19-0604_ORANGE, COUNTY OF_F1a_Agenda ReportCity of San Juan Capistrano
Agenda Report
TO: Honorable Mayor and Members of the City Council
FROM: ~njamin Siegel, City Manager
SUBMITTED BY: Ken Al-Imam, Chief Financial Officer ~
PREPARED BY: Michelle Bannigan, Assistant Finance Director N ~m.t9
DATE: June 4, 2019
6/4/2019
F1a
SUBJECT: Fiscal Year 2019-20 Budget Update, including: Seven-Year Capital
Improvement Program for Fiscal Years 2019-20 through 2025-26;
Measure M2 Seven-Year Capital Improvement Program for Fiscal
Years 2019-20 through 2025-26; Direction Regarding the Funding,
Unfunding or Cancellation of Current or Proposed Parks and Open
Space Projects; Fiscal Year 2019-20 Appropriation Limitation;
Property Tax Rate for 2017 Taxable General Obligation Refunding
Bonds (Measure Y) for Fiscal Year 2019-20; Personnel
Classification and Compensation Plans; Investment Policy;
Purchasing Ordinance; and Fourth Amendment to the Law
Enforcement Services Agreement for Fiscal Year 2019-20 (Orange
County Sheriff's Department)
RECOMMENDATIONS:
1. Adopt the Resolutions that amend the Operating and Capital Budget for Fiscal
Year 2019-20, and approve the Seven-Year Capital Improvement Program for
Fiscal Years 2019-20 through 2025-26;
2. Approve the Measure M2 Seven-Year Capital Improvement Program for Fiscal
Years 2019-20 through 2025-26;
3. Provide feedback regarding funding options for current or proposed parks and
open space capital projects;
4. Adopt the Resolution establishing the Fiscal Year 2019-20 Appropriations
Limitation;
City Council Agenda Report
June 4, 2019
Page 2 of 21
5. Adopt the Resolution establishing the property tax ·rate for the 2017 Taxable
General Obligation Refunding Bonds (Open Space Measure Y) for Fiscal Year
2019-20;
6. Adopt a Resolution amending the City's Personnel Classification and
Compensation Plans for all employees;
7. Approve the City's revised investment policy;
8. Approve the introduction and first reading of an ordinance amending the City's
procurement procedures;
9. Approve the City's revised purchasing policy (City Council Policy No. 126); and,
10.Approve the Fourth Amendment to the Five-Year Agreement with the County of
Orange for the provision of law enforcement services.
EXECUTIVE SUMMARY:
On June 11, 2018, the City adopted a two-year budget to provide a financial spending
plan for Fiscal Years 2018-19 and 2019-20. Prior to the beginning of the second year of
each two-year budget cycle, it is the City's practice to examine the budget that was
adopted for the second year and evaluate whether adjustments are warranted as a
result of changes in the City's funding or spending requirements.
The appropriations that are set forth in the accompanying resolutions reflect the
proposed Operating and Capital Budget for Fiscal Year 2019-20 and the proposed
Seven-Year Capital Improvement Program for Fiscal Years 2019-20 through 2025-26.
These budget resolutions provide total operating appropriations of $67.9 million and
total capital appropriations of $10.2 million.
The Fiscal Year 2019-20 Adopted Budget provided a balanced budget for the City's
General Fund with revenues exceeding expenditures by $66,690 and a projected
spendable fund balance of $15.9 million at June 30, 2020. The accompanying proposed
budget adjustments for the General Fund would increase its Fiscal Year 2019-20
revenues (including one-time revenues) and expenditures (including appropriations to
reserve funds for future capital projects) by $2,719,500 and $2,731,470, respectively.
As part of the proposed budget adjustments, the final $3 million landfill-related payment
from the County of Orange would be used to fund the following nonrecurring
expenditures: $889,000 to fund Fiscal Year 2019-20 water quality project expenditures
in the City's Eastern Open Space area and $2.1 million to fund a reserve for future
water quality project expenditures. The updated estimate of spendable fund balance of
the General Fund as of the end of Fiscal Year 2018-19 is projected to be $18.0 million
at June 30, 2020, including $2.1 million held in reserve for future water quality project
expenditures.
City Council Agenda Report
June 4, 2019
Page 3 of 21
The Water Operations Funds include the following funds: Domestic Water Operations,
Debt Service and Non-Potable Water Operations (collectively, the "Water Operations
Funds"). The total proposed increase in revenue budgeted for the Water Operations
Funds in Fiscal Year 2019-20 is $117,250. This proposed increase in budgeted revenue
is a result of an update in the number of acre feet expected to be sold in Fiscal Year
2019-20 from 7,810 acre feet to 7,900 acre feet, which is based on actual customer
demand over the most recent twelve month period. The proposed budget for the Water
Operations Funds reflects a proposed increase of $1.2 million in budgeted expenses,
including transfers to capital projects funds. The increase in budgeted expenses is
primarily due to a proposed $811,390 budget increase for imported domestic water
supply costs and a proposed $430,000 increase in capital project funding. In addition to
additional water sales that are projected in Fiscal Year 2019-20, the anticipated
increase in imported domestic water costs is also due to a planned reduction in
Groundwater Recovery Plant (GWRP) production from 2,384 acre feet to 1,925 acre
feet, which further increases the need for additional imported domestic water. The
Fiscal Year 2019-20 budget provides for the complete pay off of the obligation of the
Water Operations Funds to the Sewer Operations Fund and the Sewer Capital
Improvements Fund. After transferring $2.6 million to fund water utility capital projects,
the spendable fund balance of the Water Operations Funds is expected to increase by
$1.3 million.
The available fund balance of the Sewer Operations Fund is projected to be $5.5 million
on June 30, 2020. This is a considerable improvement from the $1 .7 million amount that
had been originally projected in the Fiscal Year 2019-20 Adopted Budget. The
anticipated increase is primarily due to the fact that the actual financial results for Fiscal
Year 2017-18 were better than had been projected at the time that the biennial budget
was adopted last year. The Fiscal Year 2019-20 budget reflects a $915,410 use of
available fund balance to fund the City's capital contribution requirement to the South
Orange County Wastewater Authority (SOCWA). This is a smaller use of available fund
balance than had been reflected in the original budget adopted for Fiscal Year 2019-20.
The proposed Fiscal Year 2019-20 Budget includes adjustments to reduce the City's
Capital Improvement Program (CIP) expenditures from $13.0 million to $10.2 million.
The proposed reductions are primarily due to delays in the receipt of development fees
that fund the City's capital projects , as well as the proposed cancellation of New
Hydraulic Capital Project No. 6 (CIP 7703). In addition, the proposed budget includes
funding for four new capital projects, three of which are related to actions required by
the Consent Decree in the Orange County Coastkeeper lawsuit. Staff is also seeking
Council direction regarding the prioritization of funding for proposed parks and open
space capital projects.
A summary of proposed budget adjustments is presented in Attachment 1. The
Resolution to amend the Fiscal Year 2019-20 Operating and Capital Improvement
Budget is presented in Attachment 2 . The Resolution to adopt the Seven-Year Capital
Improvement Program for Fiscal Years 2019-20 through Fiscal Year 2025-26 is
presented as Attachment 3.
City Council Agenda Report
June 4 , 2019
Page 4 of 21
DISCUSSION/ANALYS IS :
General Fund
General Fund Revenues
The proposed General Fund revenue estimates (including transfers from other funds)
are expected to increase by $2.7 million, primarily due to the second (and final) $3
million equity payment that the City expects to receive in July pursuant to the City's new
cooperative agreement regarding the Prima Deshecha Landfill. Total General Fund
revenues for Fiscal Year 2019-20 are projected to be $32.6 million.
General Fund Revenue Summary
Amended !1 l Adopted Proposed (2l
Budget Budget Proposed Budget
Description 2018/19 2019/20 Adjustments 2019/20
Property Taxes
Sales Tax
Other Taxes and Franchise Fees
Revenue from Other Agencies
Licenses, Fees and Permits
Current Services
Interest and Rents
Fines and Forfeitures
Other Revenue
Landfill agreement funds (nonrecurring)
Transfers In
REVENUE TOT AL
$10,755,000
8,799,000
2,775,000
919 ,990
2,050,015
829,000
523,090
1,012,000
74 ,000
3,000,000
848,733
$31,585,828
$ 11,265,000
8,846,000
2,822,000
869,000
3,066,000
855,000
471,000
990,000
74,000
659 ,000
$ 29,917,000
$ (64,000)
(128,000)
124,000
20,000
(281 ,500)
(13,000)
4,500
32,000
(11 ,000)
3,000,000
36,500
$ 2,719,500
$ 11,201,000
8,718 ,000
2,946 ,000
889 ,000
2,784 ,500
842 ,000
475 ,500
1,022 ,000
63 ,000
3,000 ,000
695 ,500
$ 32,636,500
<1 l This column reflects the Amended Budget as of the Third Quarter Financial Report approved by the City Council
on May 21, 2019 .
<2 l This column reflects the impact of the proposed budget adjustments presented in Attachment 1.
Information about significant revenues of the City's General Fund is as follows
(accompanied by the percentage that each revenue classification bears in relation to
total revenues of the General Fund, including transfers from other funds):
Property Taxes (34% of General Fund revenues) -Property taxes are the s ingle
largest funding source for General Fund operations. The County collects property taxes
in April and December. The projected property tax revenue for the Fiscal Year 2019-20
Adopted Budget was estimated based on an assumption that the City's assessed
valuation will increase 5% annually because the City's assessed valuation has
increased more than 5% per year over the last four years. However, the current
economic outlook indicates that the residential market in South County may be slowing,
as evidenced by reduced real property transfer taxes collected in recent months and a
reduction in the number of home sales and the amount of the median home sale price
for single family homes sold over the past twelve months. Staff proposes a reduction in
the Fiscal Year 2019-20 property tax revenue estimate from a 5% increase over that of
the prior year to a 4.5% increase to reflect the reduced home sales activity and reduced
valuations currently experienced in the region. As a result, property tax revenue
City Council Agenda Report
June 4, 2019
Page 5 of 21
reflected in the 2019-20 proposed Budget Update is estimated at $11.2 million. This
represents a reduction of $64,000 from the amount of property tax revenue that was
reflected in the original adopted budget.
Sales Tax (27%) -The second largest funding source for the General Fund is sales tax
revenue. Based on the most recent sales tax projections provided by the City's sales
tax consultant (Hdl, Inc.), the amount of sales tax revenue collected in Fiscal Year
2019-20 is expected to be $8. 7 million, $81,000 less than that reflected in the Fiscal
Year 2018-19 Amended Budget and $128,000 less than that reflected in the Fiscal Year
2019-20 Adopted Budget. This reduction from prior year (Fiscal Year 2018-19) revenue
levels is due to the fact that Fiscal Year 2018-19 sales tax revenues were artificially
inflated. Because of the State's difficulties in implementing new software for its sales tax
accounting and reporting system, certain sales tax revenues earned in Fiscal Year
2017-18 were not distributed to the City until Fiscal Year 2018-19, resulting in artificially
high levels of sales tax revenue collected by the City in Fiscal Year 2018-19.
Other Taxes and Franchise Fees (9%) -This category includes real property transfer
taxes, business license taxes, transient occupancy taxes and franchise fees. Real
property tax revenue is the most volatile revenue source in this category because it is
driven by home sales within the city. The Fiscal Year 2019-20 Adopted Budget was
estimated based on the average of actual real property tax revenue collected between
Fiscal Years 2014-15 and 2016-17. However, as previously mentioned, residential
home sales activity in all of the South County region is showing a slow down during the
second half of Fiscal Year 2018-19 and the trend is expected to continue through the
next fiscal year. Consequently, staff reduced real property transfer tax revenue by
$56,000 in the proposed budget for Fiscal Year 2019-20. Staffs estimates for the
amount of transient occupancy tax (TOT) revenue to be collected in the Fiscal Year
2019-20 Adopted Budget conservatively took into account revenue from only the two
existing hotels. However, the Inn at the Mission is expected to open in February 2020.
As a result, $136,000 of additional TOT revenue has been included in the proposed
budget for Fiscal Year 2019-20 to reflect $100,000 from the new hotel, as well as
$36,000 of additional revenue from the two existing hotels based upon increases in TOT
revenue that has been received from those hotels in Fiscal Year 2018-19 to date. An
adjustment has been proposed to also increase projected franchise fee revenue by
$44,000 to reflect a 1 % increase from actual Fiscal Year 2018-19 revenues received to
date.
Revenue from Other Agencies (3%) -This category includes federal, state and focal
grant revenues, as well as funds from the County of Orange for landfill host fees. On
October 16, 2018, the City Council approved a new cooperative agreement with the
County regarding the Prima Deshecha Landfill. Under the new agreement, the City will
receive a minimum of $800,000 annually in host fees for each of the next ten years. An
adjustment has been proposed to increase landfill host fee revenue by $20,000 to
reflect this guaranteed minimum remittance of $800,000 for Fiscal Year 2019-20.
Licenses, Fees and Permits (9%) -This category consists largely of fees charged to
process building permits and fees collected to finance engineering, building and
planning division reviews of development projects. This category also accounts for
City Council Agenda Report
June 4, 2019
Page 6 of 21
revenue from City sponsored events, community services programs and other fees. Due
to delays in the timing of private development projects, staff is proposing a $588,000
reduction in the amount budgeted in the General Fund for engineering plan check,
engineering map check and engineering inspection fee revenues. This reduction is
partially offset by a proposed $306,000 reduction in the amount budgeted for contracted
engineering map check services and engineering plan check services that will not be
needed due to the reduced development activity. Although engineering related
revenues are decreasing due to the delay of major development projects, planning and
building permit revenues are expected to be $310,000 more than the amount that had
been conservatively reflected in-the Adopted Budget for Fiscal Year 2019-20. This
proposed adjustment will more accurately reflect current levels of other building activity
(e.g., homeowner improvements) in the community. A $3,000 reduction in Community
service program revenue for Fiscal Year 2019-20 has been proposed to reflect a more
accurate assessment of such revenues based on expected and scheduled activity for
Fiscal Year 2019-20. This reduction is partially offset by a proposed budget adjustment
for contracted instructor payments in the amount of $1,300.
Current Services (3%) -This category consists of revenue from other funds for their
share of General Fund overhead costs. These charges are based on each fund's
percentage of budgeted full-time salaries. Based on updated personnel budget
allocations in the proposed budget for Fiscal Year 2019-20, revenues are projected at
$842,000 ($13,000 lower than the adopted budget).
Interest and Rents (1 %) -This category accounts for revenue generated from the
investment of City funds and the renting of City properties. An adjustment has been
proposed to reduce estimated revenues for facility rentals by $35,500 in Fiscal Year
2019-20 to be consistent with recent adjustments to revenue projections noted in the
Second Quarter Financial Report for Fiscal Year 2018-19. In addition, investment
income earned by the General Fund is expected to be $100,000 in Fiscal Year 2019-20
($40,000 higher than that reflected in the adopted budget) due to improved performance
of the City's investment portfolio.
Fines and Forfeitures (3%) -These revenues are remitted to the City from the County
and State for vehicle code violations, parking fines and Proposition 172 ('Y2 cent sales
tax) funds dedicated to public safety. As a result, these revenues lag slightly behind
those activities that generate the revenue. Based on the most recent sales tax
projections provided by the City's sales tax consultant, public safety sales tax revenues
for Fiscal Year 2019-20 are expected to be $301,000, $29,000 higher than that reflected
in the Fiscal Year 2019-20 Adopted Budget. The amount of parking fines reflected in the
proposed Amended Budget for Fiscal Year 2019-20 has been increased by $29,000 to
reflect an uptick in recent trends noted in the collection of such revenue. Vehicle code
fines have been declining over the last couple of years. Although the City budgeted
$160,000 in vehicle code fines for Fiscal Year 2019-20, in Fiscal Year 2017-18 (the
most recently completed fiscal year), the City only collected $138,000 in vehicle code
fines and has collected only $111,000 for Fiscal Year 2018-19 to date. Consequently,
staff has reduced the Fiscal Year 2019-20 revenue projection for vehicle code fines
from $160,000 to $138,000 (a reduction of $22,000 from the adopted budget). Finally,
other fines and forfeitures that the City receives from the County were also reduced
City Council Agenda Report
June 4, 2019
Page 7 of 21
from $5,000 in the Fiscal Year 2019-20 Adopted Budget to $1,000 in the Fiscal Year
2019-20 Proposed Budget based on the amount of average actual revenue collected
between Fiscal Years 2015-16 and 2017-18.
Other Revenue (less than 1 %) -These one-time revenues include miscellaneous
receipts for sales of City property, damage to City property, community donations and
various other reimbursements. These revenues typically fluctuate from year to year.
Other revenues are projected to be $11,000 lower than that reflected in the Fiscal Year
2019-20 Adopted Budget primarily because the Friends of the Library made their final
loan repayment to the City in Fiscal Year 2018-19 (one year earlier than expected):
Landfill Agreement Funds (non-recurring) (9%) -Under the new cooperative
agreement with the County regarding the Prima Deshecha Landfill, the County agreed
to pay the City two one-time equity payments of $3,000,000 each. The City received
the first equity payment in January. An adjustment has been proposed to increase
revenues by $3,000,000 to reflect the second payment which is expected to be received
in July.
Transfers In (2%) -Transfers In represent amounts received from other funds of the
City to reimburse the General Fund for costs paid by the General Fund that met the
eligibility requirements associated with other funds. For Fiscal Year 2019-20, such
reimbursement primarily pertains to costs paid by the General Fund for: public safety,
senior mobility transportation, street maintenance, vehicle miles traveled program and
the trolley program for summer and special events. Transfers In are increasing from the
Fiscal Year 2019-20 Adopted Budget by $36,500 to reflect additional funding for the
trolley program and funding for the new state mandated vehicle miles traveled program.
General Fund Expenditures
Revised projections for General Fund expenditures for Fiscal Year 2019-20 are
projected to be $2.7 million higher than the amount that was reflected in the adopted
budget. This $2.7 million increase consists primarily of a $3 million proposed
appropriation to apply the funds expected to be received from the one-time landfill
equity payment toward water quality projects. In addition, staff proposes a $269,000
reduction in the General Fund's operating expenditures budget in order to address the
General Fund revenue reductions for Fiscal Year 2019-20 discussed above. This
proposed reduction in budgeted operating expenditures reflects the result of numerous
reductions in the planned spending of every operating department in order to bring the
General Fund budget back into balance using only recurring revenues. The $3 million
appropriation for water qualify projects is represented in the chart below in two
components: ( 1) transfers to capital project funds in the amount of approximately
$900,000 for water quality project expenditures planned for Fiscal Year 2019-20; and
(2) $2.1 million appropriated to fund a reserve for water quality project expenditures in
future fiscal years.
All of the expenditure budget adjustments proposed for the General Fund are listed in
Attachment 1 .
City Council Agenda Report
June 4, 2019
Page 8 of 21
General Fund Expenditure Summary
Amended ( 1) Adopted Proposed (2)
Budget Budget Proposed Budget
Description 2018/19 2019/20 Adjustments 2019/20
City Council $ 143,285 $ 146,460 $ 3,565 $ 150,025
City Manager 1,678,685 1,775,055 (45,945) 1,729,110
City Attorney 1,077,000 706,000 706,000
City Clerk 610,030 623,795 11,200 634,995
Finance 1,564,965 1,637,495 (11 ,365) 1,626, 130
Public Safety 11J146,489 11,571 ,740 32 ,730 11,604,470
Community Services 2,252,265 2,267,340 (60,160) 2,207, 180
Development Services 2,680,530 2,684,770 (73,260) 2,611 ,510
Public Works/Utilities 7,931,028 8,037,275 (126,985) 7,910,290
Other 3,669,000
Transfers Out 397,950 400,380 890,690 1,291,070
EXPENDITURE TOT AL $33, 151,227 $ 29,850,310 $ 620,470 $ 30,470,780
Reserved for consent decree water
quality projects 2, 111 ,000 2, 111,000
TOT AL EXPENDITURES AND FUNDING
TO RESERVES $33, 151,227 $ 29,850,310 $ 2,731,470 $ 32,581,780
(1) This column reflects the Amended Budget as of the Third Quarter Financial Report approved by the City
Council on May 21, 2019 .
(2) This column reflects the impact of the proposed budget adjustments presented in Attachment 1.
Fund Balance of the General Fund
The spendable fund balance of the General Fund as of the end of Fiscal Year 2018-19
is projected to be $18.0 million, consisting of $2.1 million for future water quality project
expenditures and $15.9 million for all other purposes:
City Council Agenda Report
June 4, 2019
Page 9 of 21
General Fund Summary
Amended ( 1) Adopted Proposed (2)
Budget Budget Proposed Budget
Description 2018/19 2019/20 Adjustments 2019/20
Revenues $31,585,828 $29,917,000 $ 2,719,500 $ 32,636,500
Carryover of unexpended prior appropriations 1,717,000
Total revenues (including carryover funds) $33,302,828 $29,917,000 $ 2,719,500 $ 32,636,500
Expenditures 33, 151,227 29,850,310 620,470 30,470,780
Funding reserve for consent decree water 2,111,000 2,111,000
Total expenditures (including reserve) $33, 151,227 $29,850,310 $ 2,731,470 $ 32,581,780
Revenues over (under) expenditures $ 151,601 $ 66,690 $ (11,970) $ 54,720
Spendable fund balance, July 1 $15,616,212 $15,811,721 $ 15,878, 724
Revenues over/(under) expenditures 151,601 66,690 54,720
Adjustment for non-spendable prepaids 110,911
Adjustment for reserve for consent decree
water quality projects 2,111,000
Spendable fund balance, end of period $15,878, 724 $15,878,411 $ 18,044,444
'1l This column reflects the Amended Budget as of the Third Quarter Financial Report approved by the City Council on
May 21, 2019.
'2 l This column reflects the impact of the proposed budget adjustments included on Attachment 1.
Water Enterprise Operating Funds
Domestic Water Operations Fund (Fund 60)
The Domestic Water Operations Fund accounts for the mix of imported water and
locally produced water (from the Groundwater Recovery Plant) that together support the
sale of water to domestic system customers. The number of acre feet of water expected
to be sold in Fiscal Year 2019-20 has been updated to reflect the quantity of water
delivered to customers in the most recent twelve month period (through January 2019).
As a result, the quantity of domestic (potable) water projected to be sold in Fiscal Year
2019-20 has increased from 7, 185 acre feet to 7 ,272 acre feet. This is a conservative
projection of the amount of potable water expected to be sold in Fiscal Year 2019-20.
Actual sales may be somewhat higher than that of the preceding twelve month period
as a result of new commercial and residential development projects that are expected to
be completed and placed into service after January 2019, including the last phase of the
Pacifica San Juan residential development project that is currently in progress, and
completion of the Inn at the Mission that is scheduled to be open for business in
February 2020. In addition, the Fiscal Year 2019-20 annual production estimate for the
Groundwater Recovery Plant (GWRP) is expected to decrease from 2,384 acre feet to
1,925 acre feet due to planned refurbishment of related wells and other reductions that
reflect prudent basin management.
The effect of revised projections for quantities of water expected to be sold have
resulted in a proposed Fiscal Year 2019-20 budget adjustment that will increase
revenues by $110,250. Of this amount, $195,000 is for increased water commodity
City Council Agenda Report
June 4, 2019
Page 10 of 21
revenue as a result of increased customer sales, which is partially offset by a reduction
of $114,750 in grant revenues to be received from the Metropolitan Water District of
Southern California (MWD) due to reduced GWRP production. A detail of the proposed
revenue adjustments can be found in Attachment 1.
Adjustments have also been proposed for the amount budgeted for expenses of the
Domestic Water Operations Fund. Total proposed operating expense revisions will
result in a net increase in expenses in the amount of $1.1 million. Due to increased
sales and the reduction of GWRP production next year, imported potable water costs
are expected to increase by approximately $811,000. Other significant cost increases
include $120,000 for legal and consulting costs associated with the Utilities
Reorganization Project and a proposed increase in the amount of funds to be
transferred to the Domestic Water Capital Replacement Fund by $200,000 to set aside
money to fund future capital projects. Further information regarding proposed expense
adjustments is provided in Attachment 1.
The Domestic Water Operations Fund's excess of revenues over expenses is projected
to be $6.8 million in Fiscal Year 2019-20. After funding $640,000 for the final loan
repayment to the Sewer Operations Fund and Sewer Capital Improvement Fund, $2.0
million of funds transferred to the Domestic Water Capital Replacement Fund and $3.0
million of funds transferred to the Water Debt Service Fund, the available fund balance
of the Domestic Water Operations Fund is projected to be $3.1 million as of June 30,
2020.
The following is a summary of the Proposed Budget of the Domestic Water Operations
Fund for Fiscal Year 2019-20:
City Council Agenda Report
June 4, 2019
Page11of21
Domestic Water Operations Fund Summary
Amended (1) Adopted Proposed (2)
Budget Budget Proposed Budget
Description 2018/19 2019/20 Adjustments 2019/20
Available Fund Balance, July 1 $ 988,117 $ 1,224,722 $ 1,802,583
Revenues
Water Commodity Charges $15,368,000 $16,131,000 $ 195,000 $16,326,000
Customer Services Charges 5,263,000 5,263,000 5,263,000
Other Water Service Revenues 671,000 497,000 5,000 502,000
MWD Grant @ $250/af 475,000 596,000 (114,750) 481,250
· Investment Interest 25,000 5,000 25,000 30,000
REVENUE TOT AL $21,802,000 $22,492,000 $ 110,250 $22,602,250
Expenses
Source of Supply $ 8,063,805 $ 8,331,245 $ 905,590 $ 9,236,835
Maintenance & Operations 4,121,495 4,440, 155 (137,565) 4,302,590
General & Administrative 1,966,739 1,914,434 181,511 2,095,945
Legal. 558,000 50,000 70,000 120,000
EXPENSE TOT AL $14,710,039 $14,735,834 $ 1,019,536 $ 15, 755,370
Revenues Over/(Under) Expenses before
Transfers and Sewer Loan Repayment 7,091,961 7,756,166 6,846,880
Transfer Out-Water Debt Service Fund (3,042,360) (2,963,590) 11,200 (2,952,390)
Transfer Out-Domestic Water Capital (1,760,135) (1,800,000) (200,000) (2,000,000)
Replacement Fund
Sewer Loan Repayment (1 ,475,000} {750,000} 110 ,000 (640,000)
Net Increase (Decrease) in Available Fund 814,466 2,242,576 (78,800) 1,254,490
Balance
Available Fund Balance -
Before Sewer Loan $ 1,802,583 $ 3,467,298 $ 3,057,073
Year End Balance of Sewer Fund Loan (636,000)
Total Available Fund Balance $ 1,166,583 $ 3,467,298 $ 3,057,073
(1) This column reflects the Amended Budget as of the Third Quarter Financial Report approved by the City Council
on May 21, 2019.
(2) This column reflects the impact of the proposed budget adjustments presented in Attachment 1.
Non-Potable Water Operations Fund (Fund 66)
Staff used the same methodology that was used to estimate potable water sales to
estimate non-potable water sales. Therefore, the number of acre feet of non-potable
water expected to be sold in Fiscal Year 2019-20 has been updated to reflect the
quantity of water delivered to customers in the most recent twelve month period
(through January 2019). The non-potable water projected to be sold in Fiscal Year
2019-20 has increased from 625 acre feet to 628 acre feet. This is a conservative
projection of the acre feet expected to be sold in Fiscal Year 2019-20. Actual sales
could be somewhat higher than that of the preceding twelve month period as a result of
service conversions from potable to non-potable water service.
The effect of revised projections for quantities of water expected to be sold have
resulted in a proposed Fiscal Year 2019-20 budget adjustment that increases projected
revenues by $7,000. Of this amount, $5,000 is for increased water commodity charges
due to increased customer sales. A detail of the proposed revenue adjustments can be
found in Attachment 1 .
City Council Agenda Report
June 4, 2019
Page 12 of 21
Adjustments have also been proposed for the amounts budgeted for expenses of the
Non-Potable Water Operations Fund. Total proposed operating expense revisions will
result in a net increase in expenses by approximately $90,000. The most significant cost
increase is to provide $230,000 of additional funding to the Non-Potable Capital
Improvement Fund to set aside money to fund future capital projects . This cost increase
is partially offset by a reduction of $128,000 for imported recycled water costs due to
increased production from the City's non-potable wells. Further information regarding
the proposed expense adjustments is provided in Attachment 1.
The Non-Potable Water Operations Fund's excess of revenues over expenses is
projected to be approximately $631,000 in Fiscal Year 2019-20. After funding $630,000
in transfers to the Non-Potable Water Capital Improvement Fund, the available fund
balance of the Non-Potable Water Operations Fund is projected to be approximately
$239,000 as of June 30, 2020.
The following is a summary of the Proposed Budget of the Non-Potable Water
Operations Fund for Fiscal Year 2019-20:
Non-Potable Water Operations Fund Summary
Amended ( 1) Adopted Proposed (2)
Budget Budget Proposed Budget
Description 2018/19 2019/20 Adjustments 2019/20
Available Fund Balance, July 1 $ 110,233 $ 99,496 $ 238,864
Revenues
Water Commodity Charges $ 945,000 $ 993,000 $ 5,000 $ 998 ,000
Customer Services Charges 72,000 72,000 72,000
Other Water Service Revenues 4 ,000 1,000 1,000 2,000
MWD Grant@ $150/af 13,500
Investment Interest 1,000 1,000
REVENUE TOT AL $ 1,034,500 $1,066,000 $ 7,000 $ 1,073,000
Expenses
Source of Supply $ 415,709 $ 488,849 $ {117,249) $ 371,600
Maintenance & Operations 78,075 80,755 (21,135) 59,620
General & Administrative 12,085 12,855 p,655~ 11 ,200
EXPENSE TOT AL $ 505,869 $ 582,459 $ (140,039) $ 442,420
Revenues Over/(Under) Expenses before
Capital Project Funding 528,631 483,541 630,580
Transfer Out-Non-Potable Water Capital (400 ,000) (400 ,000) (230,000) (630,000)
Improvement Fund
Net Increase (Decrease) in Available Fund 128,631 83,541 (230,000) 580
Balance
Total Available Fund Balance $ 238,864 $ 183,037 $ 239,444
(1) This column reflects the Amended Budget as of the Third Quarter Financial Report approved by the City Council on
May21, 2019 .
(2) This column reflects the impact of the proposed budget adjustments presented in Attachment 1.
City Council Agenda Report
June 4, 2019
Page 13 of 21
Sewer Operations Fund
The proposed Fiscal Year 2019-20 budget for the Sewer Operations Fund includes
adjustments to reduce revenues by $48,500 and reduce expenses by approximately
$768,500. The reduction in expense projections is primarily due to the application of $1
million of Fiscal Year 2018-19 budget savings for the City's share of capital
contributions due to the South Orange County Wastewater Authority (SOCWA) that will
be utilized to address Fiscal Year 2019-20 costs. This benefit is partially offset by a
$231,500 projected increase in other operating costs. Further information regarding the
proposed expense adjustments is provided in Attachment 1.
A summary of the impacts of proposed budget adjustments to the Sewer Operations
Fund is as follows:
s 0 • f F dS
Amended ( 1) Adopted Proposed (2)
Budget Budget Proposed Budget
Description 2018119 2019/20 Adjustments 2019120
Available Fund Balance, July 1 $ 6,297,712 $ 3,301,370 $ 6,394,053
Revenues
Sewer Service Charges $ 3,732,000 $3,732,000 $ $ 3,732,000
Investment Interest 15,000 5,000 9,000 14,000
Other Interest 7,500 5,000 (2,500) 2,500
Loan Repayment from Water Operations Fund 737,500 375,000 {55,000} 320,000
REVENUE TOT AL $ 4,492,000 $ 4,117,000 $ (48,500) $ 4,068,500
Expenses
Maintenance & Operations $ 3,208,424 $ 3,058,794 $ 228,821 $ 3,287,615
General & Administrative 187 ,235 193,575 2,720 196,295
EXPENSE TOTAL $ 3,395,659 $ 3,252,369 $ 231,541 $ 3,483,910
Revenues Over/(Under) Expenses -before 1,096,341 864,631 584,590
capital
Transfer Out-Capital Replacement Fund (1,000,000) (2,500,000) 1,000,000 (1,500,000)
Revenues Over/(Under) Expenses -after
capital 96,341 (1,635,369) (915,410)
Available Fund Balance, End of Period $ 6,394,053 $1,666,001 $ 5,478,643
(1) This column reflects the Amended Budget as of the Third Quarter Financial Report approved by the City Council
on May 21, 2019.
(2) This column reflects the impact of the proposed budget adjustments presented in Attachment 1.
Seven-Year Capital Improvement Program (CIP)
With each budget cycle and periodically as circumstances warrant, the City of San Juan
Capistrano evaluates its capital project needs and adjusts the amounts that are planned
for expenditure under its Capital Improvement Program for the succeeding seven year
period.
A number of adjustments to the Fiscal Year 2019-20 capital budget have been
proposed as a result of delays in the receipt of development fees that provide the
primary source of funding for the City's capital projects, and add certain water quality
City Council Agenda Report
June 4, 2019
Page 14 of 21
projects that the City is required to complete in the Eastern Open Space area pursuant
to the Consent Decree associated with resolution of the Coastkeeper lawsuit.
Staff recommends reducing CIP appropriations for Fiscal Year 2019-20 by $2.8 million
as summarized in the chart below:
Project Name Project Number
Proposed Spending Adjustments for Existing Projects
South Orange County Wastewater Authority PC #2 & PC #5
Meredith Canyon Street Pavement Rehabilitation
Camino Capistrano Pavement Rehabilitation
San Juan Hills Greens Cathodic Protection System
Valve Insertion Program
Well Facility Equipment Replacement Program
Annual Recycled Water Service Conversions Project
Proposed Projects to Delay
7701
19101
19102
17801
17803
17807
20601
Citywide Playground Upgrades (Delayed to Fiscal Year 2020-21) 9203
2.4 Acre Site (adjacent to Reata Park) 20201
(Delayed to Fiscal Year 2020-21)
760S Zone Pump Station Discharge Line Replacement 17802
(Delayed to Fiscal Year 2020-21)
Trampas Canyon Recycled Water Reservoir 17601
(Delayed to Fiscal Year 2020-21)
Calle Arroyo Recycled Pipeline (Delayed to Fiscal Year 2020-21) 18601
Proposed Projects to Unfund (Remove from the Seven-Year CIP)
New Hydraulic Capital Project #6
Proposed New Projects
Confined Animal Feeding Operations (CAFO)
Stormwater Treatment System
Stream Bank Restoration
Arizona Crossing Removal
Safety Access Stair and Platform System
Public Right-of-Way ADA Implementation Plan
7703
20501
20203
20202
20802
20102
Increase
(Decrease} in
Fiscal Year
2019-20 CIP
Expenditures
$ (200,000)
200,000
(450,000)
165,000
100,000
85,000
146,000
(120,000)
(200,000)
(800,000)
(5,000)
(324,000)
(2,460,000)
565,000
195,000
129,000
120,000
25,000
Total Impact on Fiscal Year 2019-20 CIP Expenditures $ (2,829,000)
Significant capital project adjustments summarized above are described in greater detail
as follows:
• The primary funding source for park projects are park in lieu fees that are paid by
private developers. As a result of delays in the timeline of private development
projects, at the beginning of Fiscal Year 2019-20, there will be $348,000 less
funding available for park projects than had been anticipated in the originally
City Council Agenda Report
June 4, 2019
Page 15 of 21
adopted budget for Fiscal Year 2019-20. As a result, staff proposes to delay
funding for the Citywide Playground Upgrades Project (GIP 9203) and the 2.4
Acre Site Project (located adjacent to Reata Park). Funding for these projects
has been proposed to be delayed until Fiscal Year 2020-21.
• In September 2018, the City entered into a consent decree to resolve the Orange
County Coastkeeper v. City of San Juan Capistrano and Blenheim Facility
Management, LLC lawsuit. As a result of the consent decree, the Fiscal Year
2019-20 proposed GIP plan adds to the City's Seven-Year CIP three new capital
projects that are set forth in the table below. Three million dollars (of ·the $8.4
million estimated project costs) from the final payment associated with the new
landfill agreement is proposed to be set aside as partial funding for the
improvements . The remainder could be funded by a combination of sources,
including recoveries from responsible third parties, future operators of the Riding
Park, possible grant funding and General Fund reserves. The distribution of
funding from these sources is not determinable at this time. A summary of these
projects is set forth below:
Water Quality Projects
Fiscal Year
2019/20
Description Costs Future Costs Total Costs
Confined Animal Feeding Operations $ 565,000 $ 5,575,000 $ 6, 140,000
Stormwater Treatment System
Stream Bank Restoration 195,000 1,600,000 1,795,000
Arizona Crossing Removal 129,000 365,000 494,000
EXPENDITURE TOT AL $ 889,000 $ 7,540,000 $ 8,429,000
• Similar to the parks and open space capital projects, the Camino Capistrano
Pavement Rehabilitation Project (from Aeropuerto to Costco) (CIP 19102) has a
temporary cash flow challenge. Like park and open space projects, the funding
for this project is fees (in this case, System Development fees) that are paid by
private developers. The delay in certain residential development projects has
created delays in the collection of these revenues. As a result, the Fiscal Year
2019-20 budget for this project has been reduced from $900,000 to $450,000.
• The Utilities Department has reprioritized the funding for domestic and non-
potable water capital projects. Staff is recommending delaying the following
projects until Fiscal Year 2020-21: 760S Zone Pump Station Discharge Line
Replacement Project (GIP 17802); Calle Arroyo Recycled Pipeline Project (GIP
18601 ); and Trampas Canyon Recycled Water Reservoir (GIP 17601 ). In
addition, to enhance safety for personnel working in the GWRP, staff is
requesting $120,000 to fund a new project in Fiscal Year 2019-20, the Safety
Access Stair and Platform System Project (GIP 20802).
City Council Agenda Report
June 4, 2019
Page 16 of 21
• City Council approved cancellation of Hydraulic Capital Project No. 6 (CIP 7703)
with approval of the Third Quarter Financial Report's budget adjustments on May
21, 2019. As a result, the proposed budget for Fiscal Year 2019-20 eliminates
the remaining funding for this canceled project in the amount of $2.5 million.
Attachment 3 represents the Resolution to approve the Seven-Yea~ Capital
Improvement Program for Fiscal Years 2019-20 through 2025-26, summarized as
follows:
Project
Fiscal Year (1> Expenditures
2019-20 $ 10, 194,040
2020-21 18,308,420
2021-22 15,037,780
2022-23 14,058,000
2023-24 7,412,000
2024-25 9,124,000
2025-26 8,313,000
TOTAL $ 82,447,240
(1l The Fiscal Year 2019-20 project expenditures have been appropriated as part of the
Fiscal Year 2019-20 Operating and Capital Budget.
A modified version of the Seven-Year Capital Improvement Program for Fiscal Years
2019-20 through 2025-26 is included at Attachment 4 in order to meet the requirements
of the Measure M2 program of the Orange County Transportation Authority. This
version of the Seven-Year Capital Improvement Program includes costs associated with
the City's senior mobility program and summer trolley program that are not capital
expenditures for budgetary purposes. Approval of this document is required in order to
continue to receive Measure M2 transportation funds.
Parks and Open Space Capital Projects
The current seven-year Capital Improvement Projects (GIP) budget includes funding for
several parks and open space projects. Some of these projects are in various stages of
planning, design and construction, while others are slated to occur in future years
pending receipt of funding, which is speculative and largely based on the timing of
private development activity. Additionally, there are projects in the current CIP budget
that may no longer be viable, desired or cost effective. Alternatively, over the past year
other potential project concepts have emerged that the City Council may wish to
consider adding to the GIP budget using the City's limited funding. At tonight's meeting,
staff will provide the City Council with an overview of upcoming and potential future
projects, and provide options for the City Council's consideration that will help focus City
resources on accomplishing the most critical projects in the next two to three
years. Staff's presentation of options will include a discussion on proposed new parks
and open space projects that can be started as early as Fiscal Year 2019-20, and will
be seeking City Council direction on possible funding sources for those projects, which
City Council Agenda Report
June 4, 2019
Page 17 of 21
could include available cash on hand, designating certain Fiscal Year 2019-20 revenues
for a particular project, partnering with private landowners or other public agencies, and
canceling the funding for projects in the City's current CIP budget that have not yet
begun in order to make funds available for projects determined to be a higher priority.
Establishment of the Appropriations Limitation for Fiscal Year 2019-20
Article XIII of the California State Constitution requires that local governments establish
a limitation on the amount of proceeds of taxes that may be appropriated for spending.
It is the City's responsibility to calculate the annual appropriations limit using a
methodology established by state statute. The previous fiscal year's limit is increased by
a unifying factor that takes into account changes in population as well as inflation. For
the inflation factor, cities may choose either the change in the measurement of
California Per Capita Personal Income (CCPI) or the change in the amount of the City's
assessed valuation that is due to non-residential construction. For the population factor,
cities can select either the change in population for the city or that of the county. The
choice of each of these factors is made by an annual election of Council by means of a
resolution.
Based on the foregoing methodology set forth in state law, the appropriations limitation
for Fiscal Year 2019-20 has been determined to be $84,237,651 (Exhibit A of
Attachment 5). The City's budgeted expenditures for Fiscal Year 2019-20 that are
funded by proceeds of taxes as defined by state law are significantly below the limit
and, therefore, the City's Fiscal Year 2019-20 Budget is in compliance with the State
Constitution with respect to this matter.
Approval of Property Tax Rates for Voter-Approved Bonded Indebtedness
On November 4, 2008, voters approved Measure Y, which provided $30 million in bond
funding for the acquisition, preservation, enhancement and improvement of land to
protect and preserve open space, natural areas, creeks and streams, historic areas,
undeveloped hillsides, natural ridges and to provide additional recreational amenities,
such as bike and walking trails, equestrian facilities, parks and sports fields. Pursuant to
Measure Y, $30 million in bonds were issued under this measure in January 2010. In
February 2017, the City issued taxable refunding bonds to refinance the original bonds.
The City must annually establish the ad valorem tax rate that is necessary to fund the
annual installments of principal and interest that are associated with voter-approved
bonded indebtedness (general obligation bonds). The calculation for this tax rate takes
into account the debt service requirements for the year in question, as adjusted for any
excess/deficit reserve in the Debt Service Fund, in order to determine the amount that is
needed to be collected from the ad valorem tax levy to fully fund debt service on the
general obligation bonds of the City. Once that amount is determined, it is then divided
by the estimated amount of secured assessed valuation applicable to the fiscal year in
question to arrive at the tax rate for the levy. Upon approval by Council, the County of
Orange is notified of the approved rate for placement on the property tax roll. The ad
valorem tax rate for the City's voter-approved debt for Fiscal Year 2019-20 is $0.02252 .
per $100 of assessed valuation (Attachment 6).
City Council Agenda Report
June 4, 2019
Page 18 of 21
Staffing
Due to the recent transition of the Assistant City Manager position and the retirement of
a long-tenured Engineering Technician, staff has reviewed current and projected work
assignments and is recommending two minor reclassifications at this time to more
effectively match personnel resources and job descriptions with the work to be
performed, without increasing the budgeted expenditures of the City.
Some of the responsibilities of the Management Analyst in the City Manager's
Department include: budget preparation and monitoring, oversight of information
technology, assistance with emergency management duties and support for public
information activities. The prior Assistant City Manager had the primary role related to
emergency management and public information responsibilities, and the Management
Analyst will be assuming added duties in these areas, in addition to taking over
supervision of the part-time Emergency Services Manager. To recognize these added,
higher level duties, it is recommended that the Management Analyst position be
reclassified to Senior Management Analyst and that the incumbent be placed in the new
position, effective July 1, 2019. The other Analyst positions in the organization -in
Development Services and Public Works & Utilities -are all staffed at the Senior
Analyst level. Funding for this reclassification would come from salary savings
associated with the vacancy of the part-time Project Manager position in the City
Manager's Department.
With the recent retirement of an Engineering Technician, staff has reviewed the
customer service public counter needs and is recommending that two current
classifications, Engineering Technician and Planning Technician, which perform similar
functions within their specific areas, be combined into one classification, Engineering
and Planning Technician (Attachment 7, Exhibit A). Both of the current Technician job
classifications are at salary grade 42 and it is recommended that the new classification
remain at that same grade. Accordingly, this reclassification will have no fiscal impact.
This adjustment will provide the departments with additional flexibility to meet the
changing work demands that occur at any given time. The attached resolution would
approve this new classification and associated job description, authorize the filling of a
position and approve a change to the salary table to include the new position, as well as
the addition of certain existing classifications that had been inadvertently omitted from
prior salary tables (Attachment 7, Exhibit B).
Investment Policy
As a part of the financial review associated with the budget process, the Chief Financial
Officer and the City's investment advisor (Chandler Asset Management) evaluated the
City's investment policy. Attachment 9 to this agenda report reflects the proposed
revised investment policy that resulted from this evaluation. The changes reflected in
the revised policy include adding language to clarify that the restrictions for asset-
backed securities (ABS) only apply to securities not issued by the U.S. Government or
U.S. Agencies, adding a section for prohibited investments, adding language that
excludes nonnegotiable certificates of deposit from the diversification limitations set
forth in the policy and adding a glossary to define key terms.
City Council Agenda Report
June 4, 2019
Page 19 of 21
Purchasing Ordinance and Policy
The purchasing ordinance and policy have been updated to conform to recent changes
in state and federal law with respect to procurement. Certain other changes are being
proposed to clarify and elaborate on the purchasing requirements, allow for informal
price quotes in lieu of formal requests for proposals in certain circumstances and
increase the threshold required for competitive bidding for all procurement of the City
from $3,000 to $10,000 to correlate to changes that went into effect this year for
procurement involving federal funds.
Law Enforcement Services Agreement with County of Orange
The Five-Year Law Enforcement Services Agreement (Agreement) with the Orange
County Sheriff's Department (OCSD) was initiated on July 1, 2015, and will terminate on
June 30, 2020 (Attachment 14). This Agreement requires that the County submit a
proposed staffing level and financial obligation update each year to the City for
approval. OCSD has submitted the Fourth Amendment to the Agreement for Council
approval for the period of July 1, 2019, to June 30, 2020 (Attachment 15). The cost of
law enforcement services for Fiscal Year 2019-20 as estimated in the Amendment is
$10,494,404, which is a 1.8% increase compared to the Fiscal Year 2018-19 revised
estimate of $10,313,859. The amount budgeted for contracted law enforcement
services as set forth in the Fiscal Year 2019-20 Adopted Budget provides sufficient
funding for this amendment, as well as an anticipated increase due to increases in
certain salary and benefit costs that are currently being negotiated by the County of
Orange for Fiscal Year 2019-20. The amount of the salary increase is expected to be
known by mid-year in Fiscal Year 2019-20 and would likely be retroactive to July 1,
2019.
The Fiscal Year 2019-20 direct staffing level of 30 full-time OCSD employees is the
same as that for Fiscal Year 2018-19.
The following chart depicts the City's dedicated law enforcement staffing resources:
QUANTITY DEDICATED POSITIONS
1 Lieutenant
5 Sergeant (4 Patrol+ 1 Administrative)
2 Investigator
15 OS II Patrol
2 OS 11 Motorcycle
1 DS II Community Support
1 DS II -DET
OS II • Extra Help
27 Subtotal Safety
2 Community Services Officer
1 Crime Preve ntion Speci<:1fiSt
3 Subtotal Profes5ional
30 TOTAL
City Council Agenda Report
June 4, 2019
Page 20 of 21
The City also shares law enforcement resources with other South Orange County cities .
In Fiscal Year 2019-20 the City will share resources of 17.90 full-time employees, the
same shared staffing allocation as that for Fiscal Year 2018-19.
The following chart depicts the City's shared law enforcement staffing resources :
QUANTITY REGIONAL I SHARED STAFF % ALLOCATION
0 .6 Traffic -Sergeant 6 .61%
4 Traffic -Deputy Sheriff II 6 .61%
2 Traffic -Investigative Assistant 6 .61%
1 Traffic -Office Specialist 6 .61%
0.3 Auto Theft -Sergeant 4 .84%
2 Auto Theft -Investigator 4 .84%
1 Auto Theft -Investigative Assistant 4.84%
1 Auto Theft -Office Specialist 4.84%
1 DET -Sergeant 12 .19%
1 DET -Investigator 12 .19%
1 Subpoena -Office Specialist 6.92 %
2 Courts -Investigative Assistant 21.54%
1 Motorcycle Sergeant+ MDC 6.45%
17.90 TOTAL
In addition to these resources, OCSD provides the City with specialized resources, such
as, Special Weapons and Tactics (SWAT), Mounted Enforcement Units, Homicide
Investigation Unit and Specialized Investigation Units focused on areas such as
economic crimes and gang suppression.
Included in the Amendment is a minor reorganization of staffing assigned to the City to
better utilize personnel. Two part-time extra help positions are being eliminated. A part-
time Cadet Position is being added to address the duties currently performed by the
extra help personnel. A Crime Prevention Specialist is being reclassified to Staff
Specialist. The cost of these changes are expected to be funded by the eliminated
positions and overtime credits.
FISCAL IMPACT:
The fiscal impact of the Proposed Operating and Capital Budget for Fiscal Years 2019-
20 on each fund of the City is summarized in Attachment 2. The fiscal impact of the
Proposed Seven-Year Capital Improvement Program for Fiscal Years 2019-20 through
2025-26 is summarized in Attachment 3.
ENVIRONMENTAL IMPACT:
Not applicable .
City Council Agenda Report
June 4, 2019
Page 21 of 21
PRIOR CITY COUNCIL REVIEW:
On June 11, 2018, Council approved the Fiscal Year 2018-19 and 2019-20 Operating
and Capital Improvement Budgets and adopted the Seven-Year Capital Improvement
Program for Fiscal Years 2018-19 through 2024-25.
COMMISSION/COMMITIEE/BOARD REVIEW AND RECOMMENDATIONS:
• On May 28, 2019, the Planning Commission determined that the Proposed
Seven-Year Capital Improvement Program for Fiscal Years 2019-20 through
2025-26 is consistent with the City's General Plan.
NOTIFICATION:
Not applicable.
ATIACHMENTS:
Attachment 1 -Summary of Proposed Budget Adjustments
Attachment 2 -Resolution Amending the Fiscal Year 2019-20 Operating and Capital
Budget
Attachment 3 -Resolution Adopting the Seven-Year Capital Improvement Program for
Fiscal Years 2019-20 through 2025-26
Attachment 4-Measure M2 Seven-Year Capital Improvement Program for Fiscal Years
2019-20 through 2025-26
Attachment 5 -Resolution Establishing the Fiscal Year 2019-20 Appropriations
Limitation
Attachment 6 -Resolution Establishing the Property Tax Rate for the Open Space
(Measure Y-2008) General Obligation Bonds, Series 2017 for Fiscal
Year 2019-20
Attachment 7 -Resolution Amending the City's Personnel Classification and
Compensation Plans
Attachment 8 -Revised Investment Policy (red-lined)
Attachment 9 -Revised Investment Policy (clean)
Attachment 10 -Purchasing Ordinance (red-lined)
Attachment 11 -Purchasing Ordinance (clean)
Attachment 12 -City Council Policy No. 126 (red-lined)
Attachment 13 -City Council Policy No. 126 (clean)
Attachment 14 -Five-Year Agreement for Law Enforcement Services
Attachment 15-Fiscal Year 2019-20 Law Enforcement Services Agreement
GENERAL FUND -01
City of San Juan Capistrano
FY 2019/20
PROPOSED BUDGET ADJUSTMENTS
Description
Second equity payment from County of Orange per cooperative agreement regarding the Prima
Deshecha Landfill approved by City Council on October 16, 2018, offset by capital project funding
Revenue
Adjustment
an d reserve for future consent decree water quality projects J.
Consolidate report ing for landfill host fees -reduce "trash importation fw"
3,000,000
(200,000)
200,0.2.SJ Consolidate reporting for landfill host fees --increase "landfill host fees"
Transi entoccupancy taxes based onFiscal Year 2018/19 activity and anticipated n ew revenue from
the Inn at the Miss io n opening in February 2020
Sales tax revenue basedon updated estimate provided by City's consultan~ Hdl, Inc.
Property ta x revenue-based on reducing estimate Of increase-in assessed va luation from 5% to
4.5%
Real property transfer tax based on Fiscal Year 20ls/19 activity
Franchise fees for: electrical, gas, cable TV, refuse, _and ~ideo
Investment income
Rentals for : facilities, parks, gym nasium, and athletic fields
Public safety tax revenue based on updated estimate provided by Oty's consUitant;-HF,1nc.
Parking fine s -------·---
Vehicle. code fines
Landfill host fee revenue from County of Orange per cooperative a·greemen-t regarding the Prima ·
Deshecha Landfill approved by City Council on October 16, 2018
Final l~an repayment from Friends of the Library, which was received during Fiscal Year 2018/19
Other fines and forfeitures revenues ----
Adtustments to Personnel Costs:
Reduction in Administrative Overhead Charges to Other Funds due to revised personnel staff
allocations
Revise Administrative Coordinator positi on to Office Assistant position (Community Services
Department)
Revise Administrative Coordinator position to Office Assistant position (City Manager Department)
ReviSe Senior Permit Techn ician position to Permit Technician position (Development Services
Department)
lricreased automobile allowance for employees· in the Management and ProfessionarEmployees
Association per agreement approved by City Council on June 11, 2018
Other personnel budget changes due to the reallocation of staff ff me from other funds and
adjustments to health insurance and retirement costs as described in the "Insurance and Benefits
Fund" section
Adjustments to Contracted Services :
Adjustment to engineering perm ii:-revenues to reflect statrs updated development projections,
offset by reduction in contracted engineering services
Adjustment to plannlng and build ing permit revenues to reflect staff's updated development
projections __ _
Additional funding for minor street repairs
Reduction of storm drain maintenance contract based on Fiscal Year 2018/19 activity
Supplemental law enforcement services for Swallows Day Parade
Summer and special event trolley program, offset by reimbursement from the Grants Fund (for
Project V grant) and AQMD Fund
Increased rates for concrete, sidewalk, and curb and gutter maintenance per new agreement
Traffic co nsultant for new mandated vehicle miles traveled (VMT) program, partially offset by
fundi!)_g_!rom AQ~D Fund
Blight abatement activities
Increased rates for sidewalk, curb, and gutter repairs_per new agreement
One additional crossing guard
136,000
(128,000)
(64 ,000)
(S6:0oo)
44,000
40,000
(35,5oai-
29,ooo
29,000
(22,000)
20,000
(10,000)
(4,000)
iJ.3,000)
(587 ,500)
310,000
31,000
4 ,500
$
Expenditure
Adjustment
{39,773 )
(36,5501
{19,93?)
3,360
19,500
(306,055)
(22,100)
87,50Q
(69,000)
45,000
24,000
20,000
12,500
10,000
ATTACHMENT 1 -Page 1of8
City of San Juan Capistrano
FY 2019/20
PROPOSED BUDGET ADJUSTMENTS
1 ~
Revenu e Expenditure
Description Adjustment Adjustment
GENERAL FUND -01, {CONTINUED}
Maintenance for Sun Ranch drainage and access road (not included in Fiscal Year 2019/20 Adopted
Budget) 10,000 --Reduce consultant payment for ~D street light con_versi on p roject per actual agreement ---(S,a9si
Repaint and refinish playground structure at Los Rios Park --5 ,325
Red uc.iion"fo r City's share of 800 mhz contract costs per updated information from County of
Orange -------(s,o_oqi
Enhancements t o media n located at Del Obispo Street and tra in tracks 5,000
Demo lition of f ence at Sp orts Pa r k (V ia Positlva street) 5,000 -Increased ra t es for traffic signa l _m ainte~a~e costs p er new agreement --4,600
Reduction for City's share of fingerprinting costs per updated information from County of Orange (4,0 00)
Re duction in CapiSt rano Unified Sc hool District's share -of roller hockey facility revenue based on -
Fiscal Year 2019/20 revenue (2,000)
Adjustment to contract classes revenue based on staff's updat'e'd projections, offset by contractor
instructor pay m ents --------(2,000) --(1,300)
Othe r Adiustments:
Adjustment to internal service fund allocations for: general and property ins u ra nce, facility -
maintena nce, fleet m aintenance, and I nformation and techno logy costs -(71,365 )_
Adj ustment to water based on actual usage for last twelve month-;---37,545
Ad justment 't; e~tr icity costs ba 5;d on actu al usage for last twelve~onths --------(25,225)
Eliminate funding for parking citation books -(4,200)
Transfer C.ASP. program t ra i ni ng for staff t o new progra m fund -(3,700)
Adjust General Fund subsidy to Parking Maintenance Fund based on the Parking Maintenance
Fund's 2019/20 proposed budget 1,690 -Other revenue adjustments (2,0 0 0) (1,950)
TOTAL GEN ERAL FUND :Z,71'9 ,500 2,731,470
PARKING MAINTENANCE FUND
-mu.•''~' ---... -
Reallocation of staff time from other funds, offset by additional reimbursement from General Fund 1,690 1,745
TOTAL PARKING MAINTENANCE FUND 1,690 1,745
SACRALHOUSING ·AUTHORITY ADMINISTRATION FUND
Rental of Lower Rosan Ranch property
'"M -------____ 45;q_o l?_ -
----Investment interest based on Fiscal Year 2018/19 actual activity 800
Legal and engineering costs for the Lower Rosan Ranch and DowntoWri""properties, which will be
funded from future property sale proceeds 45,000
Reduction in reimbursement from Successor Agency to reflect staff time that will be funded from
future property sale proceeds --_(~4,4 10)_ ---
Realloca t ion o f staff time-from other funds, offset by additi'onal re imbursement from the
Successor Agency and Housing Authority 17,855 17,855
TOTAL SACRA/HOUSING AUTHORITY ADMINISTRATION FUND 29,245 62,855
FORFEITED CONSTRUCTION & DEMOLITION (C&D} BONDS FUND
Minor adjustment to staff allocation costs 5
TOT Al FORfETIEO C&D BONDS FUND . 5
CERTIFI ED ACCESS SPECIALIST PROGRAM (C .A.S .P.} FUND
C.A.S.P. program training 8,700
TOTAL C.A.S.P. PROGRAM FUND -8 ;700
ATTACHMENT 1 -Page 2 of 8
City of San Juan Capistrano
FY 2019/20
PROPOSED BUDGET ADJUSTMENTS
Revenue bpendlture
Desaiptlon Adjustment Adjustment
SYSTEMS DEVELOPMENT FUND
Reduce systems development tax and fee revenue to reflect staff's updated development
projections (the expected timing of the Distrito La Novi a and Tirador projects were delayed)
~-... (28?,000) -· ReC!Uc:e· Fiscal Year 2019/2'0"foncllng fo r Camino Capistrario Pavement Rehabilitation Projecf(CIP
19102) (450,000)
TOTAL SYSTEMS DEVELOPMENT FUND (285,000) (450,000)
PARK AND RECREATION FEES FUND
Developer contribution from Vermeulen project to be used to fund parks and open space capital
projects 2,000,000 -------
Reduce park and recreation developer impact fee revenue to reflect staff's updated development
projections (the expected timing of the Distrito La Navia and Tirador projects were delayed) (1,780,000) -Adjust investment income based on Fiscal Yea_r.2018/19 activity -(4,000)
Elim~r:ate Fiscal Year 2019/20 funding _f~r:_Citywide Playground UJ'.lgr_ades Project (CIP 9203) (120,000)
Eliminate Fiscal Year 2019/20 funding for 2.4 Acre Site Project (adjacent to Reata Park) (CIP 20201) (200,000)
l"OT Al.PARK MID RECREATION FEES FUND 216,000 (320,000)
DRAINAGE FEES FUND
Reduce drainage developer impact fee revenue to reflect staff's updated development projections
(the expected timing of the Distrito La Navia and Tirador projects were delayed) (34,000)
TOTAL DRAINAGE FEES FUND (34,000) -
AGRICULTURAL PRESERVATION FEES FUND
Reduce agricultural preservation fee revenue to reflect staff's updated development projections
(the expected timing of the Distrito La Navia and Tirador projects were delayed) (98,000) -Adjust investmenfincome based on FiscalYear 2018719 activity 5,000
TOTAL AGRlcutTURAL PRESERVATION FEES RJND (93,000) -
LANDSCAPE MAINTENANCE DISTRICT FUND
Adjustment to water based on actual usage for last twelve months 7,090
Refinish Mission Springs sign 4,000
Adjustment to landscape maintenance contract based on actual costs -(1,875)
TOTAL LANDSCAPE MAINTENANCE DISTRICT FUND -9,215
FARM OPERATIONS FUND
License agreement fee for Christmas Tree Farm (not included in Fiscal Year 2019/20 Adopted
Budget) 12,000 --Adjustment to water based on actual usage for last twelve months (5,410)
Other adjustments 1,000 (10)
TOTAL FARM OPERATIONS FUND 13,000 (5,420]
CDBG/HOME FUND
Adjust investment income based on Fiscal Year 2018/19 activity 1,095
Reallocation of staff time to other funds (630)
TOTAL COBG/HOME FUND 1,095 (630)
GAS TAX FUND
Revise Gas Tax revenues based on updated information obtained from the State in January 2019 32,000
Adjust investment income based on Fiscal Year 2018/19 activity 3,000
Increase Fiscal Year 2019/20 funding for Meredith Canyon Street Pavement Rehabilitation Project -----
(CIP 19101) 195,000 ----Funding for new project, Public RighT-of Way ADMmplementatlon Plan (CIP 20102) 25,000
TOTAL GAS TAX FUND 3S,000 220,000
ATTACHMENT 1 -Page 3 of 8
CCFP FUND
City of San Juan Capistrano
FY 2019/20
PROPOSED BUDGET ADJUSTMENTS
Description
Reduce CCFP revenue to reflect staff's updated development projections (the expected timing of
the Oistrito La Novia and Tirador projects were delayed)
Adjust investment income based ori FlscarVear 2618/19 a-ctivTty
TOTAL CCFP FUND
EASTERN OPEN SPACE FUND
Water for Riding Park (not included in Fiscal Vear 2019/20 Adopted Budget)
Adjustm~nt to water, for Re ata Pa r k ba s~-d ~n actua'f'usage for la st twelve morlths -~
Reallo cation of staff time from other funds
TOTAL EASTERN OPEN SPACE FUND
S.O.N.G.S. FUND
Redu ction in employee benefit charges
Additioriai funding for emergency preparedness supplies
TOTAL S.O.N.G.S. FUND
AQMDFUND
AB 2766 Fees
Investment Interest
Trolley Prog ram for Summe r a nd 'SPe ci'a l Events (tnatch or OCTA Measure M2 Grant)
Senior Mobi lity Transportation Program (match for OCTA Measure M2 Grant)
Mandated Vehicle Miles Traveled (VMT) Program
TOTAL AQMD FUND
MEASURE M TURNBACK FUND
Adjust Measure M sales ta x revenues based on Fiscal Vear 2018/19 activity
Increase Fiscal Vear 2019/20 funding for Meredith Canyon Street Pavement Rehabilitation Project
(CIP 19101)
TOTAL MEASURE M TURNBACK FUND
HOUSING IN-LIEU FEES FUND
Reduce housing in-lieu fees to reflect staff's updated developm ent projections (the expected
timing of the Distrito La Novi a and Tirador projects were delayed)
Adjust investment income based on Fiscal Year 2018/19 activity
TOT AL HOUSING IN-UEU FEES FUND
DEVELOPER DEPOSITS FUND
Reallocation of staff time to other funds, offset by reduction in funding from developers
TOT AL DEVELOPER DEPOSITS FUND
STREETS AND HIGHWAYS GRANTS FUND
Increase Project V funding for summer and special event trolley program, offset by reimbursement
to the General Fund where the program costs are recorded
TOTAL ST REETS AN D HIGHWAYS GRANTS FU ND
DEBT SERVICE FUND
Adjust investment income based on Fiscal Vear 2018/19 activity
TOTAL DEBT SERVtCE FUND
OPEN SPACE BONDS FUND
Adjust investment income based on Fiscal Year 2018/19 activity
TOTAL OPEN SPACE BONDS FUND
Revenue
Adjustment
(1,197,000)
10,000
(1,187,000)
Expenditure
Adjustment
---___ __!8,000
(1,000)
1,000
36,000
3ti,OOO
(300,000)
23,000
(277,000}
{19,800)
(19,800)
27 ,400
2 7,400
4,000
4,000
7,000
7,000
7,425
1,690
27,115
{355)
355
"3:6~0
1,000
4,500
9,100
5,000
5,000
{19 ,800)
(19,800)
27,400
27,400
ATTACHMENT 1 -Page 4 of 8
City of San Juan Capistrano
FY 2019/20
PROPOSED BUDGET ADJUSTMENTS
Description
COMMUNITY FACILITIES DISTRICT BONDS FUND
Adjust investment income based on Fiscal Year 2018/19 activity
TOTAL COMMUNITY FAOUTIES DISTillCT BONDS FUND
SUCCESSOR AGENCY NON-HOUSING BONDS FUND
Adjust investment income based on Fiscal Year 2018/19 activity
TOTAL SUCCESSOR AGENCY NON-HOUSING BONDS FUND
DOMESTIC WATER OPERATIONS FUND
Increase projected sales from 7,185 acre feet to 7,272 acre feet based on actual sales for twelve
month period through January 2019, offset by increased imported water costs
Reduce Groundwater Recovery Plant (GWRP) Production from 2,384 acre feet to 1,925 acre feet
and potable wel ~production, offset by increased imported water commodity charges
Increase funding to Domestic Water Capital Replacement Fund
Adjust investment income based on Fiscal Year 2018/19 activity
Adjust cust~i-ner latef~~-ch~~ge s b~sed on -;zt~~i Fiscal Y~a·; 2018/19 activltY --· .. --
Adjust meter installation fees and engineering plan check and inspection revenues to reflect staff's
updated development projections
L~-~~!.services associa~~-~!~ t~e U_t!~!!_e.~~eor~an~:at~on Proje:tJi~_cluding ~i:riployee issu ~sJ
Revise final loan repayment to Sewer Operations and Sewer Capital Replacement Funds based on
actual principal amount borrowed (final payoff is scheduled for December 31, 2019)
Adjustment to electricity costs based on actual usage for last twelve months
Adjust ~t to internal service fund allocations for: general ~nd Property i~sura·~~e, f~cility
maintenance, fleet maintenance, and information and technology costs
Reduce .chemicals budget based on Fiscal Year 2018/19 activity-and reduced GWRP prOifoctia·n --·
estimate for Fiscal Year 2019/20
"Eliminate funding f OrCci ntrai:ted administrative support because funding for Limited Term Office
Assistant is already included in the personnel _b_u _dg~e_t __ _
Reduce laboratory testing costs based on Fiscal Year 2018/19 activity
lnc!:_eased rates !or concrete~pairs per new agreement _
Reduce City's share of operations and maintenance costs for San Juan Basin Authority (SJBA) based
on SJBA'~r~os~budget for Fiscal Year 2019/20 _ _ _
Adjustment for: overtime, double-overtime and emergency call-out pay
Increase funding for vactor service agreement based on actual contract costs
Additional funding-for supplies for : pipes and fittings, GWRP, ari·a construdiori based "on ·aau·a1 -·
Fiscal Year 2018/19 costs
Personnel budget changes (including administrative overhead) due to the reallocation of staff time
to other funds and adjustments to health insurance and retirement costs as described in the
"Insurance and Benefits Fund" section -Reduce transfer to Water Debt Service Fund
Addition.? I fum~i ng fo! p~r_>~~-ne rep~irs based on actual Fiscal Year 201~19 activity
Additiona.!_funding for North Open Space Well repairs
Mandated school lead testing
Increase automobile allowance for employees in the Management and Professional Employees
Association per agreement approved by Oty Council on June 11, 2018
Other adjustments
TOTAL DOMESTIC WATER OPERATIONS FUND
Revenue
Adjustment
20,000
20,000
10,000
10,000
195,000
(114,750)
Expenditure
Adjustment
91,350
720,040
200,000
-3 5,000 ----14,000
(9,000)
120,000
(115,000)
88,000
56,445
(43,000)
(40,000)
(35,500}
26,000
(25,000) -24,100
22,450
20,385
(18,325)
(11,200)
7,650
4,000
4,000
480
1,461
110,250 1,098,336
ATTACHMENT 1 -Page 5 of 8
City of San Juan Capistrano
FY 2019/20
PROPOSED BUDGET ADJUSTMENTS
Revenue E1<penditure
Description Adjustment Adjustment
WATER DEBT SERVICE FUND
Adjustment to property taxes (increase primarily due to increased supplemental tax revenue) 8,200
Adjust investment income based on Fiscal Year 2018/19 activity 3,000
Offset revenue increases with reduction in transfer from Water Operations Fund (11,200)
TOTAL WATER DEBT SERVICE FUND . " .
DOMESTIC WATER CAPITAL REPLACEMENT FUND --Increase funding from Domestic Water Operations _Fund -,_ '~'~ ,,_ 200,000 -Adjust investment income based on Fiscal Year 2018/19 activity 4,000
Delay additional funding for 7605 Zo ne Pump Station Discharge Line Replacement Project (CIP
17802) until Fiscal Year 2020/21 ------(800,QOO) -----Fund a new project, Safety Access Stair and Platform System (CIP 20802) 120,000 -Increase funding for Well Facility Equipment Replacement Prog r am (CIP 17807) 85,000
TOTAL DOMESTIC WATER CAPITAL REPlACEMENT FUND 204,000 {595,000)
DOMESTIC WATER CAPITAL IMPROVEMENT FUND
Reduce domestic water-related developer impact fees to reflect staff's updated development
projections (756,000) --A~~t investment income based on Fiscal Year 2018/19 activity 15,000 --Increase funding f ;;-r San J;;;;n Hil ~Greens Cathodic-Protection System Project (CIP 17801) 165,000
Increase funding for Valve Insertion Program (CIP 17803) -100,000
TOTAL DOMESTIC WATER CAPITAL IMPROVEMENT fUND (741,000) 265,000
NON-POTABLE WATER CAPITAL IMPROVEMENT FUND
lncre ~se funding from Non-Po!?ble Water Operations F~d ---23 0,0 00
Reduce non-potable water-related developer impact fees to reflect staff's updated development
projections (61,000)
Adjust investment income based on Fi scal Year 2018/19 activity 1,000 -Delay funding for.Calle A;;~yo R;~ycled Pipeline Project (CIP 18G01) until Fiscal Year 2020/21 ---(324,000)
Increase funding for Annual Recycled Water Service Connections Project (CIP 20601) 146,000
Delay additional funding for Tra n;pas Canyon Recycled Water Reservoir Project (CIP 17601) until
Fiscal Year 2020/21 (S,000)
TOTAL NON.POTABLE WATER CAPITAL IMPRO\tEMENT FUND 170,000 (183,000)
NON-POTABLE WATER OPERATIONS FUND
Increase projected sates from 625 acre feet to 628 acre feet based on actual sales for twelve
month period through January 2019 5,000 -Adjust invest~ent inc;;-m; based on Fiscal Year 2018/19 activity 1,000
~just 111eter in ~tallatio r:!e es to reflect _stajf's updated development projections ---1,000
Increase funding to Non-Potable yvater Capital Improvement Fund 230,000
Ad j ust i mported water co st s to reflect Increased production from non-potable wells (128,090)
'Pe r sonnel budget changes (i ncluding administrative overhead) due to the reallocation of staff time
to other funds and adjustments to health insurance and retirement costs as described in the
"Insurance and Benefits Fund" section (32,694)
A~just ment to electricity co st s based on actual usage f ~ last twelve months_ ---22,400
Adjustment to internal service fund allocation for general and property insurance and allocation
from Water Operations Fund for customer service charges {1 ,655)
Adjust cross connection and backflow contracted services -(~00 )
Adjustment fors taff overti me ------500
TOTAL NON.POTABLE WATER OPERATIONS FUND 7,000 89,961
ATTACHMENT 1 -Page 6 of 8
City of San Juan Capistrano
FY 2019/20
PROPOSED BUDGET ADJUSTMENTS
Revel'!Ue expenditure
Desaiction Adlustment Adjustment
SEWER OPERATIONS FUND
Revise final loan repayment from the Water Operations Fund based on actual principal amount
borrowed (final payoff is scheduled for December 31, 2019) (57,500)
Ac!j_u,st !~vestm~~t. in_~ome based on_.£iscal Year 2018/19 activity -~.Q.29 -Reduce funding from reserves to Sewer Capital Improvement Fund (1,000,000)
Increase in City's share of operations and maintenance costs for South Orange County Wastewater
Authority (SOCWA) based on SOCWA's proposed budget for Fiscal Year 2019/20 -251,450
Eliminate funding for emergency generator.at the Avenida De La Vista lift station -(7s:ooo)
Personnel budget changes (including administrative overhead) due to the reallocation of staff time
from other funds and adjustments to health insurance and retirement costs as described in the
"Insurance and Benefits Fund" section 53 420
Other adjustments ·
~-w, .. ... -1,671
TOTAL SEWER OPERATIONS FUND (48,SOOI (768,459J
SEWER CAPITAL REPLACEMENT FUND
Reduce funding from Sewer Operations Fund reserves (1,000,000)
Adjust investment inco r::i e based on Fiscal Year 2018/19 activity ----5,000
Eliminate funding for New Hydraulic Capital Project No: 6 (CIP 7703) -(2,460,000)
Reallocate funding for City's share of SOCWA's PC 2 and PC 5 Rehabilitation Projects (CIP 7701)
based on updated information from SOCWA and reduced funding available in Sewer Capital
Improvement Fund 1,000,000
TOTAL S£W£'R CAPlif Al R£PlACEM£NT FUND (995,000} (1,460,000)
SEWER CAPITAL IMPROVEMENT FUND
Red uce sewer connection fees to reflect staff's updated devel opment projections (855,000)
To reflect loan repayment from Successor Agency per Recognized Payment Obligation Schedule
approved by the State Department of Finance 240,000
Revise final loan repayment from the Water Operations Fund based on actual principal amount
borr~e~ (final payoff is scheduled for December 31, 2019) --{57,500)
Adjust i nvestment income based on Fiscal Year 2018/19 activity (10,000)
Reallocate funding for City's share of SOCWA's PC 2 and PC 5 Rehabilitation Projects (CIP 7701)
based on updated information from SOCWA and reduced funding available in Sewer Capital
Improvement Fund (1,200,000)
TOTAL SEWER CAPITAL IMPROVEl'l/IENf FU ND (682,SOOJ {1,200,000)
INSURANCE AND BEN EFITS FUND
Reduction in health insurance costs based on actual 2019 rates increasing approximately 1.4%,
lower than the 7.5% that was projected in the Fiscal Year 2019/20 Adopted Budget (101,170) (101,170)
Actua l employer contributions for the Orange County Employees Retirement System (OCERS)
increased 5.9%, higher than the 4.5% that was projected in the Fiscal Year 2019/20 Adopted
Budget 40,000 40,000
Reduction in general liability insurance based on updated information received from California
Joint Powers Insurance Authority (23,000) (23,000)
Adjustments to: disability insurance, Medicare payroll taxes, bilingual pay, and employer
contributions to Independent Cities Management Association (ICMA) based on Fiscal Year 2018/19
actual activity 13,000 13,000
TOTAL INSURANCE AND BEN"fFITS FU ND (71,170} (71,170)
ATTACHMENT 1 -Page 7 of 8
City of San Juan Capistrano
FY 2019/20
PROPOSED BUDGET ADJUSTMENTS
Reven ue E><penditure
Oesaiption Adfustment Adj ustment
FACILITIES OPERATIONS FUND
Adjust charges to other funds due to the increased preposed budget for Fiscal Year 2019/20 -----6,160 --
Facilities 012.erations:
Adjustment to electricity costs based on actual usage for last twelve months 13,200
Pressure ;;;,ash, repair, and paint upper and lower exterior walls of the City Gym 12,200 -Increased facility mainte;:;a;;Ze contr~ed servi~s e_e ;;;e ;;;, agr~~ 10,000
Paint and replace carpet the City Clerk Department's work area 10,000 -----Ad justment to water for Reata Park based on actual usa.l?e for last twe lve months 7,425
Repair the HVAC unit in the Utilities Department trailer 5,800
ln [.ormotion Teclinolog_'L.: --Adjustment to annual _support and maintenance agreements to reflect updated cost estimates
based on Fiscal Year 2018/19 activity and discontinued software progra ms (52,745) -Other adj ustments ----~ 280
TO'T:Al FAOIUTIES OP.ERATION5 FUND 6,160 6,160
GRANO TOTAl-AU FU NDS $ (8 16_,630) $ (SU,417)
ATTACHMENT 1 -Page 8 of 8
RESOLUTION NO. 19-06-04-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO, CALIFORNIA AMENDING THE FISCAL YEAR 2019-20
OPERATING AND CAPITAL IMPROVEMENT BUDGET AND
AUTHORIZING EXPENDITURES AND APPROPRIATIONS RELATED
THERETO
WHEREAS, on June 11, 2018, the City Council passed Resolution No. 18-06-
11-03, adopting the Fiscal Years 2018-19 and 2019-20 Operating and Capital Improvement
Budgets; and,
WHEREAS, information not available at the time of budget adoption requires
adjustments to the Fiscal Year 2019-20 Operating and Capital Improvement Budget in
order to deliver the services expected by the City Council; and,
WHEREAS, the City Council has been presented with and has accepted and
approved the Amended Fiscal Year 2019-20 Operating and Capital Improvement Budget;
and,
WHEREAS, the City Council recognizes that the Proposed Fiscal Year 2019-
20 Operating and Capital Improvement Budget will require adjustments from time to time,
and accordingly, the City Manager is authorized to execute necessary transfers to carry out
the scope of services as approved.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of
San Juan Capistrano does hereby determine as follows:
1. That the Proposed Fiscal Year 2019-20 Operating and Capital
Improvement Budget as shown in Exhibit A attached hereto and incorporated by reference
herein is amended as follows:
Fiscal Year 2019-20
Transfers
Operating Capital Between
Expenditures Expenditures Funds (l) Total
General Fund $ 29,179,710 $ 889,000 $ 402,070 $ 30,470,780
Other Governmental Funds 5,365,520 2,613,040 695,500 8,674,060
Enterprise Funds 24,565,090 6,540,000 7,082,390 38,187,480
Internal Service Funds 8,787,520 152,000 8,939,520
Total All City Funds (z) $ 67,897,840 $ 10,194,040 $ 8,179,960 $ 86,271,840
11l Transfers between funds are balanced by fund types, general and governmental funds and enterprise funds .
<2 l Totals do not include the San Juan Capistrano Housing Authority (See Exhibit A to the Resolution).
1
ATTACHMENT 2
2. That total appropriations for each fund may only be increased or decreased
by the City Council by amending the budget, except as provided herein.
3. That the legal level of budgetary control is at the fund level. Budgets may
not legally be exceeded at the fund level without appropriate authorization by the City
Council. Budgeted amounts for individual classifications within a fund may be exceeded as
long as the total annual budget for that fund is not exceeded.
funds :
4. That the following controls are hereby placed on the transfers of budgeted
a. The City Manager may authorize transfers of funds from account to
account within any operating department.
b. The City Manager may authorize transfers of funds from department
to department within any fund up to $50,000.
c . The City Manager may delegate the authority to make budget
transfers and adjustments up to $10,000.
d. The City Manager may authorize budget adjustments involving
offsetting revenues and expenditures; the City Manager may authorize
increases in an appropriation for a specific purpose where the
appropriation is offset by unbudgeted revenues, which are designated for
said specific purpose.
5. That all appropriations for outstanding encumbrances and projects
currently underway and remaining unexpended at June 30, 2019, as approved by the City
Manager or his designee, are hereby appropriated to the Fiscal Year 2019-20 Operating
Budget.
PASSED, APPROVED, AND ADOPTED this 4th day of June 2019 .
BRIAN L. MARYOTT, MAYOR
ATTEST:
MARIA MORRIS , CITY CLERK
2
ATTACHMENT 2
-0
GENERAL FUNDS
General Fund
CITY OF SAN JUAN CAPISTRANO
FISCAL YEAR 2019/20
BUDGET SUMMARY-ALL FUNDS
Projected Projected
Beginning Operating CIP Transfers Transfers Ending
Balance Revenues Expenditures Expenditures In Out Balance
7/1/2019 (i) FY 2020 FY 2020 FY 2020 FY 2020 FY 2020 Adjustments 6/30/2020
Unassigned S 2,343,724 $ 28,941,000 $ (29,179,710) $ -$ 695,500 $ (402,070) $ $ 2,398,444
Reserve -Tuition Reimbursement Program 35,000 -35,000
Reserve -Cash Flow 5,000,000 5,000 ,000
Reserve -Economic Uncertainty 7,500,000 -7,500,000
Reserve -Contingency 1,000,000 1,000,000
Reserve -Consent Decree Water Quality Projects 3,000,000 (889,000) -2,111,000
Non-Spendable -Loans to Community Redevelopment Agency 85,808 --85,808
Total General Fund 15,964,532 31,941,000 (29,179,710) (889,000) 695,500 {402,070) -18,130,252
Parking Maintenance Fund
Assigned-Parking Maintenance 139,258 76,900 (168,195) -91,295 139,258
Successor Agency to the CRA/Housing
Authority Administration Fund
Unassigned 248,768 387,665 (352,525) -283,908
Farm Operations Fund
Assigned-Farm Operations 562,561 135,000 (86,180) --611,381
Eastern Open Space Fund
Assigned-Eastern Open Space Operations (l,773,680J 1,500,000 (1 ,645,360) -(1 919,040)
GENERAL FUNDS -TOTAL $ 15,141,439 $ 34,040,565 $ (31,431,970) $ (889,000) $ 786,795 $ (402,070) $ -$ 17,245,759
Special Revenue Funds
C&D Forfeited Bonds Fund
Restricted-Recycling Programs $ 974,260 $ 25,000 $ {15,180} $ $ $ $ $ 984,080
Road Maintenance and Rehabilitation Account (RMRA)
Restricted-Streets and Roads Capital Projects 504 608,000 (608,000) 504
Certified Access Specialist Program (C .A.S.P.)
Restricted-CASP Program 31,530 {8,700) -22,830
W rn Systems Development/Ord. 211 Fund
'g X Restricted-Streets and Roads Capital Projects 454,161 691,000 (450,000) 695,161
-"' I Park and Recreation Fund
S, OJ Restricted-Parks and Recreation Capital Projects 51,197 2,908,000 -2,959,197
-l ~ )> Drainage Fund
Restricted-Storm Drain Capital Projects (282,986) 20,000 (262,986)
Agricultural Preservation Fund
Restricted-Agricultural Preservation Projects 124,236 99,000 -223,236
Landscape Maintenance Fund
CITY OF SAN JUAN CAPISTRANO
FISCAL YEAR 2019 /20
BUDGETSUMMARY-ALLFUNDS
~aject~ P~ect~
Beginning Operating CIP Transfers Transfers Ending
Balance Revenues Expenditures Expenditures In Out Balance
7/1/2019 11' FY 2020 FY 2020 FY 2020 FY 2020 FY 2020 Adjustments 6/30/2020
Restricted-Landscape Maintenance 233 ,167 134,155 (169,900) -• 197,422
CDBG/HOME Fund
Restricted-Housing Rehabilitation for Low and 609,345 164,000 (129,295) 644,050
Moderate Income Housing Persons
Gas Tax Fund
Restricted-Street Rehab ilitat ion and Ma intenance 892 977,000 (627,320) (350,000) -572
CCFP Fund
Developer Contributions for Specific Projects 411,438 -411,438
Restricted-Streets and Roads Capital Projects 7,206,610 2,537 ,000 (181,040) 9,562,570
Total CCFP Fund 7,618,048 2,537,000 (181,040) 9,974,008
S.O.N.G .S. Fund
Restricted-Emergency Preparedness 52 193,600 (193,600) -52
AQMD Fund
Restricted-Mobile Source Emissions Reduction Programs 275,472 48,000 -(44,100) -279,372
Measure M Fund
Restricted-Streets and Roads Capital Projects 81,203 671,000 (746,680) -S,523
Housing In-Lieu Fee Fund
Restricted-Affordable Housing 5,310,956 23,000 5,333,956
Local Law Enforcement Grants Fund
Restricted-Law Enforcement 125,000 -(125,000)
Street and Highways Grant Fund
Restricted-Capital Projects 176,400 (176,400)
Developer Deposits Fund
Developer Contributions for Specific Projects 425 ,350 (425,350)
SPECIAL REVENUE FUNDS· TOTAL S 15,482,037 $ 9,825,505 S (942,025) $ (2,613,040) $ $ (695,500) $ $ 21,056,977
Debt Service Fund
-0 Debt Service Fund
~ rTI Restricted-Debt Service $ 3,263,104 $ 1,864,000 S (2,171,235) $ $ 310,775 $ $ -$ 3,266,644
(I) x
N I Capital Improvement Funds
S, IJJ Open Space Bond Projects Fund
VJ --i Restricted -Open Space Capital Projects $ lS,340 10,000 $ $ -$ -$ $ $ 25,340
0 )>
Community Facilities District Bonds Fund
CITY OF SAN JUAN CAPISTRANO
FISCAL YEAR 2019 /20
BUDGETSUMMARY-ALLFUNDS
P~ected P~ect~
Beginning Operating CIP Transfers Transfers Ending
Balance Revenues Expenditures Expenditures In Out Balance
7/1/2019 11) FY 2020 FY 2020 FY 2020 FY 2020 FY 2020 Adjustments 6/30/2020
Restricted -Community Facilities Projects S36,749 20,000 S56,749
Successor Agency Non-Housing Bonds Fund
Restricted -Downtown Projects 78,267 10,000 88,267
CAPITAL PROJECTS FUNDS -TOTAL $ 630,356 $ 40,000 $ $ $ $ $ -$ 670,356
GENERAL GOVERNMENTAL FUNDS -TOTAL $ 34,516,936 $ 45,n0,070 $ (34,545,230} $ (3,502.040) $ 1.097,570 $ (1,097,570) $ $ 42,239,736
ENTERPRISE FUNDS
Water Enterprise Funds
Domestic Water Operations Fund
Unrestricted Net Position-Available $ 1,367,5 10 $ 22,602,250 $ (16,311,770) $ $ $ (4,952,390) $ $ 2,705,600
Unrestricted Net Position-Drought Penalty Reserve 435,073 (83,600) 351,473
Unrestricted Net Position-Rate Stabilization Reserve 1,796,425 1,796,425
Unrestricted Net Position -Loan Due to Sewer Funds 1'1 (636,000) 636,000
Unrestricted Net Position -Pension & OPES Liabilities 1'1 (7,236,958) -(7 ,236,958)
Investment in Capital Assets 57,051,976 57,051.976
Total Domestic Water Operations Fund 52,778,026 22,602,2SO (16,395,370) (4,952,390) 636,000 54,668,516
Water Debt Service Fund
Unrestricted Net Position-Avail able 186,790 1,291,000 (4,243,390) 2,952,390 186,790
Unrestricted Net Position -Outstanding Long-Term Debt (25,069,013) (25 ,069,013)
Total Water Debt Service Fund (24,882,223) 1,291,000 (4,243,390) 2,952,390 (24,882,223)
Non-Potable Water Operations Fund
Unrestricted Net Position-Available 238 ,864 1,073,000 (442,420) -(630,000) 239,444
Unre stricted Net Position -Pension & OPES Liabilities 121 (317,388) (317,388)
Total Non-Potable Water Operations Fund (78,S24) 1,073,000 (442,420) {630,000) (77,944)
Domestic Water Capital Replacement Fund
Unrestricted Net Position-Available 2S6,696 12,000 (l,07S,OOO) 2,000,000 1,193,696
Domestic Water Capital Improvement Fund
Unrestricted Net Position-Available 1,088,353 749,000 (475,000) -1,362,3S3
J? Non-Potable Water Capital Improvement Fund '?5 ~ Unrestricted Net Assets-Available 786,216 183,000 [190,000) 630,000 1,409,216
VJ I WATER ENTERPRISE FUNDS -TOTAL $ 29,948,S44 $ 25,910,250 $ [21,081,180) $ (1,740,000) $ S,S82,390 $ (5,582,390) $ 636,000 $ 33,673,614
0 OJ
-+. _,
~ )>
Sewer Enterprise Funds
Sewer Enterprise Operations Fund
CITY OF SAN JUAN CAPISTRANO
FISCAL YEAR 2019 /20
BUDGETSUMMARY-ALLFUNDS
P~ect~ P~ect~
Beginning Operating CIP Transfers Transfers Ending
Balance Revenues Expenditures Expenditures In Out Balance
7 /1/2019 111 FY 2020 FY 2020 FY 2020 FY 2020 FY 2020 Adjustments 6/30/2020
Unrestricted Net Position-Available $ 6,394,053 $ 4,068,500 $ (3,483,910) $ $ $ (1,500,000) $ $ 5,478,643
Unrestricted Net Position-Loan to Water Operations Fund 131 318,000 --(318,000)
Unrestricted Net Position -Pension & OPEB Liabilities 1'1 (3,271,688) -_, [3,271,688)
Investment in Capital Assets 19,461,168 -19,461,168
Total Sewer Operations Fund 22 ,901,533 4,068,500 (3 ,483,910) (1,500,000) {318,000) 21,668,123
Sewer Capital Replacement Fund
Unrestricted Net Position-Available 1,007,298 15,000 (1,650,000) 1,500,000 872,298
Sewer Capital Improvement Fund
Unrestricted Net Position-Available 3,245,268 1,780,500 [3,150,000) 1,8 75 ,768
Unrestricted Net Position-Loan to Water Operations Fund 131 318,000 -(318,000)
Unrestricted Net Position-Loans to CRA 600,850 600 ,850
Total Sewer Capital Improvement Fund 4 ,164,118 1,780,500 (3 ,150,000) (318,000) 2,476,618
SEWER ENTERPRISE FUNDS -TOTAL $ 28,072,949 $ 5,864,000 $ (3,483,910) $ (4,800,000) $ 1,500,000 $ (1,500,000) $ (636,000) $ 25,017,039
SJC HOUSING AUTHORITY
Housing Authority Administration Fund
Unrestricted Net Position-Available $ 1,049,891 $ 24,100 $ [68,705) $ $ $ $ 1,005,286
Non-Spendable -Noncurrent Receivables & Prepaids 5,129,951 5,129,951
Investment in Capital Assets 4,506,8 35 4,506,835
Total Housing Authority Administration Fund 10,686,677 24,100 (68,705) -10,642,072
little Hollywood Rental Housing Fund
Unrestricted Net Position-Available 673,219 195,500 {230 ,955) -637,764
Successor Agency Housing Bonds Fund
Restricted Net Assets-Affordable Housing Projects 51868,903 30,000 --5,898,903
SJC HOUSING AUTHORITY-TOTAL $ 17,228,799 $ 249,600 $ (299,660) $ $ -$ S $ 17,178,739
~ m ENTERPRISE FUNDS -TOTAL $ 75,250,292 $ 32,023,85()_ $ (24,864,750) _$ __ {6,540,000) $ 7,082,390 S (7,082,390) $ $ 75,869,392
<O >< CD I
~-
0 al
---i ~ )>
'"O
w rn cg ><
CJ'1 I
0 OJ --w -i
0 )>
INTERNAL SERVICE FUNDS
Insurance and Benefits Fund
Unrestricted Net Assets-Available
Noncurrent Assets-Prepaids & Deferred Outflows
Total Insurance and Benefits Fund
Facilities Operations Fund
Unrestricted Net Position-Available 141
Unrestricted Net Position-Pension & OPEB Liabilities 12>
Investment in Capital Assets
Total Facilities Operations Fund
INTERNAL SERVICE FUNDS -TOTAL
ALL FUNDS -TOTAL
Less:
San Juan Capistrano Housing Authority
Total Appropriations Approved by City Council
Notes:
$
$
Projected
Beginning
Balance
7 /1/2019 (l)
CITY OF SAN JUAN CAPISTRANO
FISCAL YEAR 2019 /20
BUDGET SUMMARY-ALL FUNDS
Operating CIP
Revenues Expenditures Expenditures
FY 2020 FY 2020 FY 2020
(556,299) $ 6,194,000 $ (6,194,000) $
3,449,618
2,893,319 6,194,000 (6,194,000)
1,653,169 2,390,415 (2,593,520) (152,000)
(635,297)
2,650,113
3,667,985 2,390,415 (2,593,520) (152,000)
s
6,t6J,304 $ 8,5841415 . $ _ (8,787,S~Oj $ (152,000) $
Transfers
In
FY 2020
$
$
Transfers
Out
FY 2020 Adjustments
$
$
$ 11§,328,53~ $ 86,378,335 . $ 168,197,~00J $ (10,194,0401 $ 8,179,96!_$ .18,179,960) $
299,660
$ (67,897,840) $ (10,194,040) $ (8,179,960)
111 Beginning fund balances are based on projected balances as of June 30, 2019, as r~ported in the City's Third Quarter Financial Report to the City Council on May 21, 2019.
$
$
$
Projected
Ending
Balance
6/30/2020
(556,299)
3,449,618
2,893,319
1,298,064
(635,297)
2,650,113
3,312,880
6,206,199
124,315,327
12
> The City is required by the Governmental Accounting Standards Board (GASB) to report the unfunded actuarial liability (UAAL) for its pension plans (GASB Statement No. 68) and other-post employment benefits
(GASB Statement No . 75). The City's General Fund (and other governmental funds) do not reflect such an amount in th is schedule because this accounting and reporting standard is only applicable to the City's
Enterprise and Internal Service Funds. The City's governmental funds' (i.e . General Fund , Capital Projects Funds, and Special Revenue Funds) portion of the City's total UUAL as of December 31, 2017 (date of
actuarial valuation) was approximately $18.9 m il lion for the City's pension plans and was approximately $2.4 million for the other post employment benefit p lan as of July 1, 2016 (date of the actuarial valuation).
1'1 The adjustments reflected for the Water Operations Fund, Sewer Operations Fund, and Sewer Capital Improvement Fund reflect the $636,000 in loan repayments expected per the loan repayment schedule
approved by the City Council on June 21, 2016. The loan is expected to be repaid in full by December 31, 2019.
l•l Available reserves for capital replacement.
CITY OF SAN JUAN CAPISTRANO
GENERAL FUND SUMMARY
FISCAL YEAR 2019/20 UPDATE
ADOPTED AMENDED ADOPTED PROPOSED PROPOSED
Description 2018/19 2018/19 (l) 2019/20 ADJUSTMENTS 2019/20
PROJECTED REVENUE & OTHER SOURCES
Property Taxes $ 10,755,000 $ 10,755,000 $ 11,265,000 $ (64,000) $ 11,201,000
Sales Tax 8,681,000 8,799,000 8,846,000 (128,000) 8,718,000
Other Taxes 1,393,000 1,434,000 1,467,000 80,000 1,547,000
Franchise Fees 1,341,000 1,341,000 1,3 55,000 44,000 1,399,000
Other Agencies 867,000 919,990 869,000 20,000 889,000
Licenses, Fees and Permits 2,123,000 2,050,015 3,066,000 (281,500) 2,784,500
Current Services 829,000 829,000 855,000 (13,000) 842,000
Use of Money & Property 467,000 523,090 471,000 4,500 475,500
Fines & Forfeitures 982,000 1,012,000 990,000 32,000 1,022,000
Other Revenue 74,000 74,000 74,000 (11,000) 63,000
Landfill agreement funds (nonrecurring) 3,000,000 3,000,000 3,000,000
Transfers In 691,000 848,733 659,000 36,500 695,SOO
ESTIMATED REVENUE-TOTAL 28,203,000 31,585,828 29,917,000 2,719,500 32,636;500
ESTIMATED EXPENDITURES & OTHER USES
General Government 4,687,965 5,073,965 4,888,805 (42,545) 4,846,260
Public Safety 11,046,889 11,146,489 11,571,740 32,730 11,604,470
Community Services 2,214,765 2,252,265 2,267,340 (60,160) 2,207,180
Development Services 2,536,480 2,680,530 2,684,770 (73,260) 2,611,510
Public Works/Utilities 7,234,025 7,931,028 8,037,275 (126,985) 7,910,290
Other 3,669,000
Transfers Out 383,950 397,950 400,380 890,690 1,291,070
Reserved for consent decree water quality projects 2,111,000 2,111,000
ESTll\llATED EXPENDITURES-TOTAL 28,104,074 33,151,227 29,850,310 2,731,470 32,581,780
REVENUE OVER/(UNDER) EXPENDITURES $ 98,926 $ (1,565,399) $ 66,690 $ (11,970) $ 54,720
111 Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019.
EXHIBIT A
Page 6 of 30
CITY OF SAN JUAN CAPISTRANO
GENE RAL FUND -E ST IMATED REVENUE DETAIL BY TYPE
Description
PROPERTY TAXES
Secured
Redevelopment Property Tax Trust Fund
Unsecured
Prior Years
Supplemental Roll
Homeowners Exemption Tax
Penalties & Impounds
AB1389 Pass Through From CRA
In-Lieu Vehicle License Fee
PROPERTY TAXES -TOTAL
SALES TAXES
Sales Tax
'SALES TAXES -TOTAL
OTHER TAXES
Real Property Transfer Tax
Business License Taxes
Transient Occ. Tax -10%
OTHER TAXES -TOTAL
FRANCHISE FEES
Electrical Franchise
Gas Franchise
Cable TV Franchise
Refuse Franchise
Video Franchise Fee
FRANCHISE FEES-TOTAL
OTHER AGENCIES
Landfill Mitigation Contribution
Vehicle License Fees
Grants
Landfill Importation Fees
OTHER AGENCIES -TOTAL
LICENSES, FEES, PERMITS
Planning-Other Permits
Engineering-Plan Check
Engineering-Map Check
Engi neering-lnspection
Other Engineering Fees
Geo/Soils Review
Encroachment Permits
Building Permits
Grading Permits
Mechanical Permits
Plumbing Permits
Electrical Permits
Mobile Home Park Op Permits
Building Plan Check
N PDES Permit Fees
NPDES Business Insp e ction Fee
Commercial Filming/Photography Permits
Code Violation Citations
Student Mitigation Fee
Community Services-Contract Classes
Community Services-Youth Sports
Community Services-Special Events
Neighborhood Parking Program
Weed Abatement
LICENSES, FEES, PERMITS -TOTAL
FISCAL YEAR 2019/20 U PDAT E
ADOPTED AMENDED ADOPTED
2018/19 2018/19 (l) 2019/20
$ 6,544,000 $ 6,544,000 $ 6,871,000
159,000 159,000 159,000
191,000 191,000 191,000
47,000 47,000 47,000
48,000 48,000 48,000
35,000 35,000 35,000
14,000 14,000 14,000
54,000 54,000 54,000
3,663,000 3 ,663,000 3,846,000
10,755,000 10,755,000 11,265,000
8,681,000 8,799,000 8,846,000
8,681,000 8,799,000 8,846,000
275,000 275,000 331,000
217,000 217,000 217,000
901,000 942,000 919,000
1,393,000 1,434,000 1,467,000
403,000 403,000 407,000
80,000 80,000 81,000
505,000 505,000 510,000
289,000 289,000 292,000
64,000 64,000 65,000
1,341,000 1,341,000 1,355,000
580,000 780,000 580,000
15,000 15,000 15,000
72,000 124,990 74,000
200,000 200,000
867,000 919,990 869,000
35,000 70,000 35,000
189,000 189,000 869,000
32,000 99,000
46,000 18,000 256,000
3,000 3,000 3,000
30,000 30,000 20,000
50,000 50,000 50,000
790,000 684,000 781,000
55,000 70,000 35,000
30,000 45,000 28,000
66,000 74,000 55,000
53,000 63,000 40,000
14,000 14,000 14,000
200,000 207,000 253,000
63,000 63,000 55,000
41,000 41,000 41,000
1,000 1,000 1,000
27,000 27,000 27,000
177,000 177,000 181,000
138,000 141,015 138,000
15,000 15,000 15,000
49,000 49,000 51,000
12,000 12,000 . 12,000
7,000 7,000 7,000
2,123,000 2,050,015 3,066,000
PROPOSED PROPOSED
ADJUSTMENTS 2019/20
$ (33,000) $ 6,838,000
(27,000) 132,000
191,000
(1,000) 46,000
8,000 56,000
(1,000) 34,000
(1,000) 13,000
9,000 63,000
(18,000) 3,828,000
(64,000) 11,201,000
(128,000) 8,718,000
(128,000} 8,718,000
(56,000) 275,000
217,000
13 6,000 1,055,000
80,000 1,547,000
34,000 441,000
1,000 82,000
5,000 515,000
3,000 295,000
1,000 66,000
44,000 1,399,000
220;000 800,000
15,000
74,000
(200,00 0 )
20,000 889,000
35,000 70,000
(394,000) 475,000
(80,000) 19,000
(113,000) 143,000
(500) 2,500
10,000 30,000
50,000
121,000 902,000
35,000 70,000
17,000 45,000
19,000 74,000
23,000 63,000
14,000
37,000 290,000
8,000 63,000
41,000
{1,000)
4,000 31,000
1,000 182,000
(2,000) 136,000
15,000
(1,000) 50,000
12,000
7,000
(281,500) 2,784,SOO
EXHIBIT A
Page 7 of 30
CITY OF SAN JUAN CAPISTRANO
GENERAL FUND -ESTIMATED REVENUE DETAIL BY TYPE
FISCAL YEAR 2019/20 UPDATE
ADOPTED AMENDED
Description 2018/19 2018/19 (l)
ADOPTED
2019/20
PROPOSED
ADJUSTMENTS
CURRENT SERVICES
Charges to SACRA
Charges to Other Funds
Charges to Water/Sewer Enterprise
Dev. Deposits
CIP Admin
CURRENT SERVICES-TOTAL
USE OF MONEY/PROPERTY
Community Building Rental
Park Rentals
Community Garden Rental
Community Center Rental
Gymnasium Rental
Comm Svcs-Athletics/Rents
Commercial Property Rental
Investment Interest
USE OF MONEY/PROPERTY-TOTAL
FINES/FORFEITURES
Parking Fines
Vehicle Code Fines
Other Fines and Forfeitures
Public Safety (sales tax)
iflNES/FORFEITURES -TOTAL
OTHER REVENUE
Other Reimbursements
Mandated Cost Reimbursements
Miscellaneous Revenue
CERT Revenue
Loan Repayments
OTHER REVENUE-TOTAL
LANDFILL AGREEMENT FUNDS (NON-RECURRING)
Landfill Equity Payments
'LANDFILL AGREEMENT FUNDS (NON-RECURRING)
TRANSFERS IN
Gas Tax Fund
AQMD Fund
Law Enforcement Grants Fund
Street and Highway Grants Fund
TRANSFERS IN -TOTAL
20,000
154,000
408,000
142,000
105,000
829.,000
54,000
20,000
7,000
68,000
65,000
80,000
113,000
60,000
467,000
548,000
160,000
5,000
269,000
982,000
38,000
20,000
5,000
1,000
10,000
74,000
350,000
39,000
125,000
177,000
691000
20,000
154,000
408,000
142,000
105,000
829,000
60,000
27,000
7,000
81,500
45,000
60,000
182,590
60,000
523,090
548,000
160,000
5,000
299,000
1,0iZ,000
38,000
20,000
5,000
1,000
10,000
74,000
3,000,000
3,000,000
350,000
82,673
150,000
266,060
848 733
21,000
156,000
422,000
149,000
107,000
855,000
s-5 ,000
21,000
7,000
68,000
65,000
80,000
115,000
60,000
471,000
553,000
160,000
5 ,000
272,000
990,000
38,000
20,000
5,000
1,000
10,000
74,000
350,000
35,000
125,000
149,000
659 000
6,000
(1,000)
(18,000)
(13,000)
5,000
6,000
6,500
(34,000)
(20,000)
1,000
40,000
4,500
29,000
(22 ,000)
(4,000)
29,000
32,000
(1,000)
(10,000)
(11,000)
3,000,000
3,000,000
9,100
27,400
36,500
PROPOSED
2019/20
21,000
162,000
421,000
149,000
89,000
842,000
60,000
27,000
7,000
74,500
31,000
60,000
116,000
100,000
475,500
582,000
138,000
1,000
301,000
1,022,000
38,000
20,000
5,000
63,000
3,000,000
3,000,000
350,000
44,100
125,000
176,400
695 500
TOTAL GENERALFUND REVENUE $ 28,203,000 $ 31,585,828 $ 29,917,000 $ 2,719,500 $ 32,636,500
111 Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019.
EXHIBIT A
Page 8 of 30
CITY OF SAN JUAN CAPISTRANO
GENERAL FUND -EXPENDITURE DETAIL BY DIVISION
FISCAL YEAR 2019/20 UPDATE
ADOPTED AMENDED ADOPTED PROPOSED PROPOSED
Description 2018/19 2018/19 (ll 2019/20 ADJUSTMENTS 2019/20
GENERAL GOVERNMENT
Legislation:
City Council $ 143,285 $ 143,285 $ 146,460 $ 3,565 $ 150,025
City Manager:
Administration 1,249,135 1,242,820 1,317,305 (19,980) 1,297,325
Human Resources 421,550 435,865 457,750 (25,965) 431,785
City Attorney
City Attorney 706,000 706,000 706,000 706,000
Litigation 371,000
City Clerk 609,525 610,030 623,795 11,200 634,995
Finance:
Administration 682,095 682,295 726,840 (15,260) 711,580
Finance 674,150 693,310 699,675 4,705 704,380
Business License 111,680 96,320 117,110 (1,575) 115,535
Customer Service 90,545 93040 93,870 765 94,6~5
GENERAL GOVERNMENT -TOTAL 4',687,965 5,013~ -4,888,805 (4'2,545) '4,846,ui()
PUBLIC SAFETY
O.C.S.D . Contract 10,265,295 10,2B8,295 10,778,570 10,778,570
Other O.C.S .D. Costs 192,835 234,835 188,475 25,275 213,750
Public Safety Contract Services 569,554 569,554 585,405 7,500 592,905
A.S.A.P. Volunteer Program 12,900 12,900 12,900 12,900
Emerge;icy Preparedness 6,305 40,905 6,390 (45) 6,345
tPUBUCSAFElY-TOTAL U ,046,889 11,146;4'89 ~,571,7'40 n,730 ll"'694,'470
COMMUNITY SERVICES
Administration 722,425 720,585 770,795 (74,155) 696,640
Facility Operations 291,080 326,030 273,705 4,445 278,150
Special Events 220,825 220,100 226,540 (2,775) 223,765
Class Programs 104,960 109,010 105,720 (1,280) 104,440
Athletic Programs 94,865 88,220 99,270 (1,510) 97,760
Youth Programs 110,785 110,785 112,460 (455) 112,005
Senior Citizens Services 129,555 129,570 135,130 1,260 136,390
Community Center Operations 371,340 376,295 371,935 230 372,165
Gymnasium Op era tions 168,930 171,670 171,785 14 <080 185,865
COMMUNllY SEf!VICES-TOTAl 2,214,765 Z,2Ji"l,340 (60,160) 2,.207.UO
DEVELOPMENT SERVICES
Administration 801,150 801,150 858,335 (15,175) 843,160
Planning Services 613,845 765,845 667,865 (11,885) 655,980
Building Permit Services 422,020 423,570 402,790 (17,025) 385,765
Environmental Permit Services 15,990 15,990 17,160 (1,625) 15,535
Building Inspection 357,575 348,075 397,130 (28,090) 369,040
Code Enforcement 325 900 325 900 341,490 540 34 ~,030
DEVEl.DPMENT SEAVICES-TOTAL 2,536,480 2,680,$10 2,684,no (73,200) ~6U,S10
PUBLIC WORKS/UTILITIES
Administration 1,071,850 1,102,960 1,151,530 68,130 1,219,660
Planning Services 17,880 17,880
Engineering:
General Engineering 607,395 745,128 595,315 9,080 604,395
Development Engineering 446,235 548,355 1,011,820 (216,195) 795,625
Traffic Engineering 311,935 311,935 316,860 (4,910) 311,950
Engineering Inspection Services 81,990 79,240 85,400 (1,115) 84,285
Maintenance and Support:
Building/Facility Operations 14,675 19,505 14,815 14,815
General Maintenance 710,980 782,735 695,100 (14,340) 680,760
Special Event Support 84,480 85,770 84,895 10 84,905
Weed Abatement 136,800 136,800 137,040 137,040
Streets and Traffic:
Street Maintenance 353,565 470,565 358,025 95,045 453,070
Street Cleaning 138,705 138,705 138,705 138,705
Street Lighting 153,560 202,020 153,560 (5,895) 147,665
Traffic Control 156,680 203,060 158,725 5,045 163,770
Storm and Winter Preparation 69,000 69,000 69,000 69,000
EXHIBIT A
Page 9 of 30
CITY OF SAN JUAN CAPISTRANO
GENERAL FUND -EXPENDITURE DETAIL BY DIVISION
FISCAL YEAR 2019/20 UPDATE
ADOPTED AMENDED ADOPTED PROPOSED PROPOSED
Description 2018/19 2018/19 (l) 2019/20 ADJUSTMENTS 2019/20
Parks and Open Space:
Parkways, Medians, & Landscaping 360,280 360,280 394,495 7,935 402,430
Park Maintenance 945,425 981,590 943,360 38,035 981,395
Open Space Maintenance 54,010 106,010 55,250 2,000 57,2SO
Trail Maintenance 147,315 163,315 147,570 147,570
Parking Maintenance 26,565 26,56S 27,300 27,300
Sports Park Maintenance 497,285 512,285 504,605 (22,610) 481,995
Environmental:
NPDES/Water Quality 383,210 421,210 438,930 (19,235) 419,695
Trash/Recycling 52,845 160,960 54,335 (1,600) 52,735
Storm Drain Maintenance:
General Services 44,86S 17,030 47,055 (33,095) 13,960
Maintenance Services 379,945 279,945 448,715 (51,890) 396,825
Emergency Response 4 ,430 6,060 4 870 740 5,610
PUBLIC W°"l<S/UTIUTIES-'TOTAl 1~ 7,931.,028 8~7,275 (U6,98S) 7;91~
OTHER
Settlement Payments 2,900,000
Land 764,000
Interest on Loan from CCFP Fund to M easure M Fur 5,000
OTHER-TOTAL 3,669,000
TRANSFERS OlJT
To Debt Service 308,315 308,315 310,775 310,775
To Capital Projects 889,000 889,000
To Parking Maintenance Fund 75,635 85,635 89,605 1,690 91,295
To Measure M Fund 4,000
TftANSFERS OUT -TOTAL 383~ ..,/GIJ,o 400~ %LwMA7.1 MiNi;t.114wt.tWiN·fii@liBZ·iZ.t WJ:iiltKW WWU41·S#
111 Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019.
EXHIBIT A
Page 10 of 30
CITY OF SAN JUAN CAPISTRANO
PARKING MAINTENANCE FUND
FISCAL YEAR 2019/20 UPDATE
Description
ADOPTED
2018/19
AMENDED
2018/19 (1)
ADOPTED
2019/20
PROJECTED REVENUE AND OTHER SOURCES
Parking Fees
Parking Permits-Commuter
Parking Permits-Employees
Transfers In -General Fund
TOTAL· PROJECTED -REVENUES AND OTHEft SOURtfS
ESTIMATED EXPENDITURES AND OTHER USES
Personnel Charges
Merchant Credit Card Fees
Utilities
Facility Lease Payments
Network Computer Services
Parking Permit Supplies
Maintenance Supplies
Grounds Maintenance
Other Maintenance
Administrative Overhead
TotAI.-ESTIMATED EXPENDITURES ANDOlHEA usEs
$ 66,000
6,300
3,600
75,635
151,535
21,455
6,300
14,780
60,000
3,250
3,000
600
11,740
26,720
3,690
t51,53S
$ 66,000 $ 67,000
6,300 6,300
3,600 3,600
85,635 89,605
161,53S 166,505
31,455 22,525
6,300 6,200
14,780 14,840
60,000 60,000
3,250 3,250
3,000 3,000
600 600
11,740 12,510
46,720 39,720
3,690 3,805
181,S35 166,450
PROPOSED PROPOSED
ADJUSTMENTS 2019/20
$ $ 67,000
6,300
3,600
11690 91,295
1,690 168,195
1,445 23,970
6,200
14,840
60,000
3,250
3,000
600
12,510
39,720
4,105
168,195
C RRENT YEAR REVENUE OVER (UNDER ) EXPENDITURES S • S (20,000) S SS S (SS) S •
(1) Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019.
EXHIBIT A
Page 11 of 30
CITY OF SAN JUAN CAPISTRANO
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY/
HOUSING AUTHORITY ADMINISTRATION FUND
FISCAL YEAR 2019/20 UPDATE
ADOPTED AMENDED ADOPTED PROPOSED
Description
PROJECTED REVENUE AND OTHER SOURCES
Reimbursement from Successor Agency
Reimbursement from Housing Authority
Commercial Property Rental
Investment Interest
Other Reimbursements
TOTAL -PROJ£CT£0 REVENUES ANO OTHER SOURCES
ESTIMATED EXPENDITURES AND OTHER USES
Successor Agency Administration Costs:
City Manager
City Attorney
City Clerk
Finance
Public Works
Housing Authority Administration Costs:
Finance
Development Services
TeTA1-ESTIMA"IU> EXPEN'DmJREs AND OTHER USEs
$
2018/19
219,070
58,250
78,000
1,200
3S6,52-0
112,115
9,520
96,830
7,825
50,640
276,930
2018/19 (1)
$ 219,070 $
58,250
78,000
1,200
7,000
363,520
139,185
40,000
9,520
96,830
3,000
7,825
50,640
347,000
2019/20
220,555
58,665
78,000
1,200
358,420
117,405
9,965
101,425
8,115
52,760
ADJUSTMENTS
$ (35,290)
18,735
45,000
800
"29,245
1,005
35,000
270
55
10,000
10
16,515
289~.=670~~~~~6Z;855
PROPOSED
$
2019/20
185,265
77,400
123,000
2,000
387,665
118,410
35,000
10,235
101,480
10,000
8,125
69,275
352.525
CURRENT YEAR REVENUE OVER (UNDER} EXPENDITURES $ 79,590 $ 16,520 $ 68,750 S 133,610) $ 35,140
(1) Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019.
EXHIBIT A
Page 12 of 30
CITY OF SAN JUAN CAPISTRANO
FARM OPERATIONS FUND
FISCAL YEAR 2019/20 UPDATE
ADOPTED AMENDED ADOPTED
Description 2018/19 2018/19 (1) 2019/20
PROJECTED REVENUE AND OTHER SOURCES
Commercial Property Rental $ 90,500 $ 90,500 $ 97,000
Farm Lease Revenue 25,000 25,000 25,000
TOTAL -l>ROJECTEIJ REV£NUES AND OTHER SOURCES us,soo 115,500 122,oOO
ESTIMATED EXPENDITURES AND OTHER USES
Personnel Charges 440 440 470
Utilities 6,910 6,910 6,910
Grounds Maintenance 36,265 36,265 750
Other Maintenance & Repairs 13,365 13,365 83,365
Administrative Overhead 100 100 105
T<rrAL -ESTIMATED EXP.ENDITIJRES AND OTHER USES 57,0SO 57,080 91,600
PROPOS£D PROPOSED
ADJUSTMENTS 2019/20
$ 13,000 $ 110,000
25,000
13 000 135,000
605 1,075
(5,410) 1,500
750
(615) 82,750
105
(5,420) 86,180
CURRENT YEAR REVENUE OVER (UNDER) EXPENDITURES $ 58,420 $ 58,420 $ 30.400 $ 18,420 $ 48,820
(1) Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019.
EXHIBIT A
Page 13 of 30
CITY OF SAN JUAN CAPISTRANO
EASTERN OPEN SPACE FUND
FISCAL YEAR 2019/20 UPDATE
Description
PROJECTED REVENUE AND OTHER SOURCES
Riding Park Revenue
Insurance Reimbursement for Coastkeeper Litigation
Other Reimbursements
TOT Al -PROJECTED REVENUES A:ND OTHER SOURCES
ESTIMATED EXPENDITURES AND OTHER USES
Personnel Charges
Legal Services :
General
Litigation
Riding Park Management Agreement:
Base Management Fee
Event Management Fee
Other Riding Park Expenditures
Facility Lease Pursuant to Settlement Agreement
Professional & Contract Services
Grounds & Building Maintenance
Other Maintenance & Repairs
Utilities
Supplies & Materials
Transfers Out :
Transfer Out to Capital Projects Fund
TOTAL-ESTIMATED EXPENDf'fURES AND OTHER USES
ADOPTED
2018/19
$ 1,500,000
1,500,000
85,290
25,000
750,000
235,000
260,000
36,000
20,000
161,325
28,000
20,575
5,000
1,626,190
AMENDED ADOPTED
2018/19 (1) 2019/20
$ 1,500,0dO $ 1,500,000
605,000
3,095
2,108,095 1,S00,000
85,290 89,285
25,000 10,000
605,000
750,000 750,000
235,000 235,000
260,000 260,000
36,000 36,000
78,000 18,000
186,325 166,385
33,820 28,000
43,575 20,575
5,000 5,000
36,950
2,,379,960 1.618:,245
PROPOSED PROPOSED
ADJUSTMENTS 2019/20
$ $ 1,500,000
1,500,000
1,690 90,975
10,000
750,000
235,000
260,000
36,000
18,000
166,385
28,000
25,425 46,000
5,000
l.1,115 1,645,360
CURRENT YEAR REVENUE OVER (UNDER) EXPENDITURES $ (126,190) $ {271,865) $ (118,245) $ (27,115) $ (145,360)
(1) Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019.
EXHIBIT A
Page 14 of 30
CITY OF SAN JUAN CAPISTRANO
FORFEITED CONSTRUCTION & DEMOLITION (C&D) BONDS
FISCAL YEAR 2019/20 UPDATE
ADOPTED AMENDED ADOPTED PROPOSED
Description 2018/19 2018/19 (1) 2019/20 ADJUSTMENTS
PROJECTED REVENUE AND OTHER SOURCES
Forfeited C&D Bonds $ 25,000 $ 27,555 $ 25,000 $
TOTAL--PROJECTED REVENUES AND GTHER SOURCES 25,000 27 SSS 25,000
ESTIMATED EXPENDITURES AND OTHER USES
Personnel Charges 7,940 16,105 8,340 5
Printing and Supplies 2,555
Contract Services for Records Destruction 4,995 4,995 4,995
Administrative Overhead 1,785 3,620 1,840
TOTAL -ESTIMATEO .EXPENOlruRES AND OTHER USES 14,720 27;1.75 15,175 5
PROPOSED
2019/20
$ 25,000
25,000
8,345
4,995
1,840
15,180
CURRENT YEAR REVENUE OVER (UNDER) EXPENDITURES 10,280 280 $ 9,825 $ (5) $ 9,820
(1) Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019.
EXHIBIT A
Page 15 of 30
CITY OF SAN JUAN CAPISTRANO
CERTIFIED ACCESS SPECIALIST PROGRAM
FISCAL YEAR 2019/20 UPDATE
Description
PROJECTED REVENUE AND OTHER SOURCES
SB1186 FEES
TOTAL -PRO JECTED REVEN UES AND OTHER SOURCES
ESTIMATED EXPENDITURES AND OTHER USES
Contract Services
Special Certification Costs
Mileage Reimbursement
TOTAi. EsTI MAi'£0 £><PENDITURES AND OTHER USES
$
ADOPTED
2018/19
AMENDED
2018/19 (1)
$ 35,100 $
3S,100
3,470
100
3,510
ADOPTED
2019/20
PROPOSED PROPOSED
ADJUSTMENTS 2019/20
$
5,000
3,700
8,700
$
5,000
3,700
8,700
CURRENT YEAR REVENUE OVER (UNDER) EXPENDITURES S -S 31,530 $ -$ (8,700) S (8,700)
(1) Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019.
EXHIBIT A
Page 16 of 30
CITY OF SAN JUAN CAPISTRANO
LANDSCAPE MAINTENANCE DISTRICT FUND
FISCAL YEAR 2019/20 UPDATE
ADOPTED AMENDED ADOPTED
Description 2018/19 2018/19 (1) 2019/20
PROJECTED REVENUE AND OTHER SOURCES
Current Assessments $ 134,155 $ 134,155 $ 134,155
TOTAL -PROJECTED REVENUES ANO OTHER SOURCES 134,155 134,155 134,1.SS
ESTIMATED EXPENDITURES AND OTHER USES
Personnel Charges 12,680 12,680 13,310
Utilities 46,930 46,930 47,000
Grounds and Other Maintenance 90,540 90,540 76,795
Materials, Services & Repairs 19,880 19,880 19,880
Administrative Overhead 3,590 3,590 3,700
TOTAL -ESTIMATED ~PENDITURES AND OTHER USES 1.73,.620 173,6l0 160,685
PROPOSED PROPOSED
ADJUSTMENTS 2019/20
$ $ 134,155
134,1.55
210 13,520
7,090 54,090
2,125 78,920
(190) 19,690
(20) 3,680
9,215 169,900
CURRENT YEAR REVENUE OVER (UNDER) EXPENDITURES $ (39,465) $ (39,465) $ (26,530) $ (9,215) $ (35,745)
(1) Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019.
EXHIBIT A
Page 17 of 30
CITY OF SAN JUAN CAPISTRANO
CDBG/HOME GRANT FUND
FISCAL YEAR 2019/20 UPDATE
Description
PROJECTED REVENUE AND OTHER SOURCES
Program Income-State CDBG
Program Income-State HOME
Investment Interest
'fOTAL ·PROJECTED REVENUES AND OTHER SOURCES.
ESTIMATED EXPENDITURES AND OTHER USES
Personnel Charges
Professional & Contract Services
TOTAL -EStl MATED EXPENDITURES ~D 01iHER US6
$
ADOPTED
2018/19
40,000
120,000
2,87S
162,875
12,460
80,350
92,810
AMENDED
2018/19 (1)
$ 40,000
120,000
2,87S
162,875
12,460
80,350
92.810
$
ADOPTED
2019/20
40,000
120,000
2,905
162,905
13,075
116,850
U9,92S
PROPOSED
ADJUSTMENTS
$
1 ,095
1,o95
(630)
(630)
PROPOSED
$
2019/20
40,000
120,000
4,000
164,000
12,445
116,850
U9,295
CURRENT YEAR REVENUE OVER (UNDER} EXPENDITURES $ 70,065 $ 70,065 $ 32,980 $ 1,725 S 34,705
(1) Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019.
EXHIBIT A
Page 18 of 30
CITY OF SAN JUAN CAPISTRANO
SAN ONOFRE NUCLEAR GENERATING STATION (SONGS) FUND
FISCAL YEAR 2019/20 UPDATE
Description
PROJECTED REVENUE AND OTHER SOURCES
SONGS Reimbursement
TOTAL-PROJECTED REVENUES AND OTHER SOURCES
ESTIMATED EXPENDITURES AND OTHER USES
Personnel Charges
Professional & Contract Services
Utilities
Supplies & Materials
Machinery & Equipment Maintenance
Building Maintenance
Training
Administrative Overhead
Program Overhead
Equipment
TOTAL -EST1MA:r£1) EXP£NDITURES AND OTHER USES
$
ADOPTED
2018/19
193,600
193,600
49,845
6,250
3,015
5,781
40,000
8,209
500
30,000
50,000
193,600
AMENDED
2018/19 (1)
$ 202,550
202,SSO
49,845
6,250
3,015
5,781
40,000
8,209
500
30,000
50,000
8,950.00
202,SSO
$
ADOPTED
2019/20
193,600
193,600
51,995
5,250
3,015
2,430
40,000
10,410
500
30,000
50,000
193,600
PROPOSED PROPOSED
ADJUSTMENTS 2019/20
$
(355)
355
$ 193,600
193,600
51,640
5,250
3,015
2,785
40,000
10,410
500
30,000
50,000
193,600
CURRENT YEAR REVENUE OVER (UNDER) EXPENDITURES $ · S -$ • $ . S •
(1) Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019.
EXHIBIT A
Page 19 of 30
CITY OF SAN JUAN CAPISTRANO
AIR QUALITY MANAGEMENT DISTRICT (AQMD)/ AB 2766 FUND
FISCAL YEAR 2019/20 UPDATE
ADOPTED AMENDED ADOPTED PROPOSED
Description 2018/19 2018/19 (1) 2019/20 ADJUSTMENTS
PROJECTED REVENUE AND OTHER SOURCES
State AQMD/AB2766 Fees $ 46,000 $ 46,000 $ 46,000 $ (1,000)
Investment Interest 2,000 2,000 2,000 1,000
TOTAL-PROJECTED REVENlilES ·ANO OTHER SOURCES 48,~ 48,000 48,00iO
ESTIMATED EXPENDITURES AND OTHER USES
Community Services:
Electric Golf Cart 12,000
Public Safety:
Mounted Police Unit for Swallows' Day Parade 5,000
Transfer Out -Highways, Streets & Roads Grant Fund 23,728
Transfer Out to General Fund for:
Trolley Program 20,000 63,673 16,000 3,600
Senior Mobility Transportation Program 19,000 19,000 19,000 1,000
Vehicle Miles Traveled (VMT) Program 4,500
TOTAL -£STIMATED EXPENDITURES AND OTHER USES 39,000 123,401 35,000 9,100
PROPOSED
2019/20
$ 4S,OOO
3,000
48,000
19,600
20,000
4,500
44,100
CURRENT YEAR REVENUE OVER (UNDER) EXPENDITURES $ 9,000 $ (75,401) $ 13,000 $ (9 ,100) $ 3,900
(1) Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019.
EXHIBIT A
Page 20of30
CITY OF SAN JUAN CAPISTRANO
HOUSING IN-LIEU FEE FUND
FISCAL YEAR 2019/20 UPDATE
Description
PROJECTED REVENUE AND OTHER SOURCES
Housing In-Lieu Fees $
Investment Interest
TOTAL -PROJECTED REVENUES AND OTHER SOURCES
ESTIMATED EXPENDITURES AND OTHER USES
Affordable Housing -Project Participation
TOTAL -ESTIMATED EXPENDITURES AND OTHER USES
ADOPTED
2018/19
AMENDED ADOPTED
2018/19 (1) 2019/20
$ $ 300,000
28,000
28,000 300,000
PROPOSED PROPOSED
ADJUSTMENTS 2019/20
$ (300,000) $
23,000 23,000
(Zn,000) 23.000
CURRENT YEAR REVENUE OVER (UNDER) EXPENDITURES $ -$ 28,000 $ 300,000 $ (277,000) $ 23,000
(1) Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019.
EXHIBIT A
Page 21 of 30
Description
CITY OF SAN JUAN CAPISTRANO
LAW ENFORCEMENT GRANTS FUND
FISCAL YEAR 2019/20 UPDATE
ADOPTED
2018/19
AMENDED
2018/19 (1)
ADOPTED
2019/20
PROPOSED PROPOSED
ADJUSTMENTS 2019/20
PROJECTED REVENUE AND OTHER SOURCES
State Grant (COPS) $ 125,000 $ 150,000 $ 125,000 $ $ 125,000
T'OT Al · PROJECTED REVEN U ES AND OTHER SOURq,S
ESTIMATED EXPENDITURES AND OTHER USES
Transfer Out-General Fund
1.25,000 150,000 125,000
125,000
TOTAL· -ESTIMATB> EXPEND ITU RES A'ND OTHER USES 125,000
150,000
150,000
125,000
125,000
125,000
$ 125,000
125,000
DUd;1#112ti 1;1d¥2Wfi 1 •1t@bUN 11 i;11 W&?11119•1¥• . $. $. $ . $.
(1) Per the City's Fiscal Vear 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019.
EXHIBIT A
Page 22 of 30
CITY OF SAN JUAN CAPISTRANO
DEVELOPER DEPOSITS FUND
FISCAL YEAR 2019/20 UPDATE
ADOPTED AMENDED ADOPTED
Description 2018/19 2018/19 (1) 2019/20
PROJECTED REVENUE AND OTHER SOURCES
Developer Deposits $ 422,550 $ 422,550 $ 445,150
TOTAL -PROJ ECTED REVENUES AND OTHER SOURCES 422,550 .422,550 445,150
ESTIMATED EXPENDITURES AND OTHER USES
Personnel Charges 277,120 277,120 293,665
Allocated Charges 145,430 145,430 151,485
TOTAL -ESTIMATED EXPENDITURES AND OTHER USES 422,550 422,550 445,150
PROPOSED PROPOSED
ADJUSTMENTS 2019/20
$ (19,800) $ 425,350
-(19;1100) 425,350
(18,405) 275,2£0
(1,395) 150,090
(19,800) 425,lSo
CURRENT YEAR REVENUE OVER (UNDER) EXPENDITURES $ -$ -$ -$ -$ -
(1) Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019.
EXHIBIT A
Page 23 of 30
CITY OF SAN JUAN CAPISTRANO
DEBT SERVICE FUND
FISCAL YEAR 2019/20 UPDATE
Description
PROJECTED REVENUE AND OTHER SOURCES
Property Tax Levy-Series 2009A, Measure Y
Investment Interest -Measure Y
Transfers In -General Fund
TOTAL-PROJECTED REVENUES-AND OTHER SOURCES
ESTIMATED EXPENDITURES AND OTHER USES
General Obligation Bonds -Measure D
Bond Administration Costs
Refunding General Obligation Bonds -Measure Y
Professional & Contract Services
Principal
Interest
Bond Administration Costs
Judgment Obligation Bonds
Principal
Interest
Bond Administration Costs
TOTAl-ESTIMATED EXPENDITUR£SAND OlHER USES
$
ADOPTED
2018/19
1,854,000
8,000
308,315
2,170,315
8,000
875,000
972,070
6,500
275,000
29,515
3,800
U69,885
AMENDED
2018/19 (1)
$ 1,854,000
8,000
308,315
2,170.315
1,375
6,625
875,000
972,070
6,500
275,000
29,515
3,800
2,169,885
$
ADOPTED
2019/20
1,852,000
8,000
310,775
2,110,ns
8,000
885,000
960,960
6,500
285,000
21,975
3,800
2,171,235
PROPOSED
ADJUSTMENTS
$
4,000
4,000
PROPOSED
$
2019/20
1,852,000
12,000
310,775
2,174,nS
8,000
885,000
960,960
6,500
285,000
21,975
3,800
2,171.23.5
CURRENT YEAR REVENUE OVER (UNDER) EXPENDITURES $ 430 $ 430 $ (460) $ 4,000 S 3,540
(1) Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019.
EXHIBIT A
Page 24of30
'
CITY OF SAN JUAN CAPISTRANO
DOMESTIC WATER OPERATIONS FUND
FISCAL YEAR 2019/20 UPDATE
ADOPTED AMENDED ADOPTED PROPOSED PROPOSED
Description 2018/19 2018/19 (1) 2019/20 ADJUSTMENTS 2019/20
PROJECTED REVENUE AND OTHER SOURCES
Water Commodity Charges $ 16,131,000 $ 15,368,000 $ 16,131,000 $ 195,000 $ 16,326,000
Customer Service Charges 5,263,000 5,263,000 5,263,000 5,263,000
MWD Grant@ $250/AF 596,000 475,000 596,000 (114,750) 481,250
Meter, Inspection, Plan Check Fees 107,000 195,000 82,000 {9,000) 73,000
Charges to Other Funds 237,000 237,000 243,000 (3,000) 240,000
Other Water Service Revenues 172,000 239,qoo 172,000 17,000 189,000
Investment Interest 5,000 25,000 5,000 25,000 30,000
TOTAL -PROJ£CTED REVENUES ANO 01Htfl. SOURCES 22,Stl,000 21;ilo~ooo 22,492,0DO 110,250 22)i02.2§0
ESTIMATED EXPENDITURES AND OTHER USES
General Liability Insurance 428,700 505,700 483,215 {9,410) 473,805
Legal Services:
General 50,000 50,000 50,000 50,000
Litigation 383,000
Special Counsel for Utilities Reorganization Project 125,000 70,000 70,000
Finance:
Customer Service 603,370 602,370 614,710 (1,605) 613,105
Actuarial Services for Utilities Reorganization Project 45,000
Utilities Administration 782,839 813,669 816,509 192,526 1,009,035
General Engineering 239,495 148,695 250,840 106,75 0 357,590
Development Engineering 87,070 88,320 91,195 51,200 142,395
Engineering-Inspection 137,985 139,985 144,510 2,4 70 146,980
G£NEAAl WATER OPERATIONS
General Services 1,195,085 1,254,505 1,227,850 (259,585} 968,265
Water Conservation 48,565 48,565 48,565 48,565
Field Customer Service 131,290 105,145 141,820 (34,865) 106,955
Strategic Planning 249,705 229,705 250,055 (28,575) 221,480
Regulatory Compliance 70,945 62,045 72,415 {10,230) 62,185
Import Water Supply 5,798,295 5,835,295 6,031,750 806,390 6,838,140
Distribution & Pumping 271,350 285,750 274,005 27,230 301,235
System Water Quality 523,615 475,300 543,535 {8,340) 535,195
Cross & Backflow Connection 43,600 43,600 45,555 (340) 45,215
System Maintenance 898,920 830,920 920,825 64,155 984,980
Well Maintenance 64,180 76,180 65,430 18,525 83,955
Reservoir Maintenance 66,810 79,810 67,340 10,915 78,255
Preventative Maintenance 54,970 54,970 54,970 54,970
Booster & Facilities Maintenance 99,145 99,145 100,445 {18,485) 81,960
Emergency & After-Hours Response 70,835 70,835 77,970 (205) 77,765
Interest on Loan from Sewer Funds 15,000 15,000 10,000 {S,000) 5,000
Principal Repayment on Loan from Sewer Funds 1,475,000 1,475,000 750,000 (110,000) 640,000
Amounts funded by Drought Penalty Revenues:
Extra Staff help 114,940 75,145 118,260 (34,660) 83,600
GWftP OPERATIOf:4S
General Services 132,302 55,302 136,382 (5,077) 131,305
Regulatory Compliance 4,275 3,000 3,000
System Water Quality 128,000 128,000 128,000 {38,500) 89,500
Plant 1,424,270 1,520,325 1,486,075 158,610 1,644,685
Well Maintenance 375,863 364,088 382,803 {37,098) 345,705
Reservoir Maintenance 3,345 5,845 3,345 3,345
Emergency & After-Hours Response 88,550 88,550 97,460 (260) 97,200
'TltA NSFats-OUT
To General City Capital Projects Fund 355,135
To Water Debt Service Fund 3,042,360 3,042,360 2,963,590 (11,200) 2,952,390
To Domestic Water Capital Replacement Fund 1,500,000 1,405,000 1,800,000 200,000 2,000,000
TOTAl -£STIMATED E>Cl>OIDITURES AND OTIIER USES 20,216,399 20,987,534 20,249,424 1,098,33'i 21,347,760
CURRENT YEAR REVENUE OVER (UNDER} EKPENDITURES S 2,294,601 S 814,466 S 2,242,576 S (988,086} S 1,254,490
(1) Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019.
121 Although the proposed budget reflects Water Operations and Groundwater Recovery Plant Operations as a single fund in the City's accounting system, the
costs of the Groundwater Recovery Plant are identified separately above to provide additional detail concerning the operations of the Groundwater Recovery
Plant.
EXHIBIT A
Page 25 of 30
CITY OF SAN JUAN CAPISTRANO
WATER DEBT SERVICE FUND
FISCAL YEAR 2019/20 UPDATE
Description
PROJECTED REVENUE AND OTHER SOURCES
Property Taxes-General
Investment Interest
Transfer from Domestic Water Operations Fund
TOTAL-PROJECTED REVENUES AND OTHER SOURCES
ESTIMATED EXPENDITURES AND OTHER USES
San Juan Basin Authority Lease Revenue Bonds
Lease Payment-SJ BA Series
Bond Administration Costs
20J4A Water Refunding Bonds
Principal
Interest
Bond Ai:tministration Costs
20J7 Installment Note
Principal
Interest
Bond Administration Costs
TOTAL-ESTil\llAT£0 EXPENDltuRES AND OTHER USEs
$
ADOPTED
2018/19
1,218,000
5,000
3,042,360
4,i65,%0
1,904,750
2,500
1,089,860
602,950
5,000
395,000
262,800
2,500
4,2~,360
AMENDED
2018/19 (1)
$ 1,218,000
5,000
3,042,360
4,265,360
1,904,750
2,500
1,089,860
602,950
5,000
395,000
262,800
$
ADOPTED
2019/20
1,274,800
5,000
2,963,590
4;243,390
1,904,900
2,500
1,126,070
562,180
5,000
390,000
250,240
2,500
4,2§3,390
2.s.00
4,lOS,360·--•-=-'"..-.
PROPOSED PROPOSED
ADJUSTMENTS 2019/20
$ 8,200 $ 1,283,000
3,000 8,000
(11,200) 2,952,390
4,2.43,390
1,904,900
2,500
1,126,070
562,180
5,000
390,000
250,240
2,500
4,243,390
CURRENT YEAR REVENUE OVER (UNDER/ EXPENDITURE $ -S · $ -S -$ ·
(1) Per the City's fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019.
EXHIBIT A
Page 26 of 30
CITY OF SAN JUAN CAPISTRANO
NON-POTABLE WATER OPERATIONS FUND
FISCAL YEAR 2019/20 UPDATE
ADOPTED AMENDED ADOPTED PROPOSED PROPOSED
Description 2018/19 2018/19 (1) 2019/20 ADJUSTMENTS 2019/20
PROJECTED REVENUE AND OTHER SOURCES
Water Commodity Charges $ 993,000 $ 945,000 $ 993,000 $ 5,000 $ 998,000
Customer Service Charges 72,000 72,000 72,000 72,000
Meter, Inspection, Plan Check Fees 4,000 4,000 1,000 1,000 2,000
MWD Grant@ $150/AF 13,500
Investment Interest 1,000 1,000
TOTAL· PROJECTED REVEN UES A NQ OTHER SOURCES 1.,069~000 l,,034,500 1,066,000 7:000 ~073,000
ESTIMATED EXPENDITURES AND OTHER USES
General Liability Insurance 3,230 3,230 3,920 (1,590) 2,330
Customer Service 8,855 8,855 8,935 (65) 8,870
General Engineering 21,665 21,665 22,665 (12,220) 10,445
Development Engineering 20,625 20,785 21,575 5,395 26,970
Engineering-Inspection 1,865 1,865 1,955 (l,955)
NON.POTABLE WATER OPERATIO NS
General Services 1,500 1,500 1,500 1,500
Strategic Planning 190 190 200 10 210
Regulatory Compliance 220 220 235 (235)
Import Water Supply 406,790 321,790 415,375 (128,090) 287,285
Cross & Backflow Connection 3,000 3,000 3,000 (500) 2,500
System Maintenance 29,010 28,850 29,625 (11,630) 17,995
Well Maintenance 72,919 93,919 73,474 10,841 84,315
TRANSFERS OUT
Transfers Out -Non-Potable Water CIP 400,000 400,000 400,000 230,000 63 0,000
TOTAL-ESTI MATED EXPE'NDrruRES AND OTH£,ff. USES 969,869 .905)169 9s2jis9 89,.961 1,G72.42D
CURREN7 YEAR REVENUE OVER (UNDER) EXPENDITURES S 99.Bl S 128.631 $ 83,54l $ (82..%1\ $ 580
(1) Per the City's Fiscal Vear 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019.
EXHIBIT A
Page 27 of 30
CITY OF SAN JUAN CAPISTRANO
SEWER ENTERPRISE FUND
FISCAL YEAR 2019/20 UPDATE
ADOPTED AMENDED ADOPTED
Description 2018/19 2018/19 (1) 2019/20
PROJECTED REVENUE AND OTHER SOURCES
Sewer Service Charges $ 3,732,000 $ 3,732,000 $ 3,732,000
Investment Interest 5,000 15,000 5,000
Other Interest 7,500 7,500 5,000
Loan Repayment from Water Operations Fund 737,500 737,500 375,000
TOTAL· PROJECTED REVENUES' AND OTH~R SOURCES 4,482,000 4,492,000 4,ID,ooo
ESTIMATED EXPENDITURES AND OTHER USES
General Liability Insurance 6,170 6,170 7,535
Customer Service 181,065 181,065 186,040
General Engineering 21,665 21,665 22,665
Engineering Inspection Services 3,735 3,735 3,915
Fats, Oils, and Grease (FOG) Inspection Pro&!am 30,000 24,800 20,000
WAS1i£WA~ ~TIONS
General Services 63,580 63,660 65,715
Strategic Planning 1,035 1,035 1,080
Regulatory Compliance 6,905 6,905 6,910
Lift Stations 149,909 149,909 150,954
Operating Contribution to South Orange County
Wastewater Authority (SOCWA) 1,902,700 2,146,765 1,959,700
System Maintenance 771,605 771,810 813,235
Emergency & After Hours Response 13,290 18,140 .14,620
TRANSf'ERS OUT
Transfers Out to Sewer Capital Replacement Fund 1,000,000 1,000,000 2,500,000
TOTAl·UflMAT£0 e<PU.OfruRES AND OTM~~ 4,151,659 4,J95,6S9 5,7$2,.369
PROPOSED PROPOSED
ADJUSTMENTS 2019/20
$ $ 3,732,000
9,000 14,000
(2,500) 2,500
(55,000) 320,000
(48,500) 4,068,Soo
4,075 11,610
(1,355) 184,685
26,145 48,810
(3,915)
8,500 28,SOO
24,640 90,355
1,080
(110) 6,800
(85,559) 65,395
250,760 2,210,460
4,400 817,635
3,960 18,580
(1,000,000) 1,500,000
(7U,459) 4,983,91,0
CURRENT YEAR REVENUE OVER (UNDER) EXPENDITURES S 330,341 S 96.:.41 S 11,635,369) S 719.959 S i91S.4101
(1) Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019.
EXHIBIT A
Page 28 of 30
CITY OF SAN JUAN CAPISTRANO
INSURANCE & BENEFITS FUND
FISCAL YEAR 2019/20 UPDATE
Description
PROJECTED REVENUE AND OTHER SOURCES
Medical Charges
Dental Charges
Vision Charges
Worker's Compensation Charges
Other Benefit Charges
Retiree Health Ins. Charges
Retirement Charges
Bilingual Pay Charges
General Liability Charges
TOT AL · PROJEcr.ED REVENUES AND OTHER SOURqs
ESTIMATED EXPENDITURES AND OTHER USES
Health Insurance Reimbursement
Medical Insurance Premiums
Dental Insurance Premiums
Vision Insurance Premiums
Life Insurance Premiums
Disability Insurance
Worker's Compensation Premiums
Retiree Health Insurance Premiums
Bilingual Pay
O.C. Employees Retirement System
ICMA Retirement System
Medicare
Liab ility Insurance/Bonds
roTAL -ESTIMATED EXPENDITURES AND OTflER USES
$
ADOPTED
2018/19
1,435,875
123,000
26 ,,000
82,000
214,000
145,000
2,594,000
19,000
1,054,200
S,693,07S
47,000
1,358,875
123,000
26,000
30,000
62,000
82,000
175,000
19,000
2,586,000
8,000
122,000
1,054 ,2 00
5,-693,o75
AMENDED
2018/19 (1)
$ 1,435,875
123,000
26,000
82,000
214,000
145,000
2,594,000
19,000
1,054,200
5,693,075
47,000
1,358,875
123,000
26,000
30,000
62,000
82,000
175,000
19,000
2,586,000
8,000
122,000
1,054,200
5,693,075
$
ADOPTED
2019/20
1,540,170
129,000
27,000
216,000
214,000
159,000
2,736,000
19,000
1,225,000
6,265,170
47,000
1,464,170
129,000
27,000
30,000
62,000
216,000
188,000
19,000
2,728,000
B,000
122,000
1,225,000
6,lGS,170
PROPOSED PROPOSED
ADJUSTMENTS 2019/20
$ (53,170)
(10,000)
10,000
(38,000)
45,000
(2,000)
(23,000)
(71,170t
2,000
(26,170)
(10,000)
3,000
(67,000)
(2,000)
40,000
5,000
7,000
(23,000)
(71."170)
$ 1,487,000
119,000
27,000
216,000
224,000
121,000
2,781,000
17,000
1,202,000
6,194,000
49,000
1,438,000
119,000
27,000
30,000
65,000
216,000
121,000
17,000
2,768,000
13,000
129,000
1,202,000
6.194.000
-$ -s. s -s -
(1) Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019 .
EXHIBIT A
Page 29 of 30
CITY OF SAN JUAN CAPISTRANO
FACILITIES OPERATIONS FUND
FISCAL YEAR 2019 /20 UPDATE
Description
PROJECTED REVENUE AND OTHER SOURCES
Fixed Asset/Occupancy Charges
Vehicle Operation Charges
IT /Communication Charges
Investment Interest
Other Reimbursements
TOTAL-PR<:>JECTED REVENUES AND OllHER SOURCES
ESTIMATED EXPENDITURES AND OTHER USES
$
ADOPTED
2018/19
1,002,495
321,765
1,025,490
20,000
2,3691750
AMENDED
2018/19 (1)
$ 1,060,495
331,765
1,025,490
20,000
87,415
2,525,165
$
ADOPTED
2019/20
973,825
323,830
1,066,600
20,000
2,384 5
Fleet Acquisition & Maintenance 450,765 623,765 419,830
Facility Maintenance 988,785 1,192,300 960,130
Business Services 33,700 33,700 33,700
Information Tech & Communication Services 1,187,595 1,222,595 1,173,700
Transfer Out to Capita l Projects Fund 152,000 455,345 152,000
PROPOSED PROPOSED
ADJUSTMENTS 2019/20
$ 58,880 $ 1,032,705
25 323,855
(52,745) 1,013,855
20,000
6,t60 2,3~15
25 419,855
58,880 1,019,010
33,700
(52,745) 1,120,955
152,000
6,160 Z.74S,52.0 TOTAL-ESTIMATED EXPEr.lblTURES AND OTffER USES 2,812.,845 ~ 2,739,360
f!9;M@t1Mt;t;lj'<tm11J•JV1i"IW•J1ilH@W.YiU;lWWWEMWIOOI!WIDWWMM1W W€lilil!ildi
(1) Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019.
EXHIBIT A
Page 30 of 30
RESOLUTION NO. 19-06-04-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO, CALIFORNIA ADOPTING THE SEVEN-YEAR CAPITAL
IMPROVEMENT PROGRAM FOR FISCAL YEARS
2019-20 THROUGH 2025-26
WHEREAS, the City Council of the City of San Juan Capistrano held a public workshop
on May 7, 2018 , to consider the Proposed Seven-Year Capital Improvement Program for
Fiscal Years 2018-19 through 2024-25; and,
WHEREAS, the proposed Seven-Year Capital Improvement Program (CIP) has been
amended for Fiscal Years 2019-20 through 2025-26 as part of the City's Fiscal Year 2019-20
Budget Update; and,
WHEREAS, the proposed Seven-Year Capital Improvement Program (CIP) is
considered a planning document for the projects that are necessary to meet the needs of the
community; and,
WHEREAS , the City Council intends to use the Seven-Year CIP as a guide for the
allocation of resources to meet the needs of the community and achieve the City Council's
established goals and priorities.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Juan
Capistrano does hereby adopt the Seven-Year Capital Improvement Program for Fiscal Years
2019-20 through 2025-26 as shown in Exhibit A attached hereto and incorporated by reference
and as follows:
Project
Fiscal Year <1> Expenditures
2019-20 $ 10,194,040
2020-21 18,308,420
2021-22 15,037,780
2022-23 14,058,000
2023-24 7,412,000
2024-25 9,124,000
2025-26 8,313,000
TOTAL $ 8214471240
<1> The Fiscal Year 2019-20 project expenditures have been adopted as part of the Fiscal Year 2019-20
Operating and Capital Budget of the City of San Juan Capistrano.
1
ATTACHMENT 3
PASSED, APPROVED, AND ADOPTED this 4th day of June 2019.
BRIAN L. MARYOTT, MAYOR
ATTEST:
MARIA MORRIS, CITY CLERK
2
ATTACHMENT 3
CITY OF SAN JUAN CAPISTRANO
2019-2026 CIP PROJECT SUMMARY BY TYPE
PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
PROJECT 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 TOTAL
TRANSPORTATION
xxlOl-Annual Traffic Signal Cabinet Upgrades S 255,000 $ 260,000 $ 265,000 $ 270,000 $ 110,000 $ $ $ 1,160,000
07117-1-5/San Juan Creek Road Underpass Improvements 181,040 270,920 383,780 6,617,000 7,452,740
08102-Pavement Management Program (PMP) 95,000 50,000 50,000 195,000
11101-Citywide Sign Replacement Program 50,000 40,000 40,000 40,000 170,000
19101-Meredith Canyon Streets Pavement Rehabilitation 1,702,000 1,458,000 3,160,000
19102-Camino Capistrano Pavement Rehabilitation 450,000 550,000 990,000 1,990,000
(Aeropuerto to Costco)
20102-Public Right-of-Way ADA Implementation Plan 25,000 72,500 10,000 107,SOO
xxxxx-Mission Spring Streets Pavement Rehabilitation 1,445,000 445,000 1,890,000
xxxxx-Sun Ranch Streets Pavement Rehabilitation 130,000 1,094,000 956,000 2,180,000
xxxxx-Village San Juan and Casitas Streets Pavement Rehab. 865,000 1,603,000 2,468,000
Pavement Rehabilitation
xxxxx-Mission Creek Streets Pavement Rehabilitation 200 000 2 010 000 2 210 000
SUBTOTAL $ 2,613,040 $ 2,706,420 $ 3,273,780 $ 8,516,000 $ 1,971,000 $ 1,893,000 $ 2,010,000 $ 22;983,240
PARKS AND OPEN SPACE
07204-Citywide Trail Improvements $ $ 75,000 $ $ 75,000 $ $ 75,000 $ S 225,000
09203-Citywide Playground Upgrades 120,000 120,000 125,000 130,000 130,000 130,000 755,000
18204-Los Rios Phase II Improvements 1,630,000 1,630,000
20201-2.4 Acre Site (adjacent to Reata Park) 200,000 200,000
20202-Arizona Crossing Removal 129,000 365,000 494,000
20203-Stream Bank Restoration 195,000 1,600,000 1,795,000
xxxxx-Sports Park Improvements 995,000 995,000
jsuBTOTAL $ 324,000 $ 2,360,000 $ 2,745,000 $ 200,000 $ 130,000 $ 205,000 $ 130,000 $ 6,094,000
BUILDINGS AND FACILITIES
15306-ADA Self Evaluation and Transition Plan $ 152,000 $ 152,000 $ 152,000 $ 152,000 $ 152,000 $ 152,000 $ 152,000 $ 1,064,000
XlCJQ(X·Hlstoric Town Center Park Storage Facility 180,000 -180,000
lsuBTOTAL s 152,000 $ 152,000 $ 332,000 $ 152,000 $ 152,000 $ 152,000 $ 152,000 $ 1,244,000
DRAINAGE
20501-Confined Animal Feeding Operations (CAFO) $ 565,000 $ 5,125,000 $ 450,000 $ S $ $ $ 6,140,000
Storm water Treatment SyHem
lsuBTOTAL $ 565,000 s 5,125,000 $ 450,000 $ s s $ -$ 6,140,000
DOMESTIC WATER
08801-Joint Regional Water Supply System (JRWSS) $ S $ $ $ 505,000 $ 100,000 $ 100,000 $ 705,000
\J Capital Replacemeflls
!l> m 17801-San Juan Hills Greens Cathodic Protection System 275,000 275,000 <g X 17802-760S Zone Pump Station Discharge Line Replacement 800,000 800,000 1,600,000
_... I 17803-Valve Insertion Program 200,000 200,000 200,000 200,000 200,000 200,000 200,000 1,400,000
0 CO 17806-Water Facility Control Systems 200,000 200,000 200,000 200,000 200,000 1,000,000
~ -I 17807-Well Facility Equipment Replacement Program 135,000 135,000 90,000 135,000 90,000 90,000 135,000 810,000
N )> 19803-GWRP Clear Well Replacement 250,000 250,000
19804-Pump Station Component Replacements 440,000 460,000 480,000 500,000 540,000 580,000 3,000,000
19805-Eastern Transmission System Repairs 100,000 200,000 220,000 220,000 740,000
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PROJECT
20801-System Repairs and Upgrade of Appurtenances
20802-Safety Access Stair and Platform System
xxxxx-Groundwater Recharge with Storm Water
xxxxx-San Juan Hills Greens and Estates Pipeline Replacement
isuBTOTAL
RECYCLED WATER
.x601-Annual Recycled Water Service Conversions Project
17601-Trampas Canyon Recycled Water Reservoir
18601-Calle Arroyo Recycled Pipeline
XJO<xx·Recyc led Water Master Plan
ls u BTOTAL
SEWER
xx701-Annual Sewer Replacement Program
07701-South Orange County Wastewater Authority
PC#2 & #5 Rehab
08701-Food, Oils & Grease (FOG) Inte rceptor Program
lsuBTOTAL
!GRAN D TOTAL
$
$
$
$
$
$
CITY OF SAN JUAN CAPISTRANO
2019-2026 CIP PROJECT SUMMARY BY TYPE
PROPOSED PROPOSED PROPOSED PROPOSED
2019/20 2020/21 2021/22 2022/23
100,000 1,000,000 1,000,000 1,000,000
120,000
S85,000
1,5 70,000 $ 2,995,000 $ 3,240,000 $ 2,840,000 $
170,000 $ 170,000 $ 170,000 $ 170,000 $
10,000 101,000 101,000
475,000 1,820,000 337,000
165,000 100,000
170 ,000 $ 820,000 $ 2,191,000 $ 608,000 $
400,000 $ SS0,000 $ 550,000 $ 600,000 $
4,400,000 3,600,000 2,256,000 1,117,000
25,000
4,soo,ooo $ 4,lS0,000 $ 2,806,000 s 1,742,000 s
10,194,()llO_~__!ll,3 08,4 20 $ 15,037, 780 $ 14,0 58,000 $
PROPOSED PROPOSED PROPOSED
2023/24 2024/25 2025/26 TOTAL
1,000,000 1,000,000 1,000,000 6,100,000
120,000
585,000 585,000 585,000 2,340,000
2,300,000 2,300,000 4,600,000
3,120,000 $ 4,855,000 $ 4,3 20,000 s 22,940,000
$ $ $ 680,000
101,000 101,000 101,000 515,000
2,632,000
265,000
101,000 s 10 1,000 $ 10 1,000 $ 4,092,000
600,000 $ 600,000 $ 600,000 $ 3,900,000
1,318,000 1,318,000 1,000,000 15,009,000
20,000 45,000
1,938,000 $ 1,918,000 $ 1,600,000 $ 18,954,000
7,412,000 $ 9,124,0 00 $ 8,313,000 $ 82,447,240
Description
BEGINNING FUND BALANCE $
REVENUES
Revenue/Fees In
Current Year Project Funding
Grants
Interest
Developer Contribution
Loan Repayment from Water Operations Fund
Loan Repayment from Measure M Fund
Loan Repayment from Successor Agency
Loan Repayment from State Gas Tax
Loan Interest
Transfers In
TOTAL· PROJECTED REVENUES AND OTHER SOURCES $
TOTAL"FUNDS AVAILABLE
EXPENDITURES
Transportation Projects
Parks and Open Space Projects
Buildings and Facilities Projects
Drainage Projects
Non-Potable Water Projects
Sewer Projects
Water Projects
Ope rating Expen ditures/Transfers Out
to:tAL tlO'ENIJITURES
$
AMENDED
2018/19 (1)
25,194,956 $
4,435,000
455,345
822,825
173,500
350,000
737,500
436,277
120,000
41,000
12,500
2,832,728
i 0,416;615 $
35,611,631 $
7,121,385
3,638,385
655,345
400,715
317,465
4,026,780
3,733,215
1,052,337
20,945,627 $
CITY OF SAN JUAN CAPISTRANO
CONSOLIDATED CIP FUNDS
FISCAL YEAR 2019/20 UPDATE
PROPOSED PROPOSED PROPOSED PROPOSED
2019/20 2020/21 2021/22 2022/23
14,666,004 s 20,583,464 s 30,345,044 $ 28,755,264 $
8,492,000 16,187,000 7,611,000 4,882,000
1,041,000 7,242,000 602,000 152,000
176,400 189,500 190,500 207,500
195 ,000 196,000 185,000 171,000
2,000,000 411,000
320,000
240,000
41,000
2,500
4,130,000 4,795,000 5,400,000 5,300,000
111,637,U $ 28:609,~ r$ ll,90;500-$-11;ln;SM-$
31,303,904 ,$
2,613,040
324,000
152,000
565,000
170,000
4,800,000
1,570,000
526,400
10,720,440 $
49,192,964 $
2,706,420
2,360,000
152,000
5,125,000
820,000
4,150,000
2,995,000
539,500
18,841)110 $
44,333,544 $
3,273,780
2,745 ,000
332,000
450,000
2,191,000
2,806,000
3,240,000
540,500
s,5n;,2ao$
39,878,764 !
8,516,000
200,000
152,000
608,000
1,742,000
2,840,000
557,500
1Gf51$0l> $
PROPOSED
2023/24
25,263,264
2,876,000
152,000
172,000
5,300,000
8}5!JO,OOO
33_.763,2 ~
1,971,000
130,000
152,000
101,000
1,938,000
3,120,000
PROPOSED
$
$ -
$
$
2024/25
26,001,264 $
2,491,000
152,000
137,000
5,300,000
"8,080 ,000 $
34,081,264 $
1,893,000
205,000
152,000
101,000
1,918,000
4,855,000
350,000
·~,474,000 $
PROPOSED
2025/26
24,607,264
2,365,000
152,000
138,000
5,955,000
81610,000
33,217,264
2,010,000
130,000
152,000
101,000
1,600,000
4,320,000
350,000
3;66 3,ooo
ENDING FUND BALANCE $ 14,666,004 $ 20,S!B,464 $ ~O, '!45,044 $ 18,755,164 $ ZS,263,264 $ 26,001 ,264 $ 24 ,607,264 $ 24,554,264
(1) Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019 .
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CITY OF SAN JUAN CAPISTRANO
FUND 1 -GENERAL FUND
FISCAL YEAR 2019 /20 UPDATE
AMENDED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
Description 2018/19 (1) 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 202S/26
BEGINNING FUND BALANCE $ -$ -$ -$ $ -$ $ . $
REVENUES
Current Year Project Fundin g 889,000 7,090,000 450,000
~
TOTA'l • PROJECTED REVENVE,S AND OTHER SOURCES $ -$ 889,000 $ 7.090,000 $ '450,000 $ . $ . $ •' $
TOTAL REVENUE AVAILABLE $ . $ 889,000 s 7,090,000 $ '150,000 $ -~ -$ : s -------
EXPENDITURES
20202-Arizona Crossing Removal 129,000 365,000
20203-Stream Bank Restoration 195,000 1,600,000
20501-Confined Animal Feeding Operations (CAFO) -565,000 5,125,000 450,000
Storm water Treatment System
TOTAL EXPENDITURES' -f $ 889,000 $ 7,090,000 $ 450,000 $ $ --$ $ . . .
ENDING FUND BALANCE $ $ $ $ $ • $ $ • $ -
(1 ) Per the City's Fiscal Year 2018/19 Third Quarter Fi nancia l Report that was approved by the City Council on May 21, 2019 .
CITY OF SAN JUAN CAPISTRANO
FUND 6 -ROAD MAINTENANCE AND REHABILITATION ACCOUNT (RMRA)
FISCAL YEAR 2019/20 UPDATE
AMENDED PROPOSED PROPOSED PROPOSED
Desc ri ptio n 20 18/19 (1) 2019/20 2020/21 2021/22
BEG INNING FUND BALANCE s 45,324 $ 504 $ 504.000 $ 5 04 .ClOO $
REVENUES
Gas Tax 2030 (SB-1) 583,000 608,000 614,000 620,000
TOTAL .~pR.o m:i'Eb REVE~UES ANl:> (Ji'H£1fSo·u-RCES--5 5~;lfQ'P s 668,000 s 614,000 s 620,009 $
TOTAL REVE NU E· AVA ILABLE -$ 628,324 $ 608,504 $. 614,504 '$ 620,504 $
EXPENDITURES
18101-Capistrano Villas I, II, and Ill Pavement Rehabilitation 25,820
19101-Meredith Canyon Streets Pavement Rehabilitation 602,000 608,000
xxxxx-Mission Spring Streets Pavement Rehabilitation 614,000 620,000
xxxxx-Sun Ranch Streets Pavement Rehabilitation --
xxxxx-Village San Juan and Casitas Streets Pavement -
Rehabilitation
xxxxx-Mission Creek Streets Pavement Rehabilitation
TOTAL EXPENOfTtlR.ES -$ rn,820 $ 608,ooo $ 614;000 "S ~62(),(l{)O' $
4 s 504 s 504 s 504 s
(1) Per the Otv's Flscal Year 2018/19 Third Quarter Financial Report that was approved by the Citv Council on May 21, 2019 .
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PROPOSED PROPOSED
2022/23 2023/24
5()4.000 s 504.000 s
626,000 632,000
6 26,000 s 632,000 $
6 26,504 $ m,504 s
626,000 632,000
-
62!i,OOO $ 632,000 S'
504 $ 504 s
PROPOSED PROPOSED
2024/25 2025/26
504.000 $ 504.000
633,000 639,000
633,000 $ 639,000
633_,504 $ '639,504
633,000
639,000
"633-;o_OO .$ &;3 9,000
504 s so
CITY OF SAN JUAN CAPISTRANO
FUND 10 -SYSTEMS DEVELOPMENT
FISCAL YEAR2019/20 UPDATE
AMENDED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
Description 2018/19 (1) 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26
BEGINNING FUND BALANCE $ 1,235,786 $ 454,161 $ 695,161 $ 1,387,161 $ 976,161 $ 1,325,161 $ 1,412,161 $ 1,466,161
REVENUES
Systems Development Tax 395,000 600,000 1,196,000 561,000 334,000 80,000 47,000 47,000
Development Fees -Ord 211 7,000 85,000 40,000 12,000 9,000 1,000 1,000 1,000
Interest 3,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000
TOTAL· PROJECTED REVENUES AND OTHER SOURCES s· 405,000 $ 69 ~.1,000 $ ~,2A2,0 00 $ 5 19,ooo $ 349,000 $ a7;'ooo r S4,000 ·s -54,ooo
T9TAL FUNDS AVAILABLE $ 1,640,786 $ 1,145,161 $ 1;937,161 $ 1,966,161 $-1,325,161 $ 1,4l2;161 $' l,466,16'1 $ 1,520,161
EXPENDITURES
11101-City-wide Sign Replacement Program 302,400
12502-Camino Capistrano Off-Ramp Catch Basins 170,000
14106-Verdugo Street Beautification Project 165,555
15306-ADA Self Evaluation and Transition Plan 75,000
16502-lnterstate 1-5/0rtega Hwy Storm Water Treatment 73,670
19102-Camino Capistrano Pavement Rehabilitation 200,000 450,000 550,000 990,000
(Aeropuerto to Costco)
19301-Del Obispo/Ortega Highway Public Parking Lot 200,000
ToT~L EXPEND1fuii'es $ 1,1.86,625 $ 45'0;000 $-sso,ooo $ 99,0,0QO $ --. -$--$ . $
ENDING fUND BALANCE $ 454,161 $ 695,161 $ 1,387,161 $ 976,161 $ 1,325,161 $ 1,412,161 $ 1,466,161 $ 1,520,161
(1) Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019
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Description
BEGINNING FUND BALANCE
REVENUES
Park/Recreation Fees
Developer Contribution
Interest
TOTAL· PROJECTEb REVENUES AND OTHER SOUR(ES
TOTAL REVENUE AVAILABLE
EXPENDITURES
07204-City-wide Trail Improvements
09203-City-wide Playground Upgrades
09209-Northwest Open Space Community Park
14201-Cook Park Softball Fields #2 & #3 & Soccer Field #2
16202-Cook Cordova Park Playground Equipment
16203-Malaspina Trail
17202-Eastern Open Space Trails A and A-1
18201-Cook La Novia Park Picnic Area Enhancements
18202-Arce Park Renovation
18204-Los Rios Phase II Improvements
20201-2.4 Acre Site (adjacent to Reata Park)
xxxxx-Sports Park Improvements
xxxxx-Historic Town Center Park Storage Facility
TOTAl EXPENDITURES
$
$
$
$
CITY OF SAN JUAN CAPISTRANO
FUND 11-PARKAND RECREATION FEES
FISCAL YEAR 2019/20 UPDATE
AMENDED PROPOSED PROPOSED PROPOSED PROPOSED
2018/19 (1) 2019/20 2020/21 2021/22 2022/23
1,351,942 $ 51,197 $ 2,959,197 $ 6,381,197 $ 5,155,197 $
897,000 3,806,000 1,688,000 696,000
2,000,000
7,000 11,000 11,000 11,000 11,000 -
MOO $ 2'908,000 $ 3181 ?,0()0 $ 1,6"99,000 $ 707,000 $
1,358,942 $ 2,959,197 $ 6,776,197 $ ._8,080,197 $ S,862,197 $
47,000 75,000 -75,000
29,482 120,000 120,000 125,000
163,130
88,750
196,883
333,000
206,565
172,405
70,530
1,630,000
200,000
995,000
180,000
1,307;745 $ $ 3951000 $ 2,925,000 $ 200,000 $
PROPOSED PROPOSED PROPOSED
2023/24 2024/25 2025/26
5,662,197 $ 5,543,197 $ 5,338,197
11,000 ---
111000 $ . $
S,673,197 $ S,543,197 $ S,338,197
75,000
130,000 130,000 130,000
130,000 $ 205,000 $ 130,000
ENDING FUND BALANCf $ 51,197 $ 7,9'>9,197 $ 6,3Hl,197 $ 5,155,197 $ 5,662,197 $ 5,54 3,197 $ 5,338,197 $ 5,208,197
(1) Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019.
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CTIY OF SAN JUAN CAPISTRANO
FUND 12 -DRAINAGE FUND
FISCAL YEAR 2019/20 UPDATE
AMENDED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
Description 2018/19 (1) 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26
BEGINNING FUND BALANCE $ (314,751} $ (282,986} $ (262,986} $ (157,986} $ (69,986} $ (69,986} $ (69,986} $ (69,986}
REVENUES
Drainage Fees 54,000 20,000 10 5,000 88 ,000
Grants -State 18,020
TOTAL. PROJECTE'D REVENUES AND OTHERS OURCES -$ -12 ~020 $ 20,000 $ 1051000 $ 88,000 $ -$ • $ $
TOTAL REVENUE AVAILABLE _ $ ,(242!731) $ (262,986) $ (157,986) $ (69,986) S (69,986) $ (69,9861 $ (6_9,9B6) $ (69,.!186)
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EXPEND ITURES
12502-Camino Capistrano Off-Ramp Catch Basins 40,255
TOTAL EXPENDITURES --$--40,255 $ • $ -$ • $ • $ $ • $
ENDING FUND BALANCE $ (282,986) $ (262,986) $ (157,986) $ (69,986) $ (69,986) $ (69,986) $ (69,986) $ (69,986)
(1) Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019 .
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Description
BEGINNING FUND BALANCE
REVENUES
Agricultural Preservation Fees
Interest
TOTAL· PROJECTED REVfNlJES AND OTHER' SOURCES
TO~L ~ENUE AVAILABLE
EX PENDITURES
None
TOTAL"EXPENDffi.J'iifS
CTIY OF SAN JUAN CAPISTRANO
FUND 13 -AGRICULTURAL PRESERVATION FUND
FISCAL YEAR 2019/20 UPDATE
AMENDED
2018/19 (1)
s-82,236$
42,000
$ 42;000 $
$ 124,236 $
~ . ~
PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
20 19/20 2020 /21 2021/22 2022/23 2023/24
124,236 $-223,236 $ ~236$ 584,236 -$ 650,236 $
94,000
5,000
?9,000 $
223,236 s
-"l
257,000
5,000
262,000 $
485,236 $
$
94,000
5,000
~9,000 $
584,231> $
$
61,000
5,000
66,000 $
650,236 $
59,000
5,000
64,ooo ~
714,236 $
~
PROPOSED
2024/ZS
714,236 $
5,000
5,000 $
719,236" $
$
PROPOSED
2025/26
719,236
5,000
·s.ooo
724,236
ENDING FUND BALANCE $ 124,236 $ 223,236 $ 485,236 $ 584,236 S 650,236 $ 714,236 $ 719,236 $ 724,236
(1) Per the City's Ascal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019.
Description
BEGINNING FUND BALANCE
REVENUES
Gas Tax 2103 (HUTA)
Gas Tax 2105
Gas Tax 2106
Gas Tax 2107
Gas Tax 2107 .5
Loan Repayment
Interest
TOTAL· PROJECTED R~ENUESAND OTHERSOURCES
To'J'Al REVENUE AVAILABLE
EXPENDITURES
xxlOl/104-Annual Traffic Signal Cabinet Upgrades
16104-Left Turn Lane at Del Taco
18101-Capistrano Villas I, 11, and Ill Pavement Rehabilitation
19101-Meredith Canyon Streets Pavement Rehabilitation
19103-Audible Pedestrian Signals
20102-Public Right-of-Way ADA Implementation Plan
xxxxx-Mission Spring Streets Pavement Rehabilitation
xxxxx-Sun Ranch Streets Pavement Rehabilitation
xxxxx-Village San Juan and Casitas Streets Pavement
Rehabilitation
xxxxx-Mission Creek Streets Pavement Rehabilitation
Transfer Out-General Fund (Street Maintenance)
TOTALExPENDlrURES --
CITY OF SAN JUAN CAPISTRANO
FUND17-GASTAXFUND
FISCAL YEAR 2019/20 UPDATE
AMENDED
2018/19 (1)
PROPOSED
2019/20
PROPOSED
2020/21
PROPOSED
2021/22
$ 480,552 $ 892 $ 572 $ 3,572 $
$
$
130,000
206,000
138,000
270,000
6,000
41,000
3,000
794;00o$
1,2741552 $
358,000
34,735
146,425
313,000
71,500
350,000
1,273,660 $
313,000
204,000
138,000
269,000
6,000
41,000
6,000
977,000' $
977,892 $
255,000
347,320
25,000
350,000
977,320 $
316,000
206,000
139,000
272,000
6,000
6,000
945:000 $
945,572 $
260,000
259,500
72,500
350,000
942,000 $
319,000
208,000
140,000
275,000
6,000
6,000
954,000 $
957,572 $
265,000
10,000
198,000
130,000
350,000
953,000 $
(1) Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019.
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PROPOSED
2022/23
4,572 $
322,000
210,000
141,000
278,000
6,000
6,000
963,000 $
967,572 $
270,000
310,000
350,000
930,000 $
PROPOSED
2023/24
37,572 $
325,000
212,000
142,000
281,000
6,000
6,000
912,000 $
1,00!)~572 $
110,000
530,000
350,000
990,000 $
PROPOSED
2024/25
19,572 $
325,000
212,000
142,000
281,000
6,000
6,000
972,000 $
991,572 $
375,000
200,000
350,000
925,000 $
PROPOSED
2025/26
66,572
328,000
214,000
143,000
284,000
6,000
6,000
981,000
1,047}572
671,000
350,000
1,021,000
CTIY OF SAN JUAN CAPISTRANO
FUND 18 -CCFP FUND
FISCAL YEAR 2019/20 UPDATE
AMENDED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
Description 2018/19 (1) 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26
BEGINNING FUND BALANCE $ 8,149,448 $ 7,206,610 $ 9,562,570 $ 13,915,650 $ 14,678,870 $ 9,008,870 $ 9,271,870 $ 9,332,870
REVENUES
Circulation Fees 635,000 2,481,000 4,567,000 1,089,000 477,000 203,000
Developer Contribution 350,000 -411,000
Loan Repayment from Measure M Fund 436,277
Loan Interest 5,000
Interest 56,000 56,000 57,000 58,000 59 ,000 60,000 61,000 62,000
. . --
TOTAL· PROJECTED REVENUES-ANO OTHER SOURCES $ 1,4s212n $ 2,537,000 $ 4,624,000 $ 1,147,000 $ ~7,9(10 $ 263,000 $ 61,000 $ 6~,000
TOTAL AVAILABLE $ 9,631,725 $ 9,743,610 $ 14,186,570 $ 15,062,650 $ is,625,.70 $ 9,271,870 $ 91~3,2,870 $ 9,394,870
EXPENDITURES
07117-1-5/San Juan Creek Road Underpass Improvements 921,810 181,040 270,920 383,780 6,617,000
14103-Camino Las Ramblas and 1-5 Northbound 291,890
Traffic Signal Modification
14104-Alipaz Street Widen i ng-Camino del Avion 27,505
to Calle Rolando
14107-0rtega Highway Widening Project (managed by 350,000
Caltrans)
16102-Del Obispo Widening· Via De La Paz 833,910 ---TOTAL EXPENDrTURES $ 2,425,115 $ 181,040 $ 270,920 $ 383,18.0 $ 6,617,000 $ -$ -$
ENDING FUND BALANCE $ 7,206,610 $ 9,562,570 $ B,915,650 $ 14,678,870 $ 9,008,870 $ 9,271,870 $ 9,BZ,870 $ 9,394,870
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CITY OF SAN JUAN CAPISTRANO
FUND 32 -MEASURE M FUND
FISCAL YEAR 2019/20 UPDATE
AMENDED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
Description 2018/19 (1) 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26
BEGINNING FUND BALANCE $ 105,025 $ 81,203 $ 5,523 $ 4,023 $ 12,023 $ 11,023 $ 11,023 $ 25,023
REVENUES
Measure M Local Turnback 626,000 668,000 675,000 682,000 689,000 696,000 696,000 703,000
Interest 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000
Transfers In-General Fund 4,000
TOTAL-PROJECTED REVE N UEs ·AND OTHER SOURCES
-$ 633,000 $ 671,000 $ 67!1,000 $ 685,0'00 $ 692,000 $ 699,000 $ ,699,000 $ 106,000
TOTAL AVAILABL.E $ 7l8,02S $ 752,203 $ 6.83,513 $ 689_,023 ·$ 704,023 $ 710,023 $ 710,023 $ 731.023
EXPENDITURES
xxlOl/104-Annual Traffic Signal Cabinet Upgrades 114,545
08102-Pavement Management Program (PMP) 40,000 -95,000 -50,000 50,000
11101-City-wide Sign Reptacement Program 50,000 40,000 40,000 40,000
17105-Local Streets Pavement Rehabilitation FY 16/17
18101-Capistrano Villas I, II, and Ill Pavement Rehabilitation
19101-Meredith Canyon Streets Pavement Rehabilitation 66,000 746,680 584,500
xxxxx-Mission Spring Streets Pavement Rehabilitation 627,000 445,000
xxxxx-Sun Ranch Streets Pavement Rehabilitation --158,000 324,000
xxxxx-Village San Juan and Casitas Streets Pavement . ----335,000 595,000
Rehabilitation
xxxxx-Mission Creek Streets Pavement Rehabilitation ---700,000
Loan Repayment to CCFP Fund 436,277
Tc:>TAL EXPENDITURES $ 656',822 $ 746,680 '$ m.soo r 677,000 $ 693,000 $ 699,00o $ 685,000 $ 700,000
ENDING FUND BALANCE $ 8 1,203 $ 5,523 $ 4,023 $ 12,023 $ 11,023 $ 11,023 $ 25,023 $ 31,023
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FUND 37 -HIGHWAYS, STREETS, AND ROADS GRANTS FUND
FISCAL YEAR 2019 /20 UPDATE
AMENDED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
Description 2018/19 (1) 2019/20 2020/21 2021/22 2022/23 2023/24 2024/2S 2025/26
BEGINNING FUND BALANCE $ (23,728) $ $ -$ $ $ -$ -$
REVENUES
Measure M Specific Projects 746,320 176,400 189,500 190,500 207,500
Transfer In -AQMD Fund 23,728 -
TOTAL -PROJECTED REVENUES AND OTHERSOURCES $ 770,048 $ 176,400 $ 189,500 $ 190,S0.0 $ 207,500 $ . , $ . $
TOTAL REVENUE AVAILABLE $ ~4~!320 $ 176,400 $_ 189~~00 $ 190,500 $ 207,500 $ . $ . $
EXPENDITURES
16102-Del Obispo Widening -Via De La Paz 480,260
Transfer Out to General Fund for Summer Trolley Program 266,060 176,400 189,500 190,500 207,500
TOTAL EXPENDITURES $ 746,320 $ 176,400 $ 189,SOO $ 190,500 $ 207,500 $ -$
$ -$ -$ -$ -$
(1) Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019.
CITY OF SAN JUAN CAPISTRANO
FUND 51-OPEN SPACE ACQUISTION AND CONSTRUCTION FUND
FISCAL YEAR 2019 /20 UPDATE
AMENDED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
Description 2018/19 (1) 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26
BEGINNING FUND BALANCE $ 1,094,795 $ 15,340 $ 25,340 $ 35,340 $ 40,340 $ 40,340 $ 40,340 $ 40,340
REVENUES
Interest 7,500 10,000 10,000 5,000 --TOTAL -PROJECTED REVENUES AND OTHER SOURCES s 7,500 $ 10,000 $ 10,000 "$ S,000 $ s -$ $
TOTAL REVENUE AVAILABLE $ -1,10b295 $ 25,340 $ 35,340 $ 40,340 s 40~40 $ 40,340 s 401340 $ 40,340
EXPENDITURES
• ~20~~orthwest Of en 5£!';! C~mmu nl ty Park 1,086,955
~
1,086,9$5 s -. --
TOTAL EXPENDITURES $ -$ -s -$ . $ -s . $
ENDING FUND BALANCE $ 15,340 $ 25,340 $ 35,340 $ 40,340 $ 4{),34 0 $ 40,340 $ 40,340 $ 40 ,340
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Description
BEGINNING FUND BALANCE
REVENUES
Interest
TOTAL -PROJECTED REVENUES AND OTHER SOURCES
TOTA.l REVENUE AVAILABLE
EXPENDITURES
09209-Northwest Open Space Community Park
19201-Sports Park Field Improvement Study
TOTAL EXPENDITURES
$
$
$
$
CITY OF SAN JUAN CAPISTRANO
FUND 52 -COMMUNITY FACILITIES DISTRICT BONDS
FISCAL YEAR 2019 /20 UPDATE
AMENDED PROPOSED PROPOSED PROPOSED PROPOSED
2018/19 (1) 2019/20 2020/21 2021/22 2022/23
1,770,434 $ 536,749 $ 556,749 $ 576,749 $ 586,749 $
10,000 20,000 20,000 10,000 5,000
'10,0!)0 $ 2Q1000 $ 20,000 s 10,ooo s S,000 $
l,,780,434 $ 556,749 $ 576,749 s 586)749 $ 591,749 $
1,218,685
25,000 i,243,685::':"'-:$:-. __________ ..:...___ -----
$ $ $ $
PROPOSED PROPOSED PROPOSED
2023/24 2024/25 2025/26
591,749 $ 596,749 $ 601,749
5,000 5,000 5,000
5,000 $ 5,000 $ 5,000
596,749 $ &g;l,7~9 -$ 606,749
$ $
ENDING FUND BALANCE $ 536,749 $ 556,749 $ 576,749 $ 586,749 $ 591,749 $ 596,749 $ 601,749 $ 606,749
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Descr iption
BEGINNING FUND BALANCE
REVENUES
Interest
TOTAL· PROJECTl:O REVENUES ANO OTHER SOURCES
~
TOTAl REVENUE AVAILABLE -
EXPENDITURES
12502-Camino Capistrano Off-Ramp Catch Basins
14106-Verdugo Street Beautification Project
16502-lnterstate 1-5/0rtega Hwy Storm Water Treatment Project
TOTAL EXPENDmJRES
CITY OF SAN JUAN CAPISTRANO
FUND 53 -SUCCESSOR AGENCY NON-HOUSING BONDS
FISCAL YEAR 2019/20 UPDATE
AMENDED PROPOSED PROPOSED PROPOSED PROPOSED
2018/19 (1) 2019/20 2020/21 2021/22 2022/23
$ 1,884,087 $ 78,267 $ 88,267 $ 98,267 $ 103,267
12,000 10,000 10,000 5,000 --$ ll,000 $ 10,000 $ 10,000 $ 5,000 $
$ i,896,087 $ -88,i67 $ -9!1,267 $ 103,267 $ 103,267
62,520
1,701,030
54,270
$ 1.11111s 20 $ . $ . $'' $
,267 $ 88,]
(1) Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019.
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PROPOSED PROPOSED PROPOSED
2023/24 2024/25 2025/26
$ 103,267 $ 103,267 $ 103,267
$ $. . $
$ 103,267 $_ 103,267 $ 103,267
$ . $
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FUND 63 -DOMESTIC WATER CAPITAL REPLACEMENT FUND
FISCAL YEAR 2019/20 UPDATE
Description
BEGINNING FUND BALANCE
REVENUES
Transfer In -Domestic Water Operations (2)
Interest
TOTAl • PROJECTED REVENUES ANO OTHER SOURCES
TOTAL REVENUE AVAILABLE
EXPENDITURES
07811-760S Reservoir
08801-Joint Regional Water Supply System (JRWSS)
Capital Replacements
14702-Las Ramblas/Paseo Activo Slope Replacement
17802-760S Zone Pump Station Discharge Line Replacement
17806-Water Facility Control Systems
17807-Well Facility Replacement Program
19803-GWRP Clear Well Replacement
19804-Pump Station Component Replacements
19805-Eastern Transmission System Repairs
20801-System Repairs and Upgrade of Appurtenances
20802-Safety Access Stair and Platform System
xxxxx-SJ Hills Greens and Estates Pipeline Replacement
TOTAL EXPENDITURES
AMENDED
2018/19 (1)
$ 1,889,126 $
1,405,000
10,000
$ 1,AlS,ooO $
$ 3,~,126 $
50,420
867,145
54,860
165,000
530,090
114,915
350,000
540,000
375,000
$ ~.047,430 $
PROPOSED
2019/20
256,696 $
PROPOSED
2020/21
1,193,696 $
2,000,000 2,000,000
12,000 12,000
z.912,~o $ 2,0U,000 $
2,168,696 $ 31205,696 $
800,000
180,000 180,000
135,000 135,000
440,000 460,000
100,000 200,000
100,000 1,000,000
120,000
i,01.5,000 $ 2,775,000 $
PROPOSED
2021/22
430,696 $
3,000,000
20,000
3,020,000 $
3;450,696 $
800,000
180,000
90,000
250,000
480,000
220,000
1,000,000
3,020,000 $
PROPOSED
2022/23
430,696 $
3,000,000
20,000
3,ozD,oi>o s
3.450 ,696 s
.
180,000
135,000
500,000
220,000
1,000,000
21035,000 $
PROPOSED
2023/24
1,415,696 $
3,000,000
20,000
3,020,000 $
4,435,696 $
505,000
180,000
90,000
540,000
1,000,000
2,31 5,000 .$
PROPOSED
2024/25
2,120,696 $
3,000,000
20,000
3,020,000 $
5'140,696 $
100,000
90,000
580,000
1,000,000
2,300,000
4,070,000 $
PROPOSED
2025/26
1,070,696
3,655,000
20,000
3,67 5,000
41745,696
100,000
135,000
1,000,000
2,300,000
3,535,000
ENDING FUND BAlANCE $ 256,696 $ 1,193,696 $ 430,696 $ 430,696 $ 1,415,696 $ 2,120,696 $ l,070,696 $ 1,210,696
(1) Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019
(2) The Water Capital Replacement Program will require additional funding from water ratepayers in the City's future rate study to meet the capital needs of the City's water systen
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CITY OF SAN JUAN CAPISTRANO
FUND 64 -DOMESTIC WATER CAPITAL IMPROVEMENT FUND
FISCAL YEAR 2019 /20 UPDATE
AMENDED PROPOSED PROPOSED PROPOSED PROPOSED
Description 2018/19 (1) 2019/20 2020/21 2021/22 2022/23
BEGINNING FUND BALANCE $ 1,278,098 $ 1,088,353 $ 1,362,353 $ 3,373,353 $ 4,142,353 $
REVENUES
Water Capital Improvement Charge 138,000 206,000 621,000 272,000 133,000
Water Capacity Charge 179,000 268,000 807,000 354,000 173,000
Water Storage Fees 165,000 260,000 768,000 328,000 168,000
Interest 10,000 15,000 15,000 15,000 15,000
TOTAL· PROJECTED REVENUES AND OTHER SOURCES -$ 492i000 $. 749,ooo T 211",000 $ 969,000 $ $ 4119,000 ..
TOTAl R~ENUE AVAILAB~E
~
$ 1,no,09a .$ !,!37,351 $ U73 1 ~53 $ 4,!42,353 $ 4,~1 ,353 $
EXPENDITURES
07803-Terminal Reservoir No . 3 45,470
07811-7605 Reservoir 28,970
16801-La Pata Water Line Replacement 5,000
16804-Water Master Plan Study 100,000
17801-San Juan Hills Greens Cathodic Protection System 253,325 275,000
17803-Valve Insertion Program 166,465 200,000 200,000 200,000 200,000
17804-Capistrano Royale Fire Flow Pump 82,515
xxxxx-Groundwater Recharge with Storm Water -585,000
TOTAL.EXPENDITURES
~~
$ H1745 -mooo 200000 $ 200 00 $ 785,000 $
:J ' 1 :: ' : ~ .
(1) Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019
PROPOSED PROPOSED PROPOSED
2023/24 2024/25 2025/26
3,846,353 $ 3,152,353 $ 2,426,353
20,000 12,000
27,000 15,000
29,000 17,000
15,000 15,000 15,000
911000 $ 59,000 $ lS,000
3,937,353 $ 3,211,353 $ Z,441 ,353
200,000 200,000 200,000
585,000 585,000
785,000 $
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CITY OF SAN JUAN CAPISTRANO
FUND 65 -NON-POTABLE WATER CAPITAL IMPROVEMENTS FUND
FISCAL YEAR 2019 /20 UPDATE
Descri ption
BEGINNING FUND BALANCE
REVENUES
Water Capacity Charge
Grants-MWDOC
Interest
Transfer In -Non-Potable Water Operations
TOTAL~ PROJECTED REVENUES ANO OTHER SO,lJRC£S
TOTAL REVENUE AVAllABte
EXPENDITURES
xx601-Annual Recycled Water Service Conversions Project
16602-Non-Potable Water Pipelines
17601-Trampas Canyon Recycled Water Reservoir
17806-Water Facility Control Systems
18601-Calle Arroyo Recycled Pipeline
xxxxx-Recycled Water Master Plan
TOTAL EXPENOITUR
$
$
$
$
AMENDED PROPOSED
2018/19 (1) 2019/20
564,096 $ 786,216 $
151,000 182,000
42,485
5,000 1,000
400,000 630,000
598,485 $ l!.~3'000 $
1,162,581 $ 1~599,216 $
241,765 170,000
75,700
58,900 20,000
376,365 $ 190.000 $
PROPOSED
2020/21
1,409,216 $
342,000
1,000
800,000
1,143,000 $"
2_!552,lli_ $
170,000
10,000
20,000
475,000
165,000
840,000 $
PROPOSED
2021/22
1,712,216 $
7,000
1,000
900,000
908,0!X> $
2,620,216 $
170,000
101,000
20,000
1,820,000
100,000
2.2ll.OOO $
PROPOSED PROPOSED
2022/23 2023/24
409,216 $ 582,216 $
1,000 1,000
800,000 800,000
801,000 $ 80~000 $
1,210;216 $ 1,383,216 $
170,000
101,000 101,000
20,000 20,000
337,000
618.000 $ 121;000 $
PROPOSED PROPOSED
2024/25 2025/26
1,262,216 $ 1,962,216
1,000 1,000
800,000 800,000
801,000 $ 801,000
2,063,2-16 $ 2,763,216
101,000 101,000
101;000 $ 101,00o
ENDING FUND BALANCE $ 786,216 $ 1,409,216 $ 1,712,216 $ 409,216 $ 582,216 $ 1,262,216 $ 1,962,216 $ 2,662,216
(1) Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019
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Cl'IY OF SAN J UAN CAPISTRANO
F U ND 71-SEWER CAPITAL REPLACEMENT FUND
FISCAL YEAR 2019/20 UPDATE
AMENDED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
Description 2018/19 (1) 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26
BEGINNING FUND BALANCE $ 2,192,048 $ 1,007,298 $ 872,298 $ 520,298 $ 704,298 $ 1,371,298 $ 1,528,298 $ 1,325,298
REVENUES
Transfer In -Sewer Enterprise Operations 1,000,000 1,S00,000 1,995,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000
Interest 12,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000
---s 1 ,ou;ooo $ l,SlS,000 $ 2,010,00o-$ -1,s15,0oo S -1,515,oOOS U1.s,0oii' ~$ i,515,00o s 1,sl5,ooo TOTAL-PROJECTW REVENUES AND OTHER SOURCES
TOTAL REVENUE AVAlt.ABLE s 3,204,048 s 2,S22,l98 $ 2,882,298 $ 2,035,298 $ 2,21.9,298 $ 2,886,298 s 3,043~8 $ 2,M0,298 -L
EXPENDITURES
XX701-Annual Sewer Replacement Program 1,611,415 400,000 550,000 550,000 600,000 600,000 600,000 600,000
07701-South Orange County Wastewater Authority 46,650 1,250,000 1,812,000 781,000 223,000 738,000 1,118,000 905,000
PC#2 & #5 Rehabilitation
08701-Food, Oils & Grease (FOG) Interceptor Program 89,815 25,000 20,000
14702-Las Ramblas/Paseo Activo Slope Replacement 448,870
TOTAL EXPEND l1'UREs
~
$ 2,1%,750 $ 1,650,000 $ 2,362,000 $ 1.,331,000 $ 848,000 $ 1,358,000 $ 1,718,000 '$ 1,505,000
ENDING FUND BA LANCE $ 1,007,298 $ 8 72,298 $ SZ0,298 $ 704,298 $ 1,371,298 $ 1,528,298 $ 1,325,298 $ 1,335,298
(1) Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019,
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Description
BEGINNING FUND BALANCE
REVENUES
Sewer Connection Fees
Loan Repayment from Water Operations Fund
Loan Repayment from Successor Agency
Loan Interest
Investment Interest
TOTAL· PROJECTED REVENUES ANO OTHER SOURCES
TOTAL REVENl!E AVAILABLE
EXPENDITURES
07701-South Orange County Wastewater Authority
PC#2 & #5 Rehabilitation
07703-New Hydraulic Capital Project #6
08701-Food, Oils & Grease (FOG) Interceptor Program
17702-Sewer Flow Metering & SCADA Monitoring Project
TOTAL EXPENDITURES
CITY OF SAN JUAN CAPISTRANO
FUND 72 -SEWER CAPITAL IMPROVEMENT FUND
FISCAL YEAR 2019 /20 UPDATE
AMENDED PROPOSED PROPOSED PROPOSED PROPOSED
2018/19 (1) 2019/20 2020/21 2021/22 2022/23
$ 3,410,438 $ 3,245,268 $ 1,875,768 $ 1,562,768 $ 980,768 $
710,000 1,193,000 1,450,000 868,000 559,000
737,500 320,000
120,000 240,000
7,500 2,500
35,000 25 ,000 25,000 25,000 25,000
$ i;610;o0o _$ _ 1,180,soo s 1;475,000 $ 893,000 $ ss4,ooo s
$ 5,020,438 $ 5,025,768 $ 3,350,768 $ 2;455,768 $ 1;564,768 $
1,528,945 3,150,000 1,788,000 1,475,000 894,000
3,540
42,685
200,000
$ 1,ns,170 s 3,150,QQO $ 1,788,000 $ 1,475,000 $ 894,000 s
PROPOSED PROPOSED PROPOSED
2023/24 2024/25 2025/26
670,768 $ 278,768 $ 182,768
163,000 104,000
25,000
188,000 $ 104,000 ~
858,768 $ 382,768 $ tn,768
580,000 200,000 95,000
580,000 $ 200,000 $ 95,000
ENDING FUND BALANCE $ 3,245,268 $ 1,875,768 $ 1,562,768 S 980,768 $ 670,768 $ 278,768 $ 182,768 $ 87,768
(1) Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019.
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CITY OF SAN JUAN CAPISTRANO
FUND 81 -FACILITIES OPERATIONS FUND
FISCAL YEAR 2019 /20 UPDATE
AMENDED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
Description 2018/19 (1) 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26
BEGINNING FUND BALANCE $ -$ -$ $ -$ $ $ -$
REVENUES
Current Year Project Funding 455,345 152,000 152,000 152,000 152,000 152,000 152,000 152,000
TOTAL· 'P.ROJECTED REVENUES AND OTl.fER SOURCES $ 4SSi34S $ 152:000 s --ru,oo~ $ is~.ooo $ 152,000 $ 152,000 $ 1S1,000 $ i.52,000
TOTAL REVENUE AVAILABLE $ 455,345 $ 152,000 $ 152,000 $ 152,000 $ 152,000 $ 152,000 $ 152,000 s 152,000
EXPENDITURES
15306-ADA Self Evaluation and Transition Plan 455,345 152,000 152,000 152,000 152,000 152,000 152,000 152,000
-· -$ 455,345 $ U2,0o0 $ TOTAL EXPENDITURES 152,000 $ 152,000 $ 152,000 $ 152,000 $ 152,000 $ 1521000
ENDING FUND BALANCE $ S $ • S $ $ -$ S -
(1) Per the City's Fiscal Year 2018/19 Third Quarter Financial Report that was approved by the City Council on May 21, 2019.
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5/13 /20 19
Agency : San Juan Capistrano
Project Name: 07117-1-5/San Juan Creek Road Underpass
lmorovement Proiect
Project Limits: Valle Road to Camino Capistrano
Project Number: N/A
Type of Work (TOW): Road Widening
TOW Description : Add z lanes to existing roadway in project limits
Project Description: Widen San Juan Creek Road under 1-5 overpass
between Valle Road and Camino Cap istrano
Project Phase 19/20 20/21 .l1ai --E $181 ,040 $236,720 $246,980
R $0 $34 ,200 $136 ,800
C/I $0 $0 $0
O&M $0 $0 so
$181 ,040 $270 ,920 $383,780
Age ncy : San Juan Capistrano
Project Name: 11101-Citvwide Sian Reolacement Proa ram
Proj ec t Lim its: Citywide
Proj ect Numb er: N/A
Type of Work (TOW): Safety
TO W Des cri ptio n: Signage installation and /or replacement
Project Description : Systematic replacement of all traffic signs as
required per the federal mandate MUTCD-si gn
compliance requ irements
Project Phase 19/20 20/21 2 1i22.
---
E $0 $0 $1 0.000
R $0 $0 so
C/I $0 $0 $40.000
O&M $0 $0 so
$0 $0 $50,000
Measure M
Seve n Year Cap ital Improve me nt Program (Sort ed by Project Name )
Fis cal Years 2019 /2 020 th ro ugh 2 025/2 026
EUNP NAME
Developer
Impact Fees
2.m1
$0
$411,000
$6 ,206 ,000
$0
$6,61 7,000
23/24
$0
$0
$0
$0
$0
I...... -s
2212 3 23124
~ so so
so so
$40 .000 $40 ,000
$0 so
$40,000 $40 ,000
.~
5.51
94.49
,.~
~
$0
$0
$0
$0
$0
eERCENT
100 .00
24/25
~
$0
$0
$40.000
$0
$40,000
esnMATED COST
$411,000
$7,041 ,740
$7,452,740
25/26
~ --
$0
$0
$0
$0
$0
~.
5 170,000
$1 70,000
I 25/26
~ ~~
$0
$0
$0
$0
$0
PROJECTED COSl
$445,707
$7 ,636 ,379
S(!,082,08 6
~11m!lt ~d Q2 ~1
$664,740
$582.000
$6,206,000
so
$7,452 ,740
eROJECJgD COST ·
$187,719
$187,719
!;:~UII!!!lli !! Cos!
$10,000
$0
$160,000
$0
$170 ,000
wru_
Developer Contribut jon
Capistrano Circulation Fee Pro gram
e!S!.leCtelf •Qo st
$664,740
$629 ,955
56,7 87 ,391
so
$ 8,082,086
·----.--
NOTES
Measure M Funds
~C ast
$1 0,000
$0
$177,7 19
$0
$ 187,719
)>
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511312019
Agency: San Juan Capistrano
Project Name: CIP 08102 Pavement Manaoement Proqram (PMP)
Project Limits: City-wide
Project Number: NIA
Type or Work (TOW): Road Maintenance
TOW Description: Rehabilitation of roadway
Project Description: Provide updates to the City's PMP on odd years in
compliance with Measure M2 eligibility requirements.
-Pro iect Phase 19/20 20121 21/22
E $0 $95 ,000 $0
R $0 $0 $0
C/I $0 $0 $0
O&M $0 $0 $0
$0 $95 ,000 $0
Agency: San Juan Capistrano
Project Name: CIP 19101 -Meredith Canyon Streets Pavement
Rehabilitation
Project Limits: Various Streets
Proje ct Number: NIA
Type of Work (TOW): Road Maintenance
TOW Description: Rehabilitation of roadway
Project Description: Pavement rehabilitation of local streets within the
Meredith Canyon community including Via De Aqua,
Avenida Calita, Avenida la Mirada, Calle Esparanza.
-
Calle Miramar, Avenida Pescador, Paseo De Este and
Calle Don Carlo for FY20121 implementation.
Proiect Phase 19/20 20121 21/22
------E $0 $0 $0
R $0 $0 $0
Cl l $1 ,702,000 $1,458,000 $0
O&M $0 $0 $0
$1 ,702,000 $1,458 ,000 $0
Measure M
Seven Yea r Capital Imp rov ement Program (Sorted by Proje ct Name)
Fisca l Yea rs 2 019/2020 t hrough 2025/2026
EUNDNAME
M2 LFS
Z2l2l
$50 ,000
$0
$0
$0
$50 ,000
f!JtiQ ~aMi;
Gas Tax
M2 LFS
LSR
22123 --$0
$0
$0
$0
$0
~
$0
$0
$0
$0
$0
23/24
$0
$0
$0
$0
$0
PERCENT
100.00
24125 -$50,000
$0
$0
$0
$50 ,000
PERCENT
19.20
42.13
38.67
24125
-$0
$0
$0
$0
$0
.ESTIMATED COST
$195,000
$195 ,000
25/26
$0
$0
$0
$0
$0
E£llMA TEO C~I
$606 ,820
$1 ,331 .180
$1,222,000
$3,160,000
25/26
~ ~-
$0
$0
$0
$0
$0
PROJECTED COST
$195,000
$195,000
~lmal§d QQ~!
$195 ,000
$0
$0
$0
$195 ,000
PBQJ~JM ~QSI
$615 ,303
$1 ,349 ,790
S1,239 ,084
Sl,204,1n
f;;§~!Il§!ell Qo~! '
$0
$0
$3, 160 ,000
$0
$3,160 ,000
2
f'!Qru
Measure M Funds
Pi"o[ecte<I !:jos1
$195 ,000
so
so
so
$ 195,000
lllQlil
fL!!iecml Cost
so
so
$3,204 ,177
so
$ 3,204,177
5/13/2019
Agency: San Juan Capistrano
Project Name: GIP 19102-Camino Capistrano Pavement
Rehabilitation !Aeroouerto to Costco)
Project Limits: Avenida Aeropuerto to Costco
Project Number: NIA
Type of Work (TOWJ: Road Maintenance
TOW Description: Rehabilitation of roadway
Project Description: Rehabilitation of Camino Capistrano from Avenida
Aeropuerto to Costco to improve roadway
conditions , This arterial street is programmed for
completion in FY21/22 when sufficient funding is
available .
Project Phase 19/20 20/21 21/22
---
E $0 $0 $0
R $0 $0 $0
C/I $450 ,000 $550,000 $990 ,000
O&M $0 $0 $0
$450,000 $550 ,000 $990 ,000
Agency: San Juan Capistrano
Project Name: GIP xxxxx -Mission Spring Streets Pavement
Rehabilitation
Project Limits: Various
)> Project Number: NIA -i
-i
)> Type of Work (TOW): Road Maintenance
0
I TOW De scri ption: Rehabilitation of roadway s: m z Project Description: Rehabilitation of local streets within the Mission
-i Springs community including Ave , Siega, Via
~ Errecarte, Paseo Boscana, Via Estenaga, Via A nzar,
Via Ordaz and Calle A rroyo from Ave. Siega to
-0
Paseo Valencia in FY21-22 pending fund availability ,
!ll
(Cl Prolec! Phase
CD
19/20 £QLll 21/22
VJ E $0 $0 $175,000
0 R $0 $0 $0 -OJ C/I $0 $0 $1 ,270,000
O&M $0 $0 $0
$0 $0 $1,445,000
Measure M
Seven Year Capital Improvement Program (Sorted by Project Name)
Fiscal Years 2019/2020 through 2025/2026
~
eRbJ!i,!<l'EQ !<Q§I f!.!tlQtl~ME -eEBCENT .ESTIMa.ll:l:l !<Q~I ·
Other 100.00 $1,990,000 $2,067,568
$1,990,000 $2,067,568
22/23 23/24 ~ 25/26 ~!mated Q2s1
----
$0 $0 $0 $0 so
$0 $0 $0 $0 so
$0 $0 $0 $0 S1 ,990 ,000
$0 $0 $0 $0 so
$0 $0 $0 $0 $1,990,000
E!.!tlCI NAME -eEBCEN L ESIIMA TEO kos.I ~
Gas Tax 10.48 $198,000 $210,552
M2 LFS 56 .72 $1,072,000 $1, 139,959
LSR 32 ,80 $620,000 $659 ,305
$1,890,000 $2 ,009,817
22/23 23/24 ~ 25/26 &.Yi1Jl!!!!:1J Q2~ --$0 $0 $0 $0 $175 ,000
$0 $0 $0 $0 so
$445 ,000 $0 $0 $0 $1,715 ,000
$0 $0 $0 $0 so
$445,000 $0 $0 $0 $1,890,000
3
@ru_
Systems Development
P!Sil~cfed Q2s1
so
so
52 .067,568
so
$ 2,067,568
NOTES
~eos'I
5175,000
so
$1 ,834,817
so
$ 2,009,817
5/13/2019
Agency: San Juan Capistrano
Project Name: GIP xxxxx -Sun Ranch Streets Pavement
Rehabilitation
Project Limits: Various
Project Number: N/A
Type of Work (TOW): Road Maintenance
TOW Description: Rehabilitation of roadway
Project Description: Pavement rehabilitation of local streets within the
Sun Ranch community including Calle Aspero,
Peppertree Bend, Paseo de Elena, Aquacate Rd .,
Paseo Terraza, Via Carlos and Via Alicia for
implementation in FY22-23 ,
Project Phase 19/20 20/21 2lm
-----
E $0 $0 $130 ,000
R $0 $0 $0
C/I $0 $0 $0
O&M $0 $0 $0
$0 $0 $130 ,000
Agency: San Juan Capistrano
Project Name: GIP xxxxx -Village San Juan and Casitas Capistrano
Streets Pavement Rehabilitation
Project Limits: Various
)> Proje ct Number: N/A -l
-l
)> Type of Work (TOW): Road Maintenance
0
I TOW Description : Rehabilitation of roadway s::: rn z Project Description : Rehabilitation of local streets within the two
-l communities including Village Road, Calle Chueca ,
~ Calle Lorenzo, Calle Resplendor, Calle Bonita , Calle
Santa Rosalia, Paseo Sereno, Paseo Acacia , Paseo
-u Olivos and Via Los Pajaros for FY25-26
imolementation ,
Ol co Project Phase 19/20 20/21 2i/.22
CD ~
~ E $0 $0 $0
0 R $0 $0 $0 __,,
00 C/I $0 $0 $0
O&M $0 $0 $0
$0 $0 $0
Measure M
Seven Year Capital Improvement Program (Sorted by Project Name)
Fiscal Years 2019 /2020 through 2025/2026
IEutillHAME -l:!EB.CEtn: liIIMATE!;i ·COSI ~reoco s r
Gas Tax 20 .18 $440,000 $485, 156
M2 LFS 22.11 $482,000 $531,467
ILSR 57.71 $1 ,258,000 $1,387, 106
$2 ,1 80 ,00 0 $2,403,729
~ 23(24 24f25 ~ @t1111at~d~ost -~-
$0 $0 $0 $0 $130,000
$0 $0 $0 $0 $0
$1 ,094 ,000 $956 ,000 $0 $0 $2 ,050,000
$0 $0 $0 $0 $0
$1 ,094,000 $956 ,000 $0 $0 $2 ,180,000
. -
E!.!~Qf!AM E -f:!EB!::ENT ES llMATEg !:;OSJ:. J'.'BOJ EC TE O CQ SI
Gas Tax 36 .67 $905,000 $1,028,216
M2 LFS 37 .68 $930,000 $1,056,620
LSR 25 .65 $633,000 $719,183
$2,468,000 $2,804,019
-23/2_4 ---22123 24/25 Z§l2§· (;stin\glild •Qs!n
~ --$0 $250 ,000 $0 $0 $250,000
$0 so $0 $0 $0
$0 $6 1 5,000 $1 ,603 ,000 $0 $2 ,218,000
$0 so $0 $0 $0
$0 $865,000 $1,603,000 $0 $2,468 ,000
4
~
Pnilecred Cost
$130,000
$0
$2,273,729
$0
$ 2,403 ,729
tiQID
~Cost
$250,000
$0
$2,554,019
$0
$ 2,804,019
5/13/2019 Measure M 5
Seven Year Capital Improvement Program (Sorted by Project Name)
Fiscal Years 2019/2020 through 2025 /2026
Agency : San Juan Capistrano -. --
Project Name : City of San Juan Capistrano Trash Removal 1 fl.IND NAM E eEBrtEM! ESTIMATED COST e.BOJ ECTEO CQSI liQm
General Fund 100.00 $83,226 $8 3,226
Project Limits: City-Wide $83 ,226 $83,226
Project Number: 11-SJCP-ECP-3590
Type of Work (TOW): Environmental Cleanup
TOW Descripti on: Linear Radial Gross Solid Removal Device (GSRD)
Project Description : This project is for the maintenance of the Trash
Screens as in-kind services as part of the OCTA
grant funding received for the procurement and
installation of the trash screens.
Project Phase lll2.l -20/21 ~ z.ru 23/24 Z1tii ~ Estlrna1ed Qos! Prs:![ec.fl!d ~osl ---~ ~ ~ -~ ~---------E $0 $0 $0 $0 $0 $0 $0 $0 $0
R $0 $0 $0 $0 $0 $0 $0 $0 $0
C/I $0 $0 $0 $0 $0 $0 $0 $0 $0
O&M $39 ,986 $8 ,648 $8 ,648 $8 .648 $8 ,648 $8 ,648 $0 $83 ,226 $83 ,226
$39 ,986 $8,648 $8,648 $8 ,648 $8,648 $8 ,648 $0 $83,226 $ 83,226
Agency: San Juan Capistrano
Project Nam e: City of San Juan Capistrano Trash Removal 2 IE!Jl'!DNA ME f!EBC E!il ESDMAigQ!;<Q S! f!BQ J ECTED ~QSI l!!.QIES
General Fund 100.00 $54,448 $54,448
Project Limits: City-Wide $54,448 $54,448
)> Projec t Number: 11-SJCP-ECP-3591 -I
-I
)> Type of Work (TOW): Environmental Cleanup
0
I TOW Description : Linear Radial Gross Solid Removal Device (GSRD) s: m z Project Description: This project is for the maintenance of the Trash
-I Screens as in-kind services as part of the OCTA
.l:>. grant funding received for the procurement and
I
installation of the trash screens.
-u ru -24125 co Prole~ Phase 19/20 20121 21122 1Zlll 23/24 ~ !;.stima!ed Qost f[Qiected Cost CJ)
~~-~ ~ --~ --~
(J1 E $0 $0 $0 $0 so $0 so $0 $0
0 R $0 $0 $0 $0 so $0 so $0 $0 -°' C/I $0 $0 $0 $0 so $0 $0 $0 $0
O&M $19 ,993 $6 .891 $6 ,891 $6 .891 $6 ,891 $6 ,891 so $54,448 $54,448
$19 ,993 $6,891 $6 ,891 $6 ,891 $6,891 $6,891 $0 $54,448 $ 54,448
5/13/2019 Measure M 6
Seven Year Capital Improvement Program (Sorted by Project Name)
Fiscal Years 2019/2020 through 2025/2026
Agency: San Juan Capistrano
Project Name: Public Riqht-of-Wav ADA lmolementation Plan B!.ttQJMME -e sB~EtH ESTIMATED COS! f ROJ!;CTED QQSI t'OTE5-
Gas Tax 100 .00 $107,500 $110,312
Project Limits: Citywide $107,500 $110,312
Project Number: CIP 20102
Type of Work (TOW): Pedestrian
TOW Description: Installation of ADA access ramps
Project Description : This project will implement ADA compliance
improvements within the City's right-of-way .
Improvements include construction of ADA compl iant
ramps , sidewalks, installation of Audible Pedestrians
Signal (APS) and push buttons .
li!Zll. Zl!1&1 -~ zm P[.2[ei;;I Ph a ~e ~ mt ~ Estimate d~ ~d Cost
--------E $10 ,500 $0 $0 $0 $0 $0 so $10 ,500 $10 ,500
R $0 $0 $0 $0 $0 $0 $0 $0 $0
C/I $14,500 $72 ,500 $10 ,000 $0 $0 $0 $0 $97,000 $99 ,812
O&M $0 $0 $0 $0 $0 $0 $0 $0 $0
$25,000 $72,500 $10,000 $0 $0 $0 $0 $107,500 $ 110,312
Agency: San Juan Capistrano
Project Name: San Juan Capistrano Project V Community-Based E!lli!2..NAM.E --~ ~ eBQJECIJ;D CQSI ~
Transit/Circulators A B2766 10.00 $84,883 $86,149
Project Limits: San Juan Capistrano M2 Transit -V 90.00 $763,949 $775,339
~ Project Number: 18-SJCP-CBT-3915 $848 ,832 $861,488
--i
)> Type of Work (TOW): Transit
()
I TOW Description: Operations and Maintenance s:: m z Project Description: Special Event and Weekend Summer Trolley
--i
~
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Q)
23l 24 24125 cc frg]&!<I f!)ase 1!!lZl!. iQlll ·~ -22123 ~ Estimated Qo ~ f!Riected Co st
CD ---------m E $0 $0 $0 $0 $0 $0 $0 $0 $0
0 R $0 $0 $0 $0 $0 $0 $0 so $0 -co C/I $64 ,000 $68 ,680 $67.320 $68,680 $0 $0 $0 $268,680 $281,336
O&M $132 ,000 $141,898 $144 ,352 $161 ,902 $0 $0 $0 $580,152 $580, 152
$196,000 $210,578 $211,672 $230,582 $0 $0 $0 $848,832 $ 861,488
5/13 /2019
Agency: San Juan Capistrano
Project Name : Senior Mobility Proqram
Project Limits: Citywide routes
Proje ct Number : NIA
Type of Work (TOW): Transit
TOW Description : Other
Project Description : Transportation service for eligible seniors to
destinations such as the Community Center,
physician appointments, and grocery shopping
within City limits.
Project Phase .1mQ 20/21 ~
----
E $0 $0 $0
R $0 $0 $0
C/I $59,000 $0 $0
O&M $10,000 $0 $0
$69,000 $0 $0
Agency: San Juan Capistrano
Project Name : XX101-Traffic Siona! Cabinet Uoorades Proiect
Project Limits: City Wide
}> Project Number: N/A _, _,
}> Type of Work (TOW): Traffic Signals
0
I TOW Descripti on : Replace and upgrade traffic signals and equipment s: rn z Project Des c ripti on : This project will provide for the upgrade to current _, standards of outdated traffic signal controllers and
.j:::. cabinets at various locations .
I
"'U
Ol co P[O!e~! PbaS!l ~ fil!!ll 21122
CD --
-...J E $13,000 S14 ,000 S14 ,000
0 R $0 so so -Q) C/I $242,000 5246 ,000 S251 ,000
O&M $0 so so
$255,000 $260 ,000 $265 ,000
Measure M
Seven Year Capital Improvement Program (Sorted by Project Name)
Fiscal Years 2019/2020 through 2025/2026
fU ND ~AME PERCENT .ESllM~I~O gos 1 E!B.OJ ECTI;f.l QO SI
AQMD 28.36 $19,567 $19 ,567
M2SMP 71.64 $49,433 $49 ,433
$69,000 $69,000
22/23 23/24 ~ ·~ Estrmat~rl !:<!!;it
-~ -~
$0 $0 $0 $0 $0
$0 $0 $0 $0 $0
$0 $0 $0 $0 $59,000
$0 $0 $0 $0 $10,000
$0 $0 $0 $0 $69 ,000
FUND NAME -fi:iB!::;f;!il ~~· e.B.OJ!;c'TED ~Q S !.
Gas Tax 100.00 $1, 160,000 $1 ,219,973
$1,160,000 $1,219,973
22123 ~ 24126 2t.12s i;~nmar~n !:<!.!!ll ---$15,000 $6 ,000 $0 $0 $62,000
$0 $0 $0 $0 so
$255,000 $104,000 $0 $0 $1 ,098 ,000
$0 $0 $0 $0 so
$270,000 $110,000 $0 $0 $1 ,160,000
7
HQru
Prbl!lcled Casi
$0
$0
$59,000
$10,000
$ 69,000
..
t!.Qru
~Cost
S62 .000
so
S1 .157 ,973
so
$ 1,219,973
~
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~ m z
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CD
CX>
0 -CX>
5/13/2019
Agency: San Juan Capistrano
Project Name : XXXXX -Mission Creek Streets Pavement
Rehabilitation Proiect
Project Limits : Various
Project Number: N/A
Type Of Work (TOW): Road Maintenance
TOW Description: Rehabilitation of roadway
Project Description: The following local streets within the Mission Creek
community are programmed for completion : Paseo
Valencia, Via Cristal, Via Solana , Via Cordova, Calle
Raquel, Via Rubi, Via Perla and Calle Arroyo from
Paseo Valencia to Via Cordova.
Pre;!~!;! Eh!!s~ ~ ZQlil 1llU
~
E $0 $0 $0
R $0 $0 $0
C/I $0 $0 $0
O&M $0 $0 $0
$0 $0 $0
Measure M
Seven Year Capital Improvement Program (Sorted by Project Name)
Fiscal Years 2019/2020 through 2025/2026
l f Y~D t!AM!;, ei;;RdEt:il ~II MA !m !t QSI eBOJE!;;TED !:o osr
Gas Tax 39.41 $871,000 $1,027,470
M2 LFS 31.67 $700,000 $825,751
ILSR 28.91 $639 ,000 $753,793
$2,210,000 $2,607,014
~ ~ .W22 lllli S!!!l!!al!:!!I !il2§1 ----
$0 $0 $0 $150,000 $150,000
$0 $0 $0 $0 $0
$0 $0 $200 .000 $1,860 ,000 $2,060 ,000
$0 $0 $0 $0 $0
$0 $0 $200,000 $2,010,000 $2,210,000
8
~
P!:!!jected Q!:!§l
$150,000
$0
$2,457,014
$0
$ 2,607,014
RESOLUTION NO. 19-06-04-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO, CALIFORNIA, ADOPTING ITS ARTICLE XlllB
APPROPRIATIONS LIMITATION (GANN LIMITATION) FOR FISCAL
YEAR 2019-20
WHEREAS, the voters of California on November 6, 1979, added Article XlllB
to the State Constitution placing various limitations on the appropriations of the State and
local governments; and,
WHEREAS, Article XlllB provides that the appropriations limitation for the
Fiscal Year 2019-20 is calculated by adjusting the base year appropriations of Fiscal Year
1978-79, with changes in California per capita personal income or non-residential
assessed valuation and changes in City or County populations, and the recalculations of
the appropriations limitation from the 1986-87 fiscal year as stipulated by Proposition 111;
and,
WHEREAS, the information regarding the change in non-residential
assessed valuation due to new construction from the County of Orange is not available
until after the establishment of the Fiscal Year 2019-20 appropriations limitation and the
City reserves the right to adjust its Fiscal Year 2019-20 limitation as information regarding
the change in non-residential assessed valuation due to new construction is made
available by the County of Orange; and,
WHEREAS, the information necessary for making these adjustments is
attached as Exhibit A; and,
WHEREAS, the City of San Juan Capistrano has complied with all the
provisions of Article XlllB and amendments thereto per Proposition 111 in determining
the appropriations limitation for Fiscal Year 2019-20.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of
San Juan Capistrano does hereby:
1. Set the appropriations limitation for Fiscal Year 2019-20 at $84,237,651
as shown in attached Exhibit A
2. Determine that the amount of the appropriations of the City of San Juan
Capistrano for Fiscal Year 2019-20 that are subject to the limitation are $22,250, 195; and,
3. Declare that the appropriations of the City of San Juan Capistrano for
Fiscal Year 2019-20 that are subject to the limitation do not exceed the limitation.
1
ATTACHMENT 5
PASSED, APPROVED, AND ADOPTED this 4th day of June 2019.
BRIAN L. MARYOTT, MAYOR
ATTEST:
MARIA MORRIS, CITY CLERK
2
ATTACHMENT 5
EXHIBIT A
2019-20 'APPROPRIATION LIMITATION CALCULATION
2019-20 APPROPRIATIONS LIMITATION:
2018-19 Limitation
x Annual adjustment factors:
Population increase (for City)
Inflation charges (California personal income)
Combining adjustment factors
2019-20 Limitation
0.77% 1.0077
3.85% x 1.0385
$80,494,650
1.0465
$84,237,651
APPROPRIATIONS SUBJECT TO LIMITATION AND APPROPRIATIONS MARGIN:
Budget appropriation 2019-20
Less exclusions:
Non-proceeds of taxes
Qualified debt services
Qualified capital outlay
Total exclusions
Add change in fund balance
Total appropriations subject to limitation
Appropriations margin
(19,778,290)
(2, 171,235)
(889,000)
$35,501,220
(22,838,525)
9,587,500
$22,250, 195
$61,987,456
RESOLUTION NO. 19-06-04-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SAN JUAN CAPISTRANO, CALIFORNIA
ESTABLISHING THE PROPERTY TAX RATE FOR
VOTER-APPROVED BONDED INDEBTEDNESS (OPEN
SPACE MEASURE Y) FOR FISCAL YEAR 2019-20
WHEREAS, in the election of November 4, 2008, the voters of the City of San
Juan Capistrano approved bonded indebtedness and authorized the City Council of the
City of San Juan Capistrano to establish the rate of property tax required to generate an
amount of revenue from the tax base to provide sufficient moneys to pay debt service
on the voter-approved bonded indebtedness payable during the fiscal year ending June
30, 2019; and,
WHEREAS, the total net taxable secured assessed valuation of the City of San
Juan Capistrano is estimated to be $8, 198,555,000; and,
WHEREAS, the total amount of revenue necessary to provide sufficient funds to
pay debt service for the fiscal year ending June 30, 2020, is estimated to be
$1,846,000.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San
Juan Capistrano does hereby:
SECTION 1:
Set the property tax rate within the City for the City of San Juan Capistrano 2017
Taxable General Obligation Refunding Bonds (Open Space Measure Y) for the fiscal
year ending June 30, 2020, at $0.02252 per $100 assessed value.
SECTION 2 :
Authorize and direct the City Manager and the City Treasurer to take any and all
actions necessary to ensure that the Auditor-Controller of the County of Orange,
California makes this levy and causes to be collected the amounts requested in Section
1 hereof at the time and in the manner of levying other County taxes. These amounts
shall be reported separately as remittances are made to the City.
SECTION 3:
The City Clerk is hereby directed to furnish the Office of the Auditor-Controller,
County of Orange, Attn: Yani Painter, Property Tax Section, P.O. Box 567, Santa Ana,
CA 92702-0567.
1
ATTACHMENT 6
PASSED, APPROVED AND ADOPTED this 4th day of June 2019 .
BRIAN L. MARYOTT, MAYOR
ATTEST:
MARIA MORRIS, CITY CLERK
2
ATTACHMENT 6
RESOLUTION NO. 19-06-04-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SAN JUAN CAPISTRANO AMENDING RESOLUTION 18-
06-11-07, THE CITY'S CLASSIFICATION AND
COMPENSATION PLANS
WHEREAS, the City Council of the City of San Juan Capistrano is authorized and
directed under the City's Personnel Rules and Regulations to adopt and amend a
Personnel Classification and Compensation Plan in order to administer the City's
Personnel Management System; and,
WHEREAS, the City desires to amend the Personnel Classification and
Compensation Plans in order to implement revised salary schedules to include the new
classification of Engineering and Planning Technician (Exhibit A contains a copy of the
proposed job description) and add the existing classifications of Maintenance Mechanic,
Public Works Construction Inspector, Public Works Specialist 11, and Water and Sewer
Construction Inspector, as outlined in Exhibit B; and,
WHEREAS, the City desires to reclassify a Management Analyst (City Manager's
Department) to Senior Management Analyst; and,
WHEREAS, the City's Personnel Rules and Regulations provide that adoption or
amendment of the City's Personnel Classification and Compensation Plans shall be made
by resolution of the City Council.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San
Juan Capistrano does hereby amend Resolution No. 18-06-11-07, the City's Personnel
and Classification and Compensation Plans of the Classified Employees Association, as
set forth in Exhibit B; delete one Engineering Technician position (1 FTE), create the job
classification of and approve the job description for Engineering and Planning Technician,
and authorize one position (1 FTE) at Grade 42; and delete one Management Analyst
position (1 FTE) and add one Senior Management Analyst position (1 FTE) in the City
Manager's Department.
PASSED, APPROVED AND ADOPTED this 4th day of June, 2019.
BRIAN L. MARYOTT, MAYOR
ATTEST:
MARIA MORRIS, CITY CLERK
ATTACHMENT 7
CITY OF SAN JUAN CAPISTRANO
ENGINEERING & PLANNING TECHNICIAN
Class specifications are intended lo present a descriptive list of the range of duties performed by employees in the class.
Specifications are not intended to reflect all duties performed within the job.
DEFINITION
June 2019
To perform a wide variety of technical duties involved in receiving , processing and reviewing building,
planning , public works , and other assigned City permit applications ; to assist and provide information to
the public in person by telephone and email, regarding departmental policies and procedures; to conduct
plan checks; issue permits; perform a variety of tasks relative to assigned area of responsibility; and to
provide assistance to professional engineering, planning and other City departments.
SUPERVISION RECEIVED AND EXERCISED
Receives direct supervision from a Director or management staff member.
ESSENTIAL FUNCTION STATEMENTS: Essential responsibilities and duties may include , but are not
limited to, the following :
Essential Functions:
1. Provides assistance to the public at the front counter, via telephone and email ; responds to inquiries
and provides information on permit processes , policies, and procedures ; issues permit applications
and explains legal requirements pertaining to applications.
2 . Responds to requests and inquiries from developers, contractors, engineers, utility companies and
the general public ; provides general information regard ing engineering projects and studies .
3 . Conducts research and performs records retrieval; identifies City utility locations; locates utilities on
record maps and provides flood zone designations .
4 . Receives and reviews completed applications; monitors documentation for accuracy, completeness
and compliance with applicable codes, ordinances and regulations; advises applicants regarding
necessary corrections required.
5. Conducts plan checks and ensures compliance with applicable codes, ordinances and regulations;
recommends minor modifications.
6. Routes plans to appropriate staff; labels and logs information accordingly ; creates plan files and
tracks and monitors plan status ; notifies <:ontractors, owners, engineers and developers regarding
plan status .
7. Calculates and estimates fees for permits ; collects fees and issues receipts for various applications,
registrations and licenses; inputs related data into the appropriate software application.
8. Processes permits for tree removal, signs, temporary use, and/or special activities .
9 . Collects and compiles technical data and prepares related narratives and statistical reports.
10 . Prepares and maintains records and files on plans and permits ; assists the general public with
retrieval, copying and archiving of records; purges final permit files.
11. Posts and tracks public notices; prepares staff reports related to non-developer deposit applications
including zone variances and sign permits.
EXHIBIT A-Page 1 of 3
12. Coordinates project work with other City departments, outside agencies and/or utility companies;
13. Utilizes specialized software to prepare a variety of City maps including property information, street,
site and location maps; processes and maintains parcel and tract maps.
14. Performs a variety of general clerical functions in support of assigned office operations including
answering incoming calls, maintaining records, researching land and easement information, and
preparing departmental reports .
15. Performs related duties and responsibilities as required.
QUALIFICATIONS
Knowledge of:
• Principles and practices of urban planning.
• Basic civil engineering principles and practices .
• Methods and techniques of effective customer service.
• Permit applications and related documentation.
• Processes for reviewing plans, issuing permits, and conducting plan check.
• General office practices, procedures and equipment.
• Standard computer software applications .
• Principles and procedures of record keeping.
• English usage, spelling, grammar and punctuation.
• Pertinent Federal, State and local laws, codes and regulations.
Skill in:
• Processing building, planning, zoning, and other assigned City permits.
• Responding to inquiries and providing customer service to the public.
• Explaining City policies and procedures related to the permit process.
• Conducting plan checks and monitoring for regulatory compliance.
• Calculating, collecting, and recording fees received.
• Processing and coordinating small projects.
• Maintaining accurate records and preparing a variety of reports.
• Operating office equipment and utilizing standard computer software applications.
• Understanding and following oral and written instructions.
• Communicating clearly and concisely, both orally and in writing.
• Establishing and maintaining effective working relationships with those contacted in the course of
work.
EXPERIENCE AND TRAINING GUIDELINES
Any combination of experience and training that would likely provide the required knowledge and
abilities is qualifying. A typical way to obtain the knowledge and abilities would be:
Experience:
One year of technical experience involving engineering and/or urban planning; and two years of
administrative support experience involving public contact and customer service.
Training:
Equivalent to the completion of twelfth grade supplemented by college level course work in
engineering , urban planning or a related field.
EXHIBIT A -Page 2 of 3
WORKING CONDITIONS
Environmental Conditions:
Office environment; extensive public contact.
Physical Conditions:
Essential functions require maintaining physical condition necessary for sitting or standing for
prolonged periods of time at a desk and public counter; extensive use of computer keyboards; and
visual acuity for reading permit applications, maps, and drawings.
EXHIBIT A -Page 3 of 3
EXHIBIT B
CITY OF SAN JUAN CAPISTRANO Effective Date: June 4 , 2019
Compensation Plan
Classified Employee Association
Monthly Salary Schedule
Class Title Grade stee 1 stee 2 stee3 stee 4 stee s
Ut iliti es Ope rator Trainee 11 2 ,322 2,438 2,560 2,688 2,822
Receptionist 12 2,381 2 ,500 2,624 2,758 2,894
Office Assistant 25 3,280 3,446 3,618 3,797 3,988
Accounting Clerk 33 3,996 4,197 4,407 4,628 4,858
Public Works Specialist I 33 3,996 4 ,197 4,407 4,628 4,858
Accounting Specialist 35 4 ,199 4,409 4,630 4,861 5,104
Customer Service Representative 35 4,199 4,409 4,630 4,861 5,104
Utilities Operator I 35 4,199 _4,409 4,630 4,861 5,104
Public Works Specialist II 35 4 ,199 4,409 4 ,630 4 ,861 5,104
Administrative Specialist 36 4 ,304 4,520 4,745 4,983 5,232
Field Customer Service Representative 37 4,412 4,632 4,864 5,108 5,363
Senior Accounting Specialist 39 4 ,636 4 ,867 5, 111 5,366 5,634
Utilities Operator II 39 4,636 4,867 5, 111 5,366 5,634
Senior Public Works Specialist 40 4 ,751 4 ,989 5,239 5,501 5,776
Utilities Operator II (GWRP) 41 4 ,871 5, 113 5,369 5,639 5,920
Administrative Coordinator 42 4 ,992 5 ,242 5,504 5,779 6,068
Deputy City Clerk 42 4,992 5,242 5,504 5 ,779 6 ,068
Engineering Technician 42 4,992 5,242 5 ,504 5,779 6 ,068
rn Engineering & Planning Technician 42 4,992 5 ,242 5,504 5,779 6,068 x ::r: Human Resources Assistant 42 4,992 5,242 5,504 5,779 6,068
OJ Planning Technician 42 4 ,992 5,242 5,504 5,779 6 ,068 --i
OJ Records Coordinator 42 4 ,992 5,242 5 ,504 5,779 6 ,068
"'U Community Services Coordinator 43 5, 116 5,373 5,642 5,923 6,219
Q.l Executive Assistant 44 5,245 5,507 5,782 6,071 6,374 co
CD GIS Specialist 44 5,245 5,507 5,782 6,071 6,374 -->.
0 Maintenance Mechanic -44 5,245 5,507 5,782 6,071 6 ,374
0) Permit Technician 44 5 ,245 5,507 5,782 6,071 6,374
EXHIBIT B
Class Title Grade stee 1 stee 2 stee3 stee 4 stee s
Utilities Operator Ill 45 5,375 5,645 5,927 6,223 ,6,534
Engineering Assistant 46 5,511 5,785 6,074 6,379 6,697
Senior Permit Technician 46 5,511 5,785 6,074 6,379 6,697
Public Works Supervisor 47 5,649 5,930 6,227 6 ,538 6,866
Senior Citizens Program Coordinator 47 5,649 5,930 6,227 6 ,538 6,866
Utilities Operator Ill (GWRP) 47 5,649 5,930 6,227 6,538 6,866
Accountant 48 5,790 6,079 6,382 6,701 7,037
Assistant Planner 48 5,790 6,079 6 ,382 6,701 7,037
Customer Service Supervisor 48 5,790 6 ,079 6 ,382 6 ,701 7 ,037
Housing Coordinator/Assistant Planner 48 5,790 6,079 6 ,382 6 ,701 7,037
Senior Executive Assistant 48 5,790 6,079 6,382 6 ,701 7,037
Building and Grading Inspector 49 5,933 6,230 6,542 6,869 7,212
Code Enforcement Officer 49 5,933 6,230 6,542 6,869 7,212
Public Works Construction Inspector 49 5,933 6,230 6,542 6 ,869 7,212
Water Conservation Coordinator 49 5,933 6,230 6,542 6 ,869 7,212
Associate Planner 52 6 ,390 6,711 7,045 7 ,397 7,767
Housing Supervisor/Associate Planner 52 6,390 6,711 7 ,045 7 ,397 7,767
Water Construction Inspector 52 6,390 6 ,711 7,045 7,397 7 ,767
Utility Programs Supervisor 53 6,550 6 ,878 7,222 7 ,583 7 ,961
Assistant Engineer 54 6,714 7,049 7,401 7,772 8,160
Water and Sewer Construction Inspector 54 6,714 7,049 7,401 7,772 8,160
Utilities Superintendent 57 7,229 7,591 7,972 8,369 8,788
Associate Engineer 58 7,410 7,781 8,170 8,578 9,008
Associate Civil Engineer 60 7,781 8,170 8,578 9,008 9,458
Chief Plant Operator 61 7,980 8,379 8,798 9,239 9,700
m >< I
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EXHIBIT B
CITY OF SAN JUAN CAPISTRANO Effective Date: July 1, 2019
Compensation Plan
Classified Employee Association
Monthly Salary Schedule
Class Title Grade stee 1 stee 2 stee3 stee 4 stee s
Utilities Operator Trainee 11 2,391 2,511 2,637 2,768 2,907
Receptionist 12 2,452 2,575 2,703 2,841 2,981
Office Assistant 25 3,379 3,549 3,726 3,911 4,108
Accounting Clerk 33 4,116 4,323 4,540 4,767 5,004
Public Works Specialist I 33 4, 116 4 ,323 4 ,540 4,767 5 ,004
Accounting Specialist 35 4,325 4,542 4,769 5,007 5,257
Customer Service Representative 35 4,325 4,542 4,769 5,007 5,257
Public Works Specialist II 35 4,325 4,542 4,769 5,007 5,257
Utilities Operator I 35 4,325 4,542 4,769 5,007 5,257
Administrative Specialist 36 4,434 4,655 4,887 5,132 5,389
Field Customer Service Representative 37 4,544 4,771 5,010 5,261 5,524
Senior Accounting Specialist 39 4,775 5,013 5,265 5,527 5,804
Utilities Operator II 39 4,775 5,013 5,265 5,527 5,804
Senior Public Works Specialist 40 4,894 5 ,138 5,396 5,666 5,950
Utilities Operator II Ground Water Treatment Plant 41 5,017 5,267 5,530 5,808 6,098
Administrative Coordinator 42 5,142 5,399 5,669 5,953 6,250
Deputy City Clerk 42 5,142 5 ,399 5 ,669 5,953 6,250
Engineering Technician 42 5 ,142 5 ,399 5 ,669 5 ,953 6 ,250
rn Engineering & Planning Technician 42 5,142 5 ,399 5,669 5,953 6,250 >< Human Resources Assistant 42 5,142 5,399 5,669 5,953 6,250 I
OJ Planning Technician 42 5,142 5,399 5,669 5,953 6,250 _,
Records Coordinator 42 5 ,142 5,399 5,669 5,953 6,250 OJ
Community Services Coordinator 43 5 ,270 5,535 5,811 6,101 6,406
"'U Executive Assistant 44 5,402 5,672 5,956 6,253 6,565 ru cc GIS Specialist 44 5,402 5,672 5,956 6,253 6,565 CD
w Maintenance Mechanic 44 5,402 5,672 5 ,956 6,253 6,565 0 -Permit Technician 44 5,402 5 ,672 5,956 6,253 6 ,565 O')
EXHIBIT B
Class Title Grade stee 1 stee 2 stee3 stee 4 stee s
Utilities Operator Ill 45 5,537 5,814 ·, 6,105 6,410 6,730
Engineering Assistant 46 5,676 5,959 6,256 6,570 6,898
Senior Permit Technician 46 5,676 5,959 6,256 6,570 6,898
Public Works Supervisor 47 5,818 6,108 6,414 6,734 7,072
Senior Citizens Program Coordinator 47 5,818 6,108 6,414 6,734 7,072
Utilities Operator Ill -Treatment Plant 47 5,818 6,108 6,414 6,734 7,072
Accountant 48 5,963 6,262 6,574 6,902 7,248
Assistant Planner 48 5,963 6,262 6,574 6,902 7,248
Customer Service Supervisor 48 5,963 6,262 6,574 6,902 7,248
Housing Coordinator/Assistant Planner 48 5,963 6,262 6,574 6,902 7,248
Senior Executive Assistant 48 5,963 6,262 6,574 6,902 7,248
Building and Grading Inspector 49 6, 111 6,417 6,739 7,075 7,429
Code Enforcement Officer 49 6, 111 6,417 6,739 7,075 7,429
Public Works Construction Inspector 49 6, 111 6,417 6,739 7,075 7,429
Water Conservation Coordinator 49 6, 111 6,417 6,739 7,075 7,429
Associate Planner 52 6,582 6,912 7,256 7,619 8,000
Housing Supervisor/Associate Planner 52 6,582 6,912 7,256 7,619 8,000
Water Construction Inspector 52 6,582 6,912 7,256 7,619 8,000
Utility Programs Supervisor 53 6,747 7,084 7,438 7,810 8,200
Assistant Engineer 54 6,915 7,261 7,623 8,006 8,405
Water and Sewer Construction Inspector 54 6,915 7,261 7,623 8,006 8,405
Utilities Superintendent 57 7,446 7,819 8,211 8,621 9,052
Associate Engineer 58 7,633 8,014 8,415 8,836 9,278
Associate Civil Engineer 60 8,014 8,415 8,836 9,278 9,742
Chief Plant Operator 61 8,220 8,631 9,061 9,516 9,991
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EXHIBIT B
CITY OF SAN JUAN CAPISTRANO Effective Date : July 1, 2020
Compensation Plan
Classified Employee Association
Monthly Salary Schedule
Class Title Grade stee 1 stee 2 Stee3 stee 4 stee s
Utilities Operator Trainee 11 2,475 2 ,599 2 ;729 2,865 3,009
Receptionist 12 2,538 2 ,665 2,798 2,940 3,085
Office Assistant 25 3,497 3,673 3,857 4,048 4,252
Accounting Clerk 33 4 ,260 4,475 4 ,699 4,933 5,179
Public Works Specialist I 33 4 ,260 4,475 4 ,699 4,933 5,179
Accounting Specialist 35 4,477 4,701 4 ,936 5,182 5,441
Customer Service Representative 35 4,477 4 ,701 4,936 5,182 5,441
Utilities Operator I 35 4,477 4,701 4,936 5,182 5,441
Public Works Specialist II 35 4,477 4,701 4,936 5 ,182 5,441
Administrative Specialist 36 4 ,589 4,818 5 ,058 5,312 5,577
Field Customer Service Representative 37 4 ,703 4 ,938 5,186 5,446 5,717
Senior Accounting Specialist 39 4 ,942 5 ,189 5,449 5,721 6,007
Utilities Operator II 39 4 ,942 5,189 5,449 5,721 6,007
Senior Public Works Specialist 40 5 ,065 5,318 5,585 5 ,864 6,158
Utilities Operator II Ground Water Treatment Plant 41 5,192 5 ,451 5,724 6,011 6,311
Administrative Coordinator 42 5,322 5,588 5,867 6,161 6,469
Deputy City Clerk 42 5,322 5,588 5 ,867 6,161 6,469
Engineering Technician 42 5,322 5,588 5,867 6,161 6 ,469
m Engineering & Planning Technician 42 5,322 5,588 5,867 6,161 6,469 >< I Human Resources Assistant 42 5 ,322 5,588 5,867 6,161 6,469
OJ Planning Technician 42 5,322 5,588 5 ,867 6,161 6 ,469 --i
OJ Records Coordinator 42 5 ,322 5 ,588 5,867 6 ,161 6,469
""U Community Services Coordinator 43 5,454 5 ,728 6 ,014 6,314 6,630
Q) Executive Assistant 44 5,591 5 ,871 6,164 6,472 6,795 co
('[) GIS Specialist 44 5,591 5 ,871 6,164 6,472 6,795 U1
0 Maintenance Mechanic 44 5,591 5,871 6 ,164 6 ,472 6 ,795 -CJ) Permit Technician 44 5 ,591 5 ,871 6 ,164 6 ,472 6,795
EXHIBIT B
Class Title Grade Stee 1 stee 2 stee3 stee 4 stee s
Utilities Operator Ill 45 5,730 6,018 6,319 6,634 6,966
Engineering Assistant 46 5,875 6,168 6,475 6,800 7,140
Senior Permit Technician 46 5,875 6,168 6,475 6,800 7,140
Public Works Supervisor 47 6,022 6,322 6,638 6,970 7,319
Senior Citizens Program Coordinator 47 6,022 6,322 6,638 6,970 7,319
Utilities Operator Ill -Treatment Plant 47 6,022 6,322 6,638 6,970 7,319
Accountant 48 6,172 6,481 6,804 7,144 7,502
Assistant Planner 48 6,172 6,481 6,804 7,144 7,502
Customer Service Supervisor 48 6,172 6,481 6,804 7,144 7,502
Housing Coordinator/Assistant Planner 48 6,172 6,481 6,804 7,144 7,502
Senior Executive Assistant 48 6,172 6,481 6,804 7,144 7,502
Building and Grading Inspector 49 6,325 6,642 6,974 7,322 7,689
Code Enforcement Officer 49 6,325 6,642 6,974 7,322 7,689
Public Works Construction Inspector 49 6,325 6,642 6,974 7,322 7,689
Water Conservation Coordinator 49 6,325 6,642 6,974 7,322 7,689
Associate Planner 52 6,812 7,154 7,510 7,886 8,280
Housing Supervisor/Associate Planner 52 6,812 7,154 7,510 7,886 8,280
Water Construction Inspector 52 6,812 7,154 7,510 7,886 8,280
Utility Programs Supervisor 53 6,983 7,332 7,699 8,084 8,487
Assistant Engineer 54 7,157 7,515 7,890 8,286 8,699
Water and Sewer Construction Inspector 54 7,157 7,515 7,890 8,286 8,699
Utilities Superintendent 57 7,707 8,093 8,498 8,922 9,369
Associate Engineer 58 7,900 8,294 8,710 9,145 9,603
Associate Civil Engineer 60 8,294 8,710 9,145 9,603 10,083
Chief Plant Operator 61 8,508 8,933 9,379 9,849 10,341
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CITY OF SAN JUAN CAPISTRANO
INVESTMENT POLICY
FIRST ADOPTED: APRIL 4, 1995
LAST REVIEW AND AMENDMENT: JUNE 2011, 20-1-72018
CURRENT REVIEW AND AMENDMENT: JUNE 11, 20184, 2019
I. POLICY STATEMENT
It is the policy of the City of San Juan Capistrano (City) to invest public funds in a
manner which will provide security of principal invested, meet the daily cash flow
needs of the City, seek to achieve a market rate of return throughout budgetary
and economic cycles, and conform to the California Government Code sections
governing the investment of public funds.
II. SCOPE
This Investment Policy applies to all financial assets and funds held by the City of
San Juan Capistrano with the exception of deferred compensation assets (pension
and other post-employment benefits) held in a trust and funds held by bond trustee
that are controlled by the legal requirements of a debt indenture. For purposes of
this policy, the "City of San Juan Capistrano" includes all funds of the City, the
funds of the Successor Agency to the Community Redevelopment Agency of the
City of San Juan Capistrano, the funds of the San Juan Capistrano Housing
Authority, and the funds of any component unit that may be established by the
City.
Ill. OBJECTIVES
The primary objectives, in priority order, of the City of San Juan Capistrano's
investment activities shall be:
A. SAFETY OF PRINCIPAL -Safety of principal is the foremost objective of
the City. Investments of the City shall be undertaken in a manner that seeks
to insure the preservation of capital in the portfolio. One of the methods to
obtain this goal is diversification which is required in the portfolio's
composition.
B . LIQUIDITY -The City's investment portfolio will remain sufficiently liquid to
enable it to meet all operating requirements which might be reasonably
anticipated. "Liquidity" refers to the ability to sell at any given moment with
a minimal chance of losing some portion of principal or interest.
C . RETURN -The City's investment portfolio shall be designed with the
objective of attaining a market average rate of return throughout budgetary
and economic cycles, taking into account the City's risk constraints and
cash flow needs.
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The City shall not engage in any activity that is designed to raise funds specifically
for the purpose of investing (i.e., borrowing funds to invest, or leveraging). The City
is not restricted from investing proceeds from a bonafide debt issuance in
accordance with this investment policy until such time as funds are needed for the
purpose intended.
IV. DELEGATION OF AUTHORITY
A. The authority of the City Council to invest or reinvest funds of the City is
delegated to the Chief Financial Officer (hereafter referred to as "City
Treasurer"), who shall thereafter assume full responsibility for those
transactions until the delegation of authority is revoked or expires. Subject
to review, the City Council may renew the delegation of authority each year.
B . The City may delegate investment authority to an investment advisor. The
advisor will follow the Investment Policy and such other written instructions
as are provided.
C . The City Treasurer shall designate a staff person as a liaison/deputy in the
event circumstances require timely action and the City Treasurer is not
present.
D . No officer or designee may engage in an investment transaction except as
provided under terms of this Investment Policy and the procedures
established by the City Treasurer and approved by the City Manager.
E . The City Treasurer shall be responsible for all transactions undertaken and
shall establish a system of controls to regulate the activities of subordinate
officials.
F. The City Treasurer and other personnel involved in the investment process
shall refrain from personal business activities that could conflict with proper
execution of the investment program, or which could impair their ability to
make impartial investment decisions.
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V. PRUDENCE
A. The standard of prudence to be used in the investment function shall be the
"prudent investor" standard and shall be applied in the context of managing
the overall portfolio. This standard states, "When investing, reinvesting,
purchasing, acquiring, exchanging, selling, or managing public funds, a
trustee shall act with care, skill, prudence, and diligence under the
circumstances then prevailing, including, but not limited to, the general
economic conditions and the anticipated needs of the agency, that a
prudent person acting in a like capacity and familiarity with those matters
would use in the conduct of funds of a like character and with like aims, to
safeguard the principal and maintain the liquidity needs of the agency."
B . The City Treasurer, acting in accordance with written procedures and this
Investment Policy, shall not be held personally accountable for a specific
security's credit risk or market price change, provided that any unexpected
deviations are reported in a timely manner and that appropriate action is
taken to control adverse development.
C . The City may invest debt issuance proceeds to match or meet the
anticipated timing of the expenditures. The City may not incur debt with the
specific and sole purpose of arbitrage investment.
~-INTERNALCONTROLSflNVESTMENTPROCEDURES
A The City Treasurer shall establish a system of internal controls which will
be reviewed annually by the independent auditor. The controls shall be
designed to prevent loss of public funds due to fraud, employee error,
misrepresentation by third parties, unanticipated market changes or
imprudent actions by employees of the City of San Juan Capistrano.
B . The City Treasurer shall develop and maintain investment procedures for
the operation of the investment program which are consistent with this
Investment Policy. Procedures wUl------may include reference to
safekeeping/custody, wire transfer agreements, collateral and deposit
agreements, and other investment related activities.
VII. AUTHORIZED INVESTMENTS
Where this Policy specifies a percentage limitation for a particular security type or
issuer, that percentage is applicable at the time the security is purchased.
Diversification criteria listed in Section VIII and credit criteria listed in this section
refers to the credit rating at the time the security is purchased. If an investment's
credit rating falls below the minimum rating required at the time of purchase, the
City's investment advisor (if any) and Treasurer will review the rating agency action
may at his or her option sell the affected investment, but is not required to do so.
The Treasurer has the same option with respect to the Diversification criteria listed
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in Section VIII. Investments that complied with Investment type and per issuer
limitations at the time of purchase do not become noncompliant if at a later date
the percentage of the portfolio applicable to that investment changes as a result of
a change in the size of the portfolio.
A . United States Treasury notes, bonds, bills, or certificates of indebtedness,
or those for which the faith and credit of the United States are pledged for
the payment of principal and interest.
B . Federal agency or United States government-sponsored enterprise
obligations, participations, or other instruments, including those issued by
or fully guaranteed as to principal and interest by federal agencies or United
States government sponsored enterprises.
C. FDIC insured or fully collateralized demand deposit accounts, savings
accounts, market rate accounts, time certificates of deposits ("TCDs") and
other types of bank deposits in financial institutions located in the State of
California. In accordance with California Government Code Section
53635.2, to be eligible to receive City deposits, a financial institution shall
have received an overall rating of not less than "satisfactory" in its most
recent evaluation by the appropriate federal financial supervisory agency of
its record of meeting the credit needs of California's communities.
Certificates of deposit are required to be collateralized as specified under
Government Code Section 53630 et seq. The City, at its discretion, may
waive the collateralization requirements for any portion that is covered by
Federal Deposit Insurance Corporation (FDIC) insurance. The City shall
have a signed agreement with any depository accepting City funds per
Government Code Section 53649. No deposits shall be made with a state
or federal credit union if a member of the City Council or the Chief Financial
Officer serves on the board of directors or any committee appointed by the
board of directors of the credit union. In accordance with Government Code
Section 53638, any deposit shall not exceed that total shareholder's equity
of any depository bank, nor shall the deposit exceed the total net worth of
any institution.
D. Negotiable certificates of deposit issued by a nationally or state-chartered
bank, a savings association or a federal association (as defined by Section
5102 of the Financial Code), a state or federal credit union, or by a federally-
or state-licensed branch of a foreign bank. Negotiable certificates of deposit
with maturities in excess of one year must be rated in a rating category of
"A" or its equivalent or better by at least two (NRSROs). Negotiable
certificates of deposit with maturities under one year must be rated in a
rating category of "A-1" its equivalent or better by at least two nationally
recognized statistical-rating organizations (NRSRO). No more than 30% of
the City's investment portfolio may be invested in negotiable certificates of
deposit.
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ATTACHMENT 8
E . Shares of beneficial interest issued by diversified management companies
that are money market funds registered with the Securities and Exchange
Commission under the Investment Company Act of 1940 (15 U.S.C. Sec.
80a-1, et seq.). To be eligible for investment pursuant to this subdivision
these companies shall either: have an investment advisor registered or
exempt from registration with the Securities and Exchange Commission
with not less than 5 years of experience managing money market mutual
funds and with assets under management in excess of $500,000,000, or
attain the highest ranking letter or numerical rating provided by not less than
two of the three largest NRSROs.
F. The State of California Local Agency Investment Fund (LAIF), as authorized
by the Government Code Section 16429.1 .
G . Orange County Investment Pool, as authorized by the Government Code
Section 53684.
H. Local government investment pools (LGIPs), as authorized by the
Government Code Section 53601 (p ).
I. Taxable or tax-exempt warrants, notes, bonds or similar evidences of
indebtedness issued by the State of California, a department, board,
agency, or authority of the State, or any local agency within the State of
California having received a rating in a rating category of "A" its equivalent
or better by at least two NRSROs. Obligations eligible for investment under
this subdivision with maturities under one year must be rated in a rating
category of "A-1" its equivalent or better by two NRSROs.
J . Registered treasury notes or bonds of any of the other 49 states in addition
to California, including bonds payable solely out of the revenues from a
revenue-producing property owned, controlled, or operated by a state or by
a department, board, agency, or authority of any of the other 49 states, in
addition to California. Obligations eligible for investment under this
subdivision must be rated in a rating category of "A" or its equivalent or
better by at least two NRSROs. Obligations eligible for investment under
this subdivision with maturities under one year must be rated in a rating
category of "A-1" or its equivalent or better by two NRSROs.
K. Bankers' acceptances that are drawn on and accepted by a commercial
bank. Eligible bankers' acceptances shall have the highest ranking or the
highest letter and number rating in the rating category as provided for by at
least two NRSROs and a maximum maturity of 180 days.
L. Commercial paper of "prime" quality of the highest ranking or of the highest
letter and number rating as provided for by at least two NRSROs. The entity
that issues the commercial paper shall meet all of the following conditions
in either paragraph (1) or paragraph (2):
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ATTACHMENT 8
1) The entity meets the following criteria:
a. Is organized and operating in the United States as a general
corporation.
b. Has total assets in excess of five hundred million dollars
($500,000,000).
c. Has debt other than commercial paper, if any, that is rated in a rating
category of "A" or higher or its equivalent by at least two NRSROs.
2) The entity meets the following criteria:
a. Is organized within the United States as a special purpose
corporation, trust, or limited liability company.
b. Has program wide credit enhancements including, but not limited to,
over collateralization, letters of credit, or surety bond.
c. Has commercial paper that is rated in a rating category of "A-1" or
higher or its equivalent by at least two NRSROs.
Eligible commercial paper shall have a maximum maturity of 270 days.
Investments may not represent more than 10% of the outstanding
commercial paper of any single corporate issue.
M. Medium-term corporate notes, defined as all corporate and depository
institution debt securities with a maximum remaining maturity of 5 years or
less, issued by corporations organized and operating within the United
States or by depository institutions licensed by the United States or any
state and operating within the United States. Medium-term corporate notes
shall be rated in a rating category "A" or its equivalent or better by at least
two NRSROs.
N. Supranationals, defined as United States dollar denominated senior
unsecured unsubordinated obligations issued or unconditionally
guaranteed by the International Bank for Reconstruction and Development
(IBRD), International Finance Corporation (IFC), or Inter-American
Development Bank (IADB), with a maximum remaining maturity of five years
or less, and eligible for purchase and sale within the United States.
Investments under this subdivision shall be rated in a rating category of
"AAA" or its equivalent or better by at least two NRSROs.
0. Asset-Backed Securities (ABS),, __ §::--Any mortgage pass-through security,
collateralized mortgage obligation, mortgage-backed or other pay-through
bond, equipment lease-back certificate, consumer receivable pass-through
certificate, or consumer receivable-backed bond of a maximum of five years
maturity from issuers not defined in sections A and B of the Authorized
Investments section of this policy. Securities eligible for investment under
this subdivision shall be issued by an issuer that has a rating in a rating
category of "/\" or its equi 1.ialent or better for tho issuer's debt by at leas t two
by NRSROs and rated in a rating category of "AA" or its equivalent or better
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ATTACHMENT 8
by at least two NRSROs.
If additional types of securities are approved for investment of public funds by the
California Government Code, they will not be eligible for investment by the City of
San Juan Capistrano until this Investment Policy is amended and the amendment
is passed by the City Council.
VIII. DIVERSIFICATION AND MATURITY
A. It is the policy of the City to diversify its investment portfolio. Invested funds
shall be diversified to minimize the risk of loss resulting from over
concentration of assets in a specific maturity, specific issuer, or specific
class of securities. Diversification strategies shall be established and
periodically reviewed by the City Treasurer and City Manager. The minimum
diversification standards by security type and issuer shall be:
U.S. Treasuries and securities having principal and interest
guaranteed by the U.S. Government.. ........................................................... 100%
U.S. Government agencies, instrumentalities and government
Sponsored enterprises ............................................................. no more than 100%
Bank Deposits ........................................................................... no more than 25%
Negotiable CDs ......................................................................... no more than 30%
Money market funds.:.:..:. .............................................. no more than 20% combined
Local Agency Investment Funds (LAIF) ................................... no more than 100%
Orange County Investment Pool. ............................................... no more than 40%
Local government investment pools (LGIPs) ............................ no more than 40%
Municipal obligations ................................................................. no more than 25%
Bankers' acceptances ............................................................... no more than 30%
Commercial paper ..................................................................... no more than 25%
Medium-term corporate notes ..................................................... no more than 30%
International Bank for Reconstruction and Development
(IBRD), International Finance Corporation (IFC), and
Inter-American Development Bank (IADB) (Supranationals) no more than 15%
Asset-Backed Securities , Mortgage Pass Throughs and CMOs from issuers not
defined in sections A and B of the Authorized Investments ....... no more than 20%
No more than 3% of the City's investment portfolio may be invested in the
securities of any one issuer regardless of security type excluding U.S. Treasuries,
U.S. Government agencies, FDIC-insured CDs, Supranationals, and pooled
investments such as LAIF, LGIPs, and money market funds.
B. The City shall not invest in a security whose maturity exceeds five years
from the date of purchase unless City Council has provided approval for a
specific purpose at least 90 days before the investment is made.
C The City Treasurer shall select investment maturities such that they provide
necessary liquidity, manage interest rate risk, and optimize earnings.
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ATTACHMENT 8
Because of inherent difficulties in accurately forecasting cash flow
requirements, the weighted average maturity of the investment portfolio
shall not exceed 3.0 years . For those investment types for which this Policy
does not specify a maturity limit, no individual investment shall exceed a
matu ri ty of five years from the date of purchase unless the City Council has
granted express authority to purchase that investment e ither specifically or
as a part of an investment program approved by the City Council no less
t han th ree months prior to purchase of the investmen t.
IX. PROHIBITED INVESTMENT VEHICLES AND PRACTICES
• State law notwithstanding, any investments not specifically described
herein are prohibited, including, but not limited to futures and options .
• In accordance with California Government Code, Section 53601 .6
investment in inverse floaters, range notes. or mortgage-derived interest-
only strips is prohibited.
• Investment in any security that could result in a zero interest accrual if held
to maturity is prohibited.
• Trading securities for the sole purpose of speculating on the future direction
of interest rates is prohibited.
• Purchasing or selling securities on margin is prohibited .
• The use of reverse repurchase agreements, securities lending or any other
form of borrowing or leverage is prohibited.
• The purchase of foreign currency denominated securities is prohibited .
lX. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
For investment purchases made directly by City personnel, the City Treasurer will
maintain a list of financial dealers and institutions qualified and authorized to
transact bus iness with the City.
The purchase by the City of any investment other than those purchased directly
from the issuer, will be purchased either from an institution licensed by the State
as a broker-dealer, as defined in Section 25004 of the Corporations Code , which
is a member of the Financial Industry Regulatory Authority (FINRA), or a member
of a federally regu lated securities ex change, a national or state chartered bank, a
federal or state association (as defined by Section 5102 of the Financial Code), or
a brokerage firm designated as a Primary Government Dealer by the Federal
Reserve Ba n k.
The City Treasurer will investigate all institutions that wish to do business with the
City to dete rmine if they are adequately capitalized, make markets in securities
appropriate for the City 's needs , and agree to abide by the conditions set forth in
this City's Investment Policy and any other guidelines that may be provided . This
w ill be done annually by having t he fi nancial institutions :
1. Prov ide written notification that they have read, and w ill abide by, the City's
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ATTACHMENT 8
Investment Policy .
2. Submit their most recent audited Financial Statement within 120 days of the
institution's fiscal year end.
If the City has an investment advisor, the investment advisor may use its own list
of authorized broker/dealers to conduct transactions on behalf of the City.
Purchase and sale of securities will be made on the basis of competitive bids and
offers with a minimum of three quotes being obtained.
This section does not apply to investment purchases under the direct management
of a professional investment management firm approved by the City Council.
XI. INVESTMENT POOLS
The City Treasurer will perform an annual review of the investment policy .
XI!. SAFEKEEPING/CUSTODY AND COLLATERALIZATION
A. All security transactions entered into by the City shall be conducted on a
delivery versus payment (DVP) basis.
B. Where applicable, all securities shall be held by a third-party bank custodian
designated by the City Treasurer. The third-party custodian shall be
required to issue a safekeeping receipt to the City listing the specific
instrument, rate, maturity and other pertinent information. The only
exception to the foregoing shall be depository accounts and securities
purchases made with: (i) LAIF and local government investment pools; (ii)
placement certificates of deposit, and, (iii) money market mutual funds,
since the purchased securities are not deliverable. Evidence of each these
investments will be held by the City Treasurer.
C . Collateralization on bank deposits (including Certificates of Deposit and
Passbook Savings Account Demand Deposit) shall be required in
accordance with state law.
XII!. REPORTING
A. The City Treasurer shall make a monthly report of investment transactions
and holdings to the City Council.
B. If the City has an investment advisor, the investment advisor shall
periodically report on the activity and results of the funds being managed by
the investment advisor.
C. The City Treasurer shall include a report on investment holdings in the City's
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ATTACHMENT 8
Comprehensive Annual Financial Report as required by generally accepted
accounting principles (GAAP) and the Governmental A ccounting Standards
Board (GASB).
XIVU. PERFORMANCE EV ALUATION
The City shall monitor performance of the portfolio in conjunction wi t h input from
the Ci ty's professional investment manager.
XIV. INVESTMENT POLI CY ADOPTIO N
The City's Investment Policy shall be reviewed periodically. Any recommended
modification s shall be reviewed and approved by the City Council.
XVI. GLOSSARY OF INVESTMENT TERMS
AGENCIES. Shorthand market terminology for any obligation issued by a government-sponsored
entitv (GSEJ. or a federally related institution. Most obligations of GSEs are not guaranteed
by the full faith and credit of the US government. Exampl es are:
FFCB. The Federal Farm Credit Ban k System provides credit and liquidity in the
agricultural industry. FFCB issues discount notes and bonds.
FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market.
FHLB issues discount notes and bonds.
FHLMC. Like FHLB. the Federal Home Loan Mortgage Corporation provides credit and
liquidity in the housing market. FHLMC, also called "FreddieMac" issues discount
notes , bonds and mortgage pass -through securities .
FNMA. Like FHLB and FreddieMac, the Federal National Mortgage Association was
established to provide credit and liquidity in the housing market. FNMA. also known
as "FannieMae," issues discount notes . bonds and mortgage pass-through securities.
GNMA. The Government National Mortgage Association. known as "GinnieMae ," issues
mortgage pass-through securities, which are guaranteed by the full faith and credit of
the US Government.
PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO
are not guaranteed by the full faith and credit of the US government.
TVA. The Tennessee Valley Authority provides flood contro l and power and promot es
development in portions of the Tennessee, Ohio, and Mississippi River valleys . TVA
currently issues discount notes and bonds.
AsKED. The price at which a seller offers to se ll a security.
AsSET BACKED SECURITIES. Securities supported by pools of installment loans or leases or by
pools of revolving lines of credit.
AVERAGE LIFE. In mortgage-related investments. including CMOs . the average time to expected
receipt of princ ipa l payments. weighted by the amount of principal expected .
BANKER'S ACCEPTANCE. A money market instrument created to facilitate international trade
transactions. It is high ly liquid and safe because the risk of the trade transaction is
transferred to the bank which "accepts" the obligation to pay the investor.
BENCHMARK. A comparison security or portfolio. A performance benchmark is a partial market
index. which reflects the mix of securities allowed under a specific investment policy .
BID . Th e price at wh ich a b uyer offers to bu y a se c urity.
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BROKER. A broker brings buyers and sellers together for a transaction for which the broker
receives a commission. A broker does not sell securities from his own position.
CALLABLE. A callable security gives the issuer the option to call it from the investor prior to its
maturity . The main cause of a call is a decline in interest rates. If interest rates decline
since an issuer issues securities, it will likely call its current securities and reissue them at
a lower rate of interest. Callable securities have reinvestment risk as the investor may
receive its principal back when interest rates are lower than when the investment was
initially made.
CERTIFICATE OF DEPOSIT (CD). A time deposit with a specific maturity evidenced by a certificate.
Large denomination CDs may be marketable.
CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY S YSTEM (CDARS). A private placement service
that allows local agencies to purchase more than $250,000 in CDs from a single financial
institutio n (must be a participating institution of CDARS) while still maintaining FDIC
insurance coverage. CDARS is currently the only entity providin.g this service. CDARS
facilitates the trading of deposits between the California institution and other participating
institutions in amounts that are less t han $250,000 each. so that FDIC coverage is
maintained.
COLLATERAL. Securities or cash pledged by a borrower to secure repayment of a loan or
repurchase agreement. Also. securities pledged by a financial institution to secure
deposits of public monies.
COLLATERALIZED MORTGAGE OBLIGATIONS (CMO). Classes of bonds that redistribute the cash
flows of mortgage securities (and whole loans) to create securities that have different
levels of prepayment risk, as compared to the underlying mortgage securities.
COMMERCIAL PAPER. The short-term unsecured debt of corporations .
CosT YIELD. The annual income from an investment divided by the purchase cost. Because it
does not give effect to premiums and discounts which may have been included in the
purchase cost, it is an incomplete measure of return.
COUPON. The rate of return at which interest is paid on a bond.
CREDIT RISK. The risk that principal and/or interest on an investment will not be paid in a timely
manner due to changes in the condition of the issuer.
CURRENT YIELD. The annual income from an investment divided by the current market value.
Since the mathematical calculation relies on the current market value rather than the
investor's cost. current yield is unrelated to the actual return the investor will earn if the
security is held to maturity.
DEALER. A dealer acts as a principal in security transactions, selling securities from and buying
securities for his own position .
DEBENTURE. A bond secured only by the general credit of the issuer.
DELIVERY vs. PAYMENT (DVP). A securities industry procedure whereby payment for a security
must be made at the time the security is delivered to the purchaser's agent.
DERIVATIVE . Any security that has principal and/or interest payments which are subject to
uncertainty (but not for reasons of default or credit risk) as to timing and/or amount. or any
security which represents a component of another security which has been separated from
other components (''Stripped" coupons and principal). A derivative is also defined as a
financial instrument the value of which is totally or partially derived from the value of
another instrument. interest rate. or index.
D ISCOUNT. The difference between the par value of a bond and the cost of the bond, when the
cost is below par. Some short-term securities. such as T-bills and banker's acceptances,
are known as discount securities. They sell at a discount ·from par, and return the par value
to the investor at maturity without additional interest. Other securities, which have fixed
coupons. trade at a discount when the coupon rate is lower than the current market rate
for securities of that maturity and/or qua lity.
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DIVERSIFICATION. Dividing investment funds among a variety of investments to avoid excessive
exposure to any one source of risk .
DURATION. The weighted average time to maturity of a bond where the weights are the present
values of the future cash flows . Durati on measures the price sensitivity of a bond to
changes in interest rates . (See modified duration).
FEDERAL FUNDS RATE. The rate of interest charged by banks for short-term loans to other banks .
The Federal Reserve Bank through open-market operations establishes it.
FEDERAL OPEN MARKET COMMITTEE. A committee of the Federal Reserve Board that establishes
monetary policy and executes it through temporary and permanent changes to the supply
of bank reserves.
LEVERAGE. Borrowing funds in order to invest in securities that have the potential to pay earnings
at a rate higher than the cost of borrowing.
LIQUIDITY . The speed and ease with which an asset can be converted to cash.
LOCAL AGENCY INVESTMENT FUND (LAIF). A voluntary investment fund open to government
entities and certain non-profit organizations In California that is managed by the State
Treasurer's Office.
LOCAL GOVERNMENT INVESTMENT POOL. Investment pools that range from the State Treasurer's
Office Local Agency Investment Fund (LAIF) to county pools. to Joint Powers Authorities
(JPAs). These funds are not subject to the same SEC rules applicable to money market
mutual funds .
MAKE WHOLE CALL A type of call provision on a bond that allows the issuer to pay off the
remaining debt early. Unlike a call option. with a make whole call provision, the issuer
makes a lump sum payment that equals the net present value (NPV) of future coupon
payments that will not be pai d because of the call. With t his type of call , an investor is
compensated. or "made whole ."
MARGIN. The difference between the market valu e of a security and the loan a broker makes using
that security as collateral.
MARKET RISK. The risk that the value of securities will fluctuate with changes in overall market
condit ions or interest rates.
MARKET VALUE. The price at which a security ca n be traded.
MARKING TO MARKET. The process of posting current market values for securities in a portfolio .
MATURITY. The final date upon which the principal of a security becomes due and payable .
MEDIUM TERM NOTES. Unsecured, investment-grade senior debt securities of major corporations
which are sold in relatively small amounts on either a continuous or an intermittent basis.
MTNs are high ly flexible debt instruments that can be structured to respond to market
opportunities or to investor preferences .
MODIFIED DURATION. The percent change in price for a 100 basis point change in yields. Modified
duration is the best single measure of a portfolio 's or security's exposure to market risk.
MONEY MARKET. The market in which short-term debt instruments (T-bills, discount notes .
commercial paper. and banker's acceptances) are issued and traded .
MORTGAGE PASS-THROUGH SECURITIES. A securitized participation in the interest and principal
cash flows from a specified pool of mortgages. Principal and interest payments made on
the mortgages are passed through to the holder of the security.
MUNICIPAL SECURITIES. Securities issued by state and local agencies to finance capital and
operating expenses .
MUTUAL FUND. An entity which pools the funds of investors and invests those funds in a set of
securities which is specifically defined in the fund 's prospectus . Mutual funds can be
invested in various types of domestic and/or international stocks. bonds, and money
market instruments. as set forth in the individual fund's prospectus . For most large,
institutional investors. the costs associated with investing in mutual funds are higher than
the investor can obtain through an individua ll y managed portfolio.
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NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO).
A credit rating agency that the Securities and Exchange Commission in the United
States uses for regu latory purposes . Credit rating agencies provide assessments of an
investment's risk. The issuers of investments, especially debt securities. pay credit rating
agencies to provide them with ratings . The three most prom inent NRSROs are Fitch,
S&P. and Moody's.
NEGOTIABLE CD. A short-term debt instrument t hat pays Interest and is issued by a bank. savings
or federal association. state or federal credit union, or state-licensed branch of a foreign
bank. Negotiable CDs are traded in a secondary market and are payable upon order to
the bearer or initial depositor (investor).
PREMIUM . The difference between the par value of a bond and the cost of the bond, when the cost
is above par.
PREPAYMENT SPEED. A measure of how quickly principal is repaid to investors in mortgage
securities.
PREPAYMENT WINDOW. The time period over which principal repayments will be received on
mortgage securities at a specified prepayment speed .
PRIMARY DEALER. A financial inst itution (1) that is a trading counterparty with the Federal Reserve
in its execution of market operations to carry out U.S . monetary policy, and (2) that
participates for statistical reporting purposes in compi ling data on activity in the U.S .
Government securities market.
PRUDENT PERSON (PRUDENT INVESTOR) RULE. A standard of responsibility which applies to
fiduciaries . In California, the rule is stated as "Investments shall be managed with the care.
skill, prudence and diligence. under the circumstances then prevailing . that a prudent
person. acting in a like capacity and familiar with such matters. would use in the conduct
of an enterprise of like character and with like aims to accomplish simila r purposes."
REALIZED YIELD. The change in value of the portfo lio due to interest received and interest earned
and realized gains and losses. It does not give effect to changes in market value on
securities, which have not been sold from the portfolio .
REGIONAL DEALER. A financial intermediary that buys and sells securities for the benefit of its
customers without maintaining substantial inventories of securities and that is not a
primary dealer.
REPURCHASE AGREEMENT. Short-term purchases of securities with a simultaneous agreement to
sell the securities back at a higher price . From the seller's point of view, the same
transaction is a reverse repurchase agree ment.
SAFEKEEPING. A service to bank customers whereby securities are held by the bank in the
customer's name.
STRUCTURED NOTE. A complex , fixed income instrument, which pays interest, based on a formula
tied to other interest rates , commodities or indices. Examples include inverse floating rate
notes which have coupons that increase when other interest rates are falling, and which
fall when other interest rates are rising, and "dual index floaters." which pay interest based
on the relationship between two other interest rates -for example, the yield on the ten-
year Treasury note minus the Libor rate. Issuers of such notes lock in a reduced cost of
borrowing by purchasing interest rate swap agreements.
SUPRANATIONAL. A Supranational is a multi-national organization whereby member states
transcend national boundaries or interests to share in the decision making to promote
economic development in the member countries.
TOTAL RATE OF RETURN. A measure of a portfolio's performance over time. It is the internal rate
of return. which equates the beginning value of the portfolio with the ending value; it
includes interest earnings , realized and unrealized gains. and losses in the portfolio .
U.S. TREASURY OBLIGATIONS. Securities issued by the U.S . Treasury and backed by the full faith
and credit of the United States. Treasuries are considered to have no credit risk. and are·
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the benchmark for interest rates on all other securities in the US and overseas. The
Treasury issues both discounted securities and fixed coupon notes and bonds .
TREASURY BILLS. All securities issued with initi al maturities of one year or less are issued as
discounted instruments, and are called Treasury bills. The Treasury currently issues three-
and six-month T-bills at regular weekly auctions. It also issues "cash management" bills
as needed to smooth out cash flows.
TREASURY NOTES. All securities issued with initial maturities of two to ten years are called
Treasury notes. and pay interest semi-annually .
TREASURY BONDS. All securities issued with ini tial maturities greater than ten years are called
Treasury bonds . Like Treasury notes . they pay interest semi-annually.
VOLATI LITY. The rate at which security prices change with changes in general economic
conditions or the general level of interest rates.
YIELD TO MATURITY. The annualized internal rat e of return on an investment which equates the
expected cash flows from the investment to its cost.
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CITY OF SAN JUAN CAPISTRANO
INVESTMENT POLICY
FIRST ADOPTED: APRIL 4, 1995
LAST REVIEW AND AMENDMENT: JUNE 11, 2018
CURRENT REVIEW AND AMENDMENT: JUNE 4, 2019
I. POLICY ST A TEMENT
It is the policy of the City of San Juan Capistrano (City) to invest public funds in a
manner which will provide security of principal invested, meet the daily cash flow
needs of the City, seek to achieve a market rate of return throughout budgetary
and economic cycles, and conform to the California Government Code sections
governing the investment of public funds.
II. SCOPE
This Investment Policy applies to all financial assets and funds held by the City of
San Juan Capistrano with the exception of deferred compensation assets (pension
and other post-employment benefits) held in a trust and funds held by bond trustee
that are controlled by the legal requirements of a debt indenture. For purposes of
this policy, the "City of San Juan Capistrano" includes all funds of the City, the
funds of the Successor Agency to the Community Redevelopment Agency of the
City of San Juan Capistrano, the funds of the San Juan Capistrano Housing
Authority, and the funds of any component unit that may be established by the
City.
Ill. OBJECTIVES
The primary objectives, in priority order, of the City of San Juan Capistrano's
investment activities shall be:
A SAFETY OF PRINCIPAL -Safety of principal is the foremost objective of
the City. Investments of the City shall be undertaken in a manner that seeks
to insure the preseNation of capital in the portfolio. One of the methods to
obtain this goal is diversification which is required in the portfolio's
composition.
B. LIQUIDITY -The City's investment portfolio will remain sufficiently liquid to
enable it to meet all operating requirements which might be reasonably
anticipated. "Liquidity" refers to the ability to sell at any given moment with
a minimal chance of losing some portion of principal or interest.
C. RETURN -The City's investment portfolio shall be designed with the
objective of attaining a market average rate of return throughout budgetary
and economic cycles, taking into account the City's risk constraints and
cash flow needs.
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The City shall not engage in any activity that is designed to raise funds specifically
for the purpose of investing (i.e ., borrowing funds to invest, or leveraging). The City
is not restricted from investing proceeds from a bonafide debt issuance in
accordance with this investment policy until such time as funds are needed for the
purpose intended.
IV. DELEGATION OF AUTHORITY
A. The authority of the City Council to invest or reinvest funds of the City is
delegated to the Chief Financial Officer (hereafter referred to as "City
Treasurer"), who shall thereafter assume full responsibility for those
transactions until the delegation of authority is revoked or expires. Subject
to review, the City Council may renew the delegation of authority each year.
B. The City may delegate investment authority to an investment advisor. The
advisor will follow the Investment Policy and such other written instructions
as are prov ided.
C. The City Treasurer shall designate a staff person as a liaison/deputy in the
event circumstances require timely action and the City Treasurer is not
present.
D. No officer or designee may engage in an investment transaction except as
provided under terms of this Investment Policy and the procedures
established by the City Treasurer and approved by the City Manager.
E. The City Treasurer shall be responsible for all transactions undertaken and
shall establish a system of controls to regulate the activities of subordinate
officials .
F. The City Treasurer and other personnel involved in the investment process
shall refrain from personal business activities that could conflict with proper
execution of the investment program, or which could impair their ability to
make impartial investment decisions .
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V. PRUDENCE
A. The standard of prudence to be used in the investment function shall be the
"prudent investor" standard and shall be applied in the context of managing
the overall portfolio. This standard states, "When investing, reinvesting,
purchasing, acquiring, exchanging, selling, or managing public funds, a
trustee shall act with care, skill, prudence, and diligence under the
circumstances then prevailing, including, but not limited to, the general
economic conditions and the anticipated needs of the agency, that a
prudent person acting in a like capacity and familiarity with those matters
would use in the conduct of funds of a like character and with like aims, to
safeguard the principal and maintain the liquidity needs of the agency."
B. The City Treasurer, acting in accordance with written procedures and this
Investment Policy, shall not be held personally accountable for a specific
security's credit risk or market price change, provided that any unexpected
deviations are reported in a timely manner and that appropriate action is
taken to control adverse development.
C . The City may invest debt issuance proceeds to match or meet the
anticipated timing of the expenditures. The City may not incur debt with the
specific and sole purpose of arbitrage investment.
VI. INTERNAL CONTROLS/INVESTMENT PROCEDURES
A The City Treasurer shall establish a system of internal controls which will
be reviewed annually by the independent auditor. The controls shall be
designed to prevent loss of public funds due to fraud, employee error,
misrepresentation by third parties, unanticipated market changes or
imprudent actions by employees of the City of San Juan Capistrano.
B. The City Treasurer shall develop and maintain investment procedures for
the operation of the investment program which are consistent with this
Investment Policy. Procedures may include reference to
safekeeping/custody, wire transfer agreements, collateral and deposit
agreements, and other investment related activities .
VII. AUTHORIZED INVESTMENTS
Where this Policy specifies a percentage limitation for a particular security type or
issuer, that percentage is applicable at the time the security is purchased.
Diversification criteria listed in Section VIII and credit criteria listed in this section
refers to the credit rating at the time the security is purchased. If an investment's
credit rating falls below the minimum rating required at the time of purchase, the
City's investment advisor (if any) and Treasurer will review the rating agency action
may at his or her option sell the affected investment, but is not required to do so.
The Treasurer has the same option with respect to the Diversification criteria listed
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in Section VIII. Investments that complied with Investment type and per issuer
limitations at the time of purchase do not become noncompliant if at a later date
the percentage of the portfolio applicable to that investment changes as a result of
a change in the size of the portfolio.
A United States Treasury notes, bonds, bills, or certificates of indebtedness,
or those for which the faith and credit of the United States are pledged for
the payment of principal and interest.
B. Federal agency or United States government-sponsored enterprise
obligations, participations, or other instruments, including those issued by
or fully guaranteed as to principal and interest by federal agencies or United
States government sponsored enterprises.
C. FDIC insured or fully collateralized demand deposit accounts, savings
accounts, market rate accounts, time certificates of deposits ("TCDs") and
other types of bank deposits in financial institutions located in the State of
California. In accordance with California Government Code Section
53635.2, to be eligible to receive City deposits, a financial institution shall
have received an overall rating of not less than "satisfactory" in its most
recent evaluation by the appropriate federal financial supervisory agency of
its record of meeting the credit needs of California's communities.
Certificates of deposit are required to be collateralized as specified under
Government Code Section 53630 et seq. The City, at its discretion, may
waive the collateralization requirements for any portion that is covered by
Federal Deposit Insurance Corporation (FDIC) insurance. The City shall
have a signed agreement with any depository accepting City funds per
Government Code Section 53649. No deposits shall be made with a state
or federal credit union if a member of the City Council or the Chief Financial
Officer serves on the board of directors or any committee appointed by the
board of directors of the credit union. In accordance with Government Code
Section 53638, any deposit shall not exceed that total shareholder's equity
of any depository bank, nor shall the deposit exceed the total net worth of
any institution.
0 . Negotiable certificates of deposit issued by a nationally or state-chartered
bank, a savings association or a federal association (as defined by Section
5102 of the Financial Code), a state or federal credit union, or by a federally-
or state-licensed branch of a foreign bank. Negotiable certificates of deposit
with maturities in excess of one year must be rated in a rating category of
"A" or its equivalent or better by at least two (NRSROs). Negotiable
certificates of deposit with maturities under one year must be rated in a
rating category of "A-1" its equivalent or better by at least two nationally
recognized statistical-rating organizations (NRSRO). No more than 30% of
the City's investment portfolio may be invested in negotiable certificates of
deposit.
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ATTACHMENT 9
E. Shares of beneficial interest issued by diversified management companies
that are money market funds registered with the Securities and Exchange
Commission under the Investment Company Act of 1940 (15 U.S.C. Sec.
80a-1, et seq.). To be eligible for investment pursuant to this subdivision
these companies shall either: have an investment advisor registered or
exempt from registration with the Securities and Exchange Commission
with not less than 5 years of experience managing money market mutual
funds and with assets under management in excess of $500,000,000, or
attain the highest ranking letter or numerical rating provided by not less than
two of the three largest NRSROs.
F. The State of California Local Agency Investment Fund (LAIF), as authorized
by the Government Code Section 16429.1.
G . Orange County Investment Pool, as authorized by the Government Code
Section 53684.
H. Local government investment pools (LGIPs), as authorized by the
Government Code Section 53601 (p).
I. Taxable or tax-exempt warrants, notes, bonds or similar evidences of
indebtedness issued by the State of California, a department, board,
agency, or authority of the State, or any local agency within the State of
California having received a rating in a rating category of "A" its equivalent
or better by at least two NRSROs. Obligations eligible for investment under
this subdivision with maturities under one year must be rated in a rating
category of "A-1" its equivalent or better by two NRSROs.
J . Registered treasury notes or bonds of any of the other 49 states in addition
to California, including bonds payable solely out of the revenues from a
revenue-producing property owned, controlled, or operated by a state or by
a department, board, agency, or authority of any of the other 49 states, in
addition to California. Obligations eligible for investment under this
subdivision must be rated in a rating category of "A" or its equivalent or
better by at least two NRSROs. Obligations eligible for investment under
this subdivision with maturities under one year must be rated in a rating
category of "A-1" or its equivalent or better by two NRSROs .
K. Bankers' acceptances that are drawn on and accepted by a commercial
bank. Eligible bankers ' acceptances shall have the highest ranking or the
highest letter and number rating in the rating category as provided for by at
least two NRSROs and a maximum maturity of 180 days.
L. Commercial paper of "prime" quality of the highest ranking or of the highest
letter and number rating as provided for by at least two NRSROs. The entity
that issues the commercial paper shall meet all of the following conditions
in either paragraph (1) or paragraph (2):
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ATTACHMENT 9
1) The entity meets the following criteria:
a. Is organized and operating in the United States as a general
corporation.
b. Has total assets in excess of five hundred million dollars
($500,000,000).
c. Has debt other than commercial paper, if any, that is rated in a rating
category of "A" or higher or its equivalent by at least two NRSROs.
2) The entity meets the following criteria :
a. Is organized within the United States as a special purpose
corporation, trust, or limited liability company.
b. Has program wide credit enhancements including, but not limited to,
over collateralization, letters of credit, or surety bond.
c. Has commercial paper that is rated in a rating category of "A-1" or
higher or its equivalent by at least two NRSROs.
Eligible commercial paper shall have a maximum maturity of 270 days.
Investments may not represent more than 10% of the outstanding
commercial paper of any single corporate issue.
M. Medium-term corporate notes, defined as all corporate and depository
institution debt securities with a maximum remaining maturity of 5 years or
less, issued by corporations organized and operating within the United
States or by depository institutions licensed by the United States or any
state and operating within the United States. Medium-term corporate notes
shall be rated in a rating category "A" or its equivalent or better by at least
two NRSROs.
N. Supranationals, defined as United States dollar denominated senior
unsecured unsubordinated obligations issued or unconditionally
guaranteed by the International Bank for Reconstruction and Development
(IBRD), International Finance Corporation (IFC), or Inter-American
Development Bank (IADB), with a maximum remaining maturity of five years
or less, and eligible for purchase and sale within the United States.
Investments under this subdivision shall be rated in a rating category of
"AAA" or its equivalent or better by at least two NRSROs.
0 . Asset-Backed Securities (ABS), any mortgage pass-through security,
collateralized mortgage obligation, mortgage-backed or other pay-through
bond, equipment lease-back certificate, consumer receivable pass-through
certificate, or consumer receivable-backed bond of a maximum of five years
maturity from issuers not defined in sections A and B of the Authorized
Investments section of this policy. Securities eligible for investment under
this subdivision shall be rated in a rating category of "AA" or its equivalent
or better by at least two NRSROs.
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If additional types of securities are approved for investment of public funds by the
California Government Code, they will not be eligible for investment by the City of
San Juan Capistrano until this Investment Policy is amended and the amendment
is passed by the City Council.
VIII. DIVERSIFICATION AND MATURITY
A It is the policy of the City to diversify its investment portfolio. Invested funds
shall be diversified to minimize the risk of loss resulting from over
concentration of assets in a specific maturity, specific issuer, or specific
class of securities. Diversification strategies shall be established and
periodically reviewed by the City Treasurer and City Manager. The minimum
diversification standards by security type and issuer shall be:
U.S. Treasuries and securities having principal and interest
guaranteed by the U.S . Government ............................................................. 100%
U.S. Government agencies, instrumentalities and government
Sponsored enterprises ............................................................ no more than 100%
Bank Deposits ........................................................................... no more than 25%
Negotiable CDs ......................................................................... no more than 30%
Money market funds ................................................. no more than 20% combined
Local Agency Investment Funds (LAIF) ................................... no more than 100%
Orange County Investment Pool. ............................................... no more than 40%
Local government investment pools (LGIPs) ............................ no more than 40%
Municipal obligations ................................................................. no more than 25%
Bankers' acceptances ............................................................... no more than 30%
Commercial paper ..................................................................... no more than 25%
Medium-term corporate notes .................................................... no more than 30%
International Bank for Reconstruction and Development
(IBRD), International Finance Corporation (IFC), and
Inter-American Development Bank (IADB) (Supranationals) no more than 15%
Asset-Backed Securities, Mortgage Pass Throughs and CMOs from issuers not
defined in sections A and B of the Authorized Investments ....... no more than 20%
No more than 3% of the City's investment portfolio may be invested in the
securities of any one issuer regardless of security type excluding U.S. Treasuries ,
U.S. Government agencies, FDIC-insured CDs, Supranationals, and pooled
investments such as LAIF, LGIPs , and money market funds.
B. The City shall not invest in a security whose maturity exceeds five years
from the date of purchase unless City Council has provided approval for a
specific purpose at least 90 days before the investment is made.
C The City Treasurer shall select investment maturities such that they provide
necessary liquidity, manage interest rate risk, and optimize earnings.
Because of inherent difficulties in accurately forecasting cash flow
requirements, the weighted average maturity of the investment portfolio
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ATTACHMENT 9
shall not exceed 3.0 years. For those investment types for which this Policy
does not specify a maturity limit, no individual investment shall exceed a
maturity of five years from the date of purchase unless the City Council has
granted express authority to purchase that investment either specifically or
as a part of an investment program approved by the City Council no less
than three months prior to purchase of the investment.
IX. PROHIBITED INVESTMENT VEHICLES AND PRACTICES
• State law notwithstanding, any investments not specifically described
herein are prohibited, including, but not limited to futures and options.
• In accordance with California Government Code, Section 53601.6
investment in inverse floaters, range notes, or mortgage-derived interest-
only strips is prohibited.
• Investment in any security that could result in a zero interest accrual if held
to maturity is prohibited.
• Trading securities for the sole purpose of speculating on the future direction
of interest rates is prohibited .
• Purchasing or selling securities on margin is prohibited.
• The use of reverse repurchase agreements, securities lending or any other
form of borrowing or leverage is prohibited.
• The purchase of foreign currency denominated securities is prohibited.
X. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
For investment purchases made directly by City personnel, the City Treasurer will
maintain a list of financial dealers and institutions qualified and authorized to
transact business with the City.
The purchase by the City of any investment other than those purchased directly
from the issuer, will be purchased either from an institution licensed by the State
as a broker-dealer, as defined in Section 25004 of the Corporations Code, which
is a member of the Financial Industry Regulatory Authority (FINRA), or a member
of a federally regulated securities exchange, a national or state chartered bank, a
federal or state association (as defined by Section 5102 of the Financial Code), or
a brokerage firm designated as a Primary Government Dealer by the Federal
Reserve Bank.
The City Treasurer will investigate all institutions that wish to do business with the
City to determine if they are adequately capitalized, make markets in securities
appropriate for the City's needs, and agree to abide by the conditions set forth in
this City's Investment Policy and any other guidelines that may be provided. This
will be done annually by having the financial institutions:
1. Provide written notification that they have read , and will abide by , the City's
Investment Policy.
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2. Submit their most recent audited Financial Statement within 120 days of the
institution's fiscal year end.
If the City has an investment advisor, the investment advisor may use its own list
of authorized broker/dealers to conduct transactions on behalf of the City.
Purchase and sale of securities will be made on the basis of competitive bids and
offers with a minimum of three quotes being obtained.
This section does not apply to investment purchases under the direct management
of a professional investment management firm approved by the City Council.
XI. INVESTMENT POOLS
The City Treasurer will perform an annual review of the investment policy .
XII. SAFEKEEPING/CUSTODY AND COLLATERALIZATION
A. All security transactions entered into by the City shall be conducted on a
delivery versus payment (DVP) basis.
B. Where applicable, all securities shall be held by a third-party bank custodian
designated by the City Treasurer. The third-party custodian shall be
required to issue a safekeeping receipt to the City listing the specific
instrument, rate, maturity and other pertinent information. The only
exception to the foregoing shall be depository accounts and securities
purchases made with: (i) LAIF and local government investment pools; (ii)
placement certificates of deposit, and, (iii) money market mutual funds,
since the purchased securities are not deliverable. Evidence of each these
investments will be held by the City Treasurer.
C. Collateralization on bank deposits (including Certificates of Deposit and
Passbook Savings Account Demand Deposit) shall be required in
accordance with state law.
XIII. REPORTING
A. The City Treasurer shall make a monthly report of investment transactions
and holdings to the City Council.
B. If the City has an investment advisor, the investment advisor shall
periodically report on the activity and results of the funds being managed by
the investment advisor.
C . The City Treasurer shall include a report on investment holdings in the City's
Comprehensive Annual Financial Report as required by generally accepted
accounting principles (GAAP) and the Governmental Accounting Standards
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ATTACHMENT 9
Board (GASS).
XIV. PERFORMANCE EVALUATION
The City shall monitor performance of the portfolio in conjunction with input from
the City's professional investment manager.
XV. INVESTMENT POLICY ADOPTION
The City's Investment Policy shall be reviewed periodically . Any recommended
modifications shall be reviewed and approved by the City Council.
XVI. GLOSSARY OF INVESTMENT TERMS
AGENCIES. Shorthand market terminology for any obligation issued by a government-sponsored
entity (GSE), or a federally related institution . Most obligations of GSEs are not guaranteed
by the full faith and credit of the US government. Examples are:
FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the
agricultural industry. FFCB issues discount notes and bonds .
FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market.
FHLB issues discount notes and bonds. '
FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and
liquidity in the housing market. FHLMC, also called "FreddieMac" issues discount
notes, bonds and mortgage pass-through securities.
FNMA. Like FHLB and FreddieMac, the Federal National Mortgage Association was
established to provide credit and liquidity in the housing market. FNMA, also known
as "FannieMae," issues discount notes, bonds and mortgage pass-through securities.
GNMA. The Government National Mortgage Association, known as "GinnieMae," issues
mortgage pass-through securities, which are guaranteed by the full faith and credit of
the US Government.
PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO
are not guaranteed by the full faith and credit of the US government.
TVA. The Tennessee Valley Authority provides flood control and power and promotes
development in portions of the Tennessee, Ohio, and Mississippi River valleys. TVA
currently issues discount notes and bonds.
ASKED. The price at which a seller offers to sell a security.
ASSET BACKED SECURITIES. Securities supported by pools of installment loans or leases or by
pools of revolving lines of credit.
AVERAGE LIFE. In mortgage-related investments, including CMOs, the average time to expected
receipt of principal payments, weighted by the amount of principal expected.
BANKER'S ACCEPTANCE. A money market instrument created to facilitate international trade
transactions. It is highly liquid and safe because the risk of the trade transaction is
transferred to the bank which "accepts" the obligation to pay the investor.
BENCHMARK. A comparison security or portfolio. A performance benchmark is a partial market
index, which reflects the mix of securities allowed under a specific investment policy.
BID. The price at which a buyer offers to buy a security.
BROKER. A broker brings buyers and sellers together for a transaction for which the broker
receives a commission. A broker does not sell securities from his own position.
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ATTACHMENT 9
CALLABLE. A callable security gives the issuer the option to call it from the investor prior to its
maturity. The main cause of a call is a decline in interest rates . If interest rates decline
since an issuer issues securities, it will likely call its current securities and reissue them at
a lower rate of interest. Callable securities have reinvestment risk as the investor may
receive its principal back when interest rates are lower than when the investment was
initially made.
CERTIFICATE OF DEPOSIT (CD). A time deposit with a specific maturity evidenced by a certificate.
Large denomination CDs may be marketable.
CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SYSTEM (CDARS). A private placement service
that allows local agencies to purchase more than $250,000 in CDs from a single financial
institution (must be a participating institution of CDARS) while still maintaining FDIC
insurance coverage. CDARS is currently the only entity providing this service. CDARS
facilitates the trading of deposits between the California institution and other participating
institutions in amounts that are less than $250,000 each, so that FDIC coverage is
maintained.
COLLATERAL. Securities or cash pledged by a borrower to secure repayment of a loan or
repurchase agreement. Also, securities pledged by a financial institution to secure
deposits of public monies.
COLLATERALIZED MORTGAGE OBLIGATIONS (CMO). Classes of bonds that redistribute the cash
flows of mortgage securities (and whole loans) to create securities that have different
levels of prepayment risk, as compared to the underlying mortgage securities.
COMMERCIAL PAPER. The short-term unsecured debt of corporations.
COST YIELD. The annual income from an investment divided by the purchase cost. Because it
does not give effect to premiums and discounts which may have been included in the
purchase cost, it is an incomplete measure of return.
COUPON. The rate of return at which interest is paid on a bond.
CREDIT RISK. The risk that principal and/or interest on an investment will not be paid in a timely
manner due to changes in the condition of the issuer.
CURRENT YIELD. The annual income from an investment divided by the current market value.
Since the mathematical calculation relies on the current market value rather than the
investor's cost, current yield is unrelated to the actual return the investor will earn if the
security is held to maturity.
DEALER. A dealer acts as a principal in security transactions, selling securities from and buying
securities for his own position.
DEBENTURE. A bond secured only by the general credit of the issuer.
DELIVERY vs. PAYMENT (DVP). A securities industry procedure whereby payment for a security
must be made at the time the security is delivered to the purchaser's agent.
DERIVATIVE. Any security that has principal and/or interest payments which are subject to
uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any
security which represents a component of another security which has been separated from
other components ("Stripped" coupons and principal). A derivative is also defined as a
financial instrument the value of which is totally or partially derived from the value of
another instrument, interest rate, or index.
DISCOUNT. The difference between the par value of a bond and the cost of the bond, when the
cost is below par. Some short-term securities, such as T-bills and banker's acceptances,
are known as discount securities. They sell at a discount from par, and return the par value
to the investor at maturity without additional interest. Other securities, which have fixed
coupons, trade at a discount when the coupon rate is lower than the current market rate
for securities of that maturity and/or quality.
DIVERSIFICATION. Dividing investment funds among a variety of investments to avoid excessive
exposure to any one source of risk.
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ATTACHMENT 9
DURATION. The weighted average time to maturity of a bond where the weights are the present
values of the future cash flows. Duration measures the price sensitivity of a bond to
changes in interest rates. (See mod ifie d durat io n).
FEDERAL FUNDS RATE. The rate of interest charged by banks for short-term loans to other banks.
The Federal Reserve Bank through open-market operations establishes it.
FEDERAL OPEN MARKET COMMITTEE. A committee of the Federal Reserve Board that establishes
monetary policy and executes it through temporary and permanent changes to the supply
of bank reserves .
LEVERAGE . Borrowing funds in order to invest in securities that have the potential to pay earnings
at a rate higher than the cost of borrowing.
LIQUIDITY. The speed and ease with which an asset can be converted to cash.
LOCAL AGENCY INVESTMENT FUND (LAIF). A voluntary investment fund open to government
entities and certain non-profit organizations in California that is managed by the State
Treasurer's Office.
LOCAL GOVERNMENT INVESTMENT POOL Investment pools that range from the State Treasurer's
Office Local Agency Investment Fund (LAIF) to county pools, to Joint Powers Authorities
(JPAs). These funds are not subject to the same SEC rules applicable to money market
mutual funds .
MAKE WHOLE CALL A type of call provision on a bond that allows the issuer to pay off the
remaining debt early. Unlike a call option, with a make whole call provision, the issuer
makes a lump sum payment that equals the net present value (NPV) of future coupon
payments that will not be paid because of the call. With this type of call, an investor is
compensated , or "made whole."
MARGIN. The difference between the market value of a security and the loan a broker makes using
that security as collateral.
MARKET RtsK. The risk that the value of securities will fluctuate with changes in overall market
conditions or interest rates.
MARKET VALUE. The price at which a security can be traded.
MARKING TO MARKET. The process of posting current market values for securities in a portfolio .
MATURITY. The final date upon which the principal of a security becomes due and payable.
MEDIUM TERM NOTES. Unsecured, investment-grade senior debt securities of major corporations
which are sold in relatively small amounts on either a continuous or an intermittent basis.
MTNs are highly flexible debt instruments that can be structured to respond to market
opportunities or to investor preferences.
MODIFIED DURATION. The percent change in price for a 100 basis point change in yields. Modified
duration is the best single measure of a portfolio's or security's exposure to market risk.
MONEY MARKET. The market in which short-term debt instruments (T-bills , discount notes,
commercial paper, and banker's acceptances) are issued and traded.
MORTGAGE PASS-THROUGH SECURITIES. A securitized participation in the interest and principal
cash flows from a specified pool of mortgages. Principal and interest payments made on
the mortgages are passed through to the holder of the security.
MUNICIPAL SECURITIES. Securities issued by state and local agencies to finance capital and
operating expenses.
MUTUAL FUND. An entity which pools the funds of investors and invests those funds in a set of
securities wh ich is specifically defined in the fund's prospectus. Mutual funds can be
invested in various types of domestic and/or international stocks , bonds, and money
market instruments, as set forth in the individual fund's prospectus. For most large,
institutional investors, the costs associated with investing in mutual funds are higher than
the investor can obtain through an individually managed portfolio .
NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO).
A credit rating agency that the Securities and Exchange Commission in the United
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ATTACHMENT 9
States uses for regulatory purposes. Credit rating agencies provide assessments of an
investment's risk. The issuers of investments, especially debt securities, pay credit rating
agencies to provide them with ratings. The three most prominent NRSROs are Fitch,
S&P, and Moody's.
NEGOTIABLE CD. A short-term debt instrument that pays interest and is issued by a bank, savings
or federal association, state or federal credit union, or state-licensed branch of a foreign
bank. Negotiable CDs are traded in a secondary market and are payable upon order to
the bearer or initial depositor (investor).
PREMIUM. The difference between the par value of a bond and the cost of the bond, when the cost
is above par.
PREPAYMENT SPEED. A measure of how quickly principal is repaid to investors in mortgage
securities.
PREPAYMENT WINDOW. The time period over which principal repayments will be received on
mortgage securities at a specified prepayment speed.
PRIMARY DEALER. A financial institution (1) that is a trading counterparty with the Federal Reserve
in its execution of market operations to carry out U.S. monetary policy, and (2) that
participates for statistical reporting purposes in compiling data on activity in the U.S.
Government securities market.
PRUDENT PERSON (PRUDENT INVESTOR) RULE. A standard of responsibility which applies to
fiduciaries. In California, the rule is stated as "Investments shall be managed with the care,
skill, prudence and diligence, under the circumstances then prevailing, that a prudent
person, acting in a like capacity and familiar with such matters, would use in the conduct
of an enterprise of like character and with like aims to accomplish similar purposes."
REALIZED YIELD. The change in value of the portfolio due to interest received and interest earned
and realized gains and losses. It does not give effect to changes in market value on
securities, which have not been sold from the portfolio.
REGIONAL DEALER. A financial intermediary that buys and sells securities for the benefit of its
customers without maintaining substantial inventories of securities and that is not a
primary dealer.
REPURCHASE AGREEMENT. Short-term purchases of securities with a simultaneous agreement to
sell the securities back at a higher price. From the seller's point of view, the same
transaction is a reverse repurchase agreement.
SAFEKEEPING. A service to bank customers whereby securities are held by the bank in the
customer's name.
STRUCTURED NOTE. A complex, fixed income instrument, which pays interest, based on a formula
tied to other interest rates, commodities or indices. Examples include inverse floating rate
notes which have coupons that increase when other interest rates are falling, and which
fall when other interest rates are rising, and "dual index floaters," which pay interest based
on the relationship between two other interest rates -for example, the yield on the ten-
year Treasury note minus the Libor rate. Issuers of such notes lock in a reduced cost of
borrowing by purchasing interest rate swap agreements.
SUPRANATIONAL. A Supranational is a multi-national organization whereby member states
transcend national boundaries or interests to share in the decision making to promote
economic development in the member countries.
TOTAL RATE OF RETURN. A measure of a portfolio's performance over time. It is the internal rate
of return, which equates the beginning value of the portfolio with the ending value; it
includes interest earnings, realized and unrealized gains, and losses in the portfolio.
U.S. TREASURY OBLIGATIONS. Securities issued by the U.S. Treasury and backed by the full faith
and credit of the United States. Treasuries are considered to have no credit risk, and are
the benchmark for interest rates on all other securities in the US and overseas. The
Treasury issues both discounted securities and fixed coupon notes and bonds.
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ATTACHMENT 9
TREASURY BILLS. All securities issued with initial maturities of one year or less are issued as
discounted instruments, and are called Treasury bills. The Treasury currently issues three-
and six-month T-bills at regular weekly auctions. It also issues "cash management" bills
as needed to smooth out cash flows.
TREASURY NOTES. All securities issued with initial maturities of two to ten years are called
Treasury notes, and pay interest semi-annually.
TREASURY BONDS. All securities issued with initial maturities greater than ten years are called
Treasury bonds. Like Treasury notes, they pay interest semi-annually.
VOLATILITY. The rate at which security prices change with changes in general economic
conditions or the general level of interest rates.
YIELD TO MATURITY. The annualized internal rate of return on an investment which equates the
expected cash flows from the investment to its cost.
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ATTACHMENT 9
ORDINANCE NO. __
AN ORDINANCE OF THE CITY COUNCIL OF SAN JUAN CAPISTRANO,
CALIFORNIA AMENDING AND RESTATING CHAPTER 4 OF TITLE 3 OF
THE SAN JUAN CAPISTRANO MUNICIPAL CODE RELATING TO
PROCUREMENT PROCEDURES
1
WHEREAS, pursuant to California Constitution, Article XI, section 7, the City of San Juan
Capistrano may make and enforce within its limits all local, police, sanitary, and other ordinances and
regulations not in conflict with general laws; and
WHEREAS, California Public Contract Code sections 22000 et seq. (the "Uniform Public
Construction Cost Accounting Act") authorizes local agencies such as the City to become subject to
said Act, which the City has done, whereupon the City is legally authorized to bid and award public
works contract in accordance with the provisions of said Act; and
WHEREAS . Assembl y Bill 2249 was recentl y enacted . increasing of the informal and formal bid
limits under the Act, effective January 1, 2019; and
WHEREAS, California Government Code section 54202 authorizes the City to adopt, by
ordinance, policies and procedures, including bidding regulations, governing the purchases of supplies
and equipment by the City; and
WHEREAS, California Government Code sections 4525 et seq. provide for the manner in which
local agencies, such as the City, are to procure the services of certain professional services; and
WHEREAS. the City Council desires to make certain changes to the San Juan Capistrano
Municipa l Code to update the policies a n d procedures for the purchase of goods , supg lies, eguigment.
materials , and services;
WHEREAS, all legal prerequisites to the adoption of the Ordinance have occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO DOES
ORDAIN AS FOLLOWS:
SECTION 1. The recitals above are each incorporated by reference and adopted as findings by
the City Council.
SECTION 2. Chapter 4 of Title 3 of the San Juan Capistrano Municipal Code is hereby amended
in its entirety to read as follows:
"CHAPTER4.PROCUREMENTPROCEDURES
Sec. 3-4.101. Adoption of purchasing system.
Sec. 3-4.102. City's purchasing system.
Sec. 3-4.103. Definitions.
Sec. 3-4.201. Purchasing Officer.
Sec. 3-4.202. Exemptions from centralized purchasing.
ATTACHMENT 10
Sec. 3-4.203. Purchasing authority.
Sec. 3-4.204. Emergency purchases.
Sec. 3-4.301. Purchases under $3,000 .$10 ,000 .
Sec. 3-4.302. Purchase orders.
Sec. 3-4.303. Encumbrance of funds.
Sec. 3-4.304. Competitive bidding.
Sec. 3-4.305. Open market and informal quote purchases.
Sec. 3-4.306. Formal request for proposal or request for qualifications.
Sec. 3-4.307. Qualified bidders list.
Sec. 3-4.308. Informal bid process.
Sec. 3-4.309. Formal bid process.
Sec. 3-4.310. Exceptions to competitive bidding.
Sec. 3-4.311. Inspections and testing.
Sec. 3-4.401. Surplus supplies and equipment.
Sec. 3-4.402. Recycled products.
Sec. 3-4.501. Public works projects.
Article 1. General Provisions
Sec. 3-4.101. Adoption of purchasing system.
This purchasing system is hereby adopted in order to establish efficient regulations,
policies and procedures for the purchase of goods, supplies, equipment, materials, and
services, to secure on behalf of the City, the goods, supplies, equipmen tJ. materialsJ.
and fef: services at the lowest possible cost, taking into consideration quality, service
levels, and time constraints, together with other relevant factors, to exercise positive
financial control over purchases and procurements, to clearly define authority for the
purchasing function, and to comply with all applicable laws in a professional and ethical
manner.
Sec. 3-4.102. City's purchasing system.
This purchasing system is hereby adopted in accordance with the provisions of Sections
54202 through 54205 of the Government Code of the State of California. The authority
for the purchase of goods, supplies, equipment, materialsJ. and services shall be vested
in a Purchasing Officer as designated in Section 3-4.201, and the procedures and policies
contained in this chapter, the City's administrative purchasing policies and procedures,
as well as supplemental rules and resolutions adopted by the City Council or its designee
shall hereafter be followed for the procurement of goods, supplies, equipment, materials
and services.
Sec. 3-4.103. Definitions.
For the purposes of this chapter, the words and terms set forth below shall be construed
in accordance with the following definitions:
(a) "Budgeted" shall mean the amount of appropriations within a fund adopted for
expenditure by the City Council.
(b) "Formal bid process" shall mean the public bidding process used for purchases of
goods, supplies, equipment, or materials or services . The process requires a public notice
inviting bids, availability of specifications, bid opening, determination of lowest responsive
ATTACHMENT 10
2
and responsible bidder, awarding of the bid, and public access to the results of the
process. The same process is used for formal requests for proposals/qualifications.
(c) "Goods, supplies, equipment, and materials" shall mean fixed, movable,
disposable, aRE#or reusable products, commodities, or items used by the City, including,
but not limited to, office supplies, program supplies, subscriptions, vehicles, fuel and
vehicle supplies, tools, computers, computer hardware and software, landscape and
irrigation supplies, power tools, janitorial supplies, office furniture, and fixtures , which shall
that will be furnished to or used by any department.
(d) "Informal bid process" shall mean a bidding process used, when applicable, for
purchases of goods, supplies, equipment, materials or services. The process requires a
notice inviting informal bids, which shall be mailed to contractors on the Qualified Bidders
List and, where applicable, advertised in designated construction trade journals,
availability of project details, bid opening, determination of successful bidder, and
awarding of the contract.
(e) "Maintenance services .. " as defined as "maintenance work" in Public Contract Code
section 22002, shall mean the furnishing of labor, time or effort by a contractor, including,
but not limited to:
(1) Routine, recurring, and usual work for the preservation or protection of a publicly
owned, or publicly operated facility for intended purposes;
(2) Minor repainting;
(3) Resurfacing of streets and highways at less than one inch;
( 4) Landscape maintenance, including mowing, watering, trimming, pruning, planting,
replacement of plants, and servicing of irrigation and sprinkler systems; and
(5) Work performed to keep, operate and maintain publicly owned water or waste
disposal systems.
(f) "Originating department" shall mean any department requiring goods, supplies,
equipment, materials, services, aA4lor construction procured pursuant to this chapter.
(g) "Persona l services " shall mean the furnishing of labor, time or effort by a contractor
for such non-professional services as the City may, from time to ti me. find necessary and
proper for the functioning of the City .
!.b.l..._"Professional services" shall mean services provided by any specially trained,
educated, experienced or licensed person, company, corporation, or firm, and which
involve the exercise of discretion and independent judgment together with an advanced
or specialized knowledge, expertise, training, or unique skills gained by formal studies or
experience.
(-Rl) "Public works project .. " as defined as "public project" in Public Contract Code section
22002. shall mean construction, reconstruction, erection, alteration, restoration,
improvement, demolition, and repair work involving any facility owned, leased, or
operated by the City, and 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 also within this definition.
(tj) "Purchase" shall mean an order or contract for goods . supplies . equ ipmen t.
materials or services for a specific quantity, purpose , or per iod of time .
ATTACHMENT 10
3
_(~) "Purchase order" shall mean a commercial document issued by a buyer to a seller,
indicating types, quantities, and agreed prices for products or services the seller will
provide to the buyer.
(~) "Qualified bidders list" shall mean one list for ongoing service requirements for the
same or very similar services, including maintenance services, professional services,
personal services, and qualified construction contractors, categorized by the type of
product sold or work performed for use in soliciting bids. The Qualified bidders list shall
be approved by the City Council at least every three (3) years. The City Manager shall
have the authority to add qualified bidders to the list as needed, however any additions
must be submitted to the City Council for ratification at the next regular City Council
meeting.
(mJ.k ) "Responsible bidder" shall mean a bidder who has demonstrated the attribute of
trustworthiness, as well as quality, fitness, capacity, and experience to satisfactorily
perform the wor~ proposed.
(mm) "Responsive bidder" shall mean a bidder who has submitted a bid which
conforms in all material respects to the notice inviting bids.
(oRm ) "Services" means either "personal services", "maintenance services" or
"professional services".
(p) "Sole source" shall mean an award for a commodity or service that can feasibly be
obtained from Q.D!y_one source-effiy.
(~)"Surplus property" means property, other than real property, no longer needed by
City departments for their operations, obsolete property, property in poor or nonworking
condition, or property that is a by-product (i.e., scrap metal, used tires, oil, etc.)
Article 2. Delegation of Authority
Sec. 3-4.201. Purchasing Officer.
The position of Purchasing Officer is hereby created. The City Manager, or the City
Manager's designee, shall serve as the Purchasing Officer. The Purchasing Officer shall
have authority to:
(a) Ensure full and open competition on all purchases as required under all applicable
laws and City policies;
(b) Coordinate vendor relations, locate sources of supply and evaluate vendor
performance;
(c) Recommend revisions to purchasing procedures when necessary and keep
informed of current developments in the field of public purchasing;
(d) Prescribe and maintain all forms and records necessary for the efficient operation
of the purchasing function;
(e) Act as the City's agent in the transfer and disposal of surplus goods, supplies,
equipment and materials; and,
(f) Maintain a bidders' list, vendors' catalog file, and the records needed for the efficient
operation of procurements for the City.
Sec. 3-4.202. Exemptions from centralized purchasing.
ATTACHMENT 10
4
The City Council or Purchasing Officer may authorize, in writing, any department to
purchase specified goods, supplies, equipment, materials, services, aR€1J or construction,
but shall require that such purchases be made in conformity with the procedures
established by this chapter,-tRe provisions of Sectiefls 54201 througl'l 54204 of
the Government Code of the State, and any supplemental City policies, and may further
require periodic reports from each department on the purchases made under such written
authorization.
Sec. 3-4.203. Purchasing authority.
There are three (3) levels of authority applicable for the purchase of goods, supplies,
equipment, materials, services, and public works projects, which shall be delegated as
follows:
(a) Department Heads are authorized to award or reject purchases, agreements,
contracts, bids, aR€1Jor purchase orders, other than for public works projects, in an amount
not to exceed ten thousand dollars ($10,000.00). Department Heads may approve
amendments aR€J.lo r change orders to existing purchases, agreements, contracts, aR€1J or
purchase orders, other than for public works projects, so long as the cumulative total of
the contract (change order( s )/amendment( s) plus original contract vak:leamount ) does not
exceed ten thousand dollars ($10,000.00).
(b) The City Manager is authorized to award or reject purchases, agreements,
contracts, bids, purchase orders, and/orothor than and public works projects, in an
amount not to exceed forty-five thousand dollars ($45,000.00). The City Manager may
approve amendments afl€1./.o r change orders to existing purchases, agreements,
contracts, purchase orders, other than for public works projects, so long as the cumulative
total of the contract (change order(s)/amendment(s) plus original contract vak:leamount )
does not exceed forty-five thousand dollars ($45,000.00).
(c) The City Council -sAaU--is authorized to award or reject purchases, agreements,
contracts, bids, purchase orders, change orders, aR€J.lo r amendments that exceed forty-
five thousand dollars ($45,000.00) for goods, supplies, equipment, materials, professional
and maintenance services, or public works projects.
(d) Department Heads are authorized to award or reject change orders during to
contracts for the construction of a public works project of up to ten percent ( 10%) of the
contract amount up to a cumulative amount (original contract amount, plus change
orders) of forty-five thousand dollars ($45,000.00) on City Manager approved contracts.
The cumulative change order amounts may not exceed the project's contingency amount
aRtllo r the City Council approved budget. whichever is less .
( e) The City Manager is authorized to award or reject change orders oofffi§-to contracts
for the construction of a public works project of up to ten percent ( 10%) of the contract
amount up to a cumulative amount (original contract amount, plus change orders) of GRe
hundred seventy five two hundred t housand dollars ($175,000 200 ,000 .00) on City
Council approved construction contracts. The cumulative change order amounts may not
exceed the project's contingency amount (typically ten percent (10%) of the contract
award amount) aR€11o r the City Council approved budget, wh ichever is less .
Sec. 3-4.204. Emergency purchases.
ATTACHMENT 10
5
The City Manager may authorize the purchase of goods, supplies, equipment,
materials, and services without following certain City purchasing policies and procedures
as prescribed by the Purchasing Officer, including obtaining the appropriate level of
authority and lef competitive bidding, where the City Manager determines that an
emergency exists and the public health, safety .. or welfare of the community would be
affected. All emergency purchases that would have otherwise requireQ. City Council
approval due to the contract amount, or would have otherwise required a formal bid
process or informal bid process, must be submitted to the City Council for ratification at
the next regular City Council meeting after the purchase is authorized. For public works
projects, the City Manager shall comply with the requirements set forth in Section 22050
of the Public Contracts Code.
Article 3. Purchasing Procedures
Sec. 3-4.301. Purchases under $3,00010,000 .
Purchases which have a total value amount of throe ten thousand dollars
($3,G0010 .000 .00) or loss sRaU-may be made utilizing petty cash, check reques t ... or other
procedures, as may be · prescribed in writing by the Purchasing Officer.
Sec. 3-4.302. Purchase orders.
Purchase of goods, supplies--aOO, equipment, materials afl4lor services in excess of
tAfee-ten thousand dollars ($3,G0010,000 .00) shall be made effiy-by purchase order_Q[
written contract. Except as otherwise provided in this chapter, no purchase order shall be
issued unless the prior approval of the Purchasing Officer, or the Purchasing Officer's
designated representative, has been obtained .
Sec. 3-4.303. Encumbrance of funds.
Except in cases of emergency, the Purchasing Officer shall not issue any P.Q urchase
order(s) for supplies and equipment unless there exists an unencumbered appropriation
in the City's budget against which such purchase is to be charged.
Sec. 3-4.304. Competitive bidding.
The total estimated dollar valuecost of the goods, supplies, equipment, materials,
services, afl4lo r projects determines the bidding procedures andlef procurement
methods that must be followed, as described below:
(a) Goods, supplies, equipment and materials,-aAd non _publHr\Norks projects :
(1) No bidding required: $3 ,00010 ,00 0 .00 or less.
(2) Informal quote: $3,001 .0060 5,00010,000 .0 1-$25,000.00.
(3) Formal bid process: Over $25,000.00.
(b) Professional , personal aAEl--QL maintenance service contracts:
(1) lnf:orma l quote: $25,000 .00 or less .
(1) No bidding required : $10,000.00 or less.
(2) Informal quote: $10.000.01-$25,000.00.
__ (~~) Formal RFP/RFQ bid process: Over $25,000.00 .
ATTACHMENT 10
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(c) Public works projects:
(1) No bidding required: $45,000 5060,000 .00 or less. (See section 3 .4-501 (a).)
(2) Informal bid process: $45,001.00 $175,000 .00$60,000.01 to $200,000 .00 .
(3) Formal bid process: Over $.i-7§200 ,000.00.
Sec. 3-4.305. Open market and informal quote purchases.
Purchases of goods, supplies, equipment, materials, and professional , personal and
maintenance services of an estimated vaH::le--cost in the amount of twenty-five thousand
dollars ($25,000.00) or less may be made by the appropriate level of authority identified
in Section 3-4.20 ~i above, utilizing the open market process or informal quote process,
as prescribed by the Purchasing Officer, without adhering to the procedures prescribed
for Informal bid process or formal bid process. The open market process and informal
quote process shall follow, at a minimum, the following guidelines:
(a) Minimum number of ~-Open market purchases and informal quotes shall,
whenever possible, be based on at least three (3) ~-
(b) Soliciting bi-Gsquotes . The Originating department shall solicit bi-Gsquotes from
prospective vendors by written request or telephone request.
(c) Award of purchase. Open market purchase§. and informal quotes purchase§. shall
be awarded to the ioi.vest respons i ble biddervendor presenting a quote that is in the City 's
best interests as determined by the Department Head. Contracts for the purchase of
professional services shal l be awarded on the basis of demonstrated competence and
professional qualifications .
(d) Additional procurement requ irements . In circumstances where more restrictive
requirements apply (e.g., procurement invo lving grant funds), the City will follow those
requirements.
Sec. 3-4.306. Formal request for proposal or request for qualifications.
The request for proposal (RFP) or request for qualifications (RFQ) process shall be
utilized to engage services on the basis of demonstrated competence and qualifications
for the types of services to be performed and at fair and reasonable prices to the City.
The following minimum guidelines and procedures shall be implemented by the
Purchasing Officer:
(a) The originating department shall prepare the RFP/RFQ for the type of services to
be performed, which shall contain, among other details, scope of the problem or objective,
services to be performed, work product to be provided, anticipated time schedule,
evaluation factors, expectations._ and/or limitations, contractual requirements, types of
experience and qualifications considered in the evaluation, and other requirements
specific to the scope of work.
(b) In issuing the RFP/RFQ, the originating department shall prepare a list of at least
three (3) potential firms to receive the RFP/RFQ, and where appropriate, advertise the
RFP/RFQ in a local newspaper of general circulation. The City shall allow a reasonable
length of time, based on the complexity and size of the project, between solicitation and
closing dates to provide potential applicants time to respond.
ATTACHMENT 10
7
( c) All proposals received by the City in response to an RFP/RFQ shall be time stamped
and submitted to the originating department. All proposals received by 5:00 p.m. on the
closing date of the RFP/RFQ shall be opened in the presence of the Department Head,
or the Department Head's designee, on the following workday.
(d) Proposals shall be evaluated by a selection committee, appointed by the
Department Head of the originating department, subject to the approval of the City
Manager or Purchasing Officer, on the general quality and responsiveness of the
proposal, the qualifications of the organization or personnel submitting the proposal, and
when applicable, the proposed cost for the services requested.
(e) The formal RFP/RFQ process may be bypassed only in the following
circumstances:
(1) In emergency situations where the Department Head determines that an
emergency exists and the public health, safety or welfare of the community would be
affected;
(2) When only one known service provider is available; or
(3) When extenuating circumstances would make the formal RFP/RFQ process not the
most cost-effective approach.
(f) In circumstances where more restrictive requirements apply (e.g., procurement
involving grant funds). the City will follow those requirements.
Sec. 3-4.307. Qualified bidders list.
(a) The Purchasing Officer shall develop criteria and procedures to establish a sffiWe
qualified bidders list, which shall encompass qualified vendors registered with the City
and the following three (3) categories of contractors:
(1) Maintenance contractors that provide services with recurring and usual work for the
preservation or protection of any publicly owned or publicly operated facility for its
intended purposes;
(2) Professional service contractors that are educated or licensed specialists who
provide services of an advisory nature and provide recommendations for a course of
action, an end product, or the transmittal of information ~.:.
(J) QYQijfie€1 €l€1Rstrw€lOOR €l€1Atra8tors WRG are salle€1 Wfi€JA tt;Jrow§R tJile IRfermaJ.6i8€1iA§
~f8898S ees€lri8e€1 iA Se€lti€lA a 4 .JQ9 (0elew) te fi9Ft€lrm €l9RBiA fiilWSlie W€lFl<S fiF@jeets.
(b) +Re-In order to comp ile this list. the Purchasing Officer shall select, where possible,
at least three (3) vendors, consultants, aR€1for contractors for each category of services
required, who shall be placed on the qualified bidders list following an informal solicitation
of qualifications, and an evaluation and selection process, which shall be established by
the Purchasing Officer.
(c) The qualified bidders list shall be approved by the City Council at least every three
(3) years. The City Manager shall have the authority to add qualified bidders to the list as
needed, however any additions must be submitted to the City Council for ratification at
the next regular City Council meeting.
(d) All vendors, consultants, and contractors on the qualified bidders list shall be
reviewed and approved by the City Manager on an annual basis.
ATTACHMENT 10
8
-(JeL ln addition to the foregoing , the Pu rchasin g Officer sRaUmay develo p and
maintain a list of Qg ualified construction contractors who are called upon through the
Informal bidding process described in Section 3-4 .308 (below) to perform certain public
works projects . The list of qualified contractors, identified according to categories of work.
shall be developed and maintained in accordance with the provisions of Section 22034 of
the Public Contract Code and criteria promulgated from time to time by the California
Uniform Construction Cost Accounting Commission
Sec. 3-4.308. Informal bid process for Publ ic W or ks Project s .
The City has elected to follow the uniform construction cost accounting procedures for
all public works projects. Contracts for public works projects -valtleEl-wit h an estimated
cost of over forty fivesixty thousand dollars ($4a60 ,000.00) and up to ooe-two hundred
seventy fi.ve-t housand dollars ($4-75200 ,000.00) sRaU-may be subject let in accordance
with ta-t he following informal bid process:
(a) The originating department shall prepare a notice inviting informal bids, which
provides, at a minimum, a description of the project and scope of work, a method to obtain
more detailed information on the project and scope of work, a proposed contract,
applicable bond and insurance requirements, and the time and place for the submission
of bids.
(b) The originating department shall mail a notice inviting informal bids to all
construction contractors on the qualified bidders list and /or advertise the notice inviting
informal bids in all designated construction trade journals no less than ten (10) calendar
days before the bids are due.
(c) The City Clerk shall open all bids at the time and place stated in the notice inviting
informal bids.
(d) The City, by way of the City Manager or City Council, where applicable, shall award
the public works project to the lowest responsive and responsible bidder.
(e) In the event an informal bid result for the lowest responsive and responsible bidder
results in all bids over eRe-two hundred seventy five thousand dollars ($4-75200 ,000.00),
but less than ooe----two hundred eighty seventwelve thousand five hundred dollars
($4-37212 ,500.00), the City Council may award the public works project using the Informal
bid process only after the City Council approves such an award by four-fifths ( 4/5) vote
consistent with Public Contract Code Section 22034.
(f) The originating department aRGtor Purchasing Officer shall follow and comply with
all procedures and requirements set forth in Public Contract Code Section 22030 et seq.,
concerning informal bidding, this chapter, and any supplemental policies prescribed by
the Purchasing Officer.
(g) In circumstances where more restrictive requirements apply (e.g ., procurement
involving grant funds). the City will follow those requirements .
Sec. 3-4.309. Formal bid process.
Except as otherwise provided in this chapter, purchases and contracts for goods,
supplies, equipment, and materials .-and services and public works having a value greater
than twenty-five thousand dollars ($25,000.00) and public works projects valueG--and
ATTACHMENT 10
9
public works projects valued with an estimated cost greater than ooe-two hundred
seventy five t housand dollars ($.:J-75200 ,000.00) shall be subject to the following formal
bid process:
(a) Notice inviting bids. Notice inviting bids shall include: (i) a general description of the
goods or services to be purchased; (ii) where bid forms and specifications may be
obtained; and (iii) the date, time, and place for opening of the bids. The publication or
posting of the notices inviting bids shall be given at least fourteen ( 14) days before the
date of opening bids. The notice shall be published in a newspaper of general circulation,
printed and published in the City, or, if there is none, the notice shall be posted in at least
three (3) public places in the City which have been designated by resolution as the places
for posting public notices. The notice shall also be mailed to all construction trade journals
specified in Public Contract Code Section 22036 at least thirty (30) calendar days before
the date of opening the bids, or emailed to the construction trade journals at least fifteen
(15) calendar days before the date of opening the bids.
(b) Bidder's security. When deemed necessary by the Purchasing Officer afl4lor
originating department, bidder's security may be prescribed in the public notice inviting
bids. Bidders shall be entitled to the return of bid security; provided, however, a successful
bidder shall forfeit his bid security upon his refusal or failure to execute the contract within
thirty (30) calendar days from the date of the award of the contract, unless in the latter
event the City is solely responsible for the delay in executing the contract. The Purchasing
Officer afl4lor originating department, on the refusal or failure of the successful bidder to
execute the' contract, may award it to the next lowest responsive and responsible bidder.
(c) Bid opening procedure. Sealed bids shall be submitted to the City Clerk and shall
be clearly identified with the bid number on the envelope. Upon receipt, the City Clerk
shall date and time stamp the envelope. Bids shall be opened in public at the time and
place stated in the public notices. All bids received shall be open for public inspection
during regular business hours for a period of not less than thirty (30) calendar days after
the bid opening.
(d) Rejection of bids. In its discretion, the City Council may reject any and all bids,
accept or reject any one or more items of a bid, or 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
readvertise for bids pursuant to the procedure prescribed in this section or have the
project done by force account.
(e) Award of contracts. Contracts shall be awarded by the City Council to the lowest
responsive and responsible bidder.
(f) Tie bids. If two (2) or more bids received are for the same total amount, with price,
quality and services being equal, the City Council may accept the bid it chooses or accept
the lowest bid made after negotiation with the tie bidders at the time of the bid opening.
(g) Additional bidding requirements . In sasescircumstances where more restrictive
requirements apply (e.g ., procurement i nvolving grant funds), the City will follow those
requirements.
Sec. 3-4.310. Exceptions to competitive bidding.
ATTACHMENT 10
10
There shall be no informal bid process aAGi or formal bid process required for the
following purchases of goods, supplies , equipment, materials , andifil public wefk.s
projects under any of the following circumstances:
(a) Where the acquisition of goods, supplies, equipment, materials , or services , and/or
public works projects _is necessitated by reason of emergency circumstances, where the
procurement is required to prevent the immediate interruption or cessation of necessary
City services or to safeguard life, property.._ or the public hea lth and welfare , such
purchases shall be made in accordance with Section 3-4.204.r-er:
(b) Where a commodity can be obtained only-fr~When only one known
service prevklersource of the neeeeG-qoods . supp lies. equ ipment. materials , or services
and/or pubJi&wefks projects is available .T-Gr
(c) When the City has a contract with another governmental agency to purchase a
particular item or service on a cooperative basis.
(d) When the City Manager determines that compliance with the above formal
procurement procedures for the purchase of goods. supplies . equipment. materials or
services cannot be achieved due to timing requirements, which could have not otherwise
been avoided . the City may proceed with an informal sol icitation of quotes from at least
three vendors . A description of the circumstances. the quotes received, and the basis for
vendor selection shall be approved by the City Manager.
(e) The City Council may waive the requirement for competitive bidding for the
purchase of goods. supplies. equipment. materials or services when compliance with
such requirement is not in the best interest of the City , as determined by the City Council.
Sec. 3-4.311. Inspections and testing.
The Purchasing Officer or originating department shall inspect goods, supplies,
equipment, materials and related services to determine their conformance with the
specifications set forth in the purchase order or contract. The Purchasing Officer or
originating department shall have the right to waive any defect, irregularity, or informality.
The Purchasing Officer or originating department shall have the authority to require
chemical and physical demonstrative testing of samples submitted with bids and samples
of deliverables which are necessary to determine their quality, fitness for a particular use
and conformance with specifications.
Article 4. Miscellaneous Procedures
Sec. 3-4.401. Surplus supplies and equipment.
All departments shall submit to the Purchasing Officer, at least annually, a report
describing all goods, supplies, equipment, materials, fixtures and other personal property
of the City which is determined to be no longer required by the department because of
decreased use, poor condition, damage not worth the cost of repair, or which has become
obsolete.
(a) The Purchasing Officer, with the approval of the City Manager, is authorized from
time to time to sell or exchange any and all goods, supplies, equipment, materials,
fixtures, and other personal property of the City having a salvage value and which is
obsolete or unserviceable, or is deemed to be surplus for which replacements are to be
purchased. The Purchasing Officer may sell the same for the best price obtainable in the
ATTACHMENT 10
11
open market, or, when it is deemed advisable, to the highest bidder at a public sale, or
the Purchasing Officer may exchange the same for other property or for credit on other
property.
(b) If the Purchasing Officer determines that any such obsolete, unserviceable, or
surplus property has no salvage value, it may be disposed of in any acceptable manner.
(c) All sales shall be "as is" and "where is" with no warranty, guarantee or
representation of any kind, express or implied , as to the condition, utility or usability of the
property. All sales shall be paid to the City in cash, certified check, money order, or in a
manner agreeable to the Purchasing Officer.
(d) The Purchasing Officer shall be authorized, with the approval of the City Manager,
to sign bills of sale and any other documents evidencing the transfer of title to such
property by and on behalf of the City.
(e) Prior to disposing of any obsolete, unserviceable or surplus property having an
estimated market value in excess of one thousand dollars ($1,000.00), the Purchasing
Officer shall inform the City Council of the nature of the property proposed for disposition
and the proposed sales price . Such disposition shall be subject to the City Council's prior
approval.
(f) The Purchasing Officer may prescribe additional policies and procedures for the
identification and disposition of surplus property as the Purchasing Officer deems
necessary.
Sec. 3-4.402. Recycled products.
A five percent (5%) or greater price preference may be given to recycled products_,or
reusable products offered as alternatives to disposable products, and products designed
to be recycled where they are offered as alternatives to nonrecyclable products. The
preference percentage shall be based on the lowest bid or price quoted by the supplier
or suppliers offering nonrecycled products . Purchase of products which cannot be
recycled or reused is strongly discouraged .
Sec. 3-4.501. Public works projects.
(a) Public works projects, as defined in Public Contract Code Section 22002, of fefty-
.fi.vesixty thousand dollars ($4560 ,000.00) or less may be performed by employees of the
City by force account, by negotiated contract or by purchase order.
(b) Public works projects, as defined in Public Contract Code Section 22002, of GAe
-Rtindred seventy fivetwo hundred thousand dollars ($~200 ,000.00) or less may be
awarded by Informal bid process as described above (includ ing , wi th o ut limi tation . as
provided i n s ubdivision {a) of this section 3-4 .501 ), and consistent with Public Contract
Code Section 22030 et seq.
(c) Public works projects, as defined in Public Contract Code Section 22002, of more
than one hundred seventy fivotwo hundred thousand dollars (~200 ,000.00) shall be
awarded by formal bidding process as described above, and consistent with Public
Contract Code Section 22030 et seq."
ATTACHMENT 10
12
ORDINANCE NO. __
AN ORDINANCE OF THE CITY COUNCIL OF SAN JUAN CAPISTRANO,
CALIFORNIA AMENDING AND RESTATING CHAPTER 4 OF TITLE 3 OF
THE SAN JUAN CAPISTRANO MUNICIPAL CODE RELATING TO
PROCUREMENT PROCEDURES
WHEREAS, pursuant to California Constitution, Article XI , section 7, the City of San Juan
Capistrano may make and enforce within its limits all local, police, sanitary, and other ordinances and
regulations not in conflict with general laws; and
WHEREAS, California Public Contract Code sections 22000 et seq. (the "Uniform Public
Construction Cost Accounting Act") authorizes local agencies such as the City to become subject to
said Act, which the City has done, whereupon the City is legally authorized to bid and award public
works contract in accordance with the provisions of said Act; and
WHEREAS, Assembly Bill 2249 was recently enacted, increasing of the informal and formal bid
limits under the Act, effective January 1, 2019; and
WHEREAS, California Government Code section 54202 authorizes the City to adopt, by
ordinance, policies and procedures, including bidding regulations, governing the purchases of supplies
and equipment by the City ; and
WHEREAS, California Government Code sections 4525 et seq. provide for the manner in which
local agencies, such as the City, are to procure the services of certain professional services; and
WHEREAS, the City Council desires to make certain changes to the San Juan Capistrano
Municipal Code to update the policies and procedures for the purchase of goods , supplies, equipment,
materials, and services ;
WHEREAS, all legal prerequisites to the adoption of the Ordinance have occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO DOES
ORDAIN AS FOLLOWS:
SECTION 1. The recitals above are each incorporated by reference and adopted as findings by
the City Council.
SECTION 2. Chapter 4 of Title 3 of the San Juan Capistrano Municipal Code is hereby amended
in its entirety to read as follows :
"CHAPTER 4. PROCUREMENT PROCEDURES
Sec. 3-4.101. Adoption of purchasing system.
Sec. 3-4.102. City's purchasing system.
Sec. 3-4.103. Definitions.
Sec. 3-4.201. Purchasing Officer.
Sec. 3-4.202. Exemptions from centralized purchasing.
ATTACHMENT 11
Sec. 3-4.203. Purchasing authority.
Sec. 3-4.204. Emergency purchases.
Sec. 3-4.301. Purchases under $10,000.
Sec. 3-4.302. Purchase orders.
Sec. 3-4.303. Encumbrance of funds.
Sec. 3-4.304. Competitive bidding.
Sec. 3-4.305. Open market and informal quote purchases.
Sec. 3-4.306. Formal request for proposal or request for qualifications.
Sec. 3-4.307. Qualified bidders list.
·Sec. 3-4.308. Informal bid process.
Sec. 3-4.309. Formal bid process.
Sec. 3-4.310. Exceptions to competitive bidding.
Sec. 3-4.311. Inspections and testing.
Sec. 3-4.401. Surplus supplies and equipment:
Sec. 3-4.402. Recycled products.
Sec. 3-4.501. Public works projects.
Article 1. General Provisions
Sec. 3-4.101. Adoption of purchasing system.
This purchasing system is hereby adopted in order to establish efficient regulations,
policies and procedures for the purchase of goods, supplies, equipment, materials, and
services, to secure on behalf of the City, the goods, supplies, equipment, materials, and
services at the lowest possible cost, taking into consideration quality , service levels, and
time constraints, together with other relevant factors, to exercise positive financial control
over purchases and procurements, to clearly define authority for the purchasing function,
and to comply with all applicable laws in a professional and ethical manner.
Sec. 3-4.102. City's purchasing system.
This purchasing system is hereby adopted in accordance with the provisions of Sections
54202 through 54205 of the Government Code of the State of California. The authority
for the purchase of goods, supplies, equipment, materials, and services shall be vested
in a Purchasing Officer as designated in Section 3-4.201, and the procedures and policies
contained in this chapter, the City's administrative purchasing policies and procedures,
as well as supplemental rules and resolutions adopted by the City Council or its designee
shall hereafter be followed for the procurement of goods, supplies , equipment, materials
and services.
Sec. 3-4.103. Definitions.
For the purposes of this chapter, the words and terms set forth below shall be construed
in accordance with the following definitions :
(a) "Budgeted" shall mean the amount of appropriations within a fund adopted for
expenditure by the City Council.
(b) "Formal bid process" shall mean the public bidding process used for purchases of
goods, supplies, equipment, or materials. The process requires a public notice inviting
bids, availability of specifications, bid opening, determination of lowest responsive and
ATTACHMENT 11
2
responsible bidder, awarding of the bid, and public access to the results of the process.
The same process is used for formal requests for proposals/qualifications.
(c) "Goods, supplies, equipment, and materials" shall mean fixed, movable,
disposable, or reusable products, commodities, or items used by the City, including, but
not limited to, office supplies, program supplies, subscriptions, vehicles, fuel and vehicle
supplies, tools, computers, computer hardware and software, landscape and irrigation
supplies, power tools, janitorial supplies, office furniture, and fixtures that will be furnished
to or used by any department.
(d) "Informal bid process" shall mean a bidding process used, when applicable, for
purchases of goods, supplies, equipment, materials or services. The process requires a
notice inviting informal bids, which shall be mailed to contractors on the Qualified Bidders
List and, where applicable, advertised in designated construction trade journals,
availability of project details, bid opening, determination of successful bidder, and
awarding of the contract.
(e) "Maintenance services," as defined as "maintenance work" in Public Contract Code
section 22002, shall mean the furnishing of labor, time or effort by a contractor, including,
but not limited to:
(1) Routine, recurring, and usual work for the preservation or protection of a publicly
owned, or publicly operated facility for intended purposes;
(2) Minor repainting;
(3) Resurfacing of streets and highways at less than one inch;
(4) Landscape maintenance, including mowing, watering, trimming, pruning, planting,
replacement of plants, and servicing of irrigation and sprinkler systems; and
(5) Work performed to keep, operate and maintain publicly owned water or waste
disposal systems.
(f) "Originating department" shall mean any department requiring goods, supplies,
equipment, materials, services, or construction procured pursuant to this chapter.
(g) "Personal services" shall mean the furnishing of labor, time or effort by a contractor
for such non-professional services as the City may, from time to time, find necessary and
proper for the functioning of the City.
(h) "Professional services" shall mean services provided by any ~pecially trained,
educated, experienced or licensed person , company, corporation , or firm, and which
involve the exercise of discretion and independent judgment together with an advanced
or specialized knowledge, expertise, training, or unique skills gained by formal studies or
experience.
(i) "Public works project," as defined as "public project" in Public Contract Code section
22002, shall mean construction, reconstruction, erection, alteration, restoration,
improvement, demolition, and repair work involving any facility owned, leased, or
operated by the City, and 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 also within this definition.
U) "Purchase" shall mean an order or contract for goods, supplies, equipment,
materials or services for a specific quantity, purpose, or period of time.
ATTACHMENT 11
3
(k) "Purchase order" shall mean a commercial document issued by a buyer to a seller,
indicating types, quantities, and agreed prices for products or services the seller will
provide to the buyer.
(I) "Qualified bidders list" shall mean one list for ongoing service requirements for the
same or very similar services, including maintenance services, professional services,
personal services, and qualified construction contractors, categorized by the type of
product sold or work performed for use in soliciting bids. The Qualified bidders list shall
be approved by the City Council at least every three (3) years. The City Manager shall
have the authority to add qualified bidders to the list as needed, however any additions
must be submitted to the City Council for ratification at the next regular City Council
meeting.
(m) "Responsible bidder" shall mean a bidder who has demonstrated the attribute of
trustworthiness, as well as quality, fitness, capacity, and experience to satisfactorily
perform the work proposed.
(n) "Responsive bidder" shall mean a bidder who has submitted a bid which conforms
in all material respects to the notice inviting bids.
(o) "Services" means either "personal services", "maintenance services" or
"professional services".
(p) "Sole source" shall mean an award for a commodity or service that can feasibly be
obtained from only one source.
(p) "Surplus property" means property, other than real property, no longer needed by
City departments for their operations, obsolete property, property in poor or nonworking
condition, or property that is a by-product (i.e., scrap metal, used tires, oil, etc.)
Article 2. Delegation of Authority
Sec. 3-4.201. Purchasing Officer.
The position of Purchasing Officer is hereby created. The City Manager, or the City
Manager's designee, shall serve as the Purchasing Officer. The Purchasing Officer shall
have authority to:
(a) Ensure full and open competition on all purchases as required under all applicable
laws and City policies;
(b) Coordinate vendor relations, locate sources of supply and evaluate vendor
performance;
(c) Recommend revisions to purchasing procedures when necessary and keep
informed of current developments in the field of public purchasing;
(d) Prescribe and maintain all forms and records necessary for the efficient operation
of the purchasing function;
(e) Act as the City's agent in the transfer and disposal of surplus goods, supplies,
equipment and materials; and,
(f) Maintain a bidders' list, vendors' catalog file, and the records needed for the efficient
operation of procurements for the City.
Sec. 3-4.202. Exemptions from centralized purchasing.
ATTACHMENT 11
4
The City Council or Purchasing Officer may authorize, in writing , any department to
purchase specified goods, supplies, equipment, materials, services, or construction, but
shall require that such purchases be made in conformity with the procedures established
by this chapter and any supplemental City policies, and may further require periodic
reports from each department on the purchases made under such written authorization.
Sec. 3-4.203. Purchasing authority.
There are three (3) levels of authority applicable for the purchase of goods, supplies ,
equipment, materials, services, and public works projects, which shall be delegated as
follows:
(a) Department Heads are authorized to award or reject purchases, agreements,
contracts, bids, or purchase orders, other than for public works projects, in an amount not
to exceed ten thousand dollars ($10,000.00). Department Heads may approve
amendments or change orders to existing purchases, agreements, contracts, or purchase
orders, other than for public works projects, so long as the cumulative total of the contract
(change order(s)/amendment(s) plus original contract amount) does not exceed ten
thousand dollars ($10,000.00).
(b) The City Manager is authorized to award or reject purchases, agreements ,
contracts, bids, purchase orders, and public works projects, in an amount not to exceed
forty-five thousand dollars ($45,000.00). The City Manager may approve amendments or
change orders to existing purchases, agreements, contracts, purchase orders, other than
for public works projects, so long as the cumulative total of the contract (change
order(s)/amendment(s) plus original contract amount) does not exceed forty-five
thousand dollars ($45,000.00).
(c) The City Council is authorized to award or reject purchases, agreements , contracts ,
bids, purchase orders , change orders, or amendments that exceed forty -five thousand
dollars ($45 ,000 .00) for goods, supplies , equipment, materials, professional and
maintenance services, or public works projects .
(d) Department Heads are authorized to award or reject change orders to contracts for
the construction of a public works project of up to ten percent (10%) of the contract
amount up to a cumulative amount (original contract amount, plus change orders) of forty-
five thousand dollars ($45,000.00) on City Manager approved contracts. The cumulative
change order amounts may not exceed the project's contingency amount or the City
Council approved budget, whichever is less .
(e) The City Manager is authorized to award or reject change orders to contracts for
the construction of a public works project of up to ten percent ( 10%) of the contract
amount up to a cumulative amount (original contract amount, plus change orders) of two
hundred thousand dollars ($200,000.00) on City Council approved contracts. The
cumulative change order amounts may not exceed the project's contingency amount
(typically ten percent (10%) of the contract award amount) or the City Council approved
budget, whichever is less.
Sec. 3-4.204. Emergency purchases.
The City Manager may authorize the purchase of goods, supplies, equipment ,
materials, and services without following certain City purchasing policies and procedures
ATTACHMENT 11
5
as prescribed by the Purchasing Officer, including obtaining the appropriate level of
authority and competitive bidding, where the City Manager determines that an emergency
exists and the public health, safety, or welfare of the community would be affected. All
emergency purchases that would have otherwise required City Council approval due to
the contract amount, or would have otherwise required a formal bid process or informal
bid process, must be submitted to the City Council for ratification at the next regular City
Council meeting after the purchase is authorized. For public works projects, the City
Manager shall comply with the requirements set forth in Section 22050 of the Public
Contracts Code.
Article 3. Purchasing Procedures
Sec. 3-4.301. Purchases under $10,000.
Purchases which have a total amount of ten thousand dollars ($10,000.00) or less may
be made utilizing petty cash , check request, or other procedures, as may be prescribed
in writing by the Purchasing Officer.
Sec. 3-4.302. Purchase orders.
Purchase of goods, supplies, equipment, materials or services in excess of ten
thousand dollars ($10,000.00) shall be made by purchase order or written contract.
Except as otherwise provided in this chapter, no purchase order shall be issued unless
the prior approval of the Purchasing Officer, or the Purchasing Officer's designated
representative, has been obtained.
Sec. 3-4.303. Encumbrance of funds.
Except in cases of emergency, the Purchasing Officer shall not issue any purchase
order(s) for supplies and equipment unless there exists an unencumbered appropriation
in the City's budget against which such purchase is to be charged.
Sec. 3-4.304. Competitive bidding.
The total estimated cost of the goods, supplies, equipment, materials, services, or
project determines the bidding procedures and procurement methods that must be
followed, as described below:
(a) Goods , supplies , equipment and materials :
(1) No bidding required: 10 ,000.00 or less.
(2) Informal quote: $10,000.01-$25,000.00.
(3) Formal bid process: Over $25,000.00.
(b) Professional, personal or maintenance service contracts:
(1) No bidding required: $10,000 .00 or less.
(2) Informal quote: $10,000.01-$25,000.00.
(3) Formal RFP/RFQ bid process : Over $25 ,000.00.
(c) Public works projects :
(1) No bidding required: $60,000.00 or less. (See section 3.4-501 (a).)
ATTACHMENT 11
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(2) Informal bid process: $60,000.01 to $200,000.00 .
(3) Formal bid process: Over $200,000.00.
Sec. 3-4.305. Open market and informal quote purchases.
Purchases of goods, supplies, equipment, materials, and professional, personal and
maintenance services of an estimated cost in the amount of twenty-five thousand dollars
($25,000.00) or less may be made by the appropriate level of authority identified in
Section 3-4.203 above, utilizing the open market process or informal quote process, as
prescribed by the Purchasing Officer, without adhering to the procedures prescribed for
Informal bid process or formal bid process. The open market process and informal quote
process shall follow, at a minimum, the following guidelines:
(a) Minimum number of quotes. Open market purchases and informal quotes shall,
whenever possible, be based on at least three (3) quotes.
(b) Soliciting quotes. The Originating department shall solicit quotes from prospective
vendors by written request or telephone request.
(c) Award of purchase. Open market purchases and informal quotes purchases shall
be awarded to the vendor presenting a quote that is in the City's best interests as
determined by the Department Head. Contracts for the purchase of professional services
shall be awarded on the basis of demonstrated competence and professional
qualifications.
(d) Additional procurement requirements. In circumstances where more restrictive
requirements apply (e.g., procurement involving _grant funds), the City will follow those
requirements.
Sec. 3-4.306. Formal request for proposal or request for qualifications.
The request for proposal (RFP) or request for qualifications (RFQ) process shall be
utilized to engage services on the basis of demonstrated competence and qualifications
for the types of services to be performed and at fair and reasonable prices to the City.
The following minimum guidelines and procedures shall be implemented by the
Purchasing Officer:
(a) The originating department shall prepare the RFP/RFQ for the type of services to
be performed, which shall contain, among other details, scope of the problem or objective,
services to be performed, work product to be provided, anticipated time schedule,
evaluation factors, expectations, limitations, contractual requirements, types of
experience and qualifications considered in the evaluation, and other requirements
specific to the scope of work.
(b) In issuing the RFP/RFQ, the originating department shall prepare a list of at least
three (3) potential firms to receive the RFP/RFQ, and where appropriate, advertise the
RFP/RFQ in a local newspaper of general circulation. The City shall allow a reasonable
length of time, based on the complexity and size of the project, between solicitation and
closing dates to provide potential applicants time to respond.
(c) All proposals received by the City in response to an RFP/RFQ shall be time stamped
and submitted to the originating department. All proposals received by 5:00 p.m. on the
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closing date of the RFP/RFQ shall be opened in the presence of the Department Head,
or the Department Head's designee, on the following workday.
(d) Proposals shall be evaluated by a selection committee, appointed by the
Department Head of the originating department, subject to the approval of the City
Manager or Purchasing Officer, on the general quality and responsiveness of the
proposal, the qualifications of the organization or personnel submitting the proposal, and
when applicable, the proposed cost for the services requested.
(e) The formal RFP/RFQ process may be bypassed only in the following
circumstances:
(1) In emergency situations where the Department Head determines that an
emergency exists and the public health, safety or welfare of the community would be
affected;
(2) When only one known service provider is available; or
(3) When extenuating circumstances would make the formal RFP/RFQ process not the
most cost-effective approach.
(f) In circumstances where more restrictive requirements apply (e.g., procurement
involving grant funds), the City will follow those requirements.
Sec. 3-4.307. Qualified bidders list.
(a) The Purchasing Officer shall develop criteria and procedures to establish a qualified
bidders list, which shall encompass qualified vendors registered with the City and the
following categories of contractors:
(1) Maintenance contractors that provide services with recurring and usual work for the
preservation or protection of any publicly owned or publicly operated facility for its
intended purposes;
(2) Professional service contractors that are educated or licensed specialists who
provide services of an advisory nature and provide recommendations for a course of
action, an end product, or the transmittal of information.
(b) In order to compile this list, the Purchasing Officer shall select, where possible, at
least three (3) vendors, consultants, or contractors for each category of services required,
who shall be placed on the qualified bidders list following an informal solicitation of
qualifications, and an evaluation and selection process, which shall be established by the
Purchasing Officer.
(c) The qualified bidders list shall be approved by the City Council at least every three
(3) years. The City Manager shall have the authority to add qualified bidders to the list as
needed, however any additions must be submitted to the City Council for ratification at
the next regular City Council meeting.
(d) All vendors, consultants, and contractors on the qualified bidders list shall be
reviewed and approved by the City Manager on an annual basis.
(e) In addition to the foregoing, the Purchasing Officer may develop and maintain a list
of qualified construction contractors who are called upon through the Informal bidding
process described in Section 3-4.308 (below) to perform certain public works projects.
The list of qualified contractors, identified according to categories of work, shall be
ATTACHMENT 11
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developed and maintained in accordance with the provisions of Section 22034 of the
Public Contract Code and criteria promulgated from time to time by the California Uniform
Construction Cost Accounting Commission
Sec. 3-4.308. Informal bid process for Public Works Projects.
The City has elected to follow the uniform construction cost accounting procedures for
all public works projects . Contracts for public works projects with an estimated cost of
over sixty thousand dollars ($60,000 .00) and up to two hundred thousand dollars
($200,000.00) may be let in accordance with the following informal bid process:
(a) The originating department shall prepare a notice inviting informal bids, which
provides, at a minimum, a description of the project and scope of work, a method to obtain
more detailed information on the project and scope of work, a proposed contract,
applicable bond and insurance requirements, and the time and place for the submission
of bids.
(b) The originating department shall mail a notice inviting informal bids to all
construction contractors on the qualified bidders list and/or advertise the notice inviting
informal bids in all designated construction trade journals no less than ten (10) calendar
days before the bids are due.,
(c) The City Clerk shall open all bids at the time and place stated in the notice inviting
informal bids.
(d) The City, by way of the City Manager or City Council, where applicable, shall award
the public works project to the lowest responsive and responsible bidder.
(e) In the event an informal bid result for the lowest responsive and responsible bidder
results in all bids over two hundred thousand dollars ($200,000.00), but less than two
hundred twelve thqusand five hundred dollars ($212 ,500.00), the City Council may award
the public works project using the Informal bid process only after the City Council
approves such an award by four-fifths (4/5) vote consistent with Public Contract
Code Section 22034.
(f) The originating department or Purchasing Officer shall follow and comply with all
procedures and requirements set forth in Public Contract Code Section 22030 et seq.,
concerning informal bidding, this chapter, and any supplemental policies prescribed by
the Purchasing Officer.
(g) In circumstances where more restrictive requirements apply (e.g., procurement
involving grant funds), the City will follow those requirements.
Sec. 3-4.309. Formal bid process.
Except as otherwise provided in this chapter, purchases and contracts for goods,
supplies, equipment, and materials, and services having a value greater than twenty-five
thousand dollars ($25,000.00) and public works projects valued with an estimated cost
greater than two hundred thousand dollars ($200,000.00) shall be subject to the following
formal bid process:
(a) Notice inviting bids. Notice inviting bids shall include: (i) a general description of the
goods or services to be purchased; (ii) where bid forms and specifications may be
obtained; and (iii) the date, time, and place for opening of the bids . The publication or
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posting of the notices inviting bids shall be given at least fourteen (14) days before the
date of opening bids . The notice shall be published in a newspaper of general circulation,
printed and published in the City, or, if there is none, the notice shall be posted in at least
three (3) public places in the City which have been designated by resolution as the places
for posting public notices. The notice shall also be mailed to all construction trade journals
specified in Public Contract Code Section 22036 at least thirty (30) calendar days before
the date of opening the bids, or emailed to the construction trade journals at least fifteen
(15) calendar days before the date of opening the bids .
(b) Bidder's security. When deemed necessary by the Purchasing Officer or originating
department, bidder's security may be prescribed in the public notice inviting bids. Bidders
shall be entitled to the return of bid security ; provided, however, a successful bidder shall
forfeit his bid security upon his refusal or failure to execute the contract within thirty (30)
calendar days from the date of the award of the contract, unless in the latter event the
City is solely responsible for the delay in executing the contract. The Purchasing Officer
or originating department, on the refusal or failure of the successful bidder to execute the
contract, may award it to the next lowest responsive and responsible bidder.
(c) Bid opening procedure. Sealed bids shall be submitted to the City Clerk and shall
be clearly identified with the bid number on the envelope. Upon receipt, the City Clerk
shall date and time stamp the envelope. Bids shall be opened in public at the time and
place stated in the public notices. All bids received shall be open for public inspection
during regular business hours for a period of not less than thirty (30) calendar days after
the bid opening.
(d) Rejection of bids. In its discretion, the City Council may reject any and all bids,
accept or reject any one or more items of a bid, or 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
readvertise for bids pursuant to the procedure prescribed in this section or have the
project done by force account.
(e) Award of contracts. Contracts shall be awarded by the City Council to the lowest
responsive and responsible bidder.
(f) Tie bids. If two (2) or more bids received are for the same total amount, with price,
quality and services being equal, the City Council may accept the bid it chooses or accept
the lowest bid made after negotiation with the tie bidders at the time of the bid opening.
(g) Additional bidding requirements . In circumstances where more restrictive
requirements apply (e.g., procurement involving grant funds), the City will follow those
requirements.
Sec. 3-4.310. Exceptions to competitive bidding.
There shall be no informal bid process or formal bid process requ ired for the following
purchases under any of the following circumstances:
(a) Where the acquisition of goods, supplies, equipment, materials, or services is
necessitated by reason of emergency circumstances where the procurement is required
to prevent the immediate interruption or cessation of necessary City services or to
safeguard life, property , or the public health and welfare, such purchases shall be made
in accordance with Section 3-4.204.
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(b) When only one known source of the goods, supplies, equipment, materials, or
services is available.
(c) When the City has a contract with another governmental agency to purchase a
particular item or service on a cooperative basis.
(d) When the City Manager determines that compliance with the above formal
procurement procedures for the purchase of goods, supplies, equipment, materials or
services cannot be achieved due to timing requirements, which could have not otherwise
been avoided, the City may proceed with an informal solicitation of quotes from at least
three vendors. A description of the circumstances, the quotes received, and the basis for
vendor selection shall be approved by the City Manager.
(e) The City Council may waive the requirement for competitive bidding for the
purchase of goods, supplies, equipment, materials or services when compliance with
such requirement is not in the best interest of the City, as determined by the City Council.
Sec. 3-4.311. Inspections and testing.
The Purchasing Officer or originating department shall inspect goods, supplies,
equipment, materials and related services to determine their conformance with the
specifications set forth in the purchase order or contract. The Purchasing Officer or
originating department shall have the right to waive any defect, irregularity, or informality.
The Purchasing Officer or originating department shall have the authority to require
chemical and physical demonstrative testing of samples submitted with bids and samples
of deliverables which are necessary to determine their quality, fitness for a particular use
and conformance with specifications.
Article 4. Miscellaneous Procedures
Sec. 3-4.401. Surplus supplies and equipment.
All departments shall submit to the Purchasing Officer, at least annually, a report
describing all goods, supplies, equipment, materials, fixtures and other personal property
of the City which is determined to be no longer required by the department because of
decreased use, poor condition, damage not worth the cost of repair, or which has become
obsolete.
(a) The Purchasing Officer, with the approval of the City Manager, is authorized from
time to time to sell or exchange any and all goods , supplies, equipment, materials,
fixtures, and other personal property of the City having a salvage value and which is
obsolete or unserviceable, or is deemed to be surplus for which replacements are to be
purchased. The Purchasing Officer may sell the same for the best price obtainable in the
open market, or, when it is deemed advisable, to the highest bidder at a public sale, or
the Purchasing Officer may exchange the same for other property or for credit on other
property.
(b) If the Purchasing Officer determines that any such obsolete, unserviceable, or
surplus property has no salvage value, it may be disposed of in any acceptable manner.
(c) All sales shall be "as is" and "where is" with no warranty, guarantee or
representation of any kind, express or implied, as to the condition, utility or usability of the
property. All sales shall be paid to the City in cash, certified check, money order, or in a
manner agreeable to the Purchasing Officer.
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(d) The Purchasing Officer shall be authorized, with the approval of the City Manager,
to sign bills of sale and any other documents evidencing the transfer of title to such
property by and on behalf of the City.
(e) Prior to disposing of any obsolete, unserviceable or surplus property having an
estimated market value in excess of one thousand dollars ($1,000.00), the Purchasing
Officer shall inform the City Council of the nature of the property proposed for disposition
and the proposed sales price. Such disposition shall be subject to the City Council's prior
approval.
(f) The Purchasing Officer may prescribe additional policies and procedures for the
identification and disposition of surplus property as the Purchasing Officer deems
necessary.
Sec. 3-4.402. Recycled products.
A five percent (5%) or greater price preference may be given to recycled products or
reusable products offered as alternatives to disposable products, and products designed
to be recycled where they are offered as alternatives to nonrecyclable products. The
preference percentage shall be based on the lowest bid or price quoted by the supplier
or suppliers offering nonrecycled products. Purchase of products which cannot be
recycled or reused is strongly discouraged.
Sec. 3-4.501. Public works projects.
(a) Public works projects, as defined in Public Contract Code Section 22002, of sixty
thousand dollars ($60,000.00) or less may be performed by employees of the City by
force account, by negotiated contract or by purchase order.
(b) Public works projects, as defined in Public Contract Code Section 22002, of two
hundred thousand dollars ($200,000.00) or less may be awarded by Informal bid process
as described above (including, without limitation, as provided in subdivision (a) of this
section 3-4.501 ), and consistent with Public Contract Code Section 22030 et seq.
(c) Public works projects, as defined in Public Contract Code Section 22002, of more
than two hundred thousand dollars ($200,000.00) shall be awarded by formal bidding
process as described above, and consistent with Public Contract Code Section 22030 et
seq."
ATTACHMENT 11
12
CITY OF SAN JUAN CAPISTRANO
2 CITY COUNCIL POLICY 126
3 (Me~GGteeer ~6 . 20 12Rev ised June 4. 20 19 )
4
5
6 SUBJECT: PURCHASING POLICES AND PROCEDURES
7 Effective: Qeseffibor 13, 2012August 2 , 20'19
8 Policy Number: City Council Policy No . ~xxx . replacing previous Ci ty Counc il Policy
9 No. 126 . City Council Policy No. 112 and Administrative Policies 504, 507, and 510
10
11 Contents
12 SECTION I -GENERAL INFORMATION ....................................................................... 3
13 A. Glossary of Terms -The words defined in this Section shall have the meaning
14 set forth below whenever they appear in this Policy: ............................................ 3
15 B. Purpose and Goals ............................................................................................... 7
16 C. Roles and Responsibilities ................................................................................... 7
17 D. Purchasing Cycle .................................................................................................. 8
18 E. Purchase Orders .................................................................................................. 9
19 F . Signature Authorization within Departments ....................................................... 1 O
20 G. Ethics .................................................................................................................. 10
21 H. Emergency Purchases ....................................................................................... 12
22 I. Recycled Products .............................................................................................. 13
23 J. Energy Efficient Products ................................................................................... 15
24 K. Local Bidders ...................................................................................................... 15
25 SECTION II -MINOR PURCHASES ............................................................................ 16
26 A. Petty Cash .......................................................................................................... 16
27 B. Credit or Procurement Cards .............................................................................. 17
28 C . Check Requests ................................................................................................. 18
29 SECTION Ill -GOODS, SUPPLIES, EQUIPMENT, AND MATERIALS ........................ 18
30 SECTION IV -SERVICE CONTRACTS (PROFESSIONAL AND MAINTENANCE) .... 20
31 SECTION V -PUBLIC WORKS PROJECTS ............................................................... 24
32 SECTION VI -CHANGE ORDERS FOR PUBLIC WORKS PROJECTS .................... 29
33 SECTION VII -BIDDING PROCEDURES .................................................................... 30
34 A. Introduction to Bidding Procedures ..................................................................... 30
35 Overview ............................................................................................................ 30
36 Documenting the Bid Process ............................................................................ 30
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37 B . Qualified Bidder List ........................................................................................... 31
38 C. Informal Solicitation of Qualifications (SOQ) ...................................................... 33
39 D. Lowest Responsible (Responsive and Qualified) Bidder .................................... 33
40 E . Informal Quotes .................................................................................................. 34
41 F. Formal Request for Proposal or Request for Qualifications (RFP/RFQ) ............. 35
42 G. Informal Bid Process .......................................................................................... 39
43 H. Formal Bid Process ............................................................................................ 39
44 I. Exceptions to Competitive Bidding Requirements .............................................. 42
45 SECTION VIII -FEDERAL PROCUREMENT .............................................................. 44
46
47
48
.
SECTION IV.\AJ..1.-DISPOSITION OF SURPLUS PROPERTY/CAPITAL ASSETS
(OTHER THAN REAL PROPERTY) .............................................................................. 44
49 APF'ENDIX A -PURCHASING AUTHORITIES ............................................................ 52
50 Uniform Public Construction Cost Accounting Resolution 06-09-19-04 approved
51 September 19, 2006 ............................... ~ .......................................................... 52
52
53
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spelling and grammar
Formatted: Normal
ATTACHMENT 12
54 SECTION I -GENERAL INFORMATION
55
56 A. Glossary of Terms -The words defined in this Section shall have the meaning set
57 forth below whenever they appear in this Policy:
58
59 Amendment shall mean a property executed written Contract entered into and
60 between the City and a Contractor covering modifications to the original Contract and
61 which may result in adjustments to provisions of the Contract, including, but not limited
62 to, terms, compensation, and/or period of performance .
63
64 Bid Recap Form shall mean the form required by the Finance Department to initiate
65 Purchase Orders that exceed certain dollar thresholds, and which is used to
66 demonstrate that the Procurement is carried out in a manner that is consistent with
67 this Policy.
68
69 Budgeted shall mean the amount of appropriations within a fund adopted for
70 expenditure by the City Council.
71
72 CalCard (Cred it Card) shall mean the City issued credit cards provided as a method
73 to procure budgeted low value items, typically up to $500, similar to the process for a
74 check request or petty cash reimbursement.
75
76 Change Order shall mean a properly executed written order entered into and
77 between the City and the Contractor, or unilaterally issued by the City, covering
78 modifications to the Contract, which may result in changes to the scope of work,
79 contract amount, requirements, and/or period of performance .
80
81 Check Request shall mean a request for a check issuance for purchases of
J 82 $3;{}0010,000 or less, or where a Purchase Order would not be expedient.
83
84 Chief Financial Officer shall mean the Department Head for the Finance
85 Department, or his or her designee.
86
87 City Manager shall mean the City Manager of San Juan Capistrano, or his or her
88 designee.
89
90 Contract shall mean any type of agreement for the purchase of goods and/or
91 services. Contracts may be referred to in various ways, including "contract,"
92 "agreement," purchase order" and "task order."
93
94 Contract Transmittal Form shall mean a form containing a checklist of all
95 required documentation for the procurement of Goods, Supplies, Equipment, and
96 Materials or Service Contracts.
97
98 Contractor shall mean any person or entity that has a contract with the City .
99
100
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IOI Department Head shall mean the person tasked with the responsibility for the day-
102 to-day operation of a department, including managing staff and developing plans in
I 03 collaboration with the City Manager for the future of the organization, or his or her
104 designee.
105
106 Emergency shall mean a sudden, unexpected occurrence that poses a clear and
107 imminent danger, requiring immediate action to prevent or mitigate the loss or
108 impairment of life, health, property, or essential public services.
109
11 O Emergency Purchase Authorization Form shall mean the form required for a
111 Department Head to declare the need for an Emergency purchase.
112
113 Encumbrance shall mean the estimated amount set aside from the budget for a
114 particular Procurement.
115
116 Fee Recovery Vendors shall mean vendors on the Qualified Bidders list retained for
117 development projects, and who are paid by developers (examples: outside EIR, plan
118 check review).
119
120 Finance Department shall mean the department so designated by the City Manager
121 to be responsible for the day-to-day administration of the City's purchasing policies
122 and procurement procedures.
123
124 Formal Bid Process shall mean the public bidding process used for purchases of
125 goods, supplies, equipment, materials or services. The process requires a public
126 notice inviting bids, availability of specifications, bid opening, determination of lowest
127 responsive and responsible bidder, awarding of the bid, and public access to the
128 results of the process.
129
130 Formal Request for Proposal (RFP)/ Request for Qualification (RFQ) shall mean
131 a selection process designed to ensure that the City has engaged the most qualified
132 consultant available for the services to be provided.
133
134 Goods. Supplies. Equipment and Materials shall mean fixed, movable, disposable,
135 and/or reusable products, commodities, or items used by the City, including, but not
136 limited to, office supplies, program supplies, subscriptions, vehicles, fuel and vehicle
137 supplies, tools, computers, computer hardware and software, landscape and irrigation
138 supplies, power tools, janitorial supplies, office furniture, and fixtures, which shall be
139 furnished to or used by any department.
140
141 Informal Bid Process shall mean a bidding process used, when applicable, for
142 purchases of goods, supplies, equipment, materials or services. The process
143 requires a notice inviting informal bids, which shall be mailed to contractors on the
144 Qualified Bidders List and, where applicable, advertised in designated construction
145 trade journals, availability of project details, bid opening, determination of successful
146 bidder, and awarding of the contract.
147
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148 Informal Quote shall mean a selection process used to assure the most competitive
149 price is received for an item, while avoiding the additional time and expense involved
150 in formal bidding.
151
152 Informal Solicitation of Qualifications (SQQ) shall mean the process that
153 establishes criteria for evaluating firms that request placement on the City's Qualified
154 Bidders List.
155
156 Maintenance Services shall mean the furnishing of labor, time, or effort by a
157 contractor including, but not limited to (a) routine, recurring, and usual work for the
158 preservation or protection of a publicly-owned, or publicly-operated facility for intended
159 purposes; (b) minor repainting; (c) resurfacing of streets and highways at less than
160 one inch (1"); (d) landscape maintenance , including mowing, watering, trimming,
161 pruning, planting, replacement of plants, and servicing of irrigation and sprinkler
162 systems; and (e) work performed to keep, operate and maintain publicly-owned water
163 or waste disposal systems.
164
165 New Vendor Application Form shall mean a form required of all new vendors that
166 provides pertinent information, including information for the issuance of a federal W9
167 Request for Taxpayer Identification Number and Certification form .
168
169 Non -Fee Recovery Vendors shall mean vendors on the Qualified Bidders List that
170 have no offsetting revenue from developers.
171
172 Originati ng Department shall mean any department requmng goods, supplies ,
173 equipment, materials, services, and/or construction procured.
174
175 Petty Cash shall mean a cash di~bursement for authorized expenses up to a
176 maximum of $50.00 for such items as emergency supplies and tools not readily
177 available, or an approved meeting attendance.
178
179 Procurement shall mean the buying, purchasing, renting, leasing, or otherwise
180 acquiring of any goods, supplies, equipment, materials, services, and Public Works
181 projects. Procurement shall also include all functions that pertain to the obtaining of
182 any goods, services, or construction, including description of requirements, election
183 and solicitation of sources, preparation and award of contract, and all phases of
184 contract administration.
185
186 Professional Services shall mean those services provided by any specially trained,
187 educated, experienced or licensed person, company, corporation, or firm, and which
188 involve the exercise of discretion and independent judgment together with an
189 advanced or specialized knowledge, expertise, training, or unique skills gained by
190 formal studies or experience.
191
192 Professional Services Agreements (PSA) shall mean Contracts negotiated for
193 professional services, which are based on demonstrated competence, and
194 professional qualifications for the services required .
195
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196 Public Works Projects shall mean construction, reconstruction, erection, alteration,
197 renovation, improvement, demolition, and repair work involving any facility owned,
198 leased, or operated by the City as defined in California Public Contract Code section
199 22002 , or as subsequently amended . The definition also includes painting/ repainting,
200 plumbing , electrical wiring, and/or other trade work for any facility owned , leased or
201 operated by the City. Construction, erection, improvement, or repair of dams,
202 reservoirs, and electrical transmission lines of230,000 volts and higherthat are owned
203 by the City, are also considered a Public Works project.
204
205 Purchase Order (PO) shall mean a commercial document issued by a buyer to a
206 seller, indicating types, quantities, and agreed prices for products or services the
207 seller will provide to the buyer.
208
209 Qualified Bidders List shall mean one list for ongoing service requirements for the
210 same or very similar services, including maintenance services, professional services,
211 and qualified construction contractors , categorized by the type of product sold or work
212 performed for use in soliciting bids.
213
214 Request for Purchase Order Modification CPOM) Form shall mean a form that is
215 transmitted to the Finance Department to request a change in the amount
216 encumbered for a Purchase Order.
217
218 Requisition shall mean a document making a demand for goods, supplies,
219 equipment, and materials and quoting proper authority for the demand, funds, delivery
220 date, quantities, etc.
221
222 Responsible Bidder shall mean a bidder who has demonstrated the attribute of
223 trustworthiness , as well as quality , fitness, capacity, and experience to satisfactorily
224 perform the work proposed.
225
226 Responsive Bidder shall mean a bidder who has submitted a bid which conforms in
227 all material respects to the Notice Inviting Bids.
228
229 Sole Source shall mean an award for a commodity or service that can feasibly be
230 obtained from one source only .
231
232 Surplus Property means property, other than real property, no longer needed by City
233 departments for its operations, obsolete property, property in poor or non-working
234 condition, or property that is a by-product (i.e ., scrap metal , used tires , oil , etc.).
235
236 Un iform Public Constr ucti on Cost Accounting (UPCCA) shall mean the provisions
237 of the Public Contracts Code Sections 22010 through 22045 (PCC 22010-22045), and
238 any subsequent amendments.
239
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240 B. Purpose and Goals
~41 This AemiAistra live-Purchasin g Policy ("Policy") sets forth a centralized system and
242 outlines the authorities and responsibilities of the Purchasing Officer or the designee to
243 negotiate or contract for professional and maintenance services, Public Works projects
244 and to purchase goods, supplies, equipment, and materials required by City departments.
245 When authorized to procure materials or professional or maintenance services, all City
246 employees shall follow this Policy to correctly and ethically process procurement and
247 ensure the efficient use of public funds. Funds for Capital Improvement projects (CIP)
248 are processed and administered by various City departments, each of which shall
249 follow applicable state and federal guidelines in the procurement of contracts and
50 Public Works projects. Di rect pa ym ent by an insurer to a ven dor s ha ll be sub ject to
51 th e req ui re me nts of sa id Ins urer and Is not an ex pen diture of City reso urces sub jec t to
52 th e requ irements of this poli cy an d not re co r ded as such in the C ity 's accou ntin g
53 records or i n the City's fi na ncia l state ment s. In accordance w jth governme nt
54 acco untin g sta ndard s. City e xpe nd itures are reco rded net of insurance reco very wh e n
55 th e insu rance recove ry occu rs in the sa me yea r as lhe insu red loss.
256
257 The guiding principles of those involved in the purchasing function should be:
258
259 • To comply with State law, the City's Municipal Code, and the adopted budget
260 for all purchases and contracts.
261 • To procure the goods, supplies, equipment, materials and services needed by
262 the departments at the lowest possible cost, taking into consideration quality ,
263 service levels, and time constraints.
264 • To act in a professional and ethical manner.
265 C. Roles and Responsibilities
266
267 Procuring Department Responsibilities
268 • To anticipate requirements sufficiently in advance to allow adequate time to
269 obtain goods and services in accordance with best purchasing practices.
270 • To not split orders for the purpose of avoiding purchasing requirements.
271 • To provide detailed, accurate specifications to ensure goods and services
272 obtained are consistent with requirements and expectations.
273 • To prepare requisitions in accordance with instructions so as to minimize the
274 processing effort.
275 • To minimize emergency and sole source purchases and to provide written
276 documentation when such purchases may be necessary.
277 • To complete the Contract Transmittal Form to ensure that a vendor complies
278 with all contract requirements (insurance certificates, business license, etc.) -
279 See Contract Transmittal Form in Appendix B.
280 • To consider the use of recycled products when it is practical and economically
281 feasible.
282
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283 Finance Department Responsibilities
284 Pursuant to the City Municipal Code, the City Manager, or the City Manager's designee,
285 shall serve as the Purchasing Officer. The City Manager has designated the Chief
286 Financial Officer to serve as the Purchasing Officer.
287 The Finance Department has overall responsibility for the procurement of business service
288 supplies, the administration of the purchasing policies, and the management of surplus
289 City property, not including real property. Other purchasing responsibilities are:
290
291 • To ensure full and open competition on all purchases as required by this Policy .
292 • To coordinate vendor relations, locate sources of supply and evaluate vendor
293 performance.
294 • To recommend revisions to purchasing procedures when necessary and keep
295 informed of current developments in the field of public purchasing.
296 • To prescribe and maintain all forms and records necessary for the efficient
297 operation of the purchasing function.
298 • To act as the City's agent in the transfer and disposal of surplus equipment and
299 materials.
300 D. Purchasing Cycle
301 The purchasing cycle establishes the proper steps for City staff to follow when
302 requisitioning goods, supplies , materials and equipment; Public Works projects ; and/or
303 professional and maintenance service contracts.
304 The Budget
305 The first step in the purchasing cycle is the approval of the City's budget. The approved
306 budget provides authorization to the City Manager and designees to purchase the goods,
307 supplies , equipment, materials , and services listed in the line item budget document.
308 Such purchases are subject to additional rules, as set forth herein , including approval
309 limitations based on dollar amounts by Department Heads, the City Manager, or City
31 O Council , and/or informal and formal bidding requirements.
311 Method of Procurement
312 As the second step, the department will choose the method of procurement according to
313 the type of purchase, the dollar value of purchase , and the standards set forth in this
314 Policy. The different standards for procurement are set forth under the sections of this
315 Policy entitled "petty cash", "credit card", "check requests", "purchase orders", "goods,
316 supplies, equipment, and materials", "service contracts", and "Public Works projects ."
317
3 18 Receiving and Acceptance
3 19 The receiving and acceptance functions represent the final phase in completing the
320 purchasing cycle. At this point, the product or service is either accepted or rejected, based
321 on the quantity, quality, and/or delivery compliance of the item(s). After this phase,
322 payment authorization can proceed.
323
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324 E. Purchase Orders
325 The purchase order (PO) is the primary and preferable procurement method and
326 serves as the main source of encumbering and procuring goods and services.
327 Exceptions to this rule include purchases of services, goods , supplies , equipment
328 and materials of $50.00 or less with petty cash (see Section II, Paragraph A below),
329 credit card (see Section II, Paragraph B below), and emergencies (see Section I,
330 Paragraph G below). Important to the procurement process is the system of
331 encumbrance accounting, which helps departments control spending on amounts
332 committed prior to the actual invoicing and payment of services. A verbal
333 commitment with a vendor and purchasing without a PO is not an acceptable
334 practice, and such transactions are voidable.
335
336
337
338
339
340
341
~:; ~44
345
346
347
348
349
350
351
352
353
354
355
356
357
358
359
360
361
362
363
364
365
366
~~~ ~69
Generally, procurement of goods and services will require a standard City
agreement, which can be found on the City's Intranet. Each agreement must be
approved as to form by the City Attorney's Office . The PO is used to communicate
to a vendor the City's terms and conditions, authorize an encumbrance of City funds,
and serve as a contractual agreement to order goods and services. The PO is used
to process payment and track expenditures in the financial system. A PO shall be
obtained and funds encumbered for all purchases and contracts for services, goods,
supplies, equipment and materials exceeding $a,-00010.000 . Use of purchase orders
is recommended for amounts smaller th an $10.000 so th at information rega rdi ng
avai lab le funds is properly reported by the City's acco unti ng system . -Purchases of
the same or related items in a manner that evades or appears to evade limitations of
a predefined limit such as a procurement card purchase limit, signature limit, or bid
limit, and the intentional splitting of a purchase into two or more smaller orders for
the purpose of evading a provision of this Policy or bidding requirement are strictly
prohibited.
For a PO to be issued, the requestor shall first submit a copy of the Contract
Transmittal Form with attachments and purchase requisition to the City Clerk. The
requisition must be signed by the Department Head and Project Manager to
acknowledge the purchase.
Change Orders/Modifications to an Original Purchase Order
1. Change order/modification approvals to a PO are to be authorized by the
designated signature authority as defined in this Policy .
6-The amount to be approved is not a single change order, but rather, the cumulative
total of the original PO plus all subsequent change orders, which shall be
authorized by the designated signature authority as defined in this Policy. A
change order request must show all subsequent amounts approved on the
Purchase Order Modification Form (see Appendix B), the change order amount
requested and the cumulative total.
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r70
371 F. Signature Authorization within Departments
372
373 1. Each Department Head shall complete and forward to the Finance Department a
374 Signature Authorization form, identifying those employees approved by the
375 Department Head to sign off on various financial and other administrative
376 documents. The form shall be developed by the Finance Department and updated
377 annually,
378
379 2. The form shall identify specific Departments, Divisions or Projects, the employee's
380 name and signature and list specific documents each employee is authorized to
381 sign. It is the Department Head's responsibility to keep the information current.
382
383 3. Any documents missing the appropriate signature(s) will be returned to the
384 originating department.
385
386 4. Only Regular or Probationary City employees are authorized to sign off on
387 documents obligating the City to expend public monies. Temporary or Volunteer
388 employees, or individuals under contract with the City, may be able to acquire
389 items but any receipts must be countersigned by an authorized employee.
390
391 5. The number of authorized signatures should be kept to a minimum, to ensure
392 better control over departmental appropriations. In no event shall procurements
393 over $10,000 be approved by an employee other than the Department Head or
394 Acting Department Head.
395
396 G. Ethics
397 The purpose of this section is to provide a general code of conduct for all personnel who
398 may be engaged in the City's purchasing function. It is essential that all personnel
399 involved in the procurement process conduct themselves in a manner that maintains
400 impartiality and complete objectivity, to meet the continuing scrutiny of suppliers and the
401 public. In dealings with the business community, it is necessary to exercise a strict rule of
402 professional conduct to ensure that business relations are not compromised or even have
403 the appearance of being compromised. The City's reputation for fairness and integrity in
404 dealing with vendors and others must always be maintained.
405 The following are the City's standards in ethics for purchasing:
406 • To buy on the basis of value, recognizing that value represents a combination
407 of quality, service and price which assures the greatest economy to the City.
408 • To recognize that permanent business relationships should be established on
409 the basis of honesty and fair dealings.
41 o • To be courteous and considerate in all City dealings.
411 • To be prompt in all appointments and to negotiate with reasonable speed.
412 • To avoid statements that might injure or discredit legitimate vendors and to
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413 avoid disclosure of confidential information that might give an unfair advantage
414 in a competitive business transaction.
415
416
• To recognize that character is an important asset in commerce and should be
given major consideration in the selection of sources of goods or services.
• To adjust claims and settle disputes on the basis of facts and fairness. 417
~18
419
420
421
422
423
424
• To decline politely any gratuity, rebates, kickbacks, accommodation, or other
unlawful consideration from any one supplier, vendor, or firm with whom the
City is currently doing or could potentially do business. (See also the Fair
Political Practices Commission guidelines in this policy.) All decisions and
actions regarding procurement should be based upon proper business
considerations, and purchasing decisions should not be influenced in any way
by personal obligations.
425 !_TO avoid the appearance of impropriety by declining to participate in the
426 selection process when there is a personal relationship with a person or
427 business entity seeking a contract with the City or where there is a personal
~28 financial interest in the purchase or contract.
429 •
430 Fair Political Practices Commission (FPPC) Gift Disclosures and Prohibitions
431 The purpose of this section is to highlight FPPC regulations regarding gifts for all
432 personnel who may be engaged in the City's purchasing function, hold the office of a public
433 official or designated in the City's conflict of interest code. It is essential that all personnel
434 involved in dealings with the business community exercise a strict rule of professional
435 conduct and abide by FPPC regulations when offered a "gift."
436 Per the FPPC manual, a "gift" is any payment or other benefit provided to you that confers
437 a personal benefit for which you do not provide goods or services of equal or greater
438 value. A gift includes a rebate or discount in the price of anything of value unless the
439 rebate or discount is made in the regular course of business to members of the public
440 (Government Code Section 82028).
441 Except as discussed below, you have "received" or "accepted" a gift when you know that
442 you have actual possession of the gift or when you take any action exercising direction or
443 control over the gift, including discarding the gift or turning it over to another person (FPPC
444 Regulation 18941 ).
445 This overview of the Fair Political Practices Commission highlights provisions of the
446 California Political Reform Act; however, you should not rely on this alone to ensure
44 7 compliance with the Act. If you have questions, consult the Act and FPPC Regulations, the
448 City Clerk or legal counsel, or call the FPPC's toll-free help line at 1-866-275-3772. Other
449 regulations and important information can be found at the FPPC website,
450 www.fppc .ca .gov.
451
452 Handbooks prepared by the California Fair Political Practices Commission can also be
453 downloaded from the FPPC website. The manuals used in the preparation of this
454 overview are:
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455
456 • Your Duty to File: http://www.fppc.ca.gov/l ibrary/seibook9-04 .pd f
457 • The Limitations and Restrictions on Gifts, Honoraria, Travel
458 and Loans : http://www.fppc .ca .gov /factsheets/q iftlocal.pdf
459 • FPPC Form 700 : http://www.fppc.ca .gov/forms/700-06-07 /Form 700-06-07.pdf
460 City Gift Acceptance Policy
461
462 Per Administrative Policy 207, City employees shall not accept gifts from the public or
463 from private individuals with whom the City does business . It is the responsibility of the
464 employee to return any gift delivered to them and to notify the City Manager's Office of
465 such action. Acceptance of any unauthorized gift shall subject an employee to
466 disciplinary action.
467
46 8 This general prohibition does not include gifts such as cookies and candies as long as
469 such relatively inexpensive expressions of appreciation are placed on a public counter for
470 everyone to enjoy. The City Manager's Office shall be promptly notified so an appropriate
4 71 letter of thanks can be sent.
472
473 H. Emergency Purchases
474
475 The City Manager may authorize the purchase of goods, supplies, equipment,
476 materials, and services without following the standard purchasing procedures (i.e .
477 competitive bidding) where he or she deems that an emergency exists and the public
47 8 health, safety or welfare of the community would be affected . All emergency purchases
479 that would otherwise require City Council approval must be submitted to the City
4 80 Council for ratification at the next regular City Council meeting after the purchase is
4 8 1 authorized . The City Manager must declare the need for an emergency purchase
4 82 using the Emergency Purchase Authorization form. This form can be found on the
4 83 City 's Intranet and is included in the Appendix. The originator of the form should
4 84 describe the emergency, including its location, in the sections provided. The estimated
4 85 cost of the goods, supplies, equipment, materials, and/or services should be provided,
486 as well as the selected vendors based on the estimated costs given. If applicable, the
4 87 City Manager should also indicate on the Emergency Purchase Authorization form,
48 8 the date of the next City Council meeting at which time the emergency purchase can
4 89 be ratified .
49 0
491 After the Department Head of the originating department signs the form, the
49 2 Department Head will select the vendors to complete the necessary work . If time
493 permits and the duration of the work shall last longer than seven days , the originating
494 department will prepare two original contracts and obtain the selected vendor's
495 signatures. If time is of the essence, then a signed proposal is sufficient to submit for
496 City Council ratification, if City Council ratification is required as provided below. The
497 Department Head then submits the required requisitions, Emergency Purchase
49 8 Authorization form with the Department Head's signature, and the completed
499 contracts, if applicable, to the Finance Department. The Department Head shall issue
500 the notice to proceed for work up to a known or estimated amount that does not exceed
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501 $25,000. The City Manager shall issue the notice to proceed for work up to a known
502 or estimated amount that exceeds $25,000. As emergency purchases are exempted
503 from competitive bidding, no Bid Recap form is required. The Finance Department will
504 print the PO and mail it along with one original contract to the vendor.
505
506 If the emergency purchase would have otherwise required formal or informal bidding
507 procedures, irrespective of the dollar thresholds below, the originating department
508 must obtain City Council ratification of the purchase at the next regularly scheduled
509 meeting. The originating department will prepare the Agenda Report requesting City
51 O Council ratification and attach a copy of the Emergency Purchase Authorization form.
511 The originating department should retain a copy of the Emergency Purchase
512 Authorization form for its records. For Public Works projects, the originating
513 department shall comply with the requirements set forth in Section 22050 of the Public
514 Contracts Code.
515 I. Recycled Products
516
517 Solid waste management poses an increasingly difficult problem as America's
518 consumption increases and landfill space becomes scarce . As part of an effort to address
519 this issue, the City of San Juan Capistrano has developed a recycling program, both for
520 City residents, businesses, and for City employees. It is the intent of the City Council that
521 the City of San Juan Capistrano takes a leadership role not only in recycling its waste
522 products but in the purchase of recycled products for use in the delivery of City services .
523 It is the purpose of this policy to provide direction in the procurement and use of recycled
524 products.
525
526 Policy
527
528 1. It is the policy of the City of San Juan Capistrano to purchase and use recycled
529 products whenever possible to the extent that such use does not negatively impact
530 health, safety, or operational efficiency.
531 2 . Purchase of products which cannot be recycled or reused is strongly discouraged.
532 3. Recycled paper shall be purchased and used in all copy machines which will accept
533 it, and shall also be used for printing purposes. City staff will encourage the copier
534 industry to develop high -speed copiers which will accept recycled paper.
535 4. City departments and divisions shall use for their stationery and envelopes, recycled
536 paper which includes both secondary and post-consumer recycled content. The
537 percentages of post-consumer and secondary content shall be spelled out in the bid
538 specifications for letterhead and other paper grades based on industry availability. A
539 recycled paper designation shall be printed on all City stationery.
540 5. City departments shall examine their purchasing specifications and, where feasible,
541 restructure them to require the use of products which incorporate recycled materials
542 in their manufacture.
543 6. A five (5%) or greater price preference shall be given to recycled products, reusable
544 products offered as alternatives to disposable products , and products designed to be
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545 recycled where they are offered as alternatives to non-recyclable products . Purchase
546 of products which cannot be recycled or reused is strongly discouraged . (See
547 Municipal Code Section 3-4.403. Recycled Products). The preference percentage
548 shall be based on the lowest bid or price quoted by the supplier or suppliers offering
549 non-recycled products.
550 The City shall cooperate with the County of Orange , Orange County cities, and other
551 governmental agencies in the development of programs and procedures which will further
552 this policy.
553
554 Recycled Products Definitions
555
556 Recycled material is waste and by-products that have been recovered or diverted
557 from the solid waste stream and that can be utilized in place of raw material in the
558 manufacturing of a product. Recycled materials may consist of materials derived
559 from post-consumer waste, manufacturing waste, industrial scrap, agricultural waste
560 and other items, all of which can be used in the manufacture of new products.
561
562 Pre-consumer material or by-products are generated after the manufacture of a
563 product is completed , but before the product has reached the end-use consumer.
564 Examples of pre-consumer recovered materials include obsolete inventories of
565 finished goods, rejected unused stock, and paper wastes generated during printing,
566 cutting and other converting operations.
567
568 Post-consumer recycled materials are finished products that have served the
569 intended use and would normally be disposed of as solid waste . Examples of post-
570 consumer recovered materials include old newspapers, office paper, yard waste,
571 steel, glass, aluminum cans, plastic bottles, oil, asphalt, concrete and tires.
572
573 Criteria for Selecting Recycled Materials for Purchase
574
575 If a decision has been made to purchase recycled materials , the recommended
576 products should contain, in order of preference, the highest percentage of recycled
577 content of post-consumer recovered material available in the marketplace.
578
579 Recycled products should also be expected to perform as well as non-recycled
580 products, to be purchased at a reasonable price and to be available within a
581 reasonable time period . In addition to the recovered material content of a product,
582 important criteria in selecting products should also be the ability of the product and
583 its packaging to be reused, reconditioned for use or recycled through existing
584 recycled collection programs. Preferred products and packaging are those designed
585 to minimize waste and toxic by-products in their manufacture, use, and disposal.
586
587 Purchase of Recycled Products
588
589 Whenever printed recycled paper products are purchased, the standard phrase
590 "Printed on Recycled Paper'' and/or the standard recycle logo should be included on
591 the printed product , thereby promoting the use of post-consumer content.
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592 J. Energy Efficient Products
593
594 The City of San Juan Capistrano endeavors to purchase durable, low maintenance
595 energy-efficient equipment and products to reduce greenhouse gas emissions and to
596 lower the City 's cost of electricity consumption.
597 Policy
598 1. All Departments are encouraged to purchase energy-consuming equipment that
599 meets either Energy Star specifications or achieve performance in the upper 25%
600 of energy-efficiency, based on criteria established by the U.S. Department of.
601 Energy. Specific "Energy Star" labeled products are identified on the following
602 website: www.ene rg ystar.g ov. These products must also meet user requirements
603 for quality, performance, and durability.
604 2. The equipment categories covered under this policy include, but are not limited to:
605 • Office equipment, heating and cooling equipment
606 • Exit signs
607 • Lighting
608 • Appliances
609 • Other commercial products that consume electricity
610
611 J.,-2~.,__~~~~~~~~~~~~~~~~~~~~~~~~~~~
612 n addition, employees will use appliances and equipment in a manner that
613 optimizes their energy efficiency features by following manufacturer's instructions.
614 To accomplish this policy, City employees will be educated about the economic
615 savings and environmental benefits of Energy Star compliant equipment, as well
616 as other practices that minim ize energy use.
617
618 K. Local Bidders
619
620 It is the intent of the City Council to encourage uniform bidd ing to obtain full and open
621 market competition. However, the City Council also recognizes that promoting the
622 economic viability of the City's local businesses is critical to economic health of the city in
623 that local businesses provide tax revenue to the city and jobs for local inhabitants. In an
624 effort to support competitive bidding and the City's local vendors, staff is encouraged to
625 obtain bids from local qualified vendors whenever possible.
626
627 L. New Vendor Procedure
628
629 The Finance Department requires every new vendor to complete a Business License
630 Application and W9 form . The Vendor Approval Application (see Appendix B) gives
631 the vendor the opportunity to give the City correct information such as address,
632 phone and fax numbers, Taxpayer Identification number, sales representative or
633 contact name and references . It also allows the vendor to indicate the specific
634 commodities on which they wish to bid. Should a department anticipate using a new
635 resource , the vendor should complete the Vendor Approval Application and the W9
636 form and forward to the Finance Department. The Vendor Approval Application Form
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637 and the W9 Form are available from the Finance Department, or they can be
638 downloaded from the City of San Juan Capistrano's web site. Upon receiving the
639 completed forms, the Finance Department will set up the new vendor in the financial
640 system.
641
642 SECTION II -MINOR PURCHASES
643 Minor purchases do not require competitive bids . The value of a minor purchase is
~44 $:!,Q0010,000 or less. This value represents a one-time, per fiscal year purchase, or
645 the total value of multiple purchases of the same item or group of similar items
646 throughout the fiscal year. Minor Purchase Example : One Air Compressor@ $2,200 .
647 A minor purchase may be a single item or a group of like items that relate to one
648 another, e.g. sprinkler bodies and sprinkler heads, waterlines , backflow devices,
649 fencing, etc., or as otherwise determined by the Department Head . Agreements to
650 purchase, on an annual basis, (annual purchase order or other form of agreement) of
651 an item or group of items that relate to one another, fall into two categories:
652 • An annual fiscal year total value for the product or non-professional service of
~53 $:!,Q0010.000 or less will be considered a minor purchase.
654 • An annual fiscal year total value for the product or service exceeding
~55 $3-:Q0010.000 will require competitive quotes for award per this policy and are
656 not considered minor purchases.
657 A. Petty Cash
658 An employee may get reimbursed for authorized expenses up to a maximum of $50.00.
659 Eligible expenses are such items as emergency supplies and tools not readily available,
660 or an approved meeting attendance. Amounts of reimbursement will be charged to the
661 appropriate departmental account. Departments shall make deliberate effort to use City
662 issued credit cards where possible in order to minimize petty cash disbursements.
663
664 Procedure for Petty Cash Reimbursement
665
666 1. Upon purchase of an item, a receipt should be retained by the employee .
667
668 2. A Petty Cash Request form (form available from the Finance Department) should be
669 filled out by the employee specifying :
670
671 • Name of employee
672 • Date of purchase
673 • Amount of reimbursement for the item purchased
674 • Account number to which the amount should be charged
675 • Purpose of the reimbursement
676 • Approval by the Department Head or their designee
677
678 Petty Cash Request forms may be obtained from the Finance Department.
679
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680 3 . Each department should designate in writing, in advance, one or more persons who
681 have authority to approve Petty Cash Requests . The Department Head or their
682 designee must sign approval of the Petty Cash Request form prior to submittal for
683 reimbursement.
684
685 4. The completed Petty Cash Request form and the receipt should be submitted to the
686 Cashier for prompt reimbursement.
687
688 5. Requests for reimbursement must be submitted within five (5) working days from the
689 date of purchase.
690
691 6. Mileage requests should be submitted monthly.
692
693 B. Credit or Procurement Cards
694 City issued credit or procurement cards are provided as a method of purchasing goods
695 similar to the process for a check request or petty cash reimbursement and are used to
~96 procure budgeted low value items~~ay-l:>e-useG-fef..Ri~l:lewal~e
~97 purcl:lases on an emergency or special circumstance basis only . The purchase order
698 (PO) is the primary and preferable procurement method and serves as the main source
~99 of encumbering and procuring services, goods and materials for purchases in excess
00 of $3 ,000and is recomme nded for all purchases . Gfedit card !*frcRasos in excess of
01 $3,GOO-wi~Re-s1:1bm i Ual o f...t-Ao E morgen~hase-Aut-Aef i~ation FeFRHe-t-Ao
02 Finance GopartA'lent (see /\ppond ix B ) iRH'flOdiatoly after tho purchase ta describe tho
03 natblFE> et the ornorgency or special olrc1:Jrnstance purchase . Credit card purchases may
704 include , but are not lim ited to, meals, meeting attendance, travel arrangements, etc. The
705 cardholder and cardholder's manager are responsible for proper use of the credit or
706 procurement card. The cardholder's manager is to designate original and subsequent
707 spending limits and types of authorized purchases . It is in the City's best interest to
70 8 pay the crediUprocurement card billing in a timely manner and avoid any interest
709 expense . When cardholders render a timely accounting of their purchases along with
710 the receipts, the matching of the itemized billing to the cardholder's records results in
711 a time-saving process . This can minimize the amount of time spent administering the
712 account.
713 1. Use of Credit and Procurement Cards
714
715 A Division Manager or Department Head shall determine which City staff members
716 shall be assigned credit or procurement cards. The credit and procurement cards may
717 only be used for budgeted City-related business expenses. Original and subsequent
71 8 single and monthly transaction limits are to be authorized by the cardholder's manager
719 and in no case shall exceed $5,000 unless authorized by the City Manager. Once
720 such cards are assigned, staff shall abide by the policy set forth herein. The Finance
721 Department policies and procedures shall be adhered to according to this policy.
t722 These cards may only be used by the employees they are issued to.
723
724 2. Purchases of Services
725
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727
728
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769
Services are typically not to be paid for with a credit or procurement card. On-site
services are not authorized to be ordered and paid for utilizing a credit card. Any
variance from this rule must be in writing from the Chief Financial Officer. Offsite
minor service purchases, such as printing, blade sharpening , picture framing, etc .
are permitted as long as the vendor is legally established as an incorporated
business entity. Non-Incorporated service vendors will require the use of a Purchase
Order and it shall be the responsibility of the Finance Department to identify non-
incorporated business entities.
3. Procedure for Payment of Credit or Procurement Cards
a. Upon purchase of goods or services, a receipt will be retained by the employee
detailing the goods and services purchased.
b. +Re-Whe re not otherwise evident. the employee shall indicate on the receipt tt:ie
f*lff)Ose of t~how the expenditure perta ins to bonafide City business
ai:id i n the sase of meals , also incl1:1de a Elescriptie~&-Wsinoss funsij9A-Qoo
the attendees .
c. Each employee will receive a monthly credit card statement from the issuing bank
and must approve the charges as well as attach the appropriate receipts and return
it to the Finance Department within five working days. Goods or services ordered
by phone may not have receipts but should provide a brief written explanation of
the expenditure.
d. Failure to provide receipts or other misuse of City credit cards can result in
disciplinary actions as appropriate.
C. Check Requests
Check requests are generallymay be issued for purchases of $~10,000 or less, or
where a PO would not be expedient. Check requests in excess of ~10 .000 are
subject to approval by the City Manager. The Finance Department may issue "off-cycle"
checks under circumstances where time is of the essence or for emergency purchases.
As a general rule, departments are to plan their activities to preclude the necessity to
request an "off-cycle" check.
SECTION 111-GOODS, SUPPLIES, EQUIPMENT, AND MATERIALS
"Goods, supplies, equipment and materials" means fixed, movable, disposable, and/or
reusable products, commodities, or items used by the City, including, but not limited to,
office supplies, program supplies, subscriptions, vehicles, fuel and vehicle supplies, tools,
computers, computer hardware and software, landscape and irrigation supplies, power
tools, janitorial supplies, office furniture, and fixtures, which shall be furnished to or used
by any department. 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. For example, a purchase of equipment for $1,000 with a $300 installation fee
18
86 44 26 I
ATTACHMENT 12
770 would be covered under this section of the policy. A repair of equipment for $1,000 in
771 labor and $300 in parts would be covered under Section IV -Service Contracts.
772
773 Generally, authority is established by the dollar amount of the purchase . There are three
774 levels of authority for normal purchases: DepartmenUDivision/Project Manager Award,
tns City Manager Award, and City Council Award. s+§-~ity is based on the
tn6 WFA\:llati¥e-tetal-4-alkAaF1§6-0FdeFs-ph,.1s-U:ie-erigi nal-ceAtfacl-amooo . T he following
777 matrix provides purchasing procedures when purchasing goods, supplies, equipment and
77 8 materials. The department must state in the Bid Recap Form how the quotes obtained for
79 the supplies, equipment, and material substantially conform to the required specifications.
80
81 For Lh e thresho lds below . the term "contract" Is not limited to formal contracts and Includes
82 all procurement with a vendor for a given scope of work as defined by the procure ment
83 action . Work shall not be spilt in to separate procurement actions wi th the sole intent of
84 circumventing the thresholds below. However. simil ar work with the same vendor for
85 different projects may be considered separate procurement acts for the purposes of
86 applying the thre sholds be low .
87
88 For amendments to existing agreements. the thresholds below take into account the
89 cumulative total of all of the fo llowing : the orig inal amount of the agreement. all agreement
90 amendments/change orders to date , plus the ant icipated agreemenUchange order.
79 1
$3;-00010.000 or less • No bidding or quotes required .
• Ne-Purchase Order is recommended . but not
required.
• Use petty cash up to $50 , and chock request or credit
card tip to $3,000 .
• Department Head or designee signs invoice and
submits to the Finance Department.
P1;1mnases o¥or ~ro'les original p1;1rohaso and
$3,000 1;1p to c~rs up to a wrn1;1lati'10 ameuntof $10 ,000 .
$10,000 ~low informaktuote procoduros (Seo SoclioR-¥-lh
Paragraph E).
• QapaFtl'Flon~ sole~
-GepaR-ment submi!e reeiuisilion with Department
Ffeaa-signatu re anEi-biEi-Fecaf)-l~ACe
Department.
• Finance OopartFnont-f)Fints and mails-P-Hrchaso OmeF
to-'10Ad0f:
Purchases over • City Manager approves original purchase and change
$10,000 up to orders up to a cumulative amount of $25,000.
$25,000 • Follow informal quote procedures (See Section VII.
Paragraph E).
• Department selects vendor .
• Department submits requisition with Department
19
864426, I
[ Formatted Table
ATTACHMENT 12
Head signature and bid recap to Finance
Department.
• Finance Department prints and mails Purchase Order
to vendor.
Purchases over • City Manager approves original purchase and change
$25,000 up to orders up to a cumulative amount of $45,000.
$45,000 • Follow Formal Request for Proposal bidding
procedures (See Section VII. Paragraph F).
• Department selects vendor .
• Department submits requisition with Department
Head signature and bid recap to Finance
Department.
• Finance Department prints and mails Purchase Order
to vendor.
Purchases over • City Council approves original purchase and change
$45,000 orders that would result in cumulative value of
Purchase Order (change orders plus original
contract) to exceed $45,000 .
• Follow Request for Proposal bidding procedures (See
Section VII. Paragraph F).
• Department prepares formal bid specifications .
• Department prepares Agenda Report requesting City
Council action.
• City Council awards bid/contract.
• Department prepares two contract documents and
obtains vendor signatures.
• Department prepares Contract Transmittal Form with
attachments, purchase requisition and submits to the
City Clerk.
• City Clerk signs Contract Transmittal Form and
forwards it along with requisition to Finance
Department.
• Finance Department prints and mails Purchase Order
to vendor.
792
793 SECTION IV -SERVICE CONTRACTS (PROFESSIONAL AND MAINTENANCE)
794
795 Professional services include those services provided by any specially trained, educated ,
796 experienced or licensed person, company, corporation, or firm, and which involve the
797 exercise of discretion and independent judgment together with an advanced or
798 specialized knowledge, expertise, training, or unique skills gained by formal studies or
799 experience. Contracts negotiated for professional services must be based on
800 demonstrated competence , professional qualifications for the services required,
801 availability, and fair and reasonable cost. Consultant services include services that are
20
8644 26 I
ATTACHMENT 12
802 of an advisory nature, which involve the consultant providing a recommended course of
803 action based on Professional expertise, and results in an end product in the form of a
804 written transmittal of information.
805
806 Maintenance services include the furnishing of labor, time, or effort by a contractor
807 including , but not limited to (a} routine, recurring, and usual work for the preservation or
808 protection of a publicly-owned , or publicly-operated facility for intended purposes ; {b}
809 minor repainting ; {c) resurfacing of streets and highways; {d) landscape maintenance,
810 including mowing, watering, trimming, pruning, planting, replacement of plants , and
811 servicing of irrigation and sprinkler systems; and ( e) work performed to keep, operate and
812 maintain publicly-owned water or waste disposal systems.
813
814 For the purposes of this policy , professional and maintenance services contracts will
815 include , but not be limited to, a wide variety of expertise and specialized crafts. Examples
816 include :
817
818 Accounting
819 Affordable Housing
820 Alarm Systems
821 Auditing
822 Archaeology
823 Architecture*
824 Building/Engineering Plan Check/Inspection
825 Cable TV
826 Community Planning and Development
827 Computer Management
828 Cultural Resource Management (Archaeology, History)
829 Construction Management*
830 Document Processing Services
831 Engineering including Civil , Mechanical , Electrical, Structural, and Seismic*
832 Environmental {CEQA/NEPA services)*
833 Finance
834 Fleet Maintenance
835 Entertainment
836 Equipment Rental
837 Geotechnical
838 Ground Water Recovery
839 Human Resources
840 Information Technology
841 Inspection Services
842 Janitorial
843 Landscape Architecture/Arboriculture*
844 Legal Consultants
845 Mapping, Maintenance and Refurbishing of Public Facilities and Lands
846 Material testing and laboratory work
847 Payroll
848 Pest Control
849 Sound {Noise) Attenuation
21
864426 I
ATIACHMENT 12
850 Security
851 Surveying*
852 Technical Assistance
853 Traffic and Related Equipment and Service
854 Uniforms
855 Any other professional service as deemed appropriate by the City Manager.
856
857
858
859
860
861
862
863
864
865
~66
867
868
~69
~70
871
872
73
74
75
76
77
78
79
80
81
82
83
84
885
886
I
I
* Subject to heightened approval requirement under Government Code Section
4526 . The City cannot award contracts for these specialized services unless the
award is based on the "demonstrated competence and qualification for these
type of services at fair and reasonable prices."
When contracting for professional services, the formal Request for Proposals or Request
for Qualifications (RFP/RFQ) procedures (see Section VI., Paragraph F) as specified in
Section VI., Paragraph F of this Policy shall be utilized where applicable and to the
maximum extent possible, as time and circumstance allow. The RFP/RFQ procedure is
required for all Professional and Maintenance service contracts over $25,000 (See
Exceptions to Competitive Bidding Requirements in Section..Y..!! VI., Paragrapl:i-A ). For all
service contracts, the standard "Professional Services Agreement" shall be used and a
separate Scope of Work attached to each Agreement. The following matrix provides
purchasing procedures when contracting for Professional and Maintenance services.
Standard Professional and Maintenance Service Contracts (includes contracts for
Fee Recovery Vendors 1)
For the thresholds below. the term 'contract' is not limited to formal contracts and includes
all procurement with a vendor for a given scope of work as defined by the procurement
action . Work shall not be split In to separa te procurement act ions with the sole intent of
circumventing the thresholds be low. However. similar work w!th the same vendor for
different projects may be cons ide red separate procurement acts for the pu rposes of
applying the thresholds be low.
For amendments to ex isting agreements , the thresholds below take into account the
cumulative total of all of the following : the original amount of the agreement. all agreement
amendments/change orders to date, plus the anticipated agreemenVchange order.
$3;00(}10 .000 or less • No bidding or quotes required .
• No-Purchase Order is recommended. but not
required.
-Yf;e pettysasl'l~u~
ear-cl up to $3 ,000 .
• Department Head or designee signs invoice and
submits to the Finance Department.
1 See Section VI for definition of Fee Re co very Vendors.
22
864426.1
[ Formatted: Space Before: O pt
ATTACHMENT 12
Contrasts up to • Dopartrnont ~oad appmves contracts anel cAaA§e
$10,000 9"El~mulatWe-wffue of $10 ,000 (GAango
&FEieFS-f:)lus-eFigiAal-cootfastr,
~ow inforFAal solisitation of qualiflcatieA&-eF
inforFAa l quotes prooeeuros (See Section VI+.,
Pai:aw=apl=l-G-anEl-SemieA V II., Paragrat'IR-€+.-
• Qof'lartFAeAt se lects YeROOf:.,.
• QopartFAont prepares two GORtract deol:lmoRts anel
oalains \<6ASOF si9naWfOS.
• Department-suemits-te-Gtty Clerk CoAtfact
+FaAs m itta~m-with-attachmeA-t~FGRa6e
~ilien-si§Aed-Oy-Gepartrnonl 1-!eael .
• Ci~ Clerk signs Cont ract Transmittal Fol'ffi and
foi:wafEls it a long witA roquisttiorr-t&Finanse
DopartFAent.
·naFl6&-(;}ei:ta1:t-meAt-f}A R~~f6Rase-GJ:Eler
to ¥enelor .
Contracts over • City Manager approves contracts and change orders
$10,000 up to up to a cumulative value of $25,000 (change orders
$25,000 plus original contract).
• Follow informal solicitation of qualifications or
informal quotes procedures (See Section VII.,
Paragraph C and Section VII., Paragraph E).
• Department selects vendor .
• Department prepares two contract documents and
obtains vendor signatures .
• Department submits to City Clerk Contract
Transmittal Form with attachments and purchase
requisition signed by Department Head.
• City Clerk signs Contract Transmittal Form and
forwards it along with requisition to Finance
Department.
• Finance Department prints and mails Purchase Order
to vendor.
Contracts over • City Manager approves contracts and change orders
$25,000 up to up to a cumulative value of $45,000 (change orders
$45 ,000 plus original contract).
• Follow formal RFP/RFQ bidding procedures (See
Section VII. Paragraph D).
• Department selects vendor .
• Department prepares two contract documents and
obtains vendor signatures .
• Department submits to City Clerk Contract
Transmittal Form with attachments and purchase
requisition signed by Department Head.
23
864426 I
ATTACHMENT 12
• City Clerk signs Contract Transmittal Form and
forwards it along with requisition to Finance
Department.
• Finance Department prints and mails Purchase Order
to vendor.
Contracts over • City Council approves contracts and change orders
$45,000 that would result in cumulative value (change orders
plus original contract) exceeding $45,000.
• Follow formal RFP/RFQ bidding procedures (See
Section VII. Paragraph D).
• Department prepares Agenda Report requesting City
Council action.
• City Council awards bid/contract.
• Department prepares two contract documents and
obtains vendor signatures.
• Department prepares Contract Transmittal Form and
submits to the City Clerk.
• Department submits to City Clerk Contract
Transmittal Form with attachments and purchase
requisition signed by Department Head.
• City Clerk signs Contract Transmittal Form and
forwards it with requisition to Finance Department.
• Finance Department prints and mails Purchase Order
to vendor.
887 * For Profe ssional Services associated with Public Works projects , including . but not
888 li mited to , constru ction management. desi gn. or stu dy projects . where a Professional
889 Services Agreement is executed, an Amendment to the Professional Services Agreement
890 is required if the projected final cost exceeds the original contract amount. Limited to
891 Professional Services for Public Works projects, the City Manager shall be authorized to
892 negotiate and execute, without City Council action, one or more Change Orders to the
893 Professional Services Agreement, provided that the amount is within the contract
894 contingency and project budget, and the Change Order does not exceed 10% of the
895 original contract amount or $50,000, whichever is less.
896
897 SECTION V -PUBLIC WORKS PROJECTS
898 Public Works projects include construction, reconstruction, erection, alteration,
899 renovation, improvement, demolition, and repair work involving any facility owned, leased,
900 or operated by the City as defined in California Public Contract Code section 22002, or
901 as subsequently amended. The definition also includes painting/ repainting, plumbing,
902 electrical wiring, and/or other trade work for any facility owned, leased or operated by the
903 City. Construction, erection, improvement, or repair of dams, reservoirs, and electrical
904 transmission lines of 230,000 volts and higher that are owned by the City, are also
905 considered a public project.
24
864426.1
ATTACHMENT 12
906 A public project does not include maintenance work , consisting of routine, recurring , and
907 usual work for the preservation or protection of facilities owned or operated by the City,
908 including minor repainting. Street and highways resurfacing at less than one inch (1")
909 deep, landscape maintenance (mowing, watering, trimming, pruning, planting,
910 replacement of plants, and servicing of irrigation and sprinkler systems) are not a public
91 1 project and contracts for services related to this maintenance work is covered under
912 Section IV-Service Contracts .
913 It is the City of San Juan Capistrano's policy to follow the Uniform Construction Cost
914 Accounting Procedures (UCCAP) for all Public Projects, as set forth in the Public Contract
915 Code Article 2, commencing with Section 22010 (see Appendix A). Also, see City
916 Resolution 06-09-19-04 as approved on September 19, 2006 in Appendix A. It is also the
917 City of San Juan Capistrano's policy to adopt the purchasing limits and policies as set
918 forth in Public Contract Code Sections 22030 to 22045, as amended (See Appendix A).
919 In the event there is an inconsistency between the policies stated herein and Public
920 Contract Code Sections 22010, et seq., the provisions of the Public Contract Code
921 Sections 22010, et seq., shall prevail.
922 If an informal bid result for the lowest and most qualified bidder results in a bid over
~23 $175,000200.000 , afHHIP to $187 ,50(}, the project may proceed with the informal bid
924 process , and the City Council must approve such an award by four-fifths vote consistent
925 with Public Contract Code Section 22034. If an informal bid result for the lowest and most
~26 qualified bidder is over $~00212.500 , the project must be formally re-bid for City
927 Council approval. The following matrix provides purchasing procedures when contracting
928 for Public Construction projects.
929
25
864426 I
ATTACHMENT 12
Contracts up to
$45,000
864426.1
• City Manager approves contracts and change orders
that would result in cumulative value (change orders
plus original contract) not to exceed $45,000 . The
Department Head is authorized to issue change
orders for changes or additions to the original scope
of work that result in up to 10% aggregate change in
the contract price, provided the amount is within the
contract contingency and project budget.
-Fellow-tho infofffla' _· . <>,.. n ~: ~ _.ieA
VII. Paragraph G) or pofi<lffflod consisten t with
~s t Gode sesiien 22032 .
• City Manager awards and signs contract.
• Department prepares two contract documents and
obtains vendor signatures.
• Department submits to City Clerk Contract
Transmittal Form with attachments and purchase
requisition signed by Department Head.
• City Clerk signs Contract Transmittal Form and
forwards it along with requisition to Finance
Department.
• Finance Department prints and mails Purchase
Order to vendor.
26
ATTACHMENT 12
Contracts over • C ity: Cou nc il ag1;1 roves co ntrac ts and cha nge orders
~45,000 and ug to that wou ld resul t i n c umulative value (change orders
$60,000 gl us origi nal co ntract} not to exceed ~60 ,000 . The
City: Manager is a uthor ized to issue change orders
fo r c h an ges or add itio ns to the origina l sco12e of wo rk
that re sult In UE! to 10% aggregate c hange in th e
co ntrac t Qrice , grovided the amou nt is w ithi n th e
contract co nti nge ncy a nd E!roje ct budget.
• City Council adogts 12la ns , sgecifications , and
worki ng details.
• D.egartmen t gre12ares Agenda Re gort requ estin g City
Council action.
• Dega r tmen t 12regares two con tract documents and
obtains ve ndo r s ignatures .
• C ity Co unc il awards bid/co ntract.
• De12artm en t su bm its to Clty Cler k Con tract
Trans mi ttal Form with attach ments and Qurc h ase
reguisilion s ig ned b y DeQart men t Head .
• C ity C lerk s ign s Co ntract Tra nsmi ttal Form an d
forwards it alon g w ith reg ui s ition to Finance
Degartment.
• Fi nance Degartment grints and mail s Purc hase
Order to vendor.
Contracts over • City Council approves contracts and change orders
$4a;Q00 60.0 00 and that would result in cumulative value (change orders
up to plus original contract) not to exceed
~Q200 .000 2 $-1+&,.00Q200,000 . The City Manager is authorized to
issue change orders for changes or additions to the
original scope of work that result in up to 10%
aggregate change in the contract price provided the
amount is within the contract contingency and project
budget.
• Follow informal bidding procedures (See Section VII.
Paragraph G ).
• City Council adopts plans, specifications, and
working details.
• Department prepares Agenda Report requesting City
Council action.
• DeQartment 12 re1;1ares two co ntract docume nts a nd
obta ins ve ndo r si gnatures.
• Citv Council awards bid/contract.
'This limit is tied to Public Contract Code Section 22032 Any changes to limits set forth in the UPCCA are hereby adopted as part of
this policy.
27
864426 l
ATTACHMENT 12
• Oei:>af'tm en~Fe s ~wo co ntract <:lac umeAl&an<:l
ebtains vendef'-.Signaturos .
• Department submits to City Clerk Contract
Transmittal Form with attachments and purchase
requisition signed by Department Head.
• City Clerk signs Contract Transmittal Form and
forwards it along with requisition to Finance
Department.
• Finance Department prints and mails Purchase
Order to vendor.
Contracts over • City Council approves contracts exceeding
$m;-000200.000 $175 ,00020 0.00 0. The City Manager is authorized to
issue change orders for changes or additions to the
original scope of work that result in up to 10%
aggregate change in contract price provided the
amount is within the contract contingency and project
budget.
• Follow formal bidd ing procedures (See Section VI.
Paragraph H).
• City Council adopts plans, specifications, and
working details.
• Department prepares Agenda Report requesting City
Council action.
• De12art ment 12re12a res tw o co ntract do cu ments an d
ob tains vendor signatu res.
• City Council awards bid/contract.
----G~fef}ares-t:w o canti=as t dosumonl:&'1n9
abtaiAs-vef\OOF-SigAatufe&
• Department submits to City Clerk Contract
Transmittal Form with attachments and purchase
requisition signed by Department Head .
• City Clerk signs Contract Transmittal Form and
forwards it along with requisition to Finance
Department.
• Finance Department prints and ma ils Purchase
Order to vendor.
930
93 l Additionally , for all Public Works contracts (for a "public works" as defined in Labor Codes
93 2 1720 and 1720 .3), the following legal requirements shall be incorporated into all
933 procurements:
93 4 • For contracts over one thousand dollars ($1,000), the contract shall require that
935 prevailing wage be paid (not applicable to janitorial services).
93 6 • For contracts over $25,000, the contractor that is awarded a public works contract
937 shall , before commencement of work , file a payment bond with and approved by
28
864426 I
ATTACHMENT 12
938 the Finance Department that is no less than 100 percent of the total amount due
939 under the contract, and all bids for such contracts shall state that such payment
940 bond is required.
941
942 Prequalification of Contractors Seeking To Bid on Public Works Projects
943 In accordance with the provisions of California Public Contract Code section 20101, the
944 City may establish a program to pre-qualify contractors and subcontractors to bid on the
945 City's Public Works projects .
946
947 SECTION VI -CHANGE ORDERS FOR PUBLIC WORKS PROJECTS
948
949 These guidelines shall govern the process and administration of Public Works project
950 contracts including change orders , time extensions, and budgetary amendments relating
951 to Capital Improvement Projects . Implementation of these guidelines will allow the City
952 to implement Public Works projects and Capital Improvement projects in a timely fashion .
953
954 For Change Orders for Public Works Contracts, all of the following shall apply:
955
956 1. The total of all Change Orders approved without prior City Council Authorization
957 shall not exceed the project contingency as established by the City Council at the
958 time of the award of bid (typically 10% above the approved bid amount).
959
960 2. The City Manager may, at her/his discretion, bring any Change Order before the
96 l City Council.
962
963 3. During the construction period, pursuant to a contract awarded by the City Council ,
964 the City Manager is authorized to negotiate and execute without City Council
965 action, one or more Change Orders provided that they do not exceed 10% of the
966 original contract provided the amount is within the contract contingency and project
967 budget. In no case shall this change order authority exceed $100,000.
968
969 4. The Project Manager is responsible to process required paperwork to modify the
970 Contract to reflect the approved change order(s) and Contract Amendments.
971
972 5. Any deviations from the policy must be reviewed and approved by the City Council.
973
974 TIME EXTENSIONS
975
976 1. The City Manager may approve any time extension required that is caused by
977 weather delays and/or material availability delays.
978
979
980
29
864426.1
ATTACHMENT 12
981 SECTION VII -BIDDING PROCEDURES
982
983 A. Introduction to Bidding Procedures
984 Overview
985 This policy requires that certain bidding procedures be followed when purchasing goods,
986 supplies, equipment and materials; contracting for professional and maintenance
987 services; and contracting for non-public works and Public Works projects. The competitive
988 bidding process ensures that the City will obtain the best combination of pricing, quality,
989 service, and availability of products and services. Splitting a purchase to circumvent the
990 bidding limits is specifically prohibited by the City's Municipal Code and by State law.
991
992 The total dollar value of the goods, services, or projects determines whether formal or
993 informal bidding procedures must be followed , as shown below. In certain instances,
994 bidding procedures may not be required .
995
996 Goods, Supplies, Equipment and Materials and Non-Public Works Projects
997 Contracts
~9 8 • No Bidding Required: Less than $~10.000
~99 • Informal Quote: $6,G0010 ,000 -$25,000
1000 • Formal Bidding (RFP): Over $25,000
1001
1002 Professional and Maintenance Services Contracts
1po3 • No Bidding Required: Less than $~10.000
I 004 • Informal Quote: Contracts up to $25,000
1005 • Formal RFP/RFQ Bidding : Contracts over $25 ,000
1006
1007 Public Projects
1~08 • No Bidding Required: Contracts up to $~0060 .000
1 09 • Informal Bidding: Contracts $4&;Q0060,000 to $.:i.+&;000200 .000
I 10 • Formal Bidding: Contracts over $+1&,Q00200 ,000
1011
1012 The Contract Transmittal Form (See Appendix B) requires the identification of the project,
1013 funding sources, contract type , insurance and bond requirements, and sets forth the
IO 14 type( s) of publications required, including whether the City Clerk needs to publish a Notice
1015 Inviting Formal Bids. In some instances, the City Manager may require City Council
IO 16 approval prior to advertising .
1017
101 8 Documenting the Bid Process
Io 19 Bidding procedures must always be documented. The originating department is
1020 responsible for completing a Bid Recap form for all purchases and contracts of
1p21 $~00G10,000 or more. The Bid Recap form identifies the vendors who have been
I 022 contacted, the name of the successful bidder, the amount of the contract, and the
1023 reason(s) for the successful bidder's selection.
1024
30
864426 .1
ATTACHMENT 12
lp25 B. Qualified Bidder§. List
1026 In some instances it is in the best interest of the City to have current ongoing contracts
1027 with multiple consultants for the same or very similar services (i.e. services that can be
I 028 defined as to scope of work but not as to requ ired events such as contract planning
1029 services , soils testing, contract building maintenance services, etc.). These services
I 030 would best be handled by establishing a qualified bidders list and by entering into an
lp3 t ongoing professional services contract when the service is requ ired.
1032
t 033 There are generally three categories of contractors that are placed on the Qualified
1034 Bidders List. The first is maintenance contractors that prov ide services with recurring
1035 and usual work for the preservation or protection of any publicly owned or publicly
1036 operated facility for its intended purposes. The second is professional service
1037 contractors that are educated or licensed specialists who provide services of an advisory
1038 nature and provide recommendations for a course of action , an end product, or the
I 039 transmittal of information . The third is qualified construction contractors who are
1040 called upon through an informal bidding process to perform Public Works projects
104 I pursuant to subdivision (b) of Section 22032 of the Public Contract Code (See Section VI.
1042 Paragraph E below for procedural guidance on the informal bidding process).
1043
1044 There shall be one Qualified Bidders List (vendor, consultant and/or contractor) for
I 045 ongoing service requirements related to professional services, maintenance services ,
1046 and Public Works projects, categorized by the type of product sold or work performed for
1047 use in soliciting bids. A "qualified" bidder is a bidder that demonstrates the following
1048 characteristics:
1049 • Can provide product quality, fitness, and capacity for the required usage.
I 050 • Has the ability, capacity and skill to perform the contract or provide the service
1051 required .
1052 • Has demonstrated character, integrity , reputation, judgment, experience , and
t 053 efficiency, particularly with reference to past purchases by the City or other
I 054 public agencies.
• Has the ability to perform within the time required.
• Has shown quality of performance and/or of products provided in previous
contracts or services with the City or other public agencies.
• Can meet all insurance requirements.
The process for selecting qualified bidders to be placed on the Qualified Bidders List
shall begin with an Informal Solicitation of Qualifications"-(SQQ). Criteria required
for the development of an SGQ-l nformal Solicitation of Qualifications can be found
in Section VI!, Paragraph C below. i:t:ie-For each of the th ree categories of service
associated with the Qualified Bidders List, the City shall endeavor to obtain a
minimllr:n of three Statements of Qualifications (SOQ 's ) from a m inimum of three
vendors. fer the seF¥ices required and q1;1alifieG-After evaluation of the SOQ's
rece ived . qualified bidders shall be added to the Qualified Bidders List based on
aGGeF>ta91e-Et1;1alifiGatieRS the considerat ions identified below.
E::val ua tifl§-BiesEvaluation of SOQ's fo r Placement on Qualified Bidders List: The
Department/Division Head or designee(s) shall select the consultants which, in their
evaluation process, is the most qualified to perform the work. The evaluation and
31
864426 I
ATTACHMENT 12
l 073 selection process shall be based upon the following considerations:
1074
1075 1. General quality and responsiveness to the request, including but not limited to :
1076 • Responsiveness to the terms, conditions, and items of performance.
1077 • Grasp of the problem, work to be performed, and approach to be used.
1078 2. Organization and personnel making the proposal must provide:
l 079 • Evidence of good organizational and management practices.
1080 • Qualification of the personnel.
I 081 • Specialized experience of the firm and its personnel relative to the required
I 082 services.
1083 • References who can be contacted to verify past record of performance (i.e.,
1084 completion of a quality product in a timely manner and within budget constraints).
I 085 • Previous consultant experience.
I 086 • The financial condition of the firm .
1087 • Capacity of the firm to perform the subject project within a required timeframe .
1088
I 089 3. If appropriate, the price, in any of the following formats, may be considered.
1090 • Total price and price breakdown .
1091 • Price range.
1092 • Cost schedule.
1093
I 094 The Qualified Bidders List shall be approved by the City Council at least every three years.
I 095 All vendors on the Qualified Bidders List shall be reviewed and approved by the City
1~96 Manager on aA-at least an annual basis . Vendors can be added at any time as long as
l 97 the process prescribed herein for the Informa l Solicitation of Quallfications i s adhered to
I 98 and C ity Council approval is obtai ned for any such additions . Professional Services
1099 Agreements (PSA) for qualified bidders will not be executed until selected to perform a
11 oo service . At that time, and through the term of the contract, the terms of the PSA for the
11 O I selected vendor will be controlling for any subsequent projects undertaken by the same
1102 or different departments. However. a l the Deparlment Head's sole d iscretion . a separate
1103 PSA may be ente red Into for the vendor to reflect project-specific terms . PSA's associated
1104 w ith vendors on th e Qualified B idders List can be amended at any time and are subject
1105 to the signature authority limits indicated in this policy. -All contracts shall have a defined
1106 end date.
1107
I I 08 Fee resov~i:y-ve-RdGFs-oo-tAe-QualffieEl-BIGElef&..list are fQr deve l Gj:l~ro~ala-by
11 09 eleve lopors (examp les ; outs ielo El R, plan check re'li0'A'). /\ specific f-Oe rocovery sar¥ico
I I Io proY ider may be retained to 13erform &eAl-ise~SGts,fll'Gll~d that tho
1111 Gefflbined foes do no~~~jec t 13or fisca l ;<ear . TR e City Co~I
I 112 apf*9¥eS-~Gls-wl fe0-f0Gevery-veA , ash
11 13 ~eads may ap13rove seNiees fer up to $5Q.,OO~FGjeet-
l I\ 4
t 115 NBR-fee rec avery •.'eRdors en the list have no of:ff;otting re>1eRl:lo-f-Fem--Gevelepers . A
I I 16 spesifiG-OE>A-fee-soPJise-provider-may-90-Feta!Red l o perform sefViGes-en-&~01'-projecl&,-
1117 f.)rovided th~iMcl fees do not oxceoel $150,00Q.f>0f..Gepai:tmen t per fiscal year.
11 18
32
• 864426 .1
A TI ACHMENT 12
11119 C. Informal Solicitation of Qualiflcations-{SQQ}
1120 An SQQ-Informal So li citation of Qua li ficati ons refers to the process that establishes
1121 criteria for evaluating firms that request placement on the City's Qualified Bidders List.
1/122 Such firms must submit aA-a Sta tement of Q ualifi ca tions (SQQ} setting forth the
1123 qualifications of members of the firm and providing any other information required by the
1124 announcement of the project or desired service. The Department/Division shall strive to,
1125 whenever possible, solicit at least three qualifications/proposals in writing. When it is not
1126 practical, nor cost effective, to receive three qualifications/proposals in writing, the
1127 Department Head at his/her discretion, may choose the vendor best suited for the needs
1128 of the particular project or service category.
1129
1130 A public notice shall be advertised on the City's website and in applicable publications to
1131 obtain SOQ's from qualified service providers. It is important that the specifications are
1132 accurate and comprehensive . Informal quotations must be documented to the satisfaction
1133 of the City Manager or the Chief Financial Officer. Ideally, documentation should include :
1134
1135 • The name of the company.
1136 • The person giving the quote .
1137 • The date and time of the phone call.
1138 • Understanding of the required scope of services.
1139 • Specialized experience of the firm and its personnel relative to the required
1140 services.
1141 • References who can be contacted to verify past record of performance, i.e.,
1142 completion of a quality product, in a timely manner, and within budget constraints.
1143 • The capacity of the firm to perform the subject project within a required timeframe.
1144 • Estimated price.
1145
1146 As events occur and need arises, work will be assigned to the firms/individuals on the
1147 Qualified Bidders List at the sole discretion of the Department Head . su bje ct to the
1148 sig nat ure li mits in th is pol icv . A se parate so li ci tation of bids is not req uired for vendo rs
1149 sele cted fro m the preap proved Qua li fi ed Bi dders Li st. exce pt for qualifie d co nst ruction
1150 con trac tors who must be ca ll ed upon th rou gh a n infor mal bidding process to perform
1151 Public W orks pro jec ts purs uant to subd iv ision (b l o f Sect io n 22032 of th e Publ ic Con tract
1152 Code .
1153
1154 Negotiation: The Department Head or designee(s) shall discuss with the highest ranked
1155 firm(s) the requirements of the project, the scope of services needed to meet the
1156 requirements, and negotiate a reasonable fee for the established work assignment.
1157 D. Lowest Responsible (Responsive and Qualified) Bidder
1/15 8 ~F o r pro cu reme nt not invo lvi ng vendo rs selec ted from the QuaHfi ed Bi dders Li st. bi ds
1159 should be awarded to the responsive and qualified bidder who submits the lowest bid. A
1160 responsive bid is one that is in substantial conformance with the requirements of the
1161 invitation to bid, including specifications and the City's contractual terms and conditions.
1162 Conformance may also include providing proof of insurance, completed forms,
1163 references, and all other information as requested in the bid document. Bidders who
1164 substitute terms and conditions or who qualify their bids in such a manner as to nullify or
33
86 44 26 I
ATTACHMENT 12
1165 limit their liability shall be considered non-responsive bidders.
1166
1167 Cost is not necessarily the only determining factor when selecting the successful bidder.
1168 In addition to price, the following elements should also be considered in determining
. 1169 whether a bid is responsible:
1170
I 171 1. The successful bidder must demonstrate the ability to fulfill a contract, including
1172 providing subsequent and continuing service. Staff may request proof of a prospective
1173 bidder's reliability, proof of financial resources, a list of current or previous customers,
1174 and other pertinent data. Such requests may also be taken after receipt of bids.
1175
1176 2. A bidder may be determined to be non-responsible if the bidder fails to furnish proof
1177 of qualifications when required .
1178 3. The products offered provide the quality, fitness, and capacity for the required usage.
1179
1180 4. The bidder has the ability, capacity and skill to perform the contract satisfactorily and
1181 within the time required.
1182
1183 5. The bidder's experience regarding past purchases by the City or other public agencies
1184 demonstrates the reliability of the bidder to perform the contract.
1185
1186 When a department recommends awarding a bid to other than the low bidder, written
1187 justification must be provided on the Bid Recap form and the City Council agenda report
1188 if City Council approval is required .
1189
1190 E. Informal Quotes
119 l Informal quotes should be used to assure the most competitive price is received for an
1192 item, while avoiding the additional time and expense involved in formal bidding. The
1193 Department/Division shall make every attempt to receive at least three bids in writing or
1194 over the phone if not already obtained from the Qualified Bidders List. Bids must be
11195 documented in the Bid Recap Form to the satisfaction of the Chief Financia l OfficerCily
1196 Manager. The Department/Division should make every reasonable attempt to obtain at
1197 least three bids. In the event that three viable quotes are not received, the division shall
1~98 decu A'le nt pro vide to the City Manag er a wr jtten explanat ion as to what steps were taken
1199 to obtain quotes, any vendors contacted that Ele6ff~we re non respo nsive , and if
1 00 applicable why it is not practical to receive three quotes. At the City Manager's sole
l O l discretio n. such req ues ted procurement act ions may proceed .
1202 The Department/Division/Project lead shall evaluate the three informal quotes received
1203 and determine the lowest most responsible bid. The City reserves the right to accept that
1204 bid which is in the best interest of the City .
1205 When selecting the recommended bidder the Department/Division Head will take into
1206 consideration:
1207 • Price.
1208 • Ability, capacity, and skill.
1209 • Ability to meet time requirements.
34
864426 , I
A TI ACHMENT 12
121 o • Character, integrity, and reputation.
1211 • Previous vendor experience.
1212 • Financial resources available for contract performance.
1213
1214 F. Formal Request for Proposal or Request for Qualifications (RFP/RFQ)
1215
1216 The Request for Proposals (RFP) or Request for Qualifications (RFQ) bidding process is
1217 designed to ensure the City that it has engaged the most qualified consultant available
1218 for the engagement. This process generally takes more time and expense than informal
1219 solicitations of qualifications and in some instances may actually not be the most cost-
1220 effective approach. Unlike formally bid contracts, the City Clerk does not publicly open
1221 requests for proposals or requests for qualifications for professional services.
1222
1223 1. Because RFP/RFQ's ask for a subjective product, they should contain the greatest
1224 detail possible, and may include the following:
1225 a. A precise description of the problem or objective
1226 b. The services to be performed
1227 c. The product to be provided
1228 d. The anticipated time schedule for:
1229
1230 • Submittal of RFP/RFQ (date and time).
1231 • Any pre-proposal conference (date, time and location).
1232 • Review and evaluation of the proposals.
1233 • Award of the contract.
1234 • Commencement of work on the project.
1235 • Completion date.
1236
1237 e. Evaluation factors and the relative importance of each.
1238
1239 f. Expectations or limitations on the part of the City, including:
1240
1241 • The format, form and quantity of any expected reports.
1242 • The extenUnature of assistance/cooperation available from the City.
1243
1244 g. Expected content of the RFP/RFQ, including:
1245
1246 • The overall description of techniques to be used.
1247 • Listing of similar services provided to other clients.
1248 • Listing of available references to contact.
1249 • Description and qualifications of assigned lead and supporting personnel.
1250 • Time and staff expected to be expended.
1251 • Facilities and equipment to be used.
1252 • Portion of contract to be performed by sub-contractors .
1~53 • Subcontractors'._/Sub:-eonsultants~ qualifications.
1254 • Cost, in summary and total, and desired method of payment. The RFP/RFQ for
1255 services may, but is not required to, state the amount budgeted forthe service.
1256
1257 h. Contractual requirements including, but not limited to:
35
864426 .1
ATTACHMENT 12
1258 • Prohibition against assignment.
1259 • Indemnification.
1260 • Insurance requirements .
1261 • Bonding requirements .
1262 • Warranties .
1263 • Compliance with federal, state and City laws, rules and regulations .
1264 • Compliance with any grant related regulations .
1265 • Sample contract.
1266 • Requirement to pay prevailing wages, if applicable.
1267
1268
1269 i. Construction project management service RFP's/RFQ's may require evidence be
1270 provided of experience in construction project design review and evaluation,
1271 construction mobilization and supervision, bid evaluation , project scheduling , cost-
1272 benefit analysis , claims review and negotiation , and general management and
1273 administration of a construction project.
1274
1275 j. Additional requirements specific to the scope of work as determined by the
1276 responsible department and/or Finance Department.
1277
1278 2 . Issuing the RFP
1279
1280 To ensure maximum exposure and competition, the responsible department shall prepare
1281 a list of potential firms to receive the RFP/RFQ.
1282
1283 a. If required or desired , the responsible department will submit the RFP notice to be
1284 advertised on the City's website , onl ine through the City's bidding web service , or
1285 in a local newspaper of general circulation. The notice will be published one or
1286 more times beginning at least fourteen calendar days prior to the designated
1287 closing. Additional advertisements may be placed in a regional newspaper of
1288 general circulation; appropriate professional or trade journals; and state or
1289 governmental publications designed for public notice .
1290
1291 b. A reasonable length of time between solicitation and closing dates must be allowed
1292 to provide potential respondents time for preparation in accordance with the
1293 complexity, the size of the project , and the scope of advertising.
1294
1295 c . City staff may conduct conferences to explain the requirements of the project. A
1296 sufficient amount of time should be allowed after the RFP has been issued to allow
1297 potential respondents to become familiar with the project. Any clarification or
1298 changes required to the RFP/RFQ , as a result of the conference , shall be added
1299 as a written amendment. A summary of the conference shall be provided to all
1300 prospective respondents receiving the request.
1301
1302 d. The requesting department shall prepare sufficient copies of the RFP to allow
1303 distribution to potential respondents of record and responses to the published
1304 advertisements. In addition, the department shall maintain a list of RFP's issued
1305 and responses.
36
864426 I
ATTACHMENT 12
1306
1307 e. Amendments should be used to make any changes in quantities, descriptions,
1308 schedules, or to correct defects or ambiguities in the original RFP/RFQ.
1309 Amendments are prov ided to ensure that all potential respondents are furnished
131 O with the same information with which to prepare proposals .
1311
1312 f . Amendments to the RFP/RFQ shall be identified as such and shall require
1313 acknowledgment as such by firms receiving the RFP/RFQ. Amendments shall be
1314 sent to all known recipients of the RFP/RFQ within a reasonable time period before
1315 the closing date. If the time and date established for the receipt of proposals does
1316 not allow sufficient time for consideration and changes , the time and date will be
131 7 modified by amendment.
1318 3. Proposal Receipt and Opening :
1319
1320 a. Proposals shall be submitted to the originating department and shall be clearly
1321 identified with the Proposal number on the envelope . Faxed or other electron ic
1322 proposals are not acceptable .
1323
1324 b. All proposals shall be t ime stamped and those received by 5:00 p.m. of the
1325 designated closing day will be opened on the following workday for preliminary
1326 review.
1327
1328 c. Any proposal received after the time specified in the RFP/RFQ shall be returned
1329 unopened.
1330
1331 d. To avoid disclosure of the contents of competing RFP/RFQs , proposals will be
1332 opened in the presence the Department Head or his or her designee .
1333
1334 e. Respondents may modify or withdraw their proposals prior to the established
1335 closing date and time , without penalty. However, any modifications submitted after
1336 the established closing date and time will not be accepted . Such modifications will
1337 be returned to the respondent, unopened.
1338
1339 f . The Department shall maintain a list of proposals received, including name and
1340 address of respondent, the number of modifications received, if any, and any
1341 additional information requested. The register will be open to inspection after the
1342 award of the contract or the rejection of all proposals.
1343
1344 g. Proposals and modifications shall be shown only to the evaluation committee
1345 personnel , and the Department Head until a recommendation is made to City
1346 Council or all proposals have been rejected.
1347
1348 4 . Rejection of Proposals: The City reserves the right to reject any and all proposals, to
1349 accept or reject any one or more items of a proposal, or to waive any irregularities or
1350 informalities in the proposal or the RFP/RFQ process if to do so is deemed to best
1351 serve the interests of the City. The authority to reject any proposal shall be consistent
1352 with the levels of authority based on dollar thresholds described above.
1353
37
864426,I
ATIACHMENT 12
1354 5. Evaluation Factors and Method: Because unique services are requested , cost is not
1355 considered the primary selection criteria.
1356
1357 a. Evaluation factors may include:
1358
1359 • General quality and responsiveness of the proposal, including but not limited
1360 to:
13,61 • Responsiveness to the terms, conditions, and items of performance;
1362 • Completeness and thoroughness of the proposal;
1363 • Grasp of the problem, work to be performed, and approach to be used .
1364
1365 • Organization and personnel making the proposal:
1366 • Evidence of good organizational and management practices;
1367 • Qualification of the personnel;
1368 • Specialized experience of the firm and its personnel relative to the required
1369 services;
1370 • References who can be contacted to verify past record of performance , i.e.,
1371 completion of a quality product, in a timely manner, and within budget
1372 constraints ;
1373 • The financial condition of the firm;
1374 • Capacity of the firm to perform the subject project within a required time
1375 frame.
1376
13 77 • If appropriate, the price, in any of the following formats , may be considered .
1378 • Total price and price breakdown ;
1379 • Price range;
1380 • Cost schedule.
1381
1382 b. A Selection Committee shall be formed to evaluate the submitted data and
1383 determine the products that should receive further consideration . The Committee
1384 shall be appointed by the Department Head, subject to the approval of the City
1385 Manager or the Chief Financial Officer, and may consist of more than one
1386 department.
1387
1388 c. The Selection Committee may choose to interview all of the responding
1389 consultants, only the top few ranking consultants or to not perform interviews.
1390
1391 d. After the interviews (if applicable), the Selection Committee shall rank the
1392 consultants based on their proposals, interviews, and references .
1393 6 . Exceptions to Formal RFP/RFQ : The formal RFP/RFQ process may be bypassed in
1394 the following three instances:
1395
1396 a. In emergency situations where time is of the essence, the City Manager may
1397 dispense with the formal RFP/RFQ process to obtain services necessary in dealing
1398 with the emergency. Immediately following the emergency, the City Manager shall
1399 submit to Finance Department an Emergency Authorization Form.
1400
38
864426.1
ATIACHMENT 12
1401 b. When one known service provider is available, the Department Head shall prepare
1402 a report for City Manager or City Council approval, depending on the dollar
1403 threshold, requesting an exemption from the RFP/RFQ procedures and, if
1404 applicable , awarding the bid to the "sole source ."
1405
1406 c. When there are extenuating circumstances that would make the formal RFP/RFQ
1407 process not the most cost effective approach. This often relates to qualitative,
1408 artistic or proprietary software/technological issues. The appropriate Department
1409 Head shall prepare a report to the City Council requesting an exemption from the
1410 formal RFP/RFQ process .
1411
1412 7. Negotiation: The Department Head or designee(s) shall discuss with the highest
1413 ranked firm(s) the requirements of the project, the scope of services needed to meet
1414 the requirements, and negotiate a reasonable fee/contract for the established work
1415 assignment.
1416
1417 G. Informal Bid Process
1418
1419 The department shall prepare a Notice Inviting Informal Bids to describe the project in
1420 general terms, how to obtain more detailed information on the project, and the time and
1421 place for the submission of bids. The proposed contract and applicable bond and
1422 insurance requirements should always be included in this Notice Inviting Informal Bids.
1423 The department also completes the Contract Transmittal Form (See Appendix B) that
1424 identifies the project, funding sources, contract type, insurance and bond requirements,
1425 and the type(s) of publications required, including whether the City Clerk needs to publish
1426 a Notice Inviting Informal Bids . In some instances, the City Manager may require City
1427 Council approval prior to advertising .
1428
1429 The department mails the Notice Inviting Informal Bids to all construction contractors
1430 on the Qualified Bidders List (See Section Vl.C for more information on developing the
1431 Qualified Bidders List) for the category of work being bid and advertises in all designated
1432 construction trade journals not less than 10 calendar days before bids are due.
1433 Additionally, the Department Head is encouraged to post the Notice Inviting Informal Bids
1434 to the City's web site. The City Clerk will publicly open all bids at the time and place stated
1435 in the public notices.
1436
*37 For all Public Works projects up to $~+§,OOQ200 ,000 , the City shall comply with alt
1438 statutory requirements for informal bidding procedures as set forth in Public Contract
1439 Code sections 22030 , et seq.
1440
1441 After the successful bidder has been selected, the department prepares two original
1442 contracts and obtains the contractor's signature. After the contract is approved (signed)
1443 by the City Manager, the department then submits a completed Contract Transmittal
1444 Form, bid recap and the signed contracts to the City Clerk 's Office .
1445
1446 H. Formal Bid Process
1447
39
864426 .1
ATTACHMENT 12
1448 The City shall solicit formal bids in accordance with Public Contract Code Sections 22037-
1449 22044. {See Appendix A)
1450
1451 The initiating DepartmenUDivision shall be responsible for completion of the formal bid
1452 process; however, the process shall be coordinated with the City Clerk's Office and the
1453 Finance Department.
1454 1. Bid Forms: The initiating department shall prepare a bid form including detail
1455 specifications for the services to be purchased. The following format is suggested for
1456 competitive bids:
1457 a. Submission of bids {or proposals)-Include date, time , location and bid number
1458 as assigned by the City Clerk. Include a detail list of the information the bid or
1459 proposal should contain.
1460 b . Questions -List the name , address , and telephone number of the City person
146 l to be contacted concerning questions about the project.
1462 c. Background -Provide as much background as necessary to give the bidder an
1463 understanding of the environment in which the job will be performed and to
1464 which the job relates .
1465 d. Scope of work -Describe in detail the requirement for the job and detail
1466 specification.
1467 e. Desired project schedule -Be as specific as possible .
1468 f. Minimum and desirable qualifications -Be as specific as possible .
1469 g . Performance Bond-Whether a performance bond is required and if so, the
1470 amount and form of bidders security.
1471 h. Sample Contract-A sample of the contract that is expected to be used should
1472 be included in the bid package.
1473 2. Notice Inviting Bids: The initiating department shall also prepare a notice inviting
1474 bids that includes the following:
1475 a. A general description of the services to be purchased.
1476 b. A statement indicating where bid forms, specifications and bonding
1477 requirements can be obtained.
1478 c. A statement specifying the time and place for the opening of the bids.
1479 d. The notice shall be published at least fourteen calendar days before the date
1480 of the opening of bids in a newspaper of general circulation , printed and
1481 published in the City. {It is recommended that it be published twice , not less
1482 than five days apart).
1483 e. The notice shall also be mailed to all construction trade journals specified in
1484 Section 22036 of the Public Contract Code. The notices shall be mailed at least
1485 thirty (30) calendar days before the date of opening the bids. ·
1486
1487 3. Bid Opening
40
864426.1
ATTACHMENT 12
1488 a. Sealed bids shall be submitted to the City Clerk's office and shall be clearly
1489 identified with the Bid number on the envelope. Upon receipt, the City Clerk
1490 shall date and time stamp the envelope . Faxed or other electronic bids are not
1491 acceptable.
1492 b. Bids shall be opened in public at the time and place stated in the public notice.
1493 c. The City Clerk or his/her designee shall open the bids and shall record all bids
1494 received.
1495 d. Any bid received after the time specified in the notice shall be rejected.
1496 e. When a bidder's security is required, it will be announced in the public notice
1497 inviting bids. The amount shall be determined at the time of preparation of the
1498 bid. It shall be in the form of cash, certified or cashier's check, certificate of
1499 deposit in the City of San Juan Capistrano's name or bid bond made payable
1500 to the City of San Juan Capistrano. When a bidder's security is required, a bid
1501 shall not be considered unless one of the aforementioned forms of security
1502 accompanies the bid. Bidders shall be entitled to return of the bid security with
1503 the following exception :
1504 The successful bidder must execute the contract and file acceptable
1505 documents within thirty (30) calendar days from the date of award unless
1506 extended by the City Manager. Failure to execute the contract shall be just
1507 cause for annulment of the award and forfeiture of the bidder's security, not as
1508 a penalty, but as liquidated damages. The City Council may, upon refusal or
1509 failure of the successful bidder to execute the contract , award the contract to
151 O the next lowest responsive and responsible bidder.
1511 f . All bids received shall be available for inspection during regular business hours
1512 in the City Clerk's office for a period of not less than thirty (30) calendar days
151 3 after the bid opening.
1514
1515 g. All bids received shall be available for inspection during regular business hours
1516 in the City Clerk's office for a period of not less than thirty (30) calendar days
1517 afterthe bid opening.
151 8
1519 4. Rejection of Bids: The City reserves the right to reject any and all bids, to accept or
1520 reject any one or more items of a bid, or to waive any irregularities or informalities in the
1521 bids or the bidding process if to do so is deemed to best serve the interests of the City. If,
1522 after the first invitation of bids, all bids are rejected, the City may elect to re-advertise for
152 3 bids or have the project done by force account. (See Section 22038 of the Public Contract
1524 Code for Procedures and limitations).
1525 5. Determining Lowest Responsive and Responsible Bidder: Award of bid shall be
1526 to the lowest responsive and responsible bidder. All valid responsive and responsible bids
1527 shall be considered in determining the lowest bid. Before the award, the bidder may be
1528 required to furnish evidence of capability, equipment and financial resources to
1529 adequately perform the work. Bidders not found to be responsive or qualified may have
1530 their bid rejected.
41
864426 I
ATTACHMENT 12
1531 6. Tie Bids: If tie bids are received, quality and service being equal, the contract shall be
1532 awarded to a local bidder.
1533 If the above condition is not applicable, the City may, at its discretion :
1534 a . Reject any and all bids presented and re-advertise ; or
15 35 b. City may accept either one or accept the lowest bid made by negotiation with the
1536 tie bidders; or
1537 c. Award the bid to any one of the low tie bidders by publ ic drawing.
1538 7. Awarding the Bid: Once the bids have been evaluated, the Department Head/Division
1539 Head shall prepare a report to Council recommending the most responsive and
1540 responsible bidder. The Council shall then award the bid in a public meeting.
1541 All public project contracts exceeding $45,000 must be awarded by the City Council.
1542 Otherwise :
1543 a. Such purchases are void and not considered an obligation of the City.
1544 b. Invoices may be returned to the contractor/service provider unpaid.
1545 c. The person ordering the unauthorized purchase may be held personally liable for
1546 the costs of the contract.
1547
1548
1549
1550
1551
1552
1553
155 4
1555
1556
1557
155 8
155 9
1560
1561
1562
1~63
1564
1565
1566
1~67
1~6 8
156 9
:1~r I 73
I 74
I. Exceptions to Competitive Bidding Requirements
The bid process may be bypassed with Department Head approval in the following four
instances:
1. In emergency situations where time is of the essence , the appropriate Department
Head may dispense with bidding procedures with City Manager approval. For the
purpose of this section, emergency situations are those procurements required to
prevent the immediate interruption or cessation of necessary City services or to
safeguard life, property , or the public health and welfare . If the emergency
procurement would have otherwise required formal or informal bidding procedures ,
the department must obtain City Council ratification of the purchase at the next
regularly scheduled meeting. See Section I. Paragraph G . for additional information
on emergency purchases .
I
L When the comm odities aAG-o_L se rv ices that are required fo r a purchase can be
obtained from only one vendor, the Department Heads shall document that it is a "sole
source" purchase on the Bid Recap form. Most sole source purchases shall be the
result of the City deciding that it is in its best interest to use a specific vendor or
proprietary brand item or when one ve ndo r has the requ ired expertise to perfo rm the
needed servic e. All sole source purchases must be justified by written documentation
(bid recap) signed by the appropriate department head and approved by the
appropriate pal'l-yC itv Manager prior to being forwarded to the Finance Department.
The sufficiency of the ju stification for sole so urcing will be at the sole discretion of the
City Manager in consu ltation with the department head and will take into account the
facts and ci rcums tances relevan t to the purchase.
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I 75 2-,3. When the City Manager determ ines lhat compl iance with the above procedures for
I -76 a procurement of goods . supplies . equipment. mate ria ls or services ca nn ot be
I 77 achieved due to timing requirements . wh ich cou ld have not otherwise been avoided .
I 78 the City may proceed with an informal so li citation of quotes from at least l hree
I -79 vendors. A descriptio n of the circumstances . the quotes received , and the basis for
I -g o vendor selection shall be approved by the City Manager.
1581
1582 ~£._When there exists other governmental contracts that were competitively bid (such
1583 as State Contracts, DGS, etc.) that the City is eligible to use.
1584
1585
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ATTACHMENT 12
86 SECTION VIII -FEDE RAL PROCUREMENT
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Federa l pro cu rement applies to expendilures made for a pro1ecl or program for which a
Federal award was received . A Federal award is the Federal financial assistance or a
cost-reimbursement contract that the City receives directl y from a Federal awardin g
agen cy or in d irectly from a pass-throu g h entity suc h as the county or state. All non-
Federal e n lilies. jnclud ing su brecipienls of a state. m ust follow Code of Federal
Regulations. P ART 200-U NIFORM ADMINISTRATIV E R EQUI R EMENTS , COST
PRINC IPLES . AND A U DIT REQUIREMENTS FOR FEDERAL AWARDS.
A. Definitions
1 . Federal financial assistance .
Assista nce that non-Federa l entities re cei ve or administer in the form of:
a . Gra nt s;
b . Cooperative ag re emen ts .
c . Non-cash conlribulions or donations o f property (incl ud ing donated su rplus
property);
d . Direct appropriat ions:
e . Food commodities;
f. Loa ns ;
q . Loan Guarantees;
h . Interest subsid ies:
I. In su ra nce; an d
I. O the r assistance .
2 . Cooperative agreement.
a . A lega l instrument of fi nancial assistance betwee n a Federa l awa rdi ng agency or•
pass-t hrough entity and a no n-Federal e ntily t hat is used lo enter into a
relationshi p the p ri ncipal p urp ose of which 1s to transfer a nything of value fro m
the Fe de ral awarding agency o r pa ss-throug h e ntity to the non -Federa l entity Lo
carry out a p ublic p urpose authori zed by a law of lhe Un ited Slates: and not Lo
acq uire pro perty or ervices for the Fe dera l Govern ment or pass-through en tity's
direct benefit or use . It is distin g uishe d from a g rant in that it provides for
substantial involvement between the Fede ral awardin g ag ency or pass-throu g h
entit y and l he non-Fe de ra l entity ln c arrying o ut the ac ti vity contemplate d by lhe
Fe deral awa rd .
3 . Gran t agre emen t.
a . A legal ins trum e nt of fi na ncial assista nce between a Federal awarding agency or·
pass-l hra ugh en ti ty and a no n-Federa l en t ity that is used Lo enter into a
relat io nship lhe Qrinc1pa l purpose o f wh ic h is to tra nsf er anythin g of value fr om
the Fe deral awarding agency o r pass-th ro ugh en tity to the no n-Federal entity to
carry out a public purpose au thorized by a !aw of the United S tates. and not to
acquire prope rty or er1ices for the Federal awarding agency or pass-through
entity's di rect benefil or use . !l 1s dist inguished from a cooperative agreemenl in
that il d oes nol provide for su bsta ntial involvement betwe en the Fe derar awardin g
agency or pass -th roug h eot!tv and the na n-Federal enllty in carry ing o ul the
activity contem plated by the Federal award .
4. Loan.
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ATTACHMENT 12
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a. A Federal loan or loan guarantee re_ce ived or adm1n1stered by a non-F ederal ·
entity , except as used in the defin ition of prog ram i ncome .
5 . No n-Federal e ntity .
a . A state . local government, Indian tribe , institutio n of hi g her education , or nonprofit·
organization that carries out a Federal award as a recipient or subrecip ient.
6 . Pass-t hro ug h entity .
a. A no n-Federal entity that provide a subaward to a s ubrecipient to carry out part•
o f a Fede ral program .
7. Period of performance .
a . The l ime durinq wh ic h th e non -Federal entity may incur new ob li gat ions to carry·
out the work authorized under the Federal award. T he Federal awa rd ing agency
or pass-through en tity must l nclu.de start and end dates of the period of
performance in the Federal award .
8 . Prog ram Income .
a . Gross income earned by the no n-Federal entity that is di rectly generated by a·
supported acliv lty or e arned as a result of the Fed era l award during the period or
performance . Progra m income includes but is not limited to income from fees for
services performed , the use or rental or rea l or personal pro p erty acquired under
Federal awards , the sale of com modi ties o r ite ms fabricated under a Federal
award , license fees and ro y alties on patents and cop y ri g hts , and principal and
interest on loans made with Federal awa rd funds. Interest earned on advances
of Federal funds is not pro g ram income. Except as otherwise provided in Federal
statutes. regulations. or t he te rms and conditions of the Federal award , program
i ncome does not include rebates . c redits . discounts, and inte rest earned on a ny
of them.
9 . Project cost.
a . Total allowable costs incurred un der a Federal award and all required cost·
sh a ring and volu ntary committed cost sharing. incl ud ing th ird-party contributions.
10 . Recipient.
a . A non-Federa l entity thaf receives a Federal award directly from a Federa l·
awarding agency to carry oill an activ ity under a Federa l program ..
11 . Subaward.
a . Awa rd provided by a pass-through entity l o a s ubrecipient fo r the subrecipieot to·
carry oul part of a Federal award received by the pass-through entity . lt does not
Include Ravments to a cont ractor or payments to an ind iv idual that Is a beneficiary
of a Federa l program . A s u baward may be provided th rough any form of lega l
agreem ent. includ ing an agreement that the pass-through enlily considers a
contract.
12 . Subrecipient.
a A non -Federal entity thal receives a subaward from a pass-th rough entity to carry·
out part of a Federal pro g ram; but does not include an individual that is a
beneficiary of such prog ram . A subrec ip ient mav also be a recipient of other
Federal awards directly from a Federal award ing agency.
B. Addi t ional Procurement Procedures
1 In additi on to lhe purchasing polic ies and procedures m Sections I through V II , the ·
fo ll owing procedures Wil l apply .,
a. No employ ee . officer. or a g ent may p artic ip ate in the selection , award , or·
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ATTACHMENT 12
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administration of a con1racl supported by a Federal award 1r h e or she has a
re al or apparent conflict of interest. Such a conflict of i n teres t wou ld arjse
when the employee. officer. or agent. any member of his or h e r immediate
fam ily , h is o r her partner. or an organization which e m p loys or Is about to
employ any of the parties i nd icated herein , has a financial or other Interest in
or a tangible personal benefit from a firm considered for a contract.
Di sciplinary actions und er Ru l e 11 of the Personnel Rules will be applied fo r
violations of such standards by officers , employees. or agents of the non -
Federal entity.
-+l:lfee-fAtem:la t-@fiGe=et10te·6--ffH,Jst--Ge-se liGlte&-fer~ases-ave~
e*GAAl:-flliriAg.-ae r:ioos-ef-aA-em 0ffiSAGV as-9eflAeel-E1>t-!A~S=f*)ltG1; OF a pWlis
ffi<i AAfiG v-=tAal-Fe{Jt1li:es-er-tlemaAGs-iffif'Aeeifa:te-ai€1-ei:-astiei').,
b . ,Procurement usi ng the forma l bidding or formal RFP/RFQ procedures must·
be fo llowed for purchases over $250.000 , excep t durin g peri ods o f an
e m ergency as defined by th is pol icy or a publi c exigency tha t requ ires o r
d emands i mmediate a id or action.,..
c . Formal bidding is the preferred method for p rocuring construction when the
procurem en t l ends i tself to a Firm fixed price contract and th e selection of the
successful bidder can be made princlpal ly on !he basis of to west respo nsi ve
and responsible bidder .•
d . Procurements must take l he follow ing steps to assure m inority businesses .
women's business enterprises, and labor surplus area firms are used when
possible:
1 . Placing qua lifie d smafl and minority bus inesses and women's
bus iness enterpr1ses on so li citation lists:
2. Assuring Iha small and m inority businesses, and women 's
bus iness enterprises are so licited wheneve r they a re potentia l
sources;
3. Divid ing tota l requ ireme nts, when econo mically fea s ble. rnt o
smaller tas ks or quanti ties to permit maximum participation by
sma)! and mino ri ty busjnesses . and women 's business
enterprises;
4 . Establlsh l nq de livery schedules, where Lhe requ i re.menl permlls .
which encourage oarti c i patjon by sma ll and minority businesses .
and women 1s business enterp rises ;
5. Using the services and assistance. as appropriate. of such
organizations as the Small Business Administration and the
Minority Business Deve lopment Agency or th e Departmen t o f
Commerce; and
6. Requiring the pri me contrac to r . If subcontracts are to be let . to·
take the affi rmati1J e steps lis ted in paragraphs 1 through 5 of this
section.
e . Proc u re ments, m u st avoid acqurs ition of unhecessary or d u p li ca tive items ..
f. A cost or price an lysis In connection with every procurement action In excess of
$250,00 0 must be ~rformed and must inclµde independent estima tes before
rece iving bi ds or proposals .
g Profit must be negoti ated as a separate ele ment of the price for each contract in
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wh ich the re ls no price compeliUcn and ln all cases where co st analysis 1s
performed. To esta blish a fair and re as onabl e pro 1t. cons iderat ion mu st be given
to the co mp lexity of the work to be perform ed . the risk borne by the contractor ,
the contractor's investment. the amount of subcontractin g , the quality of its record
of pas l performan ce , and in dustry prom rates in the su rro undi ng geograp hical
area for similar work .
h. Costs or pri ces based on estima ted cos ts fo r co ntrac ts are all owa bl e on ly to the
exten t lha l the cos t accou nti ng prin ciples for determin i ng costs inc urred or cos t
es tim ates inc luded i n negotiated prices comp ly with Federal cost prin cip les.
1. The cost pl us a pe rce n tage of cost and perce ntag e of co nstruction cost method s
of confracti ng must no t be used .
39 SECTION 1v m -DISPOSTION OF SURPLUS PROPERTY/CAPITAL ASSETS
1740 COTHER THAN REAL PROPERTY)
1741
1742 Surplus Property Definition
1743 Supplies and equipment are considered surplus if they are no longer required by the using
1744 department, because of decreased use, poor condition, damage not worth the cost of
1745 repair, and/or obsolescence. Examples of property include small items, such as binders,
1746 calculators, and electric staplers, as well as inventoried items, such as printers, pool cars,
174 7 and desks. Property can also include capital assets, which are the items that generally
1748 have a higher unit cost and are inventoried as capital assets. Examples of capital assets
1749 are water fountains, playground equipment, and building or structural components, such
1750 as roofs, restrooms, and roadways. This definition of surplus property excludes real
I 7 51 property .
1752
1753 Surplus Property DeterminationNaluation
1754 The Department Head should first determine if a supply, piece of equipment , or capital
1755 asset has become surplus, based on the definition given above. The next step is to
1756 determine the current value of the surplus property item, either from an existing source
1757 document or a reasonable estimate of replacement value , if the original source document
1758 is no longer available through the City's records management system.
1759
1760 If the current value of the surplus property item is less than $500, the Department Head
1761 or designee should bring the surplus property item directly to Finance Department in order
1762 to log its receipt, determine its disposition, and then coordinate its disposal.
1763
1764 Surplus Property/Capital Asset Disposition Form (See Appendix B)
1765 If the property item is deemed surplus and its current value is over $500, then the
1766 Department Head must complete a Surplus Property/Capital Asset Disposition form. This
1767 form is available on the City's Intranet. One copy of the form should be circulated for
I 76 8 signatures.
1769
1770 On the disposition form, the Department Head should list the item's description, serial
1771 number, fixed asset tag number (if applicable}, location, and condition. The Department
1772 Head should indicate the property's condition (good, fair, poor, or broken) and then
1773 recommend a method of disposal for the property (see the following section for
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ATTACHMENT 12
1774 descriptions of disposal methods). After selecting the recommended action and noting
1775 any other comments, the Department Head must sign and date the Surplus
1776 Property/Capital Asset Disposition form and forward it to the Purchasing Officer.
1777
1778 Methods of Disposal
1779 There are several ways to dispose of surplus property , includ ing:
1780 • Transfer to another department;
1781 • Trade in for new material, equipment or credit ;
1782 • Sell;
1783 • Donate; or
1784 • Scrap.
1785
1786 Transfer to another Department
1787 Departments can transfer surplus property to one another , subject to the approval of both
1788 of the Department Heads affected by the transfer. If the current value of the item is $500
1789 or above , the department transferring out the property should initiate a Surplus
1790 Property/Capital Asset Disposition form and both Department Heads should sign the
1791 form . If a fixed asset is being transferred (unit price of $2 ,000 and above), the Accounting
1792 staff will record the new location of the property in the City's fixed asset system.
1793
1 794 Trade-In
1795 Surplus property can be offered as trade-in for new equipment or material or for credit
1796 towards the acquisition of new property. If the current value of a surplus property item
1797 slated for trade-in is $500 or over, then a Surplus Property/Cap ital Asset Disposition form
1798 should be completed. The estimated trade in value of the surplus property or capital asset
1 799 should be noted on the Surplus Property/Capital Asset Disposition form and on the
1800 purchase order issued for any new property resulting from the trade in.
1801
1802 Selling Surplus Property
1803 Surplus property may be offered for sale. All surplus property is for sale "as is" and "where
1804 is ," with no warranty, guarantee, or representation of any kind , expressed or implied, as
1805 to the condition, utility or usability of the property offered for sale. For any sale of surplus
1806 property with a current value of $500 or above, the Department Head should indicate on
1807 the Surplus Property/Capital Asset Disposition form the recommended selling method
1808 and any other notations in the Department Head approval. Appropriate methods of sale
1809 are as follows :
1810
1811 a. Public Auction -City staff may conduct public auctions or the City may contract
1812 with a professional auctioneer and/or an Internet auctioneer for this service.
1813
1814 b. Sealed bids -Sealed bids may be solicited for the sale of surplus property.
1815 Surplus property disposed of in this manner shall be sold to the highest
1816 responsible bidder.
1817
1818 c. Negotiated Sale -Surplus property may be sold outright if the Purchasing
1819 Officer determines that only one known buyer is available or interested in
1820 acquiring the property.
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1821
1822 d. Selling to City Employees -If recommended by the Purchasing Officer and
1823 approved by the City Manager, certain surplus property items may be offered
1824 for sale to City employees on an exclusive basis or in conjunction with sales to
1825 the public; however, those employees whose job responsibilities involve central
1826 purchasing administration and/or functional control over the surplus property
1827 are not permitted to participate in such sales.
1828
1829 e. Selling as Salvage -Equipment, materials, supplies, fixtures, or facility
1830 components that are no longer capable of performing their intended function
1831 without extensive repair, or that are of no value except for reclamation
1832 purposes, may be considered salvage. Surplus property may be sold as
1833 salvage if the Purchasing Officer deems that the value of the raw material
1834 exceeds the value of the property as a whole .
1835
I 836 Donation of Surplus Property
1837 The Department Head may recommend and the Purchasing Officer may authorize,
1838 subject to the approval of the City Manager, the donation of surplus property to a non-
1839 profit organization or school district located or operating in San Juan Capistrano or,
I 840 secondarily, to any other non-profit organization or private organization that provides
1841 assistance to nonprofit organizations. If surplus property has been approved for donation,
1842 the Purchasing Officer will notice the availability of such property for donation, indicating
1843 the quantity, description, and location of the surplus property, by one or more of the
1844 following methods: in a local newspaper and on the City's web site. This notice will also
1845 indicate a closing date for the receipt of all requests for donation and indicate the way in
1846 which interested parties can receive additional information.
1847
1848 Requests for donation will be accepted on a first-come , first-serve basis. The Purchasing
I 849 Officer will send a letter to the non-profit organization( s) or school district( s) that respond
1850 to the notice to advise them of the City's terms and conditions of the donation. The terms
I 851 and conditions that the requesters must meet are: ( 1) accepting the property "as is," with
1852 no implied warranties, (2) stating an immediate need for the property and putting it into
1853 immediate use; (3) agreeing that the property will not ever be sold or otherwise transferred
1854 for profit; and ( 4) assuming all costs and liability associated with the removal and
1855 transportation of the surplus property from the City. A return letter, signed by an
1856 authorized agent from the non-profit organization or school district, accepting the City's
1857 terms and conditions is required before the surplus property can be released.
1858
I 859 If, in the opinion of the Purchasing Officer, the donated property has a current value of
I 860 less than $1,000, then the City Manager can approve the release of the property to the
1861 recipient(s) that meet the above criteria and agree to the City's terms and conditions. If,
1862 in the opinion of the Purchasing Officer, the donated property has a current value of
I 863 $1,000 or more, the Purchasing Officer will prepare a report to identify the specific
1864 property to be donated, the estimated current value of the property, and the proposed
1865 recipient(s) of the property for approval by City Council. After City Council's approval, the
I 866 surplus property approved for donation may then be released .
1867
1868 The department from which the donated property is being taken should remove any fixed
49
864426 I
ATTACHMENT 12
1869 asset or San Juan Capistrano property tags before the property is officially transferred to
1870 the recipient organization(s).
1871
1872 Scrap/No Value Item
1873 Scrap, as one method of surplus property disposal, essentially means throwing an item
1874 into the trash. Scrap is recommended only after determining that none of the other
1875 methods of disposal -selling, exchange, trade-in, donation, or salvage -is feasible.
1876 Broken items that can be repaired economically will be fixed and returned to the using
1877 department. For any broken or inoperable piece of property that, based on the
1878 recommendation of the Department Head and the judgment of the Purchasing Officer,
1879 cannot be economically repaired, traded in, sold, auctioned, donated or salvaged, the
1880 item may be scrapped, regardless of the original purchase price.
1881
1882 If the Department Head or designee recommends that an unbroken surplus property item
1883 with a current value below $500 or several unbroken surplus property items with a
1884 collective current value below $1,000 be scrapped, then he/she should bring the item(s)
1885 directly to the Purchasing Division for disposal. If the surplus property is obsolete or
1886 nonfunctional and cannot be traded in, sold auctioned, donated or salvaged, the
1887 Purchasing Officer, with the approval of the City Manager, may scrap such surplus
1888 property.
1889
1890 If a surplus property item recommended to be scrapped is not broken and has a current
1891 value equal to or above $500, or for multiple items, a combined current value equal to or
1892 above $1,000, then the Department Head must complete a Surplus Property/Capital
1893 Asset Disposition form. Under these conditions, especially if City staff will directly dispose
1894 of the item(s), Council approval to scrap will also be required. If City staff does not directly
1895 scrap this category of surplus property but a contractor is instead hired to remove and
1896 replace the property, then the disposal method is considered to be a trade in, not scrap,
1897 and the City Council approval requirement does not apply.
1898
1899 For multiple items proposed to be scrapped, the size of the lot and thus the total current
1900 value will be based on the items and values entered on the Surplus Property/Capital Asset
1901 Disposition form(s) submitted by the department. Splitting of surplus lots on these forms
1902 to avoid the City Council reporting requirements is prohibited.
1903
1904 The report to City Council to request approval to scrap will be prepared by the Purchasing
1905 Division after receipt of the completed Surplus Property/Capital Asset Disposition form.
1906 Once City Council approval is granted, the Purchasing Officer will then scrap the item(s).
1907
1908 Purchasing Officer's Review and Final Disposition
1909 In the case of surplus property items with a current value below $500 for a single item or
1910 below $1,000 for multiple items within one lot, the departments do not have to complete
1911 a Surplus Property/Capital Asset Disposition form. Instead, the departments will
1912 physically bring the items to the Finance Department. Finance Department will receive
1913 these items from the department, and the Purchasing Officer will determine the best
1914 method for disposal of these items. A description of these surplus property items, as well
1915 as the date received from the departments, the disposal method, and the disposal date
1916 will be recorded on a surplus property log maintained by Finance Department.
50
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ATTACHMENT 12
1917
1918 For all surplus property items with a current value equal to or above $500 for a single item
1919 or equal to or above $1,000 for multiple items within one lot, the Purchasing Officer will
1920 review the department's completed Surplus Property/Capital Asset Dispos ition form ,
1921 concur with or recommend an alternate action, and then forward the form to the City
1922 Manager for approval. The Purchasing Officer will also ascertain whether City Council
1923 approval is required to donate or scrap surplus property items , depending on the current
1924 value of the items listed on the form. If further City Council action is required, then the
1925 Purchasing Officer will indicate that a report to City Council for final approval will be
1926 necessary. After the City Manager has approved the Surplus Property/Capital Asset
1927 Disposition form, it will be returned to the Purchasing Officer for either preparation of a
1928 report to City Council, if needed , or for final disposition of the property.
1929
1930 After the disposal of the surplus property, the Purchasing Officer will complete and sign
1931 the Surplus Property/Capital Asset Disposition form, noting the date, disposal method,
1932 and any proceeds received , ifthe property was sold . The Purchasing Officer will also note
1933 the date that City Council approved the donation or scrapping of surplus property if that
1934 level of approval was required.
1935
1936 After all signatures have been obtained, a copy of the form will be sent to the initiating
1937 department and to the Accounting Division, which will remove any surplus property items
1938 that had been classified as fixed assets from the City's Fixed Asset Records. Purchasing
1939 will keep the completed original form on file.
1940
1941 Proceeds
1 942 Any proceeds received from the trade-in or sale of surplus property will be credited to the
1943 General Fund or the Facilities Operations Fund as appropriate .
1944
1945
51
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ATTACHMENT 12
1946 APPENDIX A -PURCHASING AUTHORITIES
1947
1948 Uniform Public Construction Cost Accounting Resolution 06-09-19-04 approved
1949 September 19, 2006
1950
864426 .1
RESOLUTION NO. 06-09-1~ o~
A RESOLUTION OF THE CITY COUNCI L OF THE CITY OF SAN .IUAN
CA.PlSTRANO, CAUF~Nll\. ELEC'llNG F~ Tl1E CITY TO eECOt.Ae
SUBJECT TO THE U'f(ORM PUBLIC CONSTRUCTION COST
ACCOUNTING PROCEDU~
WMER •AS . p(l()( !O 1he passage of Assemllly BUI o. 1666. Cllapt:er 1054 .
Statmes of 983 . Mild! lidded Chaptar 2. CQllJITloncing wll S IC11 :nooo !O Part 3 or
DM~u"' 2 (I I the Public C'..o ntred Code. s ng did not PfO"lide a unif~rm 00111
sccoonimg s1arida rd for COll.'llnid1nn wm peffe<mctd or oonlrac:tea by ~ putlllC
agencies: and ,
I
WHEREAS, Pu bte Contr.KI Cods Section 22000 et seq __ I.he Unrror Public
Conl>'lr\lclqn co l AccounUog 1'4 U1e ·At:I·) 11ata1>11!1W.!S sudl a unifonn oost aooount1n
standard ; and
Nl-IEREAS. Tho Cifrtomlll Unifllflll Public Conslnll!1 1 Co~l Ai!i:curnlng
C<Jmn~lo n (U11; "Com~slcn 'I estabUs!'.ed under lhe AcL has developed uniform
public co:s1 aa;o ulMing proc~r&G fOf rnplom9'1U>tion by local PIJl;k ~"" in tne
perl0<ma of 0< In lhe oo nlfac1 ng for c:o nsttucoon of public p«>)9cl5
O'W . THEREFORE. BE RESOlVED. !hat th City Co11 nr,ll of lh Cff?' or S\ln
Ju~ri ClplW.O "°'' hereov el~ es loll ow5
sECl 10 . fhe Clty Cou11e~ ol !tie C o S11n Juan Capetra no hereby aleaa
undor Pub lic Contrael CodO Sacboo 22030 to bec:o mo ubjCCJ IO tho ur>iform public;
conll1ruCllon cxiBI acc:oun1ing ptoc:edute!I. 9111 forth in the Act end In the Convnia&ion'a
p0litieB and pl'OQldures manual and 008' 1ccou,..lng rtvlew ~res. as they ITllY
eadl from time ID ~ma be miended.
S!CTION 2. The City Cler11: 41 he reby diractlld to (a) notify the state of Cairom!a
Conlrolll!f In 1111rlllng of dle City of San JUlln c,,piatranc)'s eiec&n to becQme g~bjact to
lh~ ur1ifoon publl!; com; ru<:bon roil ao.:ou 111ing procedures and (b} 1 a C<:9Y ot U11;
R&!lolullon -. th ihe Stat 11' CaUfo 1nl Conlrllll&r at lhe foOoiwing add ress. 0 1 ce o
Slat• Controlltr, Division of Acroul\mg •nd Reporljrlg, ~ Gov.Inmont PoliCiH
Secllon, P.O. Box 9428!50. Sacrama(l.lo . CA. 04250.
····x I of2 91]912006
52
ATIACHMENT 12
1951
1152 I 53
l 54
I 55
I 56
I 57
1958
864426.1
PASSEO. APPFtOveo. AlllO ADOPTED 1hia 1 ~ day ol S.ptumber 2006.
ATIEST:
I
,..,,-:_'?;, U . { f (v ' --
/\R E R MONAHAN, CITY CLERK --
STAlE OF CALIFORNIA )
COUNTY OF ORAAGE ) ss.
CllY OF SAN JUAN CAPIS'f'FV.lllO )
I, VAAGARET ~ \IOlllAHAN i1P nl Co~/ Ctar< of t11<1 Cly of Sllll Ju ao C&pilillaf'IO, Ocll)efO by '1Jfldy
Iha tM lo 'OllOi"ll Rosolutlan No. 06.09·19-04 ...it!d u'f sd llfl lllOtl)'ln Cjly Couno l otlhaCliyo f 8'1 .l""'1
Cap.Wa no a ~l&f meeQng lhl'foo l la t.he $" dQya f S.:p 1cm:ier 2006, by 116 IOllO'A1ng vota
r.\AA1)ARE r R l.IO NA
! . ..)
·· · 2 of2 9119/2006
53
ATTACHMENT 12
CITY OF SAN JUAN CAPISTRANO
2 CITY COUNCIL POLICY 126
3 (Revised June 4, 2019)
4
5
6 SUBJECT: PURCHASING POLICES AND PROCEDURES
7 Effective: August 2, 2019
8 Policy Number: City Council Policy No. XXX, replacing previous City Council Policy No.
9 126, City Council Policy No. 112 and Administrative Policies 504 , 507 , and 510
IO
11 Contents
12 SECTION I -GENERAL INFORMATION ....................................................................... 3
13 A Glossary of Terms -The words defined in this Section shall have the meaning
14 set forth below whenever they appear in this Policy: ............................................ 3
15 B. Purpose and Goals ............................................................................................... 7
16 C . Roles and Responsibilities ................................................................................... 7
17 D. Purchasing Cycle .................................................................................................. 8
18 E. Purchase Orders .................................................................................................. 9
19 F. Signature Authorization within Departments ......................................................... 9
20 G. Ethics .................................................................................................................. 10
21 H. Emergency Purchases ....................................................................................... 12
22 I. Recycled Products .............................................................................................. 13
23 J. Energy Efficient Products ................................................................................... 14
24 K. Local Bidders ...................................................................................................... 15
25 SECTION II -MINOR PURCHASES ............................................................................ 16
26 A . Petty Cash .......................................................................................................... 16
27 B. Credit or Procurement Cards .............................................................................. 17
28 C . Check Requests ................................................................................................. 18
29 SECTION Ill -GOODS , SUPPLIES, EQUIPMENT, AND MATERIALS ........................ 18
30 SECTION IV -SERVICE CONTRACTS (PROFESSIONAL AND MAINTENANCE) .... 20
31 SECTION V -PUBLIC WORKS PROJECTS ............................................................... 23
32 SECTION VI -CHANGE ORDERS FOR PUBLIC WORKS PROJECTS .................... 27
33 SECTION VII -BIDDING PROCEDURES .................................................................... 28
34 A Introduction to Bidding Procedures ..................................................................... 28
35 Overview ............................................................................................................ 28
36 Documenting the Bid Process ............................................................................ 28
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ATTACHMENT 13
37 B. Qualified Bidder List ........................................................................................... 29
38 C. Informal Solicitation of Qualifications (SQQ) ....................................................... 30
39 D. Lowest Responsible (Responsive and Qualified) Bidder .................................... 31
40 E. Informal Quotes .................................................................................................. 32
41 F. Formal Request for Proposal or Request for Qualifications (RFP/RFQ) ............. 32
42 G. Informal Bid Process .......................................................................................... 37
43 H. Formal Bid Process ............................................................................................ 37
44 I. Exceptions to Competitive Bidding Requirements .............................................. 40
45 SECTION VIII -FEDERAL PROCUREMENT .............................................................. 42
46 SECTION IV-DISPOSITION OF SURPLUS PROPERTY/CAPITAL ASSETS (OTHER
4 7 THAN REAL PROPERTY) ............................................................................................ 42
48 APPENDIX A -PURCHASING AUTHORITIES ............................................................ 50
49 Uniform Public Construction Cost Accounting Resolution 06-09-19-04 approved
50 September 19 , 2006 ........................................................................................... 50
5 1
52
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ATTACHMENT 13
53 SECTION I -GENERAL INFORMATION
54
55 A. Glossary of Terms -The words defined in this Section shall have the meaning set
56 forth below whenever they appear in this Policy:
57
58 Amendment shall mean a properly executed written Contract entered into and
59 between the City and a Contractor covering modifications to the original Contract and
60 which may result in adjustments to provisions of the Contract, including, but not limited
6J to, terms, compensation, and/or period of performance.
62
63 Bid Recap Form shall mean the form required by the Finance Department to initiate
64 Purchase Orders that exceed certain dollar thresholds, and which is used to
65 demonstrate that the Procurement is carried out in a manner that is consistent with
66 this Policy.
67
68 Budgeted shall mean the amount of appropriations within a fund adopted for
69 expenditure by the City Council.
70
71 CalCard (Credit Card) shall mean the City issued credit cards provided as a method
72 to procure budgeted low value items, typically up to $500, similar to the process for a
73 check request or petty cash reimbursement.
74
75 Change Order shall mean a properly executed written order entered into and
76 between the City and the Contractor, or unilaterally issued by the City, covering
77 modifications to the Contract, which may result in changes to the scope of work,
78 contract amount, requirements, and/or period of performance.
79
80 Check Request shall mean a request for a check issuance for purchases of $10,000
81 or less, or where a Purchase Order would not be expedient.
82
83 Chief Financial Officer shall mean the Department Head for the Finance
84 Department, or his or her designee.
85
86 City Manager shall mean the City Manager of San Juan Capistrano, or his or her
87 designee .
88
89 Contract shall mean any type of agreement for the purchase of goods and/or
90 services. Contracts may be referred to in various ways, including "contract,"
9 1 "agreement," purchase order" and "task order."
92
93 Contract Transmittal Form shall mean a form containing a checklist of all
94. required documentation for the procurement of Goods, Supplies, Equipment, and
95 Materials or Service Contracts.
96
97 Contractor shall mean any person or entity that has a contract with the City .
98
99
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ATTACHMENT 13
100 Department Head shall mean the person tasked with the responsibility for the day-
101 to-day operation of a department, including managing staff and developing plans in
102 collaboration with the City Manager for the future of the organization, or his or her
103 designee.
104
105 Emergency shall mean a sudden, unexpected occurrence that poses a clear and
106 imminent danger, requiring immediate action to prevent or mitigate the loss or
107 impairment of life, health, property, or essential public services.
108
109 Emergency Purchase Authorization Form shall mean the form required for a
11 O Department Head to declare the need for an Emergency purchase.
111
112 Encumbrance shall mean the estimated amount set aside from the budget for a
113 particular Procurement.
114
115 Fee Recovery Ve n dors shall mean vendors on the Qualified Bidders list retained for
116 development projects, and who are paid by developers (examples: outside EIR, plan
117 check review).
118
119 Finance Department shall mean the department so designated by the City Manager
120 to be responsible for the day-to-day administration of the City's purchasing policies
121 and procurement procedures.
122
123 For mal Bid Process shall mean the public bidding process used for purchases of
124 goods, supplies, equipment, materials or services. The process requires a public
125 notice inviting bids, availability of specifications, bid opening, determination of lowest
126 responsive and responsible bidder, awarding of the bid, and public access to the
127 results of the process.
128
129 Forma l Requ est for Proposal (RFP)/ Request for Qualification (RFQ) shall mean
130 a selection process designed to ensure that the City has engaged the most qualified
131 consultant available for the services to be provided.
132
133 Goods, Supplies , Equipment an d Materia l s shall mean fixed, movable, disposable,
134 and/or reusable products, commodities, or items used by the City, including, but not
135 limited to, office supplies, program supplies, subscriptions, vehicles, fuel and vehicle
136 supplies, tools, computers, computer hardware and software, landscape and irrigation
13 7 supplies, power tools, janitorial supplies, office furniture, and fixtures, which shall be
13 8 furnished to or used by any department.
139
140 Informal Bid Process shall mean a bidding process used, when applicable, for
141 purchases of goods, supplies, equipment, materials or services. The process
142 requires a notice inviting informal bids, which shall be mailed to contractors on the
143 Qualified Bidders List and, where applicable, advertised in designated construction
144 trade journals, availability of project details, bid opening, determination of successful
145 bidder, and awarding of the contract.
146
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ATTACHMENT 13
147 Informal Quote shall mean a selection process used to assure the most competitive
148 price is received for an item, while avoiding the additional time and expense involved
149 in formal bidding.
150
151 Informal Solicitation of Qualifications (SQQ) shall mean the process that
152 establishes criteria for evaluating firms that request placement on the City's Qualified
153 Bidders List.
154
155 Maintenance Services shall mean the furnishing of labor, time, or effort by a
156 contractor including, but not limited to (a) routine, recurring, and usual work for the
157 preservation or protection of a publicly-owned, or publicly-operated facility for intended
158 purposes; (b) minor repainting; (c) resurfacing of streets and highways at less than
159 one inch (1"); (d) landscape maintenance, including mowing, watering, trimming,
160 pruning, planting, replacement of plants, and servicing of irrigation and sprinkler
161 systems; and (e) work performed to keep, operate and maintain publicly-owned water
162 or waste disposal systems.
163
164 New Vendor Application Form shall mean a form required of all new vendors that
165 provides pertinent information, including information for the issuance of a federal W9
166 Request for Taxpayer Identification Number and Certification form.
167
168 Non-Fee Recovery Vendors shall mean vendors on the Qualified Bidders List that
169 have no offsetting revenue from developers.
170
171 Originating Department shall mean any department requiring goods, supplies,
172 equipment, materials, services, and/or construction procured.
173
174 Petty Cash shall mean a cash disbursement for authorized expenses up to a
175 maximum of $50.00 for such items as emergency supplies and tools not readily
176 available, or an approved meeting attendance.
177
178 Procurement shall mean the buying, purchasing, renting, leasing, or otherwise
179 acquiring of any goods, supplies, equipment, materials, services, and Public Works
180 projects. Procurement shall also include all functions that pertain to the obtaining of
181 any goods, services, or construction, including description of requirements, election
182 and solicitation of sources, preparation and award of contract, and all phases of
183 contract administration.
184
185 Professional Services shall mean those services provided by any specially trained,
186 educated, experienced or licensed person, company, corporation, or firm, and which
187 involve the exercise of discretion and independent judgment together with an
188 advanced or specialized knowledge, expertise, training, or unique skills gained by
189 formal studies or experience.
190
191 Professional Services Agreements (PSA) shall mean Contracts negotiated for
192 professional services, which are based on demonstrated competence, and
193 professional qualifications for the services required.
194
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ATTACHMENT 13
195 Public Works Projects shall mean construction, reconstruction, erection, alteration,
196 renovation, improvement, demolition, and repair work involving any facility owned,
197 leased, or operated by the City as defined in California Public Contract Code section
198 22002, or as subsequently amended. The definition also includes painting/ repainting,
199 plumbing, electrical wiring, and/or other trade work for any facility owned, leased or
200 operated by the City. Construction, erection, improvement, or repair of dams,
201 reservoirs, and electrical transmission lines of 230,000 volts and higher that are owned
202 by the City, are also considered a Public Works project.
203
204 Purchase Order (PO) shall mean a commercial document issued by a buyer to a
205 seller, indicating types, quantities, and agreed prices for products or services the
206 seller will provide to the buyer.
207
208 Qualified Bidders List shall mean one list for ongoing service requirements for the
209 same or very similar services, including maintenance services, professional services,
21 O and qualified construction contractors, categorized by the type of product sold or work
211 performed for use in soliciting bids.
212
213 Request for Purchase Order Modification (POM) Form shall mean a form that is
214 transmitted to the Finance Department to request a change in the amount
215 encumbered for a Purchase Order.
216
217 Requisition shall mean a document making a demand for goods, supplies,
218 equipment, and materials and quoting proper authority for the demand, funds, delivery
219 date, quantities, etc.
220
221 Responsible Bidder shall mean a bidder who has demonstrated the attribute of
222 trustworthiness, as well as quality, fitness, capacity, and experience to satisfactorily
223 perform the work proposed.
224
225 Responsive Bidder shall mean a bidder who has submitted a bid which conforms in
226 all material respects to the Notice Inviting Bids.
227
228 Sole Source shall mean an award for a commodity or service that can feasibly be
229 obtained from one source only.
230
231 Surplus Property means property, other than real property, no longer needed by City
232 departments for its operations, obsolete property, property in poor or non-working
233 condition, or property that is a by-product (i.e., scrap metal, used tires, oil, etc.).
234
235 Uniform Public Construction Cost Accounting (UPCCA) shall mean the provisions
236 of the Public Contracts Code Sections 22010 through 22045 (PCC 22010-22045), and
23 7 any subsequent amendments.
238
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ATTACHMENT 13
239 B. Purpose and Goals
240 This Purchasing Policy ("Policy") sets forth a centralized system and outlines the
241 authorities and responsibilities of the Purchasing Officer or the designee to negotiate or
242 contract for professional and maintenance services, Public Works projects and to
243 purchase goods, supplies, equipment, and materials required by City departments. When
244 authorized to procure materials or professional or maintenance services, all City
245 employees shall follow this Policy to correctly and ethically process procurement and
246 ensure the efficient use of public funds. Funds for Capital Improvement projects (CIP)
247 are processed and administered by various City departments, each of which shall
248 follow applicable state and federal guidelines in the procurement of contracts and
249 Public Works projects. Direct payment by an insurer to a vendor shall be subject to
250 the requirements of said insurer and is not an expenditure of City resources subject to
251 the requirements of this policy and not recorded as such in the City's accounting
252 records or in the City's financial statements. In accordance with government
253 accounting standards, City expenditures are recorded net of insurance recovery when
254 the insurance recovery occurs in the same year as the insured loss.
255
256 The guiding principles of those involved in the purchasing function should be:
257
258 • To comply with State law, the City's Municipal Code, and the adopted budget
259 for all purchases and contracts.
260 • To procure the goods, supplies, equipment, materials and services needed by
261 the departments at the lowest possible cost, taking into consideration quality,
262 service levels, and time constraints.
263 • To act in a professional and ethical manner.
264 C. Roles and Responsibilities
265
266 Procuring Department Responsibilities
267 • To anticipate requirements sufficiently in advance to allow adequate time to
268 obtain goods and services in accordance with best purchasing practices.
269 • To not split orders for the purpose of avoiding purchasing requirements.
270 • To provide detailed, accurate specifications to ensure goods and services
271 obtained are consistent with requirements and expectations.
272 • To prepare requisitions in accordance with instructions so as to minimize the
273 processing effort.
274 • To minimize emergency and sole source purchases and to provide written
275 documentation when such purchases may be necessary.
276 • To complete the Contract Transmittal Form to ensure that a vendor complies
277 with all contract requirements (insurance certificates, business license, etc.) -
278 See Contract Transmittal Form in Appendix B.
279 • To consider the use of recycled products when it is practical and economically
280 feasible.
281
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ATTACHMENT 13
282 Finance Department Responsibilities
283 Pursuant to the City Municipal Code, the City Manager, or the City Manager's designee,
284 shall serve as the Purchasing Officer. The City Manager has designated the Chief
285 Financial Officer to serve as the Purchasing Officer.
286 The Finance Department has overall responsibility for the procurement of business service
287 supplies, the administration of the purchasing policies, and the management of surplus
288 City property, not including real property. Other purchasing responsibilities are:
289
290 • To ensure full and open competition on all purchases as required by this Policy.
291 • To coordinate vendor relations, locate sources of supply and evaluate vendor
292 performance.
293 • To recommend revisions to purchasing procedures when necessary and keep
294 informed of current developments in the field of public purchasing.
295 • To prescribe and maintain all forms and records necessary for the efficient
296 operation of the purchasing function.
297 • To act as the City's agent in the transfer and disposal of surplus equipment and
298 materials.
299 D. Purchasing Cycle
300 The purchasing cycle establishes the proper steps for City staff to follow when
301 requisitioning goods, supplies, materials and equipment; Public Works projects; and/or
302 professional and maintenance service contracts.
303 The Budget
304 The first step in the purchasing cycle is the approval of the City's budget. The approved
305 budget provides authorization to the City Manager and designees to purchase the goods,
306 supplies, equipment, materials, and services listed in the line item budget document.
307 Such purchases are subject to additional rules, as set forth herein, including approval
308 limitations based on dollar amounts by Department Heads, the City Manager, or City
309 Council, and/or informal and formal bidding requirements.
31 O Method of Procurement
311 As the second step, the department will choose the method of procurement according to
312 the type of purchase, the dollar value of purchase, and the standards set forth in this
313 Policy. The different standards for procurement are set forth under the sections of this
314 Policy entitled "petty cash", "credit card", "check requests", "purchase orders", "goods,
315 supplies, equipment, and materials", "service contracts", and "Public Works projects."
316
317 Receiving and Acceptance
318 The receiving and acceptance functions represent the final phase in completing the
319 purchasing cycle. At this point, the product or service is either accepted or rejected, based
320 on the quantity, quality, and/or delivery compliance of the item(s). After this phase,
321 payment authorization can proceed.
322
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ATTACHMENT 13
323 E. Purchase Orders
324 The purchase order (PO) is the primary and preferable procurement method and
325 serves as the main source of encumbering and procuring goods and services.
326 Exceptions to this rule include purchases of services, goods, supplies, equipment
327 and materials of $50.00 or less with petty cash (see Section II, Paragraph A below),
328 credit card (see Section II, Paragraph B below), and emergencies (see Section I,
329 Paragraph G below). Important to the procurement process is the system of
330 encumbrance accounting, which helps d~partments control spending on amounts
331 committed prior to the actual invoicing and payment of services. A verbal
332 commitment with a vendor and purchasing without a PO is not an acceptable
333 practice, and such transactions are voidable.
334 Generally, procurement of goods and services will require a standard City
335 agreement, which can be found on the City's Intranet. Each agreement must be
336 approved as to form by the City Attorney's Office. The PO is used to communicate
337 to a vendor the City's terms and conditions, authorize an encumbrance of City funds,
338 and serve as a contractual agreement to order goods and services. The PO is used
339 to process payment and track expenditures in the financial system. A PO shall be
340 obtained and funds encumbered for all purchases and contracts for services, goods,
341 supplies, equipment and materials exceeding $10,000. Use of purchase orders is
342 recommended for amounts smaller than $10,000 so that information regarding
343 available funds is properly reported by the City's accounting system. Purchases of
344 the same or related items in a manner that evades or appears to evade limitations of
345 a predefined limit such as a procurement card purchase limit, signature limit, or bid
346 limit, and the intentional splitting of a purchase into two or more smaller orders for
347 the purpose of evading a provision of this Policy or bidding requirement are strictly
348 prohibited.
349
350 For a PO to be issued, the requester shall first submit a copy of the Contract
351 Transmittal Form with attachments and purchase requisition to the City Clerk. The
352 requisition must be signed by the Department Head and Project Manager to
353 acknowledge the purchase.
354
355
356 Change Orders/Modifications to an Original Purchase Order
357
358 1. Change order/modification approvals to a PO are to be authorized by the
359 designated signature authority as defined in this Policy.
360
361 The amount to be approved is not a single change order, but rather, the cumulative
362 total of the original PO plus all subsequent change orders, which shall be authorized
363 by the designated signature authority as defined in this Policy. A change order request
364 must show all subsequent amounts approved on the Purchase Order Modification
365 Form (see Appendix B), the change order amount requested and the cumulative total.
366 F. Signature Authorization within Departments
367
368 1. Each Department Head shall complete and forward to the Finance Department a
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ATTACHMENT 13
369 Signature Authorization form, identifying those employees approved by the
370 Department Head to sign off on various financial and other administrative
371 documents. The form shall be developed by the Finance Department and updated
372 annually.
373
374 2. The form shall identify specific Departments, Divisions or Projects, the employee's
375 name and signature and list specific documents each employee is authorized to
376 sign. It is the Department Head's responsibility to keep the information current.
377
378 3. Any documents missing the appropriate signature(s) will be returned to the
379 originating department.
380
381 4. Only Regular or Probationary City employees are authorized to sign off on
382 documents obligating the City to expend public monies. Temporary or Volunteer
383 employees, or individuals under contract with the City, may be able to acquire
384 items but any receipts must be countersigned by an authorized employee.
385
386 5 . The number of authorized signatures should be kept to a minimum, to ensure
387 better control over departmental appropriations. In no event shall procurements
388 over $10 ,000 be approved by an employee other than the Department Head or
389 Acting Department Head.
390
391 G. Ethics
392 The purpose of this section is to provide a general code of conduct for all personnel who
393 may be engaged in the City's purchasing function. It is essential that all personnel
394 involved in the procurement process conduct themselves in a manner that maintains
395 impartiality and complete objectivity, to meet the continuing scrutiny of suppliers and the
396 public. In dealings with the business community, it is necessary to exercise a strict rule of
397 professional conduct to ensure that business relations are not compromised or even have
398 the appearance of being compromised. The City's reputation for fairness and integrity in
399 dealing with vendors and others must always be maintained.
400 The following are the City's standards in ethics fo~ purchasing:
401 • To buy on the basis of value, recognizing that value represents a combination
402 of quality, service and price which assures the greatest economy to the City.
403 • To recognize that permanent business relationships should be established on
404 the basis of honesty and fair dealings .
405 • To be courteous and considerate in all City dealings.
406 • To be prompt in all appointments and to negotiate with reasonable speed.
407 • To avoid statements that might injure or discredit legitimate vendors and to
408 avoid disclosure of confidential information that might give an unfair advantage
409 in a competitive business transaction .
41 O • To recognize that character is an important asset in commerce and should be
411 given major consideration in the selection of sources of goods or services.
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412 • To adjust claims and settle disputes on the basis of facts and fairness.
413 • To decline politely any gratuity, rebates, kickbacks, accommodation, or other
414 unlawful consideration from any one supplier, vendor, or firm with whom the
415 City is currently doing or could potentially do business. (See also the Fair
416 Political Practices Commission guidelines in this policy.) All decisions and
417 actions regarding procurement should be based upon proper business
418 considerations, and purchasing decisions should not be influenced in any way
419 by personal obligations.
420 • To avoid the appearance of impropriety by declining to participate in the
421 selection process when there is a personal relationship with a person or
422 business entity seeking a contract with the City or where there is a personal
423 financial interest in the purchase or contract.
424 •
425 Fair Political Practices Commission (FPPC) Gift Disclosures and Prohibitions
426 The purpose of this section is to highlight FPPC regulations regarding gifts for all
427 personnel who may be engaged in the City's purchasing function, hold the office of a public
428 official or designated in the City's conflict of interest code. It is essential that all personnel
429 involved in dealings with the business community exercise a strict rule of professional
430 conduct and abide by FPPC regulations when offered a "gift."
431 Per the FPPC manual ; a "gift" is any payment or other benefit provided to you that confers
432 a personal benefit for which you do not provide goods or services of equal or greater
433 value. A gift includes a rebate or discount in the price of anything of value unless the
434 rebate or discount is made in the regular course of business to members of the public
435 (Government Code Section 82028).
436 Except as discussed below, you have "received" or "accepted" a gift when you know that
437 you have actual possession of the gift or when you take any action exercising direction or
438 control over the gift, including discarding the gift or turning it over to another person (FPPC
439 Regulation 18941 ).
440 This overview of the Fair Political Practices Commission highlights provisions of the
441 California Political Reform Act; however, you should not rely on this alone to ensure
442 compliance with the Act. If you have questions, consult the Act and FPPC Regulations, the
443 City Clerk or legal counsel , or call the FPPC's toll-free help line at 1-866-275-3772. Other
444 regulations and important information can be found at the FPPC website,
445 www.fppc.ca .gov.
446
447 Handbooks prepared by the California Fair Political Practices Commission can also be
448 downloaded from the FPPC website. The manuals used in the preparation of this
449 overview are:
450
451 • Your Duty to File : http://www.fppc .ca .gov/library/seibook9-04.pdf
452 • The Limitations and Restrictions on Gifts , Honoraria, Travel
453 and Loans : http://www.fppc.ca.gov/factsheets/qiftlocal.pdf
454 • FPPC Form 700: http)/www.fppc.ca .gov/forms/700-06 -07/Form700-06-07 .pdf
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455 City Gift Acceptance Policy
456
457 Per Administrative Policy 207, City employees shall not accept gifts from the public or
458 from private individuals with whom the City does business. It is the responsibility of the
459 employee to return any gift delivered to them and to notify the City Manager's Office of
460 such action. Acceptance of any unauthorized gift shall subject an employee to
461 disciplinary action.
462
463 This general prohibition does not include gifts such as cookies and candies as long as
464 such relatively inexpensive expressions of appreciation are placed on a public counter for
465 everyone to enjoy. The City Manager's Office shall be promptly notified so an appropriate
466 letter of thanks can be sent.
467
468 H. Emergency Purchases
469
470 The City Manager may authorize the purchase of goods, supplies, equipment,
471 materials, and services without following the standard purchasing procedures (i.e.
472 competitive bidding) where he or she deems that an emergency exists and the public
473 health, safety or welfare of the community would be affected. All emergency purchases
474 that would otherwise require City Council approval must be submitted to the City
475 Council for ratification at the next regular City Council meeting after the purchase is
476 authorized. The City Manager must declare the need for an emergency purchase
477 using the Emergency Purchase Authorization form. This form can be found on the
478 City's Intranet and is included in the Appendix. The originator of the form should
479 describe the emergency, including its location, in the sections provided. The estimated
480 cost of the goods, supplies, equipment, materials, and/or services should be provided,
481 as well as the selected vendors based on the estimated costs given. If applicable, the
482 City Manager should also indicate on the Emergency Purchase Authorization form,
483 the date of the next City Council meeting at which time the emergency purchase can
484 be ratified.
485
486 After the Department Head of the originating department signs the form, the
487 Department Head will select the vendors to complete the necessary work. If time
488 permits and the duration of the work shall last longer than seven days, the originating
489 department will prepare two original contracts and obtain the selected vendor's
490 signatures . If time is of the essence, then a signed proposal is sufficient to submit for
491 City Council ratification, if City Council ratification is required as provided below. The
492 Department Head then submits the required requisitions, Emergency Purchase
493 Authorization form with the Department Head's signature, and the completed
494 contracts, if applicable, to the Finance Department. The Department Head shall issue
495 the notice to proceed for work up to a known or estimated amount that does not exceed
496 $25,000. The City Manager shall issue the notice to proceed for work up to a known
497 or estimated amount that exceeds $25,000 . As emergency purchases are exempted
498 from competitive bidding, no Bid Recap form is required. The Finance Department will
499 print the PO and mail it along with one original contract to the vendor.
500
501 If the emergency purchase would have otherwise required formal or informal bidding
502 procedures, irrespective of the dollar thresholds below, the originating department
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503 must obtain City Council ratification of the purchase at the next regularly scheduled
504 meeting. The originating department will prepare the Agenda Report requesting City
505 Council ratification and attach a copy of the Emergency Purchase Authorization form.
506 The originating department should retain a copy of the Emergency Purchase
507 Authorization form for its records. For Public Works projects, the originating
508 department shall comply with the requirements set forth in Section 22050 of the Public
509 Contracts Code.
510 I. Recycled Products
511
512 Solid waste management poses an increasingly difficult problem as America's
513 consumption increases and landfill space becomes scarce. As part of an effort to address
514 this issue, the City of San Juan Capistrano has developed a recycling program, both for
515 City residents, businesses, and for City employees. It is the intent of the City Council that
516 the City of San Juan Capistrano takes a leadership role not only in recycling its waste
517 products but in the purchase of recycled products for use in the delivery of City services.
518 It is the purpose of this policy to provide direction in the procurement and use of recycled
519 products.
520
521 Policy
522
523 1. It is the policy of the City of San Juan Capistrano to purchase and use recycled
524 products whenever possible to the extent that such use does not negatively impact
525 health, safety, or operational efficiency.
526 2. Purchase of products which cannot be recycled or reused is strongly discouraged.
527 3. Recycled paper shall be purchased and used in all copy machines which will accept
528 it, and shall also be used for printing purposes. City staff will encourage the copier
529 industry to develop high-speed copiers which will accept recycled paper.
530 4. City departments and divisions shall use for their stationery and envelopes, recycled
531 paper which includes both secondary and post-consumer recycled content. The
532 percentages of post-consumer and secondary content shall be spelled out in the bid
533 specifications for letterhead and other paper grades based on industry availability. A
534 recycled paper designation shall be printed on all City stationery.
535 5. City departments shall examine their purchasing specifications and, where feasible,
536 restructure them to require the use of products which incorporate recycled materials
537 in their manufacture.
538 6. A five (5%) or greater price preference shall be given to recycled products, reusable
539 products offered as alternatives to disposable products, and products designed to be
540 recycled where they are offered as alternatives to non-recyclable products. Purchase
541 of products which cannot be recycled or reused is strongly discouraged. (See
542 Municipal Code Section 3-4.403. Recycled Products). The preference percentage
543 shall be based on the lowest bid or price quoted by the supplier or suppli'ers offering
544 non-recycled products.
545 The City shall cooperate with the County of Orange, Orange County cities, and other
546 governmental agencies in the development of programs and procedures which will further
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547 this policy.
548
549 Recycled Products Definitions
550
551 Recycled material is waste and by-products that have been recovered or diverted
552 from the solid waste stream and that can be utilized in place of raw material in the
553 manufacturing of a product. Recycled materials may consist of materials derived
554 from post-consumer waste, manufacturing waste , industrial scrap, agricultural waste
555 and other items, all of which can be used in the manufacture of new products.
556
557 Pre-consumer material or by-products are generated after the manufacture of a
558 product is completed, but before the product has reached the end-use consumer.
559 Examples of pre-consumer recovered materials include obsolete inventories of
560 finished goods, rejected unused stock, and paper wastes generated during printing,
561 cutting and other converting operations.
562
563 Post-consumer recycled materials are finished products that have served the
564 intended use and would normally be disposed of as solid waste. Examples of post-
565 consumer recovered materials include old newspapers, office paper, yard waste,
566 steel, glass, aluminum cans, plastic bottles, oil, asphalt, concrete and tires.
567
568 Criteria for Selecting Recycled Materials for Purchase
569
570 If a decision has been made to purchase recycled materials, the recommended
571 products should contain, in order of preference, the highest percentage of recycled
572 content of post-consumer recovered material available in the marketplace.
573
574 Recycled products should also be expected to perform as well as non-recycled
575 products, to be purchased at a reasonable price and to be available within a
576 reasonable time period. In addition to the recovered material content of a product,
577 important criteria in selecting products should also be the ability of the product and
578 its packaging to be reused, reconditioned for use or recycled through existing
579 recycled collection programs. Preferred products and packaging are those designed
580 to minimize waste and toxic by-products in their manufacture, use, and disposal.
581
582 Purchase of Recycled Products
583
584 Whenever printed recycled paper products are purchased, the standard phrase
585 "Printed on Recycled Paper" and/or the standard recycle logo should be included on
586 the printed product, thereby promoting the use of post-consumer content.
587 J. Energy Efficient Products
588
589 The City of San Juan Capistrano endeavors to purchase durable, low maintenance
590 energy-efficient equipment and products to reduce greenhouse gas emissions and to
59 l lower the City's cost of electricity consumption.
592 Policy
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593 1. All Departments are encouraged to purchase energy-consuming equipment that
594 meets either Energy Star specifications or achieve performance in the upper 25%
595 of energy-effic iency, based on criteria established by the U.S. Department of
596 Energy. Specific "Energy Star" labeled products are identified on the following
597 website: www.energystar.gov . These products must also meet user requirements
598 for quality, performance, and durability.
599 2. The equipment categories covered under this policy include , but are not limited to :
600 • Office equipment, heating and cooling equipment
601 • Exit signs
602 • Lighting
603 • Appliances
604 • Other commercial products that consume electricity
605
606 2. In addition, employees will use appliances and equipment in a manner that
607 optimizes their energy efficiency features by following manufacturer's instructions.
608 To accompl ish this policy, City employees will be educated about the economic
609 savings and environmental benefits of Energy Star compliant equipment, as well
61 O as other practices that minimize energy use.
611
612 K. Local Bidders
613
614 It is the intent of the City Council to encourage uniform bidding to obtain full and open
615 market competition . However, the City Council also recognizes that promoting the
616 economic viability of the City's local businesses is critical to economic health of the city in
617 that local businesses provide tax revenue to the city and jobs for local inhabitants. In an
618 effort to support competitive bidding and the City 's local vendors , staff is encouraged to
619 obtain bids from local qualified vendors whenever possible.
620
621 L. New Vendor Procedure
622
623 The Finance Department requires every new vendor to complete a Business License
624 Application and W9 form. The Vendor Approval Application (see Appendix B) gives
625 the vendor the opportunity to give the City correct information such as address ,
626 phone and fax numbers, Taxpayer Identification number, sales representative or
627 contact name and references . It also allows the vendor to indicate the specific
628 commodities on which they wish to bid. Should a department anticipate using a new
629 resource, the vendor should complete the Vendor Approval Application and the W9
6 3 0 form and forward to the Finance Department. The Vendor Approval Application Form
631 and the W9 Form are available from the Finance Department, or they can be
632 downloaded from the City of San Juan Capistrano's web site. Upon receiving the
633 completed forms, the Finance Department will set up the new vendor in the financial
634 system.
63 5
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ATTACHMENT 13
636 SECTION II -MINOR PURCHASES
637 Minor purchases do not require competitive bids. The value of a minor purchase is
638 $10,000 or less. This value represents a one-time, per fiscal year purchase, or the
639 total value of multiple purchases of the same item or group of similar items throughout
640 the fiscal year. Minor Purchase Example : One Air Compressor @ $2,200. A minor
641 purchase may be a single item or a group of like items that relate to one another, e.g.
642 sprinkler bodies and sprinkler heads, waterlines, backflow devices , fencing, etc., or as
643 otherwise determined by the Department Head. Agreements to purchase, on an
644 annual basis, (annual purchase order or other form of agreement) of an item or group
645 of items that relate to one another, fall into two categories:
646 • An annual fiscal year total value for the product or non-professional service of
647 $10,000 or less will be considered a minor purchase.
648 • An annual fiscal year total value for the product or service exceeding $10,000
649 will require competitive quotes for award per this policy and are not considered
650 minor purchases.
651 A. Petty Cash
652 An employee may get reimbursed for authorized expenses up to a maximum of $50.00.
653 Eligible expenses are such items as emergency supplies and tools not readily available,
654 or an approved meeting attendance. Amounts of reimbursement will be charged to the
655 appropriate departmental account. Departments shall make deliberate effort to use City
656 issued credit cards where possible in order to minimize petty cash disbursements.
657
658 Procedure for Petty Cash Reimbursement
659
660 1. Upon purchase of an item, a receipt should be retained by the employee.
661
662 2. A Petty Cash Request form (form available from the Finance Department) should be
663 filled out by the employee specifying:
664
665 • Name of employee
666 • Date of purchase
667 • Amount of reimbursement for the item purchased
668 • Account number to which the amount should be charged
669 • Purpose of the reimbursement
670 • Approval by the Department Head or th.eir designee
671
672 Petty Cash Request forms may be obtained from the Finance Department.
673
674 3. Each department should designate in writing, in advance, one or more persons who
675 have authority to approve Petty Cash Requests. The Department Head or their
676 designee must sign approval of the Petty Cash Request form prior to submittal for
677 reimbursement.
678
679 4. The completed Petty Cash Request form and the receipt should be submitted to the
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ATTACHMENT 13
680 Cashier for prompt reimbursement.
681
682 5. Requests for reimbursement must be submitted within five (5) working days from the
683 date of purchase.
684
685 6. Mileage requests should be submitted monthly.
686
687 8. Credit or Procurement Cards
688 City issued credit or procurement cards are provided as a method of purchasing goods
689 similar to the process for a check request or petty cash reimbursement and are used to
690 procure budgeted low value items. The purchase order (PO) is the primary and
691 preferable procurement method and serves as the main source of encumbering and
692 procuring services, goods and materials and is recommended for all purchases. Credit
693 card purchases may include, but are not limited to, meals, meeting attendance, travel
694 arrangements, etc . The cardholder and cardholder's manager are responsible for
695 proper use of the credit or procurement card . The cardholder's manager is to designate
696 original and subsequent spending limits and types of authorized purchases. It is in
697 the City's best interest to pay the credit/procurement card billing in a timely manner
698 and avoid any interest expense. When cardholders render a timely accounting of their
699 purchases along with the receipts, the matching of the itemized billing to the
700 cardholder's records results in a time-saving process. This can minimize the amount
701 of time spent administering the account.
702 1. Use of Credit and Procurement Cards
703
704 A Division Manager or Department Head shall determine which City staff members
705 shall be assigned credit or procurement cards . The credit and procurement cards may
706 only be used for budgeted City-related business expenses. Original and subsequent
707 single and monthly transaction limits are to be authorized by the cardholder's manager
708 and in no case shall exceed $5,000 unless authorized by the City Manager. Once
709 such cards are assigned, staff shall abide by the policy set forth herein. The Finance
710 Department policies and procedures shall be adhered to according to this policy.
711 These cards may only be used by the employees they are issued to .
712
713 2. Purchases of Services
714
715 Services are typically not to be paid for with a credit or procurement card. On-site
716 services are not authorized to be ordered and paid for utilizing a credit card. Any
717 variance from this rule must be in writing from the Chief Financial Officer. Offsite
718 minor service purchases, such as printing, blade sharpening, picture framing, etc.
719 are permitted as long as the vendor is legally established as an incorporated
720 business entity. Non-Incorporated service vendors will require the use of a Purchase
721 Order and it shall be the responsibility of the Finance Department to identify non-
722 incorporated business entities.
723 3. Procedure for Payment of Credit or Procurement Cards
724
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ATTACHMENT 13
725 a. Upon purchase of goods or services, a receipt will be retained by the employee
726 detailing the goods and services purchased.
727
728 b. Where not otherwise evident, the employee shall indicate on the receipt how the
729 expenditure pertains to bonafide City business.
730
731 c. Each employee will receive a monthly credit card statement from the issuing bank
732 and must approve the charges as well as attach the appropriate receipts and return
733 it to the Finance Department within five working days. Goods or services ordered
734 by phone may not have receipts but should provide a brief written explanation of
735 the expenditure.
736
737 d. Failure to provide receipts or other misuse of City credit cards can result in
738 disciplinary actions as appropriate.
739 C. Check Requests
740
741 Check requests may be issued for purchases of $10,000 or less, or where a PO would
742 not be expedient. Check requests in excess of $10,000 are subject to approval by the
743 City Manager. The Finance Department may issue "off-cycle" checks under
744 circumstances where time is of the essence or for emergency purchases. As a general
745 rule, depqrtments are to plan their activities to preclude the necessity to request an "off-
746 cycle" check.
747
748 SECTION Ill -GOODS. SUPPLIES, EQUIPMENT, AND MATERIALS
749 "Goods, supplies, equipment and materials" means fixed, movable, disposable, and/or
750 reusable products, commodities, or items used by the City, including, but not limited to,
751 office supplies, program supplies, subscriptions, vehicles, fuel and vehicle supplies, tools,
752 computers, computer hardware and software, landscape and irrigation supplies, power
753 tools, janitorial supplies, office furniture, and fixtures, which shall be furnished to or used
754 by any department. In instances where goods and services are purchased together from
755 one vendor, this section shall only apply if the predominant portion of the purchase is
756 goods. For example, a purchase of equipment for $1,000 with a $300 installation fee
757 would be covered under this section of the policy. A repair of equipment for $1,000 in
758 labor and $300 in parts would be covered under Section IV -Service Contracts.
759
760 Generally, authority is established by the dollar amount of the purchase. There are three
761 levels of authority for normal purchases: DepartmenUDivision/Project Manager Award,
762 City Manager Award, and City Council Award. The following matrix provides purchasing
763 procedures when purchasing goods, supplies, equipment and materials .. The department
764 must state in the Bid Recap Form how the quotes obtained for the supplies, equipment,
765 and material substantially conform to the required specifications.
766
767 For the thresholds below, the term "contract" is not limited to formal contracts and includes
768 all procurement with a vendor for a given scope of work as defined by the procurement
769 action. Work shall not be split into separate procurement actions with the sole intent of
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ATTACHMENT 13
770 circumventing the thresholds below. However, similar work with the same vendor for
771 different projects may be considered separate procurement acts for the purposes of
772 applying the thresholds below.
773
774 For amendments to existing agreements, the thresholds below take into account the
775 cumulative total of all of the following: the original amount of the agreement, all agreement
776 amendments/change orders to date, plus the anticipated agreement/change order.
777
$10,000 or less •
•
•
Purchases over •
$10,000 up to
$25,000 •
•
•
•
Purchases over •
$25,000 up to
$45,000 •
•
•
•
Purchases over •
$45,000
•
•
•
•
•
864426.1
No bidding or quotes required .
Purchase Order is recommended, but not required .
Department Head or designee signs invoice and
submits to the Finance Department.
City Manager approves original purchase and change
orders up to a cumulative amount of $25,000.
Follow informal quote procedures (See Section VII.
Paragraph E).
Department selects vendor .
Department submits requisition with Department
Head signature and bid recap to Finance
Department.
Finance Department prints and mails Purchase Order
to vendor.
City Manager approves original purchase and change
orders up to a cumulative amount of $45,000.
Follow Formal Request for Proposal bidding
procedures (See Section VII. Paragraph F).
Department selects vendor .
Department submits requisition with Department
Head signature and bid recap to Finance
Department.
Finance Department prints and mails Purchase Order
to vendor.
City Council approves original purchase and change
orders that would result in cumulative value of
Purchase Order (change orders plus original
contract) to exceed $45,000.
Follow Request for Proposal bidding procedures (See
Section VII. Paragraph F).
Department prepares formal bid specifications .
Department prepares Agenda Report requesting City
Council action.
City Council awards bid/contract.
Department prepares two contract documents and
obtains vendor signatures.
19
ATTACHMENT 13
778
• Department prepares Contract Transmittal Form with
attachments, purchase requisition and submits to the
City Clerk.
• City Clerk signs Contract Transmittal Form and
forwards it along with requisition to Finance
Department.
• Finance Department prints and mails Purchase Order
to vendor.
779 SECTION IV -SERVICE CONTRACTS (PROFESSIONAL AND MAINTENANCE)
780
781 Professional services include those services provided by any specially trained, educated,
782 experienced or licensed person, company, corporation, or firm, and which involve the
783 exercise of discretion and independent judgment together with an advanced or
784 specialized knowledge, expertise, training, or unique skills gained by formal studies or
785 experience. Contracts negotiated for professional services must be based on
786 demonstrated competence, professional qualifications for the services required,
787 availability, and fair and reasonable cost. Consultant services include services that are
788 of an advisory nature, which involve the consultant providing a recommended course of
789 action based on Professional expertise, and results in an end product in the form of a
790 written transmittal of information.
791
792 Maintenance services include the furnishing of labor, time, or effort by a contractor
793 including, but not limited to (a) routine, recurring, and usual work for the preservation or
794 protection of a publicly-owned, or publicly-operated facility for intended purposes; (b)
795 minor repainting; (c) resurfacing of streets and highways; (d) landscape maintenance,
796 including mowing, watering, trimming, pruning, planting, replacement of plants, and
797 servicing of irrigation and sprinkler systems; and (e) work performed to keep, operate and
798 maintain publicly-owned water or waste disposal systems.
799
800 For the purposes of this policy, professional and maintenance services contracts will
801 include, but not be limited to, a wide variety of expertise and specialized crafts. Examples
802 include:
803
804 Accounting
805 Affordable Housing
806 Alarm Systems
807 Auditing
808 Archaeology
809 Architecture*
810 Building/Engineering Plan Check/Inspection
811 Cable TV
812 Community Planning and Development
813 Computer Management
814 Cultural Resource Management (Archaeology, History)
815 Construction Management*
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ATTACHMENT 13
816 Document Processing Services
817 Engineering including Civil, Mechanical, Electrical, Structural, and Seismic*
818 Environmental (CEQA/NEPA services)*
819 Finance
820 Fleet Maintenance
821 Entertainment
822 Equipment Rental
823 Geotechnical
824 Ground Water Recovery
825 Human Resources
826 Information Technology
827 Inspection Services
828 Janitorial
829 Landscape Architecture/Arboriculture*
830 Legal Consultants
831 Mapping, Maintenance and Refurbishing of Public Facilities and Lands
832 Material testing and laboratory work
833 Payroll
834 Pest Control
835 Sound (Noise) Attenuation
836 Security
83 7 Surveying*
838 Technical Assistance
839 Traffic and Related Equipment and Service
840 Uniforms
841 Any other professional service as deemed appropriate by the City Manager.
842
843 * Subject to heightened approval requirement under Government Code Section
844 4526. The City cannot award contracts for these specialized services unless the
845 award is based on the "demonstrated competence and qualification for these
846 type of services at fair and reasonable prices."
847 When contracting for professional services, the formal Request for Proposals or Request
848 for Qualifications (RFP/RFQ) procedures (see Section VI., Paragraph F) as specified in
849 Section VI., Paragraph F of this Policy shall be utilized where applicable and to the
850 maximum extent possible, as time and circumstance allow. The RFP/RFQ procedure is
851 required for all Professional and Maintenance service contracts over $25,000 (See
852 Exceptions to Competitive Bidding Requirements in Section VII). For all service contracts,
853 the standard "Professional Services Agreement" shall be used and a separate Scope of
854 Work attached to each Agreement. The following matrix provides purchasing procedures
855 when contracting for Professional and Maintenance services.
856
857
858 Standard Professional and Maintenance Service Contracts (includes contracts for
859 Fee Recovery Vendors 1)
860
861 For the thresholds below, the term "contract" is not limited to formal contracts and includes
1 See Section VI for definition of Fee Recovery Vendors.
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ATTACHMENT 13
862 all procurement with a vendor for a given scope of work as defined by the procurement
863 action. Work shall not be split into separate procurement actions with the sole intent of
864 circumventing the thresholds below. However, similar work with the same vendor for
865 different projects may be considered separate procurement acts for the purposes of
866 applying the thresholds below.
867
868 For amendments to existing agreements, the thresholds below take into account the
86 9 cumulative total of all of the following : the original amount of the agreement, all agreement
870 amendments/change orders to date, plus the anticipated agreemenUchange order.
871
872
$10,000 or less •
•
•
Contracts over •
$10,000 up to
$25,000
•
•
•
•
•
•
Contracts over •
$25,000 up to
$45 ,000
•
•
•
•
•
864426 I
No bidding or quotes required .
Purchase Order is recommended, but not required .
Department Head or designee signs invoice and
submits to the Finance Department.
City Manager approves contracts and change orders
up to a cumulative value of $25 ,000 (change orders
plus original contract).
Follow informal solicitation of qualifications or
informal quotes procedures (See Section VII.,
Paragraph C and Section VII., Paragraph E).
Department selects vendor .
Department prepares two contract documents and
obtains vendor signatures.
Department submits to City Clerk Contract
Transmittal Form with attachments and purchase
requisition signed by Department Head.
City Clerk signs Contract Transmittal Form and
forwards it along with requisition to Finance
Department.
Finance Department prints and mails Purchase Order
to vendor.
City Manager approves contracts and change orders
up to a cumulative value of $45 ,000 (change orders
plus original contract).
Follow formal RFP/RFQ bidding procedures (See
Section VII. Paragraph D).
Department selects vendor .
Department prepares two contract documents and
obtains vendor signatures.
Department submits to City Clerk Contract
Transmittal Form with attachments and purchase
requisition signed by Department Head.
City Clerk signs Contract Transmittal Form and
forwards it alonQ with requisition to Finance
22
ATTACHMENT 13
Department.
• Finance Department prints and mails Purchase Order
to vendor.
Contracts over • City Council approves contracts and change orders
$45,000 that would result in cumulative value (change orders
plus original contract) exceeding $45,000.
• Follow formal RFP/RFQ bidding procedures (See
Section VII. Paragraph D).
• Department prepares Agenda Report requesting City
Council action.
• City Council awards bid/contract.
• Department prepares two contract documents and
obtains vendor signatures.
• Department prepares Contract Transmittal Form and
submits to the City Clerk.
• Department submits to City Clerk Contract
Transmittal Form with attachments and purchase
requisition signed by Department Head.
• City Clerk signs Contract Transmittal Form and
forwards it with requisition to Finance Department.
• Finance Department prints and mails Purchase Order
to vendor.
873 * For Professional Services associated with Public Works projects. including, but not
874 limited to , construction management. design , or study projects. where a Professional
875 Services Agreement is executed, an Amendment to the Professional Services Agreement
876 is required if the projected final cost exceeds the original contract amount. Limited to
877 Professional Services for Public Works projects, the City Manager shall be authorized to
878 negotiate and execute, without City Council action, one or more Change Orders to the
879 Professional Services Agreement, provided that the amount is within the contract
880 contingency and project budget, and the Change Order does not exceed 10% of the
881 original contract amount or $50,000, whichever is less.
882
883 SECTION V -PUBLIC WORKS PROJECTS
884 Public Works projects include construction, reconstruction, erection, alteration,
885 renovation, improvement, demolition, and repair work involving any facility owned, leased,
886 or operated by the City as defined in California Public Contract Code section 22002, or
887 as subsequently amended. The definition also includes painting/ repainting, plumbing,
888 electrical wiring, and/or other trade work for any facility owned, leased or operated by the
889 City. Construction, erection, improvement, or repair of dams, reservoirs, and electrical
890 transmission lines of 230,000 volts and higher that are owned by the City, are also
891 considered a public project.
892 A public project does not include maintenance work, consisting of routine, recurring, and
893 usual work for the preservation or protection of facilities owned or operated by the City,
864426 .1
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ATTACHMENT 13
894 including minor repainting. Street and highways resurfacing at less than one inch (1")
895 deep, landscape maintenance (mowing, watering, trimming, pruning, planting,
896 replacement of plants, and servicing of irrigation and sprinkler systems) are not a public
897 project and contracts for services related to this maintenance work is covered under
898 Section IV -Service Contracts.
899 It is the City of San Juan Capistrano's policy to follow the Uniform Construction Cost
900 Accounting Procedures (UCCAP) for all Public Projects, as set forth in the Public Contract
901 Code Article 2, commencing with Section 22010 (see Appendix A). Also, see City
902 Resolution 06-09-19-04 as approved on September 19, 2006 in Appendix A. It is also the
903 City of San Juan Capistrano's policy to adopt the purchasing limits and policies as set
904 forth in Public Contract Code Sections 22030 to 22045, as amended (See Appendix A).
905 In the event there is an inconsistency between the policies stated herein and Public
906 Contract Code Sections 22010, et seq., the provisions of the Public Contract Code
907 Sections 22010, et seq., shall prevail.
908 If an informal bid result for the lowest and most qualified bidder results in a bid over
909 $200,000, the project may proceed with the informal bid process, and the City Council
910 must approve such an award by four-fifths vote consistent with Public Contract Code
911 Section 22034. If an informal bid result for the lowest and most qualified bidder is over
912 $212,500, the project must be formally re-bid for City Council approval. The following
913 matrix provides purchasing procedures when contracting for Public Construction projects.
914
Contracts up to
$45,000
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• City Manager approves contracts and change orders
that would result in cumulative value (change orders
plus original contract) not to exceed $45,000. The
Department Head is authorized to issue change
orders for changes or additions to the original scope
of work that result in up to 10% aggregate change in
the contract price, provided the amount is within the
contract contingency and project budget.
• City Manager awards and signs contract.
• Department prepares two contract documents and
obtains vendor signatures.
• Department submits to City Clerk Contract
Transmittal Form with attachments and purchase
requisition signed by Department Head.
• City Clerk signs Contract Transmittal Form and
forwards it along with requisition to Finance
Department.
• Finance Department prints and mails Purchase
Order to vendor.
24
ATTACHMENT 13
Contracts over • City Council approves contracts and change orders
$45,000 and up to that would result in cumulative value (change orders
$60,000 plus original contract) not to exceed $60,000. The
City Manager is authorized to issue change orders
for changes or additions to the original scope of work
that result in up to 10% aggregate change in the
contract price, provided the amount is within the
contract contingency and project budget.
• City Council adopts plans, specifications, and
working details.
• Department prepares Agenda Report requesting City
Council action.
• Department prepares two contract documents and
obtains vendor signatures.
• City Council awards bid/contract.
• Department submits to City Clerk Contract
Transmittal Form with attachments and purchase
requisition signed by Department Head.
• City Clerk signs Contract Transmittal Form and
forwards it along with requisition to Finance
Department.
• Finance Department prints and mails Purchase
Order to vendor.
Contracts over • City Council approves contracts and change orders
$60,000 and up to that would result in cumulative value (change orders
$200,0002 plus original contract) not to exceed $200,000. The
City Manager is authorized to issue change orders
for changes or additions to the original scope of work
that result in up to 10% aggregate change in the
contract price provided the amount is within the
contract contingency and project budget.
• Follow informal bidding procedures (See Section VII.
Paragraph G).
• City Council adopts plans, specifications, and
working details.
• Department prepares Agenda Report requesting City
Council action.
• Department prepares two contract documents and
obtains vendor signatures.
• City Council awards bid/contract.
• Department submits to City Clerk Contract
2 This limit is tied to Public Contract Code Section 22032 . Any changes to limits set forth in the UPCCA are hereby adopted as part of
this policy.
864426 1
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ATTACHMENT 13
Transmittal Form with attachments and purchase
requisition signed by Department Head.
• City Clerk signs Contract Transmittal Form and
forwards it along with requisition to Finance
Department.
• Finance Department prints and mails Purchase
Order to vendor.
Contracts over • City Coun~il approves contracts exceeding $200,000 .
$200,000 The City Manager is authorized to issue change
orders for changes or additions to the original scope
of work that result in up to 10% aggregate change in
contract price provided the amount is within the
contract contingency and project budget.
• Follow formal bidding procedures (See Section VI.
Paragraph H).
• City Council adopts plans , specifications , and
working details.
• Department prepares Agenda Report requesting City
Council action.
• Department prepares two contract documents and
obtains vendor signatures.
• City Council awards bid/contract.
• Department submits to City Clerk Contract
Transmittal Form with attachments and purchase
requisition signed by Department Head.
• City Clerk signs Contract Transmittal Form and
forwards it along with requisition to Finance
Department.
• Finance Department prints and mails Purchase
Order to vendor.
915
916 Additionally, for all Public Works contracts (for a "public works" as defined in Labor Codes
917 1720 and 1720.3), the following legal requirements shall be incorporated into all
918 procurements:
919 • For contracts over one thousand dollars ($1,000), the contract shall require that
920 prevailing wage be paid (not applicable to janitorial services).
921 • For contracts over $25,000, the contractor that is awarded a public works contract
922 shall, before commencement of work, file a payment bond with and approved by
923 the Finance Department that is no less than 100 percent of the total amount due
924 under the contract, and all bids for such contracts shall state that such payment
925 bond is required .
926
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ATTACHMENT 13
927 Prequalification of Contractors Seeking To Bid on Public Works Projects
928 In accordance with the provisions of California Public Contract Code section 20101, the
929 City may establish a program to pre-qualify contractors and subcontractors to bid on the
930 City's Public Works projects.
931
932 SECTION VI -CHANGE ORDERS FOR PUBLIC WORKS PROJECTS
933
934 These guidelines shall govern the process and administration of Public Works project
935 contracts including change orders, time extensions, and budgetary amendments relating
936 to Capital Improvement Projects. Implementation of these guidelines will allow the City
93 7 to implement Public Works projects and Capital Improvement projects in a timely fashion.
938
939 For Change Orders for Public Works Contracts, all of the following shall apply:
940
941 1. The total of all Change Orders approved without prior City Council Authorization
942 shall not exceed the project contingency as established by the City Council at the
943 time of the award of bid (typically 10% above the approved bid amount).
944
945 2. The City Manager may, at her/his discretion, bring any Change Order before the
946 City Council.
947
948 3. During the construction period, pursuant to a contract awarded by the City Council,
949 the City Manager is authorized to negotiate and execute without City Council
950 action, one or more Change Orders provided that they do not exceed 10% of the
951 original contract provided the amount is within the contract contingency and project
952 budget. In no case shall this change order authority exceed $100,000.
953
954 4. The Project Manager is responsible to process required paperwork to modify the
955 Contract to reflect the approved change order(s) and Contract Amendments.
956
957 5. Any deviations from the policy must be reviewed and approved by the City Council.
958
959 TIME EXTENSIONS
960
961 1. The City Manager may approve any time extension required that is caused by
962 weather delays and/or material availability delays.
963
964
965
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ATTACHMENT 13
966 SECTION VII -BIDDING PROCEDURES
967
968 A. Introduction to Bidding Procedures
969 Overview
970 This policy requires that certain bidding procedures be followed when purchasing goods,
971 supplies, equipment and materials; contracting for professional and maintenance
972 services ; and contracting for non-public works and Public Works projects. The competitive
973 bidding process ensures that the City will obtain the best combination of pricing, quality,
974 service, and availability of products and services. Splitting a purchase to circumvent the
975 bidding limits is specifically prohibited by the City's Municipal Code and by State law.
976
977 The total dollar value of the goods, services, or projects determines whether formal or
978 informal bidding procedures must be followed, as shown below. In certain instances,
979 bidding procedures may not be required.
980
981 Goods, Supplies, Equipment and Materials and Non-Public Works Projects
982 Contracts
983 • No Bidding Required: Less than $10,000
984 • Informal Quote: $10,000 -$25,000
985 • Formal Bidding (RFP): Over $25,000
986
987 Professional and Maintenance Services Contracts
988 • No Bidding Required: Less than $10,000
989 • Informal Quote: Contracts up to $25,000
990 • Formal RFP/RFQ Bidding : Contracts over $25,000
991
992 Public Projects
993 • No Bidding Required: Contracts up to $60,000
994 • Informal Bidding: Contracts $60,000 to $200,000
995 • Formal Bidding : Contracts over $200,000
996
997 The Contract Transmittal Form (See Appendix B) requires the identification of the project,
998 funding sources, contract type , insurance and bond requirements, and sets forth the
999 type(s) of publications required, including whether the City Clerk needs to publish a Notice
1000 Inviting Formal Bids . In some instances , the City Manager may require City Council
1001 approval prior to advertising.
1002
1003 Documenting the Bid Process
I 004 Bidding procedures must always be documented. The originating department is
I 005 responsible for completing a Bid Recap form for all purchases and contracts of $10,000
1006 or more. The Bid Recap form identifies the vendors who have been contacted, the name
1007 of the successful bidder, the amount of the contract, and the reason(s) for the successful
1008 bidder's selection .
1009
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ATTACHMENT 13
1o1 o B. Qualified Bidders List
1O11 In some instances it is in the best interest of the City to have current ongoing contracts
1O12 with multiple consultants for the same or very similar services (i.e. services that can be
1013 defined as to scope of work but not as to required events such as contract planning
1014 services, soils testing, contract building maintenance services, etc.). These services
I 015 would best be handled by establishing a qualified bidders list and by entering into an
l 016 ongoing professional services contract when the service is required .
1017
1O18 There are generally three categories of contractors that are placed on the Qualified
1O19 Bidders List. The first is maintenance contractors that provide services with recurring
1020 and usual work for the preservation or protection of any publicly owned or publicly
l 021 operated facility for its intended purposes. The second is professional service
1022 contractors that are educated or licensed specialists who provide services of an advisory
1023 nature and provide recommendations for a course of action, an end product, or the
1024 transmittal of information. The third is qualified construction contractors who are
1025 called upon through an informal bidding process to perform Public Works projects
1026 pursuant to subdivision (b) of Section 22032 of the Public Contract Code (See Section VI.
1027 Paragraph E below for procedural guidance on the informal bidding process).
1028
I 029 There shall be one Qualified Bidders List (vendor, consultant and/or contractor) for
l 030 ongoing service requirements related to professional services, maintenance services,
1031 and Public Works projects, categorized by the type of product sold or work performed for
1032 use in soliciting bids. A "qualified" bidder is a bidder that demonstrates the following
1033 characteristics:
I 034 • Can provide product quality, fitness, and capacity for the required usage.
1035 • Has the ability, capacity and skill to perform the contract or provide the service
1036 required.
I 037 • Has demonstrated character, integrity, reputation, judgment, experience, and
I 038 efficiency, particularly with reference to past purchases by the City or other
1039 public agencies.
1040 • Has the ability to perform within the time required.
1041 • Has shown quality of performance and/or of products provided in previous
I 042 contracts or services with the City or other public agencies.
1043 • Can meet all insurance requirements .
1044
1045 The process for selecting qualified bidders to be placed on the Qualified Bidders List
1046 shall begin with an Informal Solicitation of Qualifications. Criteria required for the
I 047 development of an Informal Solicitation of Qualifications can be found in Section VII,
1048 Paragraph C below. For each of the three categories of service associated with the
1049 Qualified Bidders List, the City shall endeavor to obtain Statements of Qualifications
1050 (SOQ's) from a minimum of three vendors. After evaluation of the SOQ's received,
1051 qualified bidders shall be added to the Qualified Bidders List based on the
1052 considerations identified below.
1053
1054 Evaluation of SOQ's for Placement on Qualified Bidders List: The Department/Division
1055 Head or designee(s) shall select the consultants which, in their evaluation process, is the
I 056 most qualified to perform the work. The evaluation and selection process shall be based
1057 upon the following considerations:
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ATTACHMENT 13
1058
1059 1. General quality and responsiveness to the request, including but not limited to:
1060 • Responsiveness to the terms, conditions, and items of performance.
1061 • Grasp of the problem, work to be performed, and approach to be used.
1062 2 . Organization and personnel making the proposal must provide:
1063 • Evidence of good organizational and management practices.
1064 • Qualification of the personnel.
1065 • Specialized experience of the firm and its personnel relative to the required
1066 services.
1067 • References who can be contacted to verify past record of performance (i.e .,
1068 completion of a quality product in a timely manner and within budget constraints).
1069 • Previous consultant experience.
1070 • The financial condition of the firm.
I 071 • Capacity of the firm to perform the subject project within a required timeframe.
1072
I 073 3. If appropriate, the price, in any of the following formats, may be considered .
1074 • Total price and price breakdown.
1075 • Price range.
1076 • Cost schedule.
1077
1078 The Qualified Bidders List shall be approved by the City Council at least every three years.
I 079 All vendors on the Qualified Bidders List shall be reviewed and approved by the City
I 080 Manager on at least an annual basis. Vendors can be added at any time as long as the
1081 process prescribed herein for the Informal Solicitation of Qualifications is adhered to and
1082 City Council approval is obtained for any such additions. Professional Services
1083 Agreements (PSA) for qualified bidders will not be executed until selected to perform a
1084 service. At that time, and through the term of the contract, the terms of the PSA for the
1085 selected vendor will be controlling for any subsequent projects undertaken by the same
1086 or different departments. However, at the Department Head's sole discretion, a separate
1087 PSA may be entered into for the vendor to reflect project-specific terms. PSA's associated
I 088 with vendors on the Qualified Bidders List can be amended at any time and are subject
I 089 to the signature authority limits indicated in this policy. All contracts shall have a defined
1090 end date.
1091 C. Informal Solicitation of Qualifications
1092 An Informal Solicitation of Qualifications refers to the process that establishes criteria for
1093 evaluating firms that request placement on the City's Qualified Bidders List. Such firms
I 094 must submit a Statement of Qualifications (SOQ) setting forth the qualifications of
1095 members of the firm and providing any other information required by the announcement
I 096 of the project or desired service. The Department/Division shall strive to, whenever
I 097 possible, solicit at least three qualifications/proposals in writing. When it is not practical,
I 098 nor cost effective, to receive three qualifications/proposals in writing, the Department
1099 Head at his/her discretion, may choose the vendor best suited for the needs of the
1100 particular project or service category.
I 10 I
1I02 A public notice shall be advertised on the City's website and in applicable publications to
1103 obtain SOQ's from qualified service providers. It is important that the specifications are
1 I 04 accurate and comprehensive. Informal quotations must be documented to the satisfaction
864426, 1
30
ATTACHMENT 13
1105 of the City Manager or the Chief Financial Officer. Ideally, documentation should include :
1106
1107 • The name of the company.
1108 • The person giving the quote.
1109 • The date and time of the phone call.
111 O • Understanding of the required scope of services.
11 J I • Specialized experience of the firm and its personnel relative to the required
1112 services.
1113 • References who can be contacted to verify past record of performance, i.e.,
1114 completion of a quality product, in a timely manner, and within budget constraints.
1115 • The capacity of the firm to perform the subject project within a required timeframe.
1116 • Estimated price.
1117
1118 As events occur and need arises, work will be assigned to the firms/individuals on the
1119 Qualified Bidders List at the sole discretion of the Department Head, subject to the
1120 signature limits in this policy . A separate solicitation of bids is not required for vendors
1121 selected from the preapproved Qualified Bidders List, except for qualified construction
1122 contractors who must be called upon through an informal bidding process to perform
1123 Public Works projects pursuant to subdivision (b) of Section 22032 of the Public Contract
1124 Code.
1125
1126 Negotiation: The Department Head or designee(s) shall discuss with the highest ranked
I 127 firm(s) the requirements of the project, the scope of services needed to meet the
1128 requirements, and negotiate a reasonable fee for the established work assignment.
1129 D. Lowest Responsible (Responsive and Qualified) Bidder
J J 30 For procurement not involving vendors selected from the Qualified Bidders List, bids
1131 should be awarded to the responsive and qualified bidder who submits the lowest bid. A
1132 responsive bid is one that is in substantial conformance with the requirements of the
1133 invitation to bid, including specifications and the City's contractual terms and conditions.
1134 Conformance may also include providing proof of insurance, completed forms,
J 135 references, and all other information as requested in the bid document. Bidders who
1136 substitute terms and conditions or who qualify their bids in such a manner as to nullify or
1J3 7 limit their liability shall be considered non-responsive bidders.
1138
1139 Cost is not necessarily the only determining factor when selecting the successful bidder.
1140 In addition to price, the following elements should also be considered in determining
1141 whether a bid is responsible:
1142
1143 1. The successful bidder must demonstrate the ability to fulfill a contract, including
1144 providing subsequent and continuing service. Staff may request proof of a prospective
1145 bidder's reliability, proof of financial resources, a list of current or previous customers,
1146 and other pertinent data. Such requests may also be taken after receipt of bids.
1147
1148 2. A bidder may be determined to be non-responsible if the bidder fails to furnish proof
1149 of qualifications when required.
1150 3. The products offered provide the quality , fitness, and capacity for the required usage.
864426 1
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ATTACHMENT 13
1151
1152 4 . The bidder has the ability, capacity and skill to perform the contract satisfactorily and
1153 within the time required .
1154
1155 5. The bidder's experience regarding past purchases by the City or other public agencies
1156 demonstrates the reliability of the bidder to perform the contract.
1157
1158 When a department recommends awarding a bid to other than the low bidder, written
1159 justification must be provided on the Bid Recap form and the City Council agenda report
1160 if City Council approval is required .
1161
1162 E. Informal Quotes
1163 Informal quotes should be used to assure the most competitive price is received for an
1164 item , while avoiding the add itional time and expense involved in formal bidding . The
1165 Department/Division shall make every attempt to receive at least three bids in writing or
1166 over the phone if not already obtained from the Qualified Bidders List. Bids must be
1167 documented in the Bid Recap Form to the satisfaction of the City Manager. The
1168 Department/Division should make every reasonable attempt to obtain at least three bids.
1169 In the event that three viable quotes are not received , the division shall provide to the City
1170 Manager a written explanation as to what steps were taken to obtain quotes, any vendors
1171 contacted that were nonresponsive , and if applicable why it is not practical to receive
1172 three quotes. At the City Manager's sole discretion, such requested procurement actions
1173 may proceed .
1174 The Department/Division/Project lead shall evaluate the three informal quotes received
1175 and determine the lowest most responsible bid. The City reserves the right to accept that
1176 bid which is in the best interest of the City.
1177 When selecting the recommended bidder the Department/Division Head will take into
1178 consideration :
1179 • Price.
1180 • Ability , capacity, and skill.
1181 • Ability to meet time requirements.
1182 • Character, integrity , and reputation.
1183 • Previous vendor experience.
1184 • Financial resources available for contract performance.
1185
1186 F. Formal Request for Proposal or Request for Qualifications (RFP/RFQ)
1187
1188 The Request for Proposals (RFP) or Request for Qualifications (RFQ) bidding process is
1189 designed to ensure the City that it has engaged the most qualified consultant available
1190 for the engagement. This process generally takes more time and expense than informal
1191 solicitations of qualifications and in some instances may actually not be the most cost-
1192 effective approach. Unlike formally bid contracts , the City Clerk does not publicly open
1193 requests for proposals or requests for qualifications for professional services.
1194
1195 1. Because RFP/RFQ's ask for a subjective product, they should contain the greatest
864426.1
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ATTACHMENT 13
1196 detail possible, and may include the following :
1197 a. A precise description of the problem or objective
1198 b. The services to be performed
1199 c. The product to be provided
1200 d. The anticipated time schedule for:
1201
1202 • Submittal of RFP/RFQ (date and time).
1203 • Any pre-proposal conference (date, time and location).
1204 • Review and evaluation of the proposals.
1205 • Award of the contract.
1206 • Commencement of work on the project.
1207 • Completion date.
1208
1209 e. Evaluation factors and the relative importance of each.
1210
1211 f. Expectations or limitations on the part of the City, including :
1212
1213 • The format, form and quantity of any expected reports.
1214 • The extenUnature of assistance/cooperation available from the City .
1215
1216 g. Expected content of the RFP/RFQ , including :
1217
1218 • The overall description of techniques to be used.
1219 • Listing of similar services provided to other clients.
1220 • Listing of available references to contact.
1221 • Description and qualifications of assigned lead and supporting personnel.
1222 • Time and staff expected to be expended.
1223 • Facilities and equipment to be used .
1224 • Portion of contract to be performed by sub-contractors.
1225 • Subcontractors'/Sub-consultants' qualifications.
1226 • Cost, in summary and total , and desired method of payment. The RFP/RFQ for
1227 services may, but is not required to, state the amount budgeted for the service.
1228
1229 h. Contractual requirements including, but not limited to:
1230 • Prohibition against assignment.
1231 • Indemnification.
1232 • Insurance requirements.
1233 • Bonding requirements.
1234 • Warranties.
1235 • Compliance with federal, state and City laws, rules and regulations.
1236 • Compliance with any grant related regulations.
1237 • Sample contract.
1238 • Requirement to pay prevailing wages, if applicable .
1239
1240
1241 i. Construction project management service RFP's/RFQ's may require evidence be
1242 provided of experience in construction project design review and evaluation,
864426 1
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ATTACHMENT 13
1243 construction mobilization and supervision, bid evaluation, project scheduling, cost-
1244 benefit analysis, claims review and negotiation, and general management and
1245 administration of a construction project.
1246
1247 j. Additional requirements specific to the scope of work as determined by the
1248 responsible department and/or Finance Department.
1249
1250 2. Issuing the RFP
1251
1252 To ensure maximum exposure and competition, the responsible department shall prepare
1253 a list of potential firms to receive the RFP/RFQ.
1254
1255 a. If required or desired, the responsible department will submit the RFP notice to be
1256 advertised on the City's website, online through the City's bidding web service, or
1257 in a local newspaper of general circulation. The notice will be published one or
1258 more times beginning at least fourteen calendar days prior to the designated
1259 closing. Additional advertisements may be placed in a regional newspaper of
1260 general circulation; appropriate professional or trade journals; and state or
1261 governmental publications designed for public notice.
1262
1263 b. A reasonable length of time between solicitation and closing dates must be allowed
1264 to provide potential respondents time for preparation in accordance with the
1265 complexity, the size of the project, and the scope of advertising .
1266
1267 c. City staff may conduct conferences to explain the requirements of the project. A
1268 sufficient amount of time should be allowed after the RFP has been issued to allow
1269 potential respondents to become familiar with the project. Any clarification or
1270 changes required to the RFP/RFQ , as a result of the conference , shall be added
1271 as a written amendment. A summary of the conference shall be provided to all
1272 prospective respondents receiving the request.
1273
1274 d. The requesting department shall prepare sufficient copies of the RFP to allow
1275 distribution to potential respondents of record and responses to the published
1276 advertisements. In addition, the department shall maintain a list of RFP's issued
1277 and responses.
1278
1279 e. Amendments should be used to make any changes in quantities, descriptions,
1280 schedules , or to correct defects or ambiguities in the original RFP/RFQ.
1281 Amendments are provided to ensure that all potential respondents are furnished
1282 with the same information with which to prepare proposals.
1283
1284 f. Amendments to the RFP/RFQ shall be identified as such and shall require
1285 acknowledgment as such by firms receiving the RFP/RFQ. Amendments shall be
1286 sent to all known recipients of the RFP/RFQ within a reasonable time period before
1287 the closing date. If the time and date established for the receipt of proposals does
1288 not allow sufficient time for consideration and changes, the time and date will be
1289 modified by amendment.
1290 3. Proposal Receipt and Opening:
1291
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ATTACHMENT 13
1292 a. Proposals shall be submitted to the originating department and shall be clearly
1293 identified with the Proposal number on the envelope. Faxed or other electronic
1294 proposals are not acceptable.
1295
1296 b. All proposals shall be time stamped and those received by 5:00 p .m. of the
1297 designated closing day will be opened on the following workday for preliminary
1298 review .
1299
1300 c. Any proposal received after the time specified in the RFP/RFQ shall be returned
1301 unopened .
1302
1303 d. To avoid disclosure of the contents of competing RFP/RFQs, proposals will be
1304 opened in the presence the Department Head or his or her designee.
1305
1306 e. Respondents may modify or withdraw their proposals prior to the established
1307 closing date and time, without penalty. However, any modifications submitted after
1308 the established closing date and time will not be accepted. Such modifications will
1309 be returned to the respondent, unopened.
1310
1311 f. The Department shall maintain a list of proposals received , including name and
1312 address of respondent, the number of modifications received, if any, and any
1313 additional information requested. The register will be open to inspection after the
1314 award of the contract or the rejection of all proposals.
1315
1316 g. Proposals and modifications shall be shown only to the evaluation committee
1317 personnel, and the Department Head until a recommendation is made to City
1318 Council or all proposals have been rejected.
1319
1320 4. Rejection of Proposals : The City reserves the right to reject any and all proposals , to
1321 accept or reject any one or more items of a proposal, or to waive any irregularities or
1322 informalities in the proposal or the RFP/RFQ process if to do so is deemed to best
1323 serve the interests of the City. The authority to reject any proposal shall be consistent
1324 with the levels of authority based on dollar thresholds described above .
1325
1326 5 . Evaluation Factors and Method: Because unique services are requested, cost is not
1327 considered the primary selection criteria.
1328
1329 a. Evaluation factors may include :
1330
1331 • General quality and responsiveness of the proposal, including but not limited
1332 to:
1333 • Responsiveness to the terms, conditions, and items of performance;
1334 • Completeness and thoroughness of the proposal ;
1335 • Grasp of the problem, work to be performed, and approach to be used.
1336
1337 • Organization and personnel making the proposal:
1338 • Evidence of good organizational and management practices ;
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ATTACHMENT 13
1339 • Qualification of the personnel;
1340 • Specialized experience of the firm and its personnel relative to the required
1341 services;
1342 • References who can be contacted to verify past record of performance, i.e.,
1343 completion of a quality product, in a timely manner, and within budget
1344 constraints;
1345 • The financial condition of the firm;
1346 • Capacity of the firm to perform the subject project within a required time
1347 frame.
1348
1349 • If appropriate, the price, in any of the following formats, may be considered .
1350 • Total price and price breakdown;
1351 • Price range;
1352 • Cost schedule.
1353
1354 b. A Selection Committee shall be formed to evaluate the submitted data and
1355 determine the products that should receive further consideration. The Committee
1356 shall be appointed by the Department Head, subject to the approval of the City
1357 Manager or the Chief Financial Officer, and may consist of more than one
1358 department.
1359
1360 c. The Selection Committee may choose to interview all of the responding
1361 consultants, only the top few ranking consultants or to not perform interviews.
1362
1363 d. After the interviews (if applicable), the Selection Committee shall rank the
1364 consultants based on their proposals, interviews, and references.
1365 6. Exceptions to Formal RFP/RFQ: The formal RFP/RFQ process may be bypassed in
1366 the following three instances:
1367
1368 a. In emergency situations where time is of the essence, the City Manager may
1369 dispense with the formal RFP/RFQ process to obtain services necessary in dealing
1370 with the emergency. Immediately following the emergency, the City Manager shall
1371 submit to Finance Department an Emergency Authorization Form.
1372
1373 b. When one known service provider is available, the Department Head shall prepare
1374 a report for City Manager or City Council approval, depending on the dollar
1375 threshold, requesting an exemption from the RFP/RFQ procedures and, if
1376 applicable, awarding the bid to the "sole source."
1377
13 78 c. When there are extenuating circumstances that would make the formal RFP/RFQ
13 79 process not the most cost effective approach. This often relates to qualitative,
1380 artistic or proprietary software/technological issues. The appropriate Department
1381 Head shall prepare a report to the City Council requesting an exemption from the
1382 formal RFP/RFQ process.
1383
1384 7. Negotiation: The Department Head or designee(s) shall discuss with the highest
I 385 ranked firm(s) the requirements of the project, the scope of services needed to meet
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1386 the requirements, and negotiate a reasonable fee/contract for the established work
1387 assignment.
1388
1389 G. Informal Bid Process
1390
1391 The department shall prepare a Notice Inviting Informal Bids to describe the project in
1392 general terms, how to obtain more detailed information on the project, and the time and
1393 place for the submission of bids. The proposed contract and applicable bond and
1394 insurance requirements should always be included in this Notice Inviting Informal Bids.
1395 The department also completes the Contract Transmittal Form (See Appendix B) that
1396 identifies the project, funding sources, contract type, insurance and bond requirements,
1397 and the type(s) of publications required, including whether the City Clerk needs to publish
1398 a Notice Inviting Informal Bids. In some instances, the City Manager may require City
1399 Council approval prior to advertising.
1400
1401 The department mails the Notice Inviting Informal Bids to all construction contractors
1402 on the Qualified Bidders List (See Section Vl.C for more information on developing the
1403 Qualified Bidders List) forthe category of work being bid and advertises in all designated
1404 construction trade journals not less than 10 calendar days before bids are due.
1405 Additionally, the Department Head is encouraged to post the Notice Inviting Informal Bids
1406 to the City's web site. The City Clerk will publicly open all bids at the time and place stated
1407 in the public notices.
1408
1409 For all Public Works projects up to $200,000, the City shall comply with all statutory
1410 requirements for informal bidding procedures as set forth in Public Contract Code
1411 sections 22030, et seq.
1412
1413 After the successful bidder has been selected, the department prepares two original
1414 contracts and obtains the contractor's signature. After the contract is approved (signed)
1415 by the City Manager, the department then submits a completed Contract Transmittal
1416 Form, bid recap and the signed contracts to the City Clerk's Office.
1417
1418 H. Formal Bid Process
1419
1420 The City shall solicit formal bids in accordance with Public Contract Code Sections 22037-
1421 22044. (See Appendix A)
1422
1423 The initiating DepartmenUDivision shall be responsible for completion of the formal bid
1424 process; however, the proces.s shall be coordinated with the City Clerk's Office and the
1425 Finance Department.
1426 1. Bid Forms: The initiating department shall prepare a bid form including detail
1427 specifications for the services to be purchased. The following format is suggested for
1428 competitive bids:
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1429 a. Submission of bids (or proposals)-Include date, time, location and bid number
1430 as assigned by the City Clerk. Include a detail list of the information the bid or
1431 proposal should contain.
1432 b. Questions -List the name, address, and telephone number of the City person
1433 to be contacted concerning questions about the project.
1434 c. Background -Provide as much background as necessary to give the bidder an
1435 understanding of the environment in which the job will be performed and to
1436 which the job relates.
1437 d. Scope of work -Describe in detail the requirement for the job and detail
1438 specification.
1439 e. Desired project schedule -Be as specific as possible.
1440 f. Minimum and desirable qualifications -Be as specific as possible.
1441 g. Performance Bond-Whether a performance bond is required and if so, the
1442 amount and form of bidders security.
1443 h. Sample Contract-A sample of the contract that is expected to be used should
1444 be included in the bid package.
1445 2. Notice Inviting Bids: The initiating department shall also prepare a notice inviting
1446 bids that includes the following:
1447 a. A general description of the services to be purchased.
1448 b. A statement indicating where bid forms, specifications and bonding
1449 requirements can be obtained.
1450 c. A statement specifying the time and place for the opening of the bids.
1451 d. The notice shall be published at least fourteen calendar days before the date
1452 of the opening of bids in a newspaper of general circulation, printed and
1453 published in the City. (It is recommended that it be published twice, not less
1454 than five days apart).
1455 e. The notice shall also be mailed to all construction trade journals specified in
1456 Section 22036 of the Public Contract Code. The notices shall be mailed at least
1457 thirty (30) calendar days before the date of opening the bids.
1458
1459 3. Bid Opening
1460 a. Sealed bids shall be submitted to the City Clerk's office and shall be clearly
1461 identified with the Bid number on the envelope. Upon receipt, the City Clerk
1462 shall date and time stamp the envelope. Faxed or other electronic bids are not
1463 acceptable.
1464 b. Bids shall be opened in public at the time and place stated in the public notice.
1465 c. The City Clerk or his/her designee shall open the bids and shall record all bids
1466 received.
1467 d. Any bid received after the time specified in the notice shall be rejected.
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1468 e. When a bidder's security is required, it will be announced in the public notice
1469 inviting bids. The amount shall be determined at the time of preparation of the
1470 bid. It shall be in the form of cash, certified or cashier's check, certificate of
1471 deposit in the City of San Juan Capistrano's name or bid bond made payable
1472 to the City of San Juan Capistrano. When a bidder's security is required, a bid
1473 shall not be considered unless one of the aforementioned forms of security
1474 accompanies the bid. Bidders shall be entitled to return of the bid security with
1475 the following exception :
1476 The successful bidder must execute the contract and file acceptable
14 77 documents within thirty (30) calendar days from the date of award unless
1478 extended by the City Manager. Failure to execute the contract shall be just
14 79 cause for annulment of the award and forfeiture of the bidder's security, not as
1480 a penalty, but as liquidated damages. The City Council may, upon refusal or
1481 failure of the successful bidder to execute the contract, award the contract to
1482 the next lowest responsive and responsible bidder.
1483 f. All bids received shall be available for inspection during regular business hours
1484 in the City Clerk 's office for a period of not less than thirty (30) calendar days
1485 after the bid opening.
1486
1487 g. All bids received shall be available for inspection during regular business hours
1488 in the City Clerk's office for a period of not less than thirty (30) calendar days
1489 after the bid opening.
1490
1491 4. Rejection of Bids: The City reserves the right to reject any and all bids, to accept or
1492 reject any one or more items of a bid, or to waive any irregularities or informalities in the
1493 bids or the bidding process if to do so is deemed to best serve the interests of the City. If,
1494 after the first invitation of bids, all bids are rejected, the City may elect to re-advertise for
1495 bids or have the project done by force account. (See Section 22038 of the Public Contract
1496 Code for Procedures and limitations).
1497 5. Determining Lowest Responsive and Responsible Bidder: Award of bid shall be
1498 to the lowest responsive and responsible bidder. All valid responsive and responsible bids
1499 shall be considered in determining the lowest bid. Before the award, the bidder may be
1500 required to furnish evidence of capability, equipment and financial resources to
150 I adequately perform the work. Bidders not found to be responsive or qualified may have
1502 their bid rejected.
1503 6. Tie Bids: If tie bids are received, quality and service being equal, the contract shall be
1504 awarded to a local bidder.
1505 If the above condition is not applicable, the City may, at its discretion:
1506 a. Reject any and all bids presented and re-advertise; or
1507 b. City may accept either one or accept the lowest bid made by negotiation with the
1508 tie bidders; or
1509 c. Award the bid to any one of the low tie bidders by public drawing.
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1510
1511
1512
1513
1514
1515
1516
1517
1518
1519
1520
1521
1522
1523
1524
1525
1526
1527
1528
1529
1530
1531
1532
1533
1534
1535
1536
1537
1538
1539
1540
1541
1542
1543
1544
1545
1546
1547
1548
1549
1550
1551
1552
1553
1554
1555
7. Awarding the Bid: Once the bids have been evaluated, the Department Head/Division
Head shall prepare a report to Council recommending the most responsive and
responsible bidder. The Council shall then award the bid in a public meeting.
All public project contracts exceeding $45 ,000 must be awarded by the City Council.
Otherwise:
a. Such purchases are void and not considered an obligation of the City.
b. Invoices may be returned to the contractor/service provider unpaid.
c. The person ordering the unauthorized purchase may be held personally liable for
the costs of the contract.
I. Exceptions to Competitive Bidding Requirements
The bid process may be bypassed with Department Head approval in the following four
instances :
1. In emergency situations where time is of the essence, the appropriate Department
Head may dispense with bidding procedures with City Manager approval. For the
purpose of this section, emergency situations are those procurements required to
prevent the immediate interruption or cessation of necessary City services or to
safeguard life , property, or the public health and welfare. If the emergency
procurement would have otherwise required formal or informal bidding procedures,
the department must obtain City Council ratification of the purchase at the next
regularly scheduled meeting . See Section I. Paragraph G. for additional information
on emergency purchases .
2. When the commodities or services that are required for a purchase can be obtained
from only one vendor, the Department Heads shall document that it is a "sole source "
purchase on the Bid Recap form. Most sole source purchases shall be the result of
the City deciding that it is in its best interest to use a specific vendor or proprietary
brand item or when one vendor has the required expertise to perform the needed
service. All sole source purchases must be justified by written documentation (bid
recap) signed by the appropriate department head and approved by the City Manager
prior to being forwarded to the Finance Department. The sufficiency of the justification
for sole sourcing will be at the sole discretion of the City Manager in consultation with
the department head and will take into account the facts and circumstances relevant
to the purchase .
3. When the City Manager determines that compliance with the above procedures for a
procurement of goods, supplies, equipment, materials or services cannot be achieved
due to timing requirements, which could have not otherwise been avoided, the City
may proceed with an informal solicitation of quotes from at least three vendors. A
description of the circumstances, the quotes received, and the basis for vendor
selection shall be approved by the City Manager.
4. When there exists other governmental contracts that were competitively bid (such as
State Contracts, DGS, etc.) that the City is eligible to use.
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1556
1557
864426.1
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ATTACHMENT 13
1558 SECTION VIII -FEDERAL PROCUREMENT
1559
1560 Federal procurement applies to expenditures made for a project or program for which a
1561 Federal award was received. A Federal award is the Federal financial assistance or a
1562 cost-reimbursement contract that the City receives directly from a Federal awarding
1563 agency or indirectly from a pass-through entity such as the county or state. All non-
1564 Federal entities, including subrecipients of a state , must follow Code of Federal
1565 Regulations. PART 200-UNIFORM ADMINISTRATIVE REQUIREMENTS . COST
1566 PRINCIPLES . AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS.
1567 A. Definitions
1568 1. Federal financial assistance.
1569 Assistance that non-Federal entities receive or administer in the form of:
1570 a. Grants;
1571 b. Cooperative agreements;
1572 c. Non-cash contributions or donations of property (including donated surplus
1573 property);
1574 d. Direct appropriations ;
1575 e. Food commodities;
1576 f. Loans;
1577 g. Loan Guarantees;
1578 h. Interest subsidies;
1579 i. Insurance; and
1580 j. Other assistance.
1581 2. Cooperative agreement.
1582 a. A legal instrument of financial assistance between a Federal awarding agency or
1583 pass-through entity and a non-Federal entity that is used to enter into a
1584 relationship the principal purpose of which is to transfer anything of value from
1585 the Federal awarding agency or pass-through entity to the non-Federal entity to
1586 carry out a public purpose authorized by a law of the United States; and not to
1587 acquire property or services for the Federal Government or pass-through entity's
1588 direct benefit or use. It is distinguished from a grant in that it provides for
1589 substantial involvement between the Federal awarding agency or pass-through
1590 entity and the non-Federal entity in carrying out the activity contemplated by the
1591 Federal award.
1592 3. Grant agreement.
1593 a. A legal instrument of financial assistance between a Federal awarding agency or
1594 pass-through entity and a non-Federal entity that is used to enter into a
1595 relationship the principal purpose of which is to transfer anything of value from
1596 the Federal awarding agency or pass-through entity to the non-Federal entity to
1597 carry out a public purpose authorized by a law of the United States; and not to
1598 acquire property or services for the Federal awarding agency or pass-through
1599 entity's direct benefit or use. It is distinguished from a cooperative agreement in
1600 that it does not provide for substantial involvement between the Federal awarding
I 60 l agency or pass-through entity and the non-Federal entity in carrying out the
1602 activity contemplated by the Federal award.
1603 4. Loan.
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1604 a. A Federal loan or loan guarantee received or administered by a non-Federal
1605 entity, except as used in the definition of program income.
1606 5. Non-Federal entity.
1607 a. A state, local government, Indian tribe, institution of higher education, or nonprofit
1608 organization that carries out a Federal award as a recipient or subrecipient.
1609 6. Pass-through entity.
1610 a. A non-Federal entity that provides a subaward to a subrecipient to carry out part
161 I of a Federal program.
1612 7. Period of performance.
1613 a. The time during which the non-Federal entity may incur new obligations to carry
1614 out the work authorized under the Federal award. The Federal awarding agency
l 615 or pass-through entity must include start and end dates of the period of
1616 performance in the Federal award.
1617 8. Program income.
1618 a. Gross income earned by the non-Federal entity that is directly generated by a
1619 supported activity or earned as a result of the Federal award during the period of
1620 performance. Program income includes but is not limited to income from fees for
1621 services performed, the use or rental or real or personal property acquired under
1622 Federal awards, the sale of commodities or items fabricated under a Federal
1623 award, license fees and royalties on patents and copyrights, and principal and
1624 interest on loans made with Federal award funds. Interest earned on advances
1625 of Federal funds is not program income. Except as otherwise provided in Federal
1626 statutes, regulations, or the terms and conditions of the Federal award, program
1627 income does not include rebates, credits, discounts, and interest earned on any
1628 of them.
1629 9. Project cost.
1630 a. Total allowable costs incurred under a Federal award and all required cost
1631 sharing and voluntary committed cost sharing, including third-party contributions.
1632 10. Recipient.
1633 a. A non-Federal entity that receives a Federal award directly from a Federal
1634 awarding agency to carry out an activity under a Federal program.
1635 11. Subaward.
1636 a. Award provided by a pass-through entity to a subrecipient for the subrecipient to
1637 carry out part of a Federal award received by the pass-through entity. It does not
1638 include payments to a contractor or payments to an individual that is a beneficiary
1639 of a Federal program. A subaward may be provided through any form of legal
1640 agreement, including an agreement that the pass-through entity considers a
1641 contract.
1642 12.Subrecipient.
1643 a. A non-Federal entity that receives a subaward from a pass-through entity to carry
1644 out part of a Federal program; but does not include an individual that is a
1645 beneficiary of such program. A subrecipient may also be a recipient of other
1646 Federal awards directly from a Federal awarding agency.
1647
1648 8. Additional Procurement Procedures
1649 1. In addition to the purchasing policies and procedures in Sections I through VII, the
1650 following procedures will apply:
1651 a. No employee, officer, or agent may participate in the selection, award, or
864426 I
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ATTACHMENT 13
1652 administration of a contract supported by a Federal award if he or she has a
1653 real or apparent conflict of interest. Such a conflict of interest would arise
1654 when the employee, officer, or agent, any member of his or her immediate
1655 family, his or her partner, or an organization which employs or is about to
1656 employ any of the parties indicated herein, has a financial or other interest in
1657 or a tangible personal benefit from a firm considered for a contract.
1658 Disciplinary actions under Rule 11 of the Personnel Rules will be applied for
1659 violations of such standards by officers, employees , or agents of the non-
1660 Federal entity.
1661 b. Procurement using the formal bidding or formal RFP/RFQ procedures must
1662 be followed for purchases over $250,000, except during periods of an
1663 emergency as defined by this policy or a public exigency that requires or
1664 demands immediate aid or action.
1665 c. Formal bidding is the preferred method for procuring construction when the
1666 procurement lends itself to a firm fixed price contract and the selection of the
1667 successful bidder can be made principally on the basis of lowest responsive
1668 and responsible bidder.
1669 d. Procurements must take the following steps to assure minority businesses,
1670 women's business enterprises, and labor surplus area firms are used when
1671 possible :
1672 1. Placing qualified small and minority businesses and women's
1673 business enterprises on solicitation lists;
1674 2. Assuring that small and minority businesses, and women's
1675 business enterprises are solicited whenever they are potential
1676 sources;
1677 3. Dividing total requirements, when economically feasible, into
1678 smaller tasks or quantities to permit maximum participation by
1679 small and minority businesses, and women's business
1680 enterprises;
1681 4. Establishing delivery schedules, where the requirement permits,
1682 which encourage participation by small and minority businesses,
1683 and women's business enterprises;
1684 5. Using the services and assistance, as appropriate, of such
1685 organizations as the Small Business Administration and the
1686 Minority Business Development Agency of the Department of
1687 Commerce; and
1688 6. Requiring the prime contractor, if subcontracts are to be let, to
1689 take the affirmative steps listed in paragraphs 1 through 5 of this
1690 section.
1691 e. Procurements must avoid acquisition of unnecessary or duplicative items.
1692 f. A cost or price analysis in connection with every procurement action in excess of
1693 $250,000 must be performed and must include independent estimates before
1694 receiving bids or proposals.
1695 g. Profit must be negotiated as a separate element of the price for each contract in
1696 which there is no price competition and in all cases where cost analysis is
1697 performed . To establish a fair and reasonable profit, consideration must be given
1698 to the complexity of the work to be performed, the risk borne by the contractor,
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1699 the contractor's investment, the amount of subcontracting, the quality of its record
1700 of past performance, and industry profit rates in the surrounding geographical
1701 area for similar work.
1702 h. Costs or prices based on estimated costs for contracts are allowable only to the
1703 extent that the cost accounting principles for determining costs incurred or cost
1704 estimates included in negotiated prices comply with Federal cost principles.
1 705 i. The cost plus a percentage of cost and percentage of construction cost methods
1706 of contracting must not be used.
1707
1708 SECTION IV -DISPOSTION OF SURPLUS PROPERTY/CAPITAL ASSETS
1709 (OTHER THAN REAL PROPERTY)
1710
171 I Surplus Property Definition
1712 Supplies and equipment are considered surplus if they are no longer required by the using
1713 department, because of decreased use, poor condition, damage not worth the cost of
1714 repair, and/or obsolescence. Examples of property include small items, such as binders,
1715 calculators, and electric staplers, as well as inventoried items, such as printers, pool cars,
1716 arid desks. Property can also include capital assets, which are the items that generally
1717 have a higher unit cost and are inventoried as capital assets. Examples of capital assets
1718 are water fountains, playground equipment, and building or structural components, such
1719 as roofs, restrooms, and roadways. This definition of surplus property excludes real
1720 property.
1721
1722 Surplus Property DeterminationNaluation
1723 The Department Head should first determine if a supply, piece of equipment, or capital
1724 asset has become surplus, based on the definition given above . The next step is to
1725 determine the current value of the surplus property item, either from an existing source
I 726 document or a reasonable estimate of replacement value, if the original source document
1727 is no longer available through the City's records management system.
1728
1729 If the current value of the surplus property item is less than $500, the Department Head
1730 or designee should bring the surplus property item directly to Finance Department in order
1731 to log its receipt, determine its disposition, and then coordinate its disposal.
1732
1733 Surplus Property/Capital Asset Disposition Form (See Appendix 8)
1734 If the property item is deemed surplus and its current value is over $500, then the
1735 Department Head must complete a Surplus Property/Capital Asset Disposition form. This
1736 form is available on the City's Intranet. One copy of the form should be circulated for
173 7 signatures.
1738
1739 On the disposition form, the Department Head should list the item's description, serial
1740 number, fixed asset tag number (if applicable), location, and condition. The Department
174 I Head should indicate the property's condition (good, fair, poor, or broken) and then
1742 recommend a method of disposal for the property (see the following section for
1743 descriptions of disposal methods). After selecting the recommended action and noting
1744 any other comments, the Department Head must sign and date the Surplus
I 745 Property/Capital Asset Disposition form and forward it to the Purchasing Officer.
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ATTACHMENT 13
1746
174 7 Methods of Disposal
1748 There are several ways to dispose of surplus property, including :
1749 • Transfer to another department;
1750 • Trade in for new material, equipment or credit;
1751 • Sell;
1752 • Donate; or
1 753 • Scrap.
1754
1755 Transfer to another Department
1756 Departments can transfer surplus property to one another, subject to the approval of both
1757 of the Department Heads affected by the transfer. If the current value of the item is $500
1758 or above, the department transferring out the property should initiate a Surplus
1759 Property/Capital Asset Disposition form and both Department Heads should sign the
1760 form. If a fixed asset is being transferred (unit price of $2,000 and above), the Accounting
1761 staff will record the new location of the property in the City's fixed asset system.
1762
1763 Trade-In
1764 Surplus property can be offered as trade-in for new equipment or material or for credit
1765 towards the acquisition of new property. If the current value of a surplus property item
1766 slated for trade-in is $500 or over, then a Surplus Property/Capital Asset Disposition form
1767 should be completed. The estimated trade in value of the surplus property or capital asset
1768 should be noted on the Surplus Property/Capital Asset Disposition form and on the
1769 purchase order issued for any new property resulting from the trade in.
1770
1771 Selling Surplus Property
1772 Surplus property may be offered for sale. All surplus property is for sale "as is" and "where
1773 is," with no warranty, guarantee, or representation of any kind, expressed or implied, as
1774 to the condition, utility or usability of the property offered for sale. For any sale of surplus
1775 property with a current value of $500 or above, the Department Head should indicate on
1776 the Surplus Property/Capital Asset Disposition form the recommended selling method
1777 and any other notations in the Department Head approval. Appropriate methods of sale
1778 are as follows:
1779
1 780 a. Public Auction -City staff may conduct public auctions or the City may contract
1781 with a professional auctioneer and/or an Internet auctioneer for this service.
1782
1783 b. Sealed bids -Sealed bids may be solicited for the sale of surplus property.
1784 Surplus property disposed of in this manner shall be sold to the highest
1785 responsible bidder.
1786
1787 c. Negotiated Sale -Surplus property may be sold outright if the Purchasing
1788 Officer determines that only one known buyer is available or interested in
1789 acquiring the property.
1790
1791 d. Selling to City Employees -If recommended by the Purchasing Officer and
1792 approved by the City Manager, certain surplus property items may be offered
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1793 for sale to City employees on an exclusive basis or in conjunction with sales to
1794 the public; however, those employees whose job responsibilities involve central
1795 purchasing administration and/or functional control over the surplus property
1796 are not permitted to participate in such sales.
1797
1798 e. Selling as Salvage -Equipment, materials, supplies, fixtures, or facility
1799 components that are no longer capable of performing their intended function
1800 without extensive repair, or that are of no value except for reclamation
1801 purposes, may be considered salvage. Surplus property may be sold as
1802 salvage if the Purchasing Officer deems that the value of the raw material
1803 exceeds the value of the property as a whole.
1804
1805 Donation of Surplus Property
1806 The Department Head may recommend and the Purchasing Officer may authorize,
1807 subject to the approval of the City Manager, the donation of surplus property to a non-
1808 profit organization or school district located or operating in San Juan Capistrano or,
1809 secondarily, to any other non-profit organization or private organization that provides
181 o assistance to nonprofit organizations. If surplus property has been approved for donation,
1811 the Purchasing Officer will notice the availability of such property for donation, indicating
1812 the quantity, description, and location of the surplus property, by one or more of the
1813 following methods: in a local newspaper and on the City's web site. This notice will also
1814 indicate a closing date for the receipt of all requests for donation and indicate the way in
1815 which interested parties can receive additional information.
1816
1817 Requests for donation will be accepted on a first-come, first-serve basis. The Purchasing
1818 Officer will send a letter to the non-profit organization(s) or school district(s) that respond
1819 to the notice to advise them of the City's terms and conditions of the donation. The terms
1820 and conditions that the requesters must meet are: (1) accepting the property "as is," with
1821 no implied warranties, (2) stating an immediate need for the property and putting it into
1822 immediate use; (3) agreeing that the property will not ever be sold or otherwise transferred
1823 for profit; and (4) assuming all costs and liability associated with the removal and
1824 transportation of the surplus property from the City. A return letter, signed by an
1825 authorized agent from the non-profit organization or school district, accepting the City's
1826 terms and conditions is required before the surplus property can be released.
1827
1828 If, in the opinion of the Purchasing Officer, the donated property has a current value of
1829 less than $1,000, then the City Manager can approve the release of the property to the
1830 recipient(s) that meet the above criteria and agree to the City's terms and conditions. If,
1831 in the opinion of the Purchasing Officer, the donated property has a current value of
1832 $1,000 or more, the Purchasing Officer will prepare a report to identify the specific
1833 property to be donated, the estimated current value of the property, and the proposed
1834 recipient(s) of the property for approval by City Council. After City Council's approval, the
1835 surplus property approved for donation may then be released.
1836
1837 The department from which the donated property is being taken should remove any fixed
1838 asset or San Juan Capistrano property tags before the property is officially transferred to
1839 the recipient organization(s).
1840
864426.1
47
ATTACHMENT 13
1841 Scrap/No Value Item
1842 Scrap, as one method of surplus property disposal, essentially means throwing an item
1843 into the trash. Scrap is recommended only after determining that none of the other
1844 methods of disposal -selling, exchange, trade-in, donation, or salvage -is feasible.
1845 Broken items that can be repaired economically will be fixed and returned to the using
1846 department. For any broken or inoperable piece of property that, based· on the
184 7 recommendation of the Department Head and the judgment of the Purchasing Officer,
1848 cannot be economically repaired, traded in, sold, auctioned, donated or salvaged, the
1849 item may be scrapped, regardless of the original purchase price.
1850
1851 If the Department Head or designee recommends that an unbroken surplus property item
1852 with a current value below $500 or several unbroken surplus property items with a
1853 collective current value below $1,000 be scrapped, then he/she should bring the item(s)
1854 directly to the Purchasing Division for disposal. If the surplus property is obsolete or
1855 nonfunctional and cannot be traded in, sold auctioned, donated or salvaged, the
1856 Purchasing Officer, with the approval of the City Manager, may scrap such surplus
1857 property .
1858
1859 If a surplus property item recommended to be scrapped is not broken and has a current
1860 value equal to or above $500, or for multiple items, a combined current value equal to or
1861 above $1,000, then the Department Head must complete a Surplus Property/Capital
1862 Asset Disposition form. Under these conditions, especially if City staff will directly dispose
1863 of the item(s), Council approval to scrap will also be required. If City staff does not directly
1864 scrap this category of surplus property but a contractor is instead hired to remove and
1865 replace the property, then the disposal method is considered to be a trade in, not scrap,
1866 and the City Council approval requirement does not apply.
1867
1868 For multiple items proposed to be scrapped, the size of the lot and thus the total current
1869 value will be based on the items and values entered on the Surplus Property/Capital Asset
1870 Disposition form(s) submitted by the department. Splitting of surplus lots on these forms
1871 to avoid the City Council reporting requirements is prohibited.
1872
1873 The report to City Council to request approval to scrap will be prepared by the Purchasing
1874 Division after receipt of the completed Surplus Property/Capital Asset Disposition form.
1875 Once City Council approval is granted, the Purchasing Officer will then scrap the item(s).
1876
1877 Purchasing Officer's Review and Final Disposition
1878 In the case of surplus property items with a current value below $500 for a single item or
1879 below $1,000 for multiple items within one lot, the departments do not have to complete
1880 a Surplus Property/Capital Asset Disposition form. Instead, the departments will
1881 physically bring the items to the Finance Department. Finance Department will receive
1882 these items from the department, and the Purchasing Officer will determine the best
1883 method for disposal of these items. A description of these surplus property items, as well
1884 as the date received from the departments, the disposal method, and the disposal date
1885 will be recorded on a surplus property log maintained by Finance Department.
1886
1887 For all surplus property items with a current value equal to or above $500 for a single item
1888 or equal to or above $1,000 for multiple items within one lot, the Purchasing Officer will
864426.1
48
ATTACHMENT 13
1889 review the department's completed Surplus Property/Capital Asset Disposition form,
1890 concur with or recommend an alternate action, and then forward the form to the City
1891 Manager for approval. The Purchasing Officer will also ascertain whether City Council
1892 approval is required to donate or scrap surplus property items, depending on the current
1893 value of the items listed on the form. If further City Council action is required, then the
1894 Purchasing Officer will indicate that a report to City Council for final approval will be
1895 necessary. After the City Manager has approved the Surplus Property/Capital Asset
1896 Disposition form, it will be returned to the Purchasing Officer for either preparation of a
1897 report to City Council, if needed, or for final disposition of the property.
1898
1899 After the disposal of the surplus property, the Purchasing Officer will complete and sign
1900 the Surplus Property/Capital Asset Disposition form, noting the date, disposal method,
1901 and any proceeds received, if the property was sold. The Purchasing Officer will also note
1902 the date that City Council approved the donation or scrapping of surplus property if that
1903 level of approval was required.
1904
1905 After all signatures have been obtained, a copy of the form will be sent to the initiating
1906 department and to the Accounting Division, which will remove any surplus property items
1907 that had been classified as fixed assets from the City's Fixed Asset Records. Purchasing
1908 will keep the completed original form on file.
1909
191 O Proceeds
1911 Any proceeds received from the trade-in or sale of surplus property will be credited to the
1912 General Fund or the Facilities Operations Fund as appropriate.
1913
1914
864426 I
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ATTACHMENT 13
1915 APPENDIX A-PURCHASING AUTHORITIES
1916
1917 Uniform Public Construction Cost Accounting Resolution 06-09-19-04 approved
1918 September 19, 2006
1919
864426 . 1
RESOLUTION NO. 00-09-1~ IJ4
I
A SOLIJTlON 0 THE CITY COUNCIL Of THE CITY Of SA !ll JU~
CAPISTRANO, CALIFORN IA. ELECTING FOR TI1E CITY TO BECoME
SUBJECT TO THE U~ORM PUBLIC CDNSTRUC TJ ON COST
ACCOUNTfNG PROC ·OU~
Wf-lt:R AS. prior to he passage o'f As.secn bi Bii No . 1666, Cha p t~r 1054 ,
Statutes of 983 . ' iat added Chap4er 2. oomm ncing wi cliOn 22000 r.o P3rt 3 ot
°'~'."" .2· ot the P\Jbli Contreei Cede. ng la did not pro11id~ a uniT' rm CO&l
ectoonting s1andard or W'l$tnl~lon "'' perlOtl'n()d or contr cied by 6o pubric
agenc:u,s; and
WHEREAS, F'ub c Contrccl Code Secllon 22000 et seq,, lhe Unlf Pu~
Cori ruction Cos\ AeCOl.in ng {the 'Aet'J estab11shes such a c,mifomi oost unting
standard; and
WHEREAS, The D111fo mi " un· urm Public C01'1$\tuction Co~\ A un Ing
con' · alon (die "Comrnis$ion~) Htabli$hed under !he Ar:t. has developed ooifoon
pu ic cost acoounting ~ res for implernent~iOr'I by IO~ pubk 1 in Ile
pen~ of°' In the oontracilng for oon51ruction of public projects .
NOW, TH£R FORE, BE t1' RESOlVED, that Ute City-COunoll of fue Ci at San
JI.Jan Capi$1 no dOc'J hereby e~ as follo~s:
SECTION \, The City Coo I c4 ttie Day of Sen Jual\ Cap"l!ltrano haraY>y eiea.s.
under Public COntraci Cod6 SectiOo 22000 to be<Xlm subje(;I to the 1.mifonn jXtblle
construction co~ accounting• procsdl.lfes &et forth in rhe Act and to the Comrpls'Sion's
policies and proced ~ mBnuat a"4 oost ~u~ln~ r v f!ltOCOdur , ai tl'lcy m3Y
eacn from thne to time be a'Jlended . ·
SECTION 2. The Crty Cle~ is hareb}' direcied to (a) nolify the State of C · omia
Con lier ln writ of ttie Clty ot $a Juan ~ls1raoo 's election lo become subject to
\he unifonn pu ic cOn ruction cost acc0un -PfO<;edure& and (b) 1 a ¢rJf7)' ot lhis
Reso fu11on with he S1ale ~ Call ornl a Con oil er st lhe fol lowi ng address : Office of
81 e COC'rlrol!Ct', IJivi n ot Account~ 1nd Rcp<>rtiflg, lo GollOfTimenl 1Pollcm
Secbon. P.O. Box 94285tl, Sacram ento. CA. '94250_ '
f ·f I ufl 9.119: 006
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ATTACHMENT 13
1920
1921
864426 1
.PASSED, APP OV 0, AND ,ADOPTED ~hla 1 W" day Of S.ptember 2Q06 .
ATTEST :
STATE OF CALIFORNIA
CQUNTY OF ORANG ) u.
CfTV Of SAN JU CAPI TR ANO ~
I, MARGAAET R. ~ AH AN , p ntetl Cily Ct of !he Ci)• of 88'1 Juan Ca~!tano . do tier(lby centty
lh9 fo111gOmg Ra:s«>411tlon No . 0 -OfM9.C'4 wa dliyadlllJt&:tbytfleCity C.Q uocl ol'th~C ltyaf S;inJ
C;r;ii nl) e Re 1£f mee · og thet'eof helij lhc 9 'I of Scplern!ler 2006, by tis folla11 ng vote :
AYES . OOUNCt ME 19ERS : 9-lhpa!!!. Stlto, Ml~ S~rdlin Noes: COUNC MEMBER: <>ne
AS SENT; COU C1L IAB IBER Hert, Allevato
--/J 1W~~·f-// k__ '---
r._,AAoARlit R IAONAfWJ, City rt
.J
2 uf2
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ATTACHMENT 13
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3
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6
7
FIVE-VEAR AGREEMENT
BETWEEN THE
CITY OF SAN JUAN CAPISTRANO
AND THE
COUNTY OF ORANGE
THIS AGREEMENT, entered into this First day of May 2015, which
s date is enumerated for purposes of reference only, by and between the CITY OF
9 SAN JUAN CAPISTRANO, hereinafter referred to as "CITY" and the COUNTY OF
10 ORANGE, a political subdivision of the State of California, hereinafter referred to as
11 "COUNTY."
12 WITNESSETH:
13 WHEREAS, CITY wishes to contract with COUNTY for law
14 enforcement services; and
15 WHEREAS, COUNTY is agreeable to the rendering of such services,
16 as authorized in Government Code Sections 51301 and 55632, on the terms and
i7 conditions hereinafter set forth.
18 NOW, THEREFORE, IT IS MUTUALL V AGREED AS FOLLOWS:
19 II
20 II
21 II
22 II
23 //
24 II
25 //
26 II
21 II
28 //
Page 1 of 26
ATTACHMENT 14
TABLE OF CONTENTS
2
3 SECTION PAGE
4 A. Term 3
5 8. Optional Termination 3
6 c. Regular Services by COUNTY 3
7 D. Enhanced and Supplemental Services by County 7
8 E. Patrol Video Systems 9
9 F. Licensing Services by CITY 11
10 G. Payment 11
11 H. Notices 17
12 I. Status of COUNTY 18
13 J. State Audit 18
14 K. Alteration of Terms 19
15 L. Indemnification 19
16 M. Traffic Violator Apprehension Program 20
17 N. Mobile Data Computers 23
18 0. E-Citation Units 24
19 Signature Page 26
20 II
21 II
22 II
23 II
24 II
25 II
26 II
27 II
28 II
Page 2 of 26
ATTACHMENT 14
A.
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TERM:
The term of this Agreement shall. be for five (5) years, commencing July 1,
2015 and terminating June 30, 2020, unless earlier terminated by either party
in the manner set forth herein.
OPTIONAL TERMINATION:
COUNTY or CITY may terminate ·this Agreement, without cause, upon one-
hundred and eighty (180) days written notice to the other party.
REGULAR SERVICES BY COUNTY:
1. COUNTY, through its Sheriff-Coroner and deputies, officers and
employees, hereinafter referred to as "SHERIFF," shall render to CITY law
enforcement services as hereinafter provided. Such services shall include
the enforcement of lawful State statutes and lawful municipal ordinances of
CITY other than licensing ordinances.
2. The night, day and evening patrol and supervisory shifts will be established
by SHERIFF. Personnel of each shift may work varying and different times
and may be deployed to other shifts when, in the opinion of SHERIFF and
CITY Manager, the need arises. Any long-term shift deployment change
will be reported to the City Council.
3. Each fiscal year, COUNTY shall submit to CITY, in writing, a
recommended level of service for the following fiscal year. CITY shall
remit to COUNTY, in writing, its response to the recommended level of
service. If the parties are unable to agree by June 30 of any fiscal year on
the level of service to be provided by COUNTY to CITY or on the amount
to be paid by CITY for services to be provided by COUNTY for the
following fiscal year, this Agreement will terminate as of September 30 of
the following fiscal year. If the parties do not agree by June 30 on the level
of service and cost of service for the following fiscal year, between July 1
and September 30 of the following fiscal year, COUNTY will provide
Page 3 of 26
ATTACHMENT 14
c. REGULAR SERVICES BY COUNTY: (Continued)
2 the level of service provided in preceding fiscal year, and CITY shall be
3 obligated to pay the costs of such services. The full cost of such services
A may exceed the cost of similar services provided in the prior fiscal year. ..
5 4. The level of service, other than for licensing, to be provided by the
6 COUNTY for the period July 1, 2015 through June 30, 2016, shall be as
7 follows:
B Management:
9 • One (1) Lieutenant
10 Supervision:
11 • Four (4) Sergeants -Patrol
12 (each 80 hours per two week pay period)
13 • One (1) Sergeant -Administrative
14 (80 hours per two-week pay period)
15 Investigation Services:
16 • Two (2) Investigators
17 (each 80 hours per two-week pay period)
18 Patrolffraffic Services:
19 • Fourteen (14) Deputy Sheriff lls -Patrol
20 (each 80 hours per two-week pay period)
21 • One (1) Deputy Sheriff II -Special Enforcement
22 (Directed Enforcement Team-· DET)
23 (80 hours per two-week pay period}
24 • Three (3) Deputy Sheriff lls ·· Motorcycle
25 (each 80 hours per two-week pay period)
2 6 Deployment to be determined by SHERIFF in cooperation with CITY
27 manager.
28 II
Page 4 of 26
ATTACHMENT 14
c.
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REGULAR SERVICES BY COUNTY: (Continued)
Community Support Unit:
• One (1) Deputy Sheriff II
(80 hours per two-week pay period)
• One (1) Crime Prevention Specialist
(80 hours per two-week pay period)
Parking Control:
• Two (2) Community Services Officers
(each 80 hours per two-week pay period)
Regional I Shared Staff:
• 7.91 percent of sixty one hundredths of one (0.60) Sergeant -Traffic
• 7 .91 percent of four (4) Deputy Sheriff lls -Traffic
• 7 .91 percent of two (2) Investigative Assistants -Traffic
• 7.91 percent of one (1) Office Specialist -Traffic
• 5.38 percent of thirty one hundredths of one (0.30) Sergeant -
Auto Theft
• 5.38 percent of two (2) Investigators -Auto Theft
• 5".38 percent of one (1) Investigative Assistant -Auto Theft
• 5.38 percent of one (1) Office Specialist -Auto Theft
• 12.21 percent of one (1) Sergeant -Directed Enforcement Team (DET)
• 12.21 percent of one (1) Investigator -Directed Enforcement Team (DET)
• 6 . 97 percent of one ( 1) Office Specialist -Subpoena
• 13.86 percent of two (2) Investigative Assistants -Court
• 9 .38 percent of one half of one (0 .50) Motorcycle Sergeant
5. For any service listed in Subsection C-4 of this Agreement that is provided
to CITY at less than 100% of a full-time SHERIFF position , COUNTY
retains the option to terminate such service in the event the other city or
cities which contract(s) for the balance of the time of the employee
Page 5 of 26
ATTACHMENT 14
c.
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REGULAR SERVICES BY COUNTY: (Continued)
providing the service no longer pay(s) for such service and CITY does not
request the Agreement be amended to pay 100% of the cost of the
employee providing such service. The Maximum Obligation of CITY set
forth in Subsection G-3 will be adjusted accordingly.
6. All services contracted for in this Agreement may not be operational on the
precise date specified in this Agreement. In those instances, SHERIFF
shall notify CITY Manager of the date or dates such service or services are
to be implemented. SHERIFF shall reduce the monthly charges to CITY,
based on the actual date of implementation of the service or services.
Charges shall be reduced on the next monthly billing tendered in
accordance with Subsection G-6 of this Agreement.
7. During emergencies, such as a mutual aid situation, SHERIFF will attempt
to leave in CITY the Lieutenant in charge of CITY Police Services. If
SHERIFF determines that the Lieutenant is needed elsewhere, SHERIFF
will notify CITY's Manager within four (4) hours. SHERIFF will return the
Lieutenant to CITY as soon as possible once the emergency situation is
under control.
8. With respect to the licensing ordinances of CITY listed in Attachment A
hereto, which is incorporated · herein by this reference, SHERIFF shall
receive applications for CITY licenses pursuant to said ordinances and
complete investigations relating to such applications. Said investigations
shall be forwarded to CITY Manager. COUNTY shall not provide any
advisory, administrative, hearing or litigation attorney support or services
related to licensing. COUNTY shall not provide any administrative or
investigatory services related to the licensing ordinances listed in
Attachment A, hereto, except the investigations relating to initial
applications for which this subsection provides.
Page 6 of 26
ATTACHMENT 14
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c.
D.
1.
2.
REGULAR SERVICES BY COUNTY: (Continued)
9. COUNTY or CITY, upon thirty (30) days notice and mutual written
agreement; shall increase or decrease the service levels provided herein,
and the obligation of CITY to pay for services shall be concomitantly
adjusted.
ENHANCED AND SUPPLEMENTAL SERVICES BY COUNTY:
Enhanced services for events on CITY property . At the request of CITY,
through its City Manager, SHERIFF may provide enhanced law enforcement
services for functions, such as community events, conducted on property that is
owned, leased or operated by CITY. SHERIFF shall determine personnel and
equipment needed for such enhanced services. To the extent the services
provided at such events are at a level greater than that specified in Subsection
C-4 of this Agreement, CITY shall reimburse COUNTY for such additional
services, at an amount computed by SHERIFF, based on the current year's
COUNTY law enforcement cost study. The cost of these enhanced services
shall be in addition to the Maximum Obligation of CITY set forth in Subsection
G-3 of this Agreement. SHERIFF shall bill CITY immediately after each such
event.
Suppl emental se rvices for occasional events operated by private individuals
and entities on non -CITY property. At the request of CITY, through its City
Manager, and within the limitations set forth in this subsection D-2, SHERIFF
may provide supplemental law enforcement services to preserve the peace at
special events or occurrences that occur on an occasional basis and are
operated by private individuals or private entities on non·CITY property.
SHERIFF shall determine personnel and equipment needed tor such
supplemental services, and will provide such supplemental services only if
SHERIFF is able to do so without reducing the normal and regular ongoing
services that SHERIFF otherwise would provide to CITY pursuant to this
Page 7 of 26
ATTACHMENT 14
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D. ENHANCED AND SUPPLEMENTAL SERVICES BY COUNTY: (Continued)
Agreement. Such supplemental services shall be provided only by regularly
appointed full-time peace officers, at rates of pay governed by a Memorandum
of Understanding between COUNTY and the bargaining unit(s) representing
the peace officers providing the services. Such supplemental services shall
include only law enforcement duties and shall not include services authorized
to be provided by a private patrol operator, as defined in Section 7582.1 of the
Business and Professions Code. Law enforcement support functions,
including, but not limited to, clerical functions and forensic science services,
may be per1ormed by non-peace officer personnel if the services do not
involve patrol or keeping the peace and are incidental to the provision of law
enforcement services. CITY shall reimburse COUNTY its full, actual costs of
providing such supplemental services at an amount computed by SHERIFF,
based on the current year's COUNTY law enforcement cost study. The cost
of these supplemental services shall be in addition to the Maximum Obligation
of CITY set forth in Subsection G-3 of this Agreement. SHERIFF shall bill
CITY immediately after each such event.
3. Su pp lem e nta l services for e ve nts operated _ by public entities on non-CITY
property. At the request of CITY , through its City Manager, and within the
limitations set forth in this subsection 0-3, SHERIFF may provide
supplemental law enforcement services to preserve the peace at special
events or occurrences that occur on an occasional basis and are operated by
public entities on non-CITY property. SHERIFF shall determine personnel and
equipment needed for such supplemental services, and will provide such
supplemental services only if SHERIFF is able to do so without reducing
services that SHERIFF otherwise;: would provide to CITY pursuant to this
Agreement CITY shall reimburse COUNTY its full, actual costs of providing
such supplemental services at an amount computed by SHERIFF, based on
Page 8 of 26
ATTACHMENT 14
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D.
E.
ENHANCED AND SUPPLEMENTAL SERVICES BY COUNTY: (Continued)
the current year's COUNTY law enforcement cost study. The cost of these
supplemental services shall be in addition to the Maximum Obligation of CITY
set forth in Subsection G-3 of this Agreement. SHERIFF shall bill CITY
immediately after each such event.
4. Notwithstanding the foregoing, CITY, through its permit process, may utilize the
services of SHERIFF at events,· for which CITY issues permits, that are
operated by private individuals or entities or public entities. SHERIFF shall
determine personnel and equipment needed for said events. If said events
are in addition to the level of services listed in Subsection C-4 of this
Agreement, CITY shall reimburse COUNTY for such additional services at an
amount computed by SHERIFF, based upon the current year's COUNTY law
enforcement cost study. The cost of these services shall be in addition to the
Maximum Obligation of CITY set forth in Subsection G-3 of this Agreement.
SHERIFF shall bill CITY immediately after said services are rendered.
5. In accordance with Government Code 51350, COUNTY has adopted Board
Resolution 89-1160 which identifies Countywide services, including but not
limited to helicopter response. SHERIFF through this contract provides
enhanced helicopter response services. The cost of enhanced helicopter
response services is included in the cost of services set forth in Subsection G-
2 and in the Maximum Obligation of CITY set forth in Subsection G-3 .
COUNTY shall not charge any additional amounts for enhanced helicopter
services after the cost of services set forth in Subsection G -2 and in the
Maximum Obligation set forth in Subsection G-3 has been established in any
fiscal year without written notification to the CITY.
PATROL VIDEO SYSTEMS:
1. As part of the law enforcement seivices provided to CITY, COUNTY has
provided, or will provide patrol video systems (hereinafter called "PVS ")
Page 9 of 26
ATTACHMENT 14
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E. PATROL VIDEO SYSTEMS: (Continued)
that will be mounted in the patrol vehicles designated by COUNTY for use
within CITY service area.
2. SHERIFF has the exclusive right to use said PVS for law enforcement
services related to this Agreement.
3. CITY shall pay COUNTY the full costs to COUNTY of a) the acquisition and
installation of Patrol Video Systems that are or will be mounted in patrol
vehicles assigned to CITY, and b) recurring costs, as deemed necessary by
COUNTY, including the costs of maintenance and contributions to a fund for
replacement and upgrade of such PVS when they become functionally or
technologically obsolete.
The costs to be paid by CITY for recurring costs, including maintenance and
replacement/upgrade of PVS, are included in the costs set forth in
Subsection G-2 and the Maximum Obligation of CITY set forth in Subsection
G-3 of this Agreement unless CITY has already paid such costs. CITY shall
not be charged additional amounts for maintenance or replacement/upgrade
of said PVS during the period July 1, 2015 through June 30, 2016.
4. If, following the initial acquisition of PVS referenced above, CITY requires
PVS for additional patrol cars designated for use in the CITY service area,
COUNTY will purchase said additional PVS. Upon demand by COUNTY,
CITY will pay to COUNTY a) the full costs of ac quisition and installation of
said additional PVS, and b) the full recurring costs for said PVS, as deemed
necessary by COUNTY, including the costs of maintenance, and
contributions to a fund for replacem e nt an d upgrade of such PV S when they
become functionally or technologica lly o bso lete . Said costs related to
additional PVS are not included in , and are in add itio n to, the costs set forth
in Subsection G-2 and the Maximum Obligation of CITY set forth in
Subsection G-3 of this Agreement.
Page 10 of 26
ATTACHMENT 14
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PATROL VIDEO SYSTEMS: (Continued)
5. County will replace and/or l:lpgrade PVS as needed. The costs of
replacing/upgrade PVS shall be paid by COUNTY from the
repiacement/upgrade funds to be paid by CITY in accordance with the
foregoing. CITY shall not be charged any additional charge to replace or
upgrade PVS.
LICENSING SERVICES BY CITY:
Upon receipt from SHERIFF of investigations of applications for licenses
referred to in Subsection C-8 of this Agreement, CITY Manager shall
determine whether to grant or deny the licenses and will issue the licenses or
notify the applicants of denial. CITY shall provide all attorney services related
to the granting, denial, revocation and administration of said licenses and the
enforcement of CITY ordinances pertaining to said licenses.
PAYMENT:
1. Pursuant to Government Code Section 51350, CITY agrees to pay to
COUNTY the full costs of performing the services mutually agreed upon in
this Agreement. The cost of services includes salaries, wages, benefits,
mileage, services, supplies, equipment, and divisional, departmental and
COUNTY General overhead.
2. Unless the level of service described in Subsection C-4 is increased or
decreased, or CITY is required to pay for increases as set forth in
Subsection G-4 , the cost of services described in Subsection C-4 of this
Agreement, other than Licensing Services, to be provided by the COUNTY
for the period July 1, 2015 through June 30, 2016, shall be as follows:
SERVICE
Management:
• One (1) Lieutenant
@ $319,245/each
Page 11 of 26
COST OF SERVICE
$ 319,245
ATTACHMENT 14
G. PAYMENT: (Continued)
2 SERVICE COST OF SERVICE
3 Supervision:
4 • Four (4) Sergeants -Patrol
sl @ $277,869/each $ 1, 111,476
6 • One (1) Sergeant -Administrative
7 @ $277,869/each $ 277,869
8 Investigation Services:
9 • Two (2) Investigators
10 @ $275,999/each $ 551,998
11 Patrol/Traffic Services:
12 • Fourteen (14) Deputy Sheriff lls -Patrol
13 1 @ $230,739/each $ 3,230,346
14 • One (1) Deputy Sheriff II -Special Enforcement
15 (Directed Enforcement Team -DET)
16 @ $230, 739/each $ 230,739
17 • Three (3) Deputy Sheriff lls -Motorcycle
18 @ $235,922/each $ 707,766
19 Community Support Unit:
20 • One (1) Deputy Sheriff II
21 @ $230,739/each $ 230,739
22 • One (1) Crime Prevention Specialist
23 @ $92,906/each $ 92,906
24 Parking Control:
25 • Two (2) Community Services Officers
26 @ $114,356/each $ 228,712
27 II
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Page 12 of 26
ATTACHMENT 14
G. PAYMENT: (Continued)
2 SERVICE COST OF SERVICE
3 Regional I Shared Staff:
4 .. 7 .91% of sixty one hundredths of one (0.60) Sergeant -Traffic
5 @ $281 ,289leach $ 13,350
6 • 7.91% of four (4) Deputy Sheriff lls -Traffic
7 @ 245,706leach $ 77,741
8 • 7 .91 % of two (2) Investigative Assistants -Traffic
9 @ $115,074leach $ 18,205
10 • 7.91 % of one (1) Office Specialist -Traffic
11 @ $92,928/each $ 7,351
12 • 5.38% of thirty one hundredths of one (0.30) Sergeant -Auto Theft
13 @ $280,5131each $ 4,527
14 • 5.38% of two (2) Investigators -Auto Theft
15 @ $251,035/each $ 27,011
16 • 5 .38% of one (1) Investigative Assistant -Auto.Theft
17 @ $119,265/each $ 6,416
18 • 5.38% of one (1) Office Specialist-Auto Theft
19 @ $91,980/each $ 4,949
20 • 12.21% of one (1) Sergeant-Directed Enforcement Team (DET)
21 @ $379,854/each $ 46,380
22 • 12 .21% of one (1) Investigator-Directed Enforcement Team (DET)
23 @ $300,961/each $ 36,747
24 • 6.97% of one (1) Office Specialist -Subpoena
25 @ $84, 796/each $ 5,910
26 • 13.86% of two (2) Investigative Assistants -Court
2 7 @ $116,732/each $ 32,358
28 II
Page 13 of 26
ATTACHMENT 14
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2 8 II
PAYMENT: (Continued)
SERVICE COST OF SERVICE
• 9.38% of one half of one (0.50) Motorcycle Sergeant
@ $308,496leach
Other Charges and Credits:
$ 14,468
$ 1,176,721
Charges: Annual leave paydowns and apportionment of cost of
leave balances paid at end of employment; premium pay for
bilingual staff; contract administration; data line charges; direct
services and supplies; E-citation; enhanced helicopter response
services; fa~ility lease; holiday pay: comp and straight time;
Integrated Law & Justice Agency of Orange County; mobile data
computer (MDC) recurring · costs; on-call pay; overtime; patrol
training cost allocation; patrol video system (PVS) recurring costs;
retirement rate discount expenses (interest and cost of issuance);
training; transportation costs including vehicle fuel, mileage
interest for replacement vehicles and maintenance.
Credits: Local assistance funding; false · alarm fees; overtime rate
adjustment; reimbursement for training and miscellaneous
programs; retirement rate discount FY 2015-16.
TOT AL COST OF SERVICES $ 8.453.930
3. Unless the level of service described in Subsection C-4 is increased or
decreased, or CITY is required to pay for increases as· set forth in
Subsection G -4, the Maximum . Obligation of CITY for services, other than
Licensing Services that are referenced in Subsection C-4 of this Agreement
and rendered by COUNTY between July 1, 2015 and June 30, 2016, is
$8,453,930.
Page 14 of 26
ATTACHMENT 14
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G. PAYMENT: (Continued)
4-a. At the time this Agreement is executed, there are unresolved issues
pertaining to potential changes in salaries and benefits for COUNTY
employees. The costs of such potential changes are not included in the
FY 2015-16 cost set forth in subsection G-2 nor in the FY 2015-16
Maximum Obligation of CITY set forth in Subsection G-3 of this
Agreement. If the changes result in the COUNTY incurring or becoming
obligated to pay for increased cost for or on account of personnel whose
costs are included in the calculations of costs charged to CITY hereunder,
CITY shall pay COUNTY, in addition to the Maximum Obligation set forth
in Subsection G-3 of this Agreement, the full costs of said increases to the
extent such increases to the are attributable to work performed by such
personnel during the period July 1, 2015 through June 30, 2016, and
CITY's Maximum Obligation hereunder shall be deemed to have
increased accordingly. CITY shall pay COUNTY in full for such increases
on a pro-rata basis over the portion of the period between July 1, 2015
and June 30, 2016 remaining after COUNTY notifies CITY that increases
are payable. If the changes result in the COUNTY incurring or becoming
obligated to pay for decreased costs for or on account of personnel whose
costs are included in the calculations of costs charged to CITY hereunder,
COUNTY shall reduce the amount owed by the CITY to the extent such
decreases are attributable to work performed by such personnel during
the period July 1, 2015 through June 30, 2016, and CITY's Maximum
Obligation hereunder shall be deemed to have decreased accordingly.
COUNTY shall reduce required payment by CITY in full for such
decreases on a pro-rata basis over the portion of the period between July
1, 2015 and June 30, 2016 remaining after COUNTY notifies CITY that
the Maximum Obligation has decreased.
Page 15 of 26
ATTACHMENT 14
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G.
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PAYMENT: (Continued)
4-b. If CITY is required to pay for increases as set forth in Subsection G-4a
above, COUNTY, at the request of CITY, will thereafter reduce the level
of service to be provided to CITY pursuant to Subsection C-4 of this
Agreement to a level that will make the Maximum Obligation of CITY
hereunder for the period July 1, 2015 through June 30, 2016 an amount'
specified by CITY that is equivalent to or higher than the Maximum
Obligation set forth in Subsection G-3 for said period at the time this
Agreement originally was executed. The purpose of such adjustment of
service levels will be to give CITY the option of keeping its Maximum
Obligation hereunder at the pre-increase level or at any other higher or
lower level specified by CITY. In the event of such reduction in level of
service and adjustment of costs, the parties shall execute an amendment
to this Agreement so providing. Decisions about how to reduce the level
of service provided to CITY shall be made by SHERIFF with the approval
of CITY.
5. The Maximum Obligation of CITY for services provided for the 12-month
periods commencing July 1, 2016, 2017, 2018 and 2019, will be
determined annually by COUNTY and approved by CITY.
6. COUNTY shall invoice CITY monthly, one-twelfth (1/12) of the Maximum
Obligation of CITY. If a determination is made that increases described in
Subsection G-4 must be paid, COUNTY thereafter shall include the pro-
rata charges for such increases in its monthly invoices to CITY for the
balance of the period between July 1, 2015 and June 30, 2016.
7. CITY shall pay COUNTY in accordance with COUNTY Board of
Supervisors' approved County Billing Policy, which is attached hereto as
Attachment B. and incorporated herein by this reference .
Page 16 of 26
ATTACHMENT 14
G. PAYMENT: (Continued)
2 8. COUNTY shall charge CITY late payment penalties in accordance with
s County Billing Policy.
4 9. As payment for the Licensing Services described in Subsection C-8 of this
5 Agreement, COUNTY shall retain all fees paid by applicants for licenses,
6 pursuant to CITY ordinances listed in Attachment A hereto. Retention of
1 said fees by COUNTY shall constitute payment in full to COUNTY for costs
a incurred by COUNTY in performing the functions related to licensing
g described in Subsection C-8; p(ovided, however, that if any of said fees are
10 waived or reduced by CITY, CITY shall pay to COUNTY the difference
11 between the amount of fees retained by COUNTY and the fees that were
12 set forth in the ordinances listed in Attachment A as of July 1, 2015.
13 Should CITY increase the fee schedule for the licensing ordinances set
14 forth in Attachment A, either party shall have the right to seek amendment
15 of this Agreement with respect to the division of the increased fees
16 between CITY and COUNTY.
11 10. Fees generated or collected by SHERIFF contract personnel for copying of
1s documents related to the services provided in this Agreement will be at
19 COUNTY~established rates and will be credited to CITY on an annual
20 basis.
21 11. Narcotic asset forfeitures will be handled pursuant to Attachment C hereto,
22 which is incorporated herein by this reference.
23 H. NOTICES:
24 1. Except for the notices provided for in Subsection 2 of this Section, all
2s notices authorized or required by this Agreement shall be effective when
26 written and deposited in the United States mail, first class postage prepaid
27 and addressed as follows:
2s II
Page 17 of 26
ATTACHMENT 14
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NOTICES: (Continued)
CITY: ATIN: CITY MANAGER
32400 PASEO ADELANTO
SAN JUAN CAPISTRANO, CA 92675
COUNTY: ATIN: CONTRACT MANAGER
SHERIFF-CORONER DEPARTMENT
320 NORTH FLOWER STREET, SUITE 108
SANTA ANA, CA 92703
2. Termination notices shall be effective when written and deposited in the
United States mail, certified, return receipt requested and addressed as
above.
STATUS OF COUNTY:
COUNTY is, and shall at all times be deemed to be, an independent
contractor. Nothing herein contained shall be construed as creating the
relationship of employer and employee, or principal and agent, between CITY
and COUNTY or any of COUNTY's agents or employees. COUNTY and its
SHERIFF shall retain all authority for rendition of services, standards of
performance, control of personnel, and other matters incident to the
performance of services by COUNTY pursuant to this Agreement. COUNTY,
its agents and employees, shall not be entitled to any rights or privileges of
CITY employees and shall not be considered in any manner to be CITY
employees.
STATE AUDIT:
Pursuant to Government Code Section 8546.7, CITY and COUNTY shall be
subject to examination and audit by the State Auditor for a period of three (3)
years after final payment by CITY to COUNTY under this Agreement. CITY
and COUNTY shall retain all records relating to the performance of this
Agreement for said three-year period , except that records pertaining to any
Page 18 of 26
ATTACHMENT 14
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STATE AUDIT: (Continued)
audit then in progress, or any claim or litigation shall be retained beyond said
three-year period until final resolution of said audit, claim or litigation.
Al TERATION OF TERMS:
This Agreement fully expresses all understanding of CITY and COUNTY with
respect to the subject matter of this Agreement, and shall constitute the total
Agreement between the parties for these purposes. No addition to, or
alteration of, the terms of this Agreement shall be valid unless made in writing,
formally approved and executed by duly authorized agents of both parties.
INDEMNIFICATION:
1. COUNTY, its officers, agents, employees, subcontractors and independent
contractors shall not be deemed to have assumed any liability for the
negligence or any other act or omission of CITY or any of its officers, agents,
employees, subcontractors or independent contractors, or for any dangerous
or defective condition of any public street or work or property of CITY, or for
any illegality or unconstitutionality of CITY's municipal ordinances. CITY
shall indemnify and hold harmless COUNTY and its elected and appointed
officials, officers, agents, employees, subcontractors and independent
contractors from any claim, demand or liability whatsoever based or asserted
upon the condition of any public street or work property of CITY, or upon the
illegality or unconstitutionality of any municipal ordinance of CITY that
SHERIFF has enforced, or upon any act or omission of CITY, or its elected
and appointed officials , officers , agents, employees, subcontractors or
independent contractors related to this Agreement , including, but not limited
to, any act or omission related to the maintenance or condition of any vehicle
or motorcycie that is owned or possessed by CITY and used by COUNTY
personnel in the performance of this Agreement, for property damage, bodily
injury or death or any other element of damage of any kind or nature, and
Page 19 of 26
ATTACHMENT 14
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INDEMNIFICATION: (Continued)
CITY shall defend, at its expense including attorney fees, and with counsel
approved in writing by COUNTY, COUNTY and its elected and appointed
officials, officers, agents , employees, subcontractors and independent
contractors in any legal action or claim of any kind based or asserted upon
such condition of public street or work or property , or illegality or
unconstitutionality of a municipal ordinance, or alleged acts or omissions. If
judgment is entered against CITY and COUNTY by a court of competent
jurisdiction because of the concurrent active negligence of either party, CITY
and COUNTY agree that liability will be apportioned as determined by the
court. Neither party shall request a jury apportionment.
2. COUNTY shall indemnify and hold harmless CITY and its elected and
appointed officials, officers, agents, employees, subcontractors and
independent contractors from any claim, demand or liability whatsoever
based or asserted upon any act or omission of COUNTY or its elected and
appointed officials, officers, agents, employees, subcontractors or
independent contractors related to this Agreement, for property damage,
bodily injury or death or any other element of damage of any kind or nature,
and COUNTY shall defend, at its expense, including attorney fees, and with
counsel approved in writing by CITY, CITY and its elected and appointed
officials, officers, agents, employees, subcontractors and independent
contractors in any legal action or claim of any kind based or asserted upon
such alleged acts or omissions.
TRAFFIC VIOLATOR APPREHENSION PROGRAM:
1 . COUNTY has established a Traffic Violator Apprehension Program ["the
Program"], which is operated by SHERIFF, and is designed to reduce
vehicle accidents caused by unlicensed drivers and drivers whose licenses
are suspended and to educate the public about the requirements of the
Pag e 2 0 of 26
ATTACHMENT 14
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M. TRAFFIC VIOLATOR APPREHENSION PROGRAM: (Continued)
Vehicle Code and related safety issues with regard to driver licensing,
vehicle registration, vehicle operation, and vehicle parking. The Program
operates throughout the unincorporated areas of the COUNTY and in the
cities that contract with COUNTY for SHERIFF's law enforcement seNices,
without regard to jurisdictional boundaries, because an · area-wide
approach to reduction of traffic accidents and driver education is most
effective in preventing traffic accidents. In order for CITY to participate in
the Program, CITY has adopted a fee pursuant to Vehicle Code section
22850.5, in the amount and under the terms and conditions set forth in the
TV AP resolution that is attached to this Agreement as Attachment D and
incorporated into this Agreement by reference, and has directed that the
revenue from such fee be used for the Program. CITY's participation in
the Program may be terminated at any time by rescission or amendment of
the TVAP resolution that is attached to this Agreement as Attachment D.
In the event CITY 1} amends said TVAP resolution, or rescinds said TVAP
resolution and adopts a new TV AP resolution pertaining to the above-
referenced fee and the Program, and 2) remains a participant in the
Program thereafter, CITY's Manager, on behalf of CITY. and SHERIFF, on
behalf of COUNTY, have authority to execute an amendment to this
Agreement to substitute CITY's amended or new TVAP resolution for
Attachment 0 to the Agreement, as long as said amendment to this
Agreement does not materially change any other provision of this
Agreement.
2 . COUNTY will make available for review, at the request of CITY, all financial
data related to the Program as may be requested by CITY.
3. Fee revenue generated by COUNTY and participating cities will be used to
fund the following positions, which will be assigned to the Program:
Page 21of26
ATTACHMENT 14
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TRAFFIC VIOLATOR APPREHENSION PROGRAM: (Continued)
• Ten one hundredths of one (0.10) Sergeant
(8 hours per two-week pay period)
• One ( 1 ) Staff Specialist
(80 hours per two-week pay period)
• One (1) Office Specialist
(80 hours per two-week pay period)
4. Fee revenue generated by CITY may be used to reimburse CITY for
expenditures for equipment and/or supplies directly in support of the Program.
In order for an expenditure for equipment and/or supplies to be eligible for
reimbursement, CITY shall submit a request for and obtain pre-approval of the
expenditure by using the form as shown in Attachment E. The request shall
be submitted within the budget schedule established by SHERIFF. SHERIFF
shall approve the expenditure only if both of the following conditions are
satisfied: 1) there are sufficient Program funds, attributable to revenue
generated by CITY's fee, to pay for the requested purchase, and 2) CITY will
use the equipment and/or supplies, during their entire useful life, only for
purposes authorized by its TVAP resolution in effect at the time of purchase.
In the event that CITY terminates its participation in the Program, CITY agrees
that the equipment purchased by CITY and reimbursed by Program funds will
continue to be used, during the remainder of its useful life, exclusively for the
purposes authorized by CITY's TVAP resolution in effect at the time of
purchase.
In the event the fees adopted by COUNTY, CITY and other participating
jurisdictions are not adequate to continue operation of the Program at the level
at which it operated previously, COUNTY, at the option of CITY, will reduce
the level of Program service to be provided to CITY or will continue to provide
the existing level of Program services. COUNTY will charge CITY the cost of
Page 22 of 26
ATTACHMENT 14
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TRAFFIC VIOLATOR APPREHENSION PROGRAM: (Continued)
any Program operations that exceed the revenue generated by fees. Such
charges shall be in addition to the Maximum Obligation of CITY set forth in
Subsection G-3 of this Agreement. The amount of any revenue shortfall
charged to CITY will be determined, at the time the revenue shortfall is
experienced, according to CITY's share of Program services r.endered. In the
event of a reduction in level of Program service, termination of Program
service or adjustment of costs, the parties shall execute an amendment to the
Agreement so providing. Decisions about how to reduce the level of Program
service provided to CITY shall be made by SHERIFF with the approval of
CITY.
MOBILE DATA COMPUTERS:
1. As part of the law enforcement services to be provided to CITY, COUNTY
has provided, or will provide, 'mobile data computers (hereinafter called
"MDCs") that are or will be mounted in patrol vehicles and motorcycles,
designated by COUNTY for use within CITY limits.
2. SHERIFF has the exclusive right to use said MDCs for law enforcement
services related to this Agreement.
3. CITY shall pay COUNTY the full costs to COUNTY of a) the acquisition
and installation of MDCs that are or will be mounted in patrol vehicles and
motorcycles assigned to CITY, and b) recurring costs, as deemed
necessary by COUNTY, including the costs of maintenance and
contributions to a fund for replacement and upgrade of such MDCs when
they become functionally or technologically obsolete.
The costs to be paid by CITY for recurring costs, including maintenance
and replacement/upgrade of MDCs, are included in the costs set forth in
Subsection G-2 and the Maximum Obligation of CITY set forth in
Subsection G-3 of this Agreement unless CITY has already paid such
Page 23 of 26
ATTACHMENT 14
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MOBILE DATA COMPUTERS: (Continued)
costs. CITY shall not be charged additional amounts for maintenance or
replacement/upgrade of said MDCs during the period July 1, 2015 through
June 30, 2016.
4. If, following the initial acquisition of MDCs referenced above, CITY requires
MDCs tor additional patrol cars or motorcycles designated tor use in the
CITY, or for CITY's Emergency Operations Center, COUNTY will purchase
said additional MDCs. Upon demand by COUNTY, CITY will pay to
COUNTY a) the full costs of acquisition and installation of said additional
MDC's, and b) the full recurring costs for said MDCs, as deemed
necessary by COUNTY, including the costs of maintenance, and
contributions to a fund for replacement and upgrade of such MDCs when
they become functionally or teC?hnologically obsolete. Said costs related to
additional MDCs are not included in, and are in addition to, the costs set
forth in Subsection G-2 and the Maximum Obligation of CITY set forth in
Subsection G~3 of this Agreement.
5. COUNTY will replace and/or upgrade MDCs as needed. The costs of
replacing/upgrading MDCs shall be paid by COUNTY from the
replacement/upgrade funds to be paid by CITY in accordance with the
foregoing. CITY shall not be charged any additional charge to replace or
upgrade MDCs.
E~CITATION UNITS:
1. As part of the law enforcement services to be provided to CITY, COUNTY
has provided, or will provide, E-Citation units designated by COUNTY for
use within CITY limits.
2. SHERIFF has the exclusive right to use said E-Citation units for law
enforcement services related to this Agreement.
3. CITY shall pay COUNTY the full costs to COUNTY of a) the acquisition of
Page 24 of 26
ATTACHMENT 14
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0. E~CITATION UNITS: (Continued)
E-Citation units that are assigned to CITY, and b) recurring costs, as deemed
necessary by COUNTY, including the costs of maintenance and contributions
to a fund for replacement and upgrade of such E-Citation units when they
become functionally or technologically obsolete.
The costs to be paid by CITY tor recurring costs, including maintenance and
replacement/upgrade of E-Citation units, are included in the costs set forth in
Subsection G-2 and the Maximum Obligation of CITY set forth in Subsection
G-3 of this Agreement unless CITY has already paid such costs. CITY shall
not be charged additional amounts for maintenance or replacement/upgrade
of said E-Citation units during the period July 1, 2015 through June 30,
2016.
4. If, following the initial acquisition of E-Citation units referenced above, CtTY
requires E-Citation units designated for use in CITY, COUNTY will purchase
said additional E-Citation units. Upon demand by COUNTY, CITY will pay to
COUNTY a) the full costs of acquisition of said additional E-Citation units,
and b) the full recurring costs for said E-Citation units, as deemed necessary
by COUNTY, including the costs of maintenance, and contributions to a fund
for replacement and upgrade of such E-Citation units when they become
functionally or technologically obsolete. Said costs related to additional
E-Citation units are not included in, and are in addition to, the costs set forth
in Subsection G-2 and the Maximum Obligation of CITY set forth in
Subsection G-3 of this Agreement.
5. COUNTY will replace and/or upgrade E-Citation units as needed. The costs
of replacing/upgrading E-Citation units shall be paid by COUNTY from the
replacement/upgrade funds to be paid by CITY in accordance with the
foregoing. CITY shall not be charged any additional charge to replace or
upgrade E-Citation units.
Page 2 5 of 26
ATTACHMENT 14
IN WITNESS WHEREOF, the parties have executed the AGREEMENT
2 in the Gou ty of _ range, State of California.
3 I ! f 1· ~-.
.;'f
• I ' I
Ii I
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CITY OF SAN JUAN CAPISTRANO
s ATIEST: -,~ I ~-""'"''-T--+-'\-+>'._.__ _____ ~
6 .. "." \Cify Clerk
\_-/,; \
7 v
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APPROVED AS.. TO FORM:
svQ-;r;zJ3wi .--------c1 ttorney
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12 DATED:
13
COUNTYOFO
i4
15 BY :
16
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18 SIGNED AND CERTIFIED THAT A COPY OF THIS
19 AGREEMENT HAS BEEN DELIVERED TO THE CHAIR
OF THE BOARD PER G.C. Sec. 25103, Reso 79-1535
20 AttesL: ~· ? , \--..., ,(
l 'I / ) .I (':r
21 r// '//L'.(v'\ -· ·' 0 :-· .. ._,. .'\ : _/1,,~ '-t c. _ -"" 1 ,r fl bli re<-_,,..., __ , -
2 ~, j3obin Stieler .... -· -
f Interim Clerk of the Board
23 County of Orange, California
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APPROVED AS TO FORM:
Office of the County Counsel
Orange County, California .
.. ·· ,/i .. !'
BY: ;~/'J ( {/k ,{'~,A:>.·------··
Deputy
-I /, DATED :___s;.k'--j/~'/_(~# -----
Page 26 of 26
ATTACHMENT 14
ATTACHMENT A
2 CITY OF SAN JUAN CAPISTRANO
3 ORDINANCE NO. 785 (5-24.01 MC)
4 ORDINANCE NO. 417 (5-18.02 MC)
5 ORDINANCE N0.869 ( 9-3.503 MC)
6 LICENSING
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8 DANCE INSTRUCTOR (NUDE)
9 DANCE STUDIO (NUDE)
10 ESCORT
11 ESCORT BUREAU
12 FIGURE MODEL (NUDE)
13 FIGURE MODEL STUDIO (NUDE)
14 GUN DEALER
15 INTERLOCUTRIX (NUDE)
16 INTRODUCTORY SERVICE
17 JUNK COLLECTOR
18 JUNK DEALER
19 MASSAGE PARLOR (Includes FBI Fees)
20 MASSAGIST (Includes FBI Fees)
21 PEDDLER
22 POOLROOM
23 PUBLIC DANCE
24 RAP SESSION (NUDE)
25 SECONDHAND DEALER (Pawnbroker)
26 TAXICAB ST AND
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ATTACHMENT 14
ATTACHMENT B
COUNTY BILLING POLICY
APPROVED BY BOARD MINUTE ORDER DATED OCTOBER 27, 1992
I. POLICY
All County agencies/departments/districts (County) governed by the Board of Supervisors
shall bill contracting entities for materials and/or services provided under contract in
accordance with the following standardized billing and collection policy. Billing frequency is
dependent on whether the contract is a fixed pi-ice or actual cost contract. Payment due
date is designed to be both responsive to the County's cash flow needs and reasonable
enough as to not require special processing by the contracting entity. If payments are not
received by the required due dates, a late payment fee shall be computed and billed to the
contracting entity in accordance with the requirements of this procedure.
Nothing herein shall affect the liability, including pre-judgment interest, of the contracting
party for services or materials in as much as this is a policy to enact standard billing
practices.
II. DEFINITIONS
A. Contract for the purposes of this policy -A contract is a formal written agreement, a
purchase order from the contracting entity, or any other acceptable mutual
understanding between the contracting parties.
B. Rec eived by the Countv -The phrase "received by the County", as used ln Section VI of
this policy, refers to the date a payment is received by the County. It is defined as the
date the payment is in the County's possession. It is not the date the payment is posted
or deposited by the County.
Ill. FIXED PRICE CONTRACTS
A. Fixed Price (One -Time/Non-Recurring Contracts) -Invoices that represent a billing for a
one-time, non-recurring provision of materials and/or services shall be issued no later
than five (5) working days after delivery by the County of the materials and/or services.
Examples of such one-time, non-recurring provision of materials and/or services might
be a city contracting with the Sheriff for security service at a parade or sporting event; or,
a city purchasing a computer listing containing certain city-requested data. Payment due
date shall be invoice date plus 30 days.
B . Fix ed Price (Ongoing/R ecurring Contracts ) -Invoices that represent a billing for an
ongoing, recurring provision of materials and/or services shall be issued according to the
following frequency :
1. Annual Billings that total $10,000 or less per 12-month period shall be billed via one
(1) annual invoice. Annual invoices will be issued for each 12-month period of the
contract, or portions thereof. Invoices shall be issued no later than five working days
after the beginning of each 12 -month period . Payment due date shall be invoice date
plus 30 days.
Page 1 of 4
ATTACHMENT 14
2. Quarterly Billings that are greater than $10,000 but not more than $200,000 per 12-
month period, shall be billed in quarterly installments. Quarterly invoices will be
issued representing the contract amount for each 12-month period of the contract, or
portions thereof, prorated into four (4) installments. Invoices shall be issued no later
than 30 days after the beginning of each quarter. Payment due date shall be 60 days
after the beginning of each calendar quarter.
3. Monthly Billings that are greater than $200,000 per 12-month period shall be billed in
monthly installments. Monthly invoices will be issued representing the contract
amount for each 12-month period of the contract, or portions thereof, prorated into 12
installments. Invoices shall be issued on ·or before the first day of each service
month. Payment due date shall be 30 days after the beginning of each service
month.
An example of a fixed price contract for ongoing, recurring provision of materials and/or
services might be a city contracting with the Sheriff for law enforcement services.
IV. ACTUAL COST CONTRACTS
A. Actual Cost (One-Time/Non-Recurring Contracts), -Invoices that represent a billing for a
one-time, non-recurring provision of materials and/or services shall be issued after
delivery by the County of the materials and/or services and no later than 15 days after
actual cost data is available. Payment due date shall be invoice date plus 30 days.
B. Actual Cost (Ongoing/Recurring Contracts} -Invoices that represent a billing for an
ongoing, recurring provision of materials and/or services shall be issued on a monthly
basis and shall represent the cost of materials and/or services provided to the
contracting entity during the previous calendar month. Such invoices shall be issued no
later than 15 days after the close of the monthly billing period. If the County
agency/department/district does not utilize a monthly billing cycle, the invoice shall be
issued no later than 15 days after actual cost data is available. Payment due date shall
be invoice date plus 30 days.
Examples of actual cost contracts for the ongoing, recurring provision of materials and/or
services might be a city contracting with the County for communications equipment
repair or waste disposal at a County landfill.
V. PAYMENT DUE DATES
Notwithstanding the provisions of Sections II and Ill above, payment due date shall be at
least invoice date plus 30 days. If the County is late in issuing an invoice , the contracting
entity would always have at least invoice date plus 30 days to pay. If the County is early in
issuing an invoice , the contracting entity would still have a payment due date of either 60
days after the beginning of the quarter (quarterly invoices) or 30 days after the beginning of
the service month (monthly invoices).
(EXAMPLES : An invoice tor October service , dated and issued October 8 (late) would have
a payment due date of November 7. An invoice for August service, dated and issued July 20
(early) would have a payment due date of August 30.)
Page 2 of 4
ATTACHMENT 14
VI. LATE CHARGES
The late payment of any invoiced amount by a contracting entity will cause the County to
incur costs not contemplated by the County/contracting entity agreement, the exact amount
of such cost will be extremely difficult to ascertain. Such costs include, but are not limited to,
costs such as administrative follow-up and processing of delinquent notices, increased
accounting costs, etc.
Late charges will be assessed in the following situations:
-Over-the-counter payments will be assessed a late charge if any payment is not received
by the County by the payment due date.
-Payments transmitted to the County via the U.S. Mail that have the payer's postage
meter mark will be assessed a late charge if any payment is not received by the County
by the payment due date plus one day.
-Payments transmitted to the County via the U.S. Mail that have a U.S. Post Office
postmark dated after the payment due date will be assessed a fate charge.
The late charge assessed in each of these situations shall be three-quarters of one percent
(0. 75%) of the payment due and unpaid plus $100.00 for late payments made within 30 days
of the payment due date. An additional charge of three-quarters of one percent (0.75%) of
said payment shall be added for each additional 30-day period that the payment remains
unpaid. Late charges shall be added to the payment and invoiced to the contracting entity in
accordance with this policy.
VII. COLLECTIONS
Any invoice remaining unpaid 90 days after the invoice date shall be referred to the Auditor-
Controller for subsequent collection action, such as deduction from contracting entity
moneys on deposit with the County Treasurer in accordance with Government Code Section
907 and any other applicable provision of law. Non-payment of invoices and applicable late
charges will constitute a breach of contract for which the County retains all legal remedies
including termination of the contract.
VIII. DISCOUNT FOR EARLY PAYMENT
Any payment received by the County from a contracting entity 20 days or more before the
payment due date shall be entitled to a discount of one-quarter of one percent (0 .2 5%). If
the contracting entity takes a discount, and the payment is received by the County less than
20 days before the payment due date , County staff shall immediately notify the contracting
entity by telephone that the discount should not have been taken and that the balance is due
by the original payment due date.
ff the balance is not received by the County in accordance with the dates as specified in
Section VII, applicable late charges shall be calculated on the balance due .
Page 3 of 4
ATTACHMENT 14
IX. DEFERRED REVENUE
At fiscal year end, any portion of revenue invoiced (not necessarily received) during the fiscal
year being closed out that represents charges or prepayment for materials and/or services
for the upcoming fiscal year shall be reclassified from a revenue account to a deferred
revenue account (liability). In the new fiscal year the deferred revenue shall be reclassified
to a revenue account. (EXAMPLE: On June 1, 19X1, a city is invoiced $48,000 which
represents charges for the 12-month period June 1, 19X1 to May 31, 19X2. The amount to
be reclassified to deferred revenue would be $44,000, representing 11 /12ths of the total
amount. In July 19X1, the $44,000 would be reclassified to revenue.) Reclassification
entries shall be made by Auditor-Controller Agency Accounting units, or for those
agencies/departments/districts without such a unit, the agency/department/district shall notify
the Auditor-Controller of the amounts to be reclassified.
X . COST RECOVERY
All County agencies/department/districts shall include all costs of providing contracted
services in contract rates. Including all direct costs, allocated indirect costs such as
departmental and County (CWCAP) overhead, and cost of capital financing.
XI. EXISTING CONTRACTS
Billing terms and provisions contained in existing contracting entity agreements (existing as
of the date this policy is approved by the Board of Supervisors) shall remain in effect for the
life of the contract. However, when these existing contracts are renegotiated, they shall
contain the billing provisions as set forth in this policy.
XII . DEVIATIONS FROM POLICY
Deviations from this policy shall be approved by the Board of Supervisors. Proposed
deviations by agencies/departments/districts shall be submitted to the CEO for concurrence
in advance of filing an Agenda Item Transmittal (AJT) with the Clerk of the Board. The CEO,
or his/her designee, shall advise the ag~ncy/department/district of approval or disapproval of
the proposed deviations. If a County agency/dep<;:1rtment/district submits a contract to the
Board of Supervisors for approval, and the billing provisions in the contract deviate from this
policy, the agency/department/district shall specifically advise the Board of Supervisors in
the AIT of the deviation, the reason for the deviation, and of the CEO's recommendation
relative thereto.
Page 4 of 4
ATTACHMENT 14
ATTACHMENT C
POLICY FOR DISTRIBUTION OF FORFEITED AND SEIZED ASSETS
BACKGROUND
The Orange County Sheriff's Department provides contract law enforcement services to cities in
Orange County . Because of the increased likelihood that contracted patrol or investigation
personnel may become involved in significant narcotic seizures, which could affect law enforcement
services provided by the Sheriff's Department to contract cities, the following policy is in effect.
1. NON-RNSP CONTRACTED PATROL AND INVESTIGATION OFFICERS
When assets (cash or property) are seized in CITY by contracted patrol or investigation
personnel other than RNSP personnel, and subsequently forfeited to COUNTY, the forfeited
assets shall be shared with CITY as set forth below, for the purpose of augmenting law
enforcement services in CITY, subject to approval by the forfeiting agency (U .S . Attorney or
State) of such sharing and use of forfeited assets. A portion of forfeited assets may be
retained by COUNTY's Sheriff Department, hereinafter referred to as "SHERIFF", to pay for
departmental expenses not recovered through law enforcement contracts.
In such cases, SHERIFF shall apply to the forfeiting agency for the return of a share of the
assets to COUNTY. In his application, SHERIFF shall specify the percentage of shared
assets returned to COUNTY that will be used to augment law enforcement services in CITY
and the use of said assets by CITY.
In those cases in which assets are seized within CITY by non-RNSP personnel assigned to
CITY pursuant to this Agreement, without the involvement of other law enforcement
personnel, and in which the seizure is a result solely of activities self-initiated by non-RNSP
SHERIFF personnel assigned to CITY or initiated by said personnel in response to calls for
service within CITY, SHERIFF shall apply to have all of the assets used to augment CITY
law enforcement services.
In those cases in which non-RNSP SHERIFF personnel assigned to CITY pursuant to this
Agreement play an ancillary role in a seizure or in which other law enforcement personnel
are involved in a seizure, SHERIFF shall determine the percentage of the total forfeited
assets for which he will apply to augment CITY's law enforcement services . This
determination will be based on the circumstances of the seizure, including the pro-rata
involvement of all personnel, including those assigned to CITY.
Each seizure will be evaluated on an individual and independent basis, and said evaluations
will be available for review to CITY's manager. Examples of those incidents which would be
evaluated as set forth in this section include situations in which a contract patrol deputy
provides uniformed backup at a SHERIFF's Narcotic Bureau search warrant location or in
which contract investigators participate in the service of a search warrant that was initiated
by non-contract law enforcement personnel.
Page 1of2
ATTACHMENT 14
NON-RNSP CONTRACTED PATROL AND INVESTIGATION OFFICERS (Continued)
Assets (cash or property) that are returned to COUNTY by the forfeiting agency with the
understanding that they will be used to augment CITY law enforcement services shall be
used by CITY and COUNTY only for such purposes. If the forfeiting agency attaches
additional or more specific conditions to the use of said assets, CITY and COUNTY shall
also abide by those conditions. SHERIFF and CITY's manager shall determine the specific
use of said assets within the conditions imposed by the forfeiting agency.
Subject to conditions imposed by the forfeiting agency and to the requirement that forfeited
assets be used to augment law enforcement services, COUNTY shall place forfeited cash,
or cash from the sale of forfeited assets in an interest-bearing account for use in CITY in
compliance with the forfeiting agency's regulations.
2. CONTRACTED REGIONAL NARCOTICS SUPPRESSION PROGRAM (RNSP) OFFICERS
6/2/03
Assets forfeited as a result of activities conducted by contracted RNSP officers will be used
to augment CITY's law enforcement services. Because activities of this type result from the
efforts of both contracted officers and other RNSP officers, the percentage of sharing will be
determined pursuant to the RNSP Memorandum of Understanding in effect at the time of the
seizure. Said Memorandum of Understanding provides that assets are distributed according
to percentage amounts based on the number of sworn personnel participating in the RNSP
at the time of the seizure. The number of personnel in RNSP, as well as the number of
participating agencies in RNSP, may fluctuate during the course of a contract year, thereby
affecting the percentage amounts distributed to participating agencies. The percentage
amounts distributed to participating agencies may also be affected by action taken by the
RNSP Executive Board.
CITY will use RNSP forfeited assets only to augment CITY's law enforcement services. If
the forfeiting agency or applicable RNSP Memorandum of Understanding attaches any
additional or more specific conditions on the use of said assets, CITY shall abide by those
conditions. SHERIFF and CITY's manager shall determine the specific use of said assets
within the conditions imposed by the forfeiting agency and the RNSP Memorandum of
Understanding.
Subject to conditions imposed by the forfeiting agency and the RNSP Memorandum of
Understanding and to the requirement that RNSP forfeited assets be used to augment law
enforcement services. COUNTY shall place forfeited cash or cash from the sale of forfeited
assets in an interest-bearing account for use in CITY in compliance with the forfeiting
agency's regulations and the RNSP Memorandum of Understanding.
Page 2 of 2
ATTACHMENT 14
ATTACHMENT 0
RESOLUTION NO. 00-7-18-4
ORANGE COUNTY SHERIFFS DEPARTMENT TRAFFIC VIOLA TOR
APPREHENSION PROGRAM
A RESOLUTION OF THE CITY COUNCIL OF THE CllY OF SAN JUAN
CAPISTRANO, CALIFORNIA, AUTHORIZING PARTICIPATION IN THE
ORANGE COUNTY SHERIFFS DEPARTMENT TRAFFIC VIOLATOR
APPREHENSION PROGRAM
WHEREAS, the City of San Juan Capistrano contracts with the Orange
County Sheriff's Department for law enforcement services; and,
WHEREAS, as a contract City, San Juan Capistrano is eligible to participate
in the County's new Traffic Violator Apprehension Program; and,
WHEREAS, the goals of the Traffic Violator Apprehension Program are to
reduce the number of collisions involving suspended or unlicensed drivers, to reduce the
number of hit and run collisions, to establish a public education program to deter violators,
and to establish a cost recovery system to pay for continued enforcement; and, ·
WHEREAS, the Traffic Violator Apprehension Program is funded by a Traffic
Safety Grant from the State of California and on-going revenues will be generated from the
coUection of vehicle impound fees within the unincorporated areas of the County and
participating cities that contract for law enforcement services with the Orange County
Sheriff's Department; and,
WHEREAS, the County Board of Supervisors has established a fee of $50
for each vehicle towed/stored/impounded as a result of negligent operation of a vehicle and
a $152 fee for each vehicle impounded for 30 days, based on the actual administrative
costs for the identification and apprehension of drivers with suspended or revoked licenses
or unlicensed motorists; and,
WHEREAS, all of the impound fees will be collected by the County and
deposited into a Traffic Violator Apprehension Fund for use by this program exclusively.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of
San Juan Capistrano does hereby resolve, determine and order as follows :
SECTION 1. Authorize the City of San Juan Capjstrano to participate in the
Traffic Violator Apprehension Fund; and.
-1-
ATTACHMENT 14
SECTION 2. The City Clerk shall certify to the adoption of this resolution.
PASSED, APPROVED, AND ADOPTED this 18th day of July, 2000.
ATIEST:
~K
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF SAN JUAN CAPISTRANO )
I, CHERYL JOHNSON, City Clerk of the City of San Juan Capistrano,
California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of
Resolution No. 00-7-18-4. adopted by the City Council of the City of San Juan Capistrano,
California, at a regular meeting thereof held on the 18th day of July, 2000, by the following
vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
(SEAL)
:
Council Members Bathgate, Greiner, llart, Swerdlin
and Mayor Campbell
None
None
None
-2-
ATTACHMENT 14
__..
ORANGE COlJNTY SHERIFF-CORONER
TRAFFIC VIOLATOR APPREHENSION PROGRAM
Participating City Request to Purchase From the TV A in FY
ITEM DESCRIPTION
APPLICABILTY
TO TV A PROGRAM ESTIMATED COST
THE CITY CERTIFIES THAT THE EQUIPMENT PURCHASED BY CITY AND TO BE RE1MBURSED BY PROGRAM FUNDS
WlLL BE USED FOR ITS ENTIRE USEFUL LJFE EXCLUSIVELY FOR THE PURPOSES OF THE TRAFFIC VIOLATOR
APPREHENSION PROGRAJv1
CITY MANAGER REQ UEST:
Printed Name ----------------------------
DATE ___________ _
Recommended For Annroval
CITY POLICE SERVICES CHIEF MAL~AGER-TVAPROGRAM
~~I ~~~~~~~~I
OCSD
BUDGET
USE ONLY ---~
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FOURTH AMENDMENT TO AGREEMENT
BETWEEN THE
CITY OF SAN JUAN CAPISTRANO
AND THE
COUNTY OF ORANGE
THIS FOURTH AMENDMENT TO AGREEMENT, entered into this
a Thirteenth day of May 2019, which date is enumerated for purposes of reference only,
9 by and between the CITY OF SAN JUAN CAPISTRANO, hereinafter referred to as
10 "CITY" and the COUNTY OF ORANGE, a political subdivision of the State of California,
11 hereinafter referred to as "COUNTY", to amend effective July 1, 2019, that certain
12 Agreement between the parties commencing July 1, 2015, hereinafter referred to as
13 the "Agreement".
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For the period July 1, 2019 through June 30, 2020, REGULAR SERVICES BY
COUNTY, Subsection C-4 of the Agreement is amended to read as follows:
"C-4. The level of service, other than for licensing, to be provided by the COUNTY
for the period July 1, 2019 through June 30, 2020, is set forth in Attachment F
and incorporated herein by this reference."
For the period July 1, 2019 through June 30, 2020, REGULAR SERVICES BY
COUNTY, Subsection C-10 of the Agreement is amended to read as follows:
"C-10. With the limitations set forth below, SHERIFF, on behalf of COUNTY, and
CITY Manager, on behalf of CITY, are authorized to execute written
amendments to this Agreement to increase or decrease the level of service
set forth in Attachment F, when SHERIFF and CITY Manager mutually agree
that such increase or decrease in the level of service is appropriate. Any such
amendment to the Agreement shall concomitantly increase or decrease the
cost of services payable by CITY set forth in Attachment G and incorporated
herein by this reference, and the Maximum Obligation of CITY set forth in
Page 1of7
ATTACHMENT 15
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3.
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Subsection G-2, in accordance with the current year's COUNTY law
enforcement cost study. SHERIFF and CITY Manager shall file copies of any
such amendments to this Agreement with the Clerk of COUNTY's Board of
Supervisors and CITY's Clerk. Amendments to this Agreement executed by
SHERIFF and CITY Manager may not, in the aggregate, increase or decrease
the cost of services payable by CITY by more than one percent (1%) of the
total cost originally set forth in Attachment G and the Maximum Obligation
originally set forth in Subsection G-2 for FY 2019-20.
Prior approval by COUNTY's Board of Supervisors and CITY's Council is
required before execution of any amendment that brings the aggregate total
of changes in costs payable by CITY to more than one percent (1%) of the
total cost originally set forth in Attachment G and the Maximum Obligation
originally set forth in Subsection G-2 of this Agreement for FY 2019-20.
For the period July 1, 2019 through June 30, 2020, PATROL VIDEO SYSTEMS,
Subsection E-3 of the Agreement is amended to read as follows:
"E-3. CITY shall pay COUNTY the full costs to COUNTY of a) the acquisition and
installation of Patrol Video Systems that are or will be mounted in patrol
vehicles assigned to CITY, and b) recurring costs, as deemed necessary by
COUNTY, including the costs of maintenance and contributions to a fund for
replacement and upgrade of such PVS when they become functionally or
technologically obsolete.
The costs to be paid by CITY for recurring costs, including maintenance and
replacemenUupgrade of PVS, are included in the costs set forth in Attachment
G and the Maximum Obligation of CITY set forth in Subsection G-2 of this
Agreement unless CITY has already paid such costs. CITY shall not be
charged additional amounts for maintenance or replacement/upgrade of said
PVS during the period July 1, 2019 through June 30, 2020."
Page 2 of 7
ATTACHMENT 15
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For the period July 1, 2019 through June 30, 2020, PAYMENT, Subsection G-2 of
the Agreement is amended to read as follows:
"G-2. Unless the level of service as set forth in Attachment F is increased or
decreased by mutual agreement of the parties, or CITY is required to pay for
increases as set forth in Subsection G-4, the Maximum Obligation of CITY
for services . set forth in Attachment F of this Amendment, other than
Licensing Services, to be provided by the COUNTY for the period July 1,
2019 through June 30, 2020, shall be $10,494,404, as set forth in
Attachment G.
The overtime costs included in the Agreement are only an estimate. COUNTY
shall notify CITY of actual overtime worked during each fiscal year. If actual
overtime worked is above or below budgeted amounts, billings will be adjusted
accordingly at the end of the fiscal year. Actual overtime costs may exceed
CITY's Maximum Obligation."
For the period July 1, 2019 through June 30, 2020, PAYMENT, Subsections G-4a,
G-4b and G~ of the Agreement are amended to read as follows:
"G-4a. At the time this Agreement is executed, there are unresolved issues
pertaining to potential changes in salaries and benefits for COUNTY
employees. The costs of such potential changes are not included in the FY
2019-20 cost set forth in Attachment G nor in the FY 2019-20 Maximum
Obligation of CITY set forth in Subsection G-2 of this Agreement. If the
changes result in the COUNTY incurring or becoming obligated to pay for
increased cost for or on account of personnel whose costs are included in
the calculations of costs charged to CITY hereunder, CITY shall pay
COUNTY, in addition to the Maximum Obligation set forth in Subsection G-
2 of this Agreement, the full costs of said increases to the extent such
increases are attributable to work performed by such personnel during the
period July 1, 2019 through June 30, 2020, and CITY's Maximum Obligation
Page 3 of 7
ATTACHMENT 15
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G-4b.
II
hereunder shall be deemed to have increased accordingly. CITY shall pay
COUNTY in full for such increases on a pro-rata basis over the portion of
the period between July 1, 2019 and June 30, 2020 remaining after
COUNTY notifies CITY that increases are payable. If the changes result in
the COUNTY incurring or becoming obligated to pay for decreased costs
for or on account of personnel whose costs are included in the calculations
of costs charged to CITY hereunder, COUNTY shall reduce the amount
owed by the CITY to the extent such decreases are attributable to work
perfonned by such personnel during the period July 1, 2019 through June
30, 2020, and CITY's Maximum Obligation hereunder shall be deemed to
have decreased accordingly. COUNTY shall reduce required· payment by
CITY in full for such decreases on a pro-rata basis over the portion of the
period between July 1, 2019 and June 30, 2020 remaining after COUNTY
notifies CITY that the Maximum Obligation has decreased.
If CITY is required to pay for increases as set forth in Subsection G-4a
above, COUNTY, at the request of CITY, will thereafter reduce the level of
service to be provided to CITY as set forth in Attachment F of this
Agreement to a level that will make the Maximum Obligation of CITY
hereunder for the period July 1, 2019 through June 30, 2020 an amount
specified by CITY that is equivalent to or higher than the Maximum
Obligation set forth in Subsection G-2 for said period at the time this
Agreement originally was executed. The purpose of such adjustment of
service levels will be to give CITY the option of keeping its Maximum
Obligation hereunder at the pre-increase level or at any other higher or
lower level specified by CITY. In the event of such reduction in level of
service and adjustment of costs, the parties shall execute an amendment
to this Agreement so providing. Decisions about how to reduce the level
Page 4 of 7
ATTACHMENT 15
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6.
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of service provided to CITY shall be made by SHERIFF with the approval
of CITY.
G-6. COUNTY shall invoice CITY monthly, one-twelfth (1/12) of the Maximum
Obligation of CITY. If a determination is made that increases described in
Subsection G-4 must be paid, COUNTY thereafter shall include the pro-
rata charges for such increases in its monthly invoices to CITY for the
balance of the period between July 1, 2019 and June 30, 2020."
For the period July 1, 2019 through June 30, 2020, MOBILE DATA COMPUTERS,
Subsection N-3 of the Agreement is amended to read as follows:
"N-3. CITY shall pay COUNTY the full costs to COUNTY of a) the acquisition and
installation of MDCs that are or will be mounted in patrol vehicles and
motorcycles assigned to CITY, and b} recurring costs, as deemed necessary
by COUNTY, including the costs of maintenance and contributions to a fund
for replacement and upgrade of such MDCs when they become functionally
or technologically obsolete.
The costs to be paid by CITY for recurring costs, including maintenance and
replacement/upgrade of MDCs, are included in the costs set forth in
Attachment G and the Maximum Obligation of CITY set forth in Subsection
G-2 of this Agreement unless CITY has already paid such costs. CITY shall
not be charged additional amounts for maintenance or replacement/upgrade
of said MDCs during the period July 1, 2019 through June 30, 2020."
For the period July 1, 2019 through June 30, 2020, E-CITATION UNITS Subsection
0-3 of the Agreement is amended to read as follows:
"0.3. CITY shall pay COUNTY the full costs to COUNTY of a) the acquisition of E-
Citation units that are assigned to CITY, and b) recurring costs, as deemed
necessary by COUNTY, including the costs of maintenance and contri bt1 tio ns
to a fund for replacement and upgrade of such E-Citation units when they
become functionally or technologically obsolete.
Page 5of7
ATTACHMENT 15
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The costs to be paid by CITY for recurring costs, including maintenance and
replacemenUupgrade of E-Citation units, are included in the costs set forth in
Attachment G and the Maximum Obligation of CITY set forth in Subsection G-
2 of this Agreement unless CITY has already paid such costs. CITY shall not
be charged additional amounts for maintenance or replacemenUupgrade of
said E-Citation units during the period July 1, 2019 through June 30, 2020."
AU other provisions of the Agreement, to the extent that they are not in conflict with
this FOURTH AMENDMENT TO AGREEMENT, remain unchanged
Page 6 of 7
ATTACHMENT 15
IN WITNESS WHEREOF, the parties have executed the FOURTH
2 AMENDMENT TO AGREEMENT in the County of Orange, State of California.
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CITY OF SAN JUAN CAPISTRANO
s ATIEST: ________ _
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City Clerk
7 BY: ------------Mayor
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APPROVED AS TO FORM :
9
10 BY: ------------City Attorney 11 ______________________________ , ______________________________________________ _
12 DATED :
~---------
13
COUNTY OF ORANGE
14
1s BY: --------------
16 Chairwoman of the Board of Supervisors
County of Orange, California
17
18 SIGNED AND CERTIFIED THAT A COPY OF THIS
19 AGREEMENT HAS BEEN DELIVERED TO THE CHAIR
OF THE BOARD PER G .C. Sec. 25103, Reso 79-1535
20 Attest:
21
22 Robin Stieler
Clerk of the Board
23 County of Orange, California
2 4
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APPROVED AS TO FORM :
Office of the County Counsel
County of Orange, California
BY: ~·tm t2<J_
Deputy
DATED: ~3)''J -~_.,., ______ _
Page 7 of 7
ATTACHMENT 15
ORANGE COUNTY SHERIFF-CORONER
FY 2019-20 LAW ENFORCEMENT CONTRACT
CITY OF SAN JUAN CAPISTRANO
"REGULAR SERVICES BY COUNTY"
(Subsection C-4)
ATTACHMENT F
LEVEL OF SERVICE PROVIDED BY SHERIFF:
Title Detail Quantity Frequency
MANAGEMENT:
Li e utenant 1 .00
SUPERVISION:
Sen:ieant Patrol 4.00 each, 80 hrs.I per two wk. pay period
Sergeant Administrative 1.00 80 hrs.I per two wk. pay period
INVESTIGATION SERVICES:
lnvestiaator 2.00 each, 80 hrs./ per two wk. pay period
PATROL AND TRAFFIC SERVICES~:
Deputy Sheriff II -Patrol Patrol 15.00 each, 80 hrs./ per two wk. pay period
Deputy Sheriff II -Motor Motorcycle 2.00 each, 80 hrs.I per two wk. pay period
ADDITIONAL SERVICES":
Crime Prevention Specialist Crime Prevention 1 .00 80 hrs.I oer two wk . pay period
Community Services Officer Parkinq Control 2.00 each, 80 hrs./ per two wk. pay period
Deputy Sheriff II Community Support 1.00 80 hrs./ per two wk. pay period
Deputy Sheriff If DET 1.00 80 hrs./ per two wk. pay period
Deputy Sheriff II Extra Help As needed
TOTAL 30.00
• Deployment to be determined by SHERIFF in cooperation with CITY Manager
REGIONAL I SHARED STAFF:
Title Regional Team Quantity %Allocation
TRAFFIC:
Seraeant Traffic 0.60 6 .83%
Deoutv Sheriff II Traffic 4.00 6 .83%
lnvestioative Assistant Traffic 2.00 6 .83%
Office Soecialist Traffic 1 .00 6 .83%
AUTO THEFT:
Seraeant Auto Thell 0.30 3 .85%
lnvestiaator Auto Theft 2.00 3 .85%
lnvestiQative Assistant Auto Theft 1.00 3 .85%
Office Specialist Auto Theft 1.00 3 .85%
OET :
Seraeant DET 1.00 12 .67%
lnvestiaator DET 1.00 12.67%
SUBPOENA:
Office Specialist Subpoena 1.00 6 .79%
COURTS:
lnvestiaative Assistant Courts 2.00 15.10%
MOTORCYCLE (shared Supervision);
Seraeant Motorcvle Supervision 1.00 6 .67%
TOTAL 17.90
Poge 1 of 1 ATTACHMENT 15
ORANGE COUNTY SHERIFF-CORONER
FY 2019-20 LAW ENFORCEMENT CONTRACT
CITY OF SAN JUAN CAPISTRANO
"PAYMENT"
(Subsection G-2)
COST OF SERVICES PROVIDED BY SHERIFF fSubsectlon G·2>:
ATIACHMENTG
Cost of Service Cost of Service
Title Detail Quantity (each) Total
MANAGEMENT:
Lieutenant 1.00 $ 392,160 $ 392.160
SUPERVISION:
Seroeant Patrol 4.00 $ 333.287 s 1,333,148
Seraeant Administrative 1.00 $ 333,2871 $ 333,287
INVESTIGATION SERVICES:
lnvestiaator 2.00 $ 323,640 $ 647,280
PATROL AND TRAFFIC SERVICES:
Denutv Sheriff II -Patrol Patrol 15.00 $ 274,640 $ 4,119,600
DP-nutv Sheriff II -Motor Motorcvcie 2.00 $ 279.840 $ 559,680
ADDmONAL SERVICES:
Staff Soecialist 1.00 $ 123,048 $ 123,046
Communitv Services Officer Parkino Control 2.00 $ 127,268 $ 254,536
Denutv Sheriff II Communitv Suooort 1.00 $ 274,640 $ 274,640
Deoutv Sheriff II DET 1.00 $ 274,640 $ 274,640
Cadet Extra Hele $ 22,649
TOTAL POsmONS 38.09 s 8,lld..668
REGIONAL I SHARED STAFF:
Title Reglonat Team Quantity % Allocation Cost$
'TRAFFIC: -"' Traffic 0.60 6.83% $ 14,866
Denutv Sheriff 11 Traffic 4.00 6.83% $ 61,231
lnvestiaative Assistant Traffic 2.00 6.83% $ 19,312
Office SnAclallst Traffic 1.00 6.83% $ 7,140
AUTO THEFT:
Semeant Auto Theft 0.30 3.85% $ 4.202
lnvestiaator Auto Theft 2.00 3.85% $ 24,141
lnvestioatlve Assistant Auto Theft 1.00 3.85% $ 5,031
Office Snecialist Auto Theft 1.00 3.85% $ 4,080
DET:
Seigeant DET 1.00 12.67% $ 58,838
lnvestinmnr DET 1.00 12.67% $ 53,566
SUBPOENA:
Office SDAr.ialist Subonena 1.00 6.79% $ 6,525
COURTS:
lnvestiaalive Assistant Courts 2.00 15.10% $ 37,900
MOTORCYCLE (shared Sunarvltllon):
SemAant Motorcvle Sucervlsion 1.00 6.67% $ 23,350
TOTAL REGIONAUSHARED 17.90 $ 340,182
OTHER CHARGES AND CREDITS (Subsection G·2l:
OTHER CHARGES:
other Charges Include: Annual leave paydowns and apportlonment or cost of leave balances pa id at end of employment: premium pay
roe bilingual staff; contract admin istration; data line charges; direct services and supplies; Enhanced he licopler response SOfVlces ; E-
CllaUon recurring costs ror three (3) units; facility lease; holiday pay; Integrated Law & Jusllce of Orange County fees; Mobile Data
Computer (MDC) recurring cost for eighteen (18) units; on-eall pay; overtime; patrol training cost allocation; Patrol Video System (PVS)
recunlng oost for eleven (11) units; and transportation charges.
CREDITS:
Credits include : EsUmated vacancy credits; false alarm fees reimbun;ement for training and miscellaneous programs; and retirement
rate discount for FY 2019-20 .
TOTALOTHERCHARGESANDCREDITS $ 1,819,554
TO'TAL COST OF SERVICES (Subsection G-2) $ 10,494,404
ATTACHMENT 15
P"ll•1of!