HomeMy WebLinkAboutResolution 69-92 RESOLUTION NO. 69-92
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ATASCADERO ADOPTING
CITYWIDE PURCHASING PROCEDURES
WHEREAS, a centralized purchasing system is necessary to
establish efficient procedures for the purchase of supplies and
equipment, to secure supplies at the best price, to exercise
positive financial control over purchases and to define authority
and responsibility for the purchasing function.
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ATASCADERO:
Section One: That the attached Procurement and Purchasing
Manual is included as a part of this resolution and is hereby
approved, effective September 1, 1992.
On motion by Councilperson Luna, seconded by Councilperson
Kudlac, the foregoing resolution is hereby adopted in its
entirety on the following roll call vote:
AYES: Councilmembers Borgeson, Bewley, Luna, Kudlac and Mayor
Nimmo
NOES: None
ABSENT: None
ADOPTED: August 11, 1992
CITY OF ATASCADERO
By:
T
ROBERT P. NIMMO, Mayor
ATTEST
Azo
LEE RABOIw, Ci. y Clerk
APPROVED AS TO FORM:
ART ER MONT DON, ity Attorney
PROCUREMENT
AND
PURCHASING
MANUAL
AUGUST, 1992
PROCUREMENT AND PURCHASINGf MANUAL
TABLE OF CONTENTS
Procedure Page
Enabling Resolution 69-92
Flowchart - Purchasing System
1. Basic Purchasing Procedures . . . . . . . 1
2. Formal Bidding Procedures . . . . . . . . . . 5
3. Centralized Purchasing Procedures . . . . . . . . . . . 7
4. Contracting Procedures . . . . . . . . . . . . 8
5. Signature Authorization Procedures. . . . 11
6. Special Purchasing Incentives . . . . . . . . . . . . 12
7. Public Works Bidding . . . . . . . . 14
8. Fixed Assets Procedures . . . . . . . . . . .18
9. Petty Cash/Credit Card Procedures . . . . . .20
10. Budget Administration Procedures. . . . . . . . . .22
11. Travel and Training Policy and Procedures . . . . .26
12. Employee Recognition Policy and Procedures. . . .30
a:tblecont
#14
CITY OF ATASCADERO
BASIC PURCHASING PROCEDURES
Section One: Objectives
1. 1 To encourage the most economical method of procuring goods
and services.
1.2 To define the roles and responsibilities of the various
departments involved.
1.3 To assure proper documentation of purchases, consistent with
Generally Accepted Accounting Principles (GAAP) and State
and local laws.
1.4 To assure purchases are made within the constraints of
approved budgeted appropriations.
Section Two: Departmental Responsibilities
2. 1 To submit completed forms on a timely basis, with all
necessary documentation, in order to requisition items
through the Purchasing Office.
2.2 To provide additional documentation, generally in the form
of a memo, in the event of a reasonable variation from these
procedures.
2.3 To utilize open and competitive bidding procedures to gain
the best price.
2.4 To review the status of Departmental budgets.
Section Three: Finance (Purchasing Office) Responsibilities
3.1 To facilitate Departmental operations as they relate to
purchasing, while considering the objectives set forth
above.
3.2 To process paperwork in a timely manner.
3.3 To supply Departments with confirmation of purchases on an
individual and summarized basis.
3.4 To establish detailed procedures implementing these general
directives and to provide the necessary training to assure
their proper implementation.
3.5 To monitor exceptions to these procedures in order to
identify possible training needs or procedural problems.
UPDATED: 8/92
3.6 It is not Finance's responsibility to challenge Departmental
purchases, except as spelled out in these procedures or
other established City policies.
Section Four: City Manager Responsibilities
4.1 The City Manager is responsible for assuring Citywide
purchasing procedures are complied with, and will resolve
any dispute that may arise between Finance and any operating
Department(s) .
Section Five: Purchases Under Five Hundred Dollars
5. 1 Purchases under $500.00, but not with a routine vendor, do
not require competitive bidding. Departments are given
considerable discretion in these purchases.
5.2 The dollar limit is $500.00 per item. If the item consists
of several components that typically are sold as a set, the
$500.00 limit applies to the total value of all the
components.
5.3 Departments will submit a requisition to Finance for the
items or services needed, indicating the recommended vendor.
Finance will check the requisition for compliance with
established City procedures and issue a Purchase Order to
the respective department. It will then be the Department' s
responsibility to acquire the item or service, and submit
the bill to Finance for payment.
5.4 Unless exceptions exist, Finance will 'process the
requisition within two working days. In the event of an
emergency, a Department Head may purchase an item under
$500.00 without an approved Purchase Order. In this-
instance, a brief explanation in writing will accompany the
bill for payment.
Section Six: Informal Bidding
6.1 Informal bidding is used to assure the most competitive
price is received for an item, while avoiding the additional
time and expense involved in formal bidding.
6.2 Informal bidding is to be used to purchase items greater
than $500.00 and less than $7,500.00. Informal bidding
should also be used for items under $500.00 when several
vendors are available for comparison shopping.
6.3 Use the standard Purchase Order (Requisition) form for the
actual requisition (Exhibit A) ; use the Request for
Quotations form to solicit bids (Exhibit B)
UPDATED: 8/92
6.4 Procedures
(a) If the item to be purchased is a minor capital outlay,
then there should be prior authorization. This is
assured either through the annual budget process or by
the City Manager, subject to verification by Finance
that sufficient appropriations exist in the
Department's budget.
(b) The Department receives at least three bids either in
writing or over the phone. If over the phone, note the
date and time of the call, and the person' s name that
gave the quote.
(c) Based on the bids received, the Department identifies
the most responsive bid. The Department prepares a
requisition, recommending the selected vendor. The
remaining bids and any other supporting documentation
shall be attached to the requisition, and routed to
Finance.
(d) Finance will check the requisition for compliance with
established City procedures and issue a Purchase Order
to the respective Department. It will then be the
Department's responsibility to place the order. Unless
exceptions exist, Finance will process the requisition
within two working days of receipt.
(e) Items are generally shipped to the Department, with the
invoice mailed directly to Finance. This expedites the
bill-paying process. Once the item has been received,
the Department is to acknowledge receipt and approve
the invoice for payment.
Section Seven: Open Purchase Orders
7.1 Open Purchase Orders establish a "line of credit" with
vendors that Departments do business with on a regular
basis. As such, they facilitate the purchase of routine
items while reducing the amount of paperwork involved.
7.2 Open Purchase Orders can be used for items up to $540.04.
7.3 Use the Open Purchase Order form to encumber funds with each
vendor. (Exhibit C) The form establishes the maximum
amount of the order, the typical items to be purchased, the
maximum amount of any one item purchased; the authorized
individual(s) who can sign for purchases, and finally, terms
and conditions for payment.
UPDATED: 8/92
7.4 Procedures
(a) The Department prepares the Open Purchase Order form
and routes to Finance.
(b) Finance processes the order; encumbers the funds and
sends confirming copies of the P.O. to the Department
and the Vendor.
(c) Authorized employees make purchases and turn the
receipts in to their Departments.
(d) The Department reviews the receipts to verify that the
purchase was appropriate and that the Purchase Order
and account number are on the receipt. The receipts
are then forwarded to Finance.
(e) Finance reconciles the receipts to the vendor's monthly
statement and makes payment.
(f) A monthly Outstanding Encumbrance Report is distributed
to the Departments to review their Open Purchase Order
(and any other encumbered) balances.
(g) In the event a particular Open Purchase Order balance
is too low for further use, or if a remaining balance
exists at the end of the fiscal year, the Department
will so note and sign off its original confirming copy.
The copy will be sent to Finance so the encumbrance can
be released. As necessary, the Department will then
prepare a new Open Purchase Order.
Section Eight: Minor Bills/Ongoing Expenses
8.1 Items that cannot be purchased under the procedures above, .
or ongoing expenses for utilities or services (such as
telephones, service agreements, etc. ) do not require a
Purchase Order. The bill or invoice should be forwarded to
Finance with an authorized signature and account number to
charge.
8.2 If there is any doubt as to whether a specific item or
service should be requisitioned or purchased outright, the
Department should contact Finance directly.
UPDATED: 8/92
CITY OF ATASCADERO
BASIC FORMAL BIDDING4 PROCEDURES
Section One: Objectives
1.1 Formal Bidding is designed to assure all possible vendors
are given the opportunity to bid on major City purchases,
thereby assuring the City that it has received the most
competitive price. The formal process generally takes more
time and expense than informal bidding, and in some
instances, may actually not be the most cost-effective
approach.
Section Two: Procedures
2. 1 Formal bidding is required for the purchase of items over
Seventy-five Hundred Dollars ($7,500.00) . As with informal
bidding, items under $7,500.00 may also be formally bid. In
addition, items that are logically sold as a set should not
be bid separately only to avoid formal bidding.
2.2 Formal bidding requires use of a Notice to Accept Bids form,
a description of the product specifications, and the actual
bid form itself (Exhibit A) . After the bidding process is
complete, a standard Purchase Order form will be used to
encumber the amount of the purchase.
2.3 Step-by-Step Procedures
(a) The Department has, or receives, authorization to
purchase an item requiring formal bidding.
(b) The Department prepares the specifications for the
product.
(c) The specifications are routed to Finance for non-
technical review. This involves reviewing insurance
requirements, terms of payment, and other standard
language/format. As appropriate, the City Attorney may
also review the specifications.
(d) Finance will work with the City Clerk to facilitate the
bidding process. This includes assigning a bid number,
assuring legal notices are done in a timely manner, all
interested bidders have been notified and any other
advertising that may be appropriate. Departments are
encouraged to supply as many potential vendor names as
possible.
(e) Sealed bids will be mailed or delivered to the City
Clerk only. Faxed bids are not acceptable.
UPDATED: 8/92
(f) After the deadline, the City Clerk will open the bids,
tabulate the results and forward the information to
Finance and the appropriate Department.
(g) The Department Head will prepare a report to Council
recommending the most responsive bidder. Generally,
this is the lowest bid. However, there may be
circumstances which warrant someone other than the
lowest vendor. These circumstances will be explained
in the Department's report to Council.
(h) Upon Council's award, the Department Head will prepare
a purchase order requisition and attach a copy of
Council's award of bid, and route to Finance for
encumbering of funds. Once encumbered, the purchase
order will be routed back to the requesting department
for further processing/ordering.
2.4 When preparing a Request for Proposal (RFP) or a formal
bid, include a brief statement of what the Department is
expecting as a finished product or service. Include a
description of the current inventory or other conditions
within the department, as appropriate. When developing
specifications, care must be taken that, on the one hand,
they are not so specific that only one vendor could qualify,
while on the other, they are not so broad that a meaningful
comparison between two or more vendor's product is
impossible.
Section Three: Exceptions to Formal Bidding
3.1 In emergency situations where time is of the essence.
However, immediately after the emergency, the appropriate
Department Head shall prepare a memo to Council explaining
the emergency.
3.2 Only one known supplier is available. In this situation,
the appropriate Department Head shall prepare a report for
Council approval requesting an exemption from the formal
procedures.
3.3 There exists other governmental contracts that were
competitively bid (such as the State Vehicle Contract) that
the City is eligible to use, in lieu of a formal bid.
3.4 There are extenuating circumstances that would make formal
bidding not the most cost-effective approach. This often
relates to qualitative or artistic issues. The appropriate
Department Head shall prepare a report to Council,
explaining the circumstances.
a:bidding
UPDATED: 8/92
CITY OF ATASCADERO
CENTRALIZED PURCHASING
section One: Policy
1. 1 The purchase of certain office products and services are
more economically acquired if the purchase is centralized.
Such a policy encourages volume discounts, the development
of expertise regarding the products and services, and the
ability to identify the most cost-effective suppliers.
Section Two: Procedures
2. 1 The Finance (Purchasing) Office will continue to develop and
maintain a catalogue of office supplies, products, equipment
and services that are to be centrally purchased.
2.2 On a quarterly basis, departments are to submit requisitions
for all applicable office products and supplies expected to
be needed during the next quarter. These requisitions will
be consolidated in order to gain the best price. Once
delivered, the items will be routed to the respective
departments. Each Department shall be charged for its share
of the order.
2.3 During the quarter, requisitions may be submitted to restock
any office supplies provided by Purchasing. As with the
quarterly requisition, departments will be charged for the
supplies they order.
2.4 Items may be added or removed from the catalogue, based on
either requests from departments or upon a review and
analysis by Finance.
a:centralized
#14
UPDATED 8/92
CITY OF ATASCADERO
CONTRACTING PROCEDURES
Section One: Objectives
1.1 To assure that the best price and terms are negotiated
for the use of consultants and/or contractors.
1.2 To provide uniformity in contract language to best
protect the City's interests.
1.3 To supplement other City procedures as they relate to "
the handling of contracts and professional services.
Section Two: Policy and Definition
2. 1 Professional and other contract services should be used
when it is in the City's best interests, such as when
outside professionals will be less expensive than in-
house staff; a project or study is of a limited
duration, not warranting permanent staff; or existing
staff is unavailable to undertake the project or lack
the expertise and/or ability necessary.
The use of outside professional services should be
related to Council-approved policies or projects.
2.2 Professional Services shall include, but not be limited
to, those services by independent contractors, such as
architectural, consultant, design, engineering,
environmental, economic, financial, planning or other
services requiring specialized abilities.
Section Three: Use of Standard Contract
3.1 The Standard Contract Form (Exhibit I) , as revised from
time to time, will be used by each department when
negotiating a contract for professional services.
3.2 Instructions for completing the form
a. All blanks are to be filled in and all applicable
exhibits completed and attached.
b. The date executed is the date the contract will go
to the City Council for approval (or the date signed
by the appropriate manager, if Council approval is not
required) .
c. Regarding Section 2.05 Insurance - use the
guidelines of Exhibit II (Insurance Standards) , or
UPDATED: 8/92
check with the Risk Manager for specific insurance
requirements.
d. Regarding Section 4.01 - Termination On Notice -
determine if the time line should be 30, 60 or 90 days.
Check with the City Attorney if in doubt.
e. Regarding Section 4.04 Termination - this is
optional and would only be used in particular instances
where a specific termination date is desired or
necessary.
f. Regarding Section 5.00 - Special Provisions -- this
is also optional and would be used when peculiar or
specialized abilities are required.
3.3 If the contract has extraordinary specifications or
there are unusual circumstances involved in the
contract, consult the City Attorney beforehand. See
also section 6.1 of this procedure.
Section Four: Bidding Procedures
4. 1 The appropriate Department is responsible for
developing specifications. A copy of the draft
contract is to be included as part of the Request For
Proposal (RFP) or bid package.
4.2 If the anticipated cost is under $10,000, informal
bidding procedures may be used, which involves
soliciting at least three (3) quotes, either by phone
or in writing. If the quote is _received over the
phone, the price, terms, date and time of the call, and
the person making the quote must be noted on the
Request for Quote Form.
4.3 Formal bidding is required for services expected to
exceed $10,000. Standard Formal bidding procedures
shall apply.
4.4 For Service/Maintenance agreements related to unique or
customized services, such as computer software, or to
protect warranty provisions, it may be necessary to
utilize a specific vendor. In such instances, formal
or informal bidding would not apply. The standard
contract would still be used, and a written explanation
for use of a single source shall be attached to the
contract. All other provisions of Section 5. 1 shall be
complied with. If the value of the contract exceeds
$10,000 approval by Council shall also be required. If
the standard contract is unacceptable to the vendor,
the City Attorney should be consulted.
UPDATED: 8/92
4.5 If the contract involves a Public Works Project, the
existing Public Works Projects procedures shall apply.
Section Five: Awarding the Contract
5.1 Instructions for informal bidding
a. Department Head prepares the contract and obtains a
contract number from the City Clerk. All supporting
documentation (e.g. , other quotes) shall be included.
b. The Department Head (or City Manager) approves the
contract and signs at least two (2) originals.
c. Once the vendor has signed both copies, they are
routed to the City Clerk, who will certify both
documents. One original will be forwarded by the City
Clerk to the vendor; the second will be kept on file
with the Clerk.
d. A copy of the fully executed contract will be
routed to the appropriate Department and to Finance.
5.2 Instructions for formal bidding
a. Once all bids have been received and the Department
Head recommends a specific vendor, he/she will obtain a
contract number from the City Clerk and prepare two
original contracts. The vendor should sign both
documents prior to submitting the item for Council
approval.
b. In addition to the vendor, the City Attorney,
Finance Director and City Manager (as appropriate)
shall review and sign both `copies of the contract,
prior to Council action.
c. If Council makes the award, the City Clerk will
have the Mayor sign both copies, certify both copies
and send one original to the vendor. The City Clerk
will then route a copy of the fully executed contract
to the appropriate Department Head and to Finance.
Section Six: Special Circumstances
6.1 Under unusual circumstances, or when a new service is
being contracted, a team approach towards negotiating
the agreement should be used, which would involve a
variety of individuals, such as the Finance Director,
Department Head and City Attorney, as appropriate.
UPDATED: 8/92
Exhibit A Contract No.
AGREEMENT FOR SERVICES OF CONTRACTOR
or
CONSULTANT SERVICES AGREEMENT
This agreement is made upon the date of execution, as set
forth below, by and between ,
a , hereinafter referred to as
"Contractor", and the City of Atascadero, California, a Municipal
Corporation, hereinafter referred to as "City". The parties
hereto, in consideration of the mutual covenants contained
herein, hereby agree to the following terms and conditions:
1:00 GENERAL PROVISIONS
1.01 TERM: This agreement will become effective on the date
of execution set forth below, and will continue in effect
until terminated as provided herein.
1.02 SERVICES TO BE PERFORMED BY CONTRACTOR: Contractor
agrees to perform or provide the services specified in
"Description of Services attached hereto as "Exhibit A"
hereby incorporated herein.
Contractor shall determine the method, details and
means of performing the above-referenced services.
Contractor may, at Contractor's own expense, employ
such assistants as Contractor deems necessary to perform the
services required of Contractor by this agreement. City may
not control, direct or supervise Contractor' s assistants or
employees in the performance of those services
1.03 COMPENSATION: In consideration for the services to be
performed by Contractor, City agrees to pay Contractor the
consideration set forth in the amounts and under the terms
provided in "Exhibit B", hereby incorporated herein.
2.00 OBLIGATIONS OF CONTRACTOR
2.01 MINIMUM AMOUNT OF SERVICE BY CONTRACTOR: Contractor
agrees to devote the hours necessary to perform the services
set forth in this agreement in an efficient and effective
manner. Contractor may represent, perform services for and
be employed by additional individuals or entities, in Con-
tractor's sole discretion, as long as the performance of
these extra-contractual services does not interfere with or
presents a conflict with City' s business.
Revised 6/92 1
2.02 TOOLS AND INSTRUMENTALITIES: Contractor shall provide
all tools and instrumentalities to perform the services
under this agreement except those listed in "Tools and in-
strumentalities provided by City" attached hereto as
"Exhibit C" and hereby incorporated herein.
2.03 WORKER'S COMPENSATION AND OTHER EMPLOYEE BENEFITS:
City and Contractor intend and agree that Contractor is an
independent contractor of City and agrees that Contractor
and Contractor's employees and agents have no right to work-
er's compensation and other employee benefits. If any worker
insurance protection is desired, Contractor agrees to
provide worker's compensation and other employee benefits,
where required by law, for Contractor's employees and
agents. Contractor agrees to hold harmless and indemnify
City for any and all claims arising out of any claim for
injury, disability, or death of any of Contractor and Con-
tractor's employees or agents.
2.04 INDEMNIFICATION: Contractor hereby agrees to, and
shall, hold City, its elective and appointive boards, of-
ficers, agents and employees, harmless and shall defend the
same from any liability for damage or claims for damage, or
suits or actions at law or in equity which may allegedly
arise from Contractor's or any of Contractor' s employees' or
agents' operations under this agreement, whether such opera-
tions be by Contractor or by any one or more persons direct-
ly or indirectly employed by, or acting as agent for, Con-
tractor; provided as follows:
a. That the City does not, and shall not, waive any rights
against Contractor which it may have by reason of the
aforesaid hold-harmless agreement, because of the
acceptance by City, or the deposit with City by
Contractor, of any of the insurance policies
hereinafter described.
b. That the aforesaid hold-harmless agreement by
Contractor shall apply to all damages and claims for
damages of every kind suffered, or alleged to have been
suffered, by reason of any of the aforesaid operations
of Contractor or any agent or employee of Contractor
regardless of whether or not such insurance policies
shall have been determined to be applicable to any of
such damages or claims for damages.
2.05 INSURANCE: Contractor shall not commence work under
this contract until s/he shall have obtained all insurance
required under this section and such insurance shall have
been approved by City as to form, amount and carrier:
Revised 6/9.2 2
a. Public Liability and Property Damage Insurance.
Contractor shall take out and maintain during the life
of this contract such public liability and property
damage insurance as shall protect City, its elective
and appointive boards, officers, agents and employees,
and Contractor and any agents and employees performing
work covered by this contract from claims for damages
for personal injury, including death, as well as from
claims for property damage which may arise from
Contractor's or any subcontractor's operations under
this contract, whether such operations be by Contractor
or by anyone directly or indirectly employed by
contractor and the amounts of such insurance shall be
as follows:
(1) Public Liability Insurance.
In an amount not less than $ for
injuries, including, but not limited to death to
any one person and, subject to the same limit for
each person, in an amount not less than
$ on account of any one occurrence;
(2) Property Damage Insurance.
In an amount of not less than $
for damage to the property of each person on
account of any one occurrence.
(3) Comprehensive Automobile Liability.
Bodily injury liability coverage of $
for each person in any one accident and
$ for injuries sustained by two or
more persons in any one accident. Property damage
liability of $ for each accident.
(4) Worker's Compensation insurance.
In the amounts required by law as set forth in
Section 2.03 above.
b. Deductibles and Self-Insured Retentions:
Any deductible or self-insured retention must be
declared to, and approved by, the City. The City may
require that either the insurer reduce or eliminate
such deductibles or self-insured retentions as respects
the City, its elected or appointed officials,
employees, agents or volunteers; or the contractor
shall procure a bond guaranteeing payment of all
dosses, and related investigation, claims
administration and legal expenses.
Revised 6/92 3
c. . Proof of Insurance.
Contractor shall furnish City, concurrently with the
execution hereof, with satisfactory proof of carriage
of the insurance required, and adequate legal assurance
that each carrier will give City at least thirty (30)
days' prior notice of the cancellation of any policy
during the effective period of this contract. The
certificate or policy of liability of insurance shall
name City as an additional insured with the Contractor.
3.00 OBLIG4ATIONS OF CITY
3.01 COOPERATION: City agrees to comply with all
reasonable requests of Contractor necessary to the
performance of Contractor's duties under this agreement.
3.02 PLACE OF WORK: City agrees to furnish space for use
by the Contractor while performing the services described in
this agreement only as set forth in "Exhibit D", hereby
incorporated herein. Any work space requirements not set
forth in "Exhibit D" shall be the responsibility of
Contractor, and Contractor may use alternate space for
performing described services.
4.00 TERMINATION OF AGREEMENT
4.01 TERMINATION ON NOTICE: Notwithstanding any other pro-
vision of this agreement, any party hereto may terminate
this agreement, at any time, without cause by giving at
least (30) (60) (901 days prior written notice to the other
parties to this agreement.
4.02 TERMINATION ON OCCURRENCE OF STATED EVENTS: This
agreement shall terminate automatically on the occurrence of
any of the following events:
( 1) Bankruptcy or insolvency of any party;
(2) Sale of the business of any party;
(3) Death of any party;
(4) The end of the (30) (60) (901 days as set forth in
Section 4.01;
(5) End of the contract to which Contractor's services were
necessary; or
(6) Assignment of this agreement by Contractor without the
consent of the City.
Revised 6/92 4
4.03 TERMINATION BY ANY PARTY FOR DEFAULT OF CONTRACTOR:
Should any party default in the performance of this agree-
ment or materially breach any of its provisions, a non
breaching party, at their option, may terminate this agree-
ment, immediately, by giving written notice of termination
to the breaching party.
4.04 TERMINATION: This Agreement shall terminate on
unless extended as set forth in this
Section. The City, with the agreement of the Contractor, is
authorized to extend the term of this Agreement beyond the
termination date, as needed, under the same terms and condi-
tions set forth in this Agreement. Any such extension shall
be in writing and be an amendment to this Agreement.
5.00 SPECIAL PROVISIONS
(Optional)
6.00 MISCELLANEOUS
6.00 REMEDIES: The remedies set forth in this agreement
shall not be exclusive but shall be cumulative with, and in
addition to, all remedies now or hereafter allowed by law or
equity.
6.01 NO WAIVER: The waiver of any breach by any party of
any provision of this agreement shall not constitute a con-
tinuing waiver or a waiver of any subsequent breach of this
agreement.
6.02 ASSIGNMENT: This agreement is specifically not
assignable by Contractor to any person or entity. Any
assignment or attempt to assign by Contractor, whether it be
voluntary or involuntary, by operation of law or otherwise,
is void and is a material breach of this agreement giving
rise to a right to terminate as set forth in Section 4.03.
6.03 ATTORNEY FEES: In the event of any controversy, claim
or dispute between the parties hereto, arising out of or
relating to this agreement, or the breach thereof, the pre-
vailing party shall be entitled, in addition to other such
relief as may be granted, to a reasonable sum as and for
attorney fees
Revised 6/92 5
6.04 TIME FOR PERFORMANCE: Except as otherwise expressly
provided for in this agreement, should the performance of
any act required by this agreement to be performed by either
party be prevented or delayed by reason by any act of God,
strike, lockout, labor trouble, inability to secure
materials, or any other cause except financial inability not
the fault of the party required to perform the act, the time
for performance of the act will be extended for a period of
time equivalent to the period of delay and performance of
the act during the period of delay will be excused; pro-
vided, however, that nothing contained in this Section shall
exclude the prompt payment by either party as required by
this agreement or the performance of any act rendered dif-
ficult or impossible solely because of the financial condi-
tion of the party required to perform the act.
6.05 NOTICES: Except as otherwise expressly provided by
law, any and all notices or other communications required or
permitted by this agreement or by law to be served on or
given to any party to this agreementshall be in writing and
shall be deemed duly served and given when personally deliv-
ered or in lieu of such personal service when deposited in
the United States mail, first-class postage prepaid to the
following address for each respective party:
PARTY ADDRESS
A. CITY OF ATASCADERO 6500 Palma Avenue
Atascadero, CA 93422
Attention: ( Department )
B. (Contractor)
6.06 GOVERNING LAM: This agreement and all matters
relating to this agreement shall be governed by the laws of
the State of California in force at the time any need for
the interpretation of this agreement or any decision or
holding concerning this agreement arises.
6.07 BINDING EFFECT: This agreement shall be binding on
and shall inure to the benefit of the heirs, executors, ad-
ministrators, successors and assigns of the parties hereto,
but nothing in this Section shall be construed as a consent
by City to any assignment of this agreement or any interest
in this agreement.
Revised 6/92 6
6.08 SEVERABILITY: Should any provision of this agreement
be held by a court of competent jurisdiction or by a legis-
lative or rulemaking act to be either invalid, void or unen-
forceable, the remaining provisions of this agreement shall
remain in full force and effect, unimpaired by the holding,
legislation or rule.
6.09 SOLE AND ENTIRE AGREEMENT: This agreement constitutes
the sole and entire agreement between the parties with
respect to the subject matter hereof. This agreement
correctly sets forth the obligations of the parties hereto
to each other as of the date of this agreement. All
agreements or representations respecting the subject matter
of this agreement not expressly set forth or referred to in
this agreement are null and void.
6.10 TIME: Time is expressly declared to be of the essence
of this agreement.
6.11 DUE AUTHORITY: The parties hereby represent that the
individuals executing this agreement are expressly
authorized to do so on and in behalf of the parties.
6. 12 CONSTRUCTION: The parties agree that each has had an
opportunity to have their counsel review this agreement and
that any rule of construction to the effect that ambiguities
are to be resolved against the drafting party shall not
apply in the interpretation of this agreement or any
amendments or exhibits thereto. The captions of the
sections are for convenience and reference only, and are not
intended to be construed to define or limit the provisions
to which they relate
6. 13 AMENDMENTS: Amendments to this agreement shall be in
writing and shall be made only with the mutual written
consent of all of the parties to this agreement.
Revised 6/92 7
Executed on , 199_, at Atascadero,
California.
Attest: CITY OF ATASCADERO
By:
LEE RABOIN ALDEN F. SHIERS
City Clerk Mayor
010
Approved as to form: S
-
25
�1�p
ART MONTANDON, otic Y Contractor
City Attorney SQti
Approved as to form:
MARK JOSEPH
Administrative Services Director
Revised 6/92 8
EXHIBIT A
PROFESSIONAL SERVICES TO BE
PERFORMED BY THE (CONTRACTOR) (CONSULTANT)
Contractor shall provide consultation and professional
management services to City as follows:
Revised 6/92 9
EXHIBIT B
CONSIDERATION FOR SERVICES
Contractor shall be paid as follows:
Revised 6/92 10
EXHIBIT C
TOOLS AND INSTRUMENTALITIES
PROVIDED BY THE CITY
Revised 6/92 11
EXHIBIT D
PLACE OF WORK
Revised 6/92 12
Exhibit B: Insurance Standards
Policy: The general policy when negotiating insurance
requirements in a contract is to match coverage with the
foreseeable risk, subject to certain minimum standards. Thus, a
$l million policy may be sufficient for a small construction job,
but a $5 million policy may be required for a major Public Works
project.
The guidelines below cover routine exposures. Unusual
circumstances should be approved by the City's Risk Manager,
prior to a contract being either signed by the
Contractor/Consultant or approved by the City.
Guidelines:
1. Either a copy of the insurance policy should be forwarded,
or a Certificate of Insurance supplied. If the latter, the
Certificate should list any exclusions, limitations and
deductibles The City should always be listed as an
additional insured, and an acknowledgement that the
contractor' s insurance will be the primary provider.
2. The minimum amount of coverage should be $1 million per
occurrence. Depending upon the riskiness of the project, a
higher level may be required.
3. In order to obtain the Risk Manager's approval of an amount
under $1 million, the Contractor/Consultant should be able
to cite extenuating circumstances, other than financial
hardship.
4. If professional liability (errors and omissions) Insurance
is required, an additional clause in the contract should be
included for this form of insurance. Coverage limits should
be commensurate with the potential risk involved.
Professional liability insurance is particularly important
for project engineering and design.
5. The acceptability of the provider is also a consideration.
Require that the Insurance Company have a Best Rating of
A:VII or higher. The lower the rating, the higher the
likelihood that the Insurance Company may not be able to pay
a potential claim.
6. Once the contract is executed, any problems with the
contract's implementation should be brought to the Risk
Manager's attention, in order to file a claim against the
company.
UPDATED: 8/92
CITY OF ATASCADERO
SIGNATURE AUTHORIZATION POLICY
Section One: Objective
1.1 To establish procedures that will avoid the unauthorized
expenditure of City funds.
Section Two: Procedures
2.1 On an annual basis, each Department Head shall complete and
forward to Finance, a Signature Authorization Form,
identifying those employees approved by the Department Head
to sign off on various financial, payroll and other
administrative documents. The form shall be developed by
the Finance Director and revised from time to time as
needed.
2.2 The form shall identify specific Departments, Divisions or
Programs, the employee's name and signature, and list
specific documents each employee is -- or is not --
authorized to sign. The information may be updated on a
more frequent basis, as circumstances warrant. It is the
Department Head's responsibility to keep the information
current.
2.3 Any documents missing the appropriate signatures) will be
returned to the originating department.
Section Three: Guidelines
3. 1 Only Regular or Probationary City employees are authorized
to sign off on documents obligating the City to expend
public monies. Temporary or Volunteer employees, or
individuals under contract with the City, may be able to
acquire items (under an open purchase order) but any
receipts must be countersigned by an authorized employee.
3.2 The number of authorized signatures should be kept to a
minimum, to assure better control over departmental
appropriations. Generally, authorization should be limited
to the Department Head, Division Managers and Supervisors.
3.3 In determining the level of authorization, the Department
Head should give consideration to the possible consequences
of the specific document. For example, Personnel Action
Forms (PAF's) affecting pay and benefits for employees
should be reserved to a Department Head only. Authorization
to requisition routine supplies, on the other hand, could
easily be delegated to the supervisor or leadworker level.
UPDATED: 8/92
CITY OF ATASCADERO
SPECIAL PURCHASING INCENTIVES
Section One: Local Vendor Preferences
1.1 Although no preferences are available for Public Works
Projects, a two percent (2%) variance will be allowed for
the purchase of operating equipment and supplies by vendors
located within City limits. For services, a faster response
time offered by a local vendor may be considered in making
the purchasing decision.
1.2 When soliciting informal quotes, local vendors should be
used whenever practical. Use of non-local vendors should be
limited to those vendors with a clearly demonstrated
advantage in terms of expertise, product, service and/or
price.
1.3 Local Vendor is defined in a relative sense: a vendor
located in Atascadero is more "local than one from the
Worth County. A North County vendor is more "local" than
one from San Luis Obispo City. But a vendor from San Luis
Obispo County is still more "local" than other counties or
states.
For purposes of the two percent variance, only businesses
with an Atascadero address are eligible.
Section Two: Recycling Incentives
2.1 If all other factors are equal, the City will afford a five
percent (5%) price variance for recycled supplies. This
price break notwithstanding, Departments should still
solicit informal quotes from three or more vendors, in order
to assure the lowest prices.
2.2 Departments are encouraged to be creative in developing uses
for reusable and/or recyclable products and supplies.
2.3 Operating considerations, such as the effect of recycled
paper on photocopier efficiency, must be considered in using
recycled materials, regardless of price.
Section Three: Disadvantaged Business Enterprise (DBE) incentives
3.1 It is the City's policy to encourage DBE vendors,
particularly in Public Works projects.
3.2 The City shall maintain a listing of qualified DBE vendors,
sorted by type of vendor. Appropriate DBE vendors shall be
notified of any Public Works projects going out for formal
or informal bid.
UPDATED: 8/92
3.3 Public Works bid packages shall include a method to identify
which contractors are qualified DBE contractors (either as
prime or sub-contractor . The dollar amount provided by the
DBE contractors must also be included. Such information
will be collected for purposes of monitoring the City' s
efforts towards encouraging DBE vendors. An annual report
to Council will be made, containing the summarized results
of this information.
a:incentives
UPDATED: 8/92
CITY OF ATASCADERO
PUBLIC WORKS BIDDING PROCEDURES
Section One: Policy
1.1 It is the City's policy to follow the Uniform Construction
Cost Accounting Procedures for all Public Projects, and to
comply with the procedures outlined in AMC 2-3A.
Section Two: Definitions
2.1 "Public Projects means construction, reconstruction,
painting or repainting, erection, alteration, renovation,
improvement, demolition and repair work involving any
publicly-owned, leased or operated facility.
2.2 "Maintenance" includes
(a) Routine, recurring and usual work for the preservation
or protection of any publicly-owned or operated
facility;
(b) Minor repainting;
(c) resurfacing of streets and highways of less than one
inch; or
(d) landscape maintenance, including mowing, watering,
trimming, pruning, planting, replacement of plants and
servicing of irrigation and sprinkler systems.
2.3 "Uniform Construction Cost Accounting" procedures are
defined and clarified in the Cost Accounting Policies &
Procedures Manual (the Cost Accounting Manual) of the
California Uniform Public Construction Cost Accounting
Commission, as revised from time to time.
Section Three: Authorization to Proceed
3.1 Generally, Public Projects are identified and approved in
the annual budget. As such, no formal authorization to
proceed to bid is required.
3.2 An unbudgeted project must be reported to Council for
authorization to proceed if:
(a) The estimated cost exceeds $25,000; or
(b) The nature of the project is sensitive enough to
warrant Council review, as determined by the City
Manager.
UPDATED: 8/92
Section Four: Dollar Ranges
4.1 Projects under $25,000 may be performed by force account or
purchase order.
4.2 Projects over $25,000 but under $75,000 may be informally
bid, as set forth in these procedures or in AMC 2-3A.
4.3 Projects over $75,000 must be let by formal bid.
Section Five: Force Account Work
5.1 For public projects estimated at under $25,000, the Public
Works Director may use in-house labor or negotiate a
contract with an outside vendor. In such instances, the
Public Works Director will comply with the provisions of the
Cost Accounting Manual.
5.2 The Public Works Director is responsible for tracking the
time spent on projects performed with in-house labor. The
Finance Department is responsible for preparing the annual
labor and equipment rates to be charged, pursuant to the
Cost Accounting Manual.
Section Six: Development, Maintenance & Use of List of Qualified
Contractors
6.1 The Public Works Director shall establish and maintain a
list of qualified contractors, including those vendors
qualified as Disadvantaged Business Enterprises (DBE) , as
required under AMC 2-3A.04.
This list will be used for informal and formal bidding
purposes. The Public Works Director is also encouraged to
utilize the list for projects under $25,000.
Section Seven: Informal Bidding Procedures
7. 1 The Public Works Director shall follow the informal
procedures outlined in AMC 2-3A.05 through 2-3A.07,
including development of bid specifications, soliciting bids
and meeting established time frames.
7.2 Any contract to be awarded under these Informal Bidding
Procedures shall be awarded by Council.
UPDATED: 8/92
Section Eight: Formal Bidding on Public Projects
8.1 Notice Inviting Bids - The Public Works Director shall
prepare a notice inviting bids. Such notice shall include a
general description of the project, state where bid blanks
and specifications may be secured, the time and place for
opening bids and any security deposits required.
8.2 Advertising the Notice Inviting Bids - The notice inviting
bids shall be published at least twice, not less than five
(5) days apart, in a newspaper of general local circulation
at least ten (10) days before the date of opening of bids.
The Notice will also be sent to all contractors on the list
of qualified contractors, for the category of work being
bid, and to any appropriate trade journals. The Notice will
also be posted on a public bulletin board at City Hall.
Other advertising arrangements may be used at the discretion
of the Public Works Director.
8.3 Bid Opening - The Public Works Director shall require all
bids to be sealed and identified by bid number. At the time
and place specified, the City Clerk shall open all bids,
tabulate the results, and keep such tabulations open for
public inspection during regular business hours for a period
not less than thirty (30) calendar days after the bid
opening.
8.4 Award of Contract - The Public Works Director shall prepare
a report to Council recommending the most responsive bidder.
Council shall make the award of contract. In its sole
discretion, the Council may reject all bids and re-advertise
for bids. In the event two or more bids are received for
the same amount and such bidders are considered equally
responsive, and re-advertising the bid is not in the public
interest, Council may accept the bid it chooses.
Upon award of the Contract, Public Works shall prepare a
Purchase Order Requisition. Upon receipt, Finance will
encumber the full amount of the award and return the
approved Purchase Order. Public Works is responsible for
initiating and managing the project thereafter.
8.5 Bidders Security/Performance Bonds - The Public Works
Director may establish bidder's security and/or performance
bond requirements as he/she sees fit.
UPDATED: 8/92
Section Nine: Change Orders
9.1 In the event that a change order involving less than a five
percent (5%) variance in either cost or time is required,
such change order may be approved by the City Manager upon
recommendation of the Public Works Director.
9.2 A change order in excess of five percent for either cost or
time, must be approved by Council.
Section Ten: Emergency Conditions -
10. 1 In the event that the Public Works Director declares a
public emergency, the Director may dispense with formal or
informal bidding, in order to accomplish repairs and/or
replacements as necessary.
10.2 The Public Works Director shall report the nature and extent
of the emergency at the next Regular or Special Council
session and seek direction as to whether repairs and/or
replacements should proceed or if the appropriate bidding
procedures should be used.
Section Eleven: Delegation of Responsibilities
11.1 The Public Works Director is responsible for overseeing the
Public Projects bidding process, including administration of
contractor's lists and the uniform construction cost
accounting process. However, such responsibilities may be
delegated, in whole or in part, to other Departments and/or
officials, if, in the Public Works Director's opinion, such
a delegation is in the City's best interests. The Public
Works Director also reserves the right to oversee the
performance of these delegated responsibilities and may
rescind such delegated responsibilities as appropriate.
a:pwprojects
UPDATED: 8/92
CITY OF ATASCADERO
FIXED ASSETS PROCEDURES
Section One: Objectives
1.1 To assure the City's fixed assets are properly recorded and
accounted for.
1.2 To provide useful managerial and operational information
regarding the City's fixed assets.
1.3 To provide an efficient means of disposing surplus City
assets.
Section Two: Procurement of Fixed assets
2. 1 Departments are to follow standard budgeting and purchasing
procedures in acquiring fixed assets.
2.2 As part of the procurement process, Finance will identify
and record new minor capital outlays in the City' s
computerized fixed assets system.
Any minor capital outlay over $500.00 will be considered
part of the City's Fixed Assets, for Financial Reporting
purposes (i.e. , the Annual Audit)
Section Three: Transfer of Assets
3. 1 When an asset is transferred from one department to another,
the transfer must be documented in writing with a copy
routed to Finance. This will allow Finance the ability to
maintain accurate records. The forms to be used will be
established by Finance and made available for Departmental
use.
3.2 If the transfer is across funds, the depreciated value of
the asset may also be required from the receiving fund, as
payment for the asset.
Section Fours Disposal of Assets
4.1 When an item is no longer needed or worn out or obsolete,
the Department Head will notify Finance in writing. The
asset may be stored at a central location for safe-keeping.
4.2 Finance will maintain a list of surplus items. At least on
a quarterly basis, Finance will circulate the list to allow
departments to use any surplus items, as appropriate. If an
item is needed, the affected department will request the
item be transferred to that Department. Finance will update
its records accordingly.
UPDATED: 8/92
4.3 At least annually, Finance will arrange for an auction to
dispose of surplus items. Prior to the auction, the list of
items to be sold will be distributed to Departments. At the
same time, Departments will be requested to surplus any
items that are no longer needed or used. Departments are
expected to note the approximate value of the surplused
items, which will be used as a minimum bid for the item at
the auction.
4.4 City employees will be allowed to participate in any auction
sales, provided they are conducted by non-City employees.
4.5 Once the item has been sold, Finance will update its records
and deposit the proceeds into the fund that last owned the
asset.
Section Five: Annual inventory of Fixed Assets
5. 1 Each year, Finance will prepare a listing of all assets by
Department and category. Each department will be
responsible for verifying its assets or note any
discrepancies.
5.2 Finance may conduct spot checks to validate information
received. As warranted, Finance may also conduct targeted
inventory checks -- such as, verifying certain categories of
assets are properly documented.
a:fixedassets
#14
UPDATED: 8/92
CITY OF ATASCADERO
PETTY CASH/CREDIT CARD PROCEDURES
Section One: Objectives
1.1 To facilitate the purchase of minor items without a great
deal of paperwork or costs.
Section Two: Procedures
2. 1 If the employee purchases an item and needs reimbursement, a
Petty Cash Slip shall be completed with the receipt
attached.
2.2 The Petty Cash Slip must be approved by the appropriate
Department Head, contain the account number to be charged
and should include a brief description of the purchase.
2.3 An employee may request a petty cash advance up to $25.00,
or the estimated amount, whichever is less. Prior to
receiving the advance, the employee must submit a properly
completed Petty Cash Slip, including the amount requested
and Department Head approval After the purchase, the
employee will adjust the Petty Cash Slip to reflect the
actual amount spent, attach the receipt and return any
change.
2.4 Any petty cash purchase over $25.00 shall be approved by the
Finance Director.
Section Three: Petty Cash Sox
3.1 Petty Cash boxes are to be limited to one per site, whenever
practical. The Finance Director is responsible for
assigning petty cash boxes. A Petty Cash Box may be removed
from a site, if, in the Finance Director's opinion, it is in
the City's best interests.
3.2 Proceeds from the petty cash box are for City purposes only.
Petty cash is not to be used for cashing personal checks or
to be loaned out for personal purchases.
3.3 Any Department with a Petty Cash Box is responsible for
reconciling cash to receipts on at least a weekly basis.
Any irregularities shall be reported promptly in writing to
the Finance Director. A petty cash box may be audited by
Finance from time to time, with or without advance notice.
UPDATED: 8/92
Section Four: City Credit Cards
4.1 The City Credit Card is generally to be used to facilitate
out-of-town travel (e.g. , hotel reservations) or to pay for
work-related business meals. Charges on the City' s Credit
Card shall not include alcoholic beverages, items or
services of a personal (non-City business) nature, or items
otherwise available through normal purchase order
procedures. Gas Credit Cards are limited to gasoline and
other petroleum products, or minor automotive repairs.
4.2 A City Credit Card may be issued to the Mayor and the City
Manager. Any remaining cards will be kept in Finance, and
checked in or out through Accounts Payable.
4.3 Charge Slips are always required; the slip should note who
was present (if a work-related meal expense is involved) , a
brief description of the expense, the account to be charged
and an authorized signature.
4.4 City payment for "working" meals should be kept to a
minimum. A clear City benefit should be present, such as
providing a lunch for personnel interview panelists, or if
the meal is part of an ongoing, inter-agency committee
(e.g. , the Mayor-Manager Meetings, City Manager meeting,
etc. ) . Generally, meals should be paid for by the employee
with a request to be reimbursed.
a:petty cash
UPDATED: 8/92
CITY OF ATASCADERO
BUDGET ADMINISTRATION PROCEDURES
Section One: Policy
1.1 It is the Council's intent to adopt an annual budget on or
before June 30 of each year. Once adopted, Council action
is required to make any adjustments to a Department's total
appropriation. In the event Council is unable to adopt by
June 30, then an interim budget shall be passed, in order to
continue day-to-day operations.
1.2 Although formal control in the sense of total dollars
allocated for any given Fiscal year is at the Department
level, effective budget administration requires line-item
level review. Such review will enhance the overall accuracy
of the budget and assist in assuring that the "bottom line
budget total is not exceeded.
In addition, effective budget administration should provide
the opportunity for careful consideration of significant,
but unbudgeted, expenditures, generally due to extenuating
circumstances (i.e. , a major emergency) . In these cases,
alternatives to increased appropriations should be explored,
such as deferring other expenses.
1.3 Items should always be charged to the most appropriate
department and account. If sufficient funds are not
available in any particular account, funds may be
transferred from elsewhere within the Department' s budget.
Section Two: Functional Responsibilities
2. 1 City Manager - It is the City Manager' s role to oversee the
budgetary process and to review, recommend, and, in some
instances, approve expenditures. In assuming this
responsibility, the City Manager should consider the needs
of the affected department as well as the City's overall
financial condition.
2.2 Department Heads - It is the Department Head' s
responsibility to review their monthly expenditures to
assure that they are within their appropriation limits at
both the account and Departmental levels. In addition, when
unanticipated expenses occur, the Department Head is
responsible for preparing the necessary paperwork to justify
the additional costs, explore alternatives, and/or identify
available appropriations and their sources.
UPDATED 8/92
2.3 Finance Director It is the Finance Director's job to
provide assistance to Department Heads in budgetary matters.
In addition, the Finance Director is responsible for
coordinating the annual budget preparation process and for
providing timely and accurate expenditure reports
(printouts) .
Section Three: Budget Adjustments Approved by Council
3.1 Post-Audit Adjustments - After the annual audit is complete,
staff will propose technical adjustments relating to the
audit findings. Such adjustments may include
reappropriating the prior year's encumbrances; increasing or
decreasing appropriations if such appropriations were based
on actual, as opposed to projected, year end fund balances;
or budget adjustments due to projects carried over. This
adjustment is generally in October or November.
3.2 Midyear Budget Adjustments-Generally in February,
Departments will assess their operating budgets and confer
with the City Manager prior to Council review. At this
time, unbudgeted items approved by Council during the year
are formally appropriated.
3.3 Year-end Budget Adjustments - This is "basically the same
process as the Midyear adjustments, only conducted in May or
June,
3.4 Informal Budget Adjustments - During the fiscal year,
Council may approve appropriation transfers (between
Departments or implicitly from a Fund's Reserves) as part of
its approval of a new service or expenditure. In these
cases, the City Clerk's Minute Order will constitute
authorization to Finance to transfer the funds.
Section Four: Budget Adjustments Within Departments
4. 1 AnprORriations Transfer Requests When a specific account
within a Department exceeds its budgeted limit, the
Department Head will prepare a brief memo outlining the
account numbers and amounts to be transferred and forward it
to Finance. Appropriations are to be transferred from
within the same Department.
Upon receipt, the Finance Department will prepare a journal
entry to transfer the funds, effective for the month in
which the request was received. In order to facilitate the
process, Departments are encouraged to contact the Finance
Department in advance to discuss the pending transfer.
UPDATED: 8/92
In the event there are insufficient monies available in the
specific Department, the appropriate Department Head will
prepare a memo to the City Manager outlining the nature of
the problem and the additional amount required. A copy of
the memo is to be sent to the Finance Director.
4.2 Unbudgeted Minor Capital Items - When an unbudgeted minor
capital item over $500 is needed, the Department shall
prepare a Minor Capital Outlay Request (Exhibit A) for the
City Manager's review and approval. An appropriations
transfer request should accompany the request, if necessary.
Upon approval by the City Manager, the form(s) will be
transferred to Finance for processing. As with operating
transfers, Finance should be contacted in advance to discuss
the items.
4.3 , Unbudgeted Staffing - Whenever any unbudgeted permanent or
temporary staffing is requested, the appropriate Department
shall prepare a New Position Request form (Exhibit B) and
forward it to the City Manager for review and approval. An
appropriations transfer request may also be required and
should be included with the request.
Unbudgeted staffing should be infrequent and avoided if
possible. Examples where such staffing might be appropriate
include use of temporary staff to cover extended vacancies
or absences, or changing an existing but vacant position
during the fiscal year, rather than simply recruiting the
same classified position.
Unbudgeted staffing requests should be discussed with both
Finance and Personnel before submitting the request to the
City Manager.
4.4 Substantial, but unanticipated, expenses - When unforeseen
expenses occur that are likely to exceed a Department
budget, the Department Head shall document the situation in
a memo to the City Manager, with a copy to the Finance
Director. Such a memo shall be prepared as soon as
possible.
Examples of unforeseen expenses include legal costs
associated with lawsuits, or costs associated with major
fires, or other sudden increases in workload. A budget
adjustment by Council may be requested, although other
alternatives should be considered, such as deferring or
eliminating other purchases, leaving vacant positions
temporarily unfilled, etc.
UPDATED: 8/92
Section: Budget Adjustments for Capital Projects
5.1 In contrast to operating budgets, Capital budgets are
controlled at the account (or project) level. This is due
to the fact that the entire project is only accounted for at
the line-item level.
5.2 In the event a Capital Project is expected to exceed its
budget, the responsible Department Head is to identify
additional monies. Such monies can only come from the
reserves of the same fund(s) , or by deferring or eliminating
other projects paid from the same fund(s) .
For example, a project paid from Gas Tax monies that needs
additional appropriations must look to the same Fund for the
extra money. It cannot receive its augmentation from other
sources, even if those sources have sufficient reserves.
The reason for this is that most funds have restricted uses
and commingling is prohibited. An exception is the General
Fund, although it is usually the most constrained in terms
of available reserves.
5.3 Appropriation transfer requests for Capital Projects will be
handled in the same manner as operating transfers.
Section Six: Processing Deadlines
6.1 Appropriation Transfer Requests - Requests received by the
last day of the month will be posted to that month. This
applies to transfers within a Department and those
authorized by Council.
6.2 General (,Non-Emergency) -Expenditures - The deadline for
ordering general operating goods and services is on or about
May 31 of each fiscal year. This allows time for items to
be received and paid for. It reduces the need to
reappropriate funds that were encumbered in one year but
expended in the next.
Certain routine items, such as utilities or monthly service
agreements, will be processed as usual. Open Purchase
Orders are also exempt.
Extenuating circumstances (such as emergencies or dated
materials) may be considered as appropriate.
a:bud-adm-pros
#4
UPDATED: 8/92
CITY OF ATASCADERO
TRAVEL AND TRAINING POLICY
Section One: Objectives
1.1 To reimburse employees and elected or appointed officials
for their reasonable and necessary expenses incurred in the
conduct of business for the City. Reimbursement for such
expenses shall be made subject to these procedures.
1.2 To insure that employees traveling at City expense show good
judgement and proper regard for economy in incurring
expenses.
1.3 To encourage low cost training efforts by either pooling
resources among departments or between other public
agencies, bringing trainers on-site, or taking advantage of
group discounts for training.
Section Two: Travel Guidelines
2. 1 Department Heads shall make every effort to anticipate and
identify travel expenses so that such expenses will be
included in the annual budget.- They are expected to ensure
that budgeted travel expenses are not overrun throughout the
course of .the fiscal year.
2.2 Unbudgeted travel, travel outside of California, or other
unusual travel arrangements, will be discussed with, and
approved by, the City Manager, provided sufficient monies
are available within the affected Department' s budget.
2.3 When more than one person is attending the same function,
the most economical travel and lodging for the total group
will be used. The number of attendees shall be held to the
minimum necessary to accomplish the travel's purpose.
2.4 In the event a scheduled trip is canceled, it is the
employee's responsibility to make all the necessary
arrangements to cancel reservations and receive all
available refunds. Failure to do so, may result in directly
charging the employee for the expenses incurred by the City.
Section Three: Documentation of Expenses
3.1 All reimbursable expenses shall be properly submitted on a
travel expense form. If lodging accommodations are shared
between two or more employees, the billing shall be
submitted by the employee paying the bill. Expenses shall
be charged to the appropriate department(s) .
UPDATED: 8/92
3.2 All applicable receipts shall be attached to the travel
expense form. Any non-routine claims for reimbursement
shall be accompanied by a brief explanation in writing.
3.3 The completed travel expense form shall be approved by the
Department Head prior to being turned in to Finance for
processing.
Section Four: Travel Advance
4. 1 If required, travel advances must be requested in writing by
the employee and approved by his/her department head. The
request must identify all known or anticipated costs, and
must be submitted in a timely manner; i.e. , so that the
request may be included in a regular accounts payable check
run.
4.2 The amount of the request will be determined based on the
following formula: 100% of all known costs, such as
registration, lodging or air fare; 80% of all remaining
costs, such as per diem, mileage reimbursement and/or
incidental expenses.
4.3 After the travel, the employee shall submit a regular travel
expense form to receive any balance due or amount owed.
Such submittal shall include all documentation (i.e. ,
receipts) to support the total amount paid to the employee.
Section Five: Eligible Expenses
5.1 Registration - Any fees for conventions, conferences and
seminars will be considered eligible for reimbursement (if
not prepaid) .
5.2 Transportation - The most economical and expeditious form of
transportation shall be used.
a. Travel by rail or air - Only tourist class rail or air
fare is appropriate. Any discount arrangements (such
as frequent flyer miles) shall be the property of the
City and not the employee.
b. Travel by City Car Only City employees, City
Officials or other persons authorized by the Department
Head shall be permitted to travel in City-owned
vehicles. Reimbursement will be made for any repairs,
fuel, oil, parking and other necessary expenses for the
use of the City car, provided a paid receipt is
included with the request.
UPDATED: 8/92
5.2 (Continued)
c. Travel by Private Car - Reimbursement will be made at
.28 per mile. If private car costs are greater than
other methods of transportation, the least expensive
total will be reimbursed. No reimbursement will be
made for any repairs, except for reasonable towing
expenses (such costs are covered in the mileage rate) .
5.3 Lodging -
a. The City will pay reasonable costs associated with the
conference-recommended lodging accomodations, at the
rate of a standard single room, or the government rate,
whichever is lower.
b. Expenses for spouses are not allowed. When a spouse
attends a conference with an employee, only lodging at
the single rate (if applicable) will be reimbursed.
5.4 MealslPer Diem -
a. In order to facilitate meals, gratuities, phone charges
and other daily expenses, a per diem rate of $35.00 is
established. No receipts are necessary. In the event
partial days are involved, the per diem rate shall be
prorated as follows:
* Breakfast - $5.00
* Lunch - 10.00
* Dinner - 20.00
b. In high cost-of-living areas (such as San Francisco) , a.
per diem rate of $70.00 shall be permitted, provided
the costs are supported by receipts. Prior City
Manager approval is required for the higher per diem
rate.
C. In the event the conference registration includes
meals, the per diem rate may be adjusted, based upon
the prorated amounts in 5.4 (a) .
5.5 Incidental Expenses - The following items are eligible for
reimbursement:
*Parking Fees (over $5.00 per day requires a receipt) ;
*Safe arrival personal phone call (not to exceed five
minutes) :
*Car Rental, when it is more practical and/or less expensive
than the use of taxi cabs, other public transportation or
hotel-supplied transportation;
UPDATED: 8/92
*Cab Fare, while on City business;
*Business Phone Calls;
*Toll bridge expenses.
Section Six: ineligible Expenses
6. 1 The following items shall not be reimbursed:
*Costs for entertainment (unless part of a banquet ticket
or conference registration) ;
*Travel paid by another organization;
*Alcoholic beverages;
*Valet services (unless it is a part of the hotel's parking
arrangement -- i.e. , it is not an optional service) ;
*Meals or lodging accommodations for family or guests;
*Non-business related tour bus fares or sightseeing tours;
*Personal phone calls (except as covered in 5.5) ;
*Mileage if traveling as a passenger in a privately owned
vehicle;
*Trip insurance;
*Any vehicle moving violations; parking violations may be
reimbursed only by the City Manager's approval, based upon
extenuating circumstances;
*Any other personal expenditures for entertainment,
recreation or other purposes.
Section Seven: P.O.S.T. Training
7.1 For courses funded by the State Peace Officer Standards and
Training (P.O.S.T) Commission, restrictions currently in
effect shall govern expenditure limitations for meals and
lodging (See the P.O.S.T. Administrative Manual) .
7.2 When preparing reimbursements from P.O.S.T. , a copy of the
reimbursement request shall be forwarded to Finance to track
the receivable (or the request may be prepared by Finance
directly, based upon information and receipts supplied by
the Police Department) .
atravel
#14
UPDATED: 8/92
CITY OF ATASCADLRO
EMPLOYEE RECOGNITION/CONDOLENCES
Section One: Objectives
1.1 To provide a means of recognizing employee's efforts and/or
offering concern for the employee's well-being, or the well-
being of the employee's immediate family, while at the same
time acknowledging the sensitivity of using City monies for
such purposes.
Section Two: Citywide Recognition Events
2.1 Certain annual events, such as an employees' picnic or
Thanksgiving Luncheon, help to foster morale and team spirit
and should be encouraged. Release time to plan and organize
such events is approved, subject to review by the City
Manager or his/her designee.
2.2 Councilmembers, the City Manager and Department Heads are
strongly encouraged to financially contribute towards such
events, with participating employees contributing other
items, such as food and drink.
Section Three: Employee Condolences
3.1 Certain events in an employee's life, such as a death in the
family, emergency hospitalization of the employee or his/her
immediate family, or (in a positive vein) the birth of a
child, should be acknowledged in a thoughtful manner.
Flowers or donations to charitable organizations are an
appropriate way in which the City can show its concern.
3.2 The City Manager is authorized to approve up to $35.00 of
City monies for such purposes upon the recommendation of the
affected Department Head. Expenditures will be charged to
that department.
Section Four: Routine Employee R®cognition
4.1 Recognizing certain ongoing events, such as employee
birthdays, employment anniversaries, promotions or
retirements, may be appropriate.
4.2 A reasonable amount of release time for planning such
activities may be used, but direct use of City funds is not
allowed. Employees may either contribute towards the
purchase of, or actually prepare, the refreshments for such
occasions.
UPDATED: 8/92
Section Five: Providing Coffee and Other Refreshments
5. 1 Coffee and other refreshments are an appropriate use of City
monies when such refreshments are associated with City
business. However, it is impractical to distinguish between
refreshments used for City meetings and for employee breaks.
5.2 Employees who routinely drink City-provided coffee, tea or
other refreshments, shall sign a payroll deduction card
authorizing a deduction of at least two dollars ($2.00) per
month towards such refreshments. Monies collected shall be
used to offset the total cost of all refreshments.
5.3 The actual purchasing of such refreshments shall be
coordinated by the Purchasing Officer, and will be included
as an item in the Office Products and Services Catalog (see
the Centralized Purchasing Procedures policy) .
a:condolences
#14
UPDATED: 8/92