 3 F RESOLUTION NO. 10 - A RESOLUTION OF THE SANTA CLARITA REDEVELOPMENT AGENCY ADOPTING DISADVANTAGED BUSINESS ENTERPRISE POLICY, PROCUREMENT CARD POLICY, FEDERALLY FUNDED PROCUREMENT POLICY, STANDARDS OF CONDUCT POLICY AND ENVIRONMENTALLY PREFERABLE PURCHASING PROGRAM POLICY WHEREAS, the Santa Clarita Redevelopment Agency is a public body, corporate and politic that exercises governmental functions and has the powers prescribed in Community Redevelopment Law found at California Health & Safety Code §§33100 et seq.; and WHEREAS, in order to ensure compliance with Federal and State law and to ensure clear standards of conduct and other important practices, the Agency desires to adopt appropriate policies. NOW THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF SANTA CLARITA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1: The Agency Board finds that the above recitations are true and correct and are incorporated as a material part of this Resolution. SECTION 2: The Agency Board finds and determines the following: A. That the Agency's Disadvantaged Business Enterprise (DBE) policy shall be as provided for in Exhibit A. B. That the Agency's Procurement Card Policy shall be as provided for in Exhibit B. C. That the Agency's Environmentally Preferable Purchasing Program (EPP) shall be as provided for in Exhibit C. D. That the Agency's Standards of Conduct Policy for Procurement Staff shall be as provided for in Exhibit D. E. That the Agency's Federally Funded Procurement Policy shall be as provided for in Exhibit. E. SECTION 3: The Agency Secretary shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED this day of )2010. 7 CHAIR ATTEST: SECRETARY STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Sarah P. Gorman, City Clerk of the City of Santa Clarita, do 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 2010, by the following vote: AYES: AGENCY MEMBERS: NOES: AGENCY MEMBERS ABSENT: AGENCY MEMBERS SECRETARY 2 / STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) CERTIFICATION OF i CITY COUNCIL RESOLUTION I, , City Clerk of the City of Santa Clarita, do hereby certify that this is a true and correct copy of the original Resolution 10- adopted by the Redevelopment Agency of the City of Santa Clarita, California on , 2010, which is now on file in my office. Witness my hand and seal of the City of Santa Clarita, California, this day of 2010. City Clerk By Deputy City Clerk 3 Cf /Q DOJ�iI !a GafA S/nlC„ 1.12.010 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 purchasing, a purchasing. system is adopted. The procedures established in Sections 1. 12.050 through 1. 12.270 do not apply for the purchase of supplies and equipment for public works projects covered under Policy 1.14. 101 SCRDA PROCEDURE 1.12 PURCHASES Sections: 1.12.010 Adoption of Purchasing System. 1.12.020 Intentionally Blank. 1.12.025 Purchasing Officer. 1.12.030 Purchasing Agent. 1.12.040 Purchasing Regulations. 1.12.050 Exemptions from Centralized Purchasing. 1.12.060 Estimates of Requirements. 1.12.070 Requisitions. 1.12.080 Intentionally Blank. 1.12.090 Encumbrance of Funds. 1.12.100 Inspection and Testing. 1.12.110 Bidding. 1.12.120 Formal (Sealed) Bid Procedures. 1.12.130 Notice Inviting Formal Bids. 1.12.140 Published Notice for Formal Bids. 1.12.150 Intentionally Blank. 1.12.160 Intentionally Blank. 1.12.170 Bidder's Security. 1.12.175 Other Formal Bond Requirements. 1.12.180 Formal Bid Opening Procedure. 1.12.190 Rejection of Formal Bids. 1.12.200 Award of Formal Bid Contracts. 1.12.205 Support of Santa Clarita Businesses. 1.12.210 Tie Formal Bids. 1.12.215 No Formal Bids. 1.12.230 Open Market or Quote Procedure. 1.12.240 Minimum Number of Quotes. 1.12.250 Notice Inviting Quotes. 1.12.260 Record of Quotes. 1.12.270 Exceptions to Competitive Bidding Requirement. 1.12.280 Regulations Regarding. Selection of Professional Services. 1.12.300, Surplus Supplies and Equipment. 1.12.310 Surplus Supplies—Trade-ins. 1.12.320 Surplus Supplies—Sale. 1.12.330 Surplus Supplies—Donations. 1.12.010 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 purchasing, a purchasing. system is adopted. The procedures established in Sections 1. 12.050 through 1. 12.270 do not apply for the purchase of supplies and equipment for public works projects covered under Policy 1.14. 101 1.12.020 Intentionally Blank. 1.12.025 Purchasing Officer. There is created the position of Purchasing Officer, who shall be the Executive Director. The Purchasing Officer (or designee) may authorize and execute all documents relating to procurement actions of fifty thousand dollars ($50,000) or less. 1.12.030 Purchasing Agent. There is created the position of Purchasing Agent, who shall report to the Director of Administrative Services and/or his/her designee. The Purchasing Agent shall have the authority to: A. Purchase or contract for supplies and equipment required by any using agency in accordance with purchasing procedures prescribed by this Policy, such administrative regulations as the Purchasing Agent shall adopt for the internal management and operation of the purchasing function, and such other rules and regulations as shall be prescribed by the Agency Board or the Executive Director. B. Negotiate and recommend execution of contracts for the purchase of supplies, services and equipment. C. Act to procure for the Agency the needed quality in supplies, services, and equipment: D. Discourage uniform bidding, and endeavor to obtain as full and open competition as possible on all purchases. E. Through the Director of Administrative Services and the Executive Director, prepare and recommend to the Agency Board rules governing the purchase of supplies, services, and equipment for the Agency. F. Prepare and recommend revisions and amendments to the purchasing rules. G. Keep informed of current developments in the field of purchasing, prices, market conditions and new products. H. Prescribe and maintain such forms as are reasonably necessary for the operation of this Policy and other rules and regulations. I. Maintain a vendors list, vendors catalog file, and records needed for the efficient operation of the purchasing division. 1.12.040 Purchasing Regulations. The Purchasing Agent shall be responsible for determining that the regulations and procedures in Sections 1.12.050 through 1.12.330 are carried out. 1.12.050 Exemptions from Centralized Purchasing. The Executive Director may authorize, in writing, any department to purchase specified supplies, services and equipment independently of the Purchasing Division; but he shall require that such purchases shall be made in conformity with the procedures established by this Policy and shall further require periodic reports from the department on the purchases made under such written authorization. 1.12.060 Estimates of Requirements. All using departments shall file detailed estimates of their requirements in supplies and equipment in such manner, at such time, and for such future periods as the Purchasing Agent shall prescribe. /3 1.12.070 Requisitions. Using departments shall submit requests for supplies, services, 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. 1.12.080 Intentionally Blank. 1.12.090 Encumbrance of Funds. Except in cases of emergency, the Purchasing Agent shall not issue any purchase order for supplies or equipment unless there exists an unencumbered appropriation in the fund account against which said purchase is to be charged. 1.12.100 Inspection and Testing. The Purchasing Agent shall, in his discretion, inspect supplies, services, and equipment delivered to determine their conformance with the specifications set forth in the order. The Purchasing Agent shall have authority to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications. 1.12.110 Bidding. Purchases of supplies, equipment and services (other than professional) shall be by bid procedures pursuant to Sections 1. 12.120 through 1.12.260. Bidding may be dispensed with only under certain conditions stated in Section 1.12.270. 1.12.120 Formal (Sealed) Bid Procedures. Except as otherwise provided herein, purchases of supplies, equipment and services (other than professional) of an estimated value greater than twenty thousand dollars ($20,000) shall be awarded to the lowest responsive, responsible bidder, or most qualified bidder if the multiple criteria award process is followed, pursuant to the formal bid procedures described in Sections 1. 12.200 and 1. 12.205 hereinafter prescribed. Formal bids as used in this context includes any solicitation following the procedures prescribed below including, but not limited to, invitations to bid and requests for proposal. 1.12.130 Notice Inviting Formal Bids. Notices inviting formal bids shall include a general description of the article or service desired, shall state where bid documents and specifications may be secured, and the time and place for opening bids. 1.12.140 Published Notice for Formal Bids. Notices inviting formal bids shall be published at least ten (10) days prior to the date of opening of the bids. Notices shall be published at least twice in a newspaper of general circulation in the Agency and/or published on the City of Santa Clarita's website. 1.12.150 Intentionally Blank. 1.12.160 Intentionally Blank. 1.12.170 Bidder's Security. Where deemed necessary by the Purchasing Agent, formal bids shall be accompanied by security, either cash, cashier's check, certified check or surety bond, in a sum equal to ten percent (10%) of the total aggregate of the bid, and shall be designated in the notice inviting bids. Bidders shall be entitled to return of bid security; provided, however, that a successful bidder shall forfeit his bid security upon his refusal or failure to execute the contract within ten (10) days after the notice of award of contract has been mailed, unless the Agency is solely responsible for the delay in executing the contract. The Agency Board, or Purchasing Officer (or designee) for bids of fifty thousand dollars ($50,000) or less, may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder who is willing to execute the contract, or may reject all bids and readvertise. 1.12.175 Other Formal Bond Requirements. The Agency Board shall have authority to require a faithful performance bond or other bonds before entering into a contract pursuant to this Policy. If bonds are required, the form and amount thereof shall be designated in the notice inviting bids. 1.12.180 Formal Bid Opening Procedure. Sealed bids shall be identified as "bids" on the envelope. The Purchasing Agent, or designee, shall publicly open all bids at the time and place stated in the public notices. Electronic bids may be conducted in accordance with procedures established by the Purchasing Agent. Such procedures shall require, at a minimum, that electronic bids will be received only into an electronic time -locked box that may only be accessed by the Purchasing Agent, or designee, on the date and time specified in the bid. A tabulation of all bids received shall be available for public inspection in the purchasing office during regular business hours for a period of not less than thirty (30) calendar days after the bid opening. 1.12.190 Rejection of Formal Bids. In its discretion, the Agency Board or Purchasing Officer (or designee), for bids of fifty thousand dollars ($50,000) or less, may reject any and all bids presented and may cause readvertising for bids pursuant to the procedure hereinabove prescribed. However, when incomplete bids are received, a defect in the solicitation of bidding process is identified after the bid opening, all bids exceed the authorized budgeted amount, or if the products or services are no longer required, the Purchasing Officer (or designee) may authorize rejection of all bids and, if appropriate, authorize rebidding based upon the original specifications or as they may be modified, in accordance with procedures prescribed herein. 1.12.200 Award of Formal Bid Contracts. Except as otherwise provided herein, formal bid contracts exceeding fifty thousand dollars ($50,000) shall be awarded by the Agency Board to the lowest responsive, responsible bidder or most qualified bidder if the multiple criteria award process is followed. Formal bid contracts of fifty thousand dollars ($50,000) or less may be awarded by the Purchasing Officer (or designee) subject to the application of Section 1.12.205. The determination of "lowest responsive, responsible bidder" shall be at the discretion of the Agency Board pursuant to findings and �5 recommendations presented by the Purchasing Officer (or designee) at the time of award of contracts over fifty thousand dollars ($50,000). 1.12.205 Support of Santa Clarita Businesses. A. Should the bidder that submits the lowest responsive bid or quote and would otherwise . normally qualify to receive the bid pursuant to Sections 1.12.120, 1.12.200 and 1. 12.230 of the City of Santa Clarita Municipal Code not be a Santa Clarita business as defined herein, the lowest bid or quote submitted by a Santa Clarita business that is within ten percent (10%) of the lowest bid or quote, whether or not that bidder is the second lowest bidder, may be deemed to be the lowest bidder if the bidder agrees to reduce its bid to match the bid or quote of the lowest bidder in writing within one (1) business day, and providing that the Purchasing Officer, or designee, determines that said Santa Clarita bidder is a responsible bidder submitting a bid or quote that is responsive to the Agency's specifications, terms, and conditions and the application of this section is appropriate. B. If the lowest Santa Clarita bidder within ten percent (10%) of the lowest bid or quote does not elect to reduce its bid or quote to match the bid or quote of the lowest bidder, then the next lowest Santa Clarita bidder shall be given the opportunity to match the bid or quote of the lowest bidder as set forth above, providing that this bidder is also within ten percent (10%) of the lowest bid or quote that has been deemed responsive. C. To qualify as a Santa Clarita bidder, the bidder must have a physical presence within the Santa Clarita City limits by maintaining a permanent office, factory, or other facility carried on the business records with at least one (1) employee of the company operating out of said facility. The Purchasing Officer, or designee, is hereby granted the authority to finally determine if the bidder qualifies as a Santa Clarita bidder as set forth herein. The Purchasing Officer, or designee, may take into account the permanency of the business in Santa Clarita, and whether the business appears to be claiming to be a Santa Clarita business solely or primarily to qualify for the contract award, and any other material factors. D. This support of local business policy shall only apply to supplies, material, nonprofessional services, and equipment required for the conduct of Agency business, except where prohibited by state or federal law, and it shall only apply to purchases and contracts greater than two thousand dollars ($2,000). E. No contract awarded to a Santa Clarita business under this section shall be assigned or subcontracted in any manner that permits more than fifty percent (50%) or more of the dollar value of the contract to be performed by an entity that is not a Santa Clarita business as defined herein. F. Solicitations for bids or quotes must include notice of this section. 1.12.210 Tie Formal Bids: If two (2) or more formal bids received are for the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay of readvertising for bids, the Agency Board, or Purchasing Officer (or designee) for bids of fifty thousand dollars ($50,000) or less, may in its discretion accept the one it chooses or accept the lowest bid made by and after negotiation with the tie bidders at the time of the bid opening or award of contract. 1.12.215 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 Agency Board and award, if any, shall be made in accordance with applicable provisions prescribed herein. 1.12.230 Open Market or Quote Procedure. Purchases of supplies, equipment, and services (other than professional) of an estimated value in the amount of twenty thousand dollars ($20,000) or less may be made by the Purchasing Agent in the open market pursuant to the procedure prescribed in Sections 1. 12.240 through 1. 12.260 and without observing the procedure prescribed in Sections 1. 12.120 through 1.12.215; provided, however, all quoting may be dispensed with for purchases. of supplies and equipment having a total estimated value of less than two thousand dollars ($2,000). Quotes as used in this context include any solicitation following the procedures described below including, but not limited to, requests for quote and requests for proposal of twenty thousand dollars ($20,000) or less. 1.12.240 Minimum Number of Quotes. Open market purchases shall, wherever possible, be based on at least three (3) quotes, and shall be awarded to the quoter offering the most advantageous quote to the Agency after consideration of price, quality, durability,'servicing, delivery time, standardization, and other factors subject to the application of Section 1.12.205. 1.12.250 Notice Inviting Quotes. The Purchasing Agent shall solicit quotes by written and/or electronic requests to prospective vendors, or by telephone, or by public notice posted on a public bulletin board at the Agency offices. 1.12.260 Record of Quotes. The Purchasing Agent shall keep a written record of all purchases of two thousand dollars ($2,000) or more, whether accomplished by formal bid (Sections 1. 12.120 through 1.12.215), quote (Sections 1. 12.230 and 1.12.270), or through no bid at all (Sections 1. 12.230 and 1.12.270). All records so kept shall be available for public inspection and shall be subject to destruction in accordance with the City's retention schedule. 1.12.270 Exceptions to Competitive Bidding, Requirement. Notwithstanding any provision of this Policy to 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 two thousand dollars ($2,000). B. When the commodity can be obtained from only one (1) vendor. C. The Executive Director and/or his/her designee may authorize the purchase of materials, supplies, equipment, and services where an emergency is deemed to exist and it is determined that service involving the public health, safety, or welfare would be interrupted if the normal procedure were followed. All emergency purchases, which would otherwise require formal bidding procedures, made pursuant to this section shall be submitted to the Agency Board for ratification at the next regular Board meeting after the purchase is authorized. D. The formal bid process is waived for the purchase of information technology goods or services which may be acquired through the quote procedures described in Sections 1. 12.230 through 1.12.260. 1 �7 E. Any agreement involving acquisition of supplies, equipment, or service entered into with another governmental entity. F. Any request to waive competition for a procurement not covered by the exceptions herein must be approved by the Agency Board. In the event the Agency Board finds that it is in the public interest and necessity to purchase supplies, equipment, or services without compliance with the formal contract procedures set forth in this section, the Agency Board may waive such procedures by declaring so in a motion or resolution. 1.12.280 Regulations Regarding Selection of Professional Services. The Agency Board shall, by resolution, prescribe procedures, rules and regulations governing the solicitation, selection and award of proposals or bids for the furnishing of professional or consulting services, the contracts for which may be awarded without observing the bidding procedures provided for in this Policy. Such procedures, rules and regulations shall have as one (1) purpose the obtaining of professional services of the highest quality together with cost- effectiveness. 1.12.300 Surplus Supplies and Equipment. All using departments shall submit to the Purchasing Agent, at such times and in such forms as he shall prescribe, reports showing all supplies and equipment which are no longer used or which have become obsolete and worn out. 1.12.310 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 Agency use. 1.12.320 Surplus Supplies—Sale. The Purchasing Officer or designee shall also have authority to dispose of surplus supplies or equipment by auction or by sale or otherwise after receiving bids or proposals which, in his judgment, provide the maximum return to the Agency. 1.12.330 Surplus Supplies—Donations. The Purchasing Officer or designee shall have authority to dispose of surplus supplies or equipment by donation to local schools or nonprofit organizations when the estimated market value of such surplus is less than one thousand dollars ($1,000). SCRDA PROCEDURE 1.14 PUBLIC WORKS BID REQUIREMENTS Sections: 1.14.010 Purpose. 1.14.020 Bid Limitations. 1.14.030 Informal Bidding. 1.14.040 Maintenance of Contractors List. 1.14.050 Public Projects Included. 1.14.060 Rejection of Bids. 1.14.010 Purpose. This Policy is enacted for the purpose of implementing the Uniform Public Construction Cost Accounting Act (Public Contract Code Section 22000 et seq.) and to provide for bidding procedures in undertaking public works projects. 1.14.020 Bid Limitations. Bid limitations will be as set forth in the Public Contract Code sections applicable to local agencies. 1.14.030 Informal Bidding. Public works projects subject to informal bid procedures may be let to contract as follows: A. Purchasing shall maintain a list of qualified contractors, identified according to categories of work. Minimum criteria for development and maintenance of the contractors list shall be determined by the commission. B. All contractors on the list for the category of work being bid or all construction trade journals specified in Section 22036, or both all contractors on the list for the category of work being bid and all construction trade journals specified in Section 22036, shall be mailed a notice inviting informal bids unless the product or service is proprietary. C. All mailing of notices to contractors and construction trade journals pursuant to subsection (B) of this section shall be completed not less than ten (10) calendar days before bids are due. D. The notice inviting informal bids shall describe the project in general terms and how to obtain more detailed information about the project, and state the time and place for the submission of bids. . E. The award of project shall be made to the lowest responsible bidder, and the Purchasing Officer (or designee) is authorized to award and execute the construction contract provided the contractor has posted the required bonds and insurance. F. . If all bids received are in excess of one hundred twenty-five thousand dollars ($125,000),. the Agency Board may, by adoption of a resolution by a four-fifths vote, award the contract, at one hundred thirty-seven thousand five hundred dollars ($137,500) or less, to the lowest responsible bidder, if it determines the cost estimate of the public agency was reasonable. 1.14.040 Maintenance of Contractors List. Prior to November 30th of each year, the Purchasing Agent shall mail written notice to all construction trade journals designated by the CUCCAC, inviting all licensed contractors to submit information on firms to be included on the list of qualified bidders, according to category, for the following calendar year. The notice shall require that the contractor provide the name and 1q address to which a notice to contractors or proposal may be mailed, a telephone number at which the contract may be reached, the type or category of work in which the contractor is experienced and currently licensed to perform, together with the number and type of contractor's license or licenses held. The Purchasing Agent shall assemble an updated contractors list to be effective January 1st of each year, which shall'include all contractors who submitted one or more valid bids to the Agency during the preceding calendar year and all contractors who have properly provided the Purchasing Agent with the information described above. A contractor may be added to the list at any time during the year by providing the Purchasing Officer with the information described above. 1.14.050 Public Projects Included. Public projects will be performed pursuant to the Uniform Public Construction Cost Accounting Act and this Policy. Public projects include the following: A. Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility. B. Painting or repainting of any publicly owned, leased, or operated facility. C. In the case of a publicly owned utility system, "public project" shall include only the construction, erection, improvement, or repair of dams, reservoirs, power plants, and electrical transmission lines of two hundred thirty thousand (230,000) volts and higher. A "facility" means any plant, building, structure, ground facility, utility system, subject to the limitation found in subsection (C) of this section, real property, streets and highways, or other public work improvement. 1.14.060 Rejection of Bids. The Agency reserves the right to reject any and all bids presented. Should the Agency exercise this right, the procedures outlined in Public Contract Code 22038 will be observed. C:P-O ,exNrBr-r A C9- i TABLE OF CONTENTS SECTION DESCRIPTION PAGE INTRODUCTION 1 SECTION 1.0 GENERAL PROVISIONS 2 SECTION 2.0 SOLICITATION PROCESSES 4 SECTION 3.0 SUPPLIES/SERVICES/EQUIPMENT 9 SECTION 4.0 PROFESSIONAL SERVICES 12 SECTION 5.0 PUBLIC PROJECTS 14 SECTION 6.0 PURCHASE ORDER CHANGES 17 SECTION 7.0 SUPPLIER RELATIONS 19 SECTION 8.0 POLICY EXCEPTIONS 22 SECTION 9.0 GRATUITIES 24 SECTION 10.0 SURPLUS/TRANSFER OF PROPERTY 25 SECTION 11.0 PURCHASING WITH SPECIAL FUNDS 26 SECTION 12.0 SUSTAINBLE PURCHASING 27 APPENDIX A PURCHASING STANDARDS OF CONDUCT APPENDIX B SUMMARY OF RESOLUTIONS'AFFECTING PROCUREMENT APPENDIX C RECYCLED PRODUCT PROCUREMENT POLICY RESOLUTION 93-09 APPENDIX D PROTECTION OF TROPICAL TIMBER RESOLUTION 91-91 APPENDIX E STATE OF CALIFORNIA CO-OPERATIVE PURCHASING RESOLUTION 89-95 APPENDIX F CITY COUNCIL AGENDA ACTION AUTHORIZING CO-OPERATIVE AND "PIGGY BACK" PURCHASING JULY 11, 1995 APPENDIX G SUPPORT OF SANTA CLARITA BUSINESS ORDINANCE 04-12 AND ORDINANCE 09-6 APPENDIX H ENVIRONMENTALLY PREFERABLE PURCHASING (EPP) PROGRAM RESOLUTION 05-1.03 as INTRODUCTION Purchasing has prepared two documents to assist customers with procurement issues. The first is the Purchasing Policy Manual. The policy manual is designed for use by managers and supervisors directing or approving purchases. Derived from the municipal code, policy provides the processes to be used in making purchases to ensure compliance with the code. In the policy manual you will find a summary of the requirements of the code and the steps necessary to satisfy those requirements. The last document is a quick reference guide to the requirements for establishing a purchase order. This does not take the place of a good understanding of purchasing procedures but will help serve as a good starting point. In addition to these printed documents there are several references available online through Rnet. You are encouraged to review this site periodically for more detailed information. Purchasing Policy July 2010 Page 1 a3 SECTION 1.0 GENERAL PROVISIONS I. SCOPE All provisions listed here apply to all purchases in general. As used in this policy, unless the purchase order or contract specifically indicates otherwise: A. "City Clerk" shall mean the person responsible for the City's procurement program; B. "Purchasing Agent" shall mean the person responsible for the day to day operations of the purchasing function; C. Any purchase order or contract contrary to the provisions of this policy shall be null and void. II. PROCUREMENT AUTHORITY A. All purchases of $2,000 and over, require a purchase order processed by Purchasing as stated in this policy, before an order is placed, unless otherwise authorized by City Council. A purchase order is not required for professional services up to $2,000; however, a written contract is required.. B. The City Manager may waive this policy as necessary by recommendation to, and approval from, the City Council with the exception of those provisions applying to public works. Ill. PROCUREMENT RESPONSIBILITY It shall be the responsibility of the Purchasing Agent to: A. Procure quality supplies and services at the least expense to the City in a timely fashion; 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 necessary to meet statutes and policy; D. Prepare and maintain vendor files; E. Delegate the responsibilities of the Purchasing Agent as deemed necessary. Purchasing Policy July 2010 Page 2 T1 /L IV. GENERAL A. All purchases must be authorized by the Director (or designee) of the requesting department. B. Splitting of purchases to circumvent thresholds is prohibited. C. All listed thresholds include taxes, packing, shipping and handling. D. Competition is required for all purchases of $2,000 or more. E. Council approval is required for all expenditures over $50,000 except public projects where Council approval is required when the amount exceeds $125,000. Purchasing Policy July 2010 Page 3 �S SECTION 2.0 SOLICITATION PROCESSES I. SCOPE An appropriate competitive procurement process is required for all purchases of $2,000 and over. This section will cover the various solicitation processes and their use. Public project procurement is governed by State Codes and is discussed separately. Although not mandatory, Purchasing will make available sample templates for the various types of solicitations for use by staff. II. SOLICITATIONS A solicitation is the document by which the City's procurement needs and the format for responding is conveyed to vendors. The intended result of a solicitation is a procurement contract (including purchase orders and written contracts) and the solicitation must contain a process for determining the elements of a contract. There are various types of solicitations to cover different procurement situations. The most commonly used City forms are: Request for Quote (RFQ), Invitation for Bid (IFB) and Request for Proposal (RFP). The type of solicitation does NOT determine the method of successful vendor selection. With the exception of public projects, quotes and bids may be awarded on a basis other than lowest cost and for other than true professional services, RFPs may be awarded based on the lowest cost. The method of successful vendor selection needs to be specified in the solicitation. A. Request for Quote — The RFQ process is used for the procurement of material, equipment and general services costing $20,000 or less where the needs of the City may be adequately defined. B. Invitation for Bid — The IFB process is used for the procurement of material, equipment and general services costing over $20,000 where the needs of the City may be adequately defined and for public projects over $30,000. C. Request for Proposal — The RFP process is used for the procurement of professional services or material, equipment and general services where the City seeks proposed solutions from the marketplace to achieve goals and objectives stated in the RFP. Purchasing. Policy July 2010 Page 4 IZP— (�O III. REQUEST FOR QUOTE A Request for Quote (RFQ) is a simplified solicitation that can be as short as one page or more than 100 pages. The format is dependent on the circumstances of the procurement and the needs of the user. A. The RFQ must be in writing as well as any response. The records must be retained for 2 years, longer if federally funded. B. The response rate for RFQs varies, but is usually less than 25%. RFQs should be sent to as many businesses as possible to ensure a minimum of three good quotes are received. C. While not required, users are encouraged to allow sufficient time to permit advertisement on the City's website. D. Normally, 2-3 weeks should be allowed for a response to a quote. Simple and emergency quotes may be done as quickly as vendors can respond. E. If the RFQ is for services it must contain a sample of the contract document. F. The successful contractor is selected in accordance with the Municipal Code. IV. INVITATION FOR BID An Invitation for Bid (IFB) is a more structured solicitation reflecting the dollar value and complexity of the procurement. A. The IFB will contain detailed instructions and the City's terms and conditions. B. Notices of the IFB should be sent to all businesses that have provided information to the City as well as any known by the users to be interested in the opportunity. . C. IFBs must be advertised at least twice in the local newspaper as well as posted on the City's website. D. Normally, IFBs should be advertised at least 30 days before the responses are due. Slightly shorter response timeframes may be permitted for simple bids for off-the-shelf commercial items. Slightly longer timeframes may be needed to support questions or pre-bid meetings/site visits. E. The IFB and notice will state a time, date and place for submission of sealed responses and will be opened and read in public. Purchasing Policy July 2010 Page 5 F. If the IFB is for services it must contain a sample of the contract document. G. The successful contractor is selected in accordance with the Municipal Code. V. REQUEST FOR PROPOSAL A Request for Proposal (RFP) solicitation is normally used for professional services or where detailed specifications are not available and the City seeks solutions in the form of proposals from experienced firms. RFP solicitations are very specific to the situation. As the template from Purchasing must serve a variety of purposes it is intended to be modified for each situation. A. The RFP will contain detailed instructions and the City's terms and conditions. Contact Purchasing for retention requirements. B. Notices of the RFP should be sent to all businesses that have provided information to the City as well as any known by the users to be interested in the opportunity. C. RFPs should be advertised at least twice in the local newspaper as well as posted on the City's website. D. Normally, RFPs should be advertised more than 30 days before the responses are due. More complex RFPs and those expected to generate a large number of questions should be advertised 45 days prior to the date responses are due. E. The RFP must contain a sample of the contract document. F. Users can and should tailor the Scope of Work section to match their needs. Particular attention should be paid to the cost and evaluation portions. The evaluation of RFP responses and selection of successful contractor will be in accordance.with the procedures identified in the RFP. It is very important this process be clear and unbiased. The process should be carefully thought through and incorporated into the RFP. To facilitate the process a few general principles should be followed: A. The evaluation criteria should be listed in the order of their importance. B. The weights for each criteria should be determined and entered onto the evaluation score sheet form. The°form should be prepared when the RFP is prepared, but NOT included with the RFP. C. If pricing is requested, it should be requested as a separate, detachable section. While pricing may be requested, it may NOT be Purchasing Policy July 2010 Page 6 used as an evaluation criteria for architectural, landscape architectural, professional engineering, environmental, land surveying; and construction project management services. While pricing may not be considered in evaluating A&E services, a competitive process is still required by the state Government Code. D. When conducting RFP evaluations, a single individual should conduct reference checks and that score included on the score sheets: If pricing is included, the scoring for all other criteria should be completed before opening and including the pricing. E. Contract negotiations should begin with the highest ranked firm. Should an agreement not be reached, negotiations should be terminated with that firm and begin with the second ranked firm. The process should continue until an agreement is reached with a satisfactory firm. Vl. PUBLIC PROJECTS The City's public project solicitation process is governed by the State Public Contract Code (PCC). Additionally, the City has elected to become subject to the uniform construction cost accounting procedures. The procedures allow for an alternative bidding process. These alternative bidding procedures are found in PCC 22030-22050 and supplement the requirements of PCC 20100- 20104.70 and PCC 20160-20189. The successful contractor will be selected in accordance with the Public Contract Code. Public project solicitations are also guided by other State Codes as well as Federal Codes when any Federal funding is involved. Due to the complexities involved, staff is encouraged to contact Purchasing about their specific project. A. The alternative bidding procedure provides thresholds for the public project procurement process. For projects under $30,000 the procedure provides for the award of projects by Purchase Order other than by bidding. For staff this means that for projects between $2,000 and $30,000, the solicitation process may be by a request for quote. Projects over $30,000 must be bid by either the informal (projects from $30,000 to $125,000) or formal (projects over.$125,000) solicitation. The PCC provides for simplified and shortened notification procedures for informal bids. B. Request for Quote — The public project request for quote will follow the normal City request for -quote process with the exception of the format of and the award of the solicitation. The solicitation format will be modified to meet the needs of the using department and, the public project. The contract will be awarded to the lowest responsible bidder and may be awarded by the City Manager or designee. Purchasing Policy July 2010 Page 7 C. Invitation for Bid — Informal Public projects over $30,000 but less than $125,000 will follow the City's normal bid process with the changespermitted by the informal bid process cited in the Public Contract Code (PCC). (1) The notice inviting bids must be sent to the trade journals or all firms on Purchasing's contractor list or both at least 10 days before the bids are due to the City. The, notice is not required to be published in the newspaper. (2) A bid bond in an amount equal to at least 10% of the amount of the bid is required. (3) A payment bond in an amount equal to 100% of the contract value is required for all public projects over $25,000. Performance bonds may also be required. (4) The sealed bids will be opened and read in public. (5) The successful bidder will be the lowest responsible bidder and the contract may be awarded by the City Manager or designee. Plans and specifications do not require the approval of the City Council. D. Invitation for Bid — Formal Public projects over $125,000 will follow the City's normal bid process with the additional requirements of the Public Contract Code (PCC). (1) The notice inviting bids must be sent to the trade journals at least 30 days before and to the local newspaper at least 14 days before the bids are due to the City. (2) The plans, specifications and contract award must be approved by the Council. (3) A bid bond in an amount equal to at least 10% of the amount of the bid is required. (4) A payment bond in an amount equal to 100% of the contract value is required. Performance bonds may also be required. (5) The sealed bids will be opened and read in public. (6) The successful bidder will be the lowest responsible bidder and the contract will be awarded by the City Council. Purchasing Policy July 2010 Page 8 3 0 SECTION 3.0 SUPPLIES/SER VI CES/EQ UI PMEN T I. SCOPE This section, in conjunction with Section 1, provides the requirements for the procurement of all supplies, services (other than professional), and equipment. II. DEFINITIONS A. Supplies - Essential materials required for the effective operation of the City. Includes things such as, office supplies, tools and repair materials. B. Services - A service vendor (other than professional) generally provides maintenance and/or intangible goods, and does not typically require a license, certification or other professional criteria to perform the work. This includes services such as equipment maintenance, janitorial, printing, landscaping and refuse disposal. C. Equipment - Essential hardware required for the effective operation of the City. Includes things such as vehicles, fax machines, computers and copiers. D. D.D.P — Delivery Duty Paid is a shipping term outlining who is responsible for arranging shipping and the material while it is in transit. D.D.P. destination means the seller arranges shipping and is responsible for the material until it is delivered to the destination and is recommended on all purchases. E. Piggyback - Piggyback is a descriptive term referring to an activity where a third party, not part of the original contract, is allowed to place orders against the contract. III. REQUIREMENTS A. PURCHASES UNDER $2,000 (1) Coded invoice - determination of price reasonableness is recommended. (2) Evidence of a Contract - (services only) Contract number or copy of completed contract route sheet is acceptable. LA County is covered under a master agreement for most services. Purchasing Policy July 2010 Page 9 B. PURCHASES FROM $2,000 TO $20,000 (1) Product/service description/specifications (2) A minimum of three (3) written quotes (3) Evidence of a Contract - (services only) Contract number or copy of completed contract route sheet is acceptable. LA County is covered under a master agreement for most services. (4) Purchase order C. PURCHASES OVER $20,000 (1) Product/service specifications (2) Formal bid process (See Purchasing) (3) Evidence of a Contract - (services only) Contract number or copy of completed contract route sheet is acceptable. LA County is covered under a master agreement for most services. (4) City Council approval over $50,000 (Cite date of Council meeting and agenda item number) (5) Purchase order D. "SHOP LOCAL" INITIATIVE (1) All bids and quotes, not using a multi -criteria award designation are now required to be reviewed on a local preference basis. Local refers to any business having a working address within the City limits. For any bid that would have been awarded to a non- local vendor,. where a local vendor has come within 10% of the non -local bid, you must now contact the local vendor and offer them a chance to meet the low bid. If the closest local vendor (within 10%) is not able to meet the bid, the next lowest, local bid, within the 10% threshold will be contacted, and so on, and so on. This will continue until a local bidder has accepted the chance to meet the low bid or, all local bids within the 10% threshold have been contacted and none could meet the low bid. Then, and only then, will the non -local bidder be awarded the bid. IV. GENERAL A. All purchases of supplies/services/equipment over $50,000 require Council approval, including cumulative and cooperative "piggyback" purchases. B. All purchases that are delivered must be Delivered Duty Paid to the City of Santa Clarita receiving dock. Purchasing Policy July 2010 Page 10 �� C. A Purchase Order serves as a City contract for supplies and equipment. A formal service contract, including all applicable insurance and bonds, is required for all services. The contract number or copy of completed contract route sheet is acceptable evidence of a contract. LA County is covered under a master agreement for most services. D. For purchase orders of $50,000 or less, including those awarded by a formal bid process; the City Manager (or designee) may approve the purchase order. All purchase orders over $50,000 must have Council approval evidenced by the approved agenda report or the date of the council meeting and agenda item number. E. If you have a requisition that includes Section 3 items (supplies, services and equipment) and Section 4 items (professional services), it will be processed as a Section 3 requisition unless directed otherwise by the City Manager (or designee). Purchasing Policy July 2010 Page 11 3 SECTION 4.0 PROFESSIONAL SERVICES SCOPE This section, in conjunction with Sections 1 and 2, provides the requirements for the procurement of professional services. II. DEFINITIONS Professional service - A professional service contractor provides expert or professional advice and generally requires special licensing, certification, education or professional designation to perform such services. Professional services consist of the following; accounting, architectural, auditing, consulting, engineering, environmental, legal, surveying, or training. III. REQUIREMENTS A. PURCHASES UNDER $2,000 (1) Coded invoice (2) Evidence of a Contract —Contract number or copy of completed contract route sheet is acceptable. LA County is covered under a master agreement for most services. B. PURCHASES FROM $2,001 TO $50,000 (1) Evidence of a Contract -Contract number or copy of completed contract route sheet is acceptable. LA County is covered under a master agreement for most services. (2) Purchase Order C. PURCHASES OVER $50,000 (1) Evidence of a Contract - Contract number or copy of completed _ contract route sheet is acceptable. LA County is covered under. a master agreement for most services. (2) City Council approval (note date of meeting and agenda item number) (3) Purchase Order IV. GENERAL A. Formal bids are not required on professional services as they must be selected based on qualifications first, cost second. However, a selection process is required and quotations or proposals are recommended from a minimum of three qualified individuals or firms to ensure adequate comparison and fair pricing occur. Should negotiations prove unsuccessful with the primary professional service provider, written notice must be given to formally terminate Purchasing Policy July 2010 Page 12 t negotiations and negotiations shall commence with the second most - qualified firm. B. A copy of the contract or indemnity clauses must be included in all solicitations. C. A contract or letter of agreement specifying all necessary insurance and bonding requirements is required for services under this section. The contract number or copy of completed contract route sheet is acceptable. LA County is covered under a master agreement for most services. Purchasing Policy July 2010 Page 13 a6 SECTION 5.0 PUBLIC PROJECTS This section, in conjunction with Sections 1 and 2, provides the requirements for procurement associated with all public projects and is derived from the State Public Contract Code. II. DEFINITIONS A. A Public Project (also known as Public Works Projects and includes Capital Improvement Projects) - is defined in the Public Contract Code as follows: "Public project" means any of the following: (1) Construction, reconstruction, erection, alteration, renovation, improvement, demolition and repair work involving any publicly owned, leased or operated facility; (2) Painting or repainting of any publicly owned, leased or operated facility; (3) In the case of a publicly owned utility system, "public project" shall include only the construction, erection, improvement, or repair of dams, reservoirs, and electrical transmission lines of 230,000 volts and higher. (4) "Public project" does not include maintenance work. However, maintenance work IS still covered under prevailing wage. B. Maintenance work - For the purpose of public projects, "maintenance work" includes all of the following: (1) Routine, recurring, and usual work for the preservation or protection of any publicly owned or operated facility for its intended purposes; (2) Minor repainting; (3) Resurfacing of streets and highways at less than one inch; (4) Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and service of irrigation and sprinkler systems; (5) Work performed to keep, operate, and maintain publicly owned water, power, or waste disposal systems, including, but not Purchasing Policy July 2010 Page 14 E)(1-9 limited to, dams reservoirs, and electrical transmission lines of 230,000 volts and higher. C. Facility - For the purposes of a public project, "facility" means any plant, building, structure, ground facility, utility system subject to the limitation found in paragraph 3 of the public project definition previously stated, real property, streets, highways, or other public works improvement. III. REQUIREMENTS A. FOR PROFESSIONAL SERVICES ASSOCIATED WITH PUBLIC PROJECTS REFER TO SECTION 4.0 B. PROJECTS UNDER $2,000 (1)*- Coded invoice (2) Evidence of a Contract - Contract number or copy of completed contract route sheet is acceptable. LA County is covered under a master agreement for most services. C. PROJECTS FROM $2,001 TO $30,000 (1) Product/service descriptions/specifications (2) A minimum of three (3) written quotes. (3) Evidence of a Contract - Contract number or copy of completed contract route sheet is acceptable. LA County is covered under a master agreement for most services. (4) Purchase Order D. PROJECTS FROM $30,000 TO $125,000 (1) Product/service descriptions/specifications (2) Informal bid process (See .Section 2.V1 ) (3) Evidence of a Contract - Contract number or copy of completed contract route sheet is acceptable. LA County is covered under a master agreement for most services. (4) Purchase Order. E. PROJECTS OVER $125,000 (1) Product/service descriptions/specifications (2) Formal bid process (See Section 2.V1 ) (3) Evidence of a Contract - Contract number or copy of completed' contract route sheet is acceptable. LA County is covered under a master agreement for most services. (4) City Council approval of plans and specifications as well as the award of contract and expenditure (Cite date of Council meeting and agenda item number) (5) Purchase Order Purchasing Policy July 2010 Page 15 `� IV. GENERAL A. Project specifications and a contract identifying all insurance and bonding requirements are required for work contracted under this section. The contract number, copy of the contract, completed route sheet or the Risk Manager's authorization by email or memo satisfies this requirement. B. The project manager is responsible for ensuring all requirements of the Uniform Public Construction Cost Accounting Commission Act are followed. 38 Purchasing Policy July 2010 Page 16 SECTION 6.0 PURCHASE ORDER, CHANGES 1. SCOPE This section provides guidelines for changing established purchase orders. II. DEFINITIONS A. Change Order - A request to change any entry on an approved purchase order. III. GUIDELINES A. Generally, any change to a purchase order not affecting any money values may be made by any person in the department trained to do change orders to purchase orders. See Purchasing for more details. B. Changes resulting in a reduction in the dollar value of a purchase order may be made by any person in the department trained to do change orders to purchase orders. See Purchasing for more details. C. Changes that result in a purchase order exceeding a quote, bid or City Council approval threshold will be required to comply with the requirements of the new threshold. City Council approval will be required to approve changes exceeding the threshold for City Council approval. D. For change orders to purchase orders originally requiring Council approval, the following guidelines apply: (1) Purchase orders may be established for the Council -approved contract amount, plus any Council -approved contingency amount or $125,000, whichever is less; (2) A change to a purchase order that results in a purchase order total dollar amount less than the Council -approved contract amount plus any Council- approved contingency can be approved by the department head or designee subject to number three below; (3) Cumulative changes greater than $125,000 to a contract that result in a purchase order total dollar amount less than the Council -approved contract amount plus any Council -approved contingency must be approved by the City Manager and may require additional Council approval if deemed necessary by the City Manager; Purchasing Policy July 2010 Page 17 3 9 (4) A change to a purchase order that results in a purchase order total dollar amount greater than the contract amount plus any Council -approved contingency requires Council approval; (5) The maximum contingency is 15% unless otherwise approved by the City Manager; (6) The change order process and contingency amounts for all Council -approved items must be written into the recommendation in the agenda report to effect change orders stated in this policy without returning to Council for approval. Five specific things should be addressed in the recommendation paragraph answering who, how long, how much, contingency amount, and contract/change order signature authority. An example paragraph is as follows: Award contract to XYZ company for $400,000, $100,000 per year for four years, and authorize a 15% contingency expenditure should any change orders to the contract become necessary. Authorize the City Manager or designee to approve all change orders relating to this contract. See Purchasing for additional wording for renewals. E. For changes to purchase orders not originally requiring Council approval the procedures are as follows: (1) A change to a purchase order that results in a purchase order total dollar amount less than the thresholds for Council approval, or, for supplies/service/equipment, a purchase order total under $20,000 may be approved by the department head or designee; (2) A change to a purchase order for supplies/service/equipment that results in a purchase order total dollar amount from $20,000 to $50,000 must be approved by the City Manager or designee; (3) A change to a purchase order that results in a purchase order total dollar amount greater than the threshold limits requiring Council approval must be approved by Council. Purchasing Policy July 2010 Page 18 40 SECTION 7.0 SUPPLIER RELATIONS 1. SCOPE This section provides guidelines for employees participating in transactions on behalf of the City. See also the Purchasing Standards of Conduct Policy, Appendix A. II. ANTI-TRUST LAWS 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. 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, significant damage liability and injunctions or orders affecting property and/or business. An employee who participates in a violation may be individually and personally subject to fine or imprisonment. III. CONFLICT OF INTEREST Employees engaged in the purchasing function are expected to be free of interests or relationships which are actually or potentially malicious 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. Therefore, 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 a non-employee that is inherently unethical or that might be implied or construed to be unethical, or make possible personal gain due to the employee's ability to influence dealings; render the employee partial. toward the outsider for personal reasons or otherwise inhibit the impartiality of the employee's business judgment; place the employee or the City in an ambiguous, embarrassing or ethically questionable position; or reflect on the integrity of the City; Purchasing Policy July 2010 Page 19 `l C. takes personal advantage of an opportunity that properly belongs to the City. IV. SUPPLIER SAMPLES When suppliers offer samples for evaluation, they will be accepted only under the following conditions: A. The product is one that is of a type presently in use or is of potential use to the City. Samples of goods not likely to be purchased must not be 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 Material Safety Data Sheet; (must be kept on file with individual department accepting sample and a copy submitted to Technology Services for inclusion in the Fire Safety Manual); D. If supplier samples are accepted, they shall be promptly conveyed to the appropriate department for testing. Personal use of samples is prohibited. The supplier is entitled to a prompt evaluation of the given . sample. In the event a sample is requested from a supplier to evaluate its applicability to a particular situation, such samples shall 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. Ensure vendors are not precluded from providing price and specification quotations; C. Ensure the confidentiality of all specifications and price quotations or bids made by suppliers until all quotations or bids are received and the contract is awarded; D. Explain as clearly as possible to suppliers the reason for rejection of their quotations upon request; Purchasing Policy July 2010 Page 20 /c7- E. Remain scrupulously free from obligations to any Contractor; F. Ensure all vendors receive equal treatment and information. If one vendor receives information as a result of questions asked then all vendors must be given the same information unless such information is already contained in the solicitation. Any changes to or extensions of a solicitation should be made prior to the due date for the responses. Once the due date has arrived the process must be completed. Re- bidding should be restricted to substantive changes in the specifications. VI. SUPPLIER PERFORMANCE Most suppliers take great care to ensure their products and service meet our high standards. On occasion a product or service may not meet our expectations for one reason or another. We need to ensure we receive the quality we contract for. To this end, Purchasing has some basic steps to take if you encounter such a situation. A. The first step is to provide feedback to the company. This is a good idea whether there have been problems or not. B. For minor mistakes you should notify the supplier as soon as possible. Mistakes happen on occasion and most companies will correct the problem rapidly and at no cost if notified without delay. C. For more serious situations you will need to provide the notification by letter and in detail. The detail should include a request for remedy if appropriate. D. Always let Purchasing know as soon as you have any problems. If Purchasing assisted in the purchase, we used our forms which cover many common issues. If not, we can help you work through any problems with your vendor. Always provide copies of any documentation to Purchasing. The City has no debarment policy (this means you can't prevent a company form responding to a solicitation) but our awards go to the lowest responsive, responsible contractor. Past performance, if well documented, can be included in the determination of whether a company is responsible. Don't hesitate to contact Purchasing if you have any questions. Purchasing Policy July 2010 Page 21 �� SECTION 8.0 POLICY EXCEPTIONS I. SCOPE This section provides information on exceptions to this policy such as sole source selection and emergency purchases. II. DEFINITION A. Sole source — The services/products provided by the supplier are proprietary or unique in nature, such as patented or copyrighted material or an artist or performer's work; B. Single Source - (1) The supplier is the only source known to the City after (underlined for emphasis) a reasonable search for other suppliers has been conducted; -or- (2) The current work requirements are an extension of the original work and substantially rely on the experience gained during the original work. C. Emergency - A situation that threatens life or property. Time constraint is NOT an adequate justification for an emergency purchase. I11. GENERAL A. No purchase orders. are required for employee benefit payments. B. No quoting or bidding is required for purchases of products or services from a validated sole source. C. Grants made by the City are not considered purchases and are not subject to purchasing policy. An encumbrance may be established if desired. When the grant is disbursed, care must be taken to reference the encumbrance number (same as a purchase order number) to ensure the funds are disencumbered. D. The formal bid process is waived for the purchase of information technology goods or services which may be acquired through the quote procedures described in Sections 3.12.230 through 3.12.260 of the Municipal Code. E. Purchases for materials, equipment or services may be exempt from the requirement for competition by the City Manager in the event of an emergency. Council will ratify any such procurement that would normally have required Council approval at the next Council meeting. Purchasing Policy July 2010 Page 22 1 F. All policy exceptions and justifications must be noted in the comments or text field of the purchase requisition. G. For non-public project purchases, any exceptions other than those above require Council approval. H. For public projects, the only allowed exception is in cases of emergency. Purchasing Policy July 2010 Page 23s SECTION- 9.0 GRATUITIES. I. SCOPE This section provides guidelines on the acceptance of gratuities. IL DEFINITION Gratuity - a payment, loan, subscription, advanced deposit of money, service or anything of more than nominal value, present or promised, without expectation of substantial, equal, or greater consideration in return. III. GENERAL A. 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 and the item is not displayed in a conspicuous manner; (3) any edible item such as fruit or candy may be accepted but must be consumed by the department accepting the item. B. Any employee accepting gratuities over the amount specified in paragraph III.A.1 will be attended to in accordance with established personnel policies. Purchasing Policy July 2010 Page 24 4 SECTION 10.0 SURPLUS/TRANSFER OF PROPERTY I. SCOPE This section provides the requirements for the transfer or sale of City -owned property. II. DEFINITION A. City -owned property - any supplies, materials or equipment purchased by or donated to the City for City use. B. Surplus - no longer in use for the purpose for which it was originally purchased. III. GENERAL A. The Administrative Services Director, or Designee, may, by direct sales or otherwise, sell or dispose of any property belonging to the City and approved by the City Manager for such disposal. B. No member of the Council and no employee shall be permitted to purchase any assets or supplies from the City except those items disposed of in an open public auction and only through participation in said auction. C. The City Council may authorize transfer of equipment, supplies, and/or materials for non -monetary consideration to public agencies, educational institutions or for other such uses deemed to be in the public's interest. D. The City Manager, or designee, shall have the authority to dispose of surplus or equipment by donation to local schools or non-profit organizations when the estimated value of such surplus is less than one thousand dollars ($1,000) Purchasing Policy July 2010 Page 25 /� SECTION 11.0 PURCHASING WITH SPECIAL FUNDS 13019 This section provides the requirements for the use of special funds for purchasing supplies, equipment and services. 11. DEFINITION A. Special funds - proceeds of specific revenue sources that are restricted to expenditure for specified purposes. B. Granting agency - The state, federal or other agency granting funds to the City for expenditure. III. GENERAL Special funds may come with restrictions on the expenditure of those funds. For example, some funds may only be used to support a specific program and funds from federal sources generally require the purchasing process to follow federal procurement guidelines as well as those of the granting agency. These requirements may be complex and time consuming and should be considered when planning expenditures. The restrictions supplement and take precedence over City procedures. It is the responsibility of the group making the purchase with special funds to ensure compliance with any requirements of the granting agency. These conditions on expenditure are usually included with the grant but may also be found in legislation or regulations associated with the source of the funds. The City group receiving such funds will ensure proper distribution of all information regarding the use of special funds received. Purchasing will assist in the determination of such regulations and their application at the request of the using department. Purchasing Policy July 2010 Page 26 e SECTION 12.0 SUSTAINABLE PURCHASING 1. SCOPE This section provides the requirements in support of sustainable purchasing of supplies, equipment and services. The City has adopted an Environmentally Preferable Purchasing (EPP) Program included as Appendix H. This program provides general guidance towards improving the sustainable purchasing process. Additionally, the State Public Contract Code outlines some specific requirements for cities to follow. 11. DEFINITION A. Recycled products — For the purpose of compliance with the State Public Contract Code recycled products means printing and writing paper, paper products, mulch -compost and related products, glass products, lubricating oils, plastic products, paint, antifreeze, tires, tire derived products and metal products. B. Businesses - includes bidders, contractors, and other interested parties that provide services to, or sell products to, the state. C. Postconsumer material - means a finished material that would have been disposed of as a solid waste, having completed its life cycle as a consumer item, and does not include manufacturing wastes. III. GENERAL State Public Contract Code Section 22150 requires cities to purchase recycled products if fitness and quality are equal and the recycled items are available at the same or lesser total cost as non -recycled items. State Public Contract Code Section 22152 requires cities to require businesses to certify in writing the minimum, if not exact, percentage of postconsumer materials in the products, materials, goods, or supplies, offered or sold. All printing contracts shall require recycled content paper. Appendix H provides additional information to support the Council's goal of supporting sustainability. IV. REQUIRED ACTIONS A. All City purchases will encourage businesses to identify potential recycled product candidates with postconsumer waste. They may be offered as alternatives to or equivalents for any products requested. Purchasing Policy July 2010 Page 27 l� B. All City purchases will require responding businesses to certify the postconsumer content of the products being offered even if that content is zero. C. All City contracts resulting in printed materials will require the printing to be on recycled paper. Purchasing Policy July 2010 Page 28 /^ D APPENDIX A PURCHASING STANDARDS OF CONDUCT CITY OF SANTA CLARITA Standards of Conduct Background for Purchasing Staff In recognition of the special trust inherent in Purchasing Staff positions charged with guiding the expenditure of public funds, the highest standards of conduct are considered essential. These expectations are reflected in the Standards of Conduct established by this policy and are applicable to all city employees assigned to Purchasing under the supervision of the - Purchasing Agent. The California Code of Regulations and State Government Code provide basic guidance regarding financial conflicts of interest. The intent of this policy is to supplement the financial conflict of interest regulations with broader standards of conduct and cover procurements involving federal funds. 1061WO / All conflict of interest regulations as stated in the California Code of Regulations and Government Code are considered an integral part of this policy. No part of this policy will alter or supersede any portion of the City or State guidance on conflict of interest. All requirements of this policy are additive to the City and State guidance. In order to prevent the perception of favoritism, all administrative processes will be followed diligently, consistently and openly. One of the primary responsibilities of public servants is the protection of public confidence and trust in the integrity of governmental processes. Any conduct which may detract from this trust is prohibited. The mere "appearance" of a conflict of interest may result in the same damage to public trust in government as actual wrongdoing. Action or inaction.that results in the "appearance" of conduct prohibited by this policy is also prohibited. DEFINITIONS Financial interest — Financial interest will be the same as defined -in the Statement of Economic Interest Form 700. Immediate family member — Parents, siblings, spouse or partner, parents and siblings of spouse or partner and children. Organizational conflict of interest — Organizational conflicts may result in bias or unfair competitive advantage. An organizational conflict of interest occurs where - because of other activities, financial interests, relationships, or contracts — an employee or contractor is unable, or potentially unable, to render impartial assistance or advice to the City, the employee or contractor's objectivity in performing work is or might be impaired; or a contractor has an unfair competitive advantage. 1 z - Generally, an "organizational' conflict arises because a person or entity has or appears to have loyalties to, or a financial interest in, two organizations that may have competing or differing interests from each other -- one of them being the grantee. For example, an organizational conflict. would arise if an employee or a .consultant serves as a member of a public or quasi -public body with regulatory authority over a project or has a stake in its outcome. This arises most often where architects sit on design review or zoning boards. Purchasing Policy July 2010 Appendix A Page 1 Personal conflict of interest - A personal conflict of interest arises when an employee or immediate family member has a financial interest in a firm selected, or competing, for a contract. A. personal conflict of interest also arises where any employee solicits or accepts gifts, gratuities, favors, or anything of monetary value from a firm under contract or potentially seeking a contract. In addition, a personal conflict of interest arises where any such person uses his position, or non-public information gained during his work for the City, for personal gain, including gain inuring to an immediate family member. Personal gain — includes gain inuring to immediate family members unless otherwise stated. Purchasing staff — The Purchasing Agent and any employee under the supervision of the Purchasing Agent. STANDARDS OF CONDUCT Purchasing staff will: A. Avoid the intent and appearance of unethical or compromising practice in relationships, actions, and communications. B. Avoid any personal business or professional activity that would create a conflict between personal interests and the interests of the employer. C. Immediately report any potential conflicts of interest to their supervisor. D. Avoid. soliciting or accepting money, loans, credits, or preferential discounts, and the acceptance of gifts, entertainment, favors, or services from present or potential suppliers that might influence, or appear to influence, procurement recommendations or decisions: E. Refrain from the use of City property or resources for personal advantage. F. Avoid inequitable treatment of vendors to include, favoritism, unnecessary use of brand names and organizational conflicts. G. Handle confidential or proprietary information with due care and proper consideration of ethical and legal ramifications and governmental regulations. 1. PERCEIVED IMPROPRIETY Purchasing staff will avoid the intent and appearance of unethical or compromising conduct in relationships,. actions, and communications. The consequences of a perceived impropriety can be the same as consequences of an actual impropriety. Therefore, it is essential that any activity or involvement between Purchasing staff and active or potential suppliers which in any way diminishes, or even appears to diminish, open and fair treatment of suppliers shall be strictly avoided. Those who do not understand the circumstances will judge based on appearances. Purchasing staff must consider this and act accordingly. The following are recommended guidelines in dealing with perception: El Situations may occur in which, through unanticipated circumstances, a business relationship transpires with a personal friend. The perception (as well as the 19 - Federal transit law requires grantees to award contracts through a process of full and open competition. Organizational conflicts of interest that give any party an unfair competitive advantage impede full and open competition, and thus are. considered "restrictive of competition" under Paragraph 8(a)(5) of FTA Circular 4220.1 E. Purchasing Policy July 2010 Appendix A Page 2 L� potential) of a conflict of interest should be discussed with management, and a reassignment of procurement responsibility should be considered. ❑ Business meeting locations should be carefully chosen. Environments other than the office may be perceived as inappropriate by, the business community or by co- workers. 0 Displays of personal preference may give an impression of impropriety and should be avoided. Conversation that delves excessively into personal affairs should be avoided. 0 Positive action should be taken by management to alleviate suspicion of impropriety. This does not mean you or your immediate family can't have friends in the business community or even ones that do business with the City. What it does mean is that when they become involved with a purchase or contract, you must notify your supervisor. 2. CONFLICT OF INTEREST Avoid any personal business or professional activity that would create a conflict between personal interests and the interests of the employer. Purchasing Staff must not use their positions in any way to induce another person to provide any benefit to themselves, or persons with whom they have family, business, personal, or financial relationships. Even though a conflict may not technically exist, staff must avoid the appearance of such a conflict. Whenever a potential conflict of interest arises, the employee should notify the appropriate supervisor for guidance or resolution. The following are recommended guidelines to avoid conflicts of interest: Conduct to be Avoided ❑ Engaging in outside business, or employment by an outside organization, which may encroach upon the supply professional's primary responsibility of loyalty to the goals of the City. 0 Engaging in improper personal business with, or employment by, an organization which has or may conduct business with the City. Examples include but are not limited to: a) Owning or leasing any property with knowledge that the employer has an active or potential interest therein. b) Having a direct or indirect interest in or relationship with a non-employee that is inherently unethical or that might be implied or construed to be unethical, or make possible personal gain due to the employee's ability to influence dealings; render the employee partial toward the outsider for personal reasons or otherwise inhibit the impartiality of the employee's business judgment; place the employee or the City in an ambiguous, embarrassing or ethically questionable position; or reflect on the integrity of the City. C) Taking personal advantage of an opportunity that properly belongs to the City or using City property or resources for personal gain. d) Using the City's name (unless authorized) to lend weight or prestige to sponsorship of a political party or cause, or endorsing the product or service of another organization. ❑ Taking personal advantage of an opportunity that properly belongs to. the City or using City property or resources for personal gain. 0 Willfully or unlawfully concealing, removing, mutilating, falsifying or destroying any government document or record, nor will he or she make any false or fictitious statements in connection with any official matter, document or record. Purchasing Policy July 2010 Appendix A Page 3 9. 50 Personal Investment Ownership of stock in a supplier or potential supplier of goods or services should be ' reported to the supervisor for review and guidance to avoid the potential for impropriety. Interests by members of the professional's immediate family are considered to be of the same significance as direct ownership. Outside Activities Purchasing Staff must not use their position with their employer when participating in outside educational, professional, political, philanthropic, social, or recreational activities, which might be detrimental to their employer's business or reputation. 3. ISSUES OF INFLUENCE Avoid soliciting or accepting money, loans, credits, or preferential discounts, and the acceptance of gifts, entertainment, favors, or services from present or potential suppliers that might influence, or appear to influence, supply management decisions. Those in a position to influence the supply process must be dedicated to the best interests of the City. It is essential, for all in a position to influence a purchasing decision, to avoid any activity which may diminish, or even appear to diminish, the objectivity of the decision making process. In some circumstances, items which could be considered an issue of influence may be a bona fide business activity. In such cases, extreme care should be taken to evaluate the intent and the perception of acceptance of such an offer to ensure: ❑ It is legal. ❑ It is in the best interests of the City. ❑ It will not influence the purchasing decision. ❑ It will not be perceived by peers or others to be unethical. Sources of influence include: ❑ Management Policies ❑ Gifts, Gratuities, and Entertainment ❑ Product Samples ❑ Business Meals ❑ Personal Relationships ❑ Political Considerations ❑ Advertising ❑ Specifications and Standards The following are recommended guidelines when dealing with issues of influence: Gifts, Gratuities, and Entertainment Gifts, gratuities, and entertainment include material goods, services, or activities offered with the intent of, or providing the potential for, influencing a buying decision. As such, these may be offered to a supply professional or to other persons involved in the procurement process (or members of their immediate families). They may be offered in various forms. Purchasing Policy July 2010 Appendix A Page 4 `J ❑ Extreme caution must be used in evaluating the acceptance of gifts, gratuities, or entertainment, even if of nominal value, and the frequency of such actions (the collective impact) to ensure that one is abiding by the letter and the spirit of these guidelines. ❑ Soliciting gifts, gratuities, or entertainment in any form for yourself, other staff or the City is unacceptable. ❑ Avoid accepting monies, credits, and prejudicial discounts. ❑ Comply with the nominal value established by the City Manager memo to address supplier offerings of nominal value as a gesture of goodwill, or for public relations purposes. ❑ Refuse gifts exceeding nominal value, and return them with a polite explanation, or if perishable, either return the gifts or donate them to a local charity in the name of the supplier. ❑ Seek direction of management if concerned that a business relationship may be impaired by refusal of a gift, gratuity,.or entertainment. Business Meals Occasionally, during the course of business, it may be appropriate to conduct business during meals. ❑ Such meals shall be for a specific business purpose. ❑ Frequent meals with the same supplier should be avoided. ❑ Purchasing Staff must pay for their share of the meal expenses. Personal Relationships Personal relationships are an inherent aspect of supply management. Purchasing staff interact extensively with suppliers' representatives. Individuals in many other functional areas in both the buying and supplying organizations also interact extensively with each other. The development of personal relationships from such interactions is both expected and desirable as it leads to relationships based on understanding and trust. It must also be recognized that the purchasing decision must not be influenced by anything other than what is in the best interest of the organization, and that personal relationships that develop beyond what is necessary to ensure understanding and trust may be inappropriate. It is important, therefore, for staff to closely monitor the nature of relationships with suppliers' representatives to ensure that personal friendships do not develop that would result in decisions not in the organization's best interest. Political Considerations All organizations are subject to internal and external forces and pressures. Internal forces and pressures result from an organization's culture. External forces and pressures consist of economic conditions, laws, regulations, public opinion, special interest groups, and political entities. The negative influence of internal and external forces and pressures on supply management can be minimized when the organization adopts practices based on ethical principles and standards. Advertising Care should be exercised when accepting promotional items or participating in activities which tend to promote one supplier over another, or could be perceived as favoritism for a supplier by staff. Purchasing Staff will be sensitive to the appearance of numerous promotional items when meeting with representatives of other suppliers. Purchasing Policy July 2010 Appendix A Page 5 �� Specifications and Standards Purchasing Staff must ensure that specifications and standards are objectively written in a manner that encourages competition when appropriate, excludes unnecessary restrictive requirements, and appropriately defines quality. 4. CONFIDENTIAL AND PROPRIETARY INFORMATION Handle confidential or proprietary information with due care and proper consideration of ethical and legal ramifications and governmental regulations. Companies must appropriately mark as confidential only that information meeting the criteria. Proprietary and confidential information requires protection to the extent permitted by the state's Public Records Act. Such information may or may not be upheld by patent, copyright, or non -disclosure agreement. Proprietary and confidential information should be released to other staff only as necessary in the performance of their duties. It is the responsibility of the individual sharing confidential or proprietary information to ensure that the recipient understands his or her obligation to protect such information. Examples of information which may be considered confidential or proprietary include: ❑ Pricing ❑ Bid or quotation information ❑ Cost sheets ❑ Formulas and/or process information ❑ Design information ❑ Organizational plans, goals, and strategies ❑ Profit information ❑ Asset information ❑ Wage and salary scales D Personal information about employees, officers, and directors ❑ Supply sources or supplier information ❑ Computer software programs Requests for confidential information will be referred to the City Clerk as a Public Records request. Such requests for confidential information will normally be reviewed by the City Attorney. 5. SUPPLIER RELATIONSHIPS Fairness and impartiality should be extended to all legitimate business concerns. While it may be desirable to build long-term relationships with selected suppliers, such relationships should not eliminate opportunities for new suppliers or deter the potential of establishing similar working relationships with other suppliers. 6. RECIPROCITY Avoid improper reciprocal agreements. If Purchasing Staff influences a supplier to be a customer, the professional or the organization is engaging in a practice known as reciprocity. These purchasing actions are Purchasing Policy July 2010 Appendix A Page 6 5 r illegal if they tend to restrict competition or trade or if they are coerced, since such acts may be construed as "restraint of trade" in violation of Sections 1 and 2 of the Sherman Act. Purchasing Staff must be able to recognize reciprocity and its ethical and legal. implications. Reciprocity is both a legal and an ethical issue that may result in legal sanctions against the City, its management, and/or its procurement staff. The following are recommended guidelines in dealing with reciprocity: ❑ Procurement strategy must include a positive effort to oppose any corporate or organizational commitment to, or pursuit of, any form of improper reciprocity. ❑ Purchasing staff should become sufficiently knowledgeable of the provisions in antitrust laws to recognize a potential legal problem and to know when to seek legal counsel. ❑ If a supply management professional believes the potential for improper reciprocity exists, or is being encouraged by marketing or management to engage in reciprocity, legal counsel should be sought. INFRACTIONS Failure to comply with the standards of conduct may result in administrative action in accordance with the City's Human Resource.policies and procedures. Purchasing Policy July 2010 Appendix A Page 7 / APPENDIX B SUMMARY OF RESOLUTIONS AFFECTING PROCUREMENT Council RESOLUTION 93-09, RECYCLED PRODUCT PROCUREMENT A. BACKGROUND As businesses and communities grow, the ability of landfills to absorb the refuse is diminished and the hazard to the environment increases. The use of recycled items removes material from the refuse chain, extending the life of landfills. 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. Appendix C further clarifies some of the terms used below. B. PROCEDURES 1. Comply with City Council Resolution 93-09. 2. Recycled products are purchased in preference, highest percentage of post -consumer recovered material followed by highest percentage of pre -consumer recovered material. 3. A 10% price preference may be given to recycled, reusable or products designated to be recycled when offered as alternatives to non -recyclable products. The preference shall be based on the lowest bid or price quoted_ by the supplier offering recycled products. 4. Equipment acquired by the City shall, whenever practical, be compatible with the use of recycled content products. 5. Product specifications and performance standards shall not require virgin material nor exclude recycled -content products indiscriminately. 6. To the extent possible, City staff shall identify to purchasing, on the purchase requisition, products available with recycled content and vendors from whom such products are available. 7. The Purchasing Agent may specify a minimum "recycled - content" standard in bid solicitations. 8. City purchased and printed paper shall be labeled with "Printed on recycled paper. 9. City requested documents, produced by contractors and grantees shall be printed on post -consumer recycled paper. Purchasing Policy July 2010 Appendix B Page 1 5-8 II. Council RESOLUTION 91-91, PROTECTION OF TROPICAL TIMBER A. BACKGROUND The importation and use of tropical timber promotes the loss of tropical rainforests. This loss has been shown to not only destroy species and cultures indigenous to the rain forest, but to also hasten the deterioration of the global environment. As a responsible member of the global community, the City is fundamentally opposed to actions harmful to tropical rain forests. To set the community standard, the City has prohibited the purchase of any item or product which has originated in part or in whole from any tropical hardwood. See Appendix D for additional information. B. PROCEDURES 1. Comply with City Council Resolution 91-91. 2. Require wood vendors to note on each invoice for wood products the identity of the manufacturer of the products, and that the material supplied is not tropical wood. 3. Public Projects contractors shall certify that no tropical hardwoods are being used by prime or subcontractors in the awarded project. III. Council RESOLUTION 89-95, STATE OF CALIFORNIA CO-OPERATIVE PURCHASING A. BACKGROUND Frequently, during the course of business, the City requires material in small quantities. Purchases of many items in small quantities forgoes the discounts vendors offer for large volume purchases. To assist local communities who might normally be unable to take advantage of cost savings through volume purchases the State of California has made many of it's material contracts available for local governments to place orders against. This provides the local government the opportunity to take advantage of volume discounts, where. appropriate, without the administrative or financial investment of large purchases. B. PROCEDURES All use of State of California co-operative purchasing contracts will be coordinated through the Finance Division following the procedures outlined in the State of California Co-operative Purchasing Catalog. Purchasing Policy July 2010 Appendix B Page 2 IV. Agenda Report dated July 11, 1995; USE OF COMPETITIVE AND CO-OPERATIVE AGREEMENTS A. BACKGROUND In an effort to make government purchasing more efficient and economical new trends in purchasing are being adopted. Co-operative purchasing agreements allow.multiple organizations to combine their requirements into a single purchase agreement. This action reduces the administrative workload by reducing the number of purchase actions and generally results in lower costs through volume buying. Some purchase contracts are written to permit "piggybacking". This is a situation where a third party, not a part of the original contract, is permitted to place orders against a purchase agreement. Piggybacking frequently results in savings similar to co-operative purchasing. . B. PROCEDURES The use of co-operative and piggybacking opportunities are authorized when determined to be in the best interests of the City. V. Ordinance 04-12 and 09-6; SUPPORT OF SANTA CLARITA BUSINESSES A. BACKGROUND General Fund revenues make up a large portion of the City's operating funds and sales tax revenue makes up a large part of the General Fund. Over the last two years, the city has embarked on number of studies and projects intended to capture as much of the tax revenue as possible. The latest effort in this process is the "Shop Santa Clarita" campaign. As part of this campaign the City Council adopted an ordinance in support of Santa Clarita businesses. The change to the purchasing process requires local businesses be given a second chance to receive bid or quote awards if they meet certain criteria. Ordinance 09-6 revised the percentage to 10%. B. PROCEDURES This program requires quotes and bids for other than public projects be awarded in accordance with this program, unless otherwise directed by the City Manager, or if the award will be based on multiple criteria. Should businesses located within the city limits of Santa Clarita, submit bids within 10% of the lowest bid, they must be given the opportunity to match the lowest bid. This process begins with the lowest bid from a Santa Clarita business and proceeds until there are no more local bidders within the 10%, or a local business agrees to match the low Purchasing Policy July 2010 Appendix B Page 3 " bid, whichever occurs first. The Code also requires staff to include the award requirement in the solicitation. VI. Council RESOLUTION 05-103, ENVIRONMENTALLY PREFERABLE PURCHASING (EPP) PROGRAM A. BACKGROUND As businesses and communities grow, the ability of landfills to absorb the refuse is diminished and the hazard to the environment increases. The use of recycled items removes material from the refuse chain, extending the life of landfills. 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. Appendix H further clarifies some of the terms used below. B. PROCEDURES Comply with City Council Resolution 05-103. 2. Recycled products are purchased in preference, highest percentage of post -consumer recovered material followed by highest percentage of pre -consumer recovered material. �i Purchasing Policy July 2010 Appendix B Page 4 APPENDIX C 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 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 ensure available materials, it is necessaryto 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, �a Purchasing Policy July 2010 Appendix C Pagel 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 Agency 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 Purchasing Policy July 2010 Appendix C Page 2 ('0 15 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. Although not mandatory, following the guidelines will reduce waste in the manufacture and use of products and packaging purchased by the City. The EPA's procurement guidelines provide useful 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. Specifications 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. Purchasing Policy July 2010 Appendix C Page 3 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 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. o ^i Purchasing Policy July 2010 Appendix C Page 4 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. IV. Recyclability and Waste Reduction In addition to the recovered material content of a product, important criteria in selecting products shall also be: 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 indiscriminately 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. Purchasing Policy July 2010 Appendix C. Page 5 `-a VI1. Contractors and Grantees All City contractors and grantees shall be required to conform to the minimum recycled -content procurement standards set forth by the Finance 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, letterhead 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 The Finance division 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. /r _ Purchasing Policy, July 2010 Appendix C Page 6 lJ� 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. Purchasing Policy July 2010 Appendix C Page 7 6 e H 4D M; �P � �ALSSEtyppitlj6 OWN jW', --------------- 'AYES Bi* t4� 41. NOES-` WOOL COO��� _M A ................... . ......... .......... Purchasing Policy July 2010 Appendix C Page 8 (0 q APPENDIX D RESOLUTION NO. 91-91 A RESOLUTION OF THE CITY Council OF THE CITY OF SANTA CLARITA, CALIFORNIA, FOR THE 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 tens of millions of species; and WHEREAS, it is in the interest of those who live, 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 on 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 business and provide jobs in the United'States, as many alternatives to tropical hardwoods are grown domestically. 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: A. The City of Santa Clarita shall not purchase any item or product which has originated in part or in whole from any tropical hardwood species listed in this section, nor shall any City sponsored event utilize such products, nor shall City Public Works contractors utilize such products. Purchasing Policy July 2010 Appendix D Page 1 -70 D. Tropical hardwood species include, but are not limited to the following: Scientific Name Common Name Vouacapoua Americana Acapu Pericopsis Elata Afrormosia Shores Almon Almon Peltogyne Spp. Amaranth Guibourtia Ehie Amazaque Aningeria Spp. Aningeria Dipterocarpus Grandiflorus Apitong Ochrama Lagopus Balsa Virola Spp. Banak Anisoptera Thurifera Bella Rosa Guibourtia Arnoldiana Benge Detarium Senegalese Boire Guibourtia Demeusil Bubinga Prioria Copaifera Cativo Antiaris Africana Cancan Dalbergia Retusa Concobolo Cordia Spp. Cordia Diospyros Spp. Ebony Aucoumea Klaineanal Gaboon Chlorophora Excelsa Iroko Acacia Koa Koa Pterygota Macrocarda Koto Shorea Negrosensis Red Luan Pentacme Controta White Luan Shorea Polysperma Tanguile Terminalia Superba Limba Aniba Duckei Louro Khaya Ivorensis African Mahogany Swietenia Macrophylla American Mahogany Tieghemella Heckelii Makore Distemonanthus Benthamianus Movingui Pterocarpus Soyauxii African Paduak Pterocarpus Angolensis Angola Paduak Aspidosperma Spp. Peroba Peltogyne Spp. Purpleheart Gonystylus Spp. Rasmin Dalbergia Spp. Rosewood Entandrophragma Cylindricum Sapele Shorea Philippinensis Sonora Tectona Grandis Teak Lovoa Trichiliodes Tigerwood Milletia Laurentii Wenge Microberlinia Brazzavillensis Zebrawood C. Exemptions: The City 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 Clarita the identity of the manufacturer of Purchasing Policy July 2010 Appendix D Page 2 Ire p;od;�d##, and that Gee n$Ser±aL suppl;od Is ngt tre seal wood an �Smh Public X4 d gdGe.al w;#Sl�tO! tha11 {9C[ LEY OWL no trhp4rmX bardvoodg d_a being wee bT KIM Dr subzMtcactarp Ja t'aa avar+��d proj��a. 40729 2. i C oa CI0 rk d:{ Ct4#7 to the adapt i= of th2a �tg lat: n and CRrt-fy t3Se rata rd to be #u12 aceioa takt. , Mg. t8r 4t cad 8E the FASSEb &RD UPKW;EE �3'GR v e M t eMIT =TIF7 Cbet tha &VC39108 R+VvlUt- on 4a1 dullr gdopt"thAr' by tha # Bova�il 4€ tha �Git� a# Banta Ciarfta at, a M$U'�ar Mbatin� therea#. add an $ C} tC+b�" u-91, by Lhm fbIjq 1� VOL4 4f eine �as�n�i2 e .IYXDi flD T(Z7f8IB3f �` �►'�+J, �1.dt' 1�ia, ji{r' lSrSpap, �,� EONS t CCt►=LhftIm e ABS=Tt CI?l7(A1CLt1'Gt'l ms, 4 TY4Me Apr—Dd'xc C, 4 Purchasing Policy July 2010 Appendix D Page 3 AFPEAfDJXD RZSMtTIC'f 194. d9-93 • 8 ^r'rJhX�j�i4li1 V� iii`I�iiii �r Vti+llYir Y.� R.7.� CLTw aF S�TTA �Tt, GA>tYFO�tit, A�G)�LBING THE Sxti� 0� �1LLc�kif11�, Ft&T OF �r SAL $$Qyja�$ - TO MQUASk X6TEX Lt, Slir:'PL7XS A3, rW'12'.�T NQS 21f]S CITY OF S&TA (!LI.R1TA MIMAS, the teparement of Oaaasal of tie 'State 0;r calff" is $JP auLharlsed to aj.k■ pwcc>3*i4■ �f ma`.er,s>aF efa;aent' Or S'UPP " dor xocal such is the City of ffant& Clarit.al aad l is{ the Ctrl of iaar# Clirith V*U:Ld .reasi 0CMMA4C tengf3t$ by mutharizsng the Stat* *f C911fora3.a. to malk* -Oatb pureiaaae. NOW. TBMWOU, T1i CIgY CDU(;ZI. OF TFS C!m 40F ;3"7.A C.T_,UMAt GALD0MII. DOJM M$8Y nSCT.T3 A3 VWL0!WSs ACTION L. That 'thv • Offi cce of Fr�pGtua t. pax at f tral 'GarV;LC9a of the $ tst■ Of CKUfornia, Jts hor ft auth0titod to parcha 9 certain 3mCgrjAlt, ovppliem and om'�snt fj�* and M behalf of tho Cath *f S"ti C131:1tj UP= tba %vqaaat of the MY l=i903. vhO .19 11%e1:aby AULh4rIx0il grad diramod to 0ip aad delivgr Oil aeee5larY rt"Sts and otb#r do=eats in c—n I:t3oa ttw�z"With for dAd on beh&U of th* C.t7 Of IAUtL Clmriti. r 2- I &t the Citi clatk sail certfJ7 to the "OPLifn 4f this reftOlIq icm. . PAS p APP1 6VO 21M ADOMD tbdA �v Y ATI'Mt KCIV Purchasing Policy July 2010 Appendix E Page 1 �3 I OREV CRF.TIPY th4Lt the fore going F00,UIut ten VA:3 -duOflSantae Clarit tad 6 the itY C+Dtu�,3 1. n� tha City. oa the _ 35th dl� O f --- �t re$u?ar meek*& h�!:oaf, hel'i follavit�� vote of tke Couuc3l ��� t�'9 the : Covt�C s asCcy, -Kcantz. Mc on, hgi None AZSZHT k UHG ,?i�MlgE'.s;.S oye [ y TY CLE�f Purchasing Policy July 2010 Appendix E Page 2 'A MNID14ET f > t - `a>�laJ `m iTsi r s i f cam.{., .1 I►{[t�tuerl �tr�I;Jr__ti 1�m�Y.,,r•fi. ; .r_h,,...d._ ..� f u UUnk,iimne,*V �r3ln''uY �E'g;mt�n�y ;�a3'it. stR yrs s �ly�.e�s U e�f -ag ttY ; `V 9?YW c��'„pai li; -tis �s`cr. narc n `ret v ' LL �t�'rrnr �e t���jfz�-�.g�ce�t�v� �17�e�►a.:�� ��r,��iE� �� pens ffi�n °� ° }:�'. ��e�saiL�s oto ,�3, anctliAx �fnr�'.r�� c�tr:ii q 1� JJ5� Purchasing Policy July 2010 Appendix F Page 1 -7S TW17rcel ORDINANCE NO. 04-12 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA AMENDING CHAPTER 12 OF TITLE 3 OF THE MUNICIPAL CODE RELATING TO PURCHASING CODES Whereas, the City of Santa Clarita endeavors to purchase the highest quality supplies and goods, at the most reasonable and economical cost; and, Whereas, the City of Santa Clarita desires to promote business within the City and to encourage businesses to locate and remain within the City; and, Whereas, the City Council of the City of Santa Clarita, after review and upon study and recommendation of staff, finds and determines that modifications are necessary in the purchasing system to be reflected in an amended Chapter 3.12 of the Santa Clarita Municipal Code to provide the City of Santa Clarita with a method of purchasing the highest quality supplies and goods, at the most reasonable and economical cost, while simultaneously promoting business within the City and encouraging businesses to locate and remain within the City. NOW, THEREFORE, the City Council of the City of Santa Clarita, California does hereby ordain as follows; Section 1. That the Municipal Code is hereby amended at Section 3.12.120, relating to formal bid procedures, to read as follows: 3.12.120 Formal (sealed) Bid Procedures. Except as otherwise provided herein, purchases of supplies, equipment and services (other than professional) of an estimated value greater than twenty thousand dollars ($20,000) shall be awarded to the lowest responsible bidder, or the highest scoring bidder of the multiple criteria award process, pursuant to the formal bid procedures described in Sections 3.12.200 and 3.12.205 hereinafter prescribed. Formal bids as used in this context includes any solicitation following the procedures prescribed below including, but not limited to, invitations to bid and requests for proposal. Section 2. That the Municipal Code is hereby amended at Section 3.12.200, relating to award of formal bids, to read as follows: 3.12.200 Award of Formal Bid Contracts. Except as otherwise provided herein, formal bid contracts exceeding fifty thousand dollars ($50,000) shall be awarded by the City Council to the lowest responsible bidder or the highest scoring bidder of the multiple criteria award process subject to the application of Section 3.12.205. Formal bid contracts of fifty thousand ($50,000) or less may be awarded by the Purchasing Officer (or designee) subject to the application of Section 3.12.205. 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 contracts over fifty thousand dollars ($50,000.00). Section 3. That the Municipal Code is hereby amended to introduce Section 3.12.205, relating to support of local businesses, to read as follows: 3.12.205 Support of Santa Clarita Businesses. A. Should the bidder that submits the lowest responsive bid or quote and would otherwise normally qualify to receive the bid pursuant to Sections 3.12.120, 3.12.200 and 3.12.230 of the City of Santa Clarita Municipal Code not be a Santa Clarita business as defined herein, the lowest bid or quote submitted by a Santa Clarita business that is within five percent (5%) of the lowest bid or quote, whether or not that bidder is the second lowest bidder, may be deemed to be the lowest Purchasing Policy July 2010 Appendix G Page 2 7 bidder if the bidder agrees to reduce its bid to match the bid or quote of the lowest bidder in writing within one business day, and providing that the Purchasing Officer, or designee, determines that said Santa Clarita bidder is a responsible bidder submitting a bid or quote that is responsive to the City's specifications, terms and conditions and the application of this Section is appropriate. B. If the lowest Santa Clarita bidder within five percent (5%) of the lowest bid or quote does not elect to reduce its bid or quote to match the bid or quote of the lowest bidder, then the next lowest Santa Clarita bidder shall be given the opportunity to match the bid or quote of the lowest bidder as set forth above, providing that this bidder is also within 5% of the lowest bid or quote that has been deemed responsive. C. To qualify as a Santa Clarita bidder, the bidder must have a physical presence within the Santa Clarita city limits by maintaining a permanent office, factory or other facility carried on the business' records with at least one employee of the company operating out of said facility. The Purchasing Officer, or designee, is hereby granted the authority to finally determine if the bidder qualifies as a Santa Clarita bidder as set forth herein. The Purchasing Officer, or designee, may take into account the permanency of the business in Santa Clarita, and whether the business appears to be claiming to be a Santa Clarita business solely or primarily to qualify for the contract award, and any other material factors. D. This support of local business policy shall only apply to supplies, material and equipment required for' the conduct of City business, except where prohibited by State or Federal law, and it shall only apply to purchases and contracts greater than two thousand dollars ($2,000). E. No contract awarded to a Santa Clarita business under this Section shall be assigned or subcontracted in any manner that permits more than fifty percent (50%) or more of the dollar value of the contract to be performed by an entity that is not a Santa Clarita business as defined herein. F. Solicitations for bids or quotes must include notice of this Section. Section 4. That the Municipal Code is hereby amended at Section 3.12.210, relating to tie formal bids, to read as follows: 3.12.210 Tie Formal Bids. If two (2) or more formal bids received are for the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay of readvertising for bids, the City Council, or Purchasing Officer (or designee) for bids of $50,000 or less, may in its discretion accept the one it chooses or accept the lowest bid made by and after negotiation with the tie bidders at the time of the bid opening or award of contract. Section 5. That the Municipal Code is hereby amended at Section 3.12.230, relating to the open market or informal bid procedure, to read as follows: 3.12.230 Open Market or In Bid Procedure. Purchases of supplies, equipment and services (other than professional) of an estimated value in the amount of twenty thousand dollars ($20,000) 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 two thousand dollars ($2,000). Quotes as used in this context include any solicitation following the procedures described below including, but not limited to, requests for quote to bid and requests for proposal (of twenty thousand dollars ($20,000) or less). Section 6. That the Municipal Code is hereby amended at Section 3.12.240, relating to the minimum number of quotes, to read as follows: 3.12.240 Minimum Number of Quotes. Open market purchases shall, wherever possible, be based on at least three (3) quotes, and shall be awarded to the quoter offering the most advantageous quote to the City after consideration of price, quality, durability, servicing, delivery time, standardization, and other factors subject to the application of Section 3.12.205. Section 7. That the Municipal Code is hereby amended at Section 3.12.260, relating to record of quotes, Purchasing Policy July 2010 Appendix G Page 3 -7-7 to read as follows: 3.12.260 Record of Quotes. The Purchasing Agent shall keep a written record of all purchases of two thousand dollars ($2,000) or more, whether accomplished by formal bid (Sections 3.12.120 through 3.12.215), quote (Sections 3.12.230 and 3.12.270), or through no bid at all (Sections 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. Section 8. That the Municipal Code is hereby amended at Section 3.12.270, relating to exceptions to competitive bidding requirement, to read as follows: 3.12.270 Exceptions to Competitive Bidding Requirement. T Notwithstanding any provision of this chapter to 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 two thousand dollars ($2,000); B. When the commodity can be obtained from only one vendor; C. The City Manager and/or his/her designee may authorize the purchase of materials, supplies, equipment and services where an emergency is deemed to exist and it is determined that service involving the public health, safety or welfare would be interrupted if the normal procedure were followed. All emergency purchases, which would otherwise require formal bidding procedures, made pursuant to this Section shall be submitted to the City Council for ratification at the next regular Council meeting after the purchase is authorized; D. Any request to waive competition for a procurement not covered by the exceptions herein must be approved by the City Council; E. Any agreement involving acquisition of supplies, equipment or service entered into with another governmental entity; F. In the event the City Council finds that it is in the public interest and necessity to purchase supplies, equipment or services without compliance with the formal contract procedures set forth in this section, the City Council may waive such procedures by declaring so in a motion or resolution. Section 9. This ordinance shall be in full force and effect thirty (30) days from its passage and adoption. Section 10. That the City Cierk shall certify to the passage of this Ordinance and shall cause it to be published as required by law. Purchasing Policy July 2010 Appendix G Page 4 p OLAiIIE-ILE tit:. CA -5 4 X-ASSED, AITRM-7f) AIND ADOPT.EjT;Ili., NI: Lla-v of Tkir,-, 2&M - I=M: IORK .S: FA TI -.C)F7 CALTORNIA COUNTY OF LOS -AF GELB� C117 01° SA NJ-.-, CU--J,,.RUA ti 1: Shmyn U DTxsm. . a -M, (-,L,- Cje:k :.f the I)C &-ffVDL C! k6b, du irjtb'.' MI.Ify :hat tic f:, ;; n.K 0-:Ur;frS4 No. 04--K 0. ;L4 jr -31.0'-ed I1DC11 iLN rcguioir rieL4i-iE rf the City Count it i in ctt �Y W kfz,�, 20CLI- kh=aftze, 83i4l. GLOVII-N:E WZ� Cb;�v I>ass:d fAd aLF-Lrj ;:. a vgulu rmaj:1K k1f Eb,- Cj(-.: Coulici I em the O't d --y n 'Clic,I - .Y f1c f011071iiag VOtO. 10 W -L: A=! COU'TM2%,II-MER& F-rm,.Njcj-cEu:,S.:ryLb,WC�C- Kclja. LACES: COLI UCILINIT—MBEM- Nine ABSENT: CGT.N0TAN=s! Ntim C!*f Y CLERK Purchasing Policy July 2010 Appendix G Page 5 ORDINANCE NO. 09-6 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA AMENDING CHAPTERS 12 AND 14 OF TITLE 3 OF THE MUNICIPAL CODE RELATING TO PURCHASING CODES This Ordinance is not reproduced here because of its length and the fact the pertinent change consisted solely of increasing the Shop Santa Clarita percentage from 5 to 10%. Purchasing Policy July 2010 Appendix G Page 6 Q APPENDIX H RESOLUTION NO. 05-103 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, FOR THE ADOPTION OF A PROGRAM REGARDING ENVIRONMENTALLY PREFERABLE PURCHASING WHEREAS, it is the policy of the City of Santa Clarita to use products and services that have reduced impacts on human health and the environment; and WHEREAS, the Environmentally Preferable Purchasing program will have a beneficial affect on the citizens of the City; and WHEREAS, the combined governments of the United States spending exceeds more than a trillion dollars worth of goods and services each year; and WHEREAS, the City's leadership role in helping protect the environment with a EPP program will serve as a'model for local businesses and private industry; and WHEREAS, the Environmentally Preferable Purchasing program will build onto the previously approved recycled product procurement resolution(93-09) to enhance working to conserve the nature resources entering the waste stream. NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby resolve as follows: SECTION 1. The City Council hereby adopt the following policy: SUSTAINABLE SANTA CLARITA ENVIRONMENTALLY PREFERABLE PURCHASING PROGRAM SECTION 1.0 - STATEMENT OF POLICY It is the policy of City of Santa Clarita to: ❑ purchase products that minimize environmental impacts, toxics, pollution, and hazards to worker and community safety to the greatest extent practicable, ❑ institute practices that reduce waste and minimize environmental impacts whenever practicable and cost-effective by increasing product efficiency and effectiveness, but without reducing safety or workplace quality while promoting the fair treatment of all races, cultures and incomes with respect to this policy, ❑ purchase products that include recycled content, are durable and long-lasting, conserve energy and water, use agricultural fibers and residues, reduce greenhouse gas emissions, use unbleached or chlorine free manufacturing processes, are lead-free and mercury -free, and use wood from sustainably harvested forests, Purchasing Policy July 2010 Appendix H Pagel q ❑ adopt Environmentally Preferable Purchasing (EPP) processes in support of the City's Sustainability Plan, and ❑ encourage vendors, contractors and grantees to implement this program for all products and services provided to City of Santa Clarita. SECTION 2.0 - PURPOSE This Program is adopted in order to: ! ❑ conserve natural resources, ❑ minimize environmental impacts such as pollution and use of water and energy, ❑ eliminate or reduce toxics that create hazards to workers and our community, a ❑ support strong recycling markets, ❑ reduce materials that are landfilled, ❑ identify environmentally preferable products and distribution systems, ❑ increase the use and availability of environmentally preferable products that protect the environment, ❑ reward manufacturers and vendors that reduce environmental impacts in their production and distribution systems, ❑ create a model for successfully purchasing environmentally preferable products that encourages other purchasers in our community to adopt similar goals. SECTION 3.0 - SPECIFICATIONS 3.1 Source Reduction 3. 1.1 City of Santa Clarita shall institute practices that reduce waste and result in the purchase of fewer products whenever practicable and cost-effective, but without reducing safety or workplace quality, including but not limited to: ❑ electronic communication instead of printed media, ❑ double -sided photocopying and printing, ❑ washable and reusable dishes and utensils, ❑ rechargeable batteries, ❑ streamlining and computerizing forms, Purchasing Policy July 2010 Appendix H Page 2 ❑ electronic and "online" publishing via CD, Internet and intranet, ❑ "on -demand" printing of documents and reports as they are needed and where electronic publishing would be unsatisfactory, ❑ leasing long -life products when service agreements support maintenance and repair rather than new purchases, such as carpets, ❑ sharing equipment and occasional use items such as chippers, ❑ choosing durable products rather than disposable, ❑ reducing product weight or thickness when effectiveness is not jeopardized in products such as, but not limited to, paper and plastic liner bags, ❑ buying in bulk, when storage and operations exist to support it and balanced with the costs of inventory management, ❑ reusing products such as, but not limited to, file folders, storage boxes, office supplies, and furnishings. 3.1.2 City of Santa Clarita shall purchase remanufactured products such as laser toner cartridges, tires, furniture, equipment and automotive parts and fluids whenever practicable, but without reducing safety, quality or effectiveness. . 3.1.3 City of Santa Clarita shall require all equipment bought after the adoption of this program to be compatible with source reduction goals and practices when practicable, including but not limited to: ❑ copiers and printers capable of duplexing, ❑ battery-operated equipment capable of being recharged or using rechargeable batteries, ❑ dishwashing equipment, when washable and reusable dishes and utensils are practicable, ❑ bulk storage and operation. 3.1.4 All buyers shall evaluate short-term and long-term costs in comparing product alternatives, when feasible. This includes consideration of total costs expected during the time a product is owned, including, but not limited to, acquisition, extended warranties, operation, supplies, maintenance, disposal costs and expected lifetime compared to other alternatives. Examples of products for which such cost comparisons can indicate significant differences between short - Purchasing Policy July 2010 Appendix H Page 3 F3 and long-term costs include, but are not limited to, janitorial towels and tissues, parking stops, park benches and tables, office equipment, software and vehicles. 3.1.5 Products that are durable, long lasting, reusable or refillable are preferred whenever feasible. . 3.2 Recycled Content Products 3.2.1 City staff shall strive to incorporate the requirements the U.S. EPA has established for various materials, such as those for construction, landscaping, parks and recreation, transportation, vehicles, miscellaneous, and non -paper office products. The programs are known as the Comprehensive Procurement Guidelines (CPG) and Recovered Materials Advisory Notice (RMAN). These programs are updated periodically to identify categories of material for which there are recycled content alternatives and the recommended recycled contents. 3.2.2Janitorial paper products shall contain the highest postconsumer content practicable, but no less than the minimum recycled. content standards established by the U.S. EPA Guidelines. 3.2.3 Printing paper, office paper, and paper products shall contain the highest postconsumer content practicable, but no less than the minimum recycled content standards established by the United States Environmental Protection Agency (U.S. EPA) Guidelines (see Definitions). 3.2.4 Copiers and printers bought shall be compatible with the use of recycled content products. When necessary, suppliers shall train equipment maintenance personnel in the appropriate use of recycled products with their equipment. 3.2.5 In accordance with California Public Contract Code, Sec. 10409, City of Santa Clarita shall purchase recycled lubricating and industrial oil for use in its vehicles and other equipment, as long as it is certified by the American Petroleum Institute (API) as appropriate for use in such equipment (see h.ttp://api- ep.api.org/quality/index.efin for information about API's Engine Oil Licensing and Certification System). 3.2.6 When specifying asphalt concrete, aggregate base or portland cement concrete for road construction projects, City of Santa Clarita shall use recycled, reusable or reground materials when practicable, including, but not limited to, in- place recycling of asphalt concrete, aggregate base and portland cement concrete; rubberized asphalt concrete; recycled aggregate base; recycled fly ash content concrete or recycled asphalt concrete. 3.2.7 City of Santa Clarita shall specify and purchase recycled -content transportation products, including signs, cones, parking stops, delineators, and barricades, including recycled products approved by the California Department of Transportation (Caltrans). 3.2.8 City of Santa Clarita shall specify and purchase carpet with 100% total recycled PVC backing, solution dyed nylon face fiber and permanent or durable anti -microbial treatment. In addition, the City should aim for producer responsibility for accepting old carpet for recycling to ensure future needs for carpet. replacement will include the recycling of old carpet. Purchasing Policy July 2010 Appendix H Page 4 3.3 Forest Conservation 3.3.1 To the greatest extent practicable, City of Santa Clarita shall not procure wood products such as lumber and paper that originate from forests harvested in an environmentally unsustainable manner. When possible, City of Santa Clarita shall give preference to wood products that are certified to be sustainably harvested by a comprehensive, performance-based certification system, such as the Forest Stewardship Council. Further guidance may be found in the City of Santa Clarita's Hardwood resolution. 3.4 Toxics and Pollution 3.4.1 When replacing vehicles, regular diesel shall be phased out and replaced with less polluting alternatives such as low sulfur or bio -diesel, gasoline, compressed natural gas, biobased fuels, hybrids, hydrogen fuel cells and electric batteries. 3.4.2. To the extent practicable, no cleaning or disinfecting products (i.e. for janitorial or automotive use) shall contain ingredients that are eye or skin irritants, neurotoxins, carcinogens, mutagens, or teratogens. These include chemicals listed by the U.S. EPA or the National Institute for Occupational Safety and Health on the Toxics Release Inventory and those listed under Proposition 65 by the California Office of Environmental Health Hazard Assessment. If products must be used that contain these toxic materials, ensure that only the minimum amounts are used and the product is disposed of properly (see Definitions). To the extent practicable, cleaning or disinfecting products should include biodegradability, be in concentrated form, be non -aerosol and have a recyclable container made of plastic numbers 1 or 2. 3.4.3 The use of chlorofluorocarbon -containing refrigerants, solvents and other products shall be phased out and new purchases shall not contain them. 3.4.4 All surfactants and detergents shall be readily biodegradable and, where practicable, shall not contain phosphates. 3.4.5 All interior paint shall contain the lowest concentrations practicable of volatile organic compounds (VOCs), but as a minimum shall not exceed 50 grams VOC per liter (50g/1) for flat paint and 150 grams per liter (I 50g/1) for non -flat paints, as. determined in accordance with U.S. EPA Test Method 24, CFR Title 40, Part 60, Appendix A. For exterior paints, preference shall be given to paints containing at least 50 percent recycled content (post-industrial and postconsumer) and/or VOC concentrations less than 150g/1 (U.S. EPA Test Method 24). All adhesives shall meet South Coast Air Quality Management District Rule 1168. 3.4.6 City of Santa Clarita shall reduce or eliminate its use of products that contribute to the formation of dioxins and furans. This includes, but is not limited to: ❑ Purchasing paper, paper products, and janitorial paper products that are unbleached or that are processed without chlorine or chlorine derivatives, whenever possible. Processed chlorine flee (PCF) paper is preferred. Elemental chlorine free (ECF) processes should include enhanced Purchasing Policy July 2010 Appendix H Page 5 U processes such as extended and oxygen delignification whenever possible. Vendors and successful bidders shall supply certification of the paper's chlorine free processing status from either a recognized certifying organization or the pulp and paper manufacturer. ❑ Prohibiting purchase of products that use polyvinyl chloride (PVC) such as, but not limited to, binders, flooring, and medical supplies whenever practicable. 3.4.7 City of Santa Clarita shall purchase products and equipment with no lead or mercury whenever possible, including automotive vehicles, equipment and lighting. For products that contain lead or mercury, City of Santa Clarita shall give preference to those products with lower quantities of these metals and to vendors with established lead and mercury recovery programs. 3.4.8 To facilitate the reprocessing of paper waste the City shall call for the use of soy/vegetable based inks for all printing. Graphics will continually monitor industry trends towards more environmentally friendly inks. 3.5 Energy and Water Savings 3.5.1 Where applicable, energy-efficient equipment shall be purchased with the most up-to-date energy efficiency functions. When necessary, suppliers or manufacturers shall train equipment operators and maintenance personnel in the proper enabling and use of energy efficient and sleep mode functions on their equipment. New and replacement equipment/fixtures will incorporate the requirements of this section. 3.5.2 When practicable, City of Santa Clarita shall replace inefficient lighting with energy efficient equipment. Incandescent, mercury vapor and T12 fluorescent lamps should be replaced with compact fluorescent lamps, high- intensity discharge (HID) fixtures and low -mercury T8 or T5 fluorescent lamps. The magnetic ballasts used in older fluorescent lighting should be replaced with electronic ballasts. New lighting should be designed to use no more than 85% of the power allowed by Title 24 Energy Code. Purchasers shall require vendors to recycle discarded lighting fixtures and lamps appropriately, with an emphasis on lowering mercury levels in energy efficient lighting. Staff will continue to investigate technologies that reduce the energy requirements of existing lighting such as sensors, timers and frequency regulators. 3.5.3 All appliances purchased by City of Santa Clarita and for which the U. S. EPA Energy Star certification is available shall meet Energy Star certification. Typically, this would include motors/pumps, exhaust fans, water heaters, computers, exit signs, water coolers and appliances such as refrigerators, dishwashers and microwave ovens. 3.5.4 When Energy Star labels are not available, choose energy efficient products that are in the upper 25% of energy efficiency as designated by the Federal Energy Management Program. Purchasing Policy July 2010 Appendix H Page 6 '" 3.5.5 Wherever City of Santa Clarita replaces roofs, Energy Star -qualifying roof materials shall be used. 3.5.6 City of Santa Clarita shall purchase high efficiency space heating systems that use natural gas rather than electricity, and have an annual fuel utilization efficiency (AFUE) of 0.86 or greater, whenever practicable 3.5.7 City of Santa Clarita shall purchase high efficiency space cooling equipment with an energy efficiency rating (EER) of 11.5 or greater, whenever practicable. 3.5.8 City of Santa Clarita shall purchase water -saving products whenever practicable. 3.6 Green Building - Construction and Renovations 3.6.1 Proposals for project design will include fundamental building systems commissioning services (preferably independent of the design team) for independent review of plans and designs, participation in design charettes, to ensure building systems function as designed, to review outstanding commissioning issues within one year of project completion, and provide building operations/maintenance staff training and a building systems manual. 3.6.2 All building and renovations undertaken by City of Santa Clarita shall follow Green Building practices for design, construction, and operation, as specified in the appropriate US Green Building Council Leadership in Energy and Environmental Designa (LEED) criteria. 3.6.3 All newly constructed City of Santa Clarita-sponsored buildings shall incorporate sufficient green building methods and techniques to qualify for the equivalent of a LEEDa Rating System Silver certification (see Definitions). 3.6.4 Renovation of City of Santa Clarita-sponsored buildings shall achieve as many pre -requisites and credits as feasible as described in the LEEDa Rating System for Existing Buildings Pilot Phase and any subsequent version adopted (see Definitions). 3.6.5 City of Santa Clarita shall work with residents, businesses, and other members of the community, including architects, builders and contractors, to encourage private development within the City to use green building methods and practices and to achieve standards set by LEEDa for commercial buildings and the in consultation with appropriate. City departments. 3.7 Waste Minimization 3.7.1 City of Santa Clarita requires vendors to eliminate packaging or use the minimum amount necessary for product protection, to the greatest extent practicable. 3.7.2 Packaging that is reusable, recyclable or compostable is preferred, when suitable uses and programs exist. 3.7.3 Vendors shall be encouraged to take back and reuse pallets and packaging materials. RON Purchasing Policy July 2010 Appendix H Page 7 3.7.4 Suppliers of electronic equipment, including but not limited to computers, monitors, printers, and copiers, shall be required to take back equipment for reuse or environmentally safe recycling when City of Santa Clarita discards or replaces such equipment, whenever possible. 3.8 Landscaping 3.8.1 Workers and contractors providing landscaping services for City of Santa Clarita shall employ sustainable landscape management practices whenever possible, including: ❑ The use of Integrated Pest Management (IPM), including minimal pesticide use is encouraged. ❑ Grasscycling (leaving the clippings on the lawn) or mulching mowers is required for at least 50% of all mowings. ❑ Pruning shall be done on an as needed basis. Thinning is the preferred method of pruning. Minimal heading or shearing is encouraged. ❑ Fertilizing should be done on an as needed basis, as indicated by a soil analysis. Slow release and/or organic fertilizers are preferred. ❑ Irrigation scheduling based on weather (evapo-transpiration rates) is required whenever possible. Drip irrigation is preferred whenever practical. ❑ Turf areas where drip irrigation is not appropriate should be limited to walking and play surfaces. All other landscaping (such as for views) should be accomplished with low-water plantings. ❑ Recycling of plant debris by composting and/or maintaining a minimum 2 - inch layer of mulch under all trees, shrubs and groundcovers and a minimum 3 -inch layer in all open areas is strongly encouraged. Allowing leaf drop to become part of the mulch layer in tree, shrub and groundcover areas is preferred. 3.8.2 Plants should be selected to minimize waste by choosing species that are appropriate to the microclimate, species that can grow to their natural size in the space allotted them and perennials rather than annuals for color. Native and drought -tolerant plants that require no•or minimal watering once established are preferred. 3.8.3 To the greatest extent practicable, City of Santa Clarita shall not procure mulch products that originate from forest products. When possible, City of Santa Clarita shall give preference to mulch products that are produced on-site or from regionally generated plant debris. 3.8.4 To the greatest extent practicable, City of Santa Clarita shall procure compost that is produced from feedstock that includes at least 50%, by volume, Purchasing Policy July 2010 Appendix H Page 8 O (� regionally generated plant debris and/or food waste and less than 0.5% by volume, physical contaminants. The compost shall be processed in accordance with California Code of Regulations, Title 14, Chapter 3, Article 7, Sections 17868.2-3 to promote pathogen reduction and weed seed kill and minimize heavy metal concentrations. 3.8.5 Hardscapes and landscape structures constructed of recycled content materials are encouraged. Concrete substitutes are encouraged for walkways, such as rosin emulsion paving. 3.9 Agricultural Bio -Based Products 3.9.1 Vehicle fuels made from non -wood, plant -based contents such as vegetable oils are encouraged whenever practicable. 3.9.2 Paper, paper products and construction products made from non -wood, plant -based contents such as agricultural crops and residues are encouraged whenever practicable. 3.9 Electronics 3.9.1 As technology advances have brought about an exponential increase in the manufacture of electronic items, the impact of obsolescence caused waste has been significant. Changing technology has brought the life expectancy of some items down to as little as two years. Additionally, current electronics manufacture is resource intensive and involves some toxic materials such as heavy metals. A maximum preference of 5% of price or 5% of the total points possible may be awarded for vendor products meeting any of the criteria specified in 3.9.2 through 3.9.4. 3.9.2 Electronic equipment procurement policies shall seek to preserve resources by reducing the purchase frequency and pursuing upgrade opportunities to the extent feasible. Items containing more than 20% recycled material by content may qualify for a preference. 3.9.3 Acquisitions for electronic equipment should include "take back" provisions. Vendors shall be required to accept replaced equipment for recycling and proper disposal. Where possible, acquisitions shall require vendor to accept equipment back for recycling and proper disposal when it has reached the end of its useful life or is no longer working. 3.9.4 Specifications.for electronic equipment shall give preference to equipment manufactured with less toxic components or processes. 3.9.5 Upon installation, electronic equipment will have all energy management features activated as the default setting. SECTION 4.0 - DEFINITIONS 4.1 "Agricultural Bio -Based Products" means commercial or industrial products (other than food or feed) that utilize agricultural crops or residues but does not include products made from forestry materials. Purchasing Policy July 2010 Appendix H Page 9 S9 4.2 "Buyer" means anyone authorized to purchase on behalf of this jurisdiction or its subdivisions. 4.3 "Chlorine free" means products processed without chlorine or chlorine derivatives. 4.4 "Contractor" means any person, group of persons, business, consultant, designing architect, association, partnership, corporation, supplier, vendor or other entity that has a contract with City of Santa Clarita or serves in a subcontracting capacity with an entity having a contract with City of Santa Clarita for the provision of goods or services. 4.5 "Dioxins and furans" are a group of chemical compounds that are classified as persistent, bioaccumulative, and toxic by the Environmental Protection Agency. 4.6 "Elemental Chlorine Free" (ECF) bleaching processes replace elemental chlorine gas with a chlorine derivative as the bleaching agent. There is a wide range of different bleaching sequences covered under this term. While all ECF processes significantly reduce the amount of dioxins created in the bleaching . process, those that include enhanced processes such as extended and oxygen delignification achieve the greatest reduction. 4.7 "Energy Star" means the U.S. EPA's energy efficiency product labeling program described at http://www.ener�ystar.gov. 4.8 "Energy Efficient Product" means a product that is in the upper 25% of energy efficiency for all similar products, or that is at least 10% more efficient than the minimum level that meets Federal standards. 4.9 The "Forest Stewardship Council" is a global organization that certifies responsible, on-the-ground forest management according to rigorous standards developed by a broad variety of stakeholder groups (http://fscus.ort4ihtml/). 4.10 "LEEDa Rating System" means the self-assessing system, Leadership in Energy and Environmental Design, developed by the U.S. Green Building Council designed for rating new and existing commercial, institutional, and high- rise residential buildings. Credits are earned for satisfying defined criteria and standards. Different levels of green building certification are awarded based on the total credits earned. The LEEDa Green Building Rating System is described at http://www.usgbc.or g. 4.11 "Postconsumer Material" means a finished material which would normally be disposed of as a solid waste, having reached its intended end-use'and completed its life cycle as a consumer item, and does not include manufacturing or converting wastes. 4.12 "Practical" and "Practicable" mean whenever possible and compatible with state and federal-law, without reducing safety, quality, or effectiveness. 4.13 "Preconsumer Material" means material or by-products generated after manufacture of a product is completed but before the product reaches the end-use consumer. Preconsumer material does not include mill and manufacturing trim, Purchasing Policy July 2010 Appendix H Page 10 q () scrap, or broke which is generated at a manufacturing site and commonly reused on-site in the same or another manufacturing process. 4.14 "Processed Chlorine Free (PCF)" refers to a recycled product in which the recycled content is produced using no chlorine or chlorine derivatives. Any virgin content in the product must also be produced in a chlorine free system. 4.15 "Proposition 65" means a list of chemicals that are known to the State of California to cause cancer, birth defects or other reproductive harm. The list is maintained by the California Office of Environmental Health Hazard Assessment (http://-vv,A,w.oeli-lia.ca.gov/prop65..Iittiil). 4.16 "Recovered Material" means fragments of products or finished products of a manufacturing process, which has converted a resource into a commodity of real economic value, and includes preconsumer and postconsumer material but does not include excess resources of the manufacturing process. 4.17 "Recycled Content" means the percentage of recovered material, including preconsumer and postconsumer materials, in a product. 4.18 "Recycled Content Standard" means the minimum level of recovered material and/or postconsumer material necessary for products to qualify as "recycled products." 4.19 "Recycled Product" means a product that meets City of Santa Clarita's recycled content policy objectives for postconsumer and recovered material. 4.20 "Remanufactured Product" means any product diverted from the supply of discarded materials by refurbishing and marketing said product without substantial change to its original form. 4.21 "Reused Product" means any product designed to be used many times for the same or other purposes without additional processing except for specific requirements such as cleaning, painting or minor repairs. 4.22 "Source Reduction" refers to products that result in a net reduction in the generation of waste compared to their previous or alternate version and includes durable, reusable and remanufactured products; products with no, or reduced, toxic constituents; and products marketed with no, or reduced, packaging. 4.23 "Title. 24" means the State of California's energy efficiency standards for residential and nonresidential buildings (Title 24, Part 6) maintained by the California Energy Commission and described at http://www.energy ca.gov/title24. 4.24 The "Toxics Release Inventory" (TRI) is a publicly available U. S. EPA database that contains information on toxic chemical releases and other waste management activities reported annually by certain covered industry groups as well as federal facilities. It includes chemicals that are classified as carcinogens under the requirements of the Occupation Safety and Health Administration (OSHA) Lists can be obtained from http://www.epa.gov/tri/chemical/index.htm. 4.25 "U.S. EPA Guidelines" means the Comprehensive Procurement Guidelines established by the U.S. Environmental Protection Agency for federal agency Purchasing Policy July 2010 Appendix H Page 11 " / purchases as of May 2002 and described at http:l/www.epa.gov/epaoswer/non- hw/procure/products.htm, or as updated. 4.26 "Water -Saving Products" are those that are in the upper 25% of water conservation for all similar products, or at least 10% more water -conserving than the minimum level that meets the Federal standards. SECTION 5.0 - PRIORITIES 5.1 The health and safety of workers and citizens is of utmost importance and takes precedence over all other policies. 5.2 The City of Santa Clarita considers sustainability to be the foundation of lasting quality of life improvement programs. Environmentally Preferred Purchasing is a key step in leading the business community and residents towards that goal. 5.2 City of Santa Clarita has made significant investments in developing a successful recycling system and recognizes that recycled content products are essential to the continuing viability of that recycling system and for the foundation of an environmentally sound production system. Therefore, to the greatest extent practicable, recycled content shall be included in products that also meet other specifications, such as chlorine free or bio -based. 5.3 Nothing contained in this program shall be construed as requiring a department or contractor to procure products that do not perform adequately for their intended use, exclude adequate competition, or are not available at a reasonable price in a reasonable period of time. 5.4 Nothing contained in this program shall be construed as requiring the City of Santa Clarita, department or contractor to take any action that conflicts with state or federal requirements. SECTION 6.0 - IMPLEMENTATION 6.1 Environmental Services shall help departments implement this program through development of an advisory committee consisting of members representing Environmental Services, Purchasing, Information Technology, and each department. The team's responsibilities shall include, but are not limited to: ❑ evaluating opportunities for substituting environmentally preferable products, ❑ designing and implementing programs and processes for increasing the purchase of environmentally preferable products, ❑ educating managers and staff about City of Santa Clarita's Environmentally Preferable Purchasing Program, ❑ ensuring that purchasing documents, specifications, and contracting procedures do not contradict each other and do not deter or inhibit the qa Purchasing Policy July 2010 Appendix H Page 12 purchase of environmentally preferable products, ❑ providing information to facilitate the evaluation and purchase of environmentally preferable products, including identifying appropriate products and sources and providing technical assistance, ❑ evaluating obstacles to purchasing such products in order to create solutions, and. ❑ tracking and recording progress in achieving successful results. 6.2 In compliance with State law, vendors shall be required to specify the . minimum or actual percentage of recovered and postconsumer material in their products, even when such percentages are zero. 6.3 Vendors and successful bidders shall verify and report any environmentally preferable purchasing attributes in writing. This requirement for certification applies to products for which the vendor or successful bidder claims such attributes as apply to the product, including, but not limited to, recycled content, chlorine free, non-toxic, reduced toxicity, sustainable forestry, and energy-saving features. 6.4 Buyers making the selection shall provide a written explanation for not selecting product choices that meet the environmentally preferable purchasing criteria in this policy. Such written explanations shall be filed with the Purchasing Agent within 15 days of making the product choice (see Attachment for sample procurement determination form). 6.5 All contracts and grants providing services or products to the City of Santa Clarita shall adhere to the guidelines stated in this program to the extent possible. SECTION 7.0 - PROGRAM EVALUATION AND MEASUREMENT 7.1 Environmental Services shall institute a system for tracking the purchases of environmentally preferable products. Whenever practicable, vendors will be required to provide reports on their sales of environmentally preferable products to assist City of Santa Clarita in this tracking. 7.2 Each Department will report EPP procurements to the Environmental Services Manager each quarter. The reports will identify the type of commodity purchased, the dollar value and the qualifying attributes of the commodity. 7.3 The Environmental Services Manager shall provide a narrative report annually to the City Council on the success of this policy's implementation. To the extent practicable, such report shall include information on the annual volume and dollar amount of environmentally preferable products purchased compared to the total amount of products purchased, within general product categories. When possible, reports shall include a narrative evaluation of the performance, safety, and environmental benefits achieved through use of the environmentally preferable Purchasing Policy July 2010 Appendix H Page 13 175 products purchased. Reports should relate progress in meeting the objectives of this Policy as stated in Sections 1.0 and 2.0 and in accordance to the Specifications categories used in this Policy. This report will become one element of the City's Sustainability Program to be shared with the community. The report will also be included in quality of life evaluations. 7.4 Reports shall include notation of any barriers encountered in procurdment of environmentally preferable products, recommendations for resolution, and/or description of assistance needed for overcoming the obstacles. SECTION 8.0 - EFFECTIVE DATES 8.1 This policy shall take effect on August 23, 2005. 8.2 The first annual report shall be issued within one year following the effective date of this policy. SECTION 2. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED this 23 day of August, 2005. MAYOR ATTEST: CITY CLERK Purchasing Policy July 2010 Appendix H Page 14 -9 1 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Sharon L. Dawson, CMC, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the City of Santa Ctarita at a regular meeting thereof, held on the day of , 2005, by the following vote of the City Council: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK Purchasing Policy July 2010 Appendix H Page 15 �` STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. . CITY OF SANTA CLARITA ) CERTIFICATION OF CITY COUNCIL RESOLUTION I, Sharon L. Dawson, City Clerk of the City of Santa Clarita, do hereby certify that this is a true and correct copy of the original Resolution No. 05-103, adopted by the City Council of the City of Santa Clarita, California on August 23, 2005, which is now on file in my office. Witness my hand and seal of the City of Santa Clarita, California, this day of , 2005. Sharon L. Dawson, CMC City Clerk By Susan Coffman Deputy City Clerk Purchasing Policy July 2010 Appendix H Page 16 ( 6 ATTACHMENT Sample Procurement Determination Form Item: This item is required to meet Environmentally Preferable Purchasing guidelines as described in Resolution XX -XX. I have considered the Environmentally Preferable Purchasing guidelines and searched for product or service options that meet them. Compliance with Resolution XX -XX was not attainable for this purchase because: Item is not available within a reasonable period of time. (Need date: Date available: ) Item fails to meet a performance standard in the specifications. Specifically, Item is not available, or is not available from 2 or more sources. Market research was performed by calling (insert number) vendors, but only (enter name) was able to supply the item. Item was only available at an unreasonable price (i.e., EPP item cost more than non-compliant item). Price of EPP item: Price of non-compliant item: Compliance would conflict with state or federal law requiring that: Signature of Purchaser Printed Name of Purchaser Date Purchasing Policy July 2010 Appendix H Page 17 Q Hlg/T A VAX 14 u.s The Santa Clarita Redevelopment Agency (Agency) is committed to carrying out the Disadvantaged Business Enterprise (DBE) requirements of 49 CFR Part 26 "Participation by Disadvantaged Business Enterprises in U.S. Department of Transportation (DOT) Financial Assistance Programs," which became effective March 4, 1999. The procedures contained in the Agency's DBE Program will assure that all contracts and procurements will be administered without discrimination on the basis of race, color, sex, or national origin. The Agency will ensure that DBEs have an equal opportunity to compete for, and participate in, the performance of all DOT -funded contracts and subcontracts awarded by the Agency. The City of Santa Clarity Director of Administrative Services is responsible for adherence to this policy. The DBE Officer, in coordination with the Director of Administrative Services and the Purchasing Agent, will be responsible for development, implementation, and monitoring of this program. It is the expectation of the Agency Board and the Director of Administrative Services that the stipulations and provisions contained in this DBE Program will be adhered to both in spirit and letter by Agency personnel. It is the policy of the Agency to ensure nondiscrimination on the basis or race, color, sex, or national origin in the award and administration of DOT -assisted contracts. It is the intention of the Agency to create a level playing field on which DBEs can compete fairly for contracts and subcontracts relating to the Agency's construction, procurement, and professional service contracting activities. This Policy will be circulated to Agency employees and to appropriate community and business organizations that perform work on DOT -assisted contracts. Passed and adopted by the Santa Clarita Redevelopment Agency this day of 2010. Santa Clariia Redevelopment Agency Director of Administrative Services Santa Clarita Redevelopment Agency DBE Program rim The objectives of this Program are to: Ensure nondiscrimination in the award and administration of DOT - assisted contracts. 2. Create a level playing field on which DBEs can compete fairly for DOT- assisted contracts. Help remove barriers to DBE participation in the bidding, award, and administration of Agency contracts; 4. Assist the development of firms that can compete successfully in the market place outside of the DBE Program; Ensure that only firms that fully meet the eligibility standards of 49 CFR Part 26 are permitted to participate as DBEs,- 6. BEs; 6. Identify business enterprises that are qualified as DBEs and are competent to provide the Agency with required materials, equipment, supplies, and services; and to develop a good rapport with the owners, managers, and sales representatives of those enterprises; 7. Develop communications programs and procedures which will acquaint prospective DBEs with the Agency's contract procedures, activities, and requirements, and allow DBEs to provide the Agency with feedback on existing barriers to participation and effective procedures to eliminate those barriers; and 8. Administer the Program in close coordination with the various Departments and Divisions within the Agency so as to facilitate the successful implementation of this Program. Santa Clarma Redevelopment Agency DBE Program 9q . APPLICABILITY (Sections 26.3; 26.21) The applicability of this Program is as follows: Pursuant to 49 CFR § 26.3 and 26.21, the Agency, as a recipient of federal financial assistance from the Federal Transit Administration (FTA) of the United States Department of Transportation (DOT), is required to implement a DBE Program in accordance with 49 CFR Part 26. The Program outlined herein applies to all Agency contracts that are funded, in whole or in part, by DOT federal financial assistance. Prohibited Discrimination (Section 26.7) It is the policy of the Santa Clarita Redevelopment Agency that no person will ever be excluded from participation in, denied the benefits of, or otherwise be discriminated against, in connection with the award and performance of any contract covered by 49 CFR Part 26 on the basis of race, color, sex, or national origin. In the administration of the DBE Program, Santa Clarita Redevelopment Agency will not directly, nor through contractual or other arrangements, use criteria or methods of administration that have the effect of defeating, or substantially impairing, accomplishment of the objectives of this DBE Program with respect to individuals of a particular race, color, sex, or national origin. IIi II)EFINIT)[®NS (Sectron 265) f Any terms used in this Program that are defined in 49 CFR § 26.5, or elsewhere in the Regulations, shall have the meaning set forth in the Regulations. Some of the more commonly used terms are defined below: A. Disadvantaged Business Enterprise (DBE) A DBE is a for-profit, small .business concern: 1) that is at least fifty-one percent (51 %) owned by one or more individuals who are both socially and economically disadvantaged, or, in the case of a corporation, in which fifty-one percent (51 %) of the stock is owned by one or more socially and economically disadvantaged individuals; and 2) whose management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it. Santa Clarita Redevelopment Agency DBE Program 3 /UU Small Business Concern A small business concern is an existing small business, as defined by section 3 of the Small Business Act and the Small Business Administration regulations which implemented the Act (13 C.F.R. Part 121), whose average annual gross receipts for the previous three years do not exceed $16.6 million (or as adjusted for inflation by the Secretary of DOT), pursuant to 49 CFR § 26.65(b). 2. Socially and Economically Disadvantaged Individuals There is a rebuttable assumption that an individual is both socially and economically disadvantaged if s/he is a citizen, or lawfully admitted permanent resident of the United States, and is: a. Black American (including persons having origins in any of the Black racial groups of Africa); b. Hispanic American (including persons of Central or South American, Cuban, Dominican, Mexican, Puerto Rican, or other Spanish or Portuguese culture or origin, regardless of race); Native American (including persons who are Aleuts, American Indians, Eskimos, or Native Hawaiians); d. Asian -Pacific American (including persons whose origins are from Brunei, Burma (Myanmar), Cambodia (Kampuchea), China, the Commonwealth of the Northern Marianas Islands, the Federated States of Micronesia, Fiji, Guam, Hong Kong, Indonesia, Japan, Juvalu, Kirbati, Korea, Laos, Macao, Malaysia, Nauru, the Philippines, Samoa, Taiwan, Thailand, Tonga, the U.S. Trust Territories of the Pacific Islands (Republic of Palau), or Vietnam),- e. ietnam); e. Subcontinent Asian American (including persons whose origins are from Bangladesh, Bhutan, India, the Maldives Islands, Nepal, Pakistan, or Sri Lanka); f. Woman; or g. A member of any additional group that is designated as socially and economically disadvantaged by the Small Business Administration. Additionally,. any individual can demonstrate, by a preponderance of evidence; that s/he is socially and economically disadvantaged on a case-by-case basis. The Agency will Santa Clarita Redevelopment Agency DBE Program 4 /0/ follow the guidelines in 49 CFR Part 26, Appendix E for determining social and economic disadvantage. An individual cannot be presumed or determined on a case-by-case basis to be economically disadvantaged if s/he has a personal net worth exceeding $750,000 (excluding the individual's ownership interests in the small business concern and his or her primary residence). B. Race -Neutral A procedure or program that is used to assist all small businesses. For the purposes of this Program, race -neutral includes gender neutrality. C. Race -Conscious A measure or program that is specifically focused on assisting only DBEs, including women -owned DBEs. D. Personal Net Worth The net value of the assets of an individual remaining after total liabilities are deducted. An individual's personal net worth does not include: the individual's ownership interest in an applicant or participating DBE firm; or the individual's equity in his or her primary place of residence. An individual's personal net worth includes only his or her own share of community property with the individual's spouse. IIIc' , RESPONSIBILIT:Y FOR DBE PROGRAM `IMPLE NTAT.ION _.. ..: , w _ AND -ADMINISTRATION A. The Agency Board ultimately is responsible for ensuring that the DBE Program has a high priority and is a reality within the Agency organization. B. The Executive Director is responsible for seeing that the Board's policies are implemented throughout the Agency. C. The Director of Administrative Services has been designated DBE Officer by the Director of Executive Director as the management staff member responsible for overseeing the DBE Program and has the full support of the Executive Director. The DBE Officer, in coordination with the Executive Director and the Purchasing Agent, is responsible for recommending DBE Santa Clarita Redevelopment Agency DBE Program 5 /01;11 policy, developing a written DBE program, and establishing internal and external communication procedures. D. The DBE Officer and the Purchasing Agent are responsible for contract and procurement of goods and services; for assuring that such processes are carried out in a non-discriminatory manner; for initiating procedures; and for developing strategies to ensure non-discrimination in the Agency's purchasing and contracting activities. The senior management staff and the contract/project managers are expected to assist in problem identification when DBE goals are included in a contract; to audit specific contracts and remove obstacles to achieving DBE goals; and to provide the DBE Officer and other staff the support to assure that DBE program guidelines are being followed. E. The Agency Counsel is responsible for advising the Agency Board, the Director of Administrative Services, and Agency staff on the legal ramifications of DBE Program implementation. F. The DBE Officer is responsible for carrying out the following day-to-day activities: Pursuant to 49 CFR § 26.23, the Program shall be administered by the DBE Officer, who shall be appointed by and report to the Executive Director. The DBE Officer is the primary person responsible for all aspects of this Program, and will work closely with other departments and consultants of the Agency, including legal, purchasing, engineering, and others who are responsible for making decisions relative to the Agency's DOT -assisted construction, procurement, and professional service contracts. The DBE Officer for the Santa Clarita Redevelopment Agency is Darren Hernandez. In accordance with 49 CFR 26.23, the specific duties and responsibilities of the DBE Officer shall include, but not be limited to, the following: 1. Gathering and reporting statistical data and other information as required by FTA; 2. Reviewing third party contracts and purchase requisitions for compliance with this Program; 3. Working with appropriate divisions to establish overall annual goals; 4. Ensuring timely notification to the DBE community of bid and contract opportunities, Santa Clarita Redevelopment Agency DBE Program lU3 5. Identifying contracts and procurements so that DBE goals are included in solicitations for both race -neutral and race -conscious DBE participation, and monitoring the results; 6. Analyzing Agency progress toward DBE goal attainment, and identifying ways to improve progress; 7. Participating in pre-bid meetings; 8. Analyzing and assessing the available resources and evidence for the establishment and achievement of an annual overall participation goal for DBEs each fiscal year; 9. Advising the Director of Administrative Services on DBE matters; 10. Maintaining and updating the DBE Directory in accordance with 49 CFR 23.61;* 11. Maintaining and updating the Bidders List in accordance with 49 CFR 26.11;* 12. Identifying race -neutral measures to facilitate DBE participation such as outreach, communication programs, training and business development programs, restructuring contracting opportunities, and simplifying bonding, surety, and insurance requirements; 13. Planning and participating in DBE training and providing technical assistance; 14. Providing outreach to DBEs and community organizations with advice on DBE Program issues and contract opportunities; 15. Participating in the contract bid and award process including establishing specific contract goals where appropriate, reviewing contract specifications, attending pre-bid conferences, and evaluating bids for contractor responsiveness, responsibility, and good faith efforts; 16. Monitoring specific contract performance and actual DBE participation;* 17. Monitoring overall DBE participation, adjusting overall goals and means of achievement, assessing areas of over concentration of DBE participation, and reporting to the Agency and FTA as needed; 18. Determining all initial certification actions including certifications, recertifications, denials, and removals,* Santa Clarita Redevelopment Agency DBE Program 7 ivy 19. Participating in the development of a statewide Unified Certification Program in accordance with 49 CFR 26.81;* 20. Assisting the Agency's DBE Program Review Committee (DPRC); 21. Participating in the Regional Certification Reciprocity Council of Southern California (RCRC); and 22. Maintaining all appropriate records and documentation of the DBE Program. Note: Asterisk (*) indicates new or revised responsibility in 49 C.F.R. Part 26. G. The Project Manager is responsible for ensuring contractor compliance with the requirements of 49 C.F.R. Part 26 for each contract under their cognizance. The Project Manager will assist the DBE Officer in carrying out the day-to-day responsibilities of the DBE Program. and obtain necessary data from contractors and subcontractors for reporting to DOT. DBE Program Review Committee (DPRC) The DBE Officer, the Transportation Manager, the Project Engineer, and the Purchasing Agent will comprise the DBE Review Committee. The DBE Officer shall serve as a resource to the Committee, attending all meetings and furnishing background information. The Committee shall assist the DBE Officer with implementation of this Program and shall preside over hearings that may be held pursuant to this Program, including Administrative Reconsideration of the DBE Officer's determination of a bidder's compliance with "good faith efforts," or of the removal of DBE certification, in accordance with 49 CFR 26.53(d) and 26.87(d), respectively. Regional Certification Reciprocity Council of Southern California (RCRC) The DBE Officer is designated by the Director of Administrative Services to represent the Agency as a member of the Regional Certification Reciprocity Council of Southern California (RCRC). The Agency will participate in RCRC programs, activities, and efforts in the Region to create a level playing field on which DBEs can compete fairly; to enhance outreach and communication efforts with these funis; to provide appropriate assistance and information for participation in DOT -assisted contracts; to develop joint resources among recipients; and to coordinate certification efforts through reciprocity and the development of a Unified Certification Program. To this end, the DBE Officer will attend scheduled meetings of the RCRC and will contribute to the achievement of RCRC projects approved by the Agency's Director of Administrative Services. Santa Clarita Redevelopment Agency DBE Program /0S RCRC Appeals Review Panel The DBE Officer will offer to serve as a member of the RCRC Appeals Review Panel, as necessary. This panel was established by the RCRC for the purpose of facilitating a truly impartial hearing, at the local level, of denials on applications for DBE certification or recertification. It is the policy of RCRC member agencies to provide a forum in which firms are provided the opportunity to participate in a hearing on their DBE eligibility denial before a review panel composed of representatives from agencies that did not make the eligibility decision. In such proceeding, the Agency bears the burden of proving, by a preponderance of the evidence, that the firm does not meet certification standards. If, in the opinion of a majority of the RCRC Appeals Review Panel, the Agency fails to prove the firm's ineligibility, the panel may override the Agency's decision and such determination by the Appeals Review Panel will be accepted as final by the Agency. (See page 41 for further discussion of the hearing process.) •Ezecuti Ken Director 3kamD: ,z y ''Agency�C,ounsel = t {Purchasing Agent , frojecWanager> Jon'Bischetsdeder Santa Clanta Redevelopment Agency DBE Program 9 /0� w - --� Ti-, ' k ADMINISTRATIVE REQUIRElVI IN TS �' z A. DBE Financial Institutions Pursuant to 49 CFR § 26.27, the DBE Officer shall investigate the availability of services offered by financial institutions owned and controlled by socially and economically disadvantaged individuals in the Los Angeles Area. The Agency shall also encourage its prime contractors to use the services of DBE financial institutions. B. DBE Directory Pursuant to 49 CFR § 26.3 1, the DBE Officer will maintain and update annually a DBE directory that identifies all firms deemed to be eligible to participate as DBEs in this Program. The DBE directory will be made available, on request, to contractors and the public. The DBE directory shall include the firm's name, address, telephone number, and types of work for which the firm is certified as a DBE. The DBE directory shall not in any way pre -qualify the identified DBE firms with respect to licensing, bondability, competence, or financial responsibility. C. Over -Concentration Pursuant to 49 CFR § 26.33, if the DBE Officer determines that DBE participation is so over -concentrated in certain types of work or contracting opportunities that it unduly burdens the participation of non -DBEs in that type of work, the DBE Officer will develop appropriate measures to address the over -concentration. The DBE Officer will seek approval from the FTA, and at that time, the measures will become part of this Program. Currently, the Agency is unaware of any types of work that have a burdensome over - concentration of DBE participation. D. Business Development and Mentor -Protege Programs One method of providing race -neutral efforts for DBE participation will be through participating in Area Business Development programs. Instruction may cover such topics as: teaming and joint ventures, writing a winning proposal or bid, the bid evaluation process, and addressing various barriers that small businesses encounter in third party contracting. If the Agency is directed to develop a mentor/protege program, one will be written and submitted to FTA's Regional Office for approval, after which it will become part of this DBE Program. Guidelines outlined in Appendices C and D Santa Clarita Redevelopment Agency DBE Program 10 of 49 CFR Part 26 will be utilized in setting up requisite formal agreements and programs. When a company is identified by the Agency as a potential candidate for a formal business development program, further technical assistance, or a mentor/protege relationship, the company will be provided with pertinent information concerning available Area programs. E. Reconsideration Official In accordance with 49 CFR 26.53(d)(2) and 26.87(e), all proceedings by the Agency regarding the reconsideration of compliance with the provisions of the DBE regulation concerning a contract award, or the DBE status of a firm, shall be made by a Agency representative who did not take part in the original determination. Reconsideration procedures are further discussed on page 19. F. Transit Vehicle Manufacturer Certification (Section 26.49) The Agency will require that transit vehicle manufacturers shall certify that they have established an annual overall DBE participation goal that has been approved by the FTA (or has been submitted, but not disapproved) before they can bid on any Agency contracts. Expenditures for FTA -assisted transit vehicle procurements are not included in establishing the overall annual goal for DOT - assisted contracting opportunities. v'r 'D VR °p a ; INCS.ACHIEVINC�=AND COUNTING;.OVERAIL z _- ANNUAL AND'CONTRAC,T SPECIFIC;DBE GOALS (Section 26.4 A. OVERALL ANNUAL DBE GOAL Pursuant to 49 CFR § 26.45, the Agency shall establish an annual overall goal on a fiscal year basis for the participation of DBEs in all budgeted contracts utilizing DOT federal financial assistance. The annual overall goal shall be expressed as a percentage of the total amount of DOT funds the Agency anticipates expending in the fiscal year. The Agency's annual overall goal represents the amount of ready, willing, and able DBEs that are identified as available to participate in contracting opportunities, and is reflective of the amount of DBE participation the Agency would expect absent the effects of discrimination. The Agency intends to meet this goal to the maximum extent feasible through the race -neutral measures described below. Where race -neutral measures are inadequate to meet the annual overall goal, the Agency will Santa Clarita Redevelopment Agency DBE Program 11 /Ug establish specific contract goals for particular projects with subcontracting opportunities. 1. Projecting DOT Assisted Contract Expenditures In conjunction with the preparation and adoption of the budget for each fiscal year, the DBE Officer, in consultation with the appropriate Agency divisions responsible for transportation contracting activities, will conduct a thorough analysis of the projected number, types of work, and dollar amounts of contracting opportunities that will be funded, in whole or in part, by DOT federal financial assistance for that fiscal year. This analysis will exclude projected contract expenditures with Transit Vehicle Manufacturers, who are exempt from the Program as described herein. 2. Establishing a Base Figure Pursuant to 49 CFR § 26.45, the Agency will develop a base figure to express the availability of DBEs as a percentage of all contractors, subcontractors, manufacturers, and suppliers in the relevant contracting markets. The Agency will follow one of the methodologies provided in the Regulations, or develop an alternative methodology, and will provide the appropriate documentation in the Annual Overall Goal Report described in this DBE Program. a. Analyzing Available Businesses in Relevant Contracting Markets The DBE Officer, in conjunction with the appropriate Agency divisions, will conduct an analysis of the relevant contracting markets in which the Agency will solicit participation from contractors, subcontractors, manufacturers, and suppliers for the fiscal year. This analysis will include a description of geographical boundaries of the solicitations, the relevant standard industry codes (NAICS codes) for the types of work to be contracted, and any other indicators that the Agency determines to be relevant in defining its contracting markets for the fiscal year. The DBE Officer will then determine the available businesses and will consult a variety of sources such as the Agency's Bidder's List, Area DBE Directories, the County Business Patterns Database, and pertinent disparity studies. Statistics may be utilized from the Census Bureau, the Department of Commerce, Bidder's lists, and certified DBEs in the categories of construction, professional services, and materials/supplies. Consultation may he held with minority, women, and general contractor groups, as well as other community organizations, in an effort to establish a level playing field. Santa Clartta Redevelopment Agency DBE Program 12 0 � b. Analyzing Available DBEs in the Relevant Contracting Markets The DBE Officer will conduct a similar analysis to determine the DBEs that are available to participate as contractors, subcontractors, manufacturers, and suppliers in the projected contracts for the fiscal year. This analysis may include a description of the available DBEs relative to the geographical boundaries of the solicitations, the SICs for the types of work to be contracted, and any other factors as described above. The Agency may consult a variety of sources including, but not limited to, DBE Directories, Bidder's Lists, the County Business Patterns Database, and relevant disparity studies. C. Calculating the Base Figure The DBE Officer will compare available DBEs in the relevant contracting markets for the fiscal year to the available businesses in the relevant contracting markets for the same period. The calculation will include a weighting factor according to contract expenditure patterns. 3. Adjusting the Base Figure Pursuant to 49 CFR § 26.45(d), the Agency will examine all available evidence to determine whether adjustment is needed to the base figure in order to arrive at the Agency's overall goal. The DBE Officer will analyze the results of its efforts to contract with DBEs for the past two years, any available and relevant disparity studies (to the extent that they are not accounted for in the base figure), any available and relevant results of other DOT recipients' efforts to contract with DBEs, and any relevant feedback or projections from DBE professional organizations, the Small Business Administration, or others. Using the data collected regarding over -concentration, DBE availability of firms ready, willing and able, and other necessary information (such as how long each project will span), a goal will be set at the level of DBE participation anticipated, absent the effects of discrimination. 4. Projection of Percentage of Overall Goal to be Achieved Through Race Neutral and Race Conscious Measures Once the annual overall goal is proposed, the DBE Officer will analyze and project the maximum feasible portion of that goal that can be achieved by using race neutral methods. Where the projected portion of the goal using race - neutral methods is less than the annual overall goal, the remaining portion will Santa Clarita Redevelopment Agency DBE Program 13 //0 be achieved by establishing contract goals for particular projects that have subcontracting opportunities. Any over -concentration of DBEs in a particular trade will be excluded from race -conscious contract goals. The Agency will attempt to meet the maximum feasibleportion of the overall goal by using race -neutral measures. Race -neutral participation includes procurements in which a DBE wins a prime contract through customary competitive procedures, or is awarded a subcontract on a prime contract that does not carry a DBE goal, or even if there is a DBE subcontract goal the DBE wins a subcontract from,a prime that did not consider its DBE status in making the award. The DBE Officer shall monitor and adjust the use of contract -specific goals in accordance with 49 CFR 26.51(f). When projecting the percentage of the overall annual goal to be achieved through establishing contract -specific goals, the DBE Officer shall analyze the actual achievement of the overall annual goal through race -neutral methods in the previous two years. When establishing contract -specific goals during a current fiscal year, the DBE Officer shall analyze the progress towards achieving the overall annual goal and increase or reduce the use of contract -specific goals accordingly. DBE race -conscious contract goals will be used only on those DOT -assisted contracts that have subcontracting opportunities. DBE contract goals will be established so as to cumulatively result in meeting that portion of the Agency's overall goal that is not projected to be met through race -neutral means. 5. Publishing and Submitting the Overall Annual DBE Goal Upon completion of the process described above, the DBE Officer will prepare an Overall Annual Goal report which documents the analysis and methodology, as well as the proposed goal and estimate of participation to be achieved through race -neutral measures. a. Submission of Total Overall Annual The annual overall goal for DBE participation shall be submitted to FTA for approval by September 1 for Fiscal Year 2000-2001, and by August 1 in succeeding years. b. Publication of Proposed Overall Annual Goal Santa Clarita Redevelopment Agency DBE Program 14 Pursuant to 49 CFR § 26.45(g), the Agency will publish its proposed overall annual goal. The notice shall include a statement that the methodology and proposed goal are available for inspection by the public for 30 days from the date of publication. The notice shall also include a statement that the Agency will accept public comments to the proposed goal and methodology for a period of 45 days from the date of publication and provide instructions for the submission of comments. 6. Achieving the Overall Annual Goal The Agency, shall achieve the annual overall goal for DBE participation through a combination of race -neutral measures and contract goals for particular contracts with subcontracting opportunities. a. * Race -Neutral Methods The Agency intends to use race neutral methods to the maximum extent feasible'to achieve its annual overall goal. DBE participation that is obtained on contracts which have no specific DBE goal, or where prime contractors use a strictly competitive bidding process, or do not consider the DBE firm's status as a DBE in awarding a subcontract shall be considered race -neutral DBE participation. In addition, the Agency will use the following measures, as appropriate: i. unbundling large contracts; ii. assisting in overcoming limitations in bonding, iii. providing technical assistance; iv. providing assistance with outreach and communications programs to DBEs; V. providing assistance with business development activities including financial ability, technical/business capacity, use of emerging technology, and start-ups in non-traditional business areas for DBEs; and vi. distributing the DBE directory electronically and otherwise, as requested. B. CONTRACT SPECIFIC GOALS - Race -Conscious Measures 1. Establishing Contract Specific Goals Santa Clanta Redevelopment Agency DBE Program 1s The Agency shall establish contract -specific DBE participation goals on particular prime contracts with subcontracting opportunities to the extent that the Agency cannot achieve its annual overall goal with race -neutral measures. Where a contract -specific DBE goal has been established, the bidder or proposer must meet the contract -specific goal or demonstrate that it made good faith efforts to do so. A bidder shall be ineligible for award if it does not meet the goal or demonstrate good faith efforts. The goal shall be established based on a recommendation and information furnished by the DBE Officer. The contract -specific goal shall apply to the percentage participation of DBEs in the total contract work and be set forth in the contract documents. The Agency is not required to establish a contract - specific goal for every prime contract with subcontracting opportunities. For each contract involving subcontracting opportunities, the factors outlined below will be considered to determine whether a contract -specific goal should be established for the particular contract and, if so, what the percentage goal shall be: a. The projected portion of the overall annual goal that will be met by establishing contract -specific goals; b. The progress towards achieving the annual overall goal; C. The full range of activities in the proposed contract; d. The availability of DBEs as prime contractors or subcontractors in the types of work involved in the performance of the proposed contract; e. The unique conditions of the project that might affect the ability of the prime contractor to coordinate, utilize, or incorporate subcontractors or suppliers into the project. (Projects consisting of only one or two sub - trades may not be appropriate for a contract -specific goal due to the fact that establishing a goal could result in restrictive bidding). f The effect that the contract -specific goal might have on the time of completion; and g. Any other relevant criteria. 2. Awarding Contracts with Contract -Specific Goals Each solicitation for which a DBE contract goal has been established will require the bidders/offerors to submit the following information either under sealed bid procedures as a matter of responsiveness, or with initial proposals Santa Clarita Redevelopment Agency DBE Program 16 //3 under contract negotiation procedures, or at any time before a commitment to the performance of a contract: a. The names and addresses of DBE firms that will participate in the contract; b. A description of the work that each DBE will perform; c. The dollar amount of the participation of each DBE firm; d. Written documentation of commitment to use DBE subcontractors whose participation the prime submits to meet a contract goal; e. Written confirmation from the DBE that it is participating in the contract as provided in the prime contractor's commitment; and f. If the DBE contract goal is not met, evidence of good faith efforts to meet the goal The Agency shall award contracts to the lowest responsible bidder, as required by the California Public Contracts Code Sections 20914 and 20916. A bidder who fails to demonstrate that it achieved the contract -specific DBE participation goal, and fails to demonstrate that it made good faith efforts to do so, shall not be deemed "responsible" and, therefore, shall be ineligible for award of the contract. 3. Evaluation of Bids with DBE Goals After the bid opening, or submission of proposals, the DBE Officer shall evaluate all bids/proposals with regard to the DBE requirements to determine a recommendation for award of contract. The responsible bidder with the lowest apparent bid price, who also meets the contract -specific goal or demonstrates good faith efforts, shall be recommended for contract award. In the event that the bidder with the lowest apparent bid price does not meet the contract -specific goal or demonstrate good faith efforts, the DBE Officer shall evaluate the bidder with the next lowest bid price. (See Reconsideration Process discussion on pages 10 (E) and 19 (d).) a. Evaluation of DBE Certification Status The Agency shall require that any DBEs listed by bidders for participation in the contract be certified as eligible DBEs. The DBE Officer shall review the Bidder's DBE Report to confirm each DBE's certification status. The Agency will accept current certifications by the Santa Clanta Redevelopment Agency DBE Program 17 Agency, DOT and its agencies, the Small Business Administration, or other DOT federal financial assistance recipients, as appropriate. The Agency will require any firm listed, but not currently certified as a DBE, to submit the proper certification information within five days of bid opening in order to be included in the bidder's DBE achievement. b. Determination of Amount of DBE Participation The DBE Officer shall review the total dollar value of the work and the percentage of the total contract bid price reported on the Bidder's DBE Report for accuracy and shall compare it to the contract -specific goal established for the contract. C. Determination of Good Faith Efforts If the amount of DBE participation does not meet the contract -specific - goal, the DBE Officer shall review the good faith effort report submitted by the bidder, as required by the contract document. The DBE Officer shall determine whether the bidder has performed the quality, quantity, and intensity of efforts that demonstrates a reasonably active and aggressive attempt to meet the contract -specific goal in accordance with 49 CFR Part 26 Appendix A which is incorporated herein by this reference. The kinds of effort that will be considered demonstrative of "Good Faith Efforts" include, but are not limited to, the following: - Whether the contractor solicited through all reasonable and available means (e.g. attendance at pre-bid meetings, advertising and/or written notices) the interest of all certified DBEs who have the capability to perform the work; - Whether the contractor solicited interest within sufficient time to allow the DBEs to respond and, if appropriate steps were taken, to follow-up with interested DBEs; - Whether the contractor selected portions of work to be performed by DBEs and, where appropriate, broke -out contract work items into economically feasible units to facilitate DBE participation even when the prime might otherwise prefer to perform these work items with its own forces; - Whether the contractor negotiated in good faith with interested DBEs (evidence includes names, addresses, and phone numbers; description Santa Clarita Redevelopment Agency DBE Program 18 of information provided regarding plans and specifications; and evidence as to why additional agreements could not be reached); - Whether the contractor made efforts to assist interested DBEs in obtaining necessary equipment, supplies, materials, or related assistance or services; - Whether the contractor made efforts to assist interested DBEs in obtaining bonding, lines of credit, or insurance; -Whether the contractor effectively used the services of available minority/women community organizations, contractors' groups, or other organizations to provide assistance; and - Whether other bidders on the procurement met the DBE goal. d. Bidder's Right to Administrative Reconsideration In the event that the DBE Officer determines that the apparent low bidder has not met the contract -specific goal and has not demonstrated good faith efforts, the DBE Officer will notify the bidder in writing. The notification shall explain the basis and include the reasons for the determination, and shall inform the bidder of its right to submit further written documentation or appear before the Reconsideration Officer prior to the time that a recommendation for award of contract is presented to the Agency Board. After reconsideration, the Agency shall provide the bidder with a written decision. The result of the reconsideration process is not appealable by the bidder to the Department of Transportation. In the event that the Reconsideration Officer finds that the bidder has not met the contract goal or demonstrated good faith efforts, the Agency will deem said bidder not responsible and evaluate the bidder submitting the next lowest bid. 4. Recommendation for Award of Contract with DBE Goal Following determination of the lowest responsible bidder, the DBE Officer shall document the lowest responsible bidder's compliance with the DBE requirements, which may be reviewed at the time the contract award is considered. If the Agency Board disagrees with the recommendation, it shall Santa Clarita Redevelopment Agency DBE Program 19 /( 6 reject all bids or refer the matter back to the Director of Administrative Services for further evaluation and recommendation. 5. DBE Replacement A contractor must make a good faith effort to replace a defaulting DBE subcontractor with another certified DBE. The prime must immediately notify the DBE Officer of the DBE's inability to perform and provide reasonable documentation. The contractor must receive prior written approval on the substitute DBE from the Agency. The contractor will provide copies of new or amended subcontracts and a completed DBE certification application form for each new DBE, or must provide sufficient good faith efforts documentation. If the contractor fails or refuses to comply in the time specified, the Agency will issue an order stopping all, or part of, payment/work until satisfactory action has been taken. If the contractor still fails to comply, the Agency may issue a termination for default proceeding. C. COUNTING AND TRACKING DBE PARTICIPATION Only the work actually performed by a DBE will be counted towards the DBE goal. The cost of supplies and materials obtained by the DBE or equipment leased (except from the prime contractor or its affiliate) may also be counted. Work that a DBE subcontracts to a non -DBE firm does not count toward DBE goals. Expenditures may only be counted if the DBE is performing a commercially -useful function. A DBE should perform at least 30 percent of the total cost of its contract with its own work force. Decisions on commercially - useful function are subject to review by the FTA, but are not administratively appealable to DOT. If materials or supplies are obtained from a DBE manufacturer, 100 percent of the cost will be counted. If the materials and supplies are purchased from a DBE regular dealer, 60 percent of the cost will be counted. DBE achievement will not be counted toward the overall goal until the DBE has been paid. The DBE Officer will track the participation of DBEs in contract -specific goal contracts separately from the participation of DBEs that are considered race -neutral. Additionally, the DBE Officer will not count that portion of a DBE's participation that is achieved after the certification of the DBE has been removed during the performance of a contract. VI , REQUIRED ICON TRACTPROVISIONS (Section 26.13) N eF b Santa Canto Redevelopment Agency DBE Program 213 The Agency agrees to include the following provisions in all DOT -assisted contracts, where appropriate: A. Nondiscrimination Assurance Each financial assistance agreement that the Agency signs with the FTA will include the following statement: "The recipient shall not discriminate on the basis of race, color, national origin, or sex in the award and performance of any DOT -assisted contract, or in the administration of its DBE Program. The recipient shall take all necessary and reasonable steps under 49 CFR Part 26 to ensure nondiscrimination in the award and administration of DOT -assisted contracts. The recipient's DBE Program, as required by 49 CFR Part 26, and as approved by DOT, is incorporated by reference in this agreement. Implementation of this DBE Program is a legal obligation and failure to carry out its terms shall be treated as a violation of this agreement. Upon notification to the Santa Clarita Redevelopment Agency of its failure to carry out its approved -program, the Department of Transportation and/or the Federal Transit Administration may impose sanctions as provided for under Part 26 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq)." 2. Each DOT -assisted contract the Agency signs with a contractor, and each subcontract the prime contractor signs with a subcontractor, will include the following statement: "The contractor, subrecipient, or subcontractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. The contractor shall carry out applicable requirements of 49 CFR Part 26 in the award and administration of DOT -assisted contracts. Failure by the contractor to carry out these requirements is a material breach of this contract, which may result in termination of this contract or such other remedy as the Agency deems appropriate." B. Prompt Payment Policy and Provisions The Agency shall include the following provision in each DOT -assisted contract: "The prime contractor must pay subcontractors for satisfactory performance of their contracts no later than 15 days from the receipt of payment made to the prime by the Agency. Prompt return of retainage payments from the prime Santa Clarna Redevelopment Agency DBE Program 21 //e contractor to the subcontractor will be made within 15 days after the subcontractor's work is satisfactorily completed. Any delay or postponement of payment among the parties may take place only for good cause and with the Agency's prior written approval. If the prime contractor determines the work of the subcontractor to be unsatisfactory, it must notify the Agency's DBE Officer immediately in writing and state the reasons. Failure by the prime contractor to comply with this requirement will be construed to be a breach of contract and subject to contract termination." C. Legal and Contract Compliance Mechanisms and. Remedies Legal Mechanisms and Remedies The Agency will implement appropriate mechanisms to ensure compliance with the DBE Program by all program participants under Federal, state, and local law. 2. Contract Monitoring Mechanisms and Remedies in Contracts Using Race_ Neutral Methods: a. The DBE Officer will be notified as soon as it is determined that there will be a solicitation for bid, proposal, or quotation for a DOT -assisted contract. If appropriate, notices will then be sent to applicable DBEs and minority/women organizations. b. The DBE Officer/Purchasing Agent will obtain a list of companies that submit bids or proposals and those that did not; and will review to determine why responses were not submitted and any barriers that may exist. c. The DBE Officer/Purchasmg Agent will keep records on the companies ready, willing, and able to do business on any given solicitation. d. The DBE Officer/Purchasing Agent will keep records on contracts that have no contract goals and on any DBE primes and subcontractors, that receive awards and contracts. e. Any possibilities of "unbundling," lowering bond requirements, joint Venture or mentor/protege opportunities will be noted and documented for file. 3. Contract Monitoring Mechanisms and Remedies in Contracts Using Race - Conscious Methods: Santa Clarita Redevelopment Agency DBE Program //I a. When a DBE goal is set on a contract, the DBE Officer will attend the pre- bid meeting, and will provide DBE information to contractors prior to bid opening. b. Once the contract is awarded, the DBE Officer will monitor the amount actually paid by the prime to DBE subcontractors, and will require monthly reports of payments to DBEs. A letter will be sent to the DBE subcontractors to verify the dollar amount. c. The amount awarded to the DBE, the amount paid to the DBE as stated by the prime, and the amount paid to the DBE as verified by the DBE, will be tracked. The actual amount paid to DBEs will be reported by the DBE Officer to FTA. d. The DBE Officer will be notified when a contract change or amendment is made, and the prime contractor and Agency's project manager will submit a statement to the DBE Officer regarding how the change may affect DBE subcontracting. e. The project manager, in cooperation with the DBE Officer, will ensure that work is actually being done by DBEs. 4. Other Reporting Requirements a. The Agency will continue to report DBE participation and annual overall goal -setting methods to the FTA as directed, and will maintain prescribed statistical data. b. Contractors performing work on the Agency's FTA -assisted contracts are required to report the DBE participation on their contracts on both race - neutral and race -conscious DBE goal achievement. Contractors are not to count participation of a DBE subcontractor toward the prime's DBE achievements or the overall agency DBE goal until the amount being counted has been paid to the DBE. I. DBE CERTIFICATIONSTANDARDS . . Santa Clarita Redevelopment Agency DBE Program 23 The regulation provides guidance from the Small Business Administration regulations concerning social and economic disadvantage determinations (13 CFR 124.103 and 123.104). A. Burdens of Proof (Subpart D, Section 26.61) In determining whether to certify a firm as eligible to participate as a DBE, the Agency will apply the standards of Subpart D of the regulation. The firm seeking certification has the burden of demonstrating to the Agency, by a preponderance of the evidence, that it meets the requirements concerning group membership or individual disadvantage, business size, ownership, and control. The Agency will rebuttably presume that members of the designated groups identified herein are socially and economically disadvantaged. However, applicants have the obligation to provide the Agency with information concerning their economic disadvantage (personal net worth statement). The Agency will make determinations concerning whether individuals and firms have met the burden of demonstrating group membership, ownership, control, and social and economic disadvantage by considering all the facts in the record, viewed as a whole. B. Group Membership Determinations (Section 26.63) If the Agency has reason to question whether an individual is a member of a group presumed to be socially and economically disadvantaged, the Agency will require an individual to demonstrate, by a preponderance of the evidence, that he/she is a member of a group presumed to be socially and economically disadvantaged. In making that determination, the Agency will consider whether or not the person has held himself/herself to be a member of the group over a long period of time prior to application for certification and whether the person is regarded as a member of the group by the relevant community. The Agency may require the applicant to produce appropriate documentation of group membership. If the Agency determines that an individual claiming to be a member of a group presumed disadvantaged is not a member of such group, the individual must demonstrate social and economic disadvantage on an individual basis. The Agency's decision concerning membership in a designated group will be subject to certification appeals procedures. C. Social and Economic Disadvantage Determination (Appendix E) 1. Social Disadvantage Santa Clarita Redevelopment Agency DBE Program 24 �a � Socially disadvantaged'individuals are those who have been subjected to racial or ethnic prejudice or cultural bias within American society because of their identities as members of groups and without regard to their individual qualities. Social disadvantage must stem from circumstances beyond their control. Evidence of individual social disadvantage must include at least one objective distinguishing feature that has contributed to social disadvantage such as race, ethnic origin, gender, disability, long-term residence in an isolated environment, or similar causes not common to individuals not socially disadvantaged; personal experiences of substantial and chronic social disadvantage in American society, not in other countries; and negative impact on entry into or advancement in the business world because of the disadvantage. The Agency will consider any relevant evidence in its assessment of this element, and in every case the Agency will consider education, employment, and business history to see if the totality of circumstances shows disadvantage in entering into or advancing in the business world. 2. Economic Disadvantage Economically disadvantaged.individuals are socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same or similar line of business who are not socially disadvantaged. The Agency requires submission of narrative and financial information from each individual claiming economic disadvantage. Each such individual must describe in a narrative statement the conditions that are the basis for the claim, and each must also submit personal financial information. The Agency will require a married individual to submit separate financial information for his/her spouse unless they are legally separated. In considering diminished capital and credit opportunities, the Agency will examine all factors relating to personal financial condition, including personal income for the past two years, personal net worth, and the fair market value of all assets. The Agency will also consider the financial condition of applicants compared to financial profiles of small businesses in the same primary industry classification(s)or similar lines of business. The financial profiles to be compared include total assets, net sales, pre-tax profit, sales/working capital ratio, and net Santa Clanta Redevelopment Agency DBE Program 25 worth. The Agency will attribute to any individual claiming disadvantaged status any assets that individual has transferred to an immediate family member, trust, or beneficiary for less than the fair market value within the prior two years of the concern's application, unless that individual demonstrates the transfer is to or on behalf of an immediate family member for education, medical or some other form of essential support, excluding gifts for birthdays, graduations, anniversaries, retirements or other special occasions. The Agency will consider assets transferred by an individual within the previous two-year period that are not considered in evaluating the individual's assets and net worth, such as transfers to charities. 3. Statement of Personal Net Worth (Section 26.67) The Agency shall rebuttably presume that citizens of the United States (or lawfully admitted permanent residents) who are Women, Black Americans, Hispanic Americans, Native Americans, Asian -Pacific Americans, Subcontinent Asian Americans, or other minorities found disadvantaged by the Small Business Administration are socially and economically disadvantaged individuals. The Agency will require applicants to submit a signed, notarized certification in a prescribed format that each presumptively disadvantaged owner is, in fact, socially and economically disadvantaged. The Agency will also require each individual owner of a firm to submit a signed, notarized statement of personal net worth with appropriate supporting documentation. In determining net worth, the Agency will exclude an individual's ownership interest in the applicant firm and the individual's equity in his/her primary residence. If the statement of personal net worth that an individual submits shows the individual's personal net worth to exceed $750,000, the individual's presumption of economic disadvantage will be rebutted without any further formal proceedings. If the Agency has a reasonable basis to believe that an individual who is a member of one of the designated groups is not, in fact, socially and/or economically disadvantaged, the Agency may start a proceeding to determine whether the presumption should be regarded as rebutted with respect to that individual. The Agency shall follow the procedures set forth in VIII (E), Removal Procedures. In this proceeding, the Agency has the burden of demonstrating, by a preponderance of the evidence, that the individual is not socially and economically disadvantaged. The Agency may Santa Clarita Redevelopment Agency DBE Program 26 ia3 require the individual to produce additional information relevant to the determination of his/her disadvantage. When an individual's presumption of social and/or economic disadvantage has been rebutted, his/her ownership and control of the firm cannot be used for purposes of DBE eligibility unless and until he/she makes an individual showing of social and/or economic disadvantage in the future. If the basis for rebutting the presumption is a determination that the individual's personal net worth exceeds $750,000, the individual is no longer eligible for participation in the program and cannot regain eligibility by making an individual showing of disadvantage. (See page 36 for discussion of related privacy issues.) 4. U. S. Small Business Administration Section 8(a) Firms (Section 2667(c)2 If a firm applying for certification has a current valid Section 8(a) certification from or is recognized by the U.S. Small Business Administration under the Section 8(a) Program, the Agency will accept the firm's 8(a) certification in lieu of conducting its own certification proceeding. Individual Determinations of Social and/or Economic Disadvantage (Section 26.67(d)) Firms owned and controlled by individuals who are not presumed to be socially and economically disadvantaged (including individuals whose presumed disadvantage has been rebutted) may be certified by the Agency on a case-by-case basis. The Agency will determine whether each individual whose ownership and control are relied upon for DBE certification is socially and economically disadvantaged. In such a proceeding, the applicant firm must demonstrate, by a preponderance of the evidence, that the individuals who own and control it are socially and economically disadvantaged. An individual whose personal net worth exceeds $750,000 will not be determined to be economically disadvantaged. The Agency will use guidance in Appendix E of 49 CFR Part 26. D. Business Size Determinations (Section 26.65) Santa Clarita Redevelopment Agency DBE Program PFI ia� To be an eligible DBE, a firm (including its affiliates) must be an existing small business as defined by SBA standards. The Agency will apply current SBA business size standards found in 23 CFR Part 121 appropriate to the types of work the firm seeks to perform in U.S. DOT -assisted contracts. Even if the firm meets the SBA requirements, a firm is not an eligible DBE in any federal fiscal year if the firm (including its affiliates) has had average annual gross receipts, as defined by SBA regulations, over the firm's previous three fiscal years in excess of $16.6 million, as adjusted for inflation from time to time. E. Ownership Determinations (Section 26.69) 1. In determining whether the socially and economically disadvantaged participants in a firm own the firm, the Agency will consider all the facts in the record viewed as a whole. To be an eligible DBE, a firm must be at least 51 percent owned by socially and economically disadvantaged individuals. In the case of a corporation, such individuals must own at least 51 percent of each class of voting stock outstanding and 51 percent of the aggregate of all stock outstanding. In the case of a partnership, 51 percent of each class of partnership interest must be owned by socially and economically disadvantaged individuals and must be reflected in the firm's partnership agreement. In the case of a limited liability company, at least 51 percent of each class of member interest must be owned by socially and economically disadvantaged individuals. 2. The firm's ownership by socially and economically disadvantaged individuals must be real, substantial, and continuing, going beyond pro forma ownership of the firm as reflected in the ownership documents. The disadvantaged owners must enjoy the customary incidence of ownership and share in the risks and profits commensurate with their ownership interests, as demonstrated by the substance, not merely the form, of arrangements. 3. All securities that constitute ownership shall beheld directly by disadvantaged persons. Except as provided in the regulation, no securities or assets held in trust; or by any guardian for a minor, are considered as held by disadvantaged persons in determining ownership of a firm. 4. The contributions of capital or expertise by the socially and economically disadvantaged owners, to acquire their ownership interests, must be real and substantial. Santa Clanta Redevelopment Agency DBE Program 28 �a� 5. In a situation in which an individual's expertise is relied upon as part of a disadvantaged owner's contribution to acquire ownership, the owner's expertise must be: in a specialized field; of outstanding quality; in areas critical to the firm's operations; indispensable to the firm's potential success; specific to the type of work the firm performs; and documented in the records of the firm. The individual whose expertise is relied upon must have a significant financial investment in the firm. For purposes of determining ownership, the Agency will deem as held by a socially and economically disadvantaged individual all interests in a business or other assets obtained by the individual: a. As the result of a final property settlement or court order in a divorce or legal separation; and b. Through inheritance or otherwise because of the death of the former owner. 6. The Agency will presume as not being held by a socially and economically disadvantaged individual, for purposes of determining ownership, all interests in a business or other assets obtained by the individual as the result of a gift, or transfer without adequate consideration, from any non -disadvantaged individual or non -DBE firm which is: a. Involved in the same firm for which the individual is seeking certification, or an affiliate of that firm; b. Involved in the same or a similar line of business; or Engaged in an ongoing business relationship with the firm, or an affiliate of the firm for which the individual is seeking certification. 7. To overcome this presumption and permit the interests or assets to be counted, the disadvantaged individual must demonstrate by clear and convincing evidence that: a. The gift or transfer was made for reasons other than obtaining certification as a DBE; and b. The disadvantaged individual actually controls the management, policy, and operations of the firm, notwithstanding the continuing participation of a non - disadvantaged individual who provided the gift or transfer. Santa Clanta Redevelopment Agency DBE Program K-0 / C;L (,-,2 S. The Agency will apply the following rules in situations in which marital assets form a basis for ownership of a firm: a. When marital assets (other than the assets of the business in question), held jointly or as community property by both spouses, are used to acquire the ownership interests asserted by one spouse, the Agency will deem ownership interest in the firm to have been acquired by that spouse with his/her individual resources, provided that the other spouse irrevocably renounces and transfers all rights in the ownership interest in the manner sanctioned by the laws of the state in which either spouse or the firm is domiciled. The Agency will not count a greater portion of j oint or community property assets toward ownership than state law would recognize as belonging to the socially and economically disadvantaged owner of the firm. b. A copy of the document legally transferring and renouncing the other spouse's rights in the jointly owned or community assets used to acquire an ownership interest in the firm must be included as part of the firm's application for DBE certification. 9. The Agency may consider the following factors in determining the ownership of a firm, but shall not regard a contribution of capital as failing to be real and substantial or find a firm ineligible solely because: a. A socially and economically disadvantaged individual acquired his/or her ownership interest as the result of a gift or transfer without adequate consideration; b. There is a provision for the co -signature of a spouse who is not a socially and economically disadvantaged individual on financing agreements, contracts for the purchase or sale of real or personal property, bank signature cards, or other documents; or C. Ownership of the firm in question or its assets is transferred for adequate consideration from a spouse who is not a socially and economically disadvantaged individual to a spouse who is such an individual. 9. The Agency will give particularly close and careful scrutiny to the ownership and control of a firm to ensure that it is owned and Santa Clarita Redevelopment Agency DBE Program 30 /s7 controlled, in substance as well as in form, by a socially and economically disadvantaged individual. F. Control Determinations (Section 26.71) In determining whether socially and economically disadvantaged owners control a firm, the Agency will consider all the facts in the record, viewed as a whole. Only an independent business may be certified as a DBE. An independent business is one in which its viability does not depend on its relationship with another firm or firms. In determining whether a potential DBE is an independent business, the Agency will scrutinize relationships with non -DBE firms in such areas as personnel, facilities, equipment, financial and/or bonding support, and other resources. The Agency will consider present or recent employer/employee relationships, the firm's relationship with prime contractors, and factors related to the independence of a potential DBE firm. Further, the Agency will consider the consistency of relationships between the potential DBE and non -DBE firms with normal industry practice. 2. A DBE firm must not be subject to any formal or informal restrictions which limit the customary discretion of the socially and economically disadvantaged owners. The socially and economically disadvantaged owners must possess the power to direct or cause the direction of the management and policies of the firm and to make day-to-day as well as long-term decisions on matters of management, policy, and operations. A disadvantaged owner must hold the highest officer position in the company (Chief Executive Officer or President). In a corporation, disadvantaged owners must control the Board of Directors. 4. In a partnership, one or more disadvantaged owners must serve as general partners with control over all partnership decisions. Individuals who are not socially and economically disadvantaged may be involved in a DBE firm as owners, managers, employees, stockholders, officers, and/or directors. Such individuals must not possess or exercise the power to control the firm, or be disproportionately responsible for the operation of the firm. The socially and economically disadvantaged owners may delegate various areas of management, policymaking, or daily operations of the firm to other participants in the firm, regardless of whether these participants are socially and economically disadvantaged individuals. Such delegations of authority must be revocable, and. the socially and Santa Clarita Redevelopment Agency DBE Program 31 i economically disadvantaged owners must retain the power to hire and fire any person to whom such authority is delegated. The managerial role of the socially and economically disadvantaged owners in the firm's overall affairs must be such that the Agency can reasonably conclude that the socially and economically disadvantaged owners actually exercise control over the firm's operations, management, and policy. 6. The socially and economically disadvantaged owners must have an overall understanding of, and managerial and technical competence directly related to, the type of business in which the firm is engaged and the firm's operations. 7. If the state or local law requires the persons to have a particular license or other credential in order to own and/or control a certain type of firm, then the socially and economically disadvantaged persons who own and control a potential DBE firm of that type must possess the required license or credential. The Agency will consider differences in remuneration between socially and economically disadvantaged owners and other participants in the firm, in the context of the duties involved, normal industry practices, and the firm's policies and practices. In order to be viewed as controlling the firm, a socially and economically disadvantaged owner cannot engage in outside employment or other business interests which conflict with the management of the firm or prevent the individual from devoting sufficient time and attention to the affairs of the firm. 8. A socially and economically disadvantaged individual may control the firm even though one or more of the individual's immediate family members (who themselves are not socially and economically disadvantaged individuals) participate in the firm. If the Agency cannot determine that the socially and economically disadvantaged owners, as distinct from the family as a whole, control the firm, then the socially and economically disadvantaged owners have failed to carry the burden of proof concerning control even though they may participate significantly in the firm's activities. 9. Where a firm was formerly owned and/or controlled by a non - disadvantaged individual, whether or not an immediate family member, ownership and/or control were transferred to a socially and economically disadvantaged individual, and the non -disadvantaged individual remains involved with the firm in any capacity, the disadvantaged individual now owning the firm must demonstrate by clear and convincing evidence that the transfer of ownership and/or Santa Clarita Redevelopment Agency DBE Program 32 control to the disadvantaged individual was made for reasons other than obtaining certification as a DBE; and that the disadvantaged individual actually controls the management, policy, and operations of the firm, notwithstanding the continuing participation of a non -disadvantaged individual who formerly owned and/or controlled the firm. 10. In determining whether a firm is controlled by its socially and economically disadvantaged owners, the Agency will consider whether the firm owns equipment necessary to perform its work. The Agency will not determine that a firm is not controlled by socially and economically disadvantaged individuals solely because the firm leases, rather than owns, such equipment; where leasing equipment is a normal industry practice and the lease does not involve a relationship with a prime contractor or other party that compromises the independence of the firm. 11. The Agency will grant certification to a firm only for specific types of work in which the socially and economically disadvantaged owners have the ability to control the firm. To become certified in an additional type of work, the firm must demonstrate only that its socially and economically disadvantaged owners are able to control the firm with respect to that type of work. The Agency will not require that the firm be recertified or submit a new application for certification, but will verify the disadvantaged owner's control of the firm and the additional type of work. 12. The Agency will certify a business operating under a franchise or license agreement if it meets the standards in the regulation, and the franchiser or licenser is not affiliated with the franchisee or licensee. In determining whether affiliation exists, the Agency will not consider restraints relating to standardized quality, advertising, accounting format, and other provisions imposed by the franchise agreement or license, provided the franchisee or licensee has the right to profit from its efforts and bears the risk of loss commensurate with ownership. 13. In order for a partnership to be controlled by socially and economically disadvantaged individuals, any non -disadvantaged partners must not have the power, without the specific written concurrence of the socially and economically disadvantaged partner, to contractually bind the partnership or subject the partnership to contract or tort liability. 14. The socially and economically disadvantaged individuals controlling a . firm may use an employee leasing company. This does not preclude such individuals from controlling their firm if they continue to maintain Santa Clarita Redevelopment Agency DBE Program 1041 7� an employer-employee relationship with the leased employees, including responsibility for hiring, firing, training, assigning, and otherwise controlling on-the-job activities of the employees as well as ultimate responsibility for wage and tax obligations related to the employees. G. Other Considerations (Section 26.73) Commercially -Useful Function The Agency will not consider commercially -useful function issues in any way in making decisions about whether to certify a firm as a DBE. Consideration of whether a firm performs a commercially -useful function, or is a regular dealer, pertains solely to counting toward DBE goals any participation of firms that have already been certified as DBEs. 2. Pattern of Conduct In making certification decisions, the Agency will consider whether a firm has exhibited a pattern of conduct indicating its involvement in attempts to evade or subvert the intent or requirements of the DBE program. 3. Present Circumstances The Agency will evaluate the eligibility of a firm on the basis of present circumstances and will not refuse to certify a firm based solely on historical information indicating lack of ownership or control by socially and economically disadvantaged individuals at some time in the past, if the firm currently meets ownership and control standards. The Agency will not refuse to certify a firm solely on the basis that it is a newly -formed firm. 4. DBE Cooperation The Agency expects DBE firms and firms seeking DBE certification to cooperate fully with requests for information relevant to the certification process. Failure or refusal to provide such information is a ground for denial or removal of certification. 5. For -Profit Firms Santa Clarita Redevelopment Agency DBE Program 34 �0 Only firms organized for profit may be eligible DBEs. Not-for-profit organizations, even though controlled by socially and economically disadvantaged individuals, are not eligible to be certified as DBEs. 6. Subsidiaries and Affiliates An eligible DBE firm must be owned by individuals who are socially and economically disadvantaged. Except as provided by this policy, a firm that is not owned by such individuals, but instead is owned by another firm—even a DBE firm—cannot be an eligible DBE. If socially and economically disadvantaged individuals own and control a firm through a parent or holding company, established for tax, capitalization, or other purposes consistent with industry practice, and the parent or holding company, in turn, holds and controls an operating subsidiary, the Agency will certify the subsidiary if it otherwise meets all requirements of the regulation. In this situation, the individual owners and controllers of the parent or holding company are deemed to control the subsidiary through the parent or holding company. The Agency will certify such subsidiary only if there is cumulatively 51 percent ownership of the subsidiary by socially and economically disadvantaged individuals. Recognition as a business as a separate entity for tax or corporate purposes is not sufficient to demonstrate that a firm is an independent business. 7. Prequalification The Agency will not require a DBE firm to be prequalified as a condition for certification unless the Agency requires all firms that participate in its contracts and subcontracts to be prequalified. 8. Tribal Organizations The Agency recognizes that a firm owned by an Indian tribe, Alaska Native Corporation, or Native Hawaiian organization as an entity, rather than by Indians, Alaska Natives, or Native Hawaiians as individuals, may be eligible for certification as long as such firm meets the size standards and is controlled by socially and economically disadvantaged individuals. Santa Clanta Redevelopment Agency DBE Program 35 J� H. Privacy/Confidentiality (Section 26:67) The Agency will ensure that any individual's personal financial information remains confidential. Neither an individual's Personal Net Worth Statement, nor any documentation supporting it, will be released to a third party without the written consent of the submitter, or as otherwise required by law or court order. The sole exception to this confidentiality policy is in the event of a certification appeal to the U.S. DOT in which the economic disadvantage of an individual is at issue. In such a circumstance, the personal financial information would be provided by the Agency to the U.S. DOT as part of the administrative record. The U.S. DOT would treat the information as confidential, in accordance with 64 FR 5117; February 2, 1999. A. Unified Certification Program (Section 26.81) The Agency is a participant in a reciprocal regional DBE certification program. It is the intent of the Agency to cooperate fully in the facilitation of a unified DBE certification program (UCP) to be fully operational by September, 2003. B. Initial Certification Procedures (Section 26.83) The Agency will ensure that only firms certified as eligible DBEs participate as DBEs in the DBE program. The Agency will determine the eligibility of firms as DBEs consistent with standards of the regulation. The Agency will take the following steps in determining whether a DBE firm meets the certification standards of the regulation: The Agency will perform an on-site visit to the offices of the firm and interview the principal(s) of the firm and review their resumes and/or work histories. The Agency may also perform visits to job sites if there are such sites on which the firm is working at the time of the eligibility investigation. The Agency may rely upon the site visit reports of any other U.S. DOT grantee with respect to a firm applying for certification; 2. If the firm is a corporation, the Agency will analyze the ownership of stock in the firm; Santa Clarita Redevelopment Agency DBE Program 36 /5-3 The Agency will evaluate the bonding and financial capacity of the firm,- 4. irm; 4. The Agency will evaluate the work history of the firm, including contracts it has received, and work it has completed; The Agency will obtain a statement from the firm of the type of work it prefers to perform as part of the DBE program and its preferred locations for performing the work, if any. 6. The Agency will obtain or compile a list of equipment owned by or available to the firm and the licenses the firm and its key personnel possess to perform the work it seeks to do as part of the DBE program. 7. The Agency will require potential DBEs to complete and submit an appropriate application form. The Agency will require the applicant to attest to the accuracy and truthfulness of the information on the application form. This shall be done either in the form of an affidavit sworn to by the applicant before a person authorized by state law to administer oaths, or in the form of a declaration executed under penalty of perjury of.the laws of the United States. The Agency will review all information on the form prior to making a decision about the DBE eligibility of the firm. When another grantee, in connection with its consideration of the eligibility of a firm, requests certification information the Agency has obtained about that firm, the Agency will promptly make the information available to the other grantee. 9. When another U.S. DOT grantee has certified a firm, the Agency has the discretion to take any of the following actions: a. Accept another grantee's certification decision; b. Make an independent certification decision based on documentation provided by the other grantee augmented by any additional information the Agency requires the applicant to provide; or Require the applicant to go through the Agency's certification process without regard to the action of the other grantee. Santa Clarita Redevelopment Agency DBE Program 37 %31/- d. The Agency may choose to, or not to, impose an application fee for firms to participate in the DBE certification process. e. The Agency will safeguard from disclosure from unauthorized persons all information gathered as part of the certification process that may be regarded as proprietary or other confidential business information, consistent with applicable federal, state, and local laws. f. Once the Agency has certified a firm as a DBE, it shall remain certified for a period of at least three (3) years unless and until its certification has been removed. The Agency will not require DBEs to reapply for certification as a condition of continuing to participate in the program during this three-year period unless the factual basis on which the DBE certification was made undergoes change in circumstance. g. Once certified, a DBE firm must inform the Agency in writing of any changes in circumstances affecting the firm's ability to meet size, disadvantaged status, ownership, or control requirements, or any material change in the information provided in the certification application process, and attach supporting documentation describing in detail the nature of such changes. Changes in management responsibility among members of a limited liability company are also covered by this requirement. Such notice of change from the DBE firm must take the form of an affidavit sworn to before a person authorized by state law to administer oaths, or of a declaration executed under penalty of perjury. The written notification shall be provided by the DBE within thirty (30) days of occurrence of the change(s). If the DBE fails to make timely notification of such change(s), it will be deemed to have failed to cooperate under the regulation. h. The Agency will make attempt to make decisions on applications for DBE certification within ninety (90) days of receiving from the applicant firm all information required. B. Recertification Procedures (Section 26.83) Every firm certified by the Agency as a DBE must provide to the Agency every year on the anniversary of the date of initial certification, an affidavit sworn to by the firm's owners before a person who is authorized by state law to Santa Clarita Redevelopment Agency DBE Program 38 /35 administer oaths or an unsworn declaration executed under penalty of perjury of the laws of the United States. This affidavit must affirm that there have been no changes in the firm's circumstances affecting its ability to meet size, disadvantaged status, ownership, or control requirements of the regulation or any material changes to the information provided in its original application, except for changes about which it has notified the Agency as required in Paragraph "g" above. The affidavit shall specifically affirm that the DBE continues to meet SBA business size criteria and the overall gross receipts cap, documenting this affirmation with supporting documentation of the DBE's size and gross receipts. If the DBE fails to provide this information in a timely manner, it will be deemed to have failed to cooperate with the requirements of the regulation (26.109). C. Denials and Reapplication Procedures (Section 26.85) When the Agency denies a request by a firm that is not currently certified, the Agency will provide the firm a written explanation of the reasons for the denial, specifically referencing the evidence in the record that supports each reason for the denial. All documents and other information on which the denial is based will be made available to the applicant fain upon request. When a firm is denied certification, it is required to wait at least twelve (12) months before it may reapply for DBE certification with the Agency. The time period for reapplication begins on the date the explanation for denial of certification is received by the applicant firm. E. Removal Procedures (Decertification) (Section 26.87) Ineli lg bili!y Com faints Any person may file with the Agency a written complaint alleging that a currently certified firm is ineligible and specify the alleged reasons why the firm is ineligible. The Agency is not required to accept a general allegation that a firm is ineligible or an anonymous complaint. The complaint shall include any information or arguments supporting the assertion that the firm is ineligible and should not continue to be certified. Confidentiality of complainants' identities will be protected. The Agency will review all records concerning the firm, any material provided by the firm and the complainant, and other available information. If the Agency determines, based on this review, that there is reasonable cause to believe the firm is ineligible, the Agency will provide written notice to the firm of its intention to find the firm ineligible with the reasons for the proposed determination. If the Agency determines such reasonable cause does not exist, the Agency Santa Clarita Redevelopment Agencv DBE Program 39 /3� will notify the complainant in writing of this finding and the reasons for it. All statements of reasons for findings on the issue of reasonable cause will specifically reference the evidence in the records on which each reason is based. 2. Agency -Initiated Proceedings Based on notification by the DBE firm of a change in its circumstances or other information that becomes available to the Agency, if the Agency determines there is reasonable cause to believe a currently certified firm is ineligible, the Agency will provide written notice to the firm of its intention to find the firm ineligible, setting forth the reasons for the proposed determination. The statement of reasons for the finding of reasonable cause will specifically reference the evidence in the record on which each reason is based. 3. U.S. DOT Directive to Initiate Proceeding If a U.S. DOT agency determines that information in the certification records, or other available information, establishes reasonable cause that a firm certified by the Agency does not meet eligibility criteria, the agency may direct the Agency to initiate a proceeding to remove the firm's certification. The agency must provide the Agency and the firm a notice setting forth reasons for the directive, including relevant documentation. The Agency will immediately commence and prosecute a proceeding to remove the eligibility of the firm. 4. Hearin When the Agency notifies a firm that there is cause to remove its eligibility as defined above, the Agency will provide the firm an opportunity for an informal hearing at which the firm may respond to the reasons for the proposal to remove eligibility in person and offer information and arguments concerning why it should remain certified. The hearing will be held before an independent RCRC Appeals Review Panel composed of representatives from agencies that did not make the eligibility decision. (See page 9 for discussion about the RCRC Appeals Review Panel.) In such proceeding, the Agency bears the burden of proving, by a preponderance of the evidence, that the firm does not meet the certification standards. The Agency will maintain a complete record of the hearing. If there is an appeal to U.S. DOT, the Agency will provide a transcript of the hearing to U.S. DOT and, upon Santa ClantaRedevelopment Agency DBE Program 40 request, to the firm. The Agency will retain the original record of the hearing. The DBE firm may elect to present information and arguments in writing without a hearing. In such event, the Agency bears the same burden of proving, by a preponderance of the evidence that the firm does not meet the certification standards. 5. Separation of Functions The Agency will ensure that the decision in a proceeding to remove a firm's eligibility is made by an office and personnel that did not take part in actions leading to or seeking to implement the proposal to remove the firm's eligibility and are not subject, with respect to the matter, to direction from the office or personnel who did take part in these actions. 6. Grounds for Decision The Agency will not base a decision to remove eligibility on a re- interpretation or changed opinion of information available to the Agency at the time of its certification of the firm. The Agency will base such decision only on one or more of the following: changes in the firm's circumstances since the certification, information or evidence not available at the time of certification, information that was concealed or misrepresented by the firm in previous certification actions, change in the certification standards or requirements of U.S. DOT since the firm was certified, or a documented finding that the Agency's determination to certify the firm was factually erroneous. 7. Notice of Decision The Agency will provide the firm written notice of the decision and the reasons for it, including specific references to the evidence in the record that supports each reason for the decision. The notice will inform the firm of the consequences of the Agency's decision and of the availability of an appeal to U.S. DOT. The Agency will send copies of the notice to the complainant in an ineligibility complaint or the concerned U.S. DOT agency that directed the Agency to initiate the proceeding. Santa Clanta Redevelopment Agency DBE Program 41 Status of Firm During Proceeding A firm remains an eligible DBE during the proceeding. The firm does not become. ineligible until the issuance of the notice provided for in Paragraph 7 above. Effects of Removal of Eli ig bility The Agency will take the following action upon removing a firm's eligibility: a. When a prime contractor has made a commitment to use the ineligible firm, or the Agency has made a commitment to use a DBE prime contractor (but a subcontract or contract has not been executed before issuance of the decertification notice), the ineligible firm does not count toward the contract goal or overall goal. The Agency will direct the prime contractor to meet the contract goal with an eligible DBE or to demonstrate that it has made a good faith effort to do so. b. If a prime contractor has executed a subcontract with the firm before notice of ineligibility, the prime may continue to use the firm on the contract and may continue to receive credit toward its DBE goal for the firm's work. When the Agency has let a prime contract to the DBE later ruled ineligible, the portion of the ineligible firm's performance of the contract remaining after issuance of the notice shall not count toward the overall goal but may count toward the contract goal. C. If the DBE's ineligibility is caused solely by its having exceeded the size standard during the performance of the contract, the Agency will continue to count its participation ori that contract toward overall and contract goals. F. Process for Certification Appeals to U.S. DOT (Section 26.89) A firm that has been denied certification, or whose eligibility is removed, may make an administrative appeal to the U.S. Department of Transportation. A complainant in an ineligibility complaint to the Agency may appeal to U.S. DOT if the Agency does not find reasonable cause to propose removing the firm's eligibility. All appeals will be sent to the U.S. Department of Santa Clarita Redevelopment Agency DBE Program 42 /3q Transportation, Office of Civil Rights, 400 Seventh Street, S.W., Room 2401, Washington, D.C. 20590. Pending the U.S. DOT decision, the Agency's decision remains in effect. If a firm wants to file an appeal, it must send a letter to U.S. DOT within ninety (90) days of the date of the Agency's final decision, including information concerning why the Agency's decision should be reversed. An appellant firm must submit a letter with the name and address of any other U.S. DOT grantee that currently certifies the firm, any other grantees that may have rejected an application for certification from the firm or removed the firm's eligibility within one year prior to the date of the appeal, and any other grantee with which an application for certification or action to remove eligibility is pending. A complainant in a third -party ineligibility complaint that appeals the Agency's decision to U.S. DOT will be requested by U.S. DOT to promptly provide all information requested. The Agency agrees to provide to U.S. DOT the complete, well -organized administrative record within twenty (20) days of its request. U.S. DOT will make its decision based solely on the entire administrative record without conducting a hearing. When the Agency provides information to U.S. DOT, the same information will be made available to the firm and to any third -party complainant involved. U.S. DOT will affirm the Agency's decision unless it determines, based on the entire administrative record, that the decision is not supported by substantial evidence or is inconsistent with the substantive or procedural provisions concerning certification. If U.S. DOT determines that the Agency's decision was unsupported, U.S. DOT will reverse the Agency's decision and will direct the Agency to certify the firm or to remove its eligibility. The Agency will take the action directed by U.S. DOT immediately upon receiving written notice. U.S. DOT is not required to reverse the Agency's decision if it determines a procedural error did not result in fundamental unfairness to the appellant or substantially prejudice the opportunity of the appellant to present its case. If it appears that the record is incomplete or unclear, U.S. DOT may remand the record to the Agency with instructionsseeking clarification or augmentation of the record before making a fording. U.S. DOT will not uphold the Agency's decision based on grounds not specified in the Agency's decision. U.S. DOT's decision will be based on the status and circumstances of the firm on the date of the decision which was appealed. U.S. DOT will provide written notice of its decision to the Agency, the firm, and the complainant in an ineligibility complaint. The notice will include the reasons for U.S: DOT's decision. It is U.S. DOT's policy to make a decision within one hundred eighty (180) days of Santa Clanta Redevelopment Agency DBE Program 43 / T v receiving the complete administrative record. All decisions by U.S. DOT are administratively final and are not subject to petitions for reconsideration. Actions Following U.S. DOT Decision (Section 26.91) The decisions of U.S. DOT are binding on the Agency. Such decisions are not binding, however, on other U.S. DOT grantees. The Agency will take the following actions after U.S. DOT decisions: a. If U.S. DOT determines that the Agency erroneously certified a firm, the Agency must remove the firm's eligibility on receipt of the determination without further proceedings. b. If U.S. DOT determines that the Agency erroneously failed to find reasonable cause to remove the firm's eligibility, the Agency will expeditiously commence a proceeding to determine whether the firm's eligibility should be removed. C. If U.S. DOT determines that the Agency erroneously declined to certify or remove eligibility of the firm, the Agency must certify the firm effective on the date of receipt of the written notice. d. If U.S. DOT determines that the Agency erroneously determined that the presumption of social and economic disadvantaged either should or should not be deemed rebutted, the Agency must take appropriate corrective action as determined by U.S. DOT. e. If U.S. DOT affirms the Agency's determination, no further action is necessary. f. Where U.S. DOT has upheld the Agency's denial of certification or removal of eligibility of a firm, or directed the removal of a firm's eligibility, other grantees with which the firm is certified may commence proceeding to remove the firm's eligibility. If the Agency receives information on a U.S. DOT decision of DBE eligibility or ineligibility, the Agency will take the U.S. DOT action into account in any certification action involving the firm. Santa Clarita Redevelopment Agency DBE Program 44 141 A. Bidders List (Section 26.11 (c)) The Agency will create and maintain a bidders list consisting of all firms bidding on prime contracts and bidding or quoting subcontracts on U.S. DOT - assisted projects. For every firm, the following information will be included: firm name, firm address, firm status as a DBE or non -DBE, the age of the firm, and the annual gross receipts of the firm. B. Monitoring Payments to DBEs (Section 26.37 (b)) The Agency will implement appropriate mechanisms to ensure that its prime contractors and subcontractors comply with DBE program regulatory requirements. The Agency will apply legal and contract remedies available under federal, state, and local law. The Agency will also include a monitoring and enforcement mechanism to verify that the work committed to DBEs at contract award is actually performed by the DBEs. This mechanism will provide for a running tally of actual DBE attainments and include a provision ensuring that DBE participation is credited toward overall or contract goals only when payments are actually made to DBE firms. C. Reporting to U.S. DOT (Section 26.11(b)) The Agency will continue to provide data about the DBE program to U.S. DOT, as required. A. Public Participation (Section 26.45 (g)) The Agency will provide for public participation in establishing an overall annualDBE goal which may include: consultation with minority, women's and general contractor groups, community organizations; and other officials or organizations that may have information concerning the availability of DBE and non -DBE firms; the effects of discrimination on DBE opportunities, and efforts to establish a level playing field for DBE participation. The Agency will publish a notice announcing proposed overall DBE goals, informing the public that the proposed goal and its rationale are available for inspection during normal business hours at the Agency's principal office for thirty (30) days following the date of the notice, and that the Agency and U.S. DOT will accept Santa Clarita Redevelopment Agency DBE Program 45 comments on such goals for forty-five (45) days from the date of the notice. The notice will include the Agency's address and will be published in general circulation media. B. Outreach Efforts (Section 26.51) The Agency will meet the maximum feasible portion of its overall DBE goal by using race -neutral efforts to facilitate DBE participation. Race -neutral efforts may include, but are not limited to, the following: Arranging solicitations, times for presentation of bids, quantities, specifications, and delivery schedules in ways that facilitate DBE and other small businesses; 2. Providing assistance in overcoming limitations such as inability to obtain bonding or financing; Providing technical assistance and other similar services; 4. Carrying out information and communications programs on contracting procedures and specific contract opportunities; Assisting in supportive service programs to develop and improve immediate and long-term business management, record keeping, and financial and accounting capability for DBEs and other small businesses; Assist DBEs and other small businesses improve long-term development, increase opportunities to participate in a variety of kinds of work, handle increasingly significant projects, and achieve eventual self-sufficiency; Participate in programs to assist new, start-up firms, particularly in fields in which DBE participation has been historically low; Facilitate distribution of the Agency's DBE data base through print and electronic means to the widest feasible universe of potential prime contractors; and 9. Assist DBEs and other small businesses to develop their capability to utilize emerging technology and conduct business through electronic media. Santa Clarita Redevelopment Agency DBE Program 46 / V-3 END OF PLAN Santa Clarita Redevelopment Agency DBE Program M /4 SANTA CLARITA REDEVELOPMENT AGENCY 1►l0A05l:hl:a ORIGINAL ISSUE I EFFECTIVE CURRENT ISSUE I EFFECTIVE SUPERSEDES RESPONSIBLE DEPARTMENT: Executive Director's Office "Ili Ill911-ti c5,4p jbLt.S puR_r_s4AS0N6 POLICY/PROCEDURE. SUBJECT Procurement Card Policy CATEGORY Procurement STANDARD MANAGEMENT PROCEDURE To safeguard the Agency's accounts and resources from possible theft or misuse. POLICY Appointing cardholders and approving officials Procurement cards may only be issued to regular employees. Procurement cardholders and approving officials will be approved by the department director or designee. The approving official will normally be the cardholder's supervisor. Exceptions to this policy will be approved by the Executive Director or designee. Safeguarding the Procurement Card Your procurement card should always be treated with great care, the same as your own personal credit card. The only person entitled to use the procurement card is the person whose name appears on the face of the card. Lost or Stolen Procurement Card It is very important that cardholders secure them properly. Failure to promptly report a lost, misplaced or stolen Cal Card could result in the Agency being held responsible for any charges incurred. Commodity Guidelines ❑ The procurement card is intended only for official Agency business as outlined in this manual. ❑ The card will not be used to circumvent purchasing procedures and purchases will not be split to circumvent the requirements of this manual or purchasing policy. [I The procurement card may not be used for personal use even if reimbursement is intended. ❑ " The procurement card will not be used for non -travel related meals unless authorized by the Executive Director or Department Director. Approving officials/supervisors should carefully scrutinize cardholder purchases of food, electronic items and any other item that may be easily convertible to personal use. PROHIBITED ITEMS The procurement card may not be used to purchase any of the following items unless approved by the Department Director on the procurement card request form: Airline tickets Alcoholic beverages LA #4815-4014-9573 v] ` Ammunition Art work Car washes* Cash Advancements Computer Hardware/Software or peripheral purchases except IT Manager (or his/her designee) Contractors, consultants, instructors or speakers Gift cards Ground transportation** Hotels, motels, or other lodging Medical services, drugs, narcotic drugs or medical supplies Service agreements Transit passes Tuition Reimbursements UPS registers *except Vehicle Maintenance **except Recreation Placing Orders With Your Procurement Card When involved in any aspect of purchasing, you are acting as an agent of the Santa Clarita Redevelopment Agency and you are responsible to act in the best interest of the Agency. Your actions must not show personal favoritism to a merchant at the expense of the Agency. Cardholders are required to properly document.all procurement actions. This includes, but is not limited to, recording all information on the transaction log and obtaining receipts for the items purchased. If a receipt is not offered you must request one. Repeated failures to obtain and forward receipts may result in loss of card privileges. There are three types of transaction limits: ❑ Dollars per transaction (or single purchase limit) - maximum limit is normally $1000.00 (unless a lower limit is requested). ❑ Monthly limit - limit set per card holder, at Department's discretion. This limit may be raised at the request of the Division Manager and the approval of the Department Director. ❑ Merchant classification limit. This limit determines the types of merchants at which your card may be used. Your merchant restrictions are determined at the time your procurement card request is submitted. You may contact the procurement card coordinator for further information. Merchant Shipments Procurement card orders must be shipped complete. If the merchant does not have all of the items in stock, order only what is immediately available. You may order the balance on a separate transaction later when the items are in stock. Documenting Transactions Proper documentation is one of your most important responsibilities. You are required to maintain the following records and documentation: ❑ Procurement Card Transaction Log ❑ Receipts from transactions Reconciling the Monthly Statement Procurement card holders are required to substantiate all transactions shown on their monthly billing statements, and edit the account code(s) for accurate cost accounting. Once the statement is received, you have approximately one (1) week to complete your verification (if you will be unavailable to complete the required review during this time, you are responsible for designating someone in your area to complete it in your absence. LA #4815-4074-9573 vl l The approving official is responsible for ensuring each purchase transaction is appropriate and approved for payment. Please forward the completed statement and all of the back up documentation to Accounts Payable for payment. Returns and Billing Errors Merchandise returns and billing errors are the cardholder's responsibility. Cardholders must communicate with merchants to process returns, correct billing errors, and ensure the proper credit has been issued. In most cases, returns and errors can be resolved directly between the cardholder and the merchant. Billing Disputes A dispute is the action taken by the cardholder to notify U.S. Bank that a specified charge(s) appearing on the monthly statement is (are) an unauthorized transaction(s). Extended Absence If you will be absent from the Agency for an extended period, please seek assistance from the Program Coordinator to determine the best options to cover your procurement card responsibilities. Changes If you change departments, contact the Program Coordinator to notify him/her of changes. Cards must be returned to the Program Coordinator. If you will need a card as part of your new responsibility, complete a new application and have it signed by your approving official. If your approving official changes, contact the program coordinator. Audits To ensure the continued success of the procurement card program, your account number will be open to internal audit requirements. Monthly review of your files may be conducted by the internal procurement card team. The procurement card program will also be included in the annual financial audit. Each audit will include a review of the program and assistant program coordinator's card usage as well as a sample of overall cardholders. Enforcement Statements Not Received — Contact the program coordinator if you do not receive a statement and have charged items on your card. Personal use of the Procurement Card - Personal use of the procurement card is NOT authorized under any circumstances. Resignation/Termination of Employment You must return your procurement card to the Program Coordinator when you resign/terminate your employment with the Santa Clarita Redevelopment Agency. Supervisors will collect the card as part of the employee check-out process and return. the cards to Purchasing. Reports There are information reports available to managers and approving officials. You are encouraged to contact the program coordinator about your specific needs. Timely Statement Submission The Agency earns rebates based on the timeliness of our payments. These payments can't be made until your statements have been reconciled and turned in to Accounts Payable for payment. Lengthy delays in submitting statements may result in the suspension of all cards under your approving official. LA #4815-4074-9573 v1 q7 PROCEDURES Appointing cardholders and approving officials To obtain a procurement card, please use the following procedure: Step Action Confirm with your supervisor they support your request for a procurement 1 card. Obtain a procurement card request form and review with your supervisor. Fill 2 in the transaction and monthly limits. Have the supervisor fill in their name 2 and the office limits if they aren't already an approving official. 3 Submit the form to your department director or designee for approval. Forward the approved form to the procurement card program coordinator. 4 Upon receipt of your card and training, sign and return your card 5 acknowledgment form (Appendix C.) Safeguarding the Procurement Card The following security measures should be taken to safeguard your procurement card: ❑ Do keep your procurement card in an accessible but secure location ❑ Do guard your procurement card account number carefully ❑ Do not post your procurement card account number at your desk or write it in any other place that is accessible to others ❑ Do not lend your procurement card to another person Lost or Stolen Procurement Card To report a lost or stolen procurement card, please use the following procedure: Step Action. Notify U. S. Bank immediately at (800) 344-5696. Representatives are 1 available 24 hrs/day, 7 days/week. Provide the representative with requested procurement card information and the card will be deactivated immediately Notify Agency's procurement card Program Coordinator. U. S. Bank will 2 provide the Program Coordinator with a replacement card typically within 5-7 days. Placing Orders With .Your Procurement Card The procurement card is a Visa card and can be used where Visa is accepted. The procurement card may be rejected if: ❑ You have exceeded your individual transaction dollar limit ❑ You have exceeded your monthly transaction dollar limit ❑ Your procurement card has been canceled, or reported lost or stolen ❑ Your procurement card is being used for a purchase at an unauthorized merchant type. LA #4815-4074-9573 v1 i�8 The procedure for placing orders with your procurement card is as follows: Step Action 1 Identify goods and services required to perform job-related task. 2 Determine if purchase is within your procurement card Authorization Limits 3 Ensure the items are not on the exception list (see page 5) 4 Obtain pricing, and record in log book (be sure to include tax and shipping). 5 Immediately record all other pertinent information in your procurement card log book. 6 Retain all receipts, packing lists and shipping documents in a safe place until you are ready to reconcile your monthly statement, as you will need to forward these with your reconciled monthly statement. Merchant Shipments Please use the following procedure for merchant shipments: Step Action 1 Order item(s) or request service(s) that are immediately available. Do not allow the merchant to make a partial shipment, backorder the balance, and charge you for the total quantity. 2 Request the merchant mail you a copy of the sales receipt for each shipment. 3 Give the merchant complete shipping instructions, including your name, and the shipping address (25650 Rye Canyon Rd, Santa Clarita, CA 91355-1103). 4 Request the merchant note on the outside of the package in bold letters "ATTN: "Your Name". This will ensure the package gets forwarded unopened, directly to you, and identified at the warehouse. 5 Inform the merchant they are NOT to write your procurement card Cal. Card number anywhere that will be visible to anyone other than yourself. 6 Upon receipt of goods and services ordered, file your receipt, packing list and shipping document in a safe place until you are ready to reconcile your monthly statement, as you will need to forward these with your reconciled monthly statement. Documenting Transactions The procurement card Transaction Log (see Appendix B) should be updated immediately each time you make a purchase. The transaction log contains the following "fields: ❑ Transaction/purchase date ❑ Receipt/Invoice # ❑ Description of purchase ❑ Merchant's name ❑ Account number ❑ Total Purchase Amount ❑ Notes Be sure to save all receipts and packing slips in the log book for statement reconciliation at the end of each month. LA #4815-4074-9573 v / �9 Reconciling the Monthly Statement Please use the following procedure to reconcile your procurement card transactions: Step Responsible Required Action Party fraudulent action. This means you have reason to believe 1 Cardholder Crosscheck statement with transaction log. Total procurement card transaction log and verify total 2 Cardholder matches statement. Sign and date procurement card transaction log. 2 Cardholder Attach all original receipts and packing slips to the statement (if original receipt is not available, a faxed copy of the original is acceptable). If a receipt is not available or 4 US Bank misplaced, you must justify in writing. Repeated missing receipts may result in a loss of card privileges. 3 Cardholder Forward original procurement card statement, receipts and transaction log to your approving official for signature. 4 Approving Review the cardholder's purchase transactions to make, Official sure the purchase was appropriate for Agency business and 6 Cardholder is approved for payment. Verify there is a receipt for each purchase transaction and sign the statement and transaction log. 5 Approving Forward signed procurement card statement with attached Official documentation to Accounts Payable for payment. If you've made a purchase for a fund your approving official can't approve, you must get the correct approver's initials for that purchase in the margin of the logsheet. Fraudulent Transactions If, during your statement reconciliation, you determine there are transactions that appear to be fraudulent, as opposed to merchant errors, there are additional actions to be taken. Please take the following actions: Step I Responsible I Required Action 1 Cardholder Confirm that the information supports a determination of fraudulent action. This means you have reason to believe your procurement card information is being used by another party to place unauthorized orders. 2 Cardholder Immediately notify Finance and the Program Coordinator in Purchasing of your findings. 3 Cardholder DO NOT fill out the Cardholder Statement of Questioned Item. Immediately call US Bank customer service at 800- 344-5696 to report the suspected fraud. 4 US Bank The US Bank representative will forward you to the fraud unit. Please make sure you note the fraud unit representative's name. The fraud unit will take steps to clear any fraudulent charges. 5 Cardholder Circle the fraudulent charge and write "fraud" next to the amount on your Statement of Account. 6 Cardholder Deduct the fraud charge from the amount authorized for 7 1 Cardholder I Forward the statement containing any fraudulent LA #4815-4074-9573 v1 ISb with notation to deduct the fraudulent charge, note the date reported to U.S. Bank, the name of the Customer Service representative, indicate the account has been closed and a new account was opened. 8 US Bank Upon notification of the suspected fraud, U. S. Bank will send an affidavit to the . Cardholder to certify the fraudulent charges. 9 Cardholder Upon receipt you must immediately sign and return the affidavit to U.S. Bank. 10 US Bank If the affidavit is not returned, U.S. Bank will reverse the credits issued for the fraudulent charges and the charges become due and pavable. Returns and Billing Errors Use the following procedure to handle returned items: Step Action 0 1 Contact the merchant that provided the item/service to discuss the problem and agree to a solution. (For billing errors not involving a return, skip to Step 5). 2 Request return instructions and/or obtain a Returned Materials Authorization (RMA) number from your merchant. 3 Package and ship product back to merchant. Put RMA number on inside and outside of package. 4 Obtain a mailing or shipping receipt for the package. This will be 4 needed in case the merchant does not process the credit promptly. 5 Verify that credit has been processed on the next monthly statement. Billing Disputes Because you, the cardholder, are the closest person to the transaction, you should resolve dispute issues first with the merchant. Typically, most issues can be handled at this level with the merchant placing a credit on your procurement card account. If unsuccessful at resolving the issues with the merchant, you may open a Customer Dispute using the following procedure: Step Action 1 When reconciling your monthly statement, dispute the charge in question on the statement, then complete the disputed item form (appendix Q. 2 Forward one copy of the form with your statement, fax or mail one copy to the address on the form and retain one copy for your records. 3 Call the merchant and attempt to resolve the problem. If you are unable to reach an agreement with the merchant contact the program coordinator. 4 The charge will not be paid by A/P. It is carried on the books until a credit is received from the merchant. The credit received is not processed by A/P. The program coordinator matches the credit to the charge on the overdue report. U. S. Bank Customer Service Representatives are available 7days/wk, 24hrs/day by calling (800) 344-5696 LA #4815-4074-9573 v] j (this number is also located on the back of your Cal Card). When calling U. S. Bank, it is necessary to identify the program that the Agency uses. If you have any problems working with U.S. Bank personnel, please contact the program coordinator. Leaving Agency Employment If you leave Agency employment your procurement card must be returned to Purchasing. Please use the following procedure: Step Responsible Required Action Party 1 Cardholder Turn in your procurement card to your supervisor prior to your last work day. 2 Supervisor Obtain employees procurement card prior to completing the supervisor portion of the employees check out form and turn card in to Purchasing. LA #4815-4074-9573 v 2 EXCEPTION Exceptions to this policy may be authorized by the Executive Director or designee. AUTHORITY By order of the Executive Director. Kenneth R. Pulskamp, Executive Director Attachments: Appendix A — Who to Call Appendix B — Procurement Card Logsheet Appendix C — Receipt of Procurement Card Memo LA #4815-4074-9573 v1 / `3 The Procurement Card Policy Appendik A Who To Call Santa Clarita Redevelopment Agency Procurement Card Program Coordinator Jon Bischetsrieder Tel.: (661) 286-4184 Fax: (661)286-4186 Email: jbischetsrieder(ei sat.>ta-cl.arita.com Assistant Procurement Card Program Coordinator Jennifer Killian Tel.: (661) 286-4193 Fax: (661) 286-4186 Email: jkillian2santa-clanta.com Billing Office Coordinator - Finance Aruna Patel Tel.: (661) 255-4377 Fax: (661)284-1435 Email: U. S. Bank Customer Service: (800) 344-5696 Lost/Stolen Card: (800) 344-5696 LA #4815-4074-9573 vl O W C P4 ^D U 7� ^W O W t CO O J ^ L U w+ C r.4 CO X U 0-0 L � V� 0 z A O �U) n E o a> (E i O O ^^7 E LL Q L 7 N 0-0 Q C � N E_ Z c(D 44 r �3 t4 I Fla co F 1 Did— MY t ...� O C O � � � § N �e� O N U 'o C � CL aD U O N > a� 0 �-N C -)a W= OW U� Q � aU) W U 5 m N C C LU Lio aQ W Z N �O J = OQ W fn H Q Z H LU a} vi a oQ ZZ a Q Uj Q' F— / Q W W a W w ~ J Z Q 5W� m W wQ0 m = LL w co �, a�0 �,��LL J aid ZN 0 0 W W 0 a �,/^LC VJ 1� U) LU W cnaD a U Q _ to LL 0 0 J0a J LL LL aW0 LLI _ LL LL L0 WO Z wow Vam W Q Q NWN LLQ a 'Z 0 J LL LL O Z_ 0 w a IL a W a Q W Q Z U' C0 w W Q J 0 Q a U 0) c1 CL i TO FROM: DATE: SANTA CLARITA REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM Jon Bischetsrieder, Purchasing Agent SUBJECT: RECEIPT OF PROCUREMENT CARD AND By signature below I acknowledge receipt of a Agency reference binder. I have read and understand the Pro be used for non -Agency purchases or cash advances., and is not to be used by anyone but myself. Signature am PROCUREMENT CARD POLICY irement card?and procurement card gent Card Policy The card is not to card is to be properly safeguarded Appendix C / Page 12 LA #4815-4074-9513 v 1 /-��v�y-inlG� �A-P--Ibu-S ��Gt,�LI-F.�:SInIG, t�oL�LtES SANTA CLARITA REDEVELOPMENT AGENCY NUMBER ORIGINAL ISSUE . I EFFECTIVE CURRENT ISSUE I EFFECTIVE SUPERSEDES RESPONSIBLE DEPARTMENT: ADMINISTRATIVE SERVICES IN, POLICY/PROCEDURE SUBJECT ENVIRONMENTALLY PREFERABLE PURCHASING PROGRAM CATEGORY: ADMINISTRATION STANDARD MANAGEMENT PROCEDURE The purpose is of this Standard Management Procedure is to establish the procedures to be followed for the purchasing of services, supplies, or equipment in the most sustainable manner. POLICY SUSTAINABLE SANTA CLARITA REDEVELOPMENT AGENCY ENVIRONMENTALLY PREFERABLE PURCHASING PROGRAM SECTION 1.0 - STATEMENT OF POLICY It is the policy of Santa Clarita Redevelopment Agency to: ❑ purchase products that minimize environmental impacts, toxins, pollution, and hazards to worker and community safety to the greatest extent practicable, ❑ institute practices that reduce waste and minimize environmental impacts whenever practicable and cost- effective by increasing product efficiency and effectiveness, but without reducing safety or workplace quality while promoting the fair treatment of all races, cultures and incomes with respect to this policy, ❑ purchase products that include recycled content, are durable and long-lasting, conserve energy and water, use agricultural fibers and residues, reduce greenhouse gas emissions, use unbleached or chlorine free manufacturing processes, -are lead-free and mercury -free, and use wood from sustainably harvested forests, ❑ adopt Environmentally Preferable Purchasing (EPP) processes in support of the Agency's Sustainability Plan, and ❑ encourage vendors, contractors and grantees to implement this program for all products and services provided to Santa Clarita Redevelopment Agency. SECTION 2.0 - PURPOSE This Program is adopted in order to: ❑ conserve natural resources, ❑ minimize environmental impacts such as pollution and use of water and energy, ❑ eliminate or reduce toxins that create hazards to workers and our community, /57 ❑ support strong recycling markets, ❑ reduce materials that are landfilled, ❑ identify environmentally preferable products and distribution systems, ❑ increase the use and availability of environmentally preferable products that protect the environment, ❑ reward manufacturers and vendors that reduce environmental impacts in their production and distribution systems, ❑ create a model for successfully purchasing environmentally preferable products that encourages other purchasers in our community to adopt similar goals. SECTION 3.0 - SPECIFICATIONS 3.1 Source Reduction 3. 1.1 Santa Clarita Redevelopment Agency shall institute practices that reduce waste and result in the purchase of fewer products whenever practicable and cost-effective, but without reducing safety or workplace quality, including but not limited to: ❑ electronic communication instead of printed media, ❑ double -sided photocopying and printing, ❑ washable and reusable dishes and utensils, ❑ rechargeable batteries, ❑ streamlining and computerizing forms, ❑ electronic and 'online" publishing via CD, Internet and intranet, ❑ "on -demand" printing of documents and reports as they are needed and where electronic publishing would be unsatisfactory, ❑ leasing long -life products when service agreements support maintenance and repair rather than new purchases, such as carpets, ❑ sharing equipment and occasional use items such as chippers, ❑ choosing durable products rather than disposable, ❑ reducing product weight or thickness when effectiveness is not jeopardized in products such as, but not limited to, paper and plastic liner bags, ❑ buying in bulk, when storage and operations exist to support it and balanced with the costs of inventory management, ❑ reusing products such as, but not limited to, file folders, storage boxes, office supplies, and furnishings 3.1.2 Santa Clarita Redevelopment Agency shall purchase remanufactured products such as laser toner cartridges, tires, furniture, equipment and automotive parts and fluids whenever practicable, but without reducing safety, quality or effectiveness. 3.1.3 Santa Clarita Redevelopment Agency shall require all equipment bought after the adoption of this program to be compatible with source reduction goals and practices when practicable, including but not limited to: ❑ copiers and printers capable of duplexing, ❑ battery-operated equipment capable of being recharged or using rechargeable batteries, ❑ dishwashing equipment, when washable and reusable dishes and utensils are practicable, ❑ bulk storage and operation. 3.1.4 All buyers shall evaluate short-term and long-term costs in comparing product alternatives, when feasible. This includes consideration of total costs expected during the time a product is owned, including, but not limited to, acquisition, extended warranties, operation, supplies, maintenance, disposal costs and expected lifetime compared to other alternatives. Examples of products for which such cost comparisons can indicate significant differences between short- and long-term costs include, but are not limited to, janitorial towels and tissues, parking stops, park benches and tables, office equipment, software and vehicles. 3.1.5 Products that are durable, long lasting, reusable or refillable are preferred whenever feasible. 3.2 Recycled Content Products 3.2.1 A significant element of reducing waste contributions to landfills is recycling. Recognizing the impact of government spending on stimulating the recycling industry, the State has imposed requirements on the procurement of recycled products by local agencies. The California Public Contract Code (PCC) Sections 22150- 22154 outline these requirements. The Agency will give preference to buying the recycled content products as outlined in the PCC whenever recycled products are available at the same or lesser cost and fitness and quality are equal. Also in accordance with the PCC, the Agency will require the vendor to certify the recycled content of the products being provided. 3.2.2 Agency staff shall strive to incorporate the requirements the U.S. EPA has established for various materials, such as those for construction, landscaping, parks and recreation, transportation, vehicles, miscellaneous, and non -paper office products. The programs are known as the Comprehensive Procurement Guidelines (CPG) and Recovered Materials Advisory Notice (RMAN). These programs are updated periodically to identify categories of material for which there are recycled content alternatives and the recommended recycled contents. 3.2.3 Janitorial paper products shall contain the highest postconsumer content practicable, but no less than the minimum recycled content standards established by the U.S. EPA Guidelines. 3.2.4 Printing paper, office paper, and paper products shall contain the highest postconsumer content practicable, but no less than the minimum recycled content standards established by the United States Environmental Protection Agency (U.S: EPA) Guidelines (see Definitions). 3.2.5 Copiers and printers bought shall be compatible with the use of recycled content products. When necessary, suppliers shall train equipment maintenance personnel in the appropriate use of recycled products with their equipment. 3.2.6 In accordance with California Public Contract Code, Sec. 10409, Santa Clarita Redevelopment Agency shall purchase recycled lubricating and industrial oil for use in its vehicles and other equipment, as long as it is certified by the American Petroleum Institute (API) as appropriate for use in such equipment (see http://aVi- ep.api.org/quality/index.cfm for information about API's Engine Oil Licensing and Certification System). 3.2.7 When specifying asphalt concrete, aggregate base or portland cement concrete for road construction projects, Santa Clarita Redevelopment Agency shall use recycled, reusable or reground materials when practicable, including, but not limited to, in-place recycling of asphalt concrete, aggregate base and portland cement concrete; rubberized asphalt concrete; recycled aggregate base; recycled fly ash content concrete or recycled asphalt concrete. 3.2.8 Santa Clarita Redevelopment Agency shall specify and purchase recycled -content transportation products, including signs, cones, parking stops, delineators, and barricades, including recycled products approved by the California Department of Transportation (Caltrans). 3.2:9 Santa Clarita Redevelopment Agency shall specify and purchase carpet with 100% total recycled PVC backing, solution dyed nylon face fiber and permanent or durable anti -microbial treatment. In addition, the Agency should aim for producer responsibility for accepting old carpet for recycling to ensure future needs for carpet replacement will include the recycling of old carpet. 3.3 Forest Conservation 3.3'.1 To the greatest extent practicable, Santa Clarita Redevelopment Agencyshall not procure wood products l Gq such as lumber and paper that originate from forests harvested in an environmentally unsustainable manner. When possible, Santa Clarita Redevelopment Agency shall.give preference to wood products that are certified to be sustainably harvested by a comprehensive, performance-based certification system, such as the Forest Stewardship Council. Further guidance may be found in the Santa Clarita Redevelopment Agency's Hardwood resolution. 3.4 Toxins and Pollution 3.4.1 When replacing vehicles, regular diesel shall be phased out and replaced with less polluting alternatives such as low sulfur or bio -diesel, gasoline, compressed natural gas, biobased fuels, hybrids, hydrogen fuel cells and electric batteries. 3.4.2. To the extent practicable, no cleaning or disinfecting products (i.e. for janitorial or automotive use) shall contain ingredients that are eye or skin irritants, neurotoxins, carcinogens, mutagens, or teratogens. These include chemicals listed by the U.S. EPA or the National Institute for Occupational Safety and Health on the Toxics Release Inventory and those listed under Proposition 65 by the California Office of Environmental Health Hazard Assessment. If products must be used that contain these toxic materials, ensure that only the minimum amounts are used and the product is disposed of properly (see Definitions). To the extent practicable, cleaning or disinfecting products should include biodegradability, be in concentrated form, be non -aerosol and have a recyclable container made of plastic numbers 1 or 2. 3.4.3 The use of chlorofluorocarbon -containing refrigerants, solvents and other products shall be phased out and new purchases shall not contain them. 3.4.4 All surfactants and detergents shall be readily biodegradable and, where practicable, shall not contain phosphates. 3.4.5 All interior paint shall contain the lowest concentrations practicable of volatile organic compounds (VOCs), but as a minimum shall not exceed 50 grams VOC per liter (50g/1) for flat paint and 150 grams per liter (150g/1) for non -flat paints, as determined in accordance with U.S. EPA Test Method 24, CFR Title 40, Part 60, Appendix A. For exterior paints, preference shall be given to paints containing at least 50 percent recycled content (post-industrial and postconsumer) and/or VOC concentrations less than 150g/1(U.S. EPA Test Method 24). All adhesives shall meet South Coast Air Quality Management District Rule 1168. 3.4.6 Santa Clarita Redevelopment Agency shall reduce or eliminate its use of products that contribute to the formation of dioxins and furans. This includes, but is not limited to: ❑ Purchasing paper, paper products, and janitorial paper products that are unbleached or that are processed without chlorine or chlorine derivatives, whenever possible. Processed chlorine free (PCF) paper is preferred. Elemental chlorine free (ECF) processes should include enhanced processes such as extended and oxygen delignification whenever possible. Vendors and successful bidders shall supply certification of the paper's chlorine free processing status from either a recognized certifying organization or the pulp and paper manufacturer. ❑ Prohibiting purchase of products that use polyvinyl chloride (PVC) such as, but not limited to, binders, flooring, and medical supplies whenever practicable. 3.4.7 Santa Clarita Redevelopment Agency shall purchase products and equipment with no lead or mercury whenever possible, including automotive vehicles, equipment and lighting. For products that contain lead or mercury, Santa Clarita Redevelopment Agency shall give preference to those products with lower quantities of these metals and to vendors with established lead and mercury recovery programs. 3.4.8 To facilitate the reprocessing of paper waste the Agency shall call for the use of soy/vegetable based inks for all printing. Graphics will continually monitor industry trends towards more environmentally friendly inks. 3.5 Energy and Water Savings 3.5.1 Where applicable, energy-efficient equipment shall be purchased with the most up-to-date energy efficiency functions. When necessary, suppliers or manufacturers shall train equipment operators and maintenance personnel in the proper enabling and use of energy efficient and sleep mode functions on their equipment. New and replacement equipment/fixtures will incorporate the requirements of this section. 3.5.2 When practicable, Santa Clarita Redevelopment Agency shall replace inefficient lighting with energy efficient equipment. Incandescent, mercury vapor and T12 fluorescent•lamps should be replaced with compact fluorescent lamps, high-intensity discharge (HID) fixtures and low -mercury T8 or T5 fluorescent lamps. The magnetic ballasts used in older fluorescent lighting should be replaced with electronic ballasts. New lighting should be designed to use no more than 85% of the power allowed by Title 24 Energy Code. Purchasers shall /(,.10 require vendors to recycle discarded lighting fixtures and lamps appropriately, with an emphasis on lowering mercury levels in energy efficient lighting. Staff will continue to investigate technologies that reduce the energy requirements of existing lighting such as sensors, timers and frequency regulators. 3.5.3 All appliances purchased by Santa Clarita Redevelopment Agency and for which the U. S. EPA Energy Star certification is available shall meet Energy Star certification. Typically, this would include motors/pumps, exhaust fans, water heaters, computers, exit signs, water coolers and appliances such as refrigerators, dishwashers and microwave ovens. 3.5.4 When Energy Star labels are not available, choose energy efficient products that are in the upper 25% of energy efficiency as designated by the Federal Energy Management Program. 3.5.5 Wherever Santa Clarita Redevelopment Agency replaces roofs, Energy Star -qualifying roof materials shall be used. 3.5.6 Santa Clarita Redevelopment Agency shall purchase high efficiency space heating systems that use natural gas rather than electricity, and have an annual fuel utilization efficiency (AFUE) of 0.86 or greater, whenever practicable 3.5.7 Santa Clarita Redevelopment Agency shall purchase high efficiency space -cooling equipment with an energy efficiency rating (EER) of 11.5 or greater, whenever practicable. 3.5.8 Santa Clarita Redevelopment Agency shall purchase water -saving products whenever practicable. 3.6 Green Building - Construction and Renovations 3.6.1 Proposals for project design will include fundamental building systems commissioning services (preferably independent of the design team) for independent review of plans and designs, participation in design charettes, to ensure building systems function as designed, to review outstanding commissioning issues within one year of project completion, and provide building operations/maintenance staff training and a building systems manual. 3.6.2 All building and renovations undertaken by Santa Clarita Redevelopment Agency shall follow Green Building practices for design, construction, and operation, as specified in the appropriate US Green Building Council Leadership in Energy and Environmental DesignTM (LEED) criteria. 3.6.3 All newly constructed Santa Clarita Redevelopment Agency -sponsored buildings shall incorporate sufficient green building methods and techniques to qualify for the equivalent of a LEEDTM Rating System Silver certification (see Definitions). 3.6.4 Renovation of Santa Clarita Redevelopment Agency -sponsored buildings shall achieve as many pre- requisites and credits as feasible as described in the LEEDTM Rating System for Existing Buildings Pilot Phase and any subsequent version adopted (see Definitions). 3.6.5 Santa Clarita Redevelopment Agency shall work with residents, businesses, and other members of the community, including architects, builders and contractors, to encourage private development within the Agency to use green building methods and practices and to achieve standards set by LEEDTM for commercial buildings and the in consultation with appropriate Agency departments. 3.7 Waste Minimization 3.7.1 Santa Clarita Redevelopment Agency requires vendors to eliminate packaging or use the minimum amount necessary for product protection, to the greatest extent practicable. 3.7.2 Packaging that is reusable, recyclable or compostable is preferred, when suitable uses and programs exist. 3.7.3 Vendors shall be encouraged to take back and reuse pallets and packaging materials. 3.7.4 Suppliers of electronic equipment, including but not limited to computers, monitors, printers, and copiers, shall be required to take back equipment for reuse or environmentally safe recycling when Santa Clarita Redevelopment Agency discards or replaces such equipment, whenever possible. 3.8 Landscaping 3.8.1 Workers and contractors providing landscaping services for Santa Clarita Redevelopment Agency shall employ sustainable landscape management practices whenever possible, including: ❑ The use of Integrated Pest Management (IPM), including minimal pesticide use is encouraged. ❑ Grasscycling (leaving the clippings on the lawn) or mulching mowers is required for at least 50% of all mowings. /6P/ ❑ Pruning shall be done on an as needed basis. Thinning is the preferred method of pruning. Minimal heading or shearing is encouraged. ❑ Fertilizing should be done on an as needed basis, as indicated by a soil analysis. Slow release and/or organic fertilizers are preferred. ❑ Irrigation scheduling based on weather (evapo-transpiration rates) is required whenever possible. Drip irrigation is preferred whenever practical. ❑ Turf areas where drip irrigation is not appropriate should be limited to walking and play surfaces. All other landscaping (such as for views) should be accomplished with low-water plantings. ❑ Recycling of plant debris by composting and/or maintaining a minimum 2 -inch layer of mulch under all trees, shrubs and groundcovers and a minimum 3 -inch layer in all open areas is strongly encouraged. Allowing leaf drop to become part of the mulch layer in tree, shrub and groundcover areas is preferred. 3.8.2 Plants should be selected to minimize waste by choosing species that are appropriate to the microclimate, species that can grow to their natural size in the space allotted them and perennials rather than annuals for color. Native and drought -tolerant plants that require no or minimal watering once established are preferred. 3.8.3 To the greatest extent practicable, Santa Clarita Redevelopment Agency shall not procure mulch products that originate from forest products. When possible, Santa Clarita Redevelopment Agency shall give preference to mulch products that are produced on-site or from regionally generated plant debris. 3.8.4 To the greatest extent practicable, Santa Clarita Redevelopment Agency shall procure compost that is produced from feedstock that includes at least 50%, by volume, regionally generated plant debris and/or food waste and less than 0.5% by volume, physical contaminants. The compost shall be processed in accordance with California Code of Regulations, Title 14, Chapter 3, Article 7, Sections 17868.2-3 to promote pathogen reduction and weed seed kill and minimize heavy metal concentrations. 3.8.5 Hardscapes and landscape structures constructed of recycled content materials are encouraged. Concrete substitutes are encouraged for walkways, such as rosin emulsion paving. 3.9 Agricultural Bio -Based Products 3.9.1 Vehicle fuels made from non -wood, plant -based contents such as vegetable oils are encouraged whenever practicable. 3.9.2 Paper, paper products and construction products made from non -wood, plant -based contents such as agricultural crops and residues are encouraged whenever practicable. 3.10 Electronics 3.10.1 As technology advances have brought about an exponential increase in the manufacture of electronic items, the impact of obsolescence caused waste has been significant. Changing technology has brought the life expectancy of some items down to as little as two years. Additionally, current electronics manufacture is resource intensive and involves some toxic materials such as heavy metals. A maximum preference of 5% of price or 5% of the total points possible may be awarded for vendor products meeting any of the criteria specified in 3.10.2 through 3.10.4. 3.10.2 Electronic equipment procurement policies shall seek to preserve resources by reducing the purchase frequency and pursuing upgrade opportunities to the extent feasible. Items containing more than 20% recycled material by content may qualify for a preference. 3.10.3 Acquisitions for electronic equipment should include "take back" provisions. Vendors shall be required to accept replaced equipment for recycling and proper disposal. Where possible, acquisitions shall require vendor to accept equipment back for recycling and proper disposal when it has reached the end of its useful life or is no longer working. 3.10.4 To assist in managing a rapidly changing technology, the Environmental Protection Agency (EPA) encouraged the development of a certification standard for sustainable electronic equipment, beginning with personal computers, under a grant to the Green Electronics Council. This program evolved into the Electronic Product Environmental Assessment Tool (EPEAT). In January of 2007 Executive Order 13423 required all federal agencies to purchase at 95% of all electronics from the EPEAT list of registered products unless there was no standard available for the equipment purchased. Recognizing that electronics is one of the fastest growing sources of hazardous waste, the Agency will purchase at least 95% of all electronic products from the list of ic,a EPEAT registered equipment where there exists an EPEAT standard. Further, the Agency will make at least 85% of its purchases from the Silver level tier or above. 3.10.5 Specifications for electronic equipment shall give preference to equipment manufactured with less toxic components or processes. 3.10.6 Upon installation, electronic equipment will have all energy management features activated as the default setting. SECTION 4.0 - DEFINITIONS "Agricultural Bio -Based Products" means commercial or industrial products (other than food or feed) that utilize agricultural crops or residues but does not include products made from forestry materials. "Buyer" means anyone authorized to purchase on behalf of this jurisdiction or its subdivisions. "Chlorine free" means products processed without chlorine or chlorine derivatives. "Contractor" means any person, group of persons, business, consultant, designing architect, association, partnership, corporation, supplier, vendor or other entity that has a contract with Santa Clarita Redevelopment Agency or serves in a subcontracting capacity with an entity having a contract with Santa Clarita Redevelopment Agency for the provision of goods or services. "Dioxins and furans" are a group of chemical compounds that are classified as persistent, bioaccumulative, and toxic by the Environmental Protection Agency. "Elemental Chlorine Free" (ECF) bleaching processes replace elemental chlorine gas with a chlorine derivative as the bleaching agent. There is a wide range of different bleaching sequences covered under this term. While all ECF processes significantly reduce the amount of dioxins created in the bleaching process, those that include enhanced processes such as extended and oxygen delignification achieve the greatest reduction. "Energy Star" means the U.S. EPA's energy efficiency product labeling program described at http://-,vww.energystai-.gov. "Energy Efficient Product" means a product that is in the upper 25% of energy efficiency for all similar products, or that is at least 10% more efficient than the minimum level that meets Federal standards. The "Forest Stewardship Council" is a global organization that certifies responsible, on -the -ground forest management according to rigorous standards developed by a broad variety of stakeholder groups (http://fscus.org/btml/). "LEED" Rating System" means the self -assessing system, Leadership in Energy and Environmental Design, developed by the U.S. Green Building Council designed for rating new and existing commercial, institutional, and high-rise residential buildings. Credits are earned for satisfying defined criteria and standards. Different levels of green building certification are awarded based on the total credits earned. The LEEDTm Green Building Rating System is described at htip://www.usgbc.org. "Postconsumer Material" means a finished material which would normally be disposed of as a solid waste, having reached its intended end-use and completed its life cycle as a consumer item, and does not include manufacturing or converting wastes. "Practical" and "Practicable" mean whenever possible and compatible with state and federal law, without reducing safety, quality, or effectiveness. "Preconsumer Material" means material or by-products generated after manufacture of a product is completed but before the product reaches the end-use consumer. Preconsumer material does not include mill and manufacturing trim, scrap, or broke which is generated at a manufacturing site and commonly reused on-site in the same or another manufacturing process. "Processed Chlorine Free (PCF)" refers to a recycled product in which the recycled content is produced using no chlorine or chlorine derivatives. Any virgin content in the product must also be produced in a chlorine free system. "Proposition 65" means a list of chemicals that are known to the State of California to cause cancer, birth defects or other reproductive harm. The list is maintained by the California Office of Environmental Health Hazard Assessment(1ittp://w�vNv.oehha.ca.gov/pLU65.1-itml). "Recovered Material" means fragments of products or finished products of a manufacturing process, which has converted a resource into a commodity of real economic value, and includes preconsumer and postconsumer material but does not include excess resources of the manufacturing process. ipJ "Recycled Content" means the percentage of recovered material, including preconsumer and postconsumer materials, in a product. "Recycled Content Standard" means the minimum level of recovered material and/or postconsumer material necessary for products to qualify as "recycled products." "Recycled Product" means a product that meets Santa Clarita Redevelopment Agency's recycled content policy objectives for postconsumer and recovered material. "Remanufactured Product" means any product diverted from the supply of discarded materials by refurbishing and marketing said product without substantial change to its original form. "Reused Product" means any product designed to be used many times for the same or other purposes without additional processing except for speck requirements such as cleaning, painting or minor repairs. "Source Reduction" refers to products that result in a net reduction in the generation of waste compared to their previous or alternate version and includes durable, reusable and remanufactured products; products with no, or reduced, toxic constituents; and products marketed with no, or reduced, packaging. "Title 24" means the State of California's energy efficiencystandards for residential and nonresidential buildings (Title 24, Part 6) maintained by the California Energy Commission and described at bttp://w\,vw.energy.ca.gov/title24. The "Toxics Release Inventory" (TRI) is a publicly available U. S. EPA database that contains information on toxic chemical releases and other waste management activities reported annually by certain covered industry groups as well as federal facilities. It includes chemicals that are classified as carcinogens under the requirements of the Occupation Safety and Health Administration (OSHA) Lists can be obtained from http://www.epa.gov/tri/chemical/index.htm. "U.S. EPA Guidelines" means the Comprehensive Procurement Guidelines established by the U.S. Environmental Protection Agency for federal agency purchases as of May 2002 and described at http://wuryv.el2a.gov/el2aoswer/non-hw/12rocure/products.htm, or as updated. "Water -Saving Products" are those that are in the upper 25% of water conservation for all similar products, or at least 10% more water -conserving than the minimum level that meets the Federal standards. SECTION 5.0 - PRIORITIES 5.1 The health and safety of workers and citizens is of utmost importance and takes precedence over all other policies. 5.2 The Santa Clarita Redevelopment Agency considers sustainability to be the foundation of lasting quality of life improvement programs. Environmentally Preferred Purchasing is a key step in leading the business community and residents towards that goal. 5.2 Santa Clarita Redevelopment Agency has made significant investments in developing a successful recycling system and recognizes that recycled content products are essential to the continuing viability of that recycling system and for the foundation of an environmentally sound production system. Therefore, to the greatest extent practicable, recycled content shall be included in products that also meet other specifications, such as chlorine free or bio -based. 5.3 Nothing contained in this program shall be construed as requiring a department or contractor to procure products that do not perform adequately for their intended use, exclude adequate competition, or are not available at a reasonable price in a reasonable period of time. 5.4 Nothing contained in this program shall be construed as requiring the Santa Clarita Redevelopment Agency, department or contractor to take any action that conflicts with state or federal requirements. SECTION 6.0 - IMPLEMENTATION 6.1 Environmental Services shall help departments implement this program through development of an advisory committee consisting of members representing Environmental Services, Purchasing, Information Technology, and each department. The team's responsibilities shall include, but are not limited to: ❑ evaluating opportunities for substituting environmentally preferable products, ❑ designing and implementing programs and processes for increasing the purchase of environmentally ❑ educating managers and staff about Santa Clarita Redevelopment Agency's Environmentally Preferable Purchasing Program, ❑ ensuring that purchasing documents, specifications, and contracting procedures do not contradict each other and do not deter or inhibit the purchase of environmentally preferable products, ❑ providing information to facilitate the evaluation and purchase of environmentally preferable products, including identifying appropriate products and sources and providing technical assistance, ❑ evaluating obstacles to purchasing such products in order to create solutions, and. ❑ tracking and recording progress in achieving successful results. 6.2 In compliance with State law, vendors shall be required to specify the minimum or actual percentage of recovered and postconsumer material in their products, even when such percentages are zero. 6.3 Vendors and successful bidders shall verify and report any environmentally preferable purchasing attributes in writing. This requirement for certification applies to products for which the vendor or successful bidder claims such attributes as apply to the product, including, but not limited to, recycled content, chlorine free, non-toxic, reduced toxicity, sustainable forestry, and energy-saving features. 6.4 Buyers making the selection shall provide a written explanation for not selecting product choices that meet the environmentally preferable purchasing criteria in this policy. Such written explanations shall be filed with the Purchasing Agent within 15 days of making the product choice (see Attachment for sample procurement determination form). 6.5 All contracts and grants providing services or products to the Santa Clarita Redevelopment Agency shall adhere to the guidelines stated in this program to the extent possible. SECTION 7.0 - PROGRAM EVALUATION AND MEASUREMENT 7.1 Environmental Services shall institute a system for tracking the purchases of environmentally preferable products. Whenever practicable, vendors will be required to provide reports on their sales of environmentally preferable products to assist Santa Clarita Redevelopment Agency in this tracking. 7.2 Each Department will report EPP procurements to'the Environmental Services Manager each quarter. The reports will identify the type of commodity purchased, the dollar value and the qualifying attributes of the commodity. 7.3 The Environmental Services Manager shall provide a narrative report annually to the Agency Board on the success of this policy's implementation. To the extent practicable, such report shall include information on the annual volume and dollar amount of environmentally preferable products purchased compared to the total amount of products purchased, within general product categories. When possible, reports shall include a narrative evaluation of the performance, safety, and environmental benefits achieved through use of the environmentally preferable products purchased. Reports should relate progress in meeting the objectives of this Policy as stated in Sections 1.0 and 2.0 and in accordance to the Specifications categories used in this Policy. This report will become one element of the Agency's Sustainability Program to be shared with the community. The report will also be included in quality of life evaluations. 7.4 Reports shall include notation of any barriers encountered in procurement of environmentally preferable products, recommendations for resolution, and/or description of assistance needed for overcoming the obstacles. SECTION 8.0 - EFFECTIVE DATES 8.1 This policy shall take effect on September 1, 2010. 8.2 The first annual report shall be issued within one year following the effective date of this policy. EXCEPTION to this policy may be authorized by the Agency Board. 5 EFFECTIVE DATE This policy will be implemented, effective September 1, 2010. AUTHORITY Adopted by the Agency Board on July 13, 2010. Kenneth R. Pulskamp, Executive Director Attachment ATTACHMENT A Sample Procurement Determination Form Item: This item is required to meet Environmentally Preferable Purchasing guidelines as described in Resolution XX -XX. I have considered the Environmentally Preferable Purchasing guidelines and searched for product or service options that meet them. Compliance with Resolution XX -XX was not attainable for this purchase because: Item is not available within a reasonable period of time. (Need date: Date available: ) Item fails to meet a performance standard in the specifications. Specifically, Item is not available, or is not available from 2 or more sources. Market research was performed by calling (insert number) vendors, but only (enter name) was able to supply the item. Item was only available at an unreasonable price (i.e., EPP item cost more than. non-compliant item). Price of EPP item: Price of non-compliant item: Compliance would conflict with state or federal law requiring that: Signature of Purchaser Printed Name of Purchaser Date / 6��p 459 A ,r�opT'��G ✓Ao�rou� �tarz.c.;K�s��lG, SANTA CLARITA REDEVELOPMENT AGENCY Standards of Conduct for Procurement Staff In recognition of the special trust inherent in Procurement Staff positions charged with guiding the expenditure of public funds, the highest standards of conduct are considered essential. These expectations are reflected in the Standards of Conduct established by this policy and are applicable to all city employees assigned to Purchasing under the supervision of the Purchasing Agent. The California Code of Regulations and State Government Code provide basic guidance regarding financial conflicts of interest. The intent of this policy is to supplement the financial conflict of interest regulations with broader standards of conduct and cover procurements involving federal funds. POLICY All conflict of interest regulations as stated in the California Code of Regulations and Government Code are considered an integral part of this policy. No part of this policy will alter or supersede any portion of the Agency or State guidance on conflict of interest. All requirements of this policy are additive to the Agency and State guidance. In order to prevent the perception of favoritism, all administrative processes will be followed diligently, consistently and openly. One of the primary responsibilities of public servants is the protection of public confidence and trust in the integrity of governmental processes. Any conduct which may detract from this trust is prohibited. The mere "appearance" of a conflict of interest may result in the same damage to public trust in government as actual wrongdoing. Action or inaction that results in the "appearance" of conduct prohibited by this policy is also prohibited. Financial interest — Financial interest will be the same as defined in the Statement of Economic Interest Form 700. Immediate family member — Parents, siblings, spouse or partner, parents and siblings of spouse or partner and children. Organizational conflict of interest — Organizational conflicts may result in bias or unfair competitive advantage. An organizational conflict of interest occurs where - because of other activities, financial interests, relationships, or contracts — an employee or contractor is unable, or potentially unable, to render impartial assistance or advice to the Agency; the employee or contractor's objectivity in performing work is or might be impaired; or a contractor has an unfair competitive advantage. 1 2 I - Generally, an organizational conflict arises because a person or entity has or appears to have loyalties to, or a financial interest in, two organizations that may have competing or differing interests from each other -- one of them being the grantee. For example, an organizational conflict would arise if an employee or a consultant serves as a member of a public or quasi -public body with regulatory authority over a project or has a stake in its outcome. This // 7 Personal conflict of interest - A personal conflict of interest arises when an'employee or immediate family member has a financial interest in a firm selected, or competing, for a contract. A personal conflict of interest also arises where any employee solicits or accepts gifts, gratuities, favors, or anything of monetary value from a firm under contract or potentially seeking a contract. In addition, a personal conflict of interest arises where any such person uses his position, or non-public information gained during his work for the Agency, for personal gain, including gain inuring to an immediate family member. Personal gain — includes gain inuring to immediate family members unless otherwise stated. Procurement staff — The Purchasing Agent and any employee under the supervision of the Purchasing Agent. STANDARDS OF CONDUCT Procurement staff will: A. Avoid the intent and appearance of unethical or compromising practice in relationships, actions, and communications. B. Avoid any personal business or professional activity that would create a conflict between personal interests and the interests of the employer. . C. Immediately report any potential conflicts of interest to their supervisor. D. Avoid soliciting or accepting money, loans, credits, or preferential discounts, and the acceptance of gifts, entertainment, favors, or services from present or potential suppliers that might influence, or appear to influence, procurement recommendations or decisions. E. Refrain from the use of Agency property or resources for personal advantage. F. Avoid inequitable treatment of vendors to include, favoritism, unnecessary use of brand names and organizational conflicts. G. Handle confidential or proprietary information with due care and proper consideration of ethical and legal ramifications and governmental regulations. PERCEIVED IMPROPRIETY Procurement staff will avoid the intent and appearance of unethical or compromising conduct in relationships, actions, and communications. The consequences of a perceived impropriety can be the same as consequences of an actual impropriety. Therefore, it is essential that any activity or involvement between Procurement staff and active or potential suppliers which in any way diminishes, or even appears to diminish, open and fair treatment of suppliers shall be strictly avoided. Those who do not understand the circumstances will judge based on appearances. Procurement staff must consider this and act accordingly. arises most often where architects sit on design review or zoning boards. 19 - Federal transit law requires grantees to award contracts through a process of full and open competition. Organizational conflicts of interest that .give any party an unfair competitive advantage impede full and open competition, and thus are considered "restrictive of competition" under Paragraph 8(a)(5) of FTA Circular 4220.1 E. i The following are recommended guidelines in dealing with perception: ❑ Situations may occur in which, through unanticipated circumstances, a business relationship transpires with a personal friend. The perception (as well as the potential) of a conflict of interest should be discussed with management, and a reassignment of procurement responsibility should be considered. ❑ Business meeting locations should be carefully chosen. Environments other than the office may be perceived as inappropriate by the business community or by co-workers. ❑ Displays of personal preference may give an impression of impropriety and,should be avoided. Conversation that delves excessively into personal affairs should be avoided. ❑ Positive action should be taken by management to alleviate suspicion of impropriety. This does not mean you or your immediate family can't have friends in the business community or even ones that do business with the Agency. What it does mean is that when they become involved with a purchase or contract, you must notify your supervisor. 2. CONFLICT OF INTEREST Avoid any personal business or professional activity that would create a conflict between personal interests and the interests of the employer. Procurement Staff must not use their positions in any way to induce another person to provide any benefit to themselves, or persons with whom they have family, business, personal, or financial relationships. Even though a conflict may not technically exist, staff must avoid the appearance of such a conflict. Whenever a potential conflict of interest arises, the employee should notify the appropriate supervisor for guidance or resolution. The following are recommended guidelines to avoid conflicts of interest: Conduct to be Avoided ❑ Engaging in outside business, or employment by an outside organization, which may encroach upon the supply professional's primary responsibility of loyalty to the goals of the Agency. ❑ Engaging in improper personal business with, or employment by, an organization which has or may conduct business with the Agency. Examples include but are not limited to: a) Owning or leasing any property with knowledge that the employer has an active or potential interest therein. b) Having a direct. or indirect interest in or relationship with a non-employee that is inherently unethical or that might be implied or construed to be unethical, or make possible personal gain due to the employee's ability to influence dealings; render the employee partial toward the outsider for personal reasons or otherwise inhibit the impartiality of the employee's business judgment; place the employee or the Agency in an ambiguous, embarrassing or ethically questionable position; or reflect on the integrity of the Agency. C) Taking personal advantage of an opportunity that properly belongs to the Agency or using Agency property or resources for personal gain. d) Using the Agency's name (unless authorized) to lend weight or prestige to sponsorship of a political party or cause, or endorsing the product or service of another organization. ❑ Taking personal advantage of an opportunity that properly belongs to the Agency or using Agency property or resources for personal gain. ❑ Willfully or unlawfully concealing, removing, mutilating, falsifying or destroying any government document or record, nor will he or she make any false or fictitious statements in connection with any official matter, document or record. Personal Investment Ownership of stock in a supplier or potential supplier of goods or services should be reported to the supervisor for review and guidance to avoid the potential for impropriety. Interests by members of the professional's immediate family are considered to be of the same significance as direct ownership. Outside Activities Procurement Staff must not use their position with their employer when participating in outside educational, professional, political, philanthropic, social, or recreational activities, which might be detrimental to their employer's business or reputation. 3. ISSUES OF INFLUENCE Avoid soliciting or accepting money, loans, credits, or preferential discounts, and the acceptance of gifts, entertainment, favors, or services from present or potential suppliers that might influence, or appear to influence, supply management decisions. Those in a position to influence the supply process must be dedicated to the best interests of the Agency. It is essential, for all in a position to influence a purchasing decision, to avoid any activity which may diminish, or even appear to diminish, the objectivity of the decision making process. In some circumstances, items which could be considered an issue of influence may be a bona fide business activity. In such cases, extreme care should be taken to evaluate the intent and the perception of acceptance of such an offer to ensure: ❑ It is legal. ❑ It is in the best interests of the Agency. ❑ It will not influence the purchasing decision. ❑ It will not be perceived by peers or others to be unethical. Sources of influence include: ❑ Management Policies ❑ Gifts, Gratuities, and Entertainment ❑ Product Samples ❑ Business Meals . ❑ Personal Relationships ❑ Political Considerations ❑ Advertising ❑ Specifications and Standards /U The following are recommended guidelines when dealing with issues of influence: Gifts, Gratuities, and Entertainment Gifts, gratuities, and entertainment include material goods, services, or activities offered with the intent of, or providing the potential for, influencing a buying decision. As such, these may be offered to a supply professional or to other persons involved in the procurement process (or members of their immediate families). They may be offered in various forms. ❑ Extreme caution must be used in evaluating the acceptance of gifts, gratuities, or entertainment, even if of nominal value, and the frequency of such actions (the collective impact) to ensure that one is abiding by the letter and the spirit of these guidelines. ❑ Soliciting gifts, gratuities, or entertainment in any form for yourself, other staff or the Agency is unacceptable. ❑ Avoid accepting monies, credits, and prejudicial discounts. ❑ Comply with the nominal value established by the Executive Director memo to address supplier offerings of nominal value as a gesture of goodwill, or for public relations purposes. ❑ Refuse gifts exceeding nominal value, and return them with a polite explanation, or if perishable, either return the gifts or donate them to a local charity in the name of the supplier. ❑ Seek direction of management if concerned that a business relationship maybe impaired by refusal of a gift, gratuity, or entertainment. Business Meals Occasionally, during the course of business, it may be appropriate to conduct business during meals. ❑ Such meals shall be for a specific business purpose. ❑ Frequent meals with the same supplier should be avoided. ❑ Procurement Staff must pay for their share of the meal expenses. Personal Relationships Personal relationships are an inherent aspect of supply management. Procurement staff interact extensively with suppliers' representatives. Individuals in many other functional areas in both the buying and supplying organizations also interact extensively with each other. The development of personal relationships from such interactions is both expected and desirable as it leads to relationships based on understanding and trust. It must also be recognized that the purchasing decision must not be influenced by anything other than what is in the best interest of the organization, and that personal relationships that develop beyond what is necessary to ensure understanding and trust may be inappropriate. It is important, therefore, for staff to closely monitor the nature of relationships with suppliers' representatives to ensure that personal friendships do not develop that would result in decisions not in the organization's best interest. Political Considerations All organizations are subject to internal and external forces and pressures. Internal forces and pressures result from an organization's culture. External forces and pressures consist of economic conditions, laws, regulations, public opinion, special interest groups, and political entities. The negative influence of internal and external forces and pressures on supply management can be minimized when the organization adopts practices based on ethical principles and standards. Advertising Care should be exercised when accepting promotional items or participating in activities which tend to promote one supplier over another, or could be perceived as favoritism for a supplier by staff. Procurement Staff will be sensitive to the appearance of numerous promotional items when meeting with representatives of other suppliers. Specifications and Standards Procurement Staff must ensure that specifications and standards are objectively written in a manner that encourages competition when appropriate, excludes unnecessary restrictive requirements, and appropriately defines quality. 4. CONFIDENTIAL AND PROPRIETARY INFORMATION Handle confidential or proprietary information with due care and proper consideration of ethical and legal ramifications and governmental regulations. Companies must appropriately mark as confidential only that information meeting the criteria. Proprietary and confidential information requires protection to the extent permitted by the state's Public Records Act. Such information may or may not be upheld by patent, copyright, or non- disclosure agreement. Proprietary and confidential information should be released to other staff only as necessary in the performance of their duties. It is the responsibility of the individual sharing confidential or proprietary information to ensure that the recipient understands his or her obligation to protect such information. Examples of information which may be considered confidential or proprietary include: ❑ Pricing ❑ Bid or quotation information ❑ Cost sheets ❑ Formulas and/or process information ❑ Design information ❑ Organizational plans, goals, and strategies ❑ Profit information ❑ Asset information ❑ Wage and salary scales ❑ Personal information about employees, officers, and directors ❑ Supply sources or supplier information ❑ Computer software programs 76';� Requests for confidential information will be referred to the Agency Secretary as a Public Records request. Such requests for confidential information will normally be reviewed by Agency Counsel. 5. SUPPLIER RELATIONSHIPS Fairness and impartiality should be extended to all legitimate business concerns. While it may be desirable to build long-term relationships with selected suppliers, such relationships should not eliminate opportunities for new suppliers or deter the potential of establishing similar working relationships with other suppliers. 6. RECIPROCITY Avoid improper reciprocal agreements. If Procurement Staff influences a supplier to be a customer, the professional or the organization is engaging in a practice known as reciprocity. These purchasing actions are illegal if they tend to restrict competition or trade or if they are coerced, since such acts may. be construed as "restraint of trade" in violation of Sections 1 and 2 of the Sherman Act. Procurement Staff must be able to recognize reciprocity and its ethical and legal implications. Reciprocity is both a legal and an ethical issue that may result in legal sanctions against the Agency,'its management, and/or its procurement staff. The following are recommended guidelines in.dealing with reciprocity: ❑ Procurement strategy must include a positive effort to oppose any corporate or organizational commitment to, or pursuit of, any form of improper reciprocity. ❑ Procurement staff should become sufficiently knowledgeable of the provisions in antitrust laws to recognize a potential legal problem and to know when to seek legal counsel. ❑ If a supply management professional believes the potential for improper reciprocity exists, or is being encouraged by marketing or management to engage in reciprocity, legal counsel should be sought. INFRACTIONS Failure to comply with *the standards of conduct may result in administrative action in accordance with the City's Human Resource policies and procedures. /7-5 ECIC/-�/C3/T PROCUREMENT PROCEDURES FOR FEDERALLY FUNDED CONTRACTS Redevelopment Agency of the City of Santa Clarita ; sA LA #4836-3698-4069 v1 1-7q- APPENDIX A Information Resources APPENDIX B Codification Location APPENDIX C Procurement Action Review Form APPENDIX D FTA Procurement Requirements Checklist LA #4836-3698-4069 v1 75 TABLE OF CONTENTS SECTION DESCRIPTION PAGE INTRODUCTION 1 SECTION 1 PURPOSE AND SCOPE 2 SECTION 2 PROCUREMENT PLANNING & ORGANIZATION 3 SECTION 3 SPECIFICATIONS 7 SECTION 4 METHODS OF SOLICITATION AND SELECTION 11 SECTION 5 AWARD OF CONTRACTS 22 SECTION 6 PROCUREMENT OBJECT TYPES: SPECIAL CONSIDERATIONS 26 SECTION 7 DISADVANTAGED BUSINESS ENTERPRISE 27 SECTION 8 CONTRACT CLAUSES 29 SECTION 9 CONTRACT ADMINISTRATION 32 SECTION 10 CLOSE-OUT 37 SECTION 11 DISPUTES 38 SECTION 12 DISPOSITION 40 APPENDIX A Information Resources APPENDIX B Codification Location APPENDIX C Procurement Action Review Form APPENDIX D FTA Procurement Requirements Checklist LA #4836-3698-4069 v1 75 Santa Clarita Redevelopment Agency Procurement Procedures for Federally Funded Contracts INTRODUCTION The Santa Clarita Redevelopment Agency has prepared "Procurement Procedures for Federally Funded Contracts" to ensure compliance with federal regulations. These procedures set forth the requirements that the Agency must adhere to in the solicitation, award and administration of its third party contracts which are assisted with federal grant funds. The requirements are based upon the common grant rules, Federal statutes, Executive orders and their implementing regulations, and granting agency regulations. As a result of the detailed requirements for Department of Transportation funded- procurements, particularly those of the Federal Transit Administration, additional direction must be sought from FTA Circular 4220.1F; FTA Circular 5010.113; the FTA Master Agreement; and the FTA "Best Practices Procurement Manual." On a practical level, these procedures are intended to supplement Agency policies to ensure compliance with granting agency requirements. Agency staff will use Agency procurement procedures for all procurements to the extent they are more stringent than applicable Federal law and the standards identified in this policy. Where this policy contains guidance not covered in Agency policy or is stricter, the guidance in this policy will be followed. This policy is also intended to maintain a contract administration system that ensures that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders, and in accordance with Federal requirements. Proniremem Procedures For Federally Funded Contracts LA #4836-36984069 v1 7 6 SECTION 1 PURPOSE AND SCOPE I. SCOPE This section describes the intent and purpose of the procedures which follow. II. GENERAL These procedures set forth the terms and conditions that govern the administration of a contract or program of projects supported with Federal financial assistance awarded by a federal department of agency through a Grant Agreement or Cooperative Agreement with the Agency. It is understood by the awarding agency and the Agency that not every term and condition in these procedures will apply to every project for which the awarding agency enters into a Grant Agreement or Cooperative Agreement. The nature of the project and the section of the statute under which the project is financed will determine which terms and conditions of these procedures will apply. Furthermore, these procedures are to be used in conjunction with the Agency's Purchasing Policy. Prior to submitting a grant application and/or executing a related contract, Agency staff will review the procedures covered under Appendix A and any guidance codified in the Code of Federal Regulations. III. PROCEDURES A. Agency staff is encouraged to enter into State and local intergovernmental agreements for procurement or use of common goods and services to foster greater economy and efficiency. B. Agency staff will review proposed procurements to avoid purchase of unnecessary or duplicative items. Consideration should be given to consolidating or breaking out procurements to obtain a more economical purchase. Where appropriate, an analysis will be made of lease versus purchase alternatives, and any other appropriate analysis to determine the most economical approach. C. Agency staff is encouraged to use Federal excess and surplus property in lieu of purchasing new equipment and property whenever such use is feasible and reduces project costs. Proczrremen' Procedures For Federally Funded Contracts 2 LA #4836-3698-4069 v1 /-7-7 -7 SECTION 2 PROCUREMENT PLANNING & ORGANIZATION I. SCOPE This section covers procedures involving planning and organization of the procurement function. II. PROCEDURES A. The Agency shall maintain file documentation sufficient to ensure compliance with audit requirements. B. All procurement transactions will be conducted in a manner providing full and open competition. Some of the situations considered to be restrictive of competition include but are not limited to: (i) Placing unreasonable requirements on firms in order for them to qualify to do business,' (ii) Requiring unnecessary experience and excessive bonding, (iii) Noncompetitive pricing practices between firms or between affiliated companies, (iv) Noncompetitive awards to consultants that are on retainer contracts, (v) Organizational conflicts of interest, (vi) Specifying only a "brand name" product instead of allowing "an equal" product to be offered and describing the performance of other relevant requirements of the procurement, and (vii) Any arbitrary action in the procurement process. C. The Agency will maintain a written code of standards of conduct governing the performance of their employees engaged in the award and administration of contracts and the prevention of conflicts of interest. No employee, officer or agent of the Agency shall participate in selection, or in the award or administration of a contract supported by Federal funds if a conflict of interest, real or apparent, would be involved. Such a conflict would arise when: (i) The employee, officer or agent, (ii) Any member of his immediate family, (iii) His or her partner, or (iv) An organization which employs, or is about to employ, any of the above, has a financial or other interest in the firm selected for award. The Agency's or Proa—ment Procedures For Federally Funded Contracts LA #4836-3698-4069 v1 subgrantee's officers, employees or agents will neither solicit nor accept gratuities, favors or anything of monetary value from contractors, potential contractors, or parties to subagreements. Agency and subgrantees may set minimum rules where the financial interest is not substantial or the gift is an unsolicited item of nominal intrinsic value. To the extent permitted by State or local law or regulations, such standards or conduct will provide for penalties, sanctions, or other disciplinary actions for violations of such standards by the Agency's and subgrantee's officers, employees, or agents, or by contractors or their agents. The awarding agency may in regulation provide additional prohibitions relative to real, apparent, or potential conflicts of interest. The standards of conduct will also identify and prohibit real or apparent organizational conflicts of interest. An organizational conflict of interest exists when the nature of the work to be performed under a proposed third party contract or sub - agreement may, without some restrictions on future activities, result in an unfair competitive advantage to the third party contractor or sub -recipient or impair its objectivity in performing the contract work. D. The Agency will conduct procurements in a manner that prohibits the use of statutorily or administratively imposed in -State or local geographical preferences in the evaluation of bids or proposals, except in those cases where applicable Federal statutes expressly mandate or encourage geographic preference. Nothing in this section preempts State licensing laws. When contracting for architectural and engineering (A/E) services, geographic location may be a selection criteria provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract. E. The Agency will ensure that all prequalified lists of persons, firms, or products which are used in acquiring goods and services are current and include enough qualified sources to ensure maximum open and free competition. Also, the Agency will not preclude potential bidders from qualifying during the solicitation period. F. The Agency will use time and material type contracts only -- (1) After a determination that no other contract is suitable, and (ii) If the contract includes a ceiling price that the contractor exceeds at its own risk. G. The cost plus a percentage of cost and percentage of construction cost methods of contracting shall not be used. H. Costs or prices based on estimated costs for contracts under grants must be consistent with Federal cost principles. Procurement Procedures For Federally Funded Contracts 4 LA #4836-36984069 v1 /79 I. Payment Provisions. Local agencies may use its own funds to finance its contracts. However, if local agencies intend to use federal assistance, expects to be reimbursed with federal assistance, or dedicates its local share funds to support contract costs it has financed, then they must structure its payment provisions carefully. (i) Advance Payments. Advance payments are payments made to a contractor before the contractor incurs contract costs. The Agency may use its local share funds for advance payments. However, if there is no automatic preaward authority for its project, then advance payments made with local share funds before federal assistance has been awarded, or before a letter of no prejudice has been issued or other preaward authority has been provided, or before federal approval for the specific advance payment has been obtained, are ineligible for reimbursement. The following principles and restrictions apply: (a) Use of Federal Assistance Prohibited. The recipient may not use federal assistance to make payments to a third party contractor before the contractor has incurred the costs for which the payments would be attributable. (b) Exceptions for Sound Business Reasons. Apart from advance payments that are customary, as discussed further, awarding agencies do occasionally make exceptions to its advance payment prohibitions, if local agencies can provide sound business reasons for doing so and has obtained the awarding agency's advance written concurrence. A local agency that seeks to use federal assistance to support advance payments should contact the regional office administering its project to obtain the awarding agency's concurrence. 1 Adequate Security for Advance Payments. Awarding agencies recognize that advance payments may be needed for certain costs supported by sound business judgment. Adequate security for the advance payment is an essential pre -condition to the awarding agency's concurrence in the use of federal or local share funds. 2 Customary Advance Payments. Awarding agencies recognize that advance payments are typically required for, but are not limited to, public utility connections and services, rent, tuition, insurance premiums, subscriptions to publications, software licenses, construction mobilization costs, transportation, hotel reservations, and conference and convention registrations. Accordingly, the Agency may use Procurement Proce&tres For Federally Funded Contraets CJ LA #4836-3698-4069 V1' 9v federal assistance to support or reimburse the costs of such acquisitions. Awarding agency concurrence is required only when such advance payment or payments customarily required in the marketplace exceed $100,000. In summary, if there are sound business reasons justifying the advance payment and adequate security for the payment, awarding. agencies will generally concur in a written request for an exception. (ii) Progress Payments. Progress payments are payments for contract work that has not been completed. The Agency may use federal assistance to support progress payments provided the recipient obtains adequate security for those payments and has sufficient written documentation to substantiate the work for which payment is requested. (a) Adequate Security for Progress Payments. Adequate payments are payments for contract work that has not been completed. The Agency may use federal assistance to support progress payments provided the Agency obtains adequate security for those payments and has sufficient written documentation to substantiate the work for which payment is requested. (b) Adequate Documentation. Sufficient documentation is required to demonstrate completion of the amount of work for which progress payments are made. Procurement Procedures For Federallv Funded Contracts 6 LA #4836-3698-4069 v1 /g/ SECTION 3 SPECIFICA TIONS I. SCOPE This section describes specific procedures required by federal regulations dealing with specifications. II. PROCEDURES A. The federal regulations require that each solicitation provide the following information: (i) The solicitation and the contract awarded thereunder must include a clear and accurate description of the Agency's technical requirements for the property or services to be acquired in a manner that provides for full and open competition. (a) The description may include a statement of the qualitative nature of the property or services to be acquired. When practicable, the Agency should describe its requirements in terms of functions to be performed or level of performance required, including the range of acceptable characteristics or minimum acceptable standards. The federal regulations for governmental recipients states that "Detailed product specifications should be avoided if at all possible." Federal grant regulations express a preference for performance or functional specifications, but do not prohibit the use of detailed technical specifications when appropriate. (b) Awarding agencies limit Federal assistance to the amount necessary to support the quantity of property or extent of services the local agencies actually needs at the time of acquisition. The Agency may not add quantities or options to contracts solely to allow them to assign these quantities or options at a later date. Awarding agencies will not knowingly support .the additional cost of contract rights to property or services excess to the Agency's immediate needs, even though the Agency may assign its excess contract rights to others. (c) When it is impractical or uneconomical to provide a clear and accurate description of the technical requirements of the property to be acquired, a "brand name or equal" description may be used to define the performance or other salient characteristics of a specific type of property. Agency staff must identify the salient characteristics of the named brand that offerors must provide. When using a "brand name" specification, Agency staff do not need Proarrement Procedures For Federally Funded Contracts 7 LA #4836-3698-4069 v1 0 to reverse -engineer a complicated part to identify precise measurements or specifications in order to describe its salient characteristics. FTA's "Best Practices Procurement Manual," (BPPM) contains additional information on preparation of specifications including examples with specific language. (d) Federal grant regulations prohibit solicitation requirements that contain features that unduly restrict competition. Local agencies may also be prohibited by 49 U.S.C. Section 5325(h) from using federal assistance to support an exclusionary or discriminatory specification. Some situations considered to be restrictive of competition include, but are not limited to, the following, all of which are identified in federal grant regulations: 1 Imposing unreasonable business requirements for bidders or offerors. 2 Imposing unnecessary experience requirements for bidders and offerors. 3 Using prequalification procedures that conflict with the prequalification standards described in Section 2.111.E of this policy. 4 Making a noncompetitive award to any person or firm on a retainer contract with the Agency if that award is not for the property or services specified for delivery under the retainer contract. 5 Awarding agencies discourage unnecessary bonding because it increases the cost of the contract and restricts competition, particularly by disadvantaged business enterprises. Bond companies . exercise their discretion and assure their profits primarily by declining to undertake excessive risks. Consequently many bidders have limited "bonding capacity." Unnecessary performance bonding requirements reduce a prospective bidder's or offeror's capability to bid or offer a proposal on bonded work. Small .businesses with short histories may have particular difficulty obtaining bonds as may be specified. Nevertheless, even though bonding can be expensive, awarding agencies recognize that local agencies might find bid, performance, or payment bonds to be desirable. Because bonding requirements can limit contractor participation, awarding agencies expect the Agency's bonding requirements to be reasonable and not unduly restrictive. Awarding agencies, however, will not challenge State or local bonding requirements as unreasonably restrictive of competition, even though they might exceed Federal requirements. Nevertheless, if the Agency's bonding policies result in such Proatrement Procedures For Federally Funded Contracts O LA #4836-3698-4069 v1 O "excessive bonding" that it would violate the federal grant regulations as restrictive of competition; awarding agencies will not provide Federal assistance for those procurements. Thus if the Agency's bonding policies far exceed those described in this subparagraph or are permissible under State or local law, the recipient should obtain the awarding agency's written concurrence to ensure the availability of Federal assistance for the project. 6 Specifying only a "brand name" product without allowing offers of "an equal" product, or allowing "an equal" product without listing the salient characteristics that the "equal" product must meet to be acceptable for award. 7 Specifying in -State or local geographical preferences, or evaluating bids or proposals in light of in -State or local geographic preferences, even if those preferences are imposed by State or local laws or regulations. In particular, 49 U.S.C. Section 5325(1) prohibits a FTA recipient from limiting its bus purchases to in -State dealers. Exceptions expressly mandated or encouraged by Federal law include the following: a Geographic location may be a selection criterion if an appropriate number of qualified firms are eligible to compete for the contract in view of the nature and size of the project. b A State may enforce its licensing requirements, provided that those State requirements do not conflict with Federal law. c Federal assistance awarded under the Stafford Act, 42 U.S.C. Section 5150, to support contracts and agreements for debris clearance, distribution of supplies, reconstruction, and other major disaster or emergency assistance activities permits a preference, to the extent feasible and practicable, for organizations, firms, and individuals residing or doing business primarily in the area affected by a major disaster or emergency. 8 Engaging in practices that result in organizational conflicts of interest as prohibited by the federal grant regulations. An organizational conflict of interest occurs when any of the following circumstances arise: a When the contractor is unable, or potentially unable, to provide impartial and objective assistance or advice to the Agency due to other activities, relationships, contracts, or circumstances. Proutremew Procedures For Federally Funded Contracts 9 LA #4836-3698-4069 v1 b The contractor has an unfair competitive advantage through obtaining access to nonpublic information during the performance of an earlier contract. c During the conduct of an earlier procurement, the contractor has established the ground rules fora future procurement by developing specifications, evaluation factors, or similar documents. Awarding agencies expect the Agency to analyze each planned acquisition in order to identify and evaluate potential organizational conflicts of interest as early in the acquisition process as possible, and avoid, neutralize, or mitigate potential conflicts before contract award. 9 Supporting or acquiescing in noncompetitive pricing practices between firms or between affiliated companies. Questionable practices would include, but not be limited to submissions of identical bid prices for the same products by the same group of firms, or an unnatural pattern of awards that had the cumulative effect of apportioning work among a fixed group of bidders_ or offerors. 10 Taking any arbitrary action in the procurement process. (ii) The solicitation must identify all factors to be used in evaluating bids or proposals. Prot --t Procedures For Federally Funded Contracts 10 LA #4836-3698-4069 v1 lg5_ SECTION 4 METHODS OF SOLICITATION AND SELECTION I. SCOPE This section describes specific solicitation procedures required by federal regulations. II. GENERAL The Agency shall conduct federally -assisted procurements in a manner that prohibits the use of statutorily or administratively imposed in -State or local geographical preferences in the evaluation of bids or proposals, except in those cases where applicable Federal statutes expressly mandate or encourage geographic preference. This does not preempt the State licensing laws. However, geographic location may be a selection criterion in procurements for architectural and engineering (A&E) services provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract. Please note that references to Buy America deal with DOT funded requirements. For information on Buy American Act requirements please see Section 8. A. Micro -Purchases. Consistent with the Federal Acquisition Regulation (FAR), micro - purchases are those purchases of $3,000 or less. (1) When Appropriate. If permitted by State and local law, the recipient may acquire property and services valued at $3,000 or less without obtaining competitive quotations. These purchases are exempt from Buy America requirements. Davis - Bacon prevailing wage requirements, however, will apply to construction contracts exceeding $2,000, even though the recipient uses micro -purchase procurement procedures. (ii) Procedures. The following procedures apply to micro -purchases: (a) Competition. Agency staff should distribute micro -purchases equitably among qualified suppliers. (b) Prohibited Divisions. Agency staff may not divide or reduce the size of its procurement merely to come within. the micro -purchase limit. (c) Documentation. The -only documentation requirement for micro -purchases is a determination that the price is fair and reasonable and a description of how the recipient made its determination. Procurement Procedures For Federally Fuuded Contracts LA #4836-36984069 v1 1 /9& B. Small Purchases. Federal regulations authorizes governmental recipients to use relatively simple and informal small purchase procedures as follows: (i) When Appropriate. Small purchase procedures may be used to acquire services, supplies, or other property valued at more than the micro -purchase threshold (currently, $3,000) but less than the Federal simplified acquisition threshold at 41 U.S.C. Section 403(l 1) (currently $100,000). These purchases are also exempt from Buy America requirements. (ii) Procedures. When using small purchase procedures: (a) Competition. Agency staff must obtain price or rate quotations from an adequate number of qualified sources. (b) Prohibited Divisions. Agency staff may not divide or reduce the size of its procurement to avoid the additional procurement requirements applicable to larger acquisitions. C. Sealed Bids (Formal Advertising). Federal regulations acknowledge sealed bidding to be a generally accepted procurement method in which bids are publicly solicited, and a firm fixed price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming to all the material terms and conditions of the invitation for bids, is lowest in price. (i) When Appropriate. Federal regulations state a preference for the sealed bids procurement method for acquiring property, construction, and other services. Procurement using sealed bids is appropriate if- (a) i (a) Precise Specifications. A complete, adequate, precise, and realistic specification or purchase description is available. (b) Adequate Sources. Two or more responsible bidders are willing and able to compete effectively for the business. (c) Fixed Price Contract. The procurement generally lends itself to a firm fixed price contract. (d) Price Determinative. The successful bidder can be selected on the basis of price and those price -related factors listed in the solicitation including, but not limited to, transportation costs, life cycle costs, and discounts expected to be taken. Apart from responsibility determinations discussed in later sections of Proao-ement Procedures For Federally Funded Contracts 12 LA #4836-3698-4069 v1 this Chapter, contractor selection may not be determined on the basis of other factors whose costs cannot be measured at the time of award. (e) Discussions Unnecessary. Discussions with one or more bidders after bids have been submitted are expected to be unnecessary as award of the contract will be made based on price and price -related factors alone. This contrasts with Competitive Proposal procedures in which discussions with individual offerors are expected to be necessary and may take place at any time after receipt of proposals. However, a pre-bid conference with prospective bidders before bids have been received can be useful. (ii) Procurement Procedures. The following procedures apply to sealed bid procurements: (a) Publicity. The invitation for bids is publicly advertised. (b) Adequate Sources. Bids are solicited from an adequate number of known suppliers. (c) Adequate Specifications. The invitation for bids, including any specifications and pertinent attachments, describes the property or services sought in sufficient detail that a prospective bidder will be able to submit a proper bid. (d) Sufficient Time. Bidders are allowed sufficient time to prepare bids before the date of bid opening. (e) Public Opening. All bids are publicly opened at the time and place prescribed in the invitation for bids. (f) Fixed Price Contract. A firm fixed price contract is usually awarded in writing to the lowest responsive and responsible bidder, but a fixed price incentive contract or inclusion of an economic price adjustment provision can sometimes be appropriate. When specified in the bidding documents, factors such as transportation costs and life cycle costs affect the determination of the lowest bid; payment discounts are used to determine the low bid only when prior experience indicates that such discounts are typically taken. (g) Rejection of Bids. Any or all bids may be rejected if there is a sound, documented business reason. D. Competitive Proposals (Request for Proposals). Federal regulations acknowledge the use of competitive proposals to be a generally accepted procurement method when the nature Proc-enl Procedures For Federally Funded Contracts 13 LA #4836-3698-4069 v1 139 of the procurement does not lend itself to sealed bidding and the recipient expects that more than one source will be willing and able to submit an offer or proposal. (i) When Appropriate. Competitive proposals should be used when any of the following circumstances are present: (a) Type of Specifications. The property or services to be acquired are described in a performance or functional specification; or if described in detailed technical specifications, other circumstances such as the need for discussions or the importance of basing contract award on factors other than price alone are present. (b) Uncertain Number of Sources. Uncertainty about whether more than one bid will be submitted in response to an invitation for bids and the recipient lacks. the authority or flexibility under State or local law to negotiate the contract price if it receives only a single bid. (c) Price Alone Not Determinative. Due to the nature of the procurement, contract award need not be'based exclusively on price or price -related factors. In different types of negotiated acquisitions, the relative importance of cost or price may vary. When the recipient's material requirements are clearly definable and the risk of unsuccessful contract performance is minimal, cost or price may play a dominant role in source selection. The less definitive the requirements, the more development work required, or the greater the performance risk, the more technical or past performance considerations may play a dominant role in source selection and supersede low price. (d) Discussions Expected. Separate discussions with individual offeror(s) are expected to be necessary after they have submitted their proposals. This contrasts with Formal Advertising procedures in which discussions with individual bidders are not likely to be necessary, as award, of the contract will be made based on price and price -related factors alone. (ii) Procurement Procedures. The following procedures apply to procurements by competitive proposals: (a) Publicity. The request for proposals is publicly advertised. (b) Evaluation Factors. All evaluation factors and their relative importance are specified in the solicitation; but numerical or percentage ratings or weights need not be disclosed. Pro—cement Procedures For Federally Funded Contracts 14 LA #4836-3698-4069 v1 / 9`�/' (c) Adequate Sources. Proposals are solicited from an adequate number of qualified sources. (d) Evaluation Method. A specific method is established and used to conduct technical evaluations of the proposals received and to determine the most qualified offeror. (e) Price and Other Factors. An award is made to the responsible offeror whose proposal is most advantageous to the recipient's program with price and other factors considered. (f) Best Value. If permitted under its State or local law, the recipient may award the contract to the offeror whose proposal provides the greatest value to the recipient. To do so, the recipient's solicitation must inform potential offerors that the award will be made on a' best value" basis and identify what factors will form the basis for award. The evaluation factors for a specific procurement should reflect the subject matter and the elements that are most important to the recipient. Those evaluation factors may include, but need not be limited to, technical design, technical approach, length of delivery schedules, quality of proposed personnel, past performance, and management plan. The recipient should base its determination of which proposal represents the "best value" on an analysis of the tradeoff of qualitative technical factors and price or cost factors. Apart from the statutory requirement that the contract must support the recipient's public transportation project consistent with applicable Federal laws and regulations. E. Two -Step Procurement Procedures. If permitted by State and local law, the recipient may use two-step procurement procedures in both sealed bid and competitively negotiated procurements, provided the opportunity for full and open competition is retained. (i) Review of Technical Qualifications and Approach. The first step is a review of the prospective contractors' technical approach to the recipient's request and technical qualifications to carry, out that approach. The recipient then may narrow the competitive range to prospective contractors that demonstrate a technically satisfactory approach and have satisfactory qualifications. (ii) Review of Bids and Proposals Submitted by Qualified Prospective Contractors. The second step consists of soliciting and reviewing complete bids (sometimes referred to as "two-step sealed bidding") or proposals (as in "competitive negotiations"), including price, submitted by each prospective contractor determined to be qualified. Absent exceptional circumstances, the recipient should attempt to solicit bids or proposals from at least three qualified prospective contractors. Unlike Procurement Procedures For Federally Funded Contracts 15 LA #4836-36984069 v1 / 90 qualifications -based procurement procedures required for A&E services, and other contracts covered by 49 U.S.C. Section 5325(b), federal departments expect the Agency to consider all bid or proposal prices submitted as well as other technical factors, rather than limiting reviews to the most qualified bidder or offeror. F. Architectural Engineering (A&E) Services and Other Services. Federal legislation at 49 U.S.C. Section 5325(b)(1) requires the use of the qualifications -based procurement procedures contained in the "Brooks Act," 40 U.S.C. Sections 1101 through 1104, to acquire A&E services, but also for program management, construction management, feasibility studies, preliminary engineering, design, architectural, engineering, surveying, mapping and related services. The nature of the work to be performed and its relationship to construction, not the nature of the prospective contractor, determine whether qualifications -based procurement procedures may be used as described below. (i) Qualifications -Based Procurement Procedures Required. Agency staff must use qualifications -based procurement procedures not only when contracting for A&E services, but also for other services listed in 49 U.S.C. Section 5325(b)(1) that are directly in support of, directly connected to, directly related to, or lead to construction, alteration, or repair of real property. For example, a contractor performing program. management, project design, construction management, or engineering services in which that contractor would select the finished products to be acquired for a federally funded construction project must be selected through qualifications -based procurement procedures. (ii) Qualifications -Based Procurement Procedures Prohibited. Unless the awarding agency determines otherwise in writing, a recipient may not use qualifications - based procurement procedures to acquire other types of services if those services are not directly in support of, directly connected to, directly related to, or do not lead to construction, alteration, or repair of real property. Even if a contractor has performed services listed herein in support of a construction, alteration, or repair project involving real property, selection of that contractor to perform similar services not relating to construction may not be made through the use of qualifications -based procurement procedures. A project involving construction does not always require that qualifications -based procurement procedures be used. Whether or not qualifications -based procurement procedures may be used depends on the actual services to be performed in connection with the construction project. For example, the design or fabrication of message signs, signals, movable barriers, and similar property that will become off-the-shelf items or will be fabricated and delivered as final end products for installation in a federally funded construction project are not services for which qualifications -based Procurement Procedures For Federally Funded Contraus d C LA #4836-3698-4069 v1 IV ql procurement procedures may be used. Nor is actual construction, alteration, or repair to real property the type of services for which qualifications -based procurement procedures may be used. (iii) Qualifications -Based Procurement Procedures. The following procedures apply to qualifications -based procurements: (a) Qualifications. Unlike other two-step procurement procedures in which price is an evaluation factor, an offeror's qualifications are evaluated to determine contract award. (b) Price. Price is excluded as an. evaluation factor. (c) Most Qualified. Negotiations are first conducted with only'the most qualified offeror. (d) Next Most Qualified. Only after failing to agree on a fair and reasonable price may negotiations be conducted with the next most qualified offeror. Then, if necessary, negotiations with successive offerors in descending order may be conducted until contract award can be made to the offeror whose price the recipient believes is fair and reasonable. (iv) Effect of State Laws. To the extent that a State has, before August 10, 2005, adopted by law, an equivalent State qualifications -based procurement requirement for acquiring architectural, engineering, and design services, Federal "Brooks Act" procedures, 40 U.S.C. Sections 1101 through 1104, will not apply. (v) Audits and Indirect Costs. As required by 49 U.S.C. Section 5325(b)(3), the following requirements apply to a third party contract for program management, architectural engineering, construction management, feasibility studies, preliminary engineering, design, architectural, engineering, surveying, mapping, or related services: (a) Performance of Audits. The third party contract or subcontract must be performed and audited in compliance with federal cost principles. (b) Indirect Cost Rates. The city, its subcontractors and subrecipients, if any, must accept FAR indirect cost rates for one-year applicable accounting periods established by a cognizant Federal or State government agency, if those rates are not currently under dispute. Proa4remen! Procedures For Fedem/1'v Funded Contracts 17 LA #4836-3698-4069 v1 (c) Application of Rates. After a firm's indirect cost rates are accepted, those rates will apply for purposes of contract estimation, negotiation, administration, reporting, and payments, not limited by administrative or de facto ceilings. (d) Prenotification; Confidentiality of Data. Before requesting or using cost or rate data, a recipient must notify the affected firm(s). That data must be kept confidential and may not be accessible by or provided by the group of agencies that share cost data under this subparagraph, except by written permission of the audited firm. If prohibited by law, that cost and rate data may not be disclosed under any circumstances. Federal departments recognize that many States have "Open Records" laws that may make it difficult to maintain confidential cost or rate data. As a result, before requesting or using cost or rate data, not only should a recipient notify the affected firm, but it must also obtain permission to provide that data in response to a valid request under applicable State law. The confidentiality requirements of 49 U.S.C. 5325(b)(3)(D) cannot be waived, even if they conflict with State law or regulations. G. Design -Bid -Build. The design -bid -build procurement method requires separate contracts for design services and for construction. (i) Design Services. For design services, the recipient must use qualifications -based procurement procedures, in compliance with applicable Federal, State and local law and regulations. (ii) Construction. Because the recipient may not use qualifications -based procurement procedures for the actual construction, alteration or repair of real property, the recipient generally must use competitive procedures for the construction. These may include sealed bidding or competitive negotiation procurement methods, as appropriate. H. Design -Build. The design -build procurement method consists of contracting for design and construction simultaneously with contract award to a single contractor, consortium, joint venture, team, or partnership that will be responsible for both the project's design and construction. Most awarding agencies authorize the use of grant funds to support design -build projects "after the recipient complies with Government requirements," 49 U.S.C. Section 5325(d)(2). Agency staff will confirm such authorization before proceeding with any project. (i) Procurement Method Determined by Value. First, the recipient must separate the various contract activities to be undertaken and classify them as design or construction, and then calculate the estimated total value of each. Because both Procitremem Procedures For Federally Funded Contracts 18 LA #4836-3698-4069 v1 l q 3 design and construction are included in a single procurement, the awarding agency expects the Agency to use the procurement method appropriate for the services having the greatest cost, even though other necessary services would not typically be procured by that method. (a) Construction Predominant. The construction costs of a design -build project are usually predominant so that the recipient would be expected to use competitive negotiations or sealed bids for the entire procurement rather than the qualification -based Brooks Act procurement procedures. Specifically, when construction costs will be predominant, unless the awarding agency determines otherwise in writing, an Agency may not use qualifications -based procurement procedures to acquire architectural engineering, program management, construction management, feasibility studies, preliminary engineering, design, architectural and engineering, surveying, mapping, or related A&E services unless required by State law adopted before August 10, 2005. (b) Design Services Predominant. In the less usual circumstance in which the cost of most work to be performed will consist of costs for architectural and engineering, program management, construction management, feasibility studies, preliminary engineering, design, architectural engineering, surveying, mapping, or related A&E services, the awarding agency expects the Agency to use qualifications -based procurement procedures based on the Brooks Act. (ii) Selection Processes. Agency staff may structure its design -build procurement using one or more steps as described below: (a) One -Step Method. The Agency may undertake its design -build procurement in a single step. (b) Two -Step Method. Another procurement method the Agency may use for large design -build projects is a two-step selection process as authorized for Federal Government use by 41 U.S.C. Section 253m. This method consists of: 1 Review of Technical Qualifications and Approach. The first step is a review of the prospective contractors' technical qualifications and technical approach to the project. The Agency may then narrow the competitive range to those prospective contractors with satisfactory qualifications that demonstrate a technically satisfactory approach. 2 Review of Complete Proposals. The second step consists of soliciting and reviewing complete proposals, including price, submitted by prospective contractors first determined to be qualified. Proa frement Proc oUres For Federally Funded Contracts 19 LA #4836-3698-4069 A 1 q By using this two-step method, it will not be necessary for the Agency to undertake extensive proposal reviews, nor will prospective offerors need to engage in expensive proposal drafting. This two-step selection procedure is separate and distinct from prequalification and is but one procurement method available to the Agency. I. Other Than Full and Open Competition. Normally, Agency staff must provide for full and open competition when soliciting bids or proposals. Federal regulations, however, acknowledge that under certain circumstances, the Agency may conduct procurements without providing for full and open competition. (i) When Appropriate. Agency staff may use noncompetitive proposals only when the procurement is inappropriate for small purchase procedures, sealed bids, or competitive proposals, and at least one of the following circumstances are present: (a) Competition Adequacy. After soliciting several sources, the awarding agency expects the Agency to review its specifications to determine if they are unduly restrictive or if changes can be made to encourage submission of more bids or proposals. After Agency staff determines that the specifications are not unduly restrictive and changes cannot be made to encourage greater competition, Agency staff may determine the competition adequate. A cost analysis must be performed in lieu of a price analysis when this situation occurs. (b) Sole Source. When Agency staff requires supplies or services available from only one responsible source, and no other supplies or services will satisfy its requirements, Agency staff may make a sole source award. When Agency staff requires an existing contractor to make a change to its contract that is beyond the scope of that contract, Agency staff has made a sole source award that must be justified. 1 Unique Capability or Availability. The property or services are available from one source if one of the conditions described -below is present: A Unique or Innovative Concept. The offeror demonstrates a unique or innovative concept or capability not available from another source. Unique or innovative concept means a new, novel, or changed concept, approach, or method that is the product of original thinking, the details of which are kept confidential or are patented or copyrighted, and is available to the Agency only from. one source and has not in the past been available to the Agency from another source. Procurement Procedures For Federally Funded Contracts 20 LA #4836-3698-4069 v1 195 b Patents or Restricted Data Rights. Patent or data rights restrictions preclude competition. c Substantial Duplication Costs. In the case of a follow-on contract for the continued development or production of highly specialized equipment and major components thereof, when it is likely that award to another contractor would result in substantial duplication of costs that are not expected to be recovered through competition. d Unacceptable Delay. In the case of a follow-on contract for the continued development or production of a highly specialized equipment and major components thereof, when it is likely that award to another contractor would result in unacceptable delays in fulfilling the Agency's needs. 2 Single Bid or Proposal. Upon receiving a single bid or proposal in response to a solicitation, Agency staff should determine if competition was adequate. This should include a review of the specifications for undue restrictiveness and might include a survey of potential sources that chose not to submit a bid or proposal. a Adequate Competition. Awarding agencies acknowledge competition to be adequate when the reasons for few responses were caused by conditions beyond the Agency's control. Many unrelated factors beyond the Agency's control might cause potential sources not to submit a bid or proposal. If the competition can be determined adequate, the awarding agency's competition requirements will be fulfilled, and the procurement will qualify as a valid sole source. b Inadequate Competition. Awarding agencies acknowledge competition to be inadequate when, caused by conditions within the Agency's control. For example, if the specifications used were within the Agency's control and those specifications were unduly restrictive, competition will be inadequate. (ii) Unusual and Compelling Urgency. Federal regulations permit the Agency to limit the number of sources from which it solicits bids or proposals when the Agency has such an unusual and urgent need for the property or services that the Agency would be seriously injured unless it were permitted to limit the solicitation. The Agency may also limit the solicitation when the public exigency or emergency will not permit a delay resulting from competitive solicitation for the property or services. Procurement Procechires For Federally Funded Contracts 21 LA #4836-3698-4069 v1 Agency staff will negotiate profit as a separate element of the price for each contract in which there is no price competition and in all cases where cost analysis is performed. To establish a fair and reasonable profit, consideration will be given to the complexity of the work to be performed, the risk borne by the contractor, the contractor's investment, the amount of subcontracting, the quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work. Pro"rement Procerhtres For Federedly Funded Contracts 22 LA #4836-3698-4069 v1 L / 17 SECTION 5 AWARD OF CONTRACTS I. SCOPE This section describes specific procedures relating to the award of contracts. It. GENERAL A. Agency staff will make awards only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources. B. Agency staff will maintain records sufficient to detail the significant history of a procurement. These records will include, but are not necessarily limited to the followmi g: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. C. Federal grant regulations require the recipient to perform a cost or price analysis in connection with every procurement action, including contract modifications and sole source procurements. The method and degree of analysis depends on the facts and circumstances surrounding each procurement, but as a starting point, the recipient must make independent estimates before receiving bids or proposals. (i) Cost Analysis. Agency staff must obtain a cost analysis when a price analysis will not provide sufficient information to determine the reasonableness of the contract cost. Agency staff must obtain a cost analysis when the offeror submits elements (that is, labor hours, overhead, materials, and so forth) of the estimated cost, (such as professional consulting and A&E contracts, and so forth). Agency staff is also expected to obtain a cost analysis when price competition is inadequate, when only a sole source is available, even if the procurement is a contract modification, or in the event of a change order. Agency staff, however, need not obtain a cost analysis if they can justify price reasonableness of the proposed contract based on a catalog or market price of a commercial product sold in substantial quantities to the general public or based on prices set by law or regulation. (a) Federal Cost Principles. Federal cost principles contain many requirements about the allowability and allocability of costs. Procurement Procedemes For Federally Funded Contracts 23 LA #4836-3698-4069 v1 J 1 (b) Establishing Indirect Cost Rates. For contracts other than A&E contracts discussed in subsection 3.e of this Chapter, if the third party contractor or subcontractor does not have an approved Government indirect cost rate agreement, the contract's dollar value should determine how that rate is verified. 1 Contracts of $5 Million or Less. The awarding agency may accept the audit recommendations of the contractor's certified public accountant, or indirect cost information in the contractor's annual statement to their stockholders, shareholders, or owners, or examples of acceptance of their rates by other governmental agencies within the last six months. 2 Contracts Exceeding $5 Million. If the contract exceeds $5 million, then the Defense Contract Audit Agency, another Federal cognizant audit agency, or an accounting firm approved by the Federal Government to perform audits for the Federal Government, must verify the contractor's rates. (c) Profit. The awarding agency expects Agency staff to negotiate profit as a separate element of the cost for each contract in which there has been no price competition, and in all acquisitions in which the recipient performs or acquires a cost analysis. To establish a fair and reasonable profit, Agency staff needs to consider the complexity of the work to be performed, the risk undertaken by the contractor, the contractor's investment, the amount of subcontracting, the quality of the contractor's record of past performance, and industry profit rates in the surrounding geographical area for similar work. (ii) Price Analysis. If Agency staff determines that competition was adequate, a price analysis, rather than a cost analysis, is required to determine the reasonableness of the proposed contract price. The price analysis for micro -purchases may be limited. Similarly, Agency staff may use an abbreviated price analysis for small purchases in most cases. One method to record this price analysis is through the use of a preprinted form on which a contracting officer (or other responsible person) canannotate a finding of fair and reasonable pricing and check off the most common reasons why this would be so, such as catalog or market prices offered in substantial quantities to the general public, regulated prices (for example, for many utilities purchases), or a comparison with recent prices for similar goods and services. (iii) Guidance on Cost and Price Analysis. The awarding agencies recognize, that some local agencies may have difficulty obtaining the information necessary to conduct a proper cost or price analysis. Agency staff may use the following resources as guidance in preparing cost or price analyses: Procurement Procerhtres For Federaltv Fended Contracts 24 LA #4836-3698-4069 v1 ( q,9 FTA's "Best Practices Procurement Manual," Chapter 5, The National Transit Institute Course, "Cost or Price Analysis and Risk Assessment," Pricing Guide for FTA Grantees, FTA Web Site: http://www.fta.dot.gov/documents/Helpline—Price—Guide.doc., FAR Part 31, Contract Cost Principles and Procedures, and Defense Contract Audit Agency Audit Manual. See, the DCAA Web site: http://www.dcaa.mil/. Note, however, that the requirements of FAR Part 31 and the Defense Contract Audit Agency Audit Manual may differ from restrictions applicable to an FTA recipient. Agency staff must comply with those Federal laws and regulations directly applicable to it based on the specifics of the grant. D. Procurement History. Federal grant regulations require Agency staff to maintain and make available written records detailing the history of each procurement, as follows: (i) Procurement Method. Agency staff must provide its rationale for the method of procurement it used for each contract, including a sole source justification for any acquisition that does not qualify. as competitive, while a non-governmental recipient need only provide a justification for lack of competition when it does not obtain competitive bids or proposals for contracts exceeding the simplified acquisition threshold; (a) Contract Type. Agency staff must state the reasons for selecting the contract type it used (fixed price, cost reimbursement, and so forth); (b) Contractor Selection. Agency staff must state its reasons for contractor selection or rejection. For procurements exceeding the small purchase threshold, a non-governmental recipient must state its reasons for contractor selection, but need not state its reasons for contractor rejection. Agency staff should include a written responsibility determination for the successful contractor; and (c) Cost or Price. Agency staff must evaluate and state its justification for the contract cost or price. (ii) Reasonable Documentation. The extent of documentation should be reasonable. Proatremem ProcerB— ' For Federally Funded Contracts 25 LA #4836-3698-4069 v1 a 0 0 Documents included in a procurement history should be commensurate with the size and complexity of the procurement itself. Awarding agencies recognize that these written records will vary greatly for different procurements. For example, a receipt or bill accompanying a $100 credit card purchase might contain all of the required information to support that procurement. Procurements that are more substantial may require extensive documentation. E. When evaluating solicitation responses the following standards apply: (i) When evaluating bids or proposals submitted, Agency staff should consider all evaluation factors specified in its solicitation documents, and evaluate the bids or offers only on the evaluation factors included in those solicitation documents. The recipient may not modify its evaluation factors after bids or proposals have been submitted without re -opening the solicitation. (ii) In awarding the contract that will include options, the following standards apply: (a) Evaluation Required. In general, Agency staff should evaluate bids or offers for any option quantities or periods contained in a solicitation if it intends to exercise those options after the contract is awarded. (b) Evaluation Not Required. Agency staff need not evaluate bids or offers for any option quantities when the recipient determines that evaluation would not be in its best interests. An example of a circumstance that may support a determination not to evaluate bids or offers for option quantities is when the recipient is reasonably certain that funds will not be available to permit it to exercise the option. (iii) In addition to evaluators with experience in technical or public policy matters related to the procurement, other evaluators may also include auditors and financial experts to the extent that the recipient determines would be necessary or helpful. Although many local agencies assign evaluation duties to their own personnel, a local agency lacking qualified personnel within its organization may contract for evaluation services. If it does so, the procurement standards of this circular will apply to those contracts and to those contractors selected to perform evaluation functions on behalf of the recipient. Procurement Procedures For Federally Funded Contracts 26 LA #4836-3698-4069 v1 a v/ SECTION 6 PROCUREMENT OBJECT TYPES: SPECIAL CONSIDERATIONS I. SCOPE Occasionally, the Agency may have the need to procure supplies or services that are unique or involve special circumstances. Such procurements frequently have department specific requirements, all of which can't be covered within this policy. Agency staff will need to do additional investigation to determine of there are requirements peculiar to their project. Some examples of these types of procurements are listed below. Construction Design build Construction management "turnkey" Value engineering Job order contracting Partnering Equipment lease/maintenance Transit rolling stock Professional services Architect/engineering services Insurance Artwork For example, local agencies are encouraged to use value engineering clauses in contracts for construction projects of sufficient size to offer reasonable opportunities for cost reductions. Value engineering is a systematic and creative analysis of each contract item or task to ensure that its essential function is provided at the overall lower cost. Procurement Procedures For Federally Funded Contracts 27 LA #4836-3698-4069 v1 SECTION 7 DISADVANTAGED BUSINESS ENTERPRISE I. SCOPE This section describes specific procedures required by federal regulations for the support of Disadvantaged Business Enterprises (DBE). II. DEFINITIONS A. FTA — The -Federal Transit Administration. B. DBE = Disadvantage Business Enterprise as defined by 49CFR26 and as certified by .CA Unified Certification Program. C. UDBE — Underutilized DBE as determined by the Caltrans Disparity Study III. GENERAL The Agency has established a DBE Policy. This policy and the procedures in place for monitoring and carrying out the program under Caltrans and the FTA will be used for all public works projects whether or not the funding is received from the Department of Transportation (DOT). For non -DOT, non-public works projects, the procedures specified in this section will be followed. IV. PROCEDURES A. The Agency will take all necessary affirmative steps to assure that minority firms, women's business enterprises, and labor surplus area firms are used when possible. Affirmative steps shall include: (i) Placing qualified small and minority businesses and women's business enterprises on solicitation lists; (ii) Assuring that small and minority businesses, and women's business enterprises are solicited whenever they are potential sources; (iii) Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority business, and women's business enterprises; (iv) Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority business, and women's business enterprises; Pr—re—ot Procedures _ For Federally Funded Contracts 28 LA #4836-3698-4069 v1 (v) Using the services and assistance of the Small Business Administration, and the Minority Business Development Agency of the Department of Commerce; and (vi) Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed . in paragraphs (i) through (v) of this section. Ao<vrement Procedures For Federally Funded Contracts 29 LA #4836-3698-4069 v1 aD� SECTION 8 CONTRACT CLAUSES I. SCOPE This section identifies the contractual requirements for federally funded projects. II. GENERAL Federal grant requirements require that all third party contracts include provisions adequate to form a sound and complete agreement. Compliance with Federal laws and regulations will necessarily result in the addition of many other provisions to ensure compliance with those laws and regulations. For contracts resulting from DOT funded grants, Appendix D will identify the appropriate contract clauses. Other federally funded grants will follow the guidance in this section. III. PROCEDURES Bids and contracts resulting from federally funded grants will contain clauses covering the topics listed below. The FTA Best Practices Manual can provide suggested wording. A. For construction or facility improvement contracts or subcontracts exceeding the simplified acquisition threshold, the awarding agency will require a bid guarantee from each bidder equivalent to five percent of the bid price. B. For construction or facility improvement contracts or subcontracts exceeding the simplified acquisition threshold, the awarding agency will require a performance bond on the part of the contractor for 100 percent of the contract price. C. For construction or facility improvement contracts or subcontracts exceeding the simplified acquisition threshold, the awarding agency will require a payment bond on the part of the contractor for 100 percent of the contract price. D. Administrative, contractual, or legal remedies in instances where contractors violate or breach contract terms, and provide for such sanctions and penalties as may be appropriate, including liquidated damages. (Contracts more than the simplified acquisition threshold) Proatremeni Procedures For Federally Funded Conlracls 30 LA #4836-3698-4069 V1 I E. Termination for cause and for convenience by the Agency including the manner by which it will be effected and the basis for settlement. (All contracts in excess of $10,000) F. Compliance with Executive Order 11246 of September 24, 1965, entitled "Equal Employment Opportunity," as amended by Executive Order 11375 of October 13, 1967, and as supplemented in Department of Labor regulations (41 CFR chapter 60). (All construction contracts awarded in excess of $10,000 by Agency and -their contractors) G. Compliance with the Copeland "Anti -Kickback" Act (18 U.S.C. 874) as supplemented in Department of Labor regulations (29 CFR Part 3). (All contracts for construction or repair) H. Compliance with the Davis -Bacon Act (40 U.S.C. 276a to 276a-7) as supplemented by Department of Labor regulations (29 CFR Part 5). (Construction contracts in excess of $2000 awarded by Agency when required by Federal grant program legislation) Compliance with Sections 103 and 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-330) as supplemented by Department of Labor regulations (29 CFR Part 5). (Construction contracts awarded by Agency in excess of $2000, and -in excess of $2500 for other contracts which involve the employment of mechanics or laborers) Notice of awarding agency requirements and regulations pertaining to reporting. K. Notice of awarding agency requirements and regulations pertaining to patent rights with respect to any discovery or invention which arises or is developed in the course of or under such contract. L. Awarding agency requirements and regulations pertaining to copyrights and rights in data. M. Access by the Agency, the Federal grantor agency, the Comptroller General of the United States, or any of their duly authorized representatives to any books, documents, papers, and records of the contractor which are directly pertinent to that specific contract for the purpose of making audit, examination, excerpts, and transcriptions. Procarement Procecheres For Federally Funded Contracts 31 LA #4836-36984069 v1 N. Retention of all required records for three years after the Agency makes final payments and all other pending matters are closed. O. Compliance with all applicable standards, orders, or requirements issued under section 306 of the Clean Air Act (42 U.S.C. 1857(h)), section 508 of the Clean Water Act (33 U.S.C. 1368), Executive Order 11738, and Environmental Protection Agency regulations (40 CFR part 15). (Contracts, and subcontracts of amounts in excess of $100,000) P. Mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act (Pub. L. 94-163, 89 Stat. 871). Q. The Buy American Act provides guidance on the procurement of manufactured and unmanufactured items, material and supplies. Contracts for construction must also include provisions covering this requirement. Further information on the Act maybe found at 41 U.S.C. 10a - 10d and 48 CFR Part 25. R. Contract modifications for federally funded procurements as required by 48 CFR 43.205. Further information on this may also be found in Section 9 of this Policy. Proevretnent Procedures For Federally Funded Contracts LA #4836-3698-4069 v1 '�-O 32 SECTION 9 CONTRACT ADMINISTRATION I. SCOPE This section describes specific procedures required administration of contracts funded by federal grants including changes thereto. II. DEFINITIONS A. Administrative Change - A unilateral contract change, in writing, that does not affect the substantive rights of the parties (e.g., changes of address for submittals of documents, reports, etc.). B. Bilateral Contract Modification - A modification which is signed by the Contractor and the Contracting Official; also referred to as a supplemental agreement. They are used to (1) make negotiated equitable adjustments to the contract price, delivery schedule and other contract terms resulting from the issuance of a change order, (2) definitize letter contracts, and (3) reflect other agreements of the parties modifying the terms of the contract. C. Cardinal Change - A contract change which is "outside the scope" of the original contract, and thus not within the authority of the Changes clause to order. Such changes are "sole source" procurements, and must be processed as such. D. Changes Clause - A clause which permits the Contracting Official to make unilateral changes, in designated areas, within the general scope of the contract, to be followed by such equitable adjustments in the price and delivery schedule as the change makes necessary. Although the Agency has a unilateral right, two general principles are important: The right exists only because it is specifically conferred by the terms of the contract; and When such unilateral rights are exercised, the grantee has an obligation to adjust the price and/or other provisions to compensate for the alteration in the contractor's obligations. E. Change Order - A written order, signed by the Contracting Official, directing the Contractor to make a change that the Changes clause authorizes the Contracting Pronvrement Procedures For Federa(!v Funded Contracts 33 LA #4836-3698-4069 v1 Official to order without the Contractor's consent. F. Constructive Contract Change - A change to a contract resulting from the conduct of the Agency's officials that has the effect of requiring the Contractor to perform additional work. A constructive change results from the acts, written or oral, or from the omissions of the Agency's officials, which have the same effect as if the Contracting Official had issued a formal, written change order. Actions giving rise to constructive changes should, of course, be avoided. Such changes represent actions which usually exceed the authority of the individual responsible for them, e.g., improper technical direction by the Technical Officer which is actually a change to the contract. When these actions occur, contractors need to be advised as part of the terms of their contracts to bring any such actions to the immediate attention of the Contracting Official so that an official determination can be made by the appropriate Agency officials and proper directions given in writing under the Changes clause. Some common examples are: • Specifications or contract provisions that are "impossible to perform." • Specifications that are ambiguous. • Drawings that contain errors, omissions or inconsistencies. • Grantee -provided information that is late, defective, etc. • Technical direction by personnel that modifies the expressed terms of the contract. • Acceleration of work, where the grantee insists that the contract delivery schedule be met despite the Contractor's valid claims of excusable delays. • An inspector's interpretations of test specifications, procedures, methods, conditions and results that go beyond a reasonable interpretation of the specification. G. Contract Administration - The post -award administration of the contract to ensure compliance with the terms of the contract by both the contractor and the Agency. This includes any necessary changes. H. Contract Administration File Documentation - The documentation contained in the contract file maintained by, or on behalf of the Contracting Official. It reflects the actions taken by the contracting parties in accordance with the requirements of the contract and documents the decisions made, and the rationale therefore, of matters which may result (or have resulted) in controversy or dispute. Procztrement Procerhtres For Federally Funded Contracts LA #4836-3698-4069 v1 34 I. Contract Modification - Any written change in the terms of the contract. J. Deductive Change - A change resulting in a reduction in the contract price because of a net reduction in the Contractor's work. K. Equitable Adjustment - An adjustment in the contract price, delivery schedule or other terms of the contract arising out of the issuance of a change order. L. Procurement File Documentation - The documentation contained in a procurement file which details the history of the procurement through award of the contract. It includes, at a minimum, the rationale for the method of procurement, the selection of the contract type, the reasons for selection or rejection of the contractor, and the basis for the contract price. M. Unilateral Contract Modification - A contract modification that is signed only by the Contracting Official. They are used to make administrative changes, issue change orders, make changes authorized by clauses other than a Changes clause (e.g., Options clause), and issue termination notices. III. GENERAL Every type of contract will have different contract administration actions and the documentation required to support that administration will differ as well. Supply contracts have different specific administrative actions than construction contracts do just as fixed price contracts are administered differently than cost -reimbursement contracts. The Federal Acquisition Regulations has an extensive listing of contract administration functions that are considered "normal" and might be applicable to your particular contract. Additionally, each department has specific requirements that must be considered. For example, the FTA limits contract terms for rolling stock and replacement parts to five years. IV. PROCEDURES A. Agency staff will maintain a contract administration system which documents and ensures that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders. For sealed bid procurements and competitive negotiations, consider including as standard practice in the contract administration file the following: Pr..-ent Procedures For Federally Funded Contracts 35 LA #4836-3698-4069 v1 • The executed contract and notice of award; • Performance and payment bonds, bond -related documentation, and correspondence with any sureties; • Contract -required insurance documentation • Post -award (pre -performance) correspondence from or to the contractor or other Governmental agencies, • Notice to proceed; • Approvals or disapprovals of contract submittals required by the contract and requests for waivers or deviations from contractual requirements; • Modifications/changes to the contracts including the rationale for the change, change orders issued, and documentation reflecting any time and or increases to or decreases from the contract price as a result of those modifications; • Documentation regarding settlement of claims and disputes including, as appropriate, results of audit and legal reviews of the claims and approval by the proper authority (i.e., city council, board of directors, executive director) of the settlement amount; • Documentation regarding stop work and suspension of work orders and termination actions (convenience as well as default); and • Documentation relating to contract close-out. B. Agency contracts should contain a Changes clause. The language of the clause may differ depending upon the nature of the contract and the end -item being procured. Change clauses limit the authority of the issuer in two ways. First, they stipulate that changes must be "within the general scope of the contract." Second, they describe the types of changes that may be made. In order for the change to be binding on the Contractor, it must meet both tests. It must be within the general scope and be one of the types of changes described in the clause. The Changes clause has several purposes: (i) To give the grantee flexibility to order changes in the work, which may be necessary due to advances in technology or changes in the grantee's requirements. (ii) To give the Contractor a method of suggesting changes to the work, thus Procurement Procedures Far Federoll v Fended Contracts 36 LA #4836-3698-4069 v1 g1 improving the quality of the contract end -items. The equitable adjustment provisions of the Changes clause will encourage the Contractor to suggest improvements when those suggestions will increase the contract price. When, however, the situation calls for suggestions regarding dollar savings, the Changes clause may not incentives the Contractor if it stands to lose the dollar savings because of a price reduction in the contract. For this reason, value engineering clauses are included in contracts. (iii) To give the grantee authority to order additional work which is "within the general scope of the contract, and thereby avoid having to procure this work as a "new procurement with all of the time and expense associated with another solicitation. (iv) To require the Contractor to proceed with the changed work and resolve the issue of compensation later. The Federal clauses direct the Contractor to proceed with the work in accordance with the change order directive and submit a proposal within 30 days, following which the parties are to negotiate an equitable adjustment to the price, delivery schedule and other affected terms. Emergency situations can thus be handled expeditiously without placing the Contractor in a position of demanding a certain amount of compensation before the work can proceed. In the event of a failure to agree on price, the issue can be resolved by a third party in accordance with the dispute procedure in the Disputes clause of the contract. This provision is important because disputes over compensation do not delay the work. The Contractor is required to proceed with the work as changed and settle the issue of compensation later. The Contractor cannot quit work because of a disagreement over price. C. Federal grant regulations require local agencies to perform a cost or price analysis, as appropriate, for every contract action, including change orders. Procvrement Procedures For Federally Funded Contracts 37 LA #4836-3698-4069 v1 J a/ SECTION 10 CLOSE-OUT I. SCOPE This section describes close-out and records retention issues. II. GENERAL A. The Agency must make available, upon request of the awarding agency, technical specifications on proposed procurements where the awarding agency believes such review is needed to ensure that the item and/or service specified is the one being proposed for purchase. This review generally will take place prior to the time the specification is incorporated into a solicitation document. However, if the Agency desires to have the review accomplished after a solicitation has been developed, the awarding agency may still review the specifications, with such review usually limited to the technical aspects of the proposed purchase. B. The Agency must on request make available for awarding agency pre -award review procurement documents, such as requests for proposals or invitations for bids, independent cost estimates, etc. when: (i) A Agency's procurement procedures or operation fails to comply with the procurement standards in this section; or (ii) The procurement is expected to exceed the simplified acquisition threshold and is to be awarded without competition or only one bid or offer is received in response to a solicitation; or (iii) The procurement, which is expected to exceed the simplified acquisition threshold, specifies a "brand name" product; or (iv) The proposed award is more than the simplified acquisition threshold and is to be awarded to other than the apparent low bidder under a sealed bid procurement; or (v) A proposed. contract modification changes the scope of a contract or increases the contract amount by more than the simplified acquisition threshold. Procurement Procedures _ For Federally Funded Contracts 38 LA #4836-3698-4069 v1 a13 SECTION 11 DISPUTES I. SCOPE This section describes specific procedures required by federal regulations. The Agency shall have written protest procedures to handle and resolve disputes relating to procurements and shall in all instances disclose information regarding the protest to the awarding agency. II. GENERAL A. Because the awarding agency has a vested interest in the settlement of any dispute, default, or breach involving any federally assisted third party contract, the Agency agrees to pursue all legal rights available under any third party contract. The awarding agency reserves the right to concur in any compromise or settlement of any third party contract claim involving the Agency. B. The Agency agrees to notify the awarding agency of any current or prospective major dispute, breach, or litigation pertaining to any third party contract. If the Agency seeks to name the awarding agency as a party to litigation for any reason, the Agency agrees to inform the awarding agency before doing so; this requirement applies to any type of litigation whatsoever, in any forum. C. The awarding agency retains the right to a proportionate share, based on the percentage of the Federal share committed to the project, of any proceeds derived from any third party recovery. If the third party contract at issue contains a liquidated damages provision, the Agency agrees to credit any liquidated damages recovered to the project account unless the awarding agency permits otherwise. D. The awarding agency encourages the Agency to use alternative dispute resolution procedures, as may be appropriate. E. Local agencies alone will be responsible, in accordance with good administrative practice and sound business judgment, for the settlement of all contractual and administrative issues arising out of procurements. These issues include, but are not limited to source evaluation, protests, disputes, and claims. These standards do not relieve the local agencies of any contractual responsibilities under its contracts. Federal agencies will not substitute their judgment for that of the local agencies unless the matter is primarily a Federal concern. Violations of law will be referred to the local, State, or Federal authority having proper jurisdiction. Proairement Procedures For Federally Femded Contracts _ 39 LA #4836-3698-4069 v1 C;/ / I11. PROCEDURES A. Disputes arising in the performance of a contract which are not resolved by agreement of the parties shall be decided in writing by the authorized representative of the Agency. B. A protester shall have the right to present a formal protest to the Agency, in writing, within five (5) working days of the date the protester knew or should have known of the alleged violation or, in the case of a bid protest, the date solicitation responses were due. C. Within ten (10) working days after receipt of the formal protest, the Agency shall render a written decision regarding its merit. Failure of the Agency to render a written decision on the protest within ten (10) working days constitutes a decision denying the merit of the protest. D. A protester may seek additional administrative remedies subsequent to the Agency's response to the protest. E. A protester must exhaust all administrative remedies with the Agency before pursuing a protest with awarding agency. F. Reviews of protests by the awarding agency will be limited to: (i) Violations of Federal law or regulations and the standards of this section (violations of State or local law will be under the jurisdiction of State or local authorities) and (ii) Violations of the local agency's protest procedures for failure to review a complaint or protest. Protests received by the awarding agency other than those specified above will be referred to the local agency. Prontrement Procedures For Federally Funded Contracts A i 0 LA #4836-3698-4069 v1 SECTION 12 DISPOSITION I. SCOPE This section describes specific disposition procedures. When equipment or supplies acquired under a grant from a federal agency are no longer needed for federally supported projects or programs, they may be retained by the Agency or disposed of. II. DEFINITION A. Federally funded equipment or supplies - any supplies, materials, real property, or equipment purchased under a federal grant. B. Surplus - no longer needed for federally supported projects or programs. III. GENERAL A. Disposition should follow competitive sales procedures to ensure the highest possible return. Service life of equipment is determined by acceptable industry standards for such equipment, and service life of rolling stock such as buses is determined by FTA Circular 9030.1C or by contacting the FTA regional office. (i) Over $5,000 value: After the service life of equipment is reached, equipment with a current market value exceeding $5,000 per unit, or unused supplies with a total aggregate fair market value of more than $5,000, may be retained or sold, with reimbursement to the awarding agency of an amount calculated by multiplying the total aggregate fair market value at the time of disposition, or the net sale proceeds, by the percentage of awarding agency's participation in the original grant. The Agency's transmittal letter should state whether the equipment was retained or sold. (ii) Less than $5,000 value: Equipment with a unit market value of $5,000 or less, or supplies with a total aggregate market value of $5,000 or less, may be retained, sold or otherwise disposed of with no obligation to reimburse awarding agency. Records of this action must be retained. (iii) Before end of service life: Any disposition of equipment (including revenue rolling stock) before the end of its service life is subject to prior awarding agency concurrence in the method of disposition. The reimbursement amount Pro-rement Procedures - For Federally Funded Contracts 41 LA #4836-3698-4069 v1 for revenue rolling stock removed from service before the end of its useful life is the greater of the awarding agency share of the unamortized value of the remaining service life per unit, based on straight line depreciation of the original purchase price or the Federalshare of the sales price, even though the unamortized value is $5,000 or less. (iv) Unused Supplies: Disposition of unused supplies before the end of the industry standard life expectancy is determined in total aggregate fair market value and if found to exceed $5,000, the Agency shall compensate the awarding agency for its share. (v) Like -Kind Exchange Option: The "like -kind exchange" policy is a disposition initiative which adds the option of trading a vehicle or selling it and applying the proceeds to replacement vehicles. The Agency may elect to use the trade-in value or the sales proceeds from a bus to acquire a replacement vehicle of like - kind. If the Agency chooses to re -invest the proceeds, 100 percent of the net proceeds must be applied to acquisition of the replacement vehicles. (vi) Involuntaly Removal: When equipment is involuntarily removed from revenue service (e.g. loss through fire, accident, earthquake, etc.) prior to the expiration of its useful life, the substitution of capital assets purchased with local funds for those acquired with Federal funds is permissible when: (a) Substituted equipment is of equal or greater value. (b) Substituted equipment was procured in accordance with awarding agency guidance. (c) Useful life criteria are adjusted to coincide with the original. (d) Equipment is to be used in the programs or projects that are consistent with the purpose for which the original equipment was procured. (e) The Agency amends its property records to include the equipment, as appropriate. (vii) Trade -In: Equipment may be used as a trade-in or be sold and the proceeds used to offset the cost of replacement property, subject to awarding agency approval. Procm—ent Procech,res For Federally Funded Contracts 42 LA #4836-3698-4069 v1 c9/ 7 APPENDIX A INFORMATION RESOURCES In addition to the Code of Federal Regulations (CFR) for each individual department and agency (See Appendix B), the following information resources should be reviewed for federally funded projects. Office of Management and Budget (OMB) Circular — A-87 Cost Accounting Principles for State, Local and Indian Tribal Governments Office of Management and Budget (OMB) Circular — A-102 Grants and Cooperative Agreements with State and Local Governments Office of Management and Budget (OMB) Circular — A-133 Audits of States, Local Governments and Non -Profit Organizations (Including annual Compliance Supplement) Federal Transit Administration (FTA) Circular — 4220.1F Third Party Contracting Guidance Federal Transit Administration (FTA) Circular— 5010.11) Grant Management Guidelines Federal Transit Administration (FTA) Master Agreement Federal Transit Administration (FTA) Best Practices Manual Redevelopment Agency of the City of Santa Clarita Purchasing Policy Redevelopment Agency of the City of Santa Clarita DBE Policy Redevelopment Agency of the City of Santa Clarita Purchasing Standards of Conduct and Ethics Proonemen[ Procedures For Federally Funded Contracts LA #4836-3698-4069 v1 APPENDIX A-1 i i 4 APPENDIX B CODIFICATION LOCATION Codification of Governmentwide Grants Requirements by Department Pro—emeni Procechires - ForFedera(lAPPENDIX END vFundedContracts P IXB-1 LA #4836-3698-4069 v1 ! 1 r Lt V /� Grants OMB Circular Drug -Free Byrd Anti - Department Management A-110 Nonprocurement Workplace Lobbying Common Rule. (universities & Suspension & Act Amendment (See Note 1) (State & Local non-profit Debarment(See common common Governments) organizations) Note 3) rule rule (See (See Note 2) Note 4) 'Agriculture 7 CFR 3016 7 CFR 3019 7 CFR 3017 7 CFR 7 CFR 3018 3021 Commerce 15 CFR 24 15 CFR 14 2 CFR 1326 15 CFR 29 15 CFR 28 'Defense 32 CFR 33 32 CFR 32 2 CFR 1125 32 CFR 26 32 CFR 28 Education 34 CFR 80 34 CFR 74 34 CFR 85 34 CFR 84 34 CFR 82 Energy 10 CFR 600 10 CFR 600 2 CFR 901 10 CFR 10 CFR 601 607 `Health & Human 45 CFR 92 45 CFR 74 2 CFR 376 45 CFR 82 45 CFR 93 !Services Housing & ,,Urban 24 CFR 85 24 CFR 84 24 CFR 24 24 CFR 21 24 CFR 87 'Development Interior 43 CFR 12 43 CFR 12 2 CFR 1400 43 CFR 43 43 CFR 18 ,Justice 28 CFR 66 28 CFR 70 2 CFR 2867 28 CFR 83 28 CFR 69 Labor 29 CFR 97 29 CFR 95 29 CFR 98 29 CFR 94 29 CFR 93 ;State 22 CFR 135 22 CFR 145 2 CFR 601 FR 22 CFR 138 133 ATransportation 49 CFR 18 49 CFR 19 49 CFR 29 149 CFR 32 49 CFR 20 Treasury -- -- 31 CFR 19 31 CFR 20 31 CFR 21 !veterans Affairs 38 CFR 43 -- 2 CFR 801 38 CFR 48 38 CFR 45 Pro—emeni Procechires - ForFedera(lAPPENDIX END vFundedContracts P IXB-1 LA #4836-3698-4069 v1 ! 1 r Lt V /� Codification of Governmentwide Grants Requirements by Agency Proewre—t Procedures For Federally Fended Contracts LA #4836-3698-4069 v1 APPENDIX B-2 v �V Grants OMB Circular Byrd Anti - Agency Management A-110 Nonprocurement Drug -Free Lobbying (See Common Rule (universities & Suspension & Workplace Amendment Note 1) (State & Local non-profit Debarment (See Act common common Governments) organizations) Note 3) rule rule (See (See Note 2) Note 4) ADF -- -- 22 CFR 1508 22 CFR 1509 -- Ab -- 22 CFR 226 22 CFR 208 22 CFR 210 22 CFR 227 BBG -- 22 CFR 518 22 CFR 513 -- 22 CFR 519 CNCS 45 CFR 2541 45 CFR 2543 45 CFR 2200 45 CFR 2545 -- ]EPA 40 CFR 31 40 CFR 30 2 CFR 1532 40 CFR 36 1140 CFR 34 {EX -- -- 2 CFR 3513 -- 12 CFR 411 FEMA 44 CFR 13 -- 29 CFR 1471 -- 44 CFR 18 1 FMCS 29 CFR 1470 -- 29 CFR 1471 29 CFR 1472 -- IGSA71 41 CFR 105- 41 CFR 105-72 41 CFR 105-68 41 CFR 105- 41 CFR 105- 74 69 ;IMS 45 CFR 1183 -- 45 CFR 1185 45 CFR 1186 .-- IAF -- -- 22 CFR 1006 J22 CFR 1008 -- NASA 14 CFR 1273 14 CFR 1260 2 CFR 180 14 CFR 1267 114 CFR 1271 +NARA 36 CFR 1207 36 CFR 1210 2 CFR 2600 36 CFR 1212 -- NEA 45 CFR 1157 -- 2 CFR 3254 45 CFR 1155 45 CFR 1158 INEH 45 CFR 1174 -- 2 CFR 3369 45 CFR 1173 45 CFR 1168 jNSF 45 CFR 602 -- 2 CFR 2520 45 CFR 630 45 CFR 604 `ONDCP 21 CFR 1403 -- 21 CFR 1404 21 CFR 1404 -- OPM -- -- 5 CFR 919 -- -- OPIC -- -- -- -- 22 CFR 712 ;Peace ECorps 22 CFR 3700 22 CFR 312 22 CFR 311 ,SBA 13 CFR 143 -- 13 CFR 145 13 CFR 147 13 CFR 146 SSA -- -- 2 CFR 2336 20 CFR 439 -- TVA -- -- -- -- 18 CFR 1315 Proewre—t Procedures For Federally Fended Contracts LA #4836-3698-4069 v1 APPENDIX B-2 v �V NOTES: Abbreviations used for the following independent agencies: African Development Foundation (ADF), Agency for International Development (AID), Broadcasting Board of Governors (BBG), Corporation for National & Community Service (CNCS), Environmental Protection Agency (EPA), Export -Import Bank of the United States (EX -IM), Federal Emergency Agency (FEMA), Federal Mediation & Conciliation Service (FMCS), General Service Administration (GSA), Institute of Museum Services (IMS), Inter -American Foundation (IAF), National Aeronautics & Space Administration (NASA), National Archives & Records Administration (NARA), National Endowment for the Arts (NEA), National Endowment for the Humanities (NEH), National Science Foundation (NSF), Office of National Drug Control Policy (ONDCP), Office of Personnel Management (OPM), Overseas Private Investment Corporation (OPIC), Small Business Administration (SBA), Tennessee Valley Authority (TVA), and 2. Additional agencies are expected to codify OMB Circular A-110 (2 CFR 215); in the meantime, the Circular's requirements apply to them and their awards. 3. Executive Order 12549 provided that agencies, including those which have not yet codified the common rule, are covered by OMB's governmentwide guidelines which are identical to the common rule (see OMB's memorandum to the agencies at 60 FR 33036 and OMB's notice at 53 FR 34474). For additional information about implementation of the Drug -Free Workplace Act, see OMB's notices at 54 FR 4946 and 55 FR 21679. 4. The law only required major agencies, as identified by OMB, to codify the common rule; all other agencies are covered by OMB's governmentwide guidance (54 FR 52305 (28 pages, 1,673 kb)) which is identical to the common rule (also see OMB's clarification notices at 55 FR 24540 (3 pages, 337 kb) and 57 FR 1772 (2 pages, 260 kb)). Because of a new law on lobbying, OMB issued amendments to its governmentwide guidance, effective 1/1/96 (61 FR 1412 (2 pages, 34 kb)). Procwremem Proce&ires For Federally Funded Commas APPENDIX B-3 LA #4836-3698-4069 0 II. REQUIRED PROCUREMENT ELEMENTS AND SUGGESTED BEST PRACTICES 11.2. INDIVIDUAL PROCUREMENT ELEMENTS 1) Independent Cost Estimate "Grantees must perform a cost or price analysis in connection with every procurement action, ...as a starting point, grantees must make independent estimates before receiving bids or proposals" [FTA C 4220.1 D, 10.; BPPM § 2.3.2] T%e price analys►s�wras�made�on�th�eba is s of a ed bid`�r�esul 2) A&E Geographic Preference "Geographic location may be a selection criterion in procurements for architectural and engineering (A&E) services provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract." [FTA C 4220.1 D, 8.b.; BPPM § 6.5] 3) Unreasonable Qualification Requirements Example of situation restrictive of competition: "Unreasonable requirements placed on firms in order for them to qualify to do business" [FTA C 4220.1 D, 8.a.(1); BPPM § 2.4.2.1] Na unreasonable�qualfficationswer_emposedson.b�d`ders` 4) Unnecessary Experience and Excessive Bonding Example of situation restrictive of competition: "Unnecessary experience and excessive bonding requirements" [FTA C 4220.1D, 8.a.(2); BPPM § 2.4.2.1] 5) Organizational Conflict of Interest Example of situation restrictive of competition: "Organizational conflicts of interest" [FTA C 4220.1D, 8.a.(5); BPPM § 2.4.2.1 and 2.4.2.2.2] No organrzatwnal cbnflrctsexlst 6) Arbitrary Action Example of situation restrictive of competition: "Any arbitrary action in the procurement process" [FTA C 4220.1 D, 8.a.(7); BPPM § 2.4.2.1] Procurement Procedures - For Federally Funded Contracts APPENDIX li C-1 LA #4836-3698-4069 v1 � � I i�lo�arb�frnryractrona's�takendurfng procurement process; 7) Brand Flame Restrictions Example of situation restrictive of competition: "The specification of only a 'brand name' product without listing its salient characteristics and not allowing 'an equal' product to be offered" [FTA C 4220.1 D, 8.a.(6); BPPM § 2.4.2.1 and 2.4.2.2.1] Useof`brand"na►ne=forspec)ftcatiorspuroses nci'ucletl fhe required `gar equal l statement. � 8) Geographic Preferences (a) "Grantees shall conduct procurements in a manner that prohibits the use of statutorily or administratively imposed in -State or local geographical preferences in the evaluation of bids or proposals, except in those cases where applicable Federal statutes expressly mandate or encourage geographic preference. This does not preempt State licensing laws" [FTA C 4220.1 D, 8.b.] Noageograptiical�preferenc`ewas�usedfm�fhe�solic�fatron�for #lis�purchase 9) Contract Period of Performance Limitation (a) Grantees shall not enter into any contract for rolling stock and replacement parts with a period of performance exceeding five (5) years inclusive of options. [49 USG Section 5326(b)] No'tapplcablthisu cr base 10) Written Procurement Selection Procedures (a) "Grantees shall have written selection procedures for procurement transactions" [FTA C 4220.1 D, 8.c.; BPPM § 4.3.2, 4.4.1, 4.5.1, and 4.5.2] (b) "All solicitations shall:... (2) Identify all requirements that offerors must fulfill and all other factors to be used in evaluating bids or proposals."[FTA C 4220.1 D, 8.c.; BPPM § 4.3.2, 4.4.1, 4.5.1, and 4.5.2] 11) Solicitation Prequalification Criteria (a) "Grantees shall ensure that all lists of prequalified persons, firms, or products that are used in acquiring goods and services are current. " [FTA C 4220.1 D, 8.d.] (b) "Grantees shall ensure that all lists of prequalified persons, firms, or products that are used in acquiring goods and services ... include enough qualified sources to ensure maximum full and open competition." [FTA C 4220.1 D, 8.d.] (c) "grantees shall not preclude potential bidders from qualifying during the solicitation period, which is from issuance of the solicitation to its closing date." [FTA C 4220.1 D, 8.d.] Procitrement Procedures For Federally Funded Contracts W #4836-3698-4069 v1 APPENDIX C-2 C -d_3 € ,.^::^-;.� 3 -rad, �°� Solicrtation contatne`cl=no prequalrficath n crrterra 12) Award to Responsible Contractors "Grantees shall make awards only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration shall be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources." [FTA C 4220.1 D, 7.h.] Te contract was awartletl of •ftielawestresponsve responsible bud etl 13) Sound and Complete Agreement (a) "All contracts shall include provisions to define a sound and complete agreement." [FTA C 4220.1 D, 15.1 (b) "In addition, contracts and subcontracts shall contain administrative, contractual, or legal remedies in instances where contractors violate or breach contract terms, including sanctions and penalties as may be appropriate. (All contracts in excess of the small purchase threshold.)" [FTA C 4220.1 D, 15.a.] (c) "In addition, contracts and subcontracts shall contain ... termination for cause and for convenience by the grantee or subgrantee including the manner by which it will be effected and the basis for settlement. (All contracts in excess of $10,000)" [FTA C 4220.1D, 15.b.] Purchase Order/Contact contarns�al! requ�r-ed clausesanci-�requiremenfsa 14) No Splitting [Micro -purchase] "There should be ... no splitting of procurements to avoid competition." [FTA C 4220.1 D, 9.a.; BPPM § 4.11 IVa at Ircat�le,inot anrcroFpurchase 15) Fair and Reasonable Price Determination [Micro -purchase] "Minimum documentation is required: A determination that the price is fair and reasonable ....." [FTA C 4220.1 D, 9.a; BPPM § 4.1) IVot`a livable, aiof a mice purchas 16) Micro -Purchase Davis Bacon "The Davis Bacon Act applies to construction contracts between $2,000 and $2,500" [FTA C 4220.1 D, 9.a.; BPPM § 4.1 ] ,� amu. Notiapplrcati.W 17) Price Quotations [Small Purchase] Procurement Procedures For Federally Fended Cowraos LA #4836-3698-4069 v1 APPENDIX C-3 "Price or rate quotations shall be obtained from an adequate number of qualified sources" [FTA C 4220.1 D, 9.b.; BPPM § 4.2] 18) Clear, Accurate, and Complete Specification (a) "All solicitations shall: (1) Incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured" [FTA C 4220.1 D, 8.c.(1); BPPM § 3] Solicitation specificattans£vvere carnpleteand<=clear: 19) Adequate Competition - Two or More Competitors (a) "In order for sealed bidding to be feasible, the following conditions should be present: . Two or more responsible bidders are willing and able to compete effectively for the business" [FTA C 4220.1 D, 9.c.(1)(b)] (b) "The competitive proposal method of procurement is normally conducted with more than one source submitting an offer i.e., proposal." [FTA C 4220.1 D, 9.d.] Sealed brds�€were�rec�eued from 7a���'dders 20) Firm Fixed Price [Sealed Bid] 'The procurement lends itself to a firm fixed price contract' [FTA C 4220.1 D, 9.c.(1)(c)] 21) Selection on Price [Sealed Bid] "The selection of the successful bidder can be made principally on the basis of price" [FTA C 4220.1 D, 9.c.(1)(c)] Selectionwas based�an �Sr�cend the respo`nsib�lityaf fhe's oC pant' 22) Discussions Unnecessary [Sealed Bid] "No discussion with bidders is needed" [FTA C 4220.1 D, 9.c.(1)(d)] 23) Advertised/Publicized [Sealed Bid] [RFP] (a) "If this procurement method is used, the ... the invitation for bids will be publicly advertised" [FTA C 4220.1 D, 9.c.(2)(a)] (b) "If this procurement method is used the following requirements apply:... Requests for proposals will be publicized." [FTA C 4220.1 D, 9.d.(1)] Proatrement Procedures For Federallv Funded Cont—Is LA #4836-3698-4069 v1 APPENDIX C-4 24) Adequate Solicitation [Sealed Bid] [RFP] (a) "If this procurement method is used.... bids shall be solicited from an adequate number of known suppliers" [FTA C 4220.1 D, 9.c.(2)(a)] (b) "If this procurement method isused the following requirements apply:... Proposals will be solicited from an adequate number of qualified sources" [FTA C 4220.1 D, 9.d.(2)] 25) Sufficient Bid Time [Sealed Bid] "If this procurement method is used.... sufficient time to prepare bids prior to the date set for opening the bids" will be provided. [FTA C 4220.1 D, 9.c.(2)(a)] 26) Bid Opening [Sealed Bid] "If this procurement method is used.... [a]II bids will be publicly opened at the time and place described in the invitation for bids" [FTA C 4220.1 D, 9.c. (2)(c)) 27) Responsiveness [Sealed Bid] "If this procurement method is used.... [a] firm fixed-price contract award will be made in writing to the lowest responsive ... bidder." [FTA C 4220.1 D, 9.c.(2)(d)] 28) Lowest Price [Sealed Bid] "If this procurement method is used.... [a] firm fixed-price contract award will be made in writing to the lowest responsive and responsible bidder." [FTA C 4220.1 D, 9.c.(2)(d)] Aafirm<,fixed prree contracUwas awarded fo the lowesf.responsrve�, r�esponsrb/e m ri a_ .r .,� , bidder: 29) Rejecting Bids [Sealed Bid] "Any or all bids may be rejected if there is a sound documented business reason" [FTA C 4220.1D, 9.c.(2)(e)) 34) Evaluation [RFP] Proairemenl Procedures For Federally Funded Conlracls C-5 APPENDIX V LA #4836-3698-4069 v1 1 J (a) "If this procurement method is used the following requirements apply:... All evaluation factors will be identified along with their relative importance." [FTA C 4220.1 D, 9.d.(1)] (b) "If this procurement method is used the following requirements apply:... Grantees will have a method in place for conducting technical evaluations of the proposals received ...." [FTA C 4220.1 D, 9.d.(3)] (c) "If this procurement method is used the following requirements apply:... Grantees will have a method in place ... for selecting awardees." [FTA C 4220.1 D, 9.d.(3)] Notapplca blesoltcifatron was a sealed=did: 31) Price and Other Factors [RFP] "If this procurement method is used the following requirements apply:... Awards will be made to the responsible firm whose proposal is most advantageous to the grantee's program with price and other factors considered." [FTA C 4220.1 D, 9.d.(4)] 1Votapp%icak(e, solrcftat�ontlwas aealed bids 32) Sole Source if Other Award is Infeasible (a) "Sole Source procurements are accomplished ... after solicitation of a number of sources, competition is determined inadequate." [FTA C 4220.1 D, 9.f.] (b) "Procurement by noncompetitive proposals may be used only when the award of a contract is infeasible under small purchase procedures, sealed bids, or competitive proposals and at least one of the following circumstances applies" [FTA C 4220.1 D, 9.f.(1)] " r Not applicable awardwas�not sole�source; _ 33) Cost Analysis Required [Sole Source] "A cost analysis, i.e., verifying the proposed cost data, the projections of the data, and the evaluation of the specific elements of costs and profit, is required." [FTA C 4220.1 D, 9.f.(2)] IVot�applrcableawartl4:was not_sotesource 34) Evaluation of Options (i) "Grantees may include options in contracts. An option is a unilateral right in a contract by which, for a specified time, a grantee may elect to purchase additional equipment, supplies, or services called for by the contract, or may elect to extend the term of the contract." [FTA C 4220.1 D, 9.g.] (ii) "If a grantee chooses to use options ... The option quantities or periods contained in the contractor's bid or offer must be evaluated in order to determine contract award." [FTA C 4220.1 D,9.g.(1)] (iii) "When options have not been evaluated as part of the award, the exercise of such options will be considered a sole source procurement" [FTA C 4220.1 D, 9.g.(1)] Procurement Procedures For Federallv Funded Contracts LA #4836-3698-4069 v1 APPENDIX C-6 ��-7 Y1ta operons were�cansdered�and nonewrll.�heexecuted 35) Cost or Price Analysis (a) Cost analysis (i) "Grantees must perform a cost or price analysis in connection with every procurement action, including contract modifications. The method and degree of analysis is dependent on the facts surrounding the particular procurement situation . . .. " (FTA C 4220.1 D, 10.) 36) Written Record of Procurement History "Grantee shall maintain records detailing the history of a procurement. At a minimum, these records shall include; (1) the rationale for the method of procurement, (2) selection of contract type, (3) reasons for contractor selection or rejection, and (4) the basis for the contract type" [FTA C 4220.1 D, 7.i.] 37) Exercise of Options (i) "Grantees may include options in contracts. An option is a unilateral right in a contract by which, for a specified time, a grantee may elect to purchase additional equipment, supplies, or services called for by the contract, or may elect to extend the term of the contract." [FTA C 4220.1 D, 9.g.] 38) Out of Scope Changes (a) "A contract amendment or change order that is not within the scope of the original contract is considered a sole source procurement" [FTA C 4220.1 D, 9.f.] NOOIItofscoperchanges wee Wade 39) Advance Payments "FTA does not authorize and will not participate in funding payments to a contractor prior to the incurrence of costs by the contractor unless prior written concurrence is obtained from FTA" [FTA C 4220.1 D, 12.a.] nloadvancegpayments' weremade 40) Progress Payments "Grantees may use progress payments provided the following requirements are followed" [FTA C 4220.1 D, 12.b.] Not applrcable,. no progress payment Mer„e�made Proatrement Prncerhires For Federally Funded Contracts APPENDIX !+_7 LA #4836-3698-4069 v1 lam_ I 41) Time and Materials Contracts (i) "Grantees will use time and material type contracts only . _ . [a]fter a determination that no other type of contract is suitable; and ... [i]f the contract specifies a ceiling price that the contractor shall not exceed except at its own risk." [FTA C 4220.1 D, 7.j.] 42) Cost Plus Percentage of Cost (1) "The cost plus a percentage of cost and percentage of construction cost methods of contracting shall not be used". [FTA C 4220.1 D, 10.e.] 43) Liquidated Damages Provisions "A grantee may use liquidated damages if it may reasonably expect to suffer damages (increased costs on project involved) from late completion and the extent or amount of such damages would be difficult or impossible to determine. The assessment for damages shall be at a specific rate per day for each day of overrun in contract time; and the rate must be specified in the third party contract. Any liquidated damages recovered shall be credited to the project account involved unless the FTA permits otherwise." [FTA C 4220.1 D, 13.] This purchase confa�ned no�liqurd�tetl�atamages c�/ausei 44) Piggybacking "Piggybacking" is defined as the post -award use of a contractual document/process that allows someone who was not contemplated in the original procurement to purchase the same supplies or equipment through the original document/process. Thejpurchasevas noa pJJgyback{u chase: 45) IDIQ While the Dear Colleague Letter does not say the words indefinite -delivery, indefinite - quantity (IDIQ] this is what is referred to by the language that the original solicitation and contract contain both a minimum and maximum quantity, which represented the reasonably foreseeable needs of the parties to the solicitation. [Dear Colleague Letter, 10/1/98, P. 2] Nofapplcable,the purchase dvas not an 1D%Qcontract 46) Qualifications Exclude Price [A&E] (a) "Grantees shall use competitive proposal procedures based on the Brooks Act when contracting for A&E services as defined in 40 U.S.C. § 541. Other types of services Procurement Pre—h— For Federallv Funded Controas LA #4836-3698-4069 v1 APPENDIX C-8 BMW considered A&E services include program management, construction management, feasibility studies, preliminary engineering, design, surveying, mapping, and services which require performance by a registered or licensed architect or engineer." [FTA C 4220.1 D, 9.e.] (b) "The Brooks Act requires that ... An offeror's qualifications be evaluated" [FTA C 4220.1D, 9.e.(1)] (c) "The Brooks Act requires that.. Price be excluded as an evaluation factor" [FTA C 4220.1D, 9.e.(2)] Not�applicablenot�an,�t'&€ p,irchase 47) Serial Price Negotiations [A&E] (a) "The Brooks Act requires that ... Negotiations be conducted with only the most qualified offeror" and [FTA C 4220.1 D, 9.e.(3)] (b) "The Brooks Act requires that ... Failing agreement on price, negotiations with the next most qualified offeror be conducted until a.contract award can be made to the most qualified offeror whose price is fair and reasonable to the grantee." [FTA C 4220.1 D, 9.e.(4)] K&t, aicl alb/e a not an A&Ea parchase , 48) Bid Security [Construction Over $100,000] "Minimum requirements for construction contracts ... A bid guarantee from each bidder equivalent to five (5) percent of the bid price. The 'bid guarantee" shall consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of his bid, execute such contractual documents as may be required within the time specified" [FTA C 4220.1 D, 11.a.] dot applicable,�thiswasnof a constructionpur�ct sea 49) Performance Security [Construction Over $100,000] "Minimum requirements for construction contracts ... A performance bond on the part of the contractor for 100 percent of the contract price. A'performance bond' is one executed in connection with a -contract to secure fulfillment of all the contractor's obligations under such contract" [FTA C 4220.1 D, 11.b] N f applrcable,u.thrs�;was�not a`constructron�purciase� 50) Payment Security [Construction Over $100,000] (a) "Minimum requirements for construction contracts ... A payment bond on the part of the contractor. A payment bond is one executed in connection with a contract to assure payment, as required by law, of all persons supplying labor and material in the execution of the work provided for in the contract." [FTA C 4220.1 D, 11.c.] hof a�plicable,�thrswas nofa�co`ns�fruct�on . purchase'. Procurement Procedures For Federally Funded Contracts LA #4836-3698-4069 v1 APPENDIX C-9 t9_30 Areas highlighted in yellow indicate information needed for each procurement action. The data should contain the details confirming compliance with the stated requirement if applicable. Source: Guide for Procurement Systems Review Procurement Procedures For Federally Funded Contracts LA #4836-3698-4069 v1 APPENDIX C-10 oa 3/ APPENDIX D FTA PROCUREMENT CONTRACT REQUIREMENTS The FTA Procurement Contract Requirements are to be used by project managers as a reference regarding the applicability of FTA requirements to specific projects. The FTA Best Practices Manual should be used for suggested bid clause wording. Proairement Procedures For Federallv Funded Contracts LA #4836-3698-4069 v1 APPENDIX D-1 oq3a FTA -Funded Procurement Contract Requirements Checklist Federal Requirement , escriptton ak Page Drug & Alcohol Testing Applies to Operational Service Contracts. 1 Buy America Applies to Construction Contracts and Acquisition 4 of Goods or Rolling Stock valued at more than $100,000. Charter Bus/School Bus Applies to Operational Service Contracts. 9 School Bus Applies to Operational Service Contracts. 10 Cargo Preference Applies to all Contracts involving equipment, 11 materials, or commodities which may be transported by ocean vessels. Seismic Safety Applies to Construction of new buildings or 12 additions to existing buildings. Energy Conservation Applies to All Contracts. 13 Clean Water Applies to every Contract and Subcontract valued at 14 more than $100,000. Bus Testing Applies to Acquisition of Rolling Stock, including 15 service contractor. PreAward/PostDelivery Applies to Acquisition of Rolling Stock, including 17 Audit service contractor. Lobbying Applies to Construction/Architectural and 20 Engineering/Acquisition of Rolling Stock/Professional Service/Operational Service/Turnkey Contracts and SubContracts. Access to Records/Reports See Chart with Boilerplate. 22 Federal Changes Applies to All Contracts. 25 Bonding Applies to Construction Contracts valued at more 26 than $100,000. Clean. Air Applies to All Contracts valued at more than 30 Procurement Procedtaes For Federally Funded Contracts LA #4836-3698-4069 v1 APPENDIX D-2 C9 53 Federal Requirement Description x Ks :Page. $100,000. Recycled Products Applies to specific item procurements valued at 31 more than $10,000. See Resource Conservation and Recovery Act (RCRA) for specific items. Davis -Bacon Act Applies to Construction Contracts valued at more 32 than $2,000. Contract Work Hours and Applies to Construction Contracts valued at more 39 Safety Standards than $2,000. Applies to Turnkey, Rolling Stock, and Operational Contracts valued at more -than $2,500. Copeland Anti -Kickback Applies to Construction Contracts valued at more 42 than $2,000. No Government Applies to All Contracts. 43 Obligation to Third Parties Fraud/False Statements Applies to All Contracts. 44 Termination Applies to All Contracts valued at more than 45 $10,000. Applies to All Contracts with Nonprofit organizations valued at $100,000. Debarment & Suspension Applies to All Contracts and SubContracts valued 49 at more "than $100,000. Privacy Act Applies to Operational Service Contracts. 51 Civil Rights Applies to All Contracts. 52 Breach/Dispute Applies to All Contracts valued at more than 54 Resolution $100,000. Patent Rights; Copyrights Applies to Contracts which finance the development 55 of a product or information. Transit Employee Applies to Operational Service Contracts. 58 Prot: —enl Proced"res For Federally Funded Contracts LA #4836-3698-4069 v1 APPENDIX D-3 y i4 Federal Requirement ',: Descrip'hon Page Y Protection Disadvantaged Business Applies to Contracts valued at more than $250,000; 60 $100,000 for planning. State and Local Laws Applies to All Contracts. 63 Incorporation of FTA Applies to All Contracts. 64 Terms Proa—ent Procederres For Federally Funded Contracts LA #4836-36984069 v1 APPENDIX D-4 ,3S