HomeMy WebLinkAbout2006-094 RESOLUTION NO 2006-094
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ATASCADERO AMENDING THE CITYWIDE PURCHASING POLICY
WHEREAS, the basic purchasing policy of the City of Atascadero is to obtain quality
supplies, services, vehicles and equipment needed for the proper operation of its various
divisions at the lowest possible overall cost; and
WHEREAS, this includes maintaining a purchasing system that ensures maximum use
of fair and open competition and receipt of the best value for funds available, consistent with
applicable laws and regulations.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Atascadero
Section 1 Recitals The foregoing recitals are true and correct and the City Council so
finds and determines.
Section 2 PurchasingPolicy The Purchasing Policy hereby attached as Exhibit A shall
become part of this resolution.
Section 3 Effective Date This resolution shall take effect immediately after the
effective date of this Resolution, and shall remain in effect, until revised by the City Council
On motion by Council Member Clay and seconded by Council Member Pacas, the
foregoing Resolution is hereby adopted in its entirety on the following roll call vote
AYES Council Members Clay, Luna, Pacas and Mayor O'Malley
NOES None
ABSENT One Vacancy
ADOPTED October 24, 2006
ATTEST CIV OF ATASCADERO
d Marcia M. Torgerson, C M."t, Tom O'Malley, Mayor
City Clerk
`j
Patrick L. Enrig ` City Attorney
City of Atascadero
Resolution No 2006-094
Page 2 of 2
Exhibit A
Due to the length of Exhibit A, it has not been reproduced as an attachment. However, it can be
reviewed in the Office of the City Clerk.
Resolution No. 2006-094
Exhibit A
City of Atascadero
Purchasing Policy
City of Atascadero
Purchasing Policy
October 24, 2006
Table of Contents
Section I - GENERAL POLICIES...................................................................................1
Purpose.................................................................................................................................1
GeneralPolicies...................................................................................................................1
Federal, State and Other Grant Programs............................................................................3
SignatureAuthorization.......................................................................................................3
DepartmentResponsibilities................................................................................................4
PaymentAuthorization........................................................................................................4
Section II - GENERAL SUPPLIES, MATERIALS AND EQUIPMENT ...................5
Purpose.................................................................................................................................5
Policies.................................................................:...............................................................5
1. Under $10,000.01 - Department/Division Award......................................................5
2. $10,000.01-$40,000.00 - City Manager Award..........................................................5
2.1 Informal Quotes..................................................................................................5
2.2 Purchase Order.............................................................................................:.....7
2.3 Purchasing Item..................................................................................................7
3. Over $40,000.00 - City Council Award......................................................................7
3.1 Formal Bidding...................................................................................................7
3.2 Awarding the Bid.............................................................................................10
3.3 Purchasing Item................................................................................................11
Section III - PROPRIETARY EQUIPMENT AND GOODS.....................................12
Purpose...............................................................................................................................12
Policies...............................................................................................................................12
1. Under $10,000.01 - Department/Division Award....................................................12
2. $10,000.01-$40,000.00 - City Manager Award........................................................12
2.1 Informal Quotes................................................................................................12
2.2 Purchase Order.................................................................................................13
2.3 Executing the Contract.....................................................................................14
3. -.Over $40,000.00 - City Council Award..............—......................................................14
--------- ---- -
3.1 Frorm7-Eva ua ion ofProducfslG�ods—.::--.:::::- :..-:::- :.:.-.: -:::..-1---
__ -
3.2 Awarding the Contract.....................................................................................15
3.3 Contract and Purchase Order............................................................................15
�.. Section IV — GENERAL TRADE SERVICES..::....................................................:.....17
Purpose.................................................................................................................;.............17
Policies...............................................................................................................................17
1. Under $10,000.01 — Department/Division Award....................................................17
2. $10,000.01-$40,000.00 — City Manager Award........................................................18
2.1 Informal Quotes................................................................................................18
2.2 Contract and Purchase Order............................................................................19
2.3 Executing the Contract.....................................................................................19
2.4 Renewals..................•--.....................................................................................19
2.5 Change Orders....................................................................:.............................20
3. Over $40,000.00 — City Council Award....................................................................20
3.1 Formal Bidding.................................................................................................20
3.2 Awarding the Bid.............................................................................................24
3.3 Contract and Purchase Order............................................................................24
3.4 Renewals..........................................................................................................24
3.5 Change Orders..................................................................................................25
Section V — PROFESSIONAL SERVICES..................................................................26
Purpose.......................................................................................--------......26
Policies..............••--.................................................................................----.................------.26
1. Under $10,000.01 — Department/Division Award....................................................26
2. $10,000.01-$40,000.00 — City Manager Award........................................................26
2.1 Informal Solicitation of Qualifications.............................................................27
2.2 Purchase Order........................................................•---•---.................................29
2.3 Executing the Contract.....................................................................................30
2.4 Renewals..........................................................................................................30
2.5 Change Orders..............................................................•--.......----......................30
3. Over $40,000.00 — City Council Award....................................................................30
3.1 Formal Requests for Proposals or Request for Qualifications .........................30
3.2 Awarding the Contract.....................................................................................36
3.3 Contract and Purchase Order............................................................................37
3.4 Renewals..........................................................................................................37
3.5 Change Orders..................................................................................................37
Section VI — PUBLIC PROJECTS .............................................
Purpose............................................................................................
Policies............................................................................................
1. Under $10,000.01 — Department/Division Award .................
2. $10,000.01430,000.00 — City Manager Award Level I ........
2.1 Contract and Purchase Order .........................................
2.2 Executing the Contract ..................................................
3. $30,000.01-$125,000.00— City Manager Award Level II......
3.1 Informal Bids ..................................
3.2 Contract and Purchase Order .........................................
3.3 Executing the Contract ..................................................
....38
....38
....38
....3 8
...............................39
...............................39
...............................39
...............................40
...............................40
...............................40
...............................41
4. Over $125,000.00 — City Council Award..................................................................41
4.1 Formal Bidding.................................................................................................41
4.2 Awarding the Bid.............................................................................................44
4.3 Contract and Purchase Order..... 44
4.4 Change Orders..................................................................................................45
Section VII — TRAVEL AND EXPENSE REIMBURSEMENTS..............................46
Purposeand Scope.............................................................................................................46
Policies...............................................................................................................:...............46
1. General Provisions....................................................................................................46
2. Authorization for Travel at City Expense.................................................................48
2.1 Authorization Levels........................................................................................48
2.2 Exceptions........................................................................................................48
2.3 Format for the Request.....................................................................................48
3. Lodging.....................................................................................................................49
3.1 General.............................................................................................................49
3.2 Special Lodging................................................................................................49
3.3 Use of Lodging as a Guest of Friends or Relatives..........................................50
4. Meals --
4.1 Rate of Reimbursement....................................................................................50
4.2 Meals Purchased Within the City of Atascadero..............................................51
4.3 Meals Purchased for Non -City Personnel.........................................................51
Section VII l�D8— �]R���/��. ���D� me«B—'---
5. Transportation -----.------,=,c_._—_--------------.52
llMode of ' -----------'---------------.-52
5.2Rate ofReimbursement .................................................................................... 5%
l3Commercial Auto Rental .................................................................................. 52
54Air Travel --_-----------'--------------------'53
5.5Tnx�and Other LocalTransportation --------'-----------'53
6. Business Expense -----'----------------------------'53
7.Reimbursement Claims ............................................................................................. 54
7.lGeneral .............................................................................................................. 54
7.2 Claim Fnooa..................................................................................................... 54
O. Registration/Expense Advances ................................................................................ 55
8.lMinimum -----.------------------------------55
8.2Reservations and ' ' -----------'-------------55
8.3 Final Accounting' ------------'_---'--------------55
9. Reports to Governing
Bnurdo------------------------'---.. 55
10. Responsibilityuod Accountability ------.-----------------_._. 56
lO] Administration ' —.—.---------------.-------------..58
10L2 Compliance with Laws .................................................................................... 56
lCi3Violation VfThis Policy .................................................................................. 56
ll.Audits o{Expense Reports -----------------------------.56
Section VIII — PETTY CASH ........................................................................................ 7
Purposeand Scope ............................................................................................................. 57
Policies............................................................................................................................... 57
l. Purchases ................................................................................................................... 57
2.Petty Cash Boxes ....................................................................................................... 57
Section DX—DISPOSAL OD7ASSETS .......................................................................... 5Q
Purposeand Scope .............................................................................................................. 58
_
.. T. s_._.~`..,~.....`I ...................... . ... . ................���������.���������
1. Minor i i Cost "c50O.0l................................................................. 58
2.Other Property- Original Cost >50U.0O.................................................................. 5Q
Section X- APPENDICES
SECTION I
GENERAL
PURPOSE AND SCOPE
This document defines the procurement policies and procedures for the City of
Atascadero.
1.0 GENERAL PROVISIONS
The basic purchasing policy of the City of Atascadero is to obtain quality supplies,
services, vehicles and equipment needed for the proper operation of its various divisions
at the lowest possible overall cost. This includes maintaining a purchasing system that
ensures maximum use of fair and open competition and receipt of the best value for funds
available, consistent with applicable laws and regulations.
The purchasing functions are decentralized, with each Department/Division responsible
for compliance with City policies and procedures. Purchasing responsibility and
authority shall be delegated to the lowest possible level consistent with good business
practice and sound financial management policy to the extent practical.
The following apply to all purchases made by the City of Atascadero:
1. No purchase will be approved or undertaken unless an appropriation has been
established, through either the adopted annual budget or City Council approval of
additional appropriations. It is the responsibility of the Department/Division to
maintain budget control of their individual budgets. Ultimate responsibility for the
individual budget rests with the Department Director.
2. All purchases shall be of the quality deemed necessary to suit the intended purpose,
suitable, and beneficial to the City, and in the City's best interest.
3. Competitive quotations will be sought based on established dollar limits.
Established dollar limits and procedures for specific purchase types are set out in
this policy as follows:
General Supplies and Equipment- Section II
Proprietary Equipment and Goods- Section III
General Trade Services- Section IV
Professional Services- Section V
Public Works Contracts- Section VI
1
Section I — GENERAL
1.0 GENERAL PROVISIONS (continued)
Travel- Section VII
Petty Cash- Section VIII
Disposal of Assets- Section IX
4. Certain purchases are unique in nature and do not lend themselves to the process of
competitive bidding. Therefore, these items are excluded from the competitive
bidding and purchase order requirements in Sections II through VI. These items
include, but are not limited to, County Services, debt service payments, and ongoing
expenses for utilities or services (such as telephones, services agreements, etc.).
The bill or invoice should be forwarded to the Administrative Services Director for
authorization.
5. The dollar limits for purchases and bids are established by ordinance or resolution.
Purchases shall not be split to avoid the required procedures or certain dollar limits.
6. Receipt of goods or services will be verified and approved by the appropriate
official prior to payment of invoices.
7. The emergency purchase of goods is authorized under certain conditions.
8. The City Council may waive by majority vote any provision within this policy.
9. No purchase of supplies, services, or equipment over $10,000.00 shall be made
without an authorized purchase order unless exempted in these guidelines.
Otherwise:
8.1 Such purchases are void and not considered an obligation of the city.
8.2 Invoices without an authorized purchase order may be returned to the vendor
unpaid.
10. No City employee shall have a direct or indirect financial interest in any contract or
purchase of goods or services entered into by the City, or shall derive any personal
benefit from the City's purchase of goods or services.
11. No City employee shall use the City's purchasing procedures to obtain property for
personal use, by misrepresenting to vendors for the purpose of obtaining price
discounts that the personal purchases are for the City.
12. No City employee shall draft or cause to be drafted any specifications for bids in
such a way as to intentionally limit the bidding directly or indirectly to any one
bidder, except for the sole source procurement.
2
Section I — GENERAL
1.0 GENERAL PROVISIONS (continued)
13. Local Vendor Preferences
13.1 Although no preferences are available to Public Works projects, a two
percent (2%) variance will be allowed for the purchase of operating
equipment, supplies, and trade services from vendors located within City
limits.
13.2 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.
13.3 Local Vendor is defined in a relative sense: a vendor located in Atascadero
is more "local" than one from the North 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.
13.4 For purposes of the two percent variance, only businesses with an
Atascadero address and a business license (if required) are eligible.
2.0 FEDERAL, STATE AND OTHER GRANT PROGRAMS
Federal, State, or grant programs may require special conditions that are more stringent
than City procedures. It is the responsibility of the department accepting the grant to
ensure that all grant provisions are complied with.
3.0 SIGNATURE AUTHORIZATION
1. Each Department Head shall complete and forward to Administrative Services a
Signature Authorization form, identifying those employees approved by the
Department Head to sign off on various financial and other administrative
documents. The form shall be developed by the Administrative Services Director
and revised from time to time as needed.
2. The form shall identify specific Departments, Divisions or Programs, the
employee's name and signature and list specific documents each employee is
authorized to sign. It is the Department Head's responsibility to keep the
information current.
3. Any documents missing the appropriate signature(s) will be returned to the
originating department.
3
Section I — GENERAL
3.0 SIGNATURE AUTHORIZATION (continued)
4. 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
but any receipts must be countersigned by an authorized employee.
5. The number of authorized signatures should be kept to a minimum, to assure better
control over departmental appropriations.
4.0 DEPARTMENT RESPONSIBILITIES
It is the responsibility of the acquiring Department/Division to:
1. Make purchases in accordance with established policies and procedures.
2. Verify that an appropriation is available for the purchase.
3. Anticipate the Department/Divisions' needs well in advance in order to minimize the
need for emergency purchases.
4. Review goods and services received to ensure conformity with purchase order or
contract.
5. When a cost discrepancy for goods or services dissatisfaction arises, notify the
Administrative Services Department. No bill should be processed for payment when
the goods or serves are unsatisfactory, or there is a price discrepancy between the
originally quoted price and the bill received.
5.0 PAYMENT AUTHORIZATION
1. An authorized signature on the invoice, receipt or other backup shall be considered
authorization for payment. The signature shall indicate that the signer has:
■ Verified that the City has received the goods or services in good working
condition.
■ Verified that the purchase complies with this purchasing policy and that funds
are available for the purchase.
2. In certain instances it may be in the City's best interest to issue payment prior to
receipt of the authorizing signature on the invoice. The City Manager or the Director
of Administrative Services may authorize payment in those instances.
3. Checks shall be processed and issued by an employee other than check signer.
4. All payments in excess of $25,000 shall require two live signatures on the checks.
4
Section II
GENERAL SUPPLIES, MATERIALS
AND EQUIPMENT
PURPOSE
Provide guidelines for the purchase of general supplies, materials and equipment.
Supplies, materials and equipment shall consist of any and all articles or things which
shall be furnished to or used by any department, excluding proprietary equipment and
goods (Section III) and any goods purchased as part of a Public Works Project (Section
VI).
In instances where goods and services are purchased together from one vendor, this
section shall only apply if the predominant portion of the purchase is goods. (i.e. A
purchase of equipment for $1,000 with a $300 installation fee would be covered under
this section of the policy. A repair of equipment with $1,000 in labor and $300 in parts
would be covered under Section IV- General Trade Services)
POLICIES
There are three levels of authority for normal purchases: Department/Division Award,
City Manager Award, and City Council Award. Generally, authority is established by the
dollar amount of the purchase.
1.0 DEPARTMENT/DIVISION AWARD < $10,000.01
The Department/Division manager may authorize the purchase of supplies, equipment, or
services as needed up to $10,000.
These purchases do not require competitive bidding and departments are given
considerable discretion in these purchases.
2.0 CITY MANAGER AWARD $10,000-01 to $40,000.00
Material/supply purchases over $10,000 and under $40,000.01 must be awarded by the
City Manager or the Director of Administrative Services. Informal bidding should be
used to assure the most competitive price is received for an item, while avoiding the
additional time and expense involved in formal bidding.
2.1 Informal Quotes:
The Department/Division shall make every attempt to receive at least three bids in
writing or over the phone.
5
Section II — GENERAL SUPPLIES, MATERIALS
AND EQUIPMENT
2.0 CITY MANAGER AWARD $10,000.01 to $40,000.00 (continued)
a) Phone Bids: Phone bids must be documented to the satisfaction of the Director
of Administrative Services. Ideally, documentation should include the name of
the company bidding, the person giving the quote, the date and time of the
phone call, the amount quoted and any other relevant information.
b) Three Quotes: The Department/Division should make every reasonable attempt
to obtain at least three bids, however it is understood that at times it is neither
practical nor cost effective to continue soliciting quotes until three bids are
received. In the event that three viable quotes are not received, the division
shall document what steps were taken to obtain quotes, any vendors contacted
that declined to bid, and if applicable why it is not practical to receive three
quotes.
c) Exceptions: The informal bid process may be bypassed with Department Head
and City Manager or the Director of Administrative Services approval in the
following four instances:
In emergency situations where time is of the essence, the appropriate
Department Head may dispense with obtaining three informal quotes to
obtain materials necessary in dealing with the emergency. Immediately
following the emergency, the Department Head shall forward a copy of the
purchase order along with an explanation to the City Manager or the
Director of Administrative Services.
2. When one known supplier is available, the Department Head/Division Head
shall document that it is a "sole source" purchase. Most sole source
purchases shall be the result of the City deciding that it is in its best interest
to use a specific proprietary brand item. (i.e. For ease of maintenance, the
City may choose to only purchase one brand of computers).
3. When there exists other governmental contracts that were competitively bid
(such as State Contracts, DGS, etc.) that the City is eligible to use.
4. When an item has been bid within the last 36 months and the price has not
changed.
d) Evaluating Bids: The Department/Division shall evaluate the three informal
quotes received and determine the lowest most responsible bid. The City
reserves the right to accept that bid which is in the best interest of the City.
When selecting the recommended bidder the Department/Division Head will
take into consideration:
1. Price.
2. Ability, capacity, and skill.
3. Ability to meet time requirements.
4. Character, integrity, and reputation.
5. Previous vendor experience.
2
Section II — GENERAL SUPPLIES, MATERIALS
AND EQUIPMENT
2.0 CITY MANAGER AWARD $10,000-01 to $40,000.00 (continued)
d) Evaluating Bids (continued):
6. Financial resources available for contract performance.
7. Ability to provide future maintenance and service, if necessary.
2.2 Purchase Order
A purchase order shall be prepared detailing the vendor name, address, item being
purchased, total price including tax and shipping, and budget account to be charged.
The purchase order shall be signed and dated by the authorized
Department/Division employee. (If an exception was used to bypass informal
bidding procedures, the P.O. must be signed by the Department Head)
The purchase order packet shall be submitted to the City Manager or the Director of
Administrative Services for approval. He/she will review the purchase order packet
for conformity to the purchasing policy, for compliance with other established
procedures and for availability of funds. The City Manager or the Director of
Administrative Services shall then approve and sign the purchase order.
2.3 Purchasing Item
Once the Department/Division has received the approved Purchase Order from the
City Manager or the Director of Administrative Services, they may contact the
vendor and purchase the item. Items must generally be shipped to a City address or
worksite. If the product will be shipped to an alternate location, this should be
cleared through the Administrative Services Department in advance.
2.4 Change Orders
The City Manager is authorized to issue change orders for changes or additions to
the original material/supply purchase that result in less than a $40,000 overall
contract amount. Change orders in excess of the $40,000 total contract amount shall
be brought to the City Council for approval.
Section II — GENERAL SUPPLIES, MATERIALS
AND EQUIPMENT
3.0 CITY COUNCIL AWARD > $40,000.00
Material/supply purchases over $40,000 must be awarded by the City Council. Formal
bidding should be used 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.
3.1 Formal Bidding
The initiating Department/Division shall be responsible for completion of the formal
bid process, however the process shall be coordinated with the City Clerk's Office
and the Administrative Services Department.
a) Bid Forms: The initiating department shall prepare a bid form including detailed
specifications for the item to be purchased. The following format is suggested
for competitive bids
1. Submission of bids (or proposals) — Include date, time, location and bid
number as assigned by the City Clerk. Include a detailed list of the
information the bid or proposal should contain.
2. Questions — List the name, address, and telephone number of the person to
be contacted concerning questions about the project.
3. Background — Provide as much background as necessary to give the bidder
an understanding of the environment in which the job will be performed and
to which the job relates.
4. Scope of work — Describe in detail the requirement for the job and detail
specification.
5. Desired project schedule —Be as specific as possible.
6. Minimum and desirable qualifications — Be as specific as possible.
7. Performance Bond — Whether a performance bond is required and if so, the
amount and form of bidders security.
b) Notice Inviting Bids: The initiating department shall also prepare a notice
inviting bids that includes the following:
1. A general description of the item to be purchased.
2. A statement indicating where bid forms, specifications and bonding
requirements can be obtained.
3. A statement specifying the time and place for the opening of the bid.
8
Section II — GENERAL SUPPLIES, MATERIALS
AND EQUIPMENT
3.0 CITY COUNCIL AWARD > $40,000.00 (continued)
b) Notice Inviting Bids (continued)
4. Per California Public Contract Code Section 20164, the first publication of
the notice shall be at least ten days before the date of opening the bids. The
notice shall be published at least twice, not less than five days apart, in a
newspaper of general circulation, printed and published in the City. The
notice may also be sent to all applicable vendors.
c) Bid Opening
1. Sealed bids shall be submitted to the City Clerk's office and shall be clearly
identified with the Bid number on the envelope. Faxed or other electronic
bids are not acceptable.
2. Bids shall be opened in public at the time and place stated in the public
notice.
3. The City Clerk or his/her designee shall open the bids and shall record all
bids received.
4. Any bid received after the time specified in the notice shall be rejected.
5. When a bidder's security is required, it will be announced in the public
notice inviting bids. The amount shall be determined at the time of
preparation of the bid. It shall be in the form of cash, certified or cashier's
check, certificate of deposit in City of Atascadero's name, or bid bond made
payable to the City of Atascadero. When a bidder's security is required, a
bid shall not be considered unless one of the aforementioned forms of
security accompanies the bid. Bidders shall be entitled to return of the bid
security with the following exception:
■ The successful bidder must execute the contract and file acceptable
documents within thirty (30) calendar days from the date of award
unless extended by the City Manager. Failure to execute the contract
shall be just cause for annulment of the award and forfeiture of the
bidder's security, not as a penalty, but as liquidated damages. The City
Council may, upon refusal or failure of the successful bidder to execute
the contract, award the contract to the next lowest responsible bidder.
6. All bids received shall be available for inspection during regular business
hours in the City Clerk's office for a period of not less than thirty (30)
calendar days after the bid opening.
d) Rejection of Bids: The City reserves the right to reject any and all bids, to
accept or reject any one or more items of a bid, or to waive any irregularities or
informalities in the bids or the bidding process if to do so is deemed to best
serve the interests of the City.
9
Section II — GENERAL SUPPLIES, MATERIALS
AND EQUIPMENT
3.0 CITY COUNCIL AWARD > $40,000.00 (continued)
e) Determining Lowest Responsible Bidder: Award of bid shall be to the lowest
responsible bidder. All valid responsible bids shall be considered in
determining the lowest bid. The City reserves the right to accept that bid which
is in the best interest of the City. When selecting the recommended bidder the
Department/Division Head will take into consideration:
1. Price.
2. Ability, capacity, and skill.
3. Ability to meet time requirements.
4. Character, integrity, and reputation.
5. Previous vendor experience.
6. Financial resources available for contract performance.
7. Ability to provide future maintenance and service, if necessary.
f) Local Vendor Preference: The City has established a policy that provides for a
two percent (2%) preference to local bidders and vendors. (See Section I —
General Policies). This is accomplished by reducing the local vendor's bids by
2% when comparing such bids to those of other bidders.
g) Tie Bids: If tie bids are received, quality and service being equal, the contract
shall be awarded to a local bidder.
1. If the above condition is not applicable, the City may, at its discretion:
■ Reject any and all bids presented and re -advertise; or
■ If the public interest will not permit the delay of re -advertising for bids,
the City may accept either one or accept the lowest bid made by
negotiation with the tie bidders; or
■ Award the bid to any one of the low tie bidders by public drawing.
h) Exceptions to Formal Bidding: The formal bid process may be bypassed in the
following four instances:
1. In emergency situations where time is of the essence, the appropriate
Department Head may dispense with obtaining formal quotes to obtain
materials necessary in dealing with the emergency. Immediately following
the emergency, the appropriate Department Head shall prepare a report to
Council explaining the emergency and the items purchased.
2. When one known supplier is available, the Department Head shall prepare a
report for Council approval requesting an exemption from the formal
bidding procedures and if applicable awarding the bid to the "sole source."
3. When there exists other governmental contracts that were competitively bid
(such as State Contracts, DGS, etc.) that the City is eligible to use in lieu of
a formal bid.
U
Section II — GENERAL SUPPLIES, MATERIALS
AND EQUIPMENT
3.0 CITY COUNCIL AWARD > $40,000.00 (continued)
h) Exceptions to Formal Bidding (continued)
4. When there are extenuating circumstances that would make formal bidding
not the most cost effective approach. This often relates to qualitative,
artistic or proprietary software/technological issues. The appropriate
Department Head shall prepare a report to Council requesting an exemption
from the formal bidding procedures.
3.2 Awarding the Bid
Once the bids have been evaluated, the Department Head/Division Head shall
prepare a report to Council recommending the most responsive bidder. The Council
shall then award the bid in a public meeting.
3.3 Purchase Order
a) A purchase order shall also be prepared detailing the vendor's name, the item
being purchased, and the estimated total price of the item being purchased and
budget account to be charged. The purchase order shall be signed and dated by
the authorized Department/Division employee. (If an exception was used to
bypass informal bidding procedures, the P.O. must be signed by the Department
Head)
b) The entire purchase order shall be submitted to the City Manager or the
Director of Administrative Services for approval. He/she will review the
purchase order package for conformity to the purchasing policy, for compliance
with other established procedures and for availability of funds. The City
Manager or the Director of Administrative Services shall then approve and sign
the purchase order. The original P.O. shall then be forwarded to the originating
Department/Division.
3.4 Change Orders
The City Manager is authorized to issue change orders for changes or additions to
the original material/supply purchase that result in less than a 20% aggregate
change in contract price. Change orders in excess of 20% shall be brought to the
City Council for approval.
11
Section III
PROPRIETARY EQUIPMENT AND GOODS
PURPOSE
Provide guidelines for the purchase of equipment/software and other artistic goods that
may only be purchased through a proprietary vendor. There is no bidding requirement for
this type of purchase, since the item is being purchased based on qualification, rather than
price.
Proprietary vendors are those vendors that directly sell their products and do not use
distributors or other outlets. (i.e. Inforum software may only be purchased through Eden
Systems, therefore it would be a "proprietary purchase" and covered under this section.
Micosoft Word may be purchased at many different stores and therefore not a
"proprietary purchase")
POLICIES
There are three levels of authority for normal purchases: Department/Division Award,
City Manager Award, and City Council Award. Generally, authority is established by the
dollar amount of the purchase.
1.0 DEPARTMENT/DIVISION AWARD < $10,000.01
The Department/Division manager may authorize the purchase of proprietary goods as
needed up to $10,000.
These purchases do not require competitive bidding and departments are given
considerable discretion in these purchases.
2.0 CITY MANAGER AWARD $10,000.01 to $40,000.00
Proprietary purchases over $10,000 and under $40,000.01 must be awarded by the City
Manager or the Director of Administrative Services. These purchases shall have
sufficient documentation of background analysis to support the purchase. Informal
solicitation of qualifications should be used to assure quality goods are received for a
reasonable price.
12
SECTION III - PROPRIETARY EQUIPMENT AND GOODS
2.0 CITY MANAGER AWARD $10,000.01 to $40,000.00 (continued)
2.1 Informal Product Review
The Department/Division shall make every attempt to review at least three
products/qualifications in writing, over the phone, or in person.
a) Documentation- Informal product review must be documented to the
satisfaction of the City Manager or the Director of Administrative Services.
Ideally, documentation should include:
1. The name of the company
2. Pros/Cons of the product
3. Estimated Price
4. The person giving the quote
5. The date and time of the phone call
6. Brief justification for the selection of the goods
b) Review of Three Products: The Department/Division should make every
reasonable attempt to review at least three products; however it is understood
that at times it is not practical or possible to review the products. In the event
that three products are not reviewed, the Department/Division shall document
why it is not practical to review alternate products.
c) Exceptions: The informal product review process may be bypassed with
Department Head and City Manager or the Director of Administrative Services
approval in the following instances:
1. In emergency situations where time is of the essence, the appropriate
Department Head may dispense with informal product review process to
obtain items necessary in dealing with the emergency. Immediately
following the emergency, the Department Head shall forward a copy of the
purchase order and contract along with an explanation to the City Manager or
the Director of Administrative Services.
d) Evaluating Products: The Department Head or designee(s) shall select the
product which, in their evaluation process, is the best solution for the City.
e) Negotiation: The Department Head or designee(s) shall discuss with the highest
ranked vendor the requirements of the City and negotiate a reasonable fee for the
product/items being purchased.
13
SECTION III - PROPRIETARY EQUIPMENT AND GOODS
2.0 CITY MANAGER AWARD $10,000.01 to $40,000.00 (continued)
2.2 Contract and Purchase Order
a) A contract shall be prepared and two original copies shall be signed by the
consultant and the Department Head.
b) A purchase order shall also be prepared detailing the vendor's name, the item
being purchased, and the estimated total price of the item being purchased and
budget account to be charged. The purchase order shall be signed and dated by
the authorized Department/Division employee. (If an exception was used to
bypass informal bidding procedures, the P.O. must be signed by the Department
Head)
c) The entire purchase order and both original copies of the contract (if applicable)
shall be submitted to the City Manager or the Director of Administrative
Services for approval. He/she will review the contract and purchase order
package for conformity to the purchasing policy, for compliance with other
established procedures and for availability of funds. The City Manager or the
Director of Administrative Services shall then approve and sign the purchase
order. The original P.O. and one original copy of the executed contract shall
then be forwarded to the originating Department/Division.
2.3 Executing the Contract
Once the Department/Division has received the approved Purchase Order and an
original copy of the contract from the City Manager or the Director of
Administrative Services, they may make arrangements with the vendor for purchase
of the product.
2.4 Change Orders
The City Manager is authorized to issue change orders for changes or additions to
the original purchase of proprietary equipment and goods that result in less than a
$40,000 overall contract amount. Change orders in excess of the $40,000 total
contract amount shall be brought to the City Council for approval.
3.0 CITY COUNCIL AWARD > $40,000.00
Proprietary purchases exceeding $40,000 must be awarded by the City Council. A more
formal evaluation should be used, thereby assuring the City that it has purchased the best
product fit for the City. The formal process generally takes more time and expense than
informal solicitations and in some instances may actually not be the most cost-effective
approach.
14
SECTION III - PROPRIETARY EQUIPMENT AND GOODS
3.0 CITY COUNCIL AWARD > $40,000.00 (continued)
3.1 Formal Evaluation of Products/Goods:
a) To ensure maximum exposure and competition, the responsible department shall
prepare a list of potential firms from which to solicit quotes. City staff shall
make reasonable efforts to ensure that small business firms, located in San Luis
Obispo County, are aware of the purchase.
b) A Selection Committee shall be formed to evaluate the submitted data and
determine the products that should receive further consideration. The Committee
shall be appointed by the Department Head, subject to the approval of the City
Manager or the Director of Administrative Services, and may consist of more
than one department.
1. The Selection Committee may choose to interview all of the responding
vendors, only the top few ranking vendors or to not perform interviews.
2. The Selection Committee may also choose to view demonstrations of all of
the products (either at a working site or at the City), only the top few
ranking products or to not view demonstrations
3. After the interviews, demonstrations and site visits (as applicable), the
Selection Committee shall rank the products.
a) Negotiation: The Department Head or designee(s) shall discuss with the
highest ranked vendor the requirements of the City and negotiate a reasonable
fee/contract.
3.2 Awarding the Contract:
The Department Head/Division Head shall prepare a report to Council
recommending the top ranked product. The Council shall then award the purchase
in a public meeting.
Except for urgencies all contracts exceeding $40,000.00 must be awarded by the
City Council. Otherwise:
■ Such purchases are void and not considered an obligation of the City.
■ Invoices may be returned to the contractor/service provider unpaid.
■ The person ordering the unauthorized purchase may be held personally liable for
the costs of the contract.
15
SECTION III - PROPRIETARY EQUIPMENT AND GOODS
3.0 CITY COUNCIL AWARD > $40,000.00 (continued)
3.3 Contract and Purchase Order
a) A contract may be prepared as applicable and two original copies shall be
signed by the vendor.
b) A purchase order shall also be prepared detailing the vendor's name, item being
purchased, estimated total price of the item being purchased and budget account
to be charged. The purchase order shall be signed and dated by the Department
Head.
c) The City Attorney shall sign the two original copies of the contract, approving
it as to form.
d) The City Manager or his/her Council designee shall sign the two original copies
of the contract, approving it as to form.
e) The entire purchase order, and both copies of the contract shall be submitted to
the City Manager or the Director of Administrative Services for approval.
He/she will review the contract and purchase order package for conformity to
the purchasing policy, for compliance with other established procedures and for
availability of funds. The City Manager or the Director of Administrative
Services shall then approve and sign the purchase order.
f) One copy of the executed contract shall be returned to the contractor/service
provider and the other original shall remain in the City Clerk's Office. A copy
of the executed contract shall be sent to the initiating department and a copy to
the Administrative Services Department.
3.4 Change Orders
The City Manager is authorized to issue change orders for changes or additions to
the original purchase of proprietary equipment and goods that result in less than a
20% aggregate change in contract price. Change orders in excess of 20% shall be
brought to the City Council for approval.
Section IV
GENERAL TRADE SERVICES
PURPOSE
Provide guidelines for the purchase of trade contractual services. Trade services shall
mean the repair, rental or maintenance of equipment, machinery and other City -owned or
operated property. Included within this term are services necessary for the routine
operation, repair or maintenance of existing buildings or improvements. The term does
not include services rendered by professionals and other services which are unique
in nature and not subject to competition.
In instances where goods and trade services are purchased together from one
contractor/service provider, this section shall only apply if the predominant portion of the
purchase is services (i.e. repair of equipment with $1,000 in labor and $300 in parts
would be covered under this section of the policy. A purchase of equipment for $1,000
with a $300 installation fee would be covered under Section II- General Supplies,
Materials and Equipment).
POLICIES
There are three levels of authority for normal purchases: Department/Division Award,
City Manager Award, and City Council Award. Generally, authority is established by the
dollar amount of the purchase.
1.0 DEPARTMENT/DIVISION AWARD < $10,000.01
The Department/Division manager may authorize the purchase of services as needed up
to $10,000 per project or annually (for ongoing maintenance contracts) as applicable.
Projects that would typically be performed by one contractor/service provider may not be
split into components in order to avoid purchasing limits.
These purchases do not require competitive bidding and departments are given
considerable discretion in these purchases.
The Department/Division will obtain a completed IRS form W-9 from the contractor/
service provider prior to awarding the contract. The W-9, shall immediately be
forwarded to the Administrative Services department in order to comply with State
Reporting Requirements.
17
SECTION IV - GENERAL TRADE SERVICES
2.0 CITY MANAGER AWARD $10,000.01 to $40,000.00
Trade service awards over $10,000 and under $40,000.01 must be awarded by the City
Manager or the Director of Administrative Services. Informal bidding should be used to
assure the most competitive price is received for an item, while avoiding the additional
time and expense involved in formal bidding.
2.1 Informal Quotes:
The Department/Division shall strive to receive three bids in writing or over the
phone, whenever possible.
a) Documentation: Bids received over the phone or in writing must be
documented to the satisfaction of the City Manager or the Director of
Administrative Services. Ideally, documentation should include the name of
the company bidding, the person giving the quote, the date and time of the
contact, the amount quoted and any other relevant information.
b) Exceptions: The informal bid process may be bypassed with Department Head
and City Manager or the Director of Administrative Services approval in the
following five instances:
In emergency situations where time is of the essence, the appropriate
Department Head may dispense with obtaining three informal quotes to
obtain services necessary in dealing with the emergency. Immediately
following the emergency, the Department Head shall forward a copy of
the purchase order along with an explanation to the City Manager or the
Director of Administrative Services.
2. When one known service provider is available, the Department
Head/Division shall document that it is a "sole source" purchase.
3. When there exists other governmental contracts that were competitively
bid (such as State Contracts, DGS, etc.) that the City is eligible to use.
4. When an item has been bid within the last 36 months and the price has not
changed.
5. When it is not practical nor cost effective to continue soliciting quotes
until three bids are received, the Department Head at his/her discretion
may choose the vendor best suited for the needs of the particular project.
c) Evaluating Bids: The Department/Division shall evaluate the three informal
quotes received and determine the lowest most responsible bid. The City
reserves the right to accept that bid which is in the best interest of the City.
18
SECTION IV - GENERAL TRADE SERVICES
2.0 CITY MANAGER AWARD $10,000-01 to $40,000.00 (Continued)
c) Evaluating Bids (continued):
When selecting the recommended bidder the Department/Division Head will
take into consideration:
1. Price.
2. Ability, capacity, and skill.
3. Ability to meet time requirements.
4. Character, integrity, and reputation.
5. Previous contractor/service provider experience.
6. Financial resources available for contract performance.
7. Ability to provide future maintenance and service, if necessary.
2.2 Contract and Purchase Order
a) A contract shall be prepared and two original copies shall be signed by the
contractor/service provider and Department Head.
b) A purchase order shall also be prepared detailing the contractor/service provider
name, service being purchased, estimated total price of the service being
purchased and budget account to be charged. The purchase order shall be
signed and dated by the authorized Department/Division employee. (If an
exception was used to bypass informal bidding procedures, the P.O. must be
signed by the Department Head)
c) The Department/Division will obtain a completed IRS form W-9 from the
contractor/ service provider.
d) The entire purchase order, the W-9 and both original copies of the contract
shall be submitted to the City Manager or the Director of Administrative
Services for approval. He/she will review the contract and purchase order
package for conformity to the purchasing policy, for compliance with other
established procedures and for availability of funds. The City Manager or the
Director of Administrative Services shall then approve and sign the purchase
order. The original P.O. and one original copy of the executed contract shall
then be forwarded to the originating Department/Division.
2.3 Executing the Contract
Once the Department/Division has received the approved Purchase Order and an
original copy of the contract from the City Manager or the Director of
Administrative Services, they may make arrangements with the contractor/service
provider for services.
19
SECTION IV - GENERAL TRADE SERVICES
2.0 CITY MANAGER AWARD $10,000.01 to $40,000.00 (Continued)
2.4 Renewals
Contracts for ongoing services may include annual renewal provisions for up to five
years, however in no instance may the contract exceed $40,000.00 in any one year.
Cost increases related to such renewals shall not exceed the Consumer Price Index
(CPI) adjustments unless approved in advance by the City Manager.
2.5 Change Orders
The City Manager is authorized to issue change orders for changes or additions to
the original scope of work that result in less than a $40,000 overall contract amount.
Change orders in excess of the $40,000 total contract amount shall be brought to the
City Council for approval.
3.0 CITY COUNCIL AWARD > $40,000.00
Trade service contracts exceeding $40,000 must be awarded by the City Council. Formal
bidding should be used to assure all possible contractor/service providers are given the
opportunity to bid on major City contracts, 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.
3.1 Formal Bidding
The initiating Department/Division shall be responsible for completion of the formal
bid process, however the process shall be coordinated with the City Clerk's Office
and the Administrative Services Department.
a) Bid Forms: The initiating department shall prepare a bid form including detail
specifications for the services to be purchased. The following format is
suggested for competitive bids:
Submission of bids (or proposals) — Include date, time, location and bid
number as assigned by the City Clerk. Include a detail list of the
information the bid or proposal should contain.
2. Questions — List the name, address, and telephone number of the person to
be contacted concerning questions about the project.
3. Background - Provide as much background as necessary to give the bidder
an understanding of the environment in which the job will be performed and
to which the job relates.
4. Scope of work — Describe in detail the requirement for the job and detail
specification
20
SECTION IV - GENERAL TRADE SERVICES
3.0 CITY COUNCIL AWARD > $40,000.00 (Continued)
a) Bid Forms (continued)
5. Desired project schedule — Be as specific as possible.
6. Minimum and desirable qualifications — Be as specific as possible.
7. Performance Bond- Whether a performance bond is required and if so, the
amount and form of bidders security.
8. Sample Contract- A sample of the contract that is expected to be used
should be included in the bid package.
b) Notice Inviting Bids: The initiating department shall also prepare a notice
inviting bids that includes the following:
1. A general description of the services to be purchased.
2. A statement indicating where bid forms, specifications and bonding
requirements can be obtained.
3. A statement specifying the time and place for the opening of the bids
4. Per California Public Contract Code Section 20164, the first publication of
the notice shall be at least ten days before the date of opening the bids. The
notice shall be published at least twice, not less than five days apart, in a
newspaper of general circulation, printed and published in the City. The
notice may also be sent to all applicable contractor/service providers.
c) Bid Opening
1. Sealed bids shall be submitted to the City Clerk's office and shall be clearly
identified with the Bid number on the envelope. Faxed or other electronic
bids are not acceptable.
2. Bids shall be opened in public at the time and place stated in the public
notice.
3. The City Clerk or his/her designee shall open the bids and shall record all
bids received.
4. Any bid received after the time specified in the notice shall be rejected.
5. When a bidder's security is required, it will be announced in the public
notice inviting bids. The amount shall be determined at the time of
preparation of the bid. It shall be in the form of cash, certified or cashier's
check, certificate of deposit in the City of Atascadero's name or bid bond
made payable to the City of Atascadero. When a bidder's security is
required, a bid shall not be considered unless one of the aforementioned
forms of security accompanies the bid. Bidders shall be entitled to return of
the bid security with the following exception:
■ The successful bidder must execute the contract and file acceptable
documents within thirty (30) calendar days from the date of award
unless extended by the City Manager. Failure to execute the contract
shall be just cause for annulment of the award and forfeiture of the
21
SECTION IV - GENERAL TRADE SERVICES
3.0 CITY COUNCIL AWARD > $40,000.00 (Continued)
bidder's security, not as a penalty, but as liquidated damages. The City
Council may, upon refusal or failure of the successful bidder to execute
the contract, award the contract to the next lowest responsible bidder.
6. All bids received shall be available for inspection during regular business
hours in the City Clerk's office for a period of not less than thirty (30)
calendar days after the bid opening.
d) Rejection of Bids: The City reserves the right to reject any and all bids, to
accept or reject any one or more items of a bid, or to waive any irregularities or
informalities in the bids or the bidding process if to do so is deemed to best
serve the interests of the City.
e) Determining Lowest Responsible Bidder: Award of bid shall be to the lowest
responsible bidder. All valid responsible bids shall be considered in
determining the lowest bid. The City reserves the right to accept that bid which
is in the best interest of the City. When selecting the recommended bidder the
City staff will take into consideration:
1. Price.
2. Ability, capacity, and skill.
3. Ability to meet time requirements.
4. Character, integrity, and reputation.
5. Previous contractor/service provider experience.
6. Financial resources available for contract performance.
7. Ability to provide future maintenance and service, if necessary
f) Local Contractor/Service Provider Preference: The City has established a policy
that provides for a two percent (2%) preference to local bidders and
contractor/service providers. (See Section I — General). This is accomplished
by reducing the local contractor/service provider's bids by 2% when comparing
such bids to those of other bidders.
g) Tie Bids: If tie bids are received, quality and service being equal, the contract
shall be awarded to a local bidder.
If the above condition is not applicable, the City may, at its discretion:
I. Reject any and all bids presented and re -advertise; or
2. City may accept either one or accept the lowest bid made by negotiation
with the tie bidders; or
3. Award the bid to any one of the low tie bidders by public drawing
22
SECTION IV - GENERAL TRADE SERVICES
3.0 CITY COUNCIL AWARD > $40,000.00 (Continued)
h) Exceptions to Formal Bidding: The formal bid process may be bypassed in the
following four instances:
1. In emergency situations where time is of the essence, the appropriate
Department Head may dispense with obtaining formal quotes to obtain
services necessary in dealing with the emergency. Immediately following
the emergency, the appropriate Department Head shall prepare a report to
Council explaining the emergency and the items purchased.
2. When one known service provider is available, the Department Head shall
prepare a report for Council approval requesting an exemption from the
formal bidding procedures and if applicable awarding the bid to the "sole
source."
3. When there exists other governmental contracts that were competitively bid
that the City is eligible to use in lieu of a formal bid.
4. When there are extenuating circumstances that would make formal bidding
not the most cost effective approach. This often relates to qualitative,
artistic or proprietary software/technological issues. The appropriate
Department Head shall prepare a report to Council requesting an exemption
from the formal bidding procedures.
i) Ongoing Professional Services
1. In some instances it is in the best interest of the City to have current
ongoing contracts with multiple consultants for the same or very similar
services. (i.e. services that can be defined as to scope of work but not as to
required events such as contract planning services, public safety
investigations, soils testing, contract building inspections services, etc.)
These services would best be handled by establishing an eligibility list and
by entering into annual ongoing professional service contracts.
2. The process for selecting firms for annual ongoing professional service
contracts shall be generally the same as for other professional services
contracts, however multiple firms may be awarded an ongoing contract
based on the RFP/RFQ process and may be placed on the eligibility list.
Additional firms/individuals may also be awarded contracts and placed on
the eligibility list at a later date, using the RFP/RFQ process without
impacting contracts currently in place.
3. Council shall award each ongoing contract that is expected to exceed
$40,000.00 at a public meeting.
4. As events occur and need arises, work will be assigned to the consultants on
the eligibility list at the sole discretion of the Department Head. The
Department Head, however, shall make a reasonable attempt to rotate work
between consultants subject to availability and special needs.
23
SECTION IV - GENERAL TRADE SERVICES
3.0 CITY COUNCIL AWARD > $40,000.00 (Continued)
j) Negotiation: The Department Head or designee(s) shall discuss with the highest
ranked firm(s) the requirements of the project, the scope of services needed to
meet the requirements, and negotiate a reasonable fee/contract for the established
work assignment.
3.2 Awarding the Bid
Once the bids have been evaluated, the Department Head/Division Head shall
prepare a report to Council recommending the most responsive bidder. The Council
may then award the bid in a public meeting.
Except for urgencies all contracts exceeding $40,000.00 must be awarded by the
City Council. Otherwise:
1. Such purchases are void and not considered an obligation of the city.
2. Invoices may be returned to the contractor/service provider unpaid.
3. The person ordering the unauthorized purchase may be held personally liable for
the costs of the contract.
3.3 Contract and Purchase Order
a) A contract shall be prepared and the contractor/service provider shall sign the
two original copies.
b) A purchase order shall also be prepared detailing the contractor/service provider
name, service being purchased, estimated total price of the service being
purchased and budget account to be charged. The purchase order shall be
signed and dated by the Department Head.
c) The Department/Division will obtain a completed IRS form W-9 from the
contractor/ service provider.
d) Proof of insurance in accordance with the contract shall be obtained
e) The City Attorney shall sign the two original copies of the contract approving it
as to form.
f) The City Manager or his/her Council designee shall sign the two original copies
of the contract approving it as to form.
g) The entire purchase order, the W-9, proof of insurance and both original copies
of the contract shall be submitted to the City Manager or the Director of
Administrative Services for approval and signature.
h) One original copy of the executed contract shall be returned to the
contractor/service provider and the other original shall remain in the City
Clerk's Office. A copy of the executed contract shall be sent to the initiating
department and a copy to the Administrative Services Department.
24
SECTION IV - GENERAL TRADE SERVICES
3.0 CITY COUNCIL AWARD > $40,000.00 (Continued)
3.4 Renewals
Contracts for ongoing services may include annual renewal provisions for up to five
years.
3.5 Change Orders
The City Manager is authorized to issue change orders for changes or additions to
the original scope of work that result in less than a 20% aggregate change in
contract price. Change orders in excess of 20% shall be brought to the City Council
for approval.
4.0 UTILITIES AND OTHER SERVICE AGREEMENTS
Items that cannot be purchased under the procedures above or ongoing expenses for
utilities or services (such as telephones, services agreements, etc.) do not require a
Purchase Order. The bill or invoice should be forwarded to Administrative Services
with an authorized signature and account number to be charged.
25
SECTION V
PROFESSIONAL SERVICES
PURPOSE
Provide guidelines for the purchase of professional services. Professional services are
those activities performed by a consultant who possesses a high degree or expertise in a
particular profession. This would generally include (but not be limited to) architectural
services, accounting/auditing services, environmental services, design services,
engineering services, technical services, financial services, legal services, economic
services and other administrative services. There is no bidding requirement for this type
of service, since the agent is being hired based on his/her qualifications, not the lowest
bid.
POLICIES
There are three levels of authority for normal purchases: Department/Division Award,
City Manager Award, and City Council Award. Generally, authority is established by the
dollar amount of the purchase.
1.0 DEPARTMENT/DIVISION AWARD < $10,000.01
The Department/Division Head may authorize the purchase of professional services as
needed up to $10,000 per project or annually (for ongoing/recurring contracts) as
applicable. Projects which would typically be performed by one consultant may not be
split into components in order to avoid purchasing limits.
These purchases do not require competitive bidding and departments are given
considerable discretion in these purchases.
The Department/Division will obtain a completed IRS form W-9 from the contractor/
service provider prior to awarding the contract. The W-9, shall immediately be
forwarded to the Administrative Services Department in order to comply with State
Reporting Requirements.
2.0 CITY MANAGER AWARD $10,000-01 to $40,000.00
Professional service contracts over $10,000 and under $40,000.01 must be awarded by
the City Manager or the Director of Administrative Services. These professional service
agreements shall have sufficient documentation of background analysis to support the
26
SECTION V - PROFESSIONAL SERVICES
2.0 CITY MANAGER AWARD $10,000.01 to $40,000.00 (continued)
contract. Informal solicitation of qualifications should be used to assure quality services
are received for a reasonable price.
2.1 Informal Solicitation of Qualifications:
The Department/Division shall strive to, whenever possible, solicit at least three
qualifications/proposals in writing or over the phone. When it is not practical, nor
cost effective to receive three qualifications/proposals in writing or over the phone,
the Department Head at his/her discretion, may choose the vendor best suited for the
needs of the particular project. It is important that the specifications are accurate
and comprehensive, thus it may be beneficial to transmit the specifications and
responses by fax or mail even when the proposal is received verbally.
a) Documentation- Informal quotations must be documented to the satisfaction of
the City Manager or the Director of Administrative Services. Ideally,
documentation should include
1. The name of the company
2. The person giving the quote
3. The date and time of the phone call
4. Understanding of the required scope of services.
5. Specialized experience of the firm and its personnel relative to the required
services.
6. References who can be contacted to verify past record of performance, i.e.,
completion of a quality product, in a timely manner, and within budget
constraints.
7. The capacity of the firm to perform the subject project within a required
timeframe.
8. Estimated Price
b) Exceptions: The informal bid process may be bypassed with Department Head
and City Manager or the Director of Administrative Services approval in the
following instances:
1. In emergency situations where time is of the essence, the appropriate
Department Head may dispense with obtaining three informal quotes to
obtain services necessary in dealing with the emergency. Immediately
following the emergency, the Department Head shall forward a copy of the
purchase order and contract along with an explanation to the City Manager
or the Director of Administrative Services.
27
SECTION V - PROFESSIONAL SERVICES
2.0 CITY MANAGER AWARD $10,000.01 to $40,000.00 (continued)
2.1 Informal Solicitation of Qualifications: (continued)
2. When one known service provider is available, the Department
Head/Division shall document that it is a "sole source" purchase.
3. When an item has been bid within the last 36 months and the price has not
changed.
4. When there exists other governmental contracts that were competitively bid
(such as State Contracts, DGS, etc.) that the City is eligible to use.
5. When it is not practical nor cost effective to continue soliciting quotes until
three bids are received, the Department Head at his/her discretion may
choose the vendor best suited for the needs of the particular project.
c) Evaluating Bids: The Department/Division Head or designee(s) shall select the
consultant which, in their evaluation process, is the most qualified to perform
the work. The evaluation and selection process shall be based upon the
following considerations:
1. General quality and responsiveness to the request, including but not limited
to:
■ Responsiveness to the terms, conditions, and items of performance;
■ Grasp of the problem, work to be performed, and approach to be used.
2. Organization and personnel making the proposal;
■ Evidence of good organizational and management practices.
■ Qualification of the personnel.
■ Specialized experience of the firm and its personnel relative to the
required services.
■ References who can be contacted to verify past record of performance
(i.e., completion of a quality product in a timely manner and within
budget constraints).
■ Previous consultant experience
■ The financial condition of the firm.
■ Capacity of the firm to perform the subject project within a required
timeframe
3. If appropriate, the price, in any of the following formats, may be
considered.
■ Total price and price breakdown.
■ Price range.
■ Cost schedule.
28
SECTION V - PROFESSIONAL SERVICES
2.0 CITY MANAGER AWARD $10,000-01 to $40,000.00 (continued)
2.1 Informal Solicitation of Qualifications: (continued)
d) Ongoing Professional Services: In some instances it is in the best interest of the
City to have current ongoing contracts with multiple consultants for the same or
very similar services. (i.e. services that can be defined as to scope of work but
not as to required events such as contract planning services, public safety
investigations, soils testing, contract building inspections services, etc.) These
services would best be handled by establishing an eligibility list and by entering
into annual ongoing professional service contracts.
The process for selecting firms for annual ongoing professional service
contracts shall be generally the same as for other professional services
contracts, however multiple consultants may be awarded an ongoing contract
based on the informal process and may be placed on the eligibility list.
Additional consultants may also be awarded contracts and placed on the
eligibility list at a later date, using the informal process without impacting
contracts currently in place.
As events occur and need arises, work will be assigned to the firms/individuals
on the eligibility list at the sole discretion of the Department Head.
e) Negotiation: The Department Head or designee(s) shall discuss with the highest
ranked firm(s) the requirements of the project, the scope of services needed to
meet the requirements, and negotiate a reasonable fee for the established work
assignment.
2.2 Contract and Purchase Order
a) A contract shall be prepared and two original copies shall be signed by the
consultant and the Department Head.
b) A purchase order shall also be prepared detailing the consultant's name, service
being purchased, estimated total price of the service being purchased and
budget account to be charged. The purchase order shall be signed and dated by
the authorized Department/Division employee. (If an exception was used to
bypass informal bidding procedures, the P.O. must be signed by the Department
Head).
c) The Department/Division will obtain a completed IRS form W-9 from the
consultant.
d) The entire purchase order, the W-9 and both original copies of the contract shall
be submitted to the City Manager or the Director of Administrative Services for
approval. He/she will review the contract and purchase order package for
conformity to the purchasing policy, for compliance with other established
procedures and for availability of funds. The City Manager or the Director of
Administrative Services shall then approve and sign the purchase order. The
original P.O. and one original copy of the executed contract shall then be
forwarded to the originating Department/Division.
WE
SECTION V - PROFESSIONAL SERVICES
2.0 CITY MANAGER AWARD $10,000.01 TO $40,000.00 (continued)
2.3 Executing the Contract
Once the Department/Division has received the approved Purchase Order and an
original copy of the contract from the City Manager or the Director of
Administrative Services, they may make arrangements with the consultant for
services.
2.4 Renewals
Contracts for ongoing professional services may include annual renewal provisions
for up to five years; however, in no instance may the contract exceed $40,000.00 in
any one year. Cost increases related to such renewals shall not exceed the
Consumer Price Index (CPI) adjustments unless approved in advance by the City
Manager.
2.5 Change Orders
The City Manager is authorized to issue change orders for changes or additions to
the original scope of work that result in less than a less than $40,000 annual contract
amount. Change orders in excess of the $40,000 contract amount shall be brought
to the City Council for approval.
3.0 CITY COUNCIL AWARD > $40.000.00
Professional service contracts exceeding $40,000 must be awarded by the City Council.
A Formal Request for Proposal (RFP) or a Request for Qualifications (RFQ) process
should be used, thereby assuring the City that it has engaged the most qualified
consultant available for the engagement. The formal process generally takes more time
and expense than informal solicitations of qualifications and in some instances may
actually not be the most cost-effective approach.
3.1 Formal Request for Proposal or Request for Qualifications:
a) Developing the RFP or RFQ: Because RFP's and RFQ's ask for a subjective product,
they should contain the greatest detail possible, and may include the following:
1. A precise description of the problem or objective
2. The services to be performed
3. The product to be provided
30
SECTION V - PROFESSIONAL SERVICES
3.0 CITY COUNCIL AWARD > $40,000.00 (continued)
3.1 Formal Request for Proposal or Request for Qualifications: (continued)
a) Developing the RFP or RFQ (continued)
4. The anticipated time schedule for:
■ Submittal of RFP/RFQ (date and time)
■ Any pre -proposal conference (date, time and location)
■ Review and evaluation of the proposals
■ Award of the contract
■ Commencement of work on the project
■ Completion date
5. Evaluation factors and the relative importance of each.
6. Expectations or limitations on the part of the City, i.e.
■ The format, form and quantity of any expected reports
■ The extent/nature of assistance/cooperation available from the City
7. Expected content of the RFP/RFQ, including:
■ The overall description of techniques to be used
■ Listing of similar services provided to other clients
■ Listing of available references to contact
■ Description and qualifications of assigned lead and supporting
personnel
■ Time and staff expected to be expended
■ Facilities and equipment to be used
■ Portion of contract to be performed by sub -contractors
■ Subcontractors/Subconsultants qualifications
■ Cost, in summary and total, and desired method of payment. The
RFP/RFQ for services may, but is not required to, state the amount
budgeted for the service.
8. Contractual requirements including, but not limited to:
■ Prohibition against assignment
■ Indemnification
■ Insurance requirements
31
SECTION V - PROFESSIONAL SERVICES
3.0 CITY COUNCIL AWARD > $40,000.00 (continued)
3.1 Formal Request for Proposal or Request for Qualifications: (continued)
a) Developing the RFP or RFQ (continued)
8. Contract Requirements (continued)
■ Bonding requirements
■ Warranties
■ Compliance with federal, state and City laws, rules and regulations
■ Compliance with any grant related regulations
■ Sample contract
9. Construction project management service RFP's may require evidence be
provided of experience in construction project design review and
evaluation, construction mobilization and supervision, bid evaluation,
project scheduling, cost -benefit analysis, claims review and negotiation, and
general management and administration of a construction project.
b) Issuing the RFP/RFQ
1. To ensure maximum exposure and competition, the responsible department
shall prepare a list of potential firms to receive the RFP/RFQ. City staff
shall make reasonable efforts to ensure that small business firms, located in
San Luis Obispo County, are aware of the RFP/RFQ's issued.
2. If required or desired, the responsible department will submit the RFP/RFQ
notice to be advertised in a local newspaper of general circulation. The
notice will be published one or more times beginning at least fourteen
calendar days prior to the designated closing. Additional advertisements
may be placed in a regional newspaper of general circulation; appropriate
professional or trade journals; and state or governmental publications
designed for public notice.
3. A reasonable length of time between solicitation and closing dates must be
allowed to provide potential respondents time for preparation in accordance
with the complexity, the size of the project, and the scope of advertising.
4. City staff may conduct conferences to explain the requirements of the
project. A sufficient amount of time should be allowed after the RFP/RFQ
has been issued to allow potential respondents to become familiar with the
project. Any clarification or changes required to the RFP/RFQ, as a result of
the conference, shall be added as a written amendment. A summary of the
conference shall be provided to all prospective respondents receiving the
request.
32
SECTION V - PROFESSIONAL SERVICES
3.0 CITY COUNCIL AWARD > $40,000.00 (continued)
3.1 Formal Request for Proposal or Request for Qualifications: (continued)
b) Issuing the RFP/RFQ (continued)
5. The requesting department shall prepare sufficient copies of the RFP/RFQ
to allow distribution to potential respondents of record and responses to the
published advertisements. In addition, the department shall maintain a list of
RFP/RFQ's issued and responses.
6. Amendments should be used to make any changes in quantities,
descriptions, schedules, or to correct defects or ambiguities in the original
RFP/RFQ. Amendments are provided to ensure that all potential
respondents are furnished with the same information with which to prepare
proposals.
Amendments to the RFP/RFQ shall be identified as such and shall require
acknowledgment as such by firms receiving the RFP/RFQ. Amendments
shall be sent to all known recipients of the RFP/RFQ within a reasonable
time period before the closing date. If the time and date established for the
receipt of proposals does not allow sufficient time for consideration and
changes, the time and date will be modified by amendment.
c) Proposal Opening:
1. Proposals shall be submitted to the City Clerk's office and shall be clearly
identified with the Proposal number on the envelope. Faxed or other
electronic proposals are not acceptable.
2. Proposals received by 5:00 p.m. of the designated closing day will be
opened on the following workday for preliminary review.
3. Any proposal received after the time specified in the RFP/RFQ shall be
returned unopened.
4. To avoid disclosure of the contents of competing RFPs/RFQs, proposals
will be opened in the presence of City Clerk or his/her designee and the
Department Head or the Director of Administrative Services, requesting the
proposals.
5. Respondents may modify of withdraw their proposals prior to the
established closing date and time, without penalty. However, any
modifications submitted after the established closing date and time will not
be accepted. Such modifications will be returned to the respondent,
unopened.
33
SECTION V - PROFESSIONAL SERVICES
3.0 CITY COUNCIL AWARD > $40,000.00 (continued)
3.1 Formal Request for Proposal or Request for Qualifications: (continued)
c) Issuing the RFP/RFQ (continued)
6. The City Clerk's office shall maintain a list of proposals received, including
name and address of respondent, the number of modifications received, if
any, and any additional information requested. The register will be open to
inspection after the award of the contract or the rejection of all proposals.
7. Proposals and modifications shall be shown only to the evaluation
committee personnel, the City Clerk or his/her designee, and the
Department Head (or the Director of Administrative Services) until a
recommendation is made to Council or all proposals have been rejected.
d) Rejection of Proposals: The City reserves the right to reject any and all proposals,
to accept or reject any one or more items of a proposal, or to waive any
irregularities or informalities in the proposal or the RFP/RFQ process if to do so is
deemed to best serve the interests of the City.
e) Evaluation Factors and Method: Because unique services are requested, cost
is not considered the primary selection criteria.
1. Evaluation factors may include:
■ General quality and responsiveness of the proposal, including but not
limited to:
- Responsiveness to the terms, conditions, and items of performance;
- Completeness and thoroughness of the proposal;
- Grasp of the problem, work to be performed, and approach to be
used.
■ Organization and personnel making the proposal:
- Evidence of good organizational and management practices.
- Qualification of the personnel.
- Specialized experience of the firm and its personnel relative to the
required services.
- References who can be contacted to verify past record of
performance, i.e., completion of a quality product, in a timely
manner, and within budget constraints.
- The financial condition of the firm.
- Capacity of the firm to perform the subject project within a required
time frame
34
SECTION V - PROFESSIONAL SERVICES
3.0 CITY COUNCIL AWARD > $40,000.00 (continued)
3.1 Formal Request for Proposal or Request for Qualifications: (continued)
e) Evaluation Factors and Method (continued)
1. Evaluation factors may include: (continued)
■ If appropriate, the price, in any of the following formats, may be
considered.
- Total price and price breakdown.
- Price range.
- Cost schedule.
2. A Selection Committee shall be formed to evaluate the submitted data and
determine the products that should receive further consideration. The
Committee shall be appointed by the Department Head, subject to the
approval of the City Manager or the Director of Administrative Services,
and may consist of more than one department.
3. The Selection Committee may choose to interview all of the responding
consultants, only the top few ranking consultants or to not perform
interviews.
4. After the interviews (if applicable), the Selection Committee shall rank the
consultants based on their proposals, interviews, and references.
f) Exceptions to Formal RFP/RFQ: The formal RFP/RFQ process may be bypassed
in the following three instances:
1. In emergency situations where time is of the essence, the appropriate
Department Head may dispense with the formal RFP/RFQ process to obtain
services necessary in dealing with the emergency. Immediately following
the emergency, the appropriate Department Head shall prepare a report to
Council explaining the emergency and the items purchased.
2. When one known service provider is available, the Department Head shall
prepare a report for Council approval requesting an exemption from the
formal RFP/RFQ procedures and if applicable awarding the bid to the "sole
source".
3. When there are extenuating circumstances that would make the formal
RFP/RFQ process not the most cost effective approach. This often relates
to qualitative, artistic or proprietary software/technological issues. The
appropriate Department Head shall prepare a report to Council requesting
an exemption from the formal bidding procedures.
35
SECTION V - PROFESSIONAL SERVICES
3.0 CITY COUNCIL AWARD > $40,000.00 (continued)
3.1 Formal Request for Proposal or Request for Qualifications: (continued)
g) Ongoing Professional Services
1. In some instances it is in the best interest of the City to have current
ongoing contracts with multiple consultants for the same or very similar
services. (i.e. services that can be defined as to scope of work but not as to
required events such as contract planning services, public safety
investigations, soils testing, contract building inspections services, etc.)
These services would best be handled by establishing an eligibility list and
by entering into annual ongoing professional service contracts.
2. The process for selecting firms for annual ongoing professional service
contracts shall be generally the same as for other professional services
contracts, however multiple firms may be awarded an ongoing contract
based on the RFP/RFQ process and may be placed on the eligibility list.
Additional firms/individuals may also be awarded contracts and placed on
the eligibility list at a later date, using the RFP/RFQ process without
impacting contracts currently in place.
3. Council shall award each ongoing contract that is expected to exceed
$40,000.00 at a public meeting.
4. As events occur and need arises, work will be assigned to the consultants on
the eligibility list at the sole discretion of the Department Head. The
Department Head, however, shall make a reasonable attempt to rotate work
between consultants subject to availability and special needs.
h) Negotiation: The Department Head or designee(s) shall discuss with the highest
ranked firm(s) the requirements of the project, the scope of services needed to
meet the requirements, and negotiate a reasonable fee/contract for the established
work assignment.
3.2 Awarding the Contract:
The Department Head/Division Head shall prepare a report to Council recommending the
most responsive consultant. The Council shall then award the contract in a public
meeting.
36
SECTION V - PROFESSIONAL SERVICES
3.0 CITY COUNCIL AWARD > $40,000.00 (continued)
3.2 Awarding the contract (continued)
Except for urgencies all contracts exceeding $40,000.00 must be awarded by the City
Council. Otherwise:
■ Such purchases are void and not considered an obligation of the city.
■ Invoices may be returned to the contractor/service provider unpaid.
■ The person ordering the unauthorized purchase may be held personally liable for the
costs of the contract.
3.3 Contract and Purchase Order
a) A contract shall be prepared and the consultant shall sign the two original
copies.
b) A purchase order shall also be prepared detailing the consultant's name, service
being purchased, estimated total price of the service being purchased and
budget account to be charged. The purchase order shall be signed and dated by
the Department Head.
c) The Department/Division will obtain a completed IRS form W-9 from the
consultant.
d) Proof of insurance in accordance with the contract shall be obtained
e) The City Attorney shall sign the two original copies of the contract approving it
as to form.
f) The City Manager or his/her Council designee shall sign the two original copies
of the contract approving it as to form.
g) The entire purchase order, the W-9, proof of insurance and both original copies
of the contract shall be submitted to the City Manager or the Director of
Administrative Services for approval and signature.
h) One original copy of the executed contract shall be returned to the
contractor/service provider and the other original shall remain in the City
Clerk's Office. A copy of the executed contract shall be sent to the initiating
department and a copy to the Administrative Services Department.
3.4 Renewals
Contracts for ongoing services may include annual renewal provisions for up to five
years.
3.5 Change Orders
The City Manager is authorized to issue change orders for changes or additions to the
original scope of work that result in less than a 20% aggregate change in contract price.
Change orders in excess of 20% shall be brought to the City Council for approval.
37
SECTION VI
PUBLIC PROJECTS
PURPOSE
Provide guidelines for "Public Project" procurement. Public Project means construction,
reconstruction, erection, alteration, restoration, improvement, demolition, and repair work
involving any facility owned, leased, or operated by the City. The definition also
includes painting or repainting any facility owned, leased or operated by the City.
Construction, erection, improvement, or repair of dams, reservoirs, and electrical
transmission lines of 230,000 volts and higher that are owned by the City, are considered
a public project.
A public project does not include maintenance work, consisting of routine, recurring, and
usual work for the preservation or protection of facilities owned or operated by the City,
including minor repainting. Street and highways resurfacing at less than one inch (1")
deep, landscape maintenance (mowing, watering, trimming, pruning, planting,
replacement of plants, and servicing of irrigation and sprinkler systems) are not a public
project.
POLICIES
It is the City of Atascadero's policy to follow the uniform Construction Cost Accounting
Procedures for all Public Projects, as set forth in the Public Contract Code (Article 2,
commencing with Section 22010).
It is also the City of Atascadero's policy to adopt the purchasing limits and policies as set
forth in Public Contract Code Sections 22030 to 22045. (Appendix A)
1.0 DEPARTMENT/DIVISION AWARD < $10,000.01
The Department/Division manager may contract public projects as needed up to $10,000
per project or may be performed by the employees of the City by force account. Projects
which would typically be performed by one contractor may not be split into components
in order to avoid purchasing limits.
These purchases do not require competitive bidding and departments are given
considerable discretion in these purchases.
The Department/Division will obtain a completed
prior to awarding the contract. The W-9, shall
Administrative Services Department in order
Requirements.
38
IRS form W-9 from the contractor
immediately be forwarded to the
to comply with State Reporting
SECTION VI- PUBLIC PROJECTS
2.0 CITY MANAGER AWARD LEVEL I $10,000.01 TO $30.000.001
Public Projects contracts over $10,000 and under $30,000.011 must be awarded by the
City Manager or the Director of Administrative Services. The Department Head may
recommend a contractor without using the informal bid process, however a purchase
order and approval by the City Manager or the Director of Administrative Services is
required for these purchases.
The Department Head may also elect to perform the project using employee's of the City
by force account.
2.1 Contract and Purchase Order
a) If applicable, a contract shall be prepared and two original copies shall be
signed by the contractor and the Department Head.
b) A purchase order shall also be prepared detailing the contractor/service
provider name, service being purchased, estimated total price of the service
being purchased and budget account to be charged. The purchase order shall be
signed and dated by the authorized Department/Division employee.
c) The Department/Division will obtain a completed IRS form W-9 from the
contractor/ service provider.
d) The entire purchase order, the W-9 and both original copies of the contract
shall be submitted to the City Manager or the Director of Administrative
Services for approval. He/she will review the contract and purchase order
package for conformity to the purchasing policy, for compliance with other
established procedures and for availability of funds. The City Manager or the
Director of Administrative Services shall then approve and sign the purchase
order. The original P.O. and one original copy of the executed contract shall
then be forwarded to the originating Department/Division.
2.2 Executing the Contract
Once the Department/Division has received the approved Purchase Order and an
original copy of the contract from the City Manager or the Director of
Administrative Services, they may make arrangements with the contractor for
services.
' This limit is tied to Public Contract Code Section 22032. Any changes to limits set in Public Contract
Code Section hereby are adopted as part of this policy.
SECTION VI- PUBLIC PROJECTS
2.0 CITY MANAGER AWARD LEVEL I $10,000.01 to $30,000.00' (continued)
2.3 Change Orders
The City Manager is authorized to issue change orders for changes or additions to
the original scope of work that result in less than a less than $30,000 annual contract
amount. Change orders may not exceed the $30,000 contract amount.
3.0 CITY MANAGER AWARD LEVEL II $30,000.011 to $125,000.001
Public Projects contracts over $30,000.001 and under $125,000.011 may be let to contract
by the informal bid process set forth in this policy.
3.1 Informal Bids:
The City shall solicit informal bids in accordance with Public Contract Code
Sections 22034-22036. (See Appendix A)
3.2 Contract and Purchase Order
a) A contract shall be prepared and two original copies shall be signed by the
contractor and Department Head.
b) A purchase order shall also be prepared detailing the contractor/service provider
name, service being purchased, estimated total price of the service being
purchased and budget account to be charged. The purchase order shall be signed
and dated by the authorized Department/Division employee.
c) The Department/Division will obtain a completed IRS form W-9 from the
contractor/ service provider.
d) The entire purchase order, the W-9 and both original copies of the contract shall
be submitted to the City Manager or the Director of Administrative Services for
approval. He/she will review the contract and purchase order package for
conformity to the purchasing policy, for compliance with other established
procedures and for availability of funds. The City Manager or the Director of
Administrative Services shall then approve and sign the purchase order. The
original P.O. and one original copy of the executed contract shall then be
forwarded to the originating Department/Division.
This limit is tied to Public Contract Code Section 22032. Any changes to limits set in Public Contract
Code Section hereby are adopted as part of this policy.
40
SECTION VI- PUBLIC PROJECTS
3.0 CITY MANAGER AWARD LEVEL II $30,000.011 to $125,000.001
(continued)
3.3 Executing the Contract
Once the Department/Division has received the approved Purchase Order and an
original copy of the contract from the City Manager or the Director of
Administrative Services, they may make arrangements with the contractor for
services.
3.4 Change Orders
The City Manager is authorized to issue change orders for changes or additions to
the original scope of work that result in less than a less than a 20% aggregate change
in the contract price, not to exceed the $125,000 contract amount. Change orders in
excess of the 20% aggregate or the $125,000 contract amount shall be brought to the
City Council for approval.
4.0 CITY COUNCIL AWARD > S125,000.00'
Public Projects exceeding $125,0001 must be formally bid and awarded by the City
Council in accordance with Public Contract Code Sections 22037 to 22044.
4.1 Formal Bidding
The City shall solicit formal bids in accordance with Public Contract Code Sections
22037-22044. (See Appendix A)
The initiating Department/Division shall be responsible for completion of the formal
bid process, however the process shall be coordinated with the City Clerk's Office
and the Administrative Services Department.
a) Bid Forms: The initiating department shall prepare a bid form including detail
specifications for the services to be purchased. The following format is
suggested for competitive bids:
1. Submission of bids (or proposals — Include date, time, location and bid
number as assigned by the City Clerk. Include a detail list of the
information the bid or proposal should contain
2. Questions — List the name, address, and telephone number of the person to
be contacted concerning questions about the project.
This limit is tied to Public Contract Code Section 22032. Any changes to limits set in Public Contract
Code Section hereby are adopted as part of this policy.
41
SECTION VI- PUBLIC PROJECTS
4.0 CITY COUNCIL AWARD > $125,000.001 (continued)
4.1 Formal Bidding (continued)
a) Bid Forms: (continued)
3. Background - Provide as much background as necessary to give the bidder
an understanding of the environment in which the job will be performed and
to which the job relates.
4. Scope of work — Describe in detail the requirement for the job and detail
specification.
5. Desired project schedule — Be as specific as possible.
6. Minimum and desirable qualifications — Be as specific as possible.
7. Performance Bond- Whether a performance bond is required and if so, the
amount and form of bidders security.
8. Sample Contract- A sample of the contract that is expected to be used
should be included in the bid package.
b) Notice Inviting Bids: The initiating department shall also prepare a notice
inviting bids that includes the following:
1. A general description of the services to be purchased.
2. A statement indicating where bid forms, specifications and bonding
requirements can be obtained.
3. A statement specifying the time and place for the opening of the bids
4. The notice shall be published at least fourteen calendar days before the date
of the opening of bids in a newspaper of general circulation, printed and
published in the City. (It is recommended that it be published twice, not
less than five days apart.)
5. The notice shall also be mailed to all construction trade journals specified in
Section 22036 of the Public Contract Code. The notices shall be mailed at
least thirty (30) calendar days before the date of opening the bids.
c) Bid Opening
I. Sealed bids shall be submitted to the City Clerk's office and shall be clearly
identified with the Bid number on the envelope. Faxed or other electronic
bids are not acceptable.
2. Bids shall be opened in public at the time and place stated in the public
notice.
3. The City Clerk or his/her designee shall open the bids and shall record all
bids received.
1 This limit is tied to Public Contract Code Section 22032. Any changes to limits set in Public Contract
Code Section hereby are adopted as part of this policy.
42
SECTION VI- PUBLIC PROJECTS
4.0 CITY COUNCIL AWARD > $125,000.001 (continued)
4.1 Formal Bidding (continued)
c) Bid Opening (continued)
4. Any bid received after the time specified in the notice shall be rejected.
5. When a bidder's security is required, it will be announced in the public
notice inviting bids. The amount shall be determined at the time of
preparation of the bid. It shall be in the form of cash, certified or cashier's
check, certificate of deposit in the City of Atascadero's name or bid bond
made payable to the City of Atascadero. When a bidder's security is
required, a bid shall not be considered unless one of the aforementioned
forms of security accompanies the bid. Bidders shall be entitled to return of
the bid security with the following exception:
■ The successful bidder must execute the contract and file acceptable
documents within thirty (30) calendar days from the date of award
unless extended by the City Manager. Failure to execute the contract
shall be just cause for annulment of the award and forfeiture of the
bidder's security, not as a penalty, but as liquidated damages. The City
Council may, upon refusal or failure of the successful bidder to execute
the contract, award the contract to the next lowest bidder.
6. All bids received shall be available for inspection during regular business
hours in the City Clerk's office for a period of not less than thirty (30)
calendar days after the bid opening.
d) Rejection of Bids: The City reserves the right to reject any and all bids, to
accept or reject any one or more items of a bid, or to waive any irregularities or
informalities in the bids or the bidding process if to do so is deemed to best
serve the interests of the City. If after the first invitation of bids all bids are
rejected, the City may elect to re -advertise for bids or have the project done by
force account. (See Section 22038 of the Public Contract Code for Procedures
and limitations)
e) Determining Lowest Responsible Bidder: Award of bid shall be to the lowest
responsible bidder. All valid responsible bids shall be considered in
determining the lowest bid. Before the award, the bidder may be required to
furnish evidence of capability, equipment and financial resources to adequately
perform the work. Bidders not found to be qualified may have their bid
rej ected.
This limit is tied to Public Contract Code Section 22032. Any changes to limits set in Public Contract
Code Section hereby are adopted as part of this policy.
43
SECTION VI- PUBLIC PROJECTS
4.0 CITY COUNCIL AWARD > $125,000.001 (continued)
4.1 Formal Bidding (continued)
f) Tie Bids: If tie bids are received, quality and service being equal, the contract
shall be awarded to a local bidder.
If the above condition is not applicable, the City may, at its discretion:
Reject any and all bids presented and re -advertise; or
2. City may accept either one or accept the lowest bid made by negotiation
with the tie bidders; or
3. Award the bid to any one of the low tie bidders by public drawing.
4.2 Awarding the Bid
Once the bids have been evaluated, the Department Head/Division Head shall
prepare a report to Council recommending the most responsive bidder. The Council
shall then award the bid in a public meeting.
All public project contracts exceeding $125,000.001 must be awarded by the City
Council. Otherwise:
1. Such purchases are void and not considered an obligation of the City.
2. Invoices may be returned to the contractor/service provider unpaid.
3. The person ordering the unauthorized purchase may be held personally liable
for the costs of the contract.
4.3 Contract and Purchase Order
a) A contract shall be prepared and two original copies shall be signed by the
contractor.
b) A purchase order shall also be prepared detailing the contractor name, service
being purchased, estimated total price of the service being purchased and
budget account to be charged. The purchase order shall be signed and dated by
the Department Head.
c) The Department/Division will obtain a completed IRS form W-9 from the
contractor/ service provider.
d) Proof of insurance in accordance with the contract shall be obtained
e) Performance and payment bonds shall be obtained. (Bonds must be in a form
accepted by the City and must meet all City requirements.)
' This limit is tied to Public Contract Code Section 22032. Any changes to limits set in Public Contract
Code Section hereby are adopted as part of this policy.
44
SECTION VI- PUBLIC PROJECTS
4.0 CITY COUNCIL AWARD > $125,000.00' (continued)
4.3 Contract and Purchase Order (continued)
f) The City Attorney shall sign the two original copies of the contract approving it
as to form.
g) The City Manager or his/her Council designee shall sign the tow original
copies.
h) The entire purchase order, the W-9, proof of insurance, copies of the bonds, and
both original copies of the contract shall be submitted to the City Manager or
the Director of Administrative Services for approval and signature.
i) One original copy of the executed contract shall be returned to the contractor
and the other original shall remain in the City Clerk's Office. A copy of the
executed contract shall be sent to the initiating department and a copy to the
Administrative Services Department.
4.4 Change Orders
The City Manager is authorized to issue change orders for changes or additions to
the original scope of work that result in less than a 20% aggregate change in
contract price. Change orders in excess of 20% shall be brought to the City Council
for approval.
' This limit is tied to Public Contract Code Section 22032. Any changes to limits set in Public Contract
Code Section hereby are adopted as part of this policy.
45
SECTION VII
TRAVEL AND EXPENSE REIMBURSEMENTS
PURPOSE AND SCOPE
The City of Atascadero's ("City") travel policy prescribes procedures for Officials and
Employees to report and be reimbursed for official travel and business expenses. The
following guidelines and procedures are set forth to minimize costs, improve
accountability and ease management review of reimbursement claims.
This policy applies to elected and appointed Officials of the City and all Employees of
the City. Department Heads may adopt more restrictive policies due to budget limitations
or requirements of other government agencies. Compensation to Employees for travel
time shall be consistent with the requirements of the Fair Labor Standards Act.
This policy assumes a mutual trust between the City and its Officials and Employees.
The City shall reimburse Officials and Employees for all reasonable costs incurred on
behalf of the City. Officials and Employees are expected to use good judgment in
spending public funds which have been entrusted to them. Misuse or misappropriation of
City funds and equipment not in conformance with this policy may result in disciplinary
action, which for Employees may include termination of employment.
DEFINITIONS
OFFICIAL: When used in Section VII, an Official shall refer to any individual elected
to a City office (e.g., a City Council member, City Clerk, or City Treasurer) or any
individual appointed to an office by the City Council (e.g., a member of the Planning
Commission). For purposes of Section VII, an Official is never considered to be an
Employee.
EMPLOYEE: When used in Section VII, an Employee shall refer to anyone who
volunteers on behalf of the City or anyone who holds a paid position with the City. For
purposes of Section VII, an independent contractor shall not be considered an Employee.
POLICIES
1.0 GENERAL PROVISIONS
1.1 Travel shall be authorized only when necessary and in the best interest of the
City. The City shall reimburse actual, reasonable and necessary expenses
incurred while on City business, not to exceed established guidelines. Expenses
incurred in connection with the following types of activities are hereby deemed
authorized expenses, as long as the other requirements of this policy are met:
a. Communicating with representatives of regional, state and national
Cly
SECTION VII
TRAVEL AND EXPENSE REIMBURSEMENT
1.0 GENERAL PROVISIONS (continued)
government on the City's adopted policy positions;
b. Attending educational seminars designed to improve an Official's or
Employee's skill and/or knowledge;
C. Participating in regional, state and national organizations whose activities
affect the City's interests; and
d. Implementing a City -approved strategy for attracting or retaining
businesses to the City, which shall typically involve at least one staff
member; and
e. For any Employee, any other general City business authorized by that
Employee's Department Head.
Expenditures for any other type of activity require prior approval by the City
Council for Officials and City Manager for Employees.
1.2 The City shall NOT reimburse personal expenses, including but not limited to:
a. The personal portion of any trip;
b. Political or charitable contributions or events;
Family expenses, including a partner's expenses when accompanying an
Official or Employee on agency -related business, as well as children- or
pet -related expenses;
d. Entertainment expenses, including theater, movies (either in -room or at
the theater), sporting events (including gym, massage and/or golf -related
expenses), or other cultural events;
e. Non -mileage personal automobile expenses, including repairs, traffic
citations, insurance or gasoline; and
f Personal losses incurred while on City business.
1.3 City Officials and Employees should neither enrich themselves nor be required to
use their own funds while traveling on City business.
1.4 The City Manager or his/her designee must approve all proposed travel out of the
San Luis Obispo/ Santa Barbara County area for City Employees. References in
this policy to out -of -area travel shall mean travel outside the San Luis
Obispo/Santa Barbara County area.
47
SECTION VII
TRAVEL AND EXPENSE REIMBURSEMENT
1.0 GENERAL PROVISIONS (continued)
1.5 Travel and expense funded by the Commission of Peace Office Standards and
Training (POST) Commission shall be subject to restrictions currently in effect
from POST. POST shall govern expenditure limitations for meals and lodging,
superceding this policy. When preparing reimbursements for POST, a copy of the
reimbursement request shall be forwarded to the Administrative Services
Department to track the receivable.
2.0 AUTHORIZATION FOR TRAVEL AT CITY EXPENSE
2.1 Authorization Levels
a. Within the San Luis Obispo/Santa Barbara County Area: Employees must
obtain department head approval prior to official travel within San Luis
Obispo County/Santa Barbara area or same day travel outside the area.
b. Outside the San Luis Obispo County/Santa Barbara County Area (Within
Calif iornia-Employees must obtain Department Head and City Manager
or the Director of Administrative Services approval prior to travel and
overnight stay outside the San Luis Obispo/Santa Barbara County area on
City business.
Out of State: Employees must obtain the City Manager's prior written
approval for any Official out-of-state travel.
2.2 Exceptions
Mutual/Auto Aid travel shall be reported to the City Manager as time permits.
Prior approval may not be possible.
2.3 Format for Request
The information to be submitted with all requests for out -of -area travel is as
follows:
a. Requests must be submitted in advance of the actual travel.
b. Department Head or his/her designee shall confirm by means of their
authorization that the appropriate budget is available for the travel.
C. Total cost of the proposed travel shall be itemized, including all costs for
registration fees, lodging, meals, transportation, etc.
48
SECTION VII
TRAVEL AND EXPENSE REIMBURSEMENT
3.0 LODGING
Lodging expenses consist of charges for out -of -area overnight accommodations as
required for conduct of official City business. Lodging expenses shall be reimbursed or
paid for when travel on official City business reasonably requires an overnight stay.
3.1 Stay Reasonably Required
An overnight stay is reasonably required when the traveler would otherwise have
to leave his or her residence before 6:00 a.m. on the day of the event to arrive at
the destination at the designated time. Lodging expense is allowable for the
evening after an out-of-town meeting or business event when the traveler would
otherwise arrive at his/her residence after 9:00 p.m.
3.2 Lodging Rates
If possible, Employees and Officials should make hotel/motel reservations well in
advance and take other actions to incur the lowest possible lodging expenses (e.g.
compare rates, request occupancy tax exemptions, etc.)
a. Government Rates Employees and Official must request government
rates when making reservations or registering at hotels/motels. If possible,
Employees and Official should make hotel/motel reservations well in
advance and take other actions to incur the lowest possible lodging
expenses (e.g. compare rates, request occupancy tax exemptions).
Lodging rates that are equal to or less than government rates are presumed
to be reasonable and hence reimbursable for purposes of this policy.
b. Group Rates If such lodging is in connection with a conference, lodging
expenses must not exceed the group rate published by the conference
sponsor for the meeting in question if such rates are available at the time
of booking. If the group rate is not available, see next section.
C. Alternatives In the event that government rates or group rates are not
available at a given time or in a given area, there are three options
available to Employees and Officials.
i. Option 91 (Median Hotel Cost): Lodging rates that do not exceed
the median retail price for moderate lodging for that area listed on
websites like www.priceline.com or an equivalent service shall be
considered reasonable and hence reimbursable.
ii. Option #2 (Flat Cap). Lodging rates that do not exceed one
hundred eighty dollars ($180) per night are presumed reasonable
and hence reimbursable.
49
SECTION VII
TRAVEL AND EXPENSE REIMBURSEMENT
3.0 LODGING (continued)
Option #3 (IRS Rates). Lodging rates that do not exceed the
Internal Revenue Service per diem rates for a given area are
presumed reasonable and hence reimbursable.
3.3 Special Lodging
With prior City Manager approval, the City may reimburse Employees for special
lodging accommodations, i.e., other than hotels or motels. Special
accommodations include, but are not limited to, apartments, RV parks, and other
semi-permanent dwellings.
3.4 Use of Lodging as a Guest of Friends or Relatives
Employees and Officials may stay with friends or relatives while on out-of-town
business; however, the City shall not reimburse Employees and Officials for
payment to friends or relatives for lodging, meals, or transportation.
3.5 Credit Card Use
Employees and Officials may charge all lodging costs on City credit cards but
must reimburse the City for unauthorized expenses upon return.
4.0 MEALS
Allowable meal expenses include food and beverages purchased and consumed while on
official City business, provided these items are not covered by other expenses, i.e.,
conference fees, airline fares, lodging, etc. AB 1234 prohibits per diem reimbursements
for Officials, therefore the per diem method of reimbursements is for City Employees
only.
4.1 Rate of Reimbursement
Officials may be reimbursed for eligible meal expenses, while Employees may either
receive a per diem or be reimbursed for eligible meal expenses.
a. Per Diem Method: A per diem of $51.00 shall be paid to Employees for
meals associated with each day of travel as follows:
1. Breakfast
$10.00
2. Lunch
$15.00
3. Dinner
$26.00
b. Reimbursement Method: Each meal, including gratuity, shall be
reimbursed to Official or Employee up to the Domestic Per Diem Rates
per US General Services Administration per -meal guideline and must be
accounted for separately on a reimbursement claim. Under special
W
SECTION VII
TRAVEL AND EXPENSE REIMBURSEMENT
4.0 MEALS (continued)
circumstances, the City Manager may approve individual meal expenses
(for Employees only) above the guideline with written justification, copies
of restaurant bills, and evidence of department head approval. If an
individual claims meal expenses for more than one Employee, s/he must
list all Employees on the expense reimbursement form.
C. Normally, meals are reimbursable under the following time criteria:
MEAL TRAVEL BEGINS BEFORE & TRAVEL ENDS AFTER
Breakfast 7:00 a.m. 8:00 a.m.
Lunch 11:00 a.m. 1:00 P.M.
Dinner 5:00 p.m. 6:00 p.m.
4.2 Meals Purchased on Travels That Do Not Include an Overnight Stay
Normally, the City will NOT reimburse employees for meals purchased within the
City of Atascadero or surrounding areas, while they are engaged in day-to-day job
duties, or engaged in any one -day travel that does not include an overnight stay.
However, Department Heads may authorize reimbursement under the following
circumstances:
Attendance at job-related conferences or meetings held in the City or
surrounding regions extending over meal times, and the business of the
conferences or meetings is pursued during the meals, or
In special cases, the City Manager may authorize the purchase of meals
for employees while within the City in conjunction with City business as
appropriate.
During emergencies declared by authorized government authorities in
which City employees must work for more that two hours beyond the
normal duty day.
4.3 Reimbursement of City Officials or Employees for Costs of Meals Purchased for
Non -City Personnel
The City may reimburse Officials and Employees for purchasing meals for non -
City personnel in any of the following circumstances:
If authorized by the City Manager.
For oral board members
01
SECTION VII
TRAVEL AND EXPENSE REIMBURSEMENT
4.0 MEALS (continued)
For emergency workers responding to City requests for mutual aid under
mutual aid agreements or for emergency workers acting on behalf of the
City under emergencies declared by authorized government entities.
For special cases, the Department Head may authorize as appropriate the
purchase of meals for non -city personnel in conjunction with City business
or in cases where there is benefit to the City by purchasing such meal.
5.0 TRANSPORTATION
Transportation expenses are the direct costs of transporting Employees from authorized
points of departure, to travel destinations and authorized points of return. These expenses
normally include, but are not limited to, common carrier tickets, private vehicle mileage
and car rental charges.
Other transportation expenses include taxi, bus, and streetcar fares; road, bridge, and
ferry tolls; parking fees; and other costs directly related to transporting Employees to and
from temporary work locations.
Transportation expenses not covered include: personal travel, traffic and parking
violations and emergency repairs on private vehicles.
NOTE: City gas cards and Cal -Cards should not be used for fuel purchases on personal
vehicles.
5.1 Mode of Transportation
When traveling on City business, Officials and Employees should use the least
expensive modes of transportation consistent with time requirements and work
schedules. The City shall reimburse travelers for the most cost-effective
transportation means, considering both direct costs and Employee time
management.
5.2 Rate of Reimbursement:
Officials and Employees who do not receive monthly auto allowances shall be
reimbursed for travel mileage incident to the authorized use of privately -owned
vehicles on City business. Reimbursement shall be at the rate currently
prescribed and necessary expenses incident to the use of privately owned vehicles,
including insurance, repairs, and other transportation -related costs. The City shall
not reimburse individuals for gasoline purchases when they claim the per -mile
52
SECTION VII
TRAVEL AND EXPENSE REIMBURSEMENT
5.0 TRANSPORTATION (continued)
reimbursement rate for private vehicles. This amount does not include bridge and
road tolls which are also reimbursable.
5.3 Commercial Auto Rental
The City shall reimburse Officials and Employees for actual and necessary costs
of rental when substantiated by invoice. Rental of an automobile should be
limited to those situations where it is determined that it the most economical
method of transportation or with Department Head approval, in those situations
where it would create a hardship for the Employee to use a personal vehicle. The
size of an auto rented shall be the least expensive size appropriate to the use
required by the Employee. Rental rates that are equal or less than those available
through the State of California's website (www.catravelsmart.com/default.htm)
shall be considered the most economical and reasonable for the purpose of
reimbursement under this policy. If possible, travelers should refuel rental
vehicles before returning them to rental agencies. Employees may use City credit
cards to pay for rental vehicles.
5.4 Air Travel.
When an Employee claims commercial airline expenses, the cost shall be limited
to the least expensive class available, unless prior approval of City Manager for
upgrade. Travelers shall attempt to use the lowest airline rates available. Airfares
that are equal or less than those available through the Enhanced Local
Government Airfare Program offered through the League of California Cities
(www.cacities.or /travel), the California State Association of Counties
(www.csac.counties.org/default.asp?id=63 5) and the State of California are
presumed to be the most economical and reasonable for purposes of
reimbursement under this policy. Reservations should be made as far in advance
as possible to take advantage of available discounts. Frequent flier mileage and
bonus points or premiums, such as discounts on future fares, received, as a result
of travel on Official City business shall accrue to the City.
5.5 Taxis and Other Local Transportation.
The City shall reimburse the cost of taxi fare including a fifteen percent (15%)
gratuity per fare to and from places of business, hotels, airports, or railroad
stations in connection with official activities and meals. Taxis are permitted only
when suitable and more economical services are not reasonably available.
Whenever available, Employees must attempt to use complimentary hotel/motel
shuttle services.
53
SECTION VII
TRAVEL AND EXPENSE REIMBURSEMENT
6.0 BUSINESS EXPENSES
Business expenses are those incidental to official travel other than transportation,
lodging, and meals. Receipts shall be required for all business expenses, except as
provided in paragraph 7.3.
6.1 General
The City shall reimburse Employees for business expenses, provided they do not
include the costs of discretionary items intended for personal benefit or pleasure,
such as entertainment, or barber and beauty shop charges. Business expenses
normally include, but are not limited to, the following:
Conference registration fees (if not paid by separate claims)
Officials and Employees shall be reimbursed for actual telephone and fax
expenses incurred doing City business. Telephone bills should identify
which calls were made doing City business. For cellular telephone calls
when the Official or Employee has a particular number of minutes
included in his or her plan, the Official or Employee can identify the
percentage of calls made doing public business. Employees shall be
reimbursed for one personal telephone call per day. All other personal
telephone calls are the Employee's responsibility. More calls per day may
be authorized by the Department Head in special circumstances.
Reasonable amounts paid to baggage handlers, porters, and other service
personnel.
7.0 REIMBURSEMENT CLAIMS
7.1 General
a. Officials and Employees must submit expense claims upon return.
Officials and Employees should submit approved travel claims (along with
supporting vouchers and receipts) within six weeks after completion of
travel. All claims must have travelers' signatures and, for Employees,
Department or Division Head approval.
b. Receipts documenting each expense must be submitted with the
appropriate paperwork to accounts payable. Inability to provide
documentation in a timely fashion may result in the expense being borne
by the Official or the Employee.
C. There shall be no settlement of claims totaling less than $1.00.
d. All expenses are subject to verification that they comply with this policy.
54
SECTION VII
TRAVEL AND EXPENSE REIMBURSEMENT
7.0 REIMBURSEMENT CLAIMS (continued)
7.2 Claim Forms
Claim forms shall include:
■ Consistent with this Policy, the City business involved.
■ Dates of travel.
■ Travelers' names.
■ Travel destinations.
■ Expense identification, i.e., seminars, meals, plane fare, etc.
■ Dollar amounts of all expenses.
■ Personal expenses only if part of City credit card charges. These must be
subsequently subtracted from claim totals.
■ Additional explanations as needed to substantiate claims.
8.0 REGISTRATION / EXPENSE ADVANCES
8.1 Minimum
City Employees may request advances for reimbursable travel expenses. The
minimum advance shall be $50. City Officials may not receive cash advances
from the City. If advances exceed actual expenses, Employees must remit the
difference when they file their claims. If a trip is canceled, the advance must be
remitted within one week of the cancellation.
8.2 Reservation and Registration
Official and Employees may use City credit cards for reservations and
registration. If a reservation shall result in an actual charge to the City, the
traveler must request a receipt and submit a claim.
9.0 REPORTS TO GOVERNING BOARDS
At the City Council meeting following the conference or other business for which any
reimbursable expenses were incurred by an Official, each Official shall briefly report on
meetings or other business attended at the City's expense. If multiple Officials attend, a
joint report may be made.
55
SECTION VII
TRAVEL AND EXPENSE REIMBURSEMENT
10.0 RESPONSIBILITY AND ACCOUNTABILITY
10.1 Administration
Each Department Head shall be held responsible and accountable for the
administration of this policy within his/her department. Department heads should
consult with the Administrative Services Director and/or City Manager on
questions related to this policy. The City Manager shall annually review the
practices and reports of the various departments in regard to the administration of
this policy.
Each City Official shall be held responsible and accountable for the
administration of this policy for his/her own travel. City Officials should consult
with the Administrative Services Director and/or City Manager on questions
related to this policy.
10.2 Compliance with Laws
Officials and Employees should keep in mind that some expenditures may be
subject to reporting under the Political Reform Act and other laws. All agency
expenditures are public records subject to disclosure under the Public Records Act
and other laws.
10.3 Violation of This Policy
a. Loss of reimbursement privileges;
b. A demand for restitution to the City;
C. The agency's reporting the expenses as income to the elected Official to
state and federal tax authorities;
d. Civil penalties of up to one thousand dollars ($1,000) per day and three
times the value of the resources used; and
e. Prosecution for misuse of public resources.
11.0 AUDITS OF EXPENSE REPORTS
All expenses are subject to verification that they comply with this Policy.
56
Section VIII
PETTY CASH
PURPOSE
To provide guidelines for the purchase of minor items using petty cash. Petty cash
purchases are not designed to circumvent normal purchasing procedures, but are designed
to expedite the acquisition of emergency needs and less significant items.
POLICIES
1.0 PURCHASES
1.1 Petty cash maybe used for purchases up to $50.00. Any petty cash purchases over
$50.00 shall be approved by the Director of Administrative Services in advance.
1.2 A Petty Cash Slip shall be completed and a receipt attached for all petty cash
purchases. The Petty Cash Slip must be approved by the appropriate
Department/Division manager. It should include the account to be charged and a
brief description of the item to be purchased.
1.3 An employee may request a petty cash advance for purchases up to $50.00 or the
estimated amount, whichever is less. Prior to receiving the cash, the employee must
submit an approved Petty Cash Slip. After the purchase, the receipt and remaining
funds shall be returned to the petty cash box, and the Petty Cash Slip shall be
adjusted to reflect actual expenditures.
2.0 PETTY CASH BOXES
2.1 The Director of Administrative Services is responsible for assigning petty cash
boxes.
2.2 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 uses.
2.3 Any department with a petty cash box is responsible for reconciling cash to receipts
on at least a bi-weekly basis. Any irregularities shall be reported promptly to the
Administrative Services Department.
57
Section IX
DISPOSAL OF ASSETS
PURPOSE
Provide for the proper transfer, disposition, and accountability of surplus and obsolete
City property (other than land and buildings).
POLICY
It is necessary to provide for the disposal of surplus and obsolete material or equipment.
1.0 MINOR PROPERTY- ORIGINAL COST < $500.01
The Department/Division manager may authorize the disposal of surplus supplies,
equipment, or tools with an original value of less than $500.01 and an estimated current
value of less than $25.00. The Department/Division manager is given considerable
discretion in disposing of this property.
2.0 OTHER PROPERTY- ORIGINAL COST > $500.00
When an item with an original cost > $500.00 is no longer needed, becomes worn out, or
becomes obsolete, the Department/Division head will submit an Idle Equipment form to
the Administrative Services Director for authorization.
Once the Administrative Services Director has given the authority to dispose of the
assets, the items may be sold through surplus or other auctions, exchanged or transferred
to another City function, traded in for new supplies and/or equipment, or disposed of in
another reasonable manner. Administrative Services Director is also authorized to
dispose of said property for the highest scrap value or cause its destruction or other
disposition.
This policy will not apply to real property or unclaimed property held by the Police
Department.
58
Appendix A
Appendix A
Public Contract Code
PCC §22030
This article applies only to a public agency whose governing board has by resolution
elected to become subject to the uniform construction cost accounting procedures set
forth in Article 2 (commencing with Section 22010) and which has notified the
Controller of that election. In the event of a conflict with any other provision of law
relative to bidding procedures, this article shall apply to any public agency which has
adopted a resolution and so notified the Controller.
PCC 422031
Nothing in this article shall prohibit a board of supervisors or a county road
commissioner from utilizing, as an alternative to the procedures set forth in this article,
the procedures set forth in Article 25 (commencing with Section 20390) of Chapter 1.
PCC §22032
(a) Public projects of thirty thousand dollars ($30,000) or less may be performed
by the employees of a public agency by force account, by negotiated contract, or
by purchase order.
(b) Public projects of one hundred twenty-five thousand dollars ($125,000) or less
may be let to contract by informal procedures as set forth in this article.
(c) Public projects of more than one hundred twenty-five thousand dollars
($125,000) shall, except as otherwise provided in this article, be let to contract by
formal bidding procedure.
PCC &22033
It shall be unlawful to split or separate into smaller work orders or projects any project
for the purpose of evading the provisions of this article requiring work to be done by
contract after competitive bidding.
PCC §22034
Each public agency that elects to become subject to the uniform construction accounting
procedures set forth in Article 2 (commencing with Section 22010) shall enact an
informal bidding ordinance to govern the selection of contractors to perform public
projects pursuant to subdivision (b) of Section 22032. The ordinance shall include all of
the following:
(a) The public agency shall maintain a list of qualified contractors, identified
according to categories of work. Minimum criteria for development and
maintenance of the contractors list shall be determined by the commission.
(b) All contractors on the list for the category of work being bid or all
construction trade journals specified in Section 22036, or both all contractors on
the list for the category of work being bid and all construction trade journals
59
Appendix A
Public Contract Code
PCC X22034 (continued)
specified in Section 22036, shall be mailed a notice inviting informal bids unless
the product or service is proprietary.
(c) All mailing of notices to contractors and construction trade journals pursuant
to subdivision (b) shall be completed not less than 10 calendar days before bids
are due.
(d) The notice inviting informal bids shall describe the project in general terms
and how to obtain more detailed information about the project, and state the time
and place for the submission of bids.
(e) The governing body of the public agency may delegate the authority to award
informal contracts to the public works director, general manager, purchasing
agent, or other appropriate person.
(f) If all bids received are in excess of one hundred twenty-five thousand dollars
($125,000), the governing body of the public agency may, by adoption of a
resolution by a four-fifths vote, award the contract, at one hundred thirty-seven
thousand five hundred dollars ($137,500) or less, to the lowest responsible bidder,
if it determines the cost estimate of the public agency was reasonable.
PCC $22035
(a) In cases of emergency when repair or replacements are necessary, the
governing body may proceed at once to replace or repair any public facility
without adopting plans, specifications, strain sheets, or working details, or giving
notice for bids to let contracts. The work may be done by day labor under the
direction of the governing body, by contractor, or by a combination of the two.
(b) In case of an emergency, if notice for bids to let contracts will not be given,
the public agency shall comply with Chapter 2.5 (commencing with Section
22050).
PCC 422035.5
In counties that are under court order to relieve justice facility overcrowding, the
procedures and restrictions specified in Section 20134 shall apply to all contracts issued
under this chapter.
PCC X22036
The commission shall determine, on a county -by -county basis, the appropriate
construction trade journals which shall receive mailed notice of all informal and formal
construction contracts being bid for work within the specified county.
PCC §22037
Notice inviting formal bids shall state the time and place for the receiving and opening of
sealed bids and distinctly describe the project. The notice shall be published at least 14
60
Appendix A
Public Contract Code
PCC &22037 (continued)
calendar days before the date of opening the bids in a newspaper of general circulation,
printed and published in the jurisdiction of the public agency; or, if there is no newspaper
printed and published within the jurisdiction of the public agency, in a newspaper of
general circulation which is circulated within the jurisdiction of the public agency, or, if
there is no newspaper which is circulated within the jurisdiction of the public agency,
publication shall be by posting the notice in at least three places within the jurisdiction of
the public agency as have been designated by ordinance or regulation of the public
agency as places for the posting of its notices. The notice inviting formal bids shall also
be mailed to all construction trade journals specified in Section 22036. The notice shall
be mailed at least 30 calendar days before the date of opening the bids. In addition to
notice required by this section, the public agency may give such other notice as it deems
proper.
PCC &22038
(a) In its discretion, the public agency may reject any bids presented, if the
agency, prior to rejecting all bids and declaring that the project can be more
economically performed by employees of the agency, furnishes a written notice to
an apparent low bidder. The notice shall inform the bidder of the agency's
intention to reject the bid and shall be mailed at least two business days prior to
the hearing at which the agency intends to reject the bid. If after the first
invitation of bids all bids are rejected, after reevaluating its cost estimates of the
project, the public agency shall have the option of either of the following:
(1) Abandoning the project or readvertising for bids in the manner
described by this article.
(2) By passage of a resolution by a four-fifths vote of its governing body
declaring that the project can be performed more economically by the
employees of the public agency, may have the project done by force
account without further complying with this article.
(b) If a contract is awarded, it shall be awarded to the lowest responsible bidder.
If two or more bids are the same and the lowest, the public agency may accept the
one it chooses.
(c) If no bids are received through the formal or informal procedure, the project
may be performed by the employees of the public agency by force account, or
negotiated contract without further complying with this article.
PCC 422039
The governing body of the public agency shall adopt plans, specifications, and working
details for all public projects exceeding the amount specified in subdivision (c) of Section
22032.
PCC X22040
Any person may examine the plans, specifications, or working details, or all of these,
adopted by the public agency for any project.
61
Appendix A
Public Contract Code
PCC §22041
This article does not apply to the construction of any public building used for facilities of
juvenile forestry camps or juvenile homes, ranches, or camps established under Article 15
(commencing with Section 880) of Chapter 2 of Part 1 of Division 2 of the Welfare and
Institutions Code, if a major portion of the construction work is to be performed by wards
of the juvenile court assigned to those camps, ranches, or homes.
PCC &22042
The commission shall review the accounting procedures of any participating public
agency where an interested party presents evidence that the work undertaken by the
public agency falls within any of the following categories:
(a) Is to be performed by a public agency after rejection of all bids, claiming work
can be done less expensively by the public agency.
(b) Exceeded the force account limits.
(c) Has been improperly classified as maintenance.
PCC §22043
In those circumstances as set forth in subdivision (a) of Section 22042, a request for
commission review shall be in writing, sent by certified or registered mail received by the
commission postmarked not later than five business days from the date the public agency
has rejected all bids. In those circumstances set forth in subdivision (b) or (c) of Section
22042, a request for commission review shall be by letter received by the commission not
later than five days from the date an interested party formally complains to the public
agency. The commission review shall commence immediately and conclude within 30
days from the receipt of the request for commission review. During the review of a
project that falls within subdivision (a) of Section 22042, the agency shall not proceed on
the project until a final decision is received by the commission.
PCC 422044
The commission shall prepare written findings. Should the commission find that the
provisions of this chapter or of the uniform cost accounting procedures provided for in
this chapter were not complied with by the public agency, the following steps shall be
implemented by that agency:
(a) On those projects set forth in subdivision (a) of Section 22042, the public
agency has the option of either:
(1) abandoning the project, or
(2) awarding the project to the lowest responsible bidder.
(b) On those projects set forth in subdivision (b) or (c) of Section 22042, the
public agency shall present the commission's findings to its governing body and
that governing body shall conduct a public hearing with regard to the
commission's findings within 30 days of receipt of the findings.
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Appendix A
Public Contract Code
PCC §22045
(a) No later than January 1, 1985, the commission shall recommend, for adoption
by the Controller, written procedures implementing the accounting procedures
review provided for in this article.
(b) The Controller shall, upon receipt of the commission's recommendation,
review and evaluate the recommended procedures and either formally adopt or
reject the recommended procedures within 90 days of submission of the
commission.
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