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HomeMy WebLinkAbout2010-07-13 - RESOLUTIONS - ADOPT SC PURCHASING POLICY (2)RESOLUTION NO. RDA 10-8 A RESOLUTION OF THE CITY OF 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. 1 PASSED, APPROVED AND ADOPTED this 13th day of July, 2010. ATTEST: 104 F W74, Elk P-4 FAX STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Sarah P. Gorman, Agency Secretary of the Redevelopment Agency of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the Redevelopment Agency of the City of Santa Clarita at a regular meeting thereof, held on the 13th day of July 2010, by the following vote: AYES: AGENCY MEMBERS NOES: AGENCY MEMBERS ABSENT: AGENCY MEMBERS: Ender, Kellar, McLean, Ferry, Weste None None PA AGENCY SEC TARY 1 i� STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) CERTIFICATION OF REDEVELOPMENT AGENCY RESOLUTION I, , Agency Secretary of the Redevelopment Agency of the City of Santa Clarita, do hereby certify that this is a true and correct copy of the original Resolution No. RDA 10-8, adopted by the Redevelopment Agency of the City of Santa Clarita California on July 13, 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. Agency Secretary 1 By Deputy Secretary 1 Exhibit A CI*ty of Santa Clarita Ptirc'hani i i,,cT POLICY L 1— I 1 TABLE OF CONTENTS SECTION DESCRIPTION PAGE INTRODUCTION 1 PROGRAM RESOLUTION 05-103 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 05-103 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. L� 1 Purchasing Policy July 2010 Page 1 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. III. 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 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. n Purchasing Policy July 2010 Page 3 1 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 IV. 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, usersare 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. 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 wbsite. 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 t - 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. \ VI. 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 aiso 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 1 J 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 changes permitted 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 SECTION 3.0 SLI PPL IES/S ER VI CES/EO UI PMENT 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 1 1 C 9 PURCHASES FROM $,2,00070 $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 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 _- "SHOP LOCAL" INITIATIVE (1) All bids and quotes, not using a multi -criteria award designation - are now 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) i - ay 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). 1 Purchasing Policy July 2010 Page 11 J 1 1 'SECTION 4.0 PROFESSIONAL SERVICES I. 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. Ill. 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 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 undei* a master agreement for most services. 1 Purchasing Policy July 2010 Pagg 13 1 i Yet f•: i SECTION 5.0 PUBLIC PROJECTS I. SCOPE 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 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 , 1 1 t• a 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. Purchasing Policy July 2010 Page 16 SECTION 6.0 PURCHASE ORDER CHANGES I. 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 , 1 1 1 (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 F 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 SECTION 7 0 SUPPLIER RELATIONS I. 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. IL 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. M. 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 . '.t• p-7. # _ 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; ' d 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 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 forremedy 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 hesitats to contact Purchasing if you have any questions. Purchasing Policy July 2010 1 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. III. 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 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. C 1 Purchasing Policy July 2010 Page 23 1 U L SECTION 9.0 GRATUITIES' I. SCOPE This section provides guidelines on the acceptance of gratuities. 11. 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. I11. 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 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) 1 Purchasing Policy July 2010 Page 25 J SECTION 11.0 PURCHASING WITH SPECIAL FUNDS I. SCOPE This section provides the requirements for the use of special funds for purchasing supplies, equipment and services. II. 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 2.6 SECTION 12.0 SUSTAINABLE PURCHASING I. SCOPE This section provides the requiremerts 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. II. 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 D L 1 r B. All City purchases will require responding businesses to certify the postconsumer cont6ht'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 0 Page;.28... 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. 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 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. '- 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 C 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 Citiproperty 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: a 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 4220.1E. Purchasing Policy July 2010 Appendix A Page 2 potential) of a conflict of interest should be discussed with management, and a reassignment of procurement responsibility should be considered. o 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. o Displays of personal preference may give an impression of impropriety and should be avoided. Conversation that delves excessively into personal affairs should be avoided. o 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 o 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. o 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 anon -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. o Taking personal advantage of an opportunity that properly belongs to the City or using City property or resources for personal gain. o 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 • IJ'i 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 t67ensure: o It is legal. o It is in the best interests of the City. o It will not influence the purchasing decision. o It will not be perceived by peers or others to be unethical. Sources of influence include: o Management Policies o Gifts, Gratuities, and Entertainment o Product Samples o Business Meals o Personal Relationships o . Political Considerations o Advertising o 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 buyirig'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 o Extreme caution must be used in evaluating the acceptance of gifts, gratuities, or I 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. n Soliciting gifts, gratuities, or entertainment in any form for yourself, other staff or the City is unacceptable. o Avoid accepting monies, credits; and prejudicial discounts. o 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. o 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. o 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. a Such meals shall be for a specific business purpose. o Frequent meals with the same supplier should be avoided. a 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 or 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: o Pricing o Bid or quotation information o Cost sheets o Formulas and/or process information o Design information a Organizational plans, goals, and strategies u, o Profit information o Asset"information o Wage and salary scales o Personal information about employees, officers, and directors a Supply sources or supplier information o 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'engagirig in a practice known as reciprocity.. These purchasing actions are Purchasing Policy July 2010 Appendix XPage 6 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 , esult in legal sanctions against the City, its management, and/or its procirement staff. The following are recommended guidelines in dealing with reciprocity: o Procurement strategy must include a positive efforiL to oppose any corporate or organizational commitment to, or pursuit of, any'form of improper reciprocity. o 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. o 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. C 1 Purchasing Policy July 2010 Appendix A Page 7 APPENDIX B SUMMARY OF RESOLUTIONS AFFECTING PROCUREMENT I. 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 Council RESOLUTION 91-91, PROTECTION OF TROPICAL TIMBER A. BACKGROUND The importation and use of tropical timber promotes the loss of tropical rain forests. 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 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. 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. 1 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 1. 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. 1 n Purchasing Policy July 2010 Appendix B Page 4 'I 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 necessary to buy products made from recycled materials thereby creating a demand for these materials, which we are attempting to keep out of our landfills. The City of Santa Clarita can facilitate demand for recycled products by purchasing products made from recycled materials. By fostering markets for recycled materials, the City serves a leadership role in promoting similar procurement practices within all City departments, private businesses and the general public. The Local Government Commission completed a report in June 1990 specifying the growing number of cities across the country that have implemented, or are currently implementing similar recycled procurement guidelines. Procurement policies enacted statewide include price preferences for recycled post -consumer materials; revisions of bid specifications which previously required only virgin materials; modification of purchase requisitions requiring the consideration of recycled content products, the compliance of all contractors and grantees working on behalf of the City to implement these City enacted procurement policies, promotion programs, 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 "secondarycontent" 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 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 zprograms 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 recyclingprograms; 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. Purchasing Policy July 2010 Appendix C Page 4 II. Recycled Content Preference It is recommended that the City of Santa Clarita establish a policy, whenever practical, to purchase products which contain, in order of preference, the following: 1. The highest percentage of recycled content of "post -consumer recovered materials," available in the marketplace; and 2. The highest percentage of "pre -consumer recovered materials," available in the marketplace. In those instances where it is deemed impractical to procure a recycled -content item, a specific explanation for the finding must be included in the purchasing record (see "Monitoring and Annual Report" section). 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. bythe 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: 1. The ability of a product and its packaging to be reused , reconditioned for use, or recycled through existing recycling collection programs; and 2. The volume and toxicity of waste and by-products of a given product and its packaging generate in their manufacture, use, recycling and disposal. Products and packaging designed to minimize waste and toxic by-products in their manufacture, use, recycling and disposal shall be preferred. V. Equipment Compatibility Equipment purchased or rented by the City shall be compatible, whenever practical, with the use of recycled content products. If deemed impractical, a specific reason for such a finding must be included in the purchasing record. VI. Purchase Requisition, Specification and Bid Solicitation Product specification and requisitions for products shall conform to the following guidelines: 1. Product specifications and requisitions shall not 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 VII. 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: 1. Instances where this policy is waived or its requirements found impracticable; and 2. Barriers to the procurement of recycled -content products. In addition to monitoring and evaluating this procurement policy, the effect of evaluating products for their recycled content, ensuring specifications are non-discriminatory, including the Council's policy in bid solicitations and contracts, and other additional requirements of the policy will affect the Purchasing Policy July 2010 Appendix C Page 6 1 1 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 Ciarita 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 OMNI G) b i h City fie$ � ' CO Cbc Wprka',g tb:3 o607�a m and ctrdjy e i 11,U0, CUM WO of acdae talmL PAISM AND AF'tOVW this&of .. ' n • �+-rJy ATTE I � . 19 by o cf ft %mllt & AYES Nam- CO AMMU; Mm Purchasing Policy July 2010 Appendix C Page 8 1 1 1 APPENDIX D RESOL UTION. 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 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 Ahingeria 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 1 The p;adcaer, and [hat loo- ower±aE suppi;ad ie uNt Empie Public al ,dad, aid cecjy xae'ke gareral w�.rae%or aha11`careiEy that as lr4p3ral birdvoodB a_a 1+eing med by prima or %ub4bnt[ACtOr4 3n the —44d prujede,. SLIC714M 2. S7he t:;i CIork phaLl [ert_f� to the aduptiva a± tb~a Crsdlut: aPd c_rtiiy tb_e rata rd to be'a fulI truq. t�rre�t ca�7 eE the asti8r� t.tAeti, �_ . FASSEb an 5FPRMm tbill ` day, 0t Ogtobpr ATW�St M 217 v CiiQ. I 1 MIT MTHY chat Cha &Mgoina Pa401at_on 44t, duly 4dePt6a by ehm 4;Lty Cove,4ii of tha city of Banta CZarita a; a reS914C oeet"i thdreajo head on � Et "y o+ sober _ �.: 1# the Ca ua�iX by cha Zvi aleia atm of AVX8 a COUm1C$.1fi718MI �SE'li'tt �DIa�Cllit<337ID8RSe. gay TY Appy C 4 Purchasing Policy July 2010 Appendix D Page 3 APPENO D RESCUTIC� gO► a9-9$ RESOUTION 01F TZ -0 CIV COUNCIL OF 7XM AUMP-12ING THE STAZZ OF CBbMT,Iq j, 3`11112 TOIL M czw.y OF SAKA CLUITAL TYEZASp thl! $apartment of allumcal Ssrvltaa Of title 'state Of CaIIED " is a4t?aar aed t4 eco pmrch;biva of ee raaaC. or 3.appliel for local antitu* I such At the Cjt2r at 6ant& Clarital and mss. the CZty of Santa clarith vw1d zeamiv* aaom,a240 .tamefita -bg witha izing tba 'State of Califoraia to me$* 4 aeh pae; ehaa ®e . Nov. TEMMOU. Tai CITY Cowm OF m 0= Of $ A TION i b nut Lbs - Oface of FmqurameAt. . Departi mt. of legal. SQXv;LCea of ea StALM 0 1CLIa0miA, Jk# iurej�y authaxlud to par#taae certain mator±410. aigpliaa and ogixlgmmat f -air and CA behalf of th® C3tY of Santa Clarltk upon the taqus iat of dLa city uLums;. who Is lheioaby autharized mmA dLractad to a $$n am,d detivar oil sere 5 9 az7 re a ks sad ott*r docnmmts Ju c—Ajtj:tiogL r*aith for arkd ars beh&tr of tha City of Santa Cl2r3t4L. =r= fw m"t the Cit, Cidrk OWIIl:'barter to the ad pti= of this sa 2011#Ricm. P�Si July 4, JLPP8$VO AM AMM tbdA—,`11 1, '447 IMYOR AMOva L Purchasing Policy July 2010 Appendix E Page 1 1 1 I �EB$g C$RTEFY tftiat the fora going Rvaulat 4cm wAs -duof1Santa Cle<r�C�1tad bF meCit? C4ynfl�1. a#' tha City. --- 4t z regtt l ar mei ting thb! a cf, he.Ld 44 the _ $ t h diy of 10 +013aYiAg vote of tize IUQ'UaC3ithl $5: 0l�Cg ,g as cy. -FCcon z. ROXeCA., Ffeidt �853l7� CDgi1BB3t5 �ayec TY CLEBi� • Purchasing Policy July 20M Appendix E Page 2 :DAME! Of -Comp . f -Comp. �W7' 0.Ad. '44�P1r�:p4IL1`,}dLl i E1�jGt. ���5�. {�az�1,� �!� ��e.(� �.JI►�� � c�l[m-.,s 1�•�cr�;uu�an -� �ar:���p��t�an:ba3e�] rne,tha tpe:f rn�r:°fal+or ,o$;n.le as: �x+tfl s,::e aal,t, ]I�r ad • nr eine � �qu�t•�:i, Qr b�d�;Cr,�®aklt�,ft q�iexe aoa� r tins c��fi tcr.ozl;gl�c+� - tlt ti tic ent� Qf t � S 1. a id►►at t larder; �o --true,Aatd "pi jb b ucc�aslr . j adti�e�useir np:cAan c mimn ng flM: 4d mulcple. e�,ci�i :a�letgt$ dQ[Sk am. �!t>t�991itk� - maatC�lCt:4.� Wind t� Ayprws�i�r4���xitbi�t�:�Ds� sm�FI�C �g�tmcc�+dc+rea]uc':r1�c•e��►noG�a u�ac�C+s�d 5i:vaat°:�ypi�aly: �iwg vt�ilJt ltiu�c;;�g, rd[tloor3:,tgs:rn� a 3rse�J.�s'�p��l:;a�nd st�l�'involuted`iu�ty�a�i�x�rct'�+�•�s.�r�fir�citl�r.Yl�xx�it� 'Ih .�rlra�vp .......CiteJC's prili�vr o€c rn ctia n-9s'1a, s tac �5ay.r ties t� :b . Ydlut°:;Tb,if",9: rmde�e�r; pun Ml,g:sr�i�obTt°��,iW.'�y. ser�cs ��1�d5:!?a:reC171��r��:ti�iis:E�. 9G i Ct116i "��Itg O�GT�° ldl tBiiif 63135 y WS'l Lj1 C[T4'lut` r►�paeative asr��,a9!��terle9:�tmQ gna�ae9=sg�9n� t�at��i,t;�'e c4�ux�e�,'1�t ley anaRhee-��Vrt�uaci►t, t�prncp �'P�6'gYe�r6�� Purchasing Policy July 2010. . Appendix F Page 1 a ttlr . APPENDIX G 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 businessestdlocate>�and remaihVithih 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: r.. .. m 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 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-iimits 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 Informal 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 C ,.9.. ...' i'.'t. I 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 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 forceandeffect thirty (30) day's from its passage and adoption. Section 10. That the City Clerk shall certify to the passage of this Ordinance and shall cause it to be published as required by law. O Purchasing Policy July 2010 Appendix G Page 4 7 akp 4 FASSED, APPRO\7M AND ADOPTEJT I)jU N'dav of Air". YQR AMM b< ni -Y rj= &I'ATY . OF CAIORNIA CO L) N T Y (T LOS AGE LE- CrIV 0 I- S A NJ,'--% CU--'L%TA ti (:Sh.myn U. Dxxs4m. a -IC. C'L,, Cktl of to U -v du.iujcb'.'ec,:,,jfy:hat the f=S�;; n.K Or:UrorrS4 No. C4 --i vel'S.-mr-A-d-v jar-&-,21arij ?Lazed upCI) 6% ­.r'�t -,acing ar.-. Iquiar nen;,,rj the City Council im clto 25"'e -z -y ar klw", 20&1. Omlftze, said Qffin;!rwe w4 cb;�Y Passed EAd adLF,Lud;:. ZL Erplu maing kif the Cie ,• Coulici I em the Ht d2v n' jL11C, 41X:4: *-.v He follcmeing to W- L: KIM: "-OES! COLINCILINT17KN=- Mme AMEND CQT.NC.IT."dr-bMMS! Nurse C. ry €:j -ER K I Purchasing Policy July 2010 Appendix Page N J C; 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 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: 13 purchase products that minimize environmental impacts, toxics, pollution, and hazards to worker and community safety to the greatest extent practicable, a 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, o 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 1 C 0 adopt Environmentally Preferable Purchasing (EPP) processes in support of the City's Sustainability Plan, and o 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: o conserve natural resources, 0 minimize environmental impacts such as pollution and use of water and energy, o eliminate or reduce toxics that create hazards to workers and our community, 0 support strong,recycling •markets, o reduce materials that are landfilled, 0 identify environmentally preferable products and distribution systems, o increase the use and availability of environmentally preferable products that protect the environment, 0 reward manufacturers and vendors that reduce environmental impacts in their production and distribution systems, 0 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:. o electronic communication instead of printed media, o double -sided photocopying and printing; 0 washable and reusable dishes and utensils, o rechargeable batteries, 0 streamlining and computerizing forms, Purchasing Policy July 2010 . Appendix,H Page 2 o electronic.and "online" publishing via CD, Internet and intranet, o "on -demand" printing of documents and reports as they are needed and where electroiiic publishing would be unsatisfactory, o leasing long -life products when service agreements support maintenance and repair rather than new purchases, such as carpets, o sharing equipment and occasional use items such as chippers, o choosing durable products rather than disposable, o reducing product weight or thickness when effectiveness is not jeopardized in products such as, but not limited to, paper and plastic liner bags, o buying in bulk, when storage and operations exist to support it and balanced with the costs of inventory management, o 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: o copiers and printers capable of duplexing, o battery-operated equipment capable of being recharged or using rechargeable batteries, o dishwashing equipment, when washable and reusable dishes and utensils are practicable, o 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 and long-term costs include, b6t'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 (R'MAN). These programs are updated, periodically to identify categories of material for which. there are recycled content alternatives and the recommended recycled contents. 3.2.2 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., 3.2.3 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' Wil 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 http://api- eep.api.org/quality/iRdex.cfm 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 janitor=ial,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 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: o 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 Purchasing Policy July 2010 Appendix H Page 5 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. a Prohibiting purchase of products that use polyvinyl chloride (PVC) such as, but 'not 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 thatcontain 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 indtistry'trends}towards rnor.&'&j! i" ronineritally'frier dly'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 acid 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*Manageinent 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,Cityof Santa Clarita shall.purchase high efficiency space cooling equipment witl'�.: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 66- issionirig'is'sues within one year of Iprojectcompletion, and'providebuilding 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 Designs (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 LEEDd 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 LEEDS 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. L 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 orenvironmentally 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 managementpractices whenever ,�_ possible, including: o The use of Integrated Pest Management (IPM), including minimal pesticide use is encouraged. o Grasscycling (leaving -the clippings on the lawn) or mulching mowers is required for at least 50% of all mowings. o Pruning„shall be done on.an as;need­I._'7:____d basis. Thinning,is.,the preferred . . method of pruning. Minimal heading or shearing is encouraged. 0 Fertilizing should be done on an as needed basis, as indicated by a soil analysis. Slow release and/or organic fertilizers are preferred. to Irrigation scheduling based on weather (evapo'transpiration rates) is required _whenever possible. Drip irrigation is preferred whenever practical. a 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. a 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 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 Agrict ltural: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'Electroriics ` " , . . 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 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.architeci, 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 significantl, ..,reduce the -amount ofudioxins..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.energystar.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.or /hg tml/). 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.us bg corg. 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 'Treconsumer 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 scrap, or broke which is generated at a manufacturing site and commonly reused on-site in thesame or. anothermanufacturing 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 (htti)://www.oehha.ca.gov/prop65.html). 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://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 - PRIORI -TIES " 5.1 The health: and:safety of workers and citizens is of utmost importance and takes precedence over 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 suecess furrecycling systemand.recogmzes`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: o evaluating opportunities for substituting environmentally preferable products, o designing and implementing programs and processes for increasing the purchase of environmentally preferable products, o educating managers and, staff about City of Santa Clarita's. Environmentally Preferable Purchasing Program,. o ensuring that purchasing documents, specifications, and contracting procedures do not contradict each other and do not deter or inhibit the Purchasing Policy July 2010 Appendix H Page 12 purchase of environmentally preferable products, to providing information to facilitate the evaluation and purchase of environmentally preferable products, including identifying appropriate products and sources and providing technical assistance, a evaluating obstacles to purchasing such products in order to create solutions, and. ` o 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 purcha"sing'att'ributes'irf Writing Thin` requirement`for certification applies to products for which the vendor or successfulbidder 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 L 1 5 products purchased. Reports should relate progress in meeting the objectives of this:P.olicv,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-anybarriers encountered in procurement of environmentally preferable products °recommendations'for resolution, and/or description of assistance needed for overcoming the obstacles. SECTION, 8.0 - EFFECTIV'E 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. TNe City Clerk shall certify to'the adoption of this Resolution. PASSED, APPROVED AND ADOPTED this 23 day of August, 2005. ATTEST: CITY CLERK Purchasing Policy July 2010 MAYOR Appendix H Page 14 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'Clarita 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 1 11 Purchasing Policy July 2010 Appendix H Page 15 1 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 m 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 ATTACHMENT Sample Procurement Determination Form Item: ------—__- ---- - — -- -- This item is required to meet Environmentally Preferable Purchasinc guidelines as described in 'Resolution XX -XX. have considered tree Environmentally Preferable Purchasing guidelines and searched for 'Product or service optionsthat meet them. _ Compliance with Resolution XX -XX was not attainable for this purchase because: Iterri 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 - 1 Purchasing Pdicy Juiv 2010 Appendix H Page 17