Resolution Number 12-10-16-02
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864426.1
CITY OF SAN JUAN CAPISTRANO 1
CITY COUNCIL POLICY 126 2
(Adopted October 16, 2012) 3
4
5
SUBJECT: PURCHASING POLICES AND PROCEDURES 6
Effective: October 16, 2012 7
Policy Number: City Council Policy No. 126, replacing previous City Council Policy No. 8
112 and Administrative Policies 504, 507, and 510 9
10
Contents 11
SECTION I – GENERAL INFORMATION ....................................................................... 3 12
A. Glossary of Terms – The words defined in this Section shall have the meaning 13
set forth below whenever they appear in this Policy: ............................................ 3 14
B. Purpose and Goals ............................................................................................... 7 15
C. Roles and Responsibilities ................................................................................... 7 16
D. Purchasing Cycle .................................................................................................. 8 17
E. Purchase Orders .................................................................................................. 9 18
F. Signature Authorization within Departments ....................................................... 10 19
G. Ethics .................................................................................................................. 10 20
H. Emergency Purchases ....................................................................................... 12 21
I. Recycled Products .............................................................................................. 13 22
J. Energy Efficient Products ................................................................................... 15 23
K. Local Bidders ...................................................................................................... 15 24
SECTION II – MINOR PURCHASES ............................................................................ 16 25
A. Petty Cash .......................................................................................................... 16 26
B. Credit or Procurement Cards .............................................................................. 17 27
C. Check Requests ................................................................................................. 18 28
SECTION III – GOODS, SUPPLIES, EQUIPMENT, AND MATERIALS ........................ 18 29
SECTION IV – SERVICE CONTRACTS (PROFESSIONAL AND MAINTENANCE) .... 20 30
SECTION V – PUBLIC WORKS PROJECTS ............................................................... 24 31
SECTION VI - CHANGE ORDERS FOR PUBLIC WORKS PROJECTS .................... 27 32
SECTION VII – BIDDING PROCEDURES .................................................................... 28 33
A. Introduction to Bidding Procedures ..................................................................... 28 34
Overview ............................................................................................................ 28 35
Documenting the Bid Process ............................................................................ 28 36
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B. Qualified Bidder List ........................................................................................... 29 37
C. Informal Solicitation of Qualifications (SOQ)....................................................... 30 38
D. Lowest Responsible (Responsive and Qualified) Bidder .................................... 31 39
E. Informal Quotes .................................................................................................. 32 40
F. Formal Request for Proposal or Request for Qualifications (RFP/RFQ) ............. 32 41
G. Informal Bid Process .......................................................................................... 37 42
H. Formal Bid Process ............................................................................................ 37 43
I. Exceptions to Competitive Bidding Requirements .............................................. 40 44
SECTION VIII – DISPOSITION OF SURPLUS PROPERTY/CAPITAL ASSETS 45
(OTHER THAN REAL PROPERTY) .............................................................................. 41 46
APPENDIX A – PURCHASING AUTHORITIES ............................................................ 46 47
Uniform Public Construction Cost Accounting Resolution 06-09-19-04 approved 48
September 19, 2006 ........................................................................................... 46 49
50
51
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SECTION I – GENERAL INFORMATION 52
53
A. Glossary of Terms – The words defined in this Section shall have the meaning set 54
forth below whenever they appear in this Policy: 55
56
Amendment shall mean a properly executed written Contract entered into and 57
between the City and a Contractor covering modifications to the original Contract 58
and which may result in adjustments to provisions of the Contract, including, but not 59
limited to, terms, compensation, and/or period of performance. 60
61
Bid Recap Form shall mean the form required by the Finance Department to initiate 62
Purchase Orders that exceed certain dollar thresholds, and which is used to 63
demonstrate that the Procurement is carried out in a manner that is consistent with 64
this Policy. 65
66
Budgeted shall mean the amount of appropriations within a fund adopted for 67
expenditure by the City Council. 68
69
CalCard (Credit Card) shall mean the City issued credit cards provided as a 70
method to procure budgeted low value items, typically up to $500, similar to the 71
process for a check request or petty cash reimbursement. 72
73
Change Order shall mean a properly executed written order entered into and 74
between the City and the Contractor, or unilaterally issued by the City, covering 75
modifications to the Contract, which may result in changes to the scope of work, 76
contract amount, requirements, and/or period of performance. 77
78
Check Request shall mean a request for a check issuance for purchases of $3,000 79
or less, or where a Purchase Order would not be expedient. 80
81
Chief Financial Officer shall mean the Department Head for the Finance 82
Department, or his or her designee. 83
84
City Manager shall mean the City Manager of San Juan Capistrano, or his or her 85
designee. 86
87
Contract shall mean any type of agreement for the purchase of goods and/or 88
services. Contracts may be referred to in various ways, including "contract," 89
"agreement," purchase order" and "task order." 90
91
Contract Transmittal Form shall mean a form containing a checklist of all 92
required documentation for the procurement of Goods, Supplies, Equipment, and 93
Materials or Service Contracts. 94
95
Contractor shall mean any person or entity that has a contract with the City. 96
97
98
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Department Head shall mean the person tasked with the responsibility for the day-99
to-day operation of a department, including managing staff and developing plans in 100
collaboration with the City Manager for the future of the organization, or his or her 101
designee. 102
103
Emergency shall mean a sudden, unexpected occurrence that poses a clear and 104
imminent danger, requiring immediate action to prevent or mitigate the loss or 105
impairment of life, health, property, or essential public services. 106
107
Emergency Purchase Authorization Form shall mean the form required for a 108
Department Head to declare the need for an Emergency purchase. 109
110
Encumbrance shall mean the estimated amount set aside from the budget for a 111
particular Procurement. 112
113
Fee Recovery Vendors shall mean vendors on the Qualified Bidders list retained 114
for development projects, and who are paid by developers (examples: outside EIR, 115
plan check review). 116
117
Finance Department shall mean the department so designated by the City Manager 118
to be responsible for the day-to-day administration of the City’s purchasing policies 119
and procurement procedures. 120
121
Formal Bid Process shall mean the public bidding process used for purchases of 122
goods, supplies, equipment, materials or services. The process requires a public 123
notice inviting bids, availability of specifications, bid opening, determination of lowest 124
responsive and responsible bidder, awarding of the bid, and public access to the 125
results of the process. 126
127
Formal Request for Proposal (RFP)/ Request for Qualification (RFQ) shall mean 128
a selection process designed to ensure that the City has engaged the most qualified 129
consultant available for the services to be provided. 130
131
Goods, Supplies, Equipment and Materials shall mean fixed, movable, 132
disposable, and/or reusable products, commodities, or items used by the City, 133
including, but not limited to, office supplies, program supplies, subscriptions, 134
vehicles, fuel and vehicle supplies, tools, computers, computer hardware and 135
software, landscape and irrigation supplies, power tools, janitorial supplies, office 136
furniture, and fixtures, which shall be furnished to or used by any department. 137
138
Informal Bid Process shall mean a bidding process used, when applicable, for 139
purchases of goods, supplies, equipment, materials or services. The process 140
requires a notice inviting informal bids, which shall be mailed to contractors on the 141
Qualified Bidders List and, where applicable, advertised in designated construction 142
trade journals, availability of project details, bid opening, determination of successful 143
bidder, and awarding of the contract. 144
145
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Informal Quote shall mean a selection process used to assure the most competitive 146
price is received for an item, while avoiding the additional time and expense involved 147
in formal bidding. 148
149
Informal Solicitation of Qualifications (SOQ) shall mean the process that 150
establishes criteria for evaluating firms that request placement on the City’s Qualified 151
Bidders List. 152
153
Maintenance Services shall mean the furnishing of labor, time, or effort by a 154
contractor including, but not limited to (a) routine, recurring, and usual work for the 155
preservation or protection of a publicly-owned, or publicly-operated facility for 156
intended purposes; (b) minor repainting; (c) resurfacing of streets and highways at 157
less than one inch (1”); (d) landscape maintenance, including mowing, watering, 158
trimming, pruning, planting, replacement of plants, and servicing of irrigation and 159
sprinkler systems; and (e) work performed to keep, operate and maintain publicly-160
owned water or waste disposal systems. 161
162
New Vendor Application Form shall mean a form required of all new vendors that 163
provides pertinent information, including information for the issuance of a federal W9 164
Request for Taxpayer Identification Number and Certification form. 165
166
Non-Fee Recovery Vendors shall mean vendors on the Qualified Bidders List that 167
have no offsetting revenue from developers. 168
169
Originating Department shall mean any department requiring goods, supplies, 170
equipment, materials, services, and/or construction procured. 171
172
Petty Cash shall mean a cash disbursement for authorized expenses up to a 173
maximum of $50.00 for such items as emergency supplies and tools not readily 174
available, or an approved meeting attendance. 175
176
Procurement shall mean the buying, purchasing, renting, leasing, or otherwise 177
acquiring of any goods, supplies, equipment, materials, services, and Public Works 178
projects. Procurement shall also include all functions that pertain to the obtaining of 179
any goods, services, or construction, including description of requirements, election 180
and solicitation of sources, preparation and award of contract, and all phases of 181
contract administration. 182
183
Professional Services shall mean those services provided by any specially trained, 184
educated, experienced or licensed person, company, corporation, or firm, and which 185
involve the exercise of discretion and independent judgment together with an 186
advanced or specialized knowledge, expertise, training, or unique skills gained by 187
formal studies or experience. 188
189
Professional Services Agreements (PSA) shall mean Contracts negotiated for 190
professional services, which are based on demonstrated competence, and 191
professional qualifications for the services required. 192
193
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Public Works Projects shall mean construction, reconstruction, erection, alteration, 194
renovation, improvement, demolition, and repair work involving any facility owned, 195
leased, or operated by the City as defined in California Public Contract Code section 196
22002, or as subsequently amended. The definition also includes painting/ 197
repainting, plumbing, electrical wiring, and/or other trade work for any facility owned, 198
leased or operated by the City. Construction, erection, improvement, or repair of 199
dams, reservoirs, and electrical transmission lines of 230,000 volts and higher that 200
are owned by the City, are also considered a Public Works project. 201
202
Purchase Order (PO) shall mean a commercial document issued by a buyer to a 203
seller, indicating types, quantities, and agreed prices for products or services 204
the seller will provide to the buyer. 205
206
Qualified Bidders List shall mean one list for ongoing service requirements for the 207
same or very similar services, including maintenance services, professional 208
services, and qualified construction contractors, categorized by the type of product 209
sold or work performed for use in soliciting bids. 210
211
Request for Purchase Order Modification (POM) Form shall mean a form that is 212
transmitted to the Finance Department to request a change in the amount 213
encumbered for a Purchase Order. 214
215
Requisition shall mean a document making a demand for goods, supplies, 216
equipment, and materials and quoting proper authority for the demand, funds, 217
delivery date, quantities, etc. 218
219
Responsible Bidder shall mean a bidder who has demonstrated the attribute of 220
trustworthiness, as well as quality, fitness, capacity, and experience to satisfactorily 221
perform the work proposed. 222
223
Responsive Bidder shall mean a bidder who has submitted a bid which conforms in 224
all material respects to the Notice Inviting Bids. 225
226
Sole Source shall mean an award for a commodity or service that can feasibly be 227
obtained from one source only. 228
229
Surplus Property means property, other than real property, no longer needed by 230
City departments for its operations, obsolete property, property in poor or non-231
working condition, or property that is a by-product (i.e., scrap metal, used tires, oil, 232
etc.). 233
234
Uniform Public Construction Cost Accounting (UPCCA) shall mean the 235
provisions of the Public Contracts Code Sections 22010 through 22045 (PCC 236
22010-22045), and any subsequent amendments. 237
238
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B. Purpose and Goals 239
This Administrative Policy ("Policy") sets forth a centralized system and outlines the 240
authorities and responsibilities of the Purchasing Officer or the designee to negotiate or 241
contract for professional and maintenance services, Public Works projects and to 242
purchase goods, supplies, equipment, and materials required by City departments. 243
When authorized to procure materials or professional or maintenance services, all City 244
employees shall follow this Policy to correctly and ethically process procurement and 245
ensure the efficient use of public funds. Funds for Capital Improvement projects (CIP) 246
are processed and administered by various City departments, each of which shall 247
follow applicable state and federal guidelines in the procurement of contracts and 248
Public Works projects. 249
250
The guiding principles of those involved in the purchasing function should be: 251
252
To comply with State law, the City's Municipal Code, and the adopted budget 253
for all purchases and contracts. 254
To procure the goods, supplies, equipment, materials and services needed by 255
the departments at the lowest possible cost, taking into consideration quality, 256
service levels, and time constraints. 257
To act in a professional and ethical manner. 258
C. Roles and Responsibilities 259
260
Procuring Department Responsibilities 261
To anticipate requirements sufficiently in advance to allow adequate time to 262
obtain goods and services in accordance with best purchasing practices. 263
To not split orders for the purpose of avoiding purchasing requirements. 264
To provide detailed, accurate specifications to ensure goods and services 265
obtained are consistent with requirements and expectations. 266
To prepare requisitions in accordance with instructions so as to minimize the 267
processing effort. 268
To minimize emergency and sole source purchases and to provide written 269
documentation when such purchases may be necessary. 270
To complete the Contract Transmittal Form to ensure that a vendor complies 271
with all contract requirements (insurance certificates, business license, etc.) – 272
See Contract Transmittal Form in Appendix B. 273
To consider the use of recycled products when it is practical and economically 274
feasible. 275
276
Finance Department Responsibilities 277
Pursuant to the City Municipal Code, the City Manager, or the City Manager's designee, 278
shall serve as the Purchasing Officer. The City Manager has designated the Chief 279
Financial Officer to serve as the Purchasing Officer. 280
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The Finance Department has overall responsibility for the procurement of business 281
service supplies, the administration of the purchasing policies, and the management of 282
surplus City property, not including real property. Other purchasing responsibilities are: 283
284
To ensure full and open competition on all purchases as required by this 285
Policy. 286
To coordinate vendor relations, locate sources of supply and evaluate vendor 287
performance. 288
To recommend revisions to purchasing procedures when necessary and keep 289
informed of current developments in the field of public purchasing. 290
To prescribe and maintain all forms and records necessary for the efficient 291
operation of the purchasing function. 292
To act as the City’s agent in the transfer and disposal of surplus equipment 293
and materials. 294
D. Purchasing Cycle 295
The purchasing cycle establishes the proper steps for City staff to follow when 296
requisitioning goods, supplies, materials and equipment; Public Works projects; and/or 297
professional and maintenance service contracts. 298
The Budget 299
The first step in the purchasing cycle is the approval of the City’s budget. The approved 300
budget provides authorization to the City Manager and designees to purchase the 301
goods, supplies, equipment, materials, and services listed in the line item budget 302
document. Such purchases are subject to additional rules, as set forth herein, including 303
approval limitations based on dollar amounts by Department Heads, the City Manager, 304
or City Council, and/or informal and formal bidding requirements. 305
Method of Procurement 306
As the second step, the department will choose the method of procurement according to 307
the type of purchase, the dollar value of purchase, and the standards set forth in this 308
Policy. The different standards for procurement are set forth under the sections of this 309
Policy entitled "petty cash", "credit card", "check requests", "purchase orders", "goods, 310
supplies, equipment, and materials", "service contracts", and "Public Works projects." 311
312
Receiving and Acceptance 313
The receiving and acceptance functions represent the final phase in completing the 314
purchasing cycle. At this point, the product or service is either accepted or rejected, 315
based on the quantity, quality, and/or delivery compliance of the item(s). After this 316
phase, payment authorization can proceed. 317
318
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E. Purchase Orders 319
The purchase order (PO) is the primary and preferable procurement method and 320
serves as the main source of encumbering and procuring goods and services. 321
Exceptions to this rule include purchases of services, goods, supplies, equipment 322
and materials of $50.00 or less with petty cash (see Section II, Paragraph A 323
below), credit card (see Section II, Paragraph B below), and emergencies (see 324
Section I, Paragraph G below). Important to the procurement process is the 325
system of encumbrance accounting, which helps departments control spending on 326
amounts committed prior to the actual invoicing and payment of services. A verbal 327
commitment with a vendor and purchasing without a PO is not an acceptable 328
practice, and such transactions are voidable. 329
Generally, procurement of goods and services will require a standard City 330
agreement, which can be found on the City's Intranet. Each agreement must be 331
approved as to form by the City Attorney's Office. The PO is used to communicate 332
to a vendor the City's terms and conditions, authorize an encumbrance of City 333
funds, and serve as a contractual agreement to order goods and services. The PO 334
is used to process payment and track expenditures in the financial system. A PO 335
shall be obtained and funds encumbered for all purchases and contracts for 336
services, goods, supplies, equipment and materials exceeding $3,000. Purchases 337
of the same or related items in a manner that evades or appears to evade 338
limitations of a predefined limit such as a procurement card purchase limit, 339
signature limit, or bid limit, and the intentional splitting of a purchase into two or 340
more smaller orders for the purpose of evading a provision of this Policy or bidding 341
requirement are strictly prohibited. 342
343
For a PO to be issued, the requestor shall first submit a copy of the Contract 344
Transmittal Form with attachments and purchase requisition to the City Clerk. The 345
requisition must be signed by the Department Head and Project Manager to 346
acknowledge the purchase. 347
348
349
Change Orders/Modifications to an Original Purchase Order 350
351
1. Change order/modification approvals to a PO are to be authorized by the 352
designated signature authority as defined in this Policy. 353
354
2. The amount to be approved is not a single change order, but rather, the 355
cumulative total of the original PO plus all subsequent change orders, which shall 356
be authorized by the designated signature authority as defined in this Policy. A 357
change order request must show all subsequent amounts approved on the 358
Purchase Order Modification Form (see Appendix B), the change order amount 359
requested and the cumulative total. 360
361
362
363
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F. Signature Authorization within Departments 364
365
1. Each Department Head shall complete and forward to the Finance Department a 366
Signature Authorization form, identifying those employees approved by the 367
Department Head to sign off on various financial and other administrative 368
documents. The form shall be developed by the Finance Department and 369
updated annually. 370
371
2. The form shall identify specific Departments, Divisions or Projects, the 372
employee’s name and signature and list specific documents each employee is 373
authorized to sign. It is the Department Head’s responsibility to keep the 374
information current. 375
376
3. Any documents missing the appropriate signature(s) will be returned to the 377
originating department. 378
379
4. Only Regular or Probationary City employees are authorized to sign off on 380
documents obligating the City to expend public monies. Temporary or Volunteer 381
employees, or individuals under contract with the City, may be able to acquire 382
items but any receipts must be countersigned by an authorized employee. 383
384
5. The number of authorized signatures should be kept to a minimum, to ensure 385
better control over departmental appropriations. In no event shall procurements 386
over $10,000 be approved by an employee other than the Department Head or 387
Acting Department Head. 388
389
G. Ethics 390
The purpose of this section is to provide a general code of conduct for all personnel who 391
may be engaged in the City's purchasing function. It is essential that all personnel 392
involved in the procurement process conduct themselves in a manner that maintains 393
impartiality and complete objectivity, to meet the continuing scrutiny of suppliers and the 394
public. In dealings with the business community, it is necessary to exercise a strict rule 395
of professional conduct to ensure that business relations are not compromised or even 396
have the appearance of being compromised. The City's reputation for fairness and 397
integrity in dealing with vendors and others must always be maintained. 398
The following are the City’s standards in ethics for purchasing: 399
To buy on the basis of value, recognizing that value represents a combination 400
of quality, service and price which assures the greatest economy to the City. 401
To recognize that permanent business relationships should be established on 402
the basis of honesty and fair dealings. 403
To be courteous and considerate in all City dealings. 404
To be prompt in all appointments and to negotiate with reasonable speed. 405
To avoid statements that might injure or discredit legitimate vendors and to 406
avoid disclosure of confidential information that might give an unfair 407
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advantage in a competitive business transaction. 408
To recognize that character is an important asset in commerce and should be 409
given major consideration in the selection of sources of goods or services. 410
To adjust claims and settle disputes on the basis of facts and fairness. 411
To decline politely any gratuity, rebates, kickbacks, accommodation, or other 412
unlawful consideration from any one supplier, vendor, or firm with whom the 413
City is currently doing or could potentially do business. (See also the Fair 414
Political Practices Commission guidelines in this policy.) All decisions and 415
actions regarding procurement should be based upon proper business 416
considerations, and purchasing decisions should not be influenced in any way 417
by personal obligations. 418
To avoid the appearance of impropriety by declining to participate in the 419
selection process when there is a personal relationship with a person or 420
business entity seeking a contract with the City or where there is a personal 421
financial interest in the purchase or contract. 422
Fair Political Practices Commission (FPPC) Gift Disclosures and Prohibitions 423
The purpose of this section is to highlight FPPC regulations regarding gifts for all 424
personnel who may be engaged in the City's purchasing function, hold the office of a 425
public official or designated in the City’s conflict of interest code. It is essential that all 426
personnel involved in dealings with the business community exercise a strict rule of 427
professional conduct and abide by FPPC regulations when offered a “gift.” 428
Per the FPPC manual, a “gift” is any payment or other benefit provided to you that 429
confers a personal benefit for which you do not provide goods or services of equal or 430
greater value. A gift includes a rebate or discount in the price of anything of value 431
unless the rebate or discount is made in the regular course of business to members of 432
the public (Government Code Section 82028). 433
Except as discussed below, you have “received” or “accepted” a gift when you know 434
that you have actual possession of the gift or when you take any action exercising 435
direction or control over the gift, including discarding the gift or turning it over to another 436
person (FPPC Regulation 18941). 437
This overview of the Fair Political Practices Commission highlights provisions of the 438
California Political Reform Act; however, you should not rely on this alone to ensure 439
compliance with the Act. If you have questions, consult the Act and FPPC Regulations, 440
the City Clerk or legal counsel, or call the FPPC’s toll-free help line at 1-866-275-3772. 441
Other regulations and important information can be found at the FPPC website, 442
www.fppc.ca.gov. 443
444
Handbooks prepared by the California Fair Political Practices Commission can also be 445
downloaded from the FPPC website. The manuals used in the preparation of this 446
overview are: 447
448
Your Duty to File: http://www.fppc.ca.gov/library/seibook9-04.pdf 449
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The Limitations and Restrictions on Gifts, Honoraria, Travel 450
and Loans: http://www.fppc.ca.gov/factsheets/giftlocal.pdf 451
FPPC Form 700: http://www.fppc.ca.gov/forms/700-06-07/Form700-06-07.pdf 452
City Gift Acceptance Policy 453
454
Per Administrative Policy 207, City employees shall not accept gifts from the public or 455
from private individuals with whom the City does business. It is the responsibility of the 456
employee to return any gift delivered to them and to notify the City Manager's Office of 457
such action. Acceptance of any unauthorized gift shall subject an employee to 458
disciplinary action. 459
460
This general prohibition does not include gifts such as cookies and candies as long as 461
such relatively inexpensive expressions of appreciation are placed on a public counter 462
for everyone to enjoy. The City Manager's Office shall be promptly notified so an 463
appropriate letter of thanks can be sent. 464
465
H. Emergency Purchases 466
467
The City Manager may authorize the purchase of goods, supplies, equipment, 468
materials, and services without following the standard purchasing procedures (i.e. 469
competitive bidding) where he or she deems that an emergency exists and the public 470
health, safety or welfare of the community would be affected. All emergency 471
purchases that would otherwise require City Council approval must be submitted to 472
the City Council for ratification at the next regular City Council meeting after the 473
purchase is authorized. The City Manager must declare the need for an emergency 474
purchase using the Emergency Purchase Authorization form. This form can be found 475
on the City’s Intranet and is included in the Appendix. The originator of the form 476
should describe the emergency, including its location, in the sections provided. The 477
estimated cost of the goods, supplies, equipment, materials, and/or services should 478
be provided, as well as the selected vendors based on the estimated costs given. If 479
applicable, the City Manager should also indicate on the Emergency Purchase 480
Authorization form, the date of the next City Council meeting at which time the 481
emergency purchase can be ratified. 482
483
After the Department Head of the originating department signs the form, the 484
Department Head will select the vendors to complete the necessary work. If time 485
permits and the duration of the work shall last longer than seven days, the 486
originating department will prepare two original contracts and obtain the selected 487
vendor’s signatures. If time is of the essence, then a signed proposal is sufficient to 488
submit for City Council ratification, if City Council ratification is required as provided 489
below. The Department Head then submits the required requisitions, Emergency 490
Purchase Authorization form with the Department Head’s signature, and the 491
completed contracts, if applicable, to the Finance Department. The Department Head 492
shall issue the notice to proceed for work up to a known or estimated amount that 493
does not exceed $25,000. The City Manager shall issue the notice to proceed for 494
work up to a known or estimated amount that exceeds $25,000. As emergency 495
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purchases are exempted from competitive bidding, no Bid Recap form is required. 496
The Finance Department will print the PO and mail it along with one original contract 497
to the vendor. 498
499
If the emergency purchase would have otherwise required formal or informal bidding 500
procedures, irrespective of the dollar thresholds below, the originating department 501
must obtain City Council ratification of the purchase at the next regularly scheduled 502
meeting. The originating department will prepare the Agenda Report requesting City 503
Council ratification and attach a copy of the Emergency Purchase Authorization 504
form. The originating department should retain a copy of the Emergency Purchase 505
Authorization form for its records. For Public Works projects, the originating 506
department shall comply with the requirements set forth in Section 22050 of the 507
Public Contracts Code. 508
I. Recycled Products 509
510
Solid waste management poses an increasingly difficult problem as America’s 511
consumption increases and landfill space becomes scarce. As part of an effort to 512
address this issue, the City of San Juan Capistrano has developed a recycling program, 513
both for City residents, businesses, and for City employees. It is the intent of the City 514
Council that the City of San Juan Capistrano takes a leadership role not only in 515
recycling its waste products but in the purchase of recycled products for use in the 516
delivery of City services. It is the purpose of this policy to provide direction in the 517
procurement and use of recycled products. 518
519
Policy 520
521
1. It is the policy of the City of San Juan Capistrano to purchase and use recycled 522
products whenever possible to the extent that such use does not negatively impact 523
health, safety, or operational efficiency. 524
2. Purchase of products which cannot be recycled or reused is strongly discouraged. 525
3. Recycled paper shall be purchased and used in all copy machines which will accept 526
it, and shall also be used for printing purposes. City staff will encourage the copier 527
industry to develop high-speed copiers which will accept recycled paper. 528
4. City departments and divisions shall use for their stationery and envelopes, recycled 529
paper which includes both secondary and post-consumer recycled content. The 530
percentages of post-consumer and secondary content shall be spelled out in the bid 531
specifications for letterhead and other paper grades based on industry availability. A 532
recycled paper designation shall be printed on all City stationery. 533
5. City departments shall examine their purchasing specifications and, where feasible, 534
restructure them to require the use of products which incorporate recycled materials 535
in their manufacture. 536
6. A five (5%) or greater price preference shall be given to recycled products, reusable 537
products offered as alternatives to disposable products, and products designed to be 538
recycled where they are offered as alternatives to non-recyclable products. 539
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Purchase of products which cannot be recycled or reused is strongly discouraged. 540
(See Municipal Code Section 3-4.403. Recycled Products). The preference 541
percentage shall be based on the lowest bid or price quoted by the supplier or 542
suppliers offering non-recycled products. 543
The City shall cooperate with the County of Orange, Orange County cities, and other 544
governmental agencies in the development of programs and procedures which will 545
further this policy. 546
547
Recycled Products Definitions 548
549
Recycled material is waste and by-products that have been recovered or diverted 550
from the solid waste stream and that can be utilized in place of raw material in the 551
manufacturing of a product. Recycled materials may consist of materials derived 552
from post-consumer waste, manufacturing waste, industrial scrap, agricultural 553
waste and other items, all of which can be used in the manufacture of new 554
products. 555
556
Pre-consumer material or by-products are generated after the manufacture of a 557
product is completed, but before the product has reached the end-use consumer. 558
Examples of pre-consumer recovered materials include obsolete inventories of 559
finished goods, rejected unused stock, and paper wastes generated during printing, 560
cutting and other converting operations. 561
562
Post-consumer recycled materials are finished products that have served the 563
intended use and would normally be disposed of as solid waste. Examples of post-564
consumer recovered materials include old newspapers, office paper, yard waste, 565
steel, glass, aluminum cans, plastic bottles, oil, asphalt, concrete and tires. 566
567
Criteria for Selecting Recycled Materials for Purchase 568
569
If a decision has been made to purchase recycled materials, the recommended 570
products should contain, in order of preference, the highest percentage of recycled 571
content of post-consumer recovered material available in the marketplace. 572
573
Recycled products should also be expected to perform as well as non-recycled 574
products, to be purchased at a reasonable price and to be available within a 575
reasonable time period. In addition to the recovered material content of a product, 576
important criteria in selecting products should also be the ability of the product and 577
its packaging to be reused, reconditioned for use or recycled through existing 578
recycled collection programs. Preferred products and packaging are those 579
designed to minimize waste and toxic by-products in their manufacture, use, and 580
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 586
15
864426.1
on 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 591
lower the City’s cost of electricity consumption. 592
Policy 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-efficiency, 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 600
to: 601
Office equipment, heating and cooling equipment 602
Exit signs 603
Lighting 604
Appliances 605
Other commercial products that consume electricity 606
607
3. In addition, employees will use appliances and equipment in a manner that 608
optimizes their energy efficiency features by following manufacturer’s 609
instructions. To accomplish this policy, City employees will be educated about 610
the economic savings and environmental benefits of Energy Star compliant 611
equipment, as well as other practices that minimize energy use. 612
613
K. Local Bidders 614
615
It is the intent of the City Council to encourage uniform bidding to obtain full and open 616
market competition. However, the City Council also recognizes that promoting the 617
economic viability of the City’s local businesses is critical to economic health of the city 618
in that local businesses provide tax revenue to the city and jobs for local inhabitants. In 619
an effort to support competitive bidding and the City’s local vendors, staff is encouraged 620
to obtain bids from local qualified vendors whenever possible. 621
622
L. New Vendor Procedure 623
624
The Finance Department requires every new vendor to complete a Business 625
License Application and W9 form. The Vendor Approval Application (see Appendix 626
B) gives the vendor the opportunity to give the City correct information such as 627
address, phone and fax numbers, Taxpayer Identification number, sales 628
representative or contact name and references. It also allows the vendor to indicate 629
the specific commodities on which they wish to bid. Should a department anticipate 630
16
864426.1
using a new resource, the vendor should complete the Vendor Approval Application 631
and the W9 form and forward to the Finance Department. The Vendor Approval 632
Application Form and the W9 Form are available from the Finance Department, or 633
they can be downloaded from the City of San Juan Capistrano’s web site. Upon 634
receiving the completed forms, the Finance Department will set up the new vendor in 635
the financial system. 636
637
SECTION II – MINOR PURCHASES 638
Minor purchases do not require competitive bids. The value of a minor purchase is 639
$3,000 or less. This value represents a one-time, per fiscal year purchase, or the 640
total value of multiple purchases of the same item or group of similar items 641
throughout the fiscal year. Minor Purchase Example: One Air Compressor @ 642
$2,200. A minor purchase may be a single item or a group of like items that relate to 643
one another, e.g. sprinkler bodies and sprinkler heads, waterlines, backflow devices, 644
fencing, etc., or as otherwise determined by the Department Head. Agreements to 645
purchase, on an annual basis, (annual purchase order or other form of agreement) of 646
an item or group of items that relate to one another, fall into two categories: 647
An annual fiscal year total value for the product or non-professional service of 648
$3,000 or less will be considered a minor purchase. 649
An annual fiscal year total value for the product or service exceeding $3,000 650
will require competitive quotes for award per this policy and are not 651
considered minor purchases. 652
A. Petty Cash 653
An employee may get reimbursed for authorized expenses up to a maximum of $50.00. 654
Eligible expenses are such items as emergency supplies and tools not readily available, 655
or an approved meeting attendance. Amounts of reimbursement will be charged to the 656
appropriate departmental account. Departments shall make deliberate effort to use City 657
issued credit cards where possible in order to minimize petty cash disbursements. 658
659
Procedure for Petty Cash Reimbursement 660
661
1. Upon purchase of an item, a receipt should be retained by the employee. 662
663
2. A Petty Cash Request form (form available from the Finance Department) should be 664
filled out by the employee specifying: 665
666 Name of employee 667
Date of purchase 668
Amount of reimbursement for the item purchased 669
Account number to which the amount should be charged 670
Purpose of the reimbursement 671
Approval by the Department Head or their designee 672
673
17
864426.1
Petty Cash Request forms may be obtained from the Finance Department. 674
675
3. Each department should designate in writing, in advance, one or more persons who 676
have authority to approve Petty Cash Requests. The Department Head or their 677
designee must sign approval of the Petty Cash Request form prior to submittal for 678
reimbursement. 679
680
4. The completed Petty Cash Request form and the receipt should be submitted to the 681
Cashier for prompt reimbursement. 682
683
5. Requests for reimbursement must be submitted within five (5) working days from the 684
date of purchase. 685
686
6. Mileage requests should be submitted monthly. 687
688
B. Credit or Procurement Cards 689
City issued credit or procurement cards are provided as a method of purchasing goods 690
similar to the process for a check request or petty cash reimbursement and are used to 691
procure budgeted low value items, typically up to $500. It may be used for higher 692
value purchases on an emergency or special circumstance basis only. The 693
purchase order (PO) is the primary and preferable procurement method and serves 694
as the main source of encumbering and procuring services, goods and materials for 695
purchases in excess of $3,000. Credit card purchases in excess of $3,000 will 696
require the submittal of the Emergency Purchase Authorization Form to the Finance 697
Department (see Appendix B ) immediately after the purchase to describe the nature 698
of the emergency or special circumstance purchase. Credit card purchases may 699
include, but are not limited to, meals, meeting attendance, travel arrangements, etc. 700
The cardholder and cardholder's manager are responsible for proper use of the 701
credit or procurement card. The cardholder's manager is to designate original and 702
subsequent spending limits and types of authorized purchases. It is in the City's 703
best interest to pay the credit/procurement card billing in a timely manner and avoid 704
any interest expense. When cardholders render a timely accounting of their 705
purchases along with the receipts, the matching of the itemized billing to the 706
cardholder's records results in a time-saving process. This can minimize the amount 707
of time spent administering the account. 708
1. Use of Credit and Procurement Cards 709
710
A Division Manager or Department Head shall determine which City staff members 711
shall be assigned credit or procurement cards. The credit and procurement cards 712
may only be used for budgeted City-related business expenses. Original and 713
subsequent single and monthly transaction limits are to be authorized by the 714
cardholder's manager and in no case shall exceed $5,000 unless authorized by the 715
City Manager. Once such cards are assigned, staff shall abide by the policy set forth 716
herein. The Finance Department policies and procedures shall be adhered to 717
according to this policy. These cards may only be used by the employees they are 718
issued to. 719
18
864426.1
2. Purchases of Services 720
721
Services are typically not to be paid for with a credit or procurement card. On-site 722
services are not authorized to be ordered and paid for utilizing a credit card. Any 723
variance from this rule must be in writing from the Chief Financial Officer. Offsite 724
minor service purchases, such as printing, blade sharpening, picture framing, etc. 725
are permitted as long as the vendor is legally established as an incorporated 726
business entity. Non-Incorporated service vendors will require the use of a Purchase 727
Order and it shall be the responsibility of the Finance Department to identify non-728
incorporated business entities. 729
3. Procedure for Payment of Credit or Procurement Cards 730
731
a. Upon purchase of goods or services, a receipt will be retained by the employee 732
detailing the goods and services purchased. 733
734
b. The employee shall indicate on the receipt the purpose of the expenditure and in 735
the case of meals, also include a description of the business function and the 736
attendees. 737
738
c. Each employee will receive a monthly credit card statement from the issuing 739
bank and must approve the charges as well as attach the appropriate receipts 740
and return it to the Finance Department within five working days. Goods or 741
services ordered by phone may not have receipts but should provide a brief 742
written explanation of the expenditure. 743
744
d. Failure to provide receipts or other misuse of City credit cards can result in 745
disciplinary actions as appropriate. 746
C. Check Requests 747
748
Check requests are generally issued for purchases of $3,000 or less, or where a PO 749
would not be expedient. Check requests in excess of $3,000 are subject to approval by 750
the City Manager. The Finance Department may issue "off-cycle" checks under 751
circumstances where time is of the essence or for emergency purchases. As a general 752
rule, departments are to plan their activities to preclude the necessity to request an "off-753
cycle" check. 754
755
SECTION III – GOODS, SUPPLIES, EQUIPMENT, AND MATERIALS 756
"Goods, supplies, equipment and materials" means fixed, movable, disposable, and/or 757
reusable products, commodities, or items used by the City, including, but not limited to, 758
office supplies, program supplies, subscriptions, vehicles, fuel and vehicle supplies, 759
tools, computers, computer hardware and software, landscape and irrigation supplies, 760
power tools, janitorial supplies, office furniture, and fixtures, which shall be furnished to 761
or used by any department. In instances where goods and services are purchased 762
together from one vendor, this section shall only apply if the predominant portion of the 763
19
864426.1
purchase is goods. For example, a purchase of equipment for $1,000 with a $300 764
installation fee would be covered under this section of the policy. A repair of equipment 765
for $1,000 in labor and $300 in parts would be covered under Section IV - Service 766
Contracts. 767
768
Generally, authority is established by the dollar amount of the purchase. There are three 769
levels of authority for normal purchases: Department/Division/Project Manager Award, 770
City Manager Award, and City Council Award. Signature authority is based on the 771
cumulative total of all change orders plus the original contract amount. The following 772
matrix provides purchasing procedures when purchasing goods, supplies, equipment 773
and materials. The department must state in the Bid Recap Form how the quotes 774
obtained for the supplies, equipment, and material substantially conform to the required 775
specifications. 776
777
$3,000 or less
No bidding or quotes required.
No Purchase Order required.
Use petty cash up to $50, and check request or credit
card up to $3,000.
Department Head or designee signs invoice and
submits to the Finance Department.
Purchases over
$3,000 up to
$10,000
Department Head approves original purchase and
change orders up to a cumulative amount of $10,000.
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.
Purchases over
$10,000 up to
$25,000
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.
Purchases over
$25,000 up to
$45,000
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
20
864426.1
signature and bid recap to Finance Department.
Finance Department prints and mails Purchase Order
to vendor.
Purchases over
$45,000
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.
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.
778
SECTION IV – SERVICE CONTRACTS (PROFESSIONAL AND MAINTENANCE) 779
780
Professional services include those services provided by any specially trained, 781
educated, experienced or licensed person, company, corporation, or firm, and which 782
involve the exercise of discretion and independent judgment together with an advanced 783
or specialized knowledge, expertise, training, or unique skills gained by formal studies 784
or experience. Contracts negotiated for professional services must be based on 785
demonstrated competence, professional qualifications for the services required, 786
availability, and fair and reasonable cost. Consultant services include services that are 787
of an advisory nature, which involve the consultant providing a recommended course of 788
action based on Professional expertise, and results in an end product in the form of a 789
written transmittal of information. 790
791
Maintenance services include the furnishing of labor, time, or effort by a contractor 792
including, but not limited to (a) routine, recurring, and usual work for the preservation or 793
protection of a publicly-owned, or publicly-operated facility for intended purposes; (b) 794
minor repainting; (c) resurfacing of streets and highways; (d) landscape maintenance, 795
including mowing, watering, trimming, pruning, planting, replacement of plants, and 796
servicing of irrigation and sprinkler systems; and (e) work performed to keep, operate 797
and maintain publicly-owned water or waste disposal systems. 798
799
21
864426.1
For the purposes of this policy, professional and maintenance services contracts will 800
include, but not be limited to, a wide variety of expertise and specialized crafts. 801
Examples include: 802
803
Accounting 804
Affordable Housing 805
Alarm Systems 806
Auditing 807
Archaeology 808
Architecture* 809
Building/Engineering Plan Check/Inspection 810
Cable TV 811
Community Planning and Development 812
Computer Management 813
Cultural Resource Management (Archaeology, History) 814
Construction Management* 815
Document Processing Services 816
Engineering including Civil, Mechanical, Electrical, Structural, and Seismic* 817
Environmental (CEQA/NEPA services)* 818
Finance 819
Fleet Maintenance 820
Entertainment 821
Equipment Rental 822
Geotechnical 823
Ground Water Recovery 824
Human Resources 825
Information Technology 826
Inspection Services 827
Janitorial 828
Landscape Architecture/Arboriculture* 829
Legal Consultants 830
Mapping, Maintenance and Refurbishing of Public Facilities and Lands 831
Material testing and laboratory work 832
Payroll 833
Pest Control 834
Sound (Noise) Attenuation 835
Security 836
Surveying* 837
Technical Assistance 838
Traffic and Related Equipment and Service 839
Uniforms 840
Any other professional service as deemed appropriate by the City Manager. 841
842
Subject to heightened approval requirement under Government Code Section 843
4526. The City cannot award contracts for these specialized services unless 844
the award is based on the “demonstrated competence and qualification for 845
these type of services at fair and reasonable prices.” 846
22
864426.1
When contracting for professional services, the formal Request for Proposals or 847
Request for Qualifications (RFP/RFQ) procedures (see Section VI., Paragraph F) as 848
specified in Section VI., Paragraph F of this Policy shall be utilized where applicable and 849
to the maximum extent possible, as time and circumstance allow. The RFP/RFQ 850
procedure is required for all Professional and Maintenance service contracts over 851
$25,000 (See Exceptions to Competitive Bidding Requirements in Section VI., 852
Paragraph A). For all service contracts, the standard "Professional Services Agreement" 853
shall be used and a separate Scope of Work attached to each Agreement. The 854
following matrix provides purchasing procedures when contracting for Professional and 855
Maintenance services. 856
857
Standard Professional and Maintenance Service Contracts (includes contracts for 858
Fee Recovery Vendors1) 859
860
$3,000 or less
No bidding or quotes required.
No Purchase Order required.
Use petty cash up to $50, and check request or credit
card up to $3,000.
Department Head or designee signs invoice and
submits to the Finance Department.
Contracts up to
$10,000
Department Head approves contracts and change
orders up to a cumulative value of $10,000 (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.
Contracts over
$10,000 up to
$25,000
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.
1 See Section VI for definition of Fee Recovery Vendors.
23
864426.1
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
$25,000 up to
$45,000
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 along with requisition to Finance
Department.
Finance Department prints and mails Purchase Order
to vendor.
Contracts over
$45,000
City Council approves contracts and change orders
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.
24
864426.1
* For Professional Services associated with Public Works projects, including, but not 861
limited to, construction management, design, or study projects, where a Professional 862
Services Agreement is executed, an Amendment to the Professional Services 863
Agreement is required if the projected final cost exceeds the original contract amount. 864
Limited to Professional Services for Public Works projects, the City Manager shall be 865
authorized to negotiate and execute, without City Council action, one or more Change 866
Orders to the Professional Services Agreement, provided that the amount is within the 867
contract contingency and project budget, and the Change Order does not exceed 10% 868
of the original contract amount or $50,000, whichever is less. 869
870
SECTION V – PUBLIC WORKS PROJECTS 871
Public Works projects include construction, reconstruction, erection, alteration, 872
renovation, improvement, demolition, and repair work involving any facility owned, 873
leased, or operated by the City as defined in California Public Contract Code section 874
22002, or as subsequently amended. The definition also includes painting/ repainting, 875
plumbing, electrical wiring, and/or other trade work for any facility owned, leased or 876
operated by the City. Construction, erection, improvement, or repair of dams, 877
reservoirs, and electrical transmission lines of 230,000 volts and higher that are owned 878
by the City, are also considered a public project. 879
A public project does not include maintenance work, consisting of routine, recurring, and 880
usual work for the preservation or protection of facilities owned or operated by the City, 881
including minor repainting. Street and highways resurfacing at less than one inch (1”) 882
deep, landscape maintenance (mowing, watering, trimming, pruning, planting, 883
replacement of plants, and servicing of irrigation and sprinkler systems) are not a public 884
project and contracts for services related to this maintenance work is covered under 885
Section IV – Service Contracts. 886
It is the City of San Juan Capistrano’s policy to follow the Uniform Construction Cost 887
Accounting Procedures (UCCAP) for all Public Projects, as set forth in the Public 888
Contract Code Article 2, commencing with Section 22010 (see Appendix A). Also, see 889
City Resolution 06-09-19-04 as approved on September 19, 2006 in Appendix A. It is 890
also the City of San Juan Capistrano’s policy to adopt the purchasing limits and policies 891
as set forth in Public Contract Code Sections 22030 to 22045, as amended (See 892
Appendix A). In the event there is an inconsistency between the policies stated herein 893
and Public Contract Code Sections 22010, et seq., the provisions of the Public Contract 894
Code Sections 22010, et seq., shall prevail. 895
If an informal bid result for the lowest and most qualified bidder results in a bid over 896
$175,000, and up to $187,500, the project may proceed with the informal bid process, 897
and the City Council must approve such an award by four-fifths vote consistent with 898
Public Contract Code Section 22034. If an informal bid result for the lowest and most 899
qualified bidder is over $187,500, the project must be formally re-bid for City Council 900
approval. The following matrix provides purchasing procedures when contracting for 901
Public Construction projects. 902
903
25
864426.1
Contracts up to
$45,000
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.
Follow the informal bidding procedures (See Section
VII. Paragraph G) or performed consistent with Public
Contract Code section 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.
Contracts over
$45,000 and up to
$175,0002
City Council approves contracts and change orders
that would result in cumulative value (change orders
plus original contract) not to exceed $175,000. 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.
City Council awards bid/contract.
Department prepares two contract documents and
obtains vendor signatures.
Department submits to City Clerk Contract Transmittal
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.
26
864426.1
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
$175,000
City Council approves contracts exceeding $175,000.
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.
City Council awards bid/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.
904
Additionally, for all Public Works contracts (for a “public works” as defined in Labor 905
Codes 1720 and 1720.3), the following legal requirements shall be incorporated into all 906
procurements: 907
For contracts over one thousand dollars ($1,000), the contract shall require that 908
prevailing wage be paid (not applicable to janitorial services). 909
For contracts over $25,000, the contractor that is awarded a public works 910
contract shall, before commencement of work, file a payment bond with and 911
approved by the Finance Department that is no less than 100 percent of the total 912
amount due under the contract, and all bids for such contracts shall state that 913
such payment bond is required. 914
915
27
864426.1
Prequalification of Contractors Seeking To Bid on Public Works Projects 916
In accordance with the provisions of California Public Contract Code section 20101, the 917
City may establish a program to pre-qualify contractors and subcontractors to bid on the 918
City's Public Works projects. 919
920
SECTION VI - CHANGE ORDERS FOR PUBLIC WORKS PROJECTS 921
922
These guidelines shall govern the process and administration of Public Works project 923
contracts including change orders, time extensions, and budgetary amendments 924
relating to Capital Improvement Projects. Implementation of these guidelines will allow 925
the City to implement Public Works projects and Capital Improvement projects in a 926
timely fashion. 927
928
For Change Orders for Public Works Contracts, all of the following shall apply: 929
930
1. The total of all Change Orders approved without prior City Council Authorization 931
shall not exceed the project contingency as established by the City Council at the 932
time of the award of bid (typically 10% above the approved bid amount). 933
934
2. The City Manager may, at her/his discretion, bring any Change Order before the 935
City Council. 936
937
3. During the construction period, pursuant to a contract awarded by the City 938
Council, the City Manager is authorized to negotiate and execute without City 939
Council action, one or more Change Orders provided that they do not exceed 940
10% of the original contract provided the amount is within the contract 941
contingency and project budget. In no case shall this change order authority 942
exceed $100,000. 943
944
4. The Project Manager is responsible to process required paperwork to modify the 945
Contract to reflect the approved change order(s) and Contract Amendments. 946
947
5. Any deviations from the policy must be reviewed and approved by the City 948
Council. 949
950
TIME EXTENSIONS 951
952
1. The City Manager may approve any time extension required that is caused by 953
weather delays and/or material availability delays. 954
955
956
957
28
864426.1
SECTION VII – BIDDING PROCEDURES 958
959
A. Introduction to Bidding Procedures 960
Overview 961
This policy requires that certain bidding procedures be followed when purchasing 962
goods, supplies, equipment and materials; contracting for professional and maintenance 963
services; and contracting for non-public works and Public Works projects. The 964
competitive bidding process ensures that the City will obtain the best combination of 965
pricing, quality, service, and availability of products and services. Splitting a purchase to 966
circumvent the bidding limits is specifically prohibited by the City’s Municipal Code and 967
by State law. 968
969
The total dollar value of the goods, services, or projects determines whether formal or 970
informal bidding procedures must be followed, as shown below. In certain instances, 971
bidding procedures may not be required. 972
973
Goods, Supplies, Equipment and Materials and Non-Public Works Projects 974
Contracts 975
No Bidding Required: Less than $3,000 976
Informal Quote: $3,000 - $25,000 977
Formal Bidding (RFP): Over $25,000 978
979
Professional and Maintenance Services Contracts 980
No Bidding Required: Less than $3,000 981
Informal Quote: Contracts up to $25,000 982
Formal RFP/RFQ Bidding: Contracts over $25,000 983
984
Public Projects 985
No Bidding Required: Contracts up to $45,000 986
Informal Bidding: Contracts $45,000 to $175,000 987
Formal Bidding: Contracts over $175,000 988
989
The Contract Transmittal Form (See Appendix B) requires the identification of the 990
project, funding sources, contract type, insurance and bond requirements, and sets forth 991
the type(s) of publications required, including whether the City Clerk needs to publish a 992
Notice Inviting Formal Bids. In some instances, the City Manager may require City 993
Council approval prior to advertising. 994
995
Documenting the Bid Process 996
Bidding procedures must always be documented. The originating department is 997
responsible for completing a Bid Recap form for all purchases and contracts of $3,000 998
or more. The Bid Recap form identifies the vendors who have been contacted, the 999
name of the successful bidder, the amount of the contract, and the reason(s) for the 1000
successful bidder’s selection. 1001
1002
29
864426.1
B. Qualified Bidder List 1003
In some instances it is in the best interest of the City to have current ongoing contracts 1004
with multiple consultants for the same or very similar services (i.e. services that can be 1005
defined as to scope of work but not as to required events such as contract planning 1006
services, soils testing, contract building maintenance services, etc.). These services 1007
would best be handled by establishing a qualified bidders list and by entering into an 1008
ongoing professional services contract when the service is required. 1009
1010
There are generally three categories of contractors that are placed on the Qualified 1011
Bidders List. The first is maintenance contractors that provide services with recurring 1012
and usual work for the preservation or protection of any publicly owned or publicly 1013
operated facility for its intended purposes. The second is professional service 1014
contractors that are educated or licensed specialists who provide services of an 1015
advisory nature and provide recommendations for a course of action, an end product, or 1016
the transmittal of information. The third is qualified construction contractors who are 1017
called upon through an informal bidding process to perform Public Works projects 1018
pursuant to subdivision (b) of Section 22032 of the Public Contract Code (See Section 1019
VI. Paragraph E below for procedural guidance on the informal bidding process). 1020
1021
There shall be one Qualified Bidders List (vendor, consultant and/or contractor) for 1022
ongoing service requirements related to professional services, maintenance services, 1023
and Public Works projects, categorized by the type of product sold or work performed 1024
for use in soliciting bids. A “qualified” bidder is a bidder that demonstrates the following 1025
characteristics: 1026
Can provide product quality, fitness, and capacity for the required usage. 1027
Has the ability, capacity and skill to perform the contract or provide the 1028
service required. 1029
Has demonstrated character, integrity, reputation, judgment, experience, and 1030
efficiency, particularly with reference to past purchases by the City or other 1031
public agencies. 1032
Has the ability to perform within the time required. 1033
Has shown quality of performance and/or of products provided in previous 1034
contracts or services with the City or other public agencies. 1035
Can meet all insurance requirements. 1036
1037
The process for selecting qualified bidders shall begin with an Informal Solicitation 1038
of Qualifications (SOQ). Criteria required for the development of an SOQ can be 1039
found in Section VI, Paragraph C below. The City shall endeavor to obtain a 1040
minimum of three SOQ’s for the services required and qualified bidders shall be 1041
added to the Qualified Bidders List based on acceptable qualifications. 1042
1043
Evaluating Bids: The Department/Division Head or designee(s) shall select the 1044
consultants which, in their evaluation process, is the most qualified to perform the work. 1045
The evaluation and selection process shall be based upon the following considerations: 1046
1047
1. General quality and responsiveness to the request, including but not limited to: 1048
Responsiveness to the terms, conditions, and items of performance. 1049
Grasp of the problem, work to be performed, and approach to be used. 1050
30
864426.1
2. Organization and personnel making the proposal must provide: 1051
Evidence of good organizational and management practices. 1052
Qualification of the personnel. 1053
Specialized experience of the firm and its personnel relative to the required 1054
services. 1055
References who can be contacted to verify past record of performance (i.e., 1056
completion of a quality product in a timely manner and within budget constraints). 1057
Previous consultant experience. 1058
The financial condition of the firm. 1059
Capacity of the firm to perform the subject project within a required timeframe. 1060
1061
3. If appropriate, the price, in any of the following formats, may be considered. 1062
Total price and price breakdown. 1063
Price range. 1064
Cost schedule. 1065
1066
The Qualified Bidders List shall be approved by the City Council at least every three 1067
years. All vendors on the Qualified Bidders List shall be reviewed and approved by the 1068
City Manager on an annual basis. Professional Services Agreements (PSA) for 1069
qualified bidders will not be executed until selected to perform a service. At that time, 1070
and through the term of the contract, the terms of the PSA for the selected vendor will 1071
be controlling for any subsequent projects undertaken by the same or different 1072
departments. PSA’s can be amended at any time and are subject to the signature 1073
authority limits indicated in this policy. All contracts shall have a defined end date. 1074
1075
Fee recovery vendors on the Qualified Bidders list are for development projects paid 1076
by developers (examples: outside EIR, plan check review). A specific fee recovery 1077
service provider may be retained to perform services on other projects, provided that 1078
the combined fees do not exceed $250,000 per project per fiscal year. The City Council 1079
approves contracts with fee recovery vendors; however, within the scope of each 1080
contract, Department Heads may approve services for up to $50,000 per project. 1081
1082
Non-fee recovery vendors on the list have no offsetting revenue from developers. A 1083
specific non-fee service provider may be retained to perform services on other projects, 1084
provided that the combined fees do not exceed $150,000 per department per fiscal 1085
year. 1086
1087
C. Informal Solicitation of Qualifications (SOQ) 1088
An SOQ refers to the process that establishes criteria for evaluating firms that request 1089
placement on the City’s Qualified Bidders List. Such firms must submit an SOQ setting 1090
forth the qualifications of members of the firm and providing any other information 1091
required by the announcement of the project or desired service. The 1092
Department/Division shall strive to, whenever possible, solicit at least three 1093
qualifications/proposals in writing. When it is not practical, nor cost effective, to receive 1094
three qualifications/proposals in writing, the Department Head at his/her discretion, may 1095
choose the vendor best suited for the needs of the particular project or service category. 1096
1097
31
864426.1
A public notice shall be advertised on the City’s website and in applicable publications 1098
to obtain SOQ’s from qualified service providers. It is important that the specifications 1099
are accurate and comprehensive. Informal quotations must be documented to the 1100
satisfaction of the City Manager or the Chief Financial Officer. Ideally, documentation 1101
should include: 1102
1103
The name of the company. 1104
The person giving the quote. 1105
The date and time of the phone call. 1106
Understanding of the required scope of services. 1107
Specialized experience of the firm and its personnel relative to the required 1108
services. 1109
References who can be contacted to verify past record of performance, i.e., 1110
completion of a quality product, in a timely manner, and within budget 1111
constraints. 1112
The capacity of the firm to perform the subject project within a required 1113
timeframe. 1114
Estimated price. 1115
1116
As events occur and need arises, work will be assigned to the firms/individuals on the 1117
Qualified Bidders List at the sole discretion of the Department Head. 1118
1119
Negotiation: The Department Head or designee(s) shall discuss with the highest ranked 1120
firm(s) the requirements of the project, the scope of services needed to meet the 1121
requirements, and negotiate a reasonable fee for the established work assignment. 1122
D. Lowest Responsible (Responsive and Qualified) Bidder 1123
Bids should be awarded to the responsive and qualified bidder who submits the lowest 1124
bid. A responsive bid is one that is in substantial conformance with the requirements of 1125
the invitation to bid, including specifications and the City’s contractual terms and 1126
conditions. Conformance may also include providing proof of insurance, completed 1127
forms, references, and all other information as requested in the bid document. Bidders 1128
who substitute terms and conditions or who qualify their bids in such a manner as to 1129
nullify or limit their liability shall be considered non-responsive bidders. 1130
1131
Cost is not necessarily the only determining factor when selecting the successful bidder. 1132
In addition to price, the following elements should also be considered in determining 1133
whether a bid is responsible: 1134
1135
1. The successful bidder must demonstrate the ability to fulfill a contract, including 1136
providing subsequent and continuing service. Staff may request proof of a 1137
prospective bidder’s reliability, proof of financial resources, a list of current or 1138
previous customers, and other pertinent data. Such requests may also be taken after 1139
receipt of bids. 1140
1141
2. A bidder may be determined to be non-responsible if the bidder fails to furnish proof 1142
of qualifications when required. 1143
32
864426.1
3. The products offered provide the quality, fitness, and capacity for the required 1144
usage. 1145
1146
4. The bidder has the ability, capacity and skill to perform the contract satisfactorily and 1147
within the time required. 1148
1149
5. The bidder’s experience regarding past purchases by the City or other public 1150
agencies demonstrates the reliability of the bidder to perform the contract. 1151
1152
When a department recommends awarding a bid to other than the low bidder, written 1153
justification must be provided on the Bid Recap form and the City Council agenda report 1154
if City Council approval is required. 1155
1156
E. Informal Quotes 1157
Informal quotes should be used to assure the most competitive price is received for an 1158
item, while avoiding the additional time and expense involved in formal bidding. The 1159
Department/Division shall make every attempt to receive at least three bids in writing or 1160
over the phone if not already obtained from the Qualified Bidders List. Bids must be 1161
documented in the Bid Recap Form to the satisfaction of the Chief Financial Officer. The 1162
Department/Division should make every reasonable attempt to obtain at least three 1163
bids. In the event that three viable quotes are not received, the division shall document 1164
what steps were taken to obtain quotes, any vendors contacted that declined to bid, and 1165
if applicable why it is not practical to receive three quotes. 1166
The Department/Division/Project lead shall evaluate the three informal quotes received 1167
and determine the lowest most responsible bid. The City reserves the right to accept 1168
that bid which is in the best interest of the City. 1169
When selecting the recommended bidder the Department/Division Head will take into 1170
consideration: 1171
Price. 1172
Ability, capacity, and skill. 1173
Ability to meet time requirements. 1174
Character, integrity, and reputation. 1175
Previous vendor experience. 1176
Financial resources available for contract performance. 1177
1178
F. Formal Request for Proposal or Request for Qualifications (RFP/RFQ) 1179
1180
The Request for Proposals (RFP) or Request for Qualifications (RFQ) bidding process 1181
is designed to ensure the City that it has engaged the most qualified consultant 1182
available for the engagement. This process generally takes more time and expense 1183
than informal solicitations of qualifications and in some instances may actually not be 1184
the most cost-effective approach. Unlike formally bid contracts, the City Clerk does not 1185
publicly open requests for proposals or requests for qualifications for professional 1186
services. 1187
1188
33
864426.1
1. Because RFP/RFQ’s ask for a subjective product, they should contain the greatest 1189
detail possible, and may include the following: 1190
a. A precise description of the problem or objective 1191
b. The services to be performed 1192
c. The product to be provided 1193
d. The anticipated time schedule for: 1194
1195 Submittal of RFP/RFQ (date and time). 1196
Any pre-proposal conference (date, time and location). 1197
Review and evaluation of the proposals. 1198
Award of the contract. 1199
Commencement of work on the project. 1200
Completion date. 1201
1202
e. Evaluation factors and the relative importance of each. 1203
1204
f. Expectations or limitations on the part of the City, including: 1205
1206
The format, form and quantity of any expected reports. 1207
The extent/nature of assistance/cooperation available from the City. 1208
1209
g. Expected content of the RFP/RFQ, including: 1210
1211
The overall description of techniques to be used. 1212
Listing of similar services provided to other clients. 1213
Listing of available references to contact. 1214
Description and qualifications of assigned lead and supporting personnel. 1215
Time and staff expected to be expended. 1216
Facilities and equipment to be used. 1217
Portion of contract to be performed by sub-contractors. 1218
Subcontractors/Sub consultants qualifications. 1219
Cost, in summary and total, and desired method of payment. The RFP/RFQ 1220
for services may, but is not required to, state the amount budgeted for the 1221
service. 1222
1223
h. Contractual requirements including, but not limited to: 1224
Prohibition against assignment. 1225
Indemnification. 1226
Insurance requirements. 1227
Bonding requirements. 1228
Warranties. 1229
Compliance with federal, state and City laws, rules and regulations. 1230
Compliance with any grant related regulations. 1231
Sample contract. 1232
Requirement to pay prevailing wages, if applicable. 1233
1234
1235
34
864426.1
i. Construction project management service RFP’s/RFQ's may require evidence be 1236
provided of experience in construction project design review and evaluation, 1237
construction mobilization and supervision, bid evaluation, project scheduling, 1238
cost-benefit analysis, claims review and negotiation, and general management 1239
and administration of a construction project. 1240
1241
j. Additional requirements specific to the scope of work as determined by the 1242
responsible department and/or Finance Department. 1243
1244
2. Issuing the RFP 1245
1246
To ensure maximum exposure and competition, the responsible department shall 1247
prepare a list of potential firms to receive the RFP/RFQ. 1248
1249
a. If required or desired, the responsible department will submit the RFP notice to 1250
be advertised on the City’s website, online through the City’s bidding web 1251
service, or in a local newspaper of general circulation. The notice will be 1252
published one or more times beginning at least fourteen calendar days prior to 1253
the designated closing. Additional advertisements may be placed in a regional 1254
newspaper of general circulation; appropriate professional or trade journals; and 1255
state or governmental publications designed for public notice. 1256
1257
b. A reasonable length of time between solicitation and closing dates must be 1258
allowed to provide potential respondents time for preparation in accordance with 1259
the complexity, the size of the project, and the scope of advertising. 1260
1261
c. City staff may conduct conferences to explain the requirements of the project. A 1262
sufficient amount of time should be allowed after the RFP has been issued to 1263
allow potential respondents to become familiar with the project. Any clarification 1264
or changes required to the RFP/RFQ, as a result of the conference, shall be 1265
added as a written amendment. A summary of the conference shall be provided 1266
to all prospective respondents receiving the request. 1267
1268
d. The requesting department shall prepare sufficient copies of the RFP to allow 1269
distribution to potential respondents of record and responses to the published 1270
advertisements. In addition, the department shall maintain a list of RFP’s issued 1271
and responses. 1272
1273
e. Amendments should be used to make any changes in quantities, descriptions, 1274
schedules, or to correct defects or ambiguities in the original RFP/RFQ. 1275
Amendments are provided to ensure that all potential respondents are furnished 1276
with the same information with which to prepare proposals. 1277
1278
f. Amendments to the RFP/RFQ shall be identified as such and shall require 1279
acknowledgment as such by firms receiving the RFP/RFQ. Amendments shall be 1280
sent to all known recipients of the RFP/RFQ within a reasonable time period 1281
before the closing date. If the time and date established for the receipt of 1282
proposals does not allow sufficient time for consideration and changes, the time 1283
and date will be modified by amendment. 1284
35
864426.1
3. Proposal Receipt and Opening: 1285
1286
a. Proposals shall be submitted to the originating department and shall be clearly 1287
identified with the Proposal number on the envelope. Faxed or other electronic 1288
proposals are not acceptable. 1289
1290
b. All proposals shall be time stamped and those received by 5:00 p.m. of the 1291
designated closing day will be opened on the following workday for preliminary 1292
review. 1293
1294
c. Any proposal received after the time specified in the RFP/RFQ shall be returned 1295
unopened. 1296
1297
d. To avoid disclosure of the contents of competing RFP/RFQs, proposals will be 1298
opened in the presence the Department Head or his or her designee. 1299
1300
e. Respondents may modify or withdraw their proposals prior to the established 1301
closing date and time, without penalty. However, any modifications submitted 1302
after the established closing date and time will not be accepted. Such 1303
modifications will be returned to the respondent, unopened. 1304
1305
f. The Department shall maintain a list of proposals received, including name and 1306
address of respondent, the number of modifications received, if any, and any 1307
additional information requested. The register will be open to inspection after the 1308
award of the contract or the rejection of all proposals. 1309
1310
g. Proposals and modifications shall be shown only to the evaluation committee 1311
personnel, and the Department Head until a recommendation is made to City 1312
Council or all proposals have been rejected. 1313
1314
4. Rejection of Proposals: The City reserves the right to reject any and all proposals, to 1315
accept or reject any one or more items of a proposal, or to waive any irregularities or 1316
informalities in the proposal or the RFP/RFQ process if to do so is deemed to best 1317
serve the interests of the City. The authority to reject any proposal shall be 1318
consistent with the levels of authority based on dollar thresholds described above. 1319
1320
5. Evaluation Factors and Method: Because unique services are requested, cost is not 1321
considered the primary selection criteria. 1322
1323
a. Evaluation factors may include: 1324
1325
General quality and responsiveness of the proposal, including but not limited 1326
to: 1327
Responsiveness to the terms, conditions, and items of performance; 1328
Completeness and thoroughness of the proposal; 1329
Grasp of the problem, work to be performed, and approach to be used. 1330
1331
36
864426.1
Organization and personnel making the proposal: 1332
Evidence of good organizational and management practices; 1333
Qualification of the personnel; 1334
Specialized experience of the firm and its personnel relative to the 1335
required services; 1336
References who can be contacted to verify past record of performance, 1337
i.e., completion of a quality product, in a timely manner, and within budget 1338
constraints; 1339
The financial condition of the firm; 1340
Capacity of the firm to perform the subject project within a required time 1341
frame. 1342
1343
If appropriate, the price, in any of the following formats, may be considered. 1344
Total price and price breakdown; 1345
Price range; 1346
Cost schedule. 1347
1348
b. A Selection Committee shall be formed to evaluate the submitted data and 1349
determine the products that should receive further consideration. The Committee 1350
shall be appointed by the Department Head, subject to the approval of the City 1351
Manager or the Chief Financial Officer, and may consist of more than one 1352
department. 1353
1354
c. The Selection Committee may choose to interview all of the responding 1355
consultants, only the top few ranking consultants or to not perform interviews. 1356
1357
d. After the interviews (if applicable), the Selection Committee shall rank the 1358
consultants based on their proposals, interviews, and references. 1359
6. Exceptions to Formal RFP/RFQ: The formal RFP/RFQ process may be bypassed in 1360
the following three instances: 1361
1362
a. In emergency situations where time is of the essence, the City Manager may 1363
dispense with the formal RFP/RFQ process to obtain services necessary in 1364
dealing with the emergency. Immediately following the emergency, the City 1365
Manager shall submit to Finance Department an Emergency Authorization Form. 1366
1367
b. When one known service provider is available, the Department Head shall 1368
prepare a report for City Manager or City Council approval, depending on the 1369
dollar threshold, requesting an exemption from the RFP/RFQ procedures and, if 1370
applicable, awarding the bid to the “sole source.” 1371
1372
c. When there are extenuating circumstances that would make the formal RFP/RFQ 1373
process not the most cost effective approach. This often relates to qualitative, 1374
artistic or proprietary software/technological issues. The appropriate Department 1375
Head shall prepare a report to the City Council requesting an exemption from the 1376
formal RFP/RFQ process. 1377
1378
37
864426.1
7. Negotiation: The Department Head or designee(s) shall discuss with the highest 1379
ranked firm(s) the requirements of the project, the scope of services needed to meet 1380
the requirements, and negotiate a reasonable fee/contract for the established work 1381
assignment. 1382
1383
G. Informal Bid Process 1384
1385
The department shall prepare a Notice Inviting Informal Bids to describe the project in 1386
general terms, how to obtain more detailed information on the project, and the time and 1387
place for the submission of bids. The proposed contract and applicable bond and 1388
insurance requirements should always be included in this Notice Inviting Informal Bids. 1389
The department also completes the Contract Transmittal Form (See Appendix B) that 1390
identifies the project, funding sources, contract type, insurance and bond requirements, 1391
and the type(s) of publications required, including whether the City Clerk needs to 1392
publish a Notice Inviting Informal Bids. In some instances, the City Manager may 1393
require City Council approval prior to advertising. 1394
1395
The department mails the Notice Inviting Informal Bids to all construction contractors 1396
on the Qualified Bidders List (See Section VI.C for more information on developing the 1397
Qualified Bidders List) for the category of work being bid and advertises in all 1398
designated construction trade journals not less than 10 calendar days before bids 1399
are due. Additionally, the Department Head is encouraged to post the Notice Inviting 1400
Informal Bids to the City’s web site. The City Clerk will publicly open all bids at the time 1401
and place stated in the public notices. 1402
1403
For all Public Works projects up to $175,000, the City shall comply with all statutory 1404
requirements for informal bidding procedures as set forth in Public Contract Code 1405
sections 22030, et seq. 1406
1407
After the successful bidder has been selected, the department prepares two original 1408
contracts and obtains the contractor’s signature. After the contract is approved (signed) 1409
by the City Manager, the department then submits a completed Contract Transmittal 1410
Form, bid recap and the signed contracts to the City Clerk’s Office. 1411
1412
H. Formal Bid Process 1413
1414
The City shall solicit formal bids in accordance with Public Contract Code Sections 1415
22037-22044. (See Appendix A) 1416
1417
The initiating Department/Division shall be responsible for completion of the formal bid 1418
process; however, the process shall be coordinated with the City Clerk’s Office and the 1419
Finance Department. 1420
1. Bid Forms: The initiating department shall prepare a bid form including detail 1421
specifications for the services to be purchased. The following format is suggested for 1422
competitive bids: 1423
38
864426.1
a. Submission of bids (or proposals) – Include date, time, location and bid 1424
number as assigned by the City Clerk. Include a detail list of the information 1425
the bid or proposal should contain. 1426
b. Questions – List the name, address, and telephone number of the City person 1427
to be contacted concerning questions about the project. 1428
c. Background - Provide as much background as necessary to give the bidder 1429
an understanding of the environment in which the job will be performed and to 1430
which the job relates. 1431
d. Scope of work – Describe in detail the requirement for the job and detail 1432
specification. 1433
e. Desired project schedule – Be as specific as possible. 1434
f. Minimum and desirable qualifications – Be as specific as possible. 1435
g. Performance Bond- Whether a performance bond is required and if so, the 1436
amount and form of bidders security. 1437
h. Sample Contract- A sample of the contract that is expected to be used should 1438
be included in the bid package. 1439
2. Notice Inviting Bids: The initiating department shall also prepare a notice inviting 1440
bids that includes the following: 1441
a. A general description of the services to be purchased. 1442
b. A statement indicating where bid forms, specifications and bonding 1443
requirements can be obtained. 1444
c. A statement specifying the time and place for the opening of the bids. 1445
d. The notice shall be published at least fourteen calendar days before the date 1446
of the opening of bids in a newspaper of general circulation, printed and 1447
published in the City. (It is recommended that it be published twice, not less 1448
than five days apart). 1449
e. The notice shall also be mailed to all construction trade journals specified in 1450
Section 22036 of the Public Contract Code. The notices shall be mailed at 1451
least thirty (30) calendar days before the date of opening the bids. 1452
1453
3. Bid Opening 1454
a. Sealed bids shall be submitted to the City Clerk’s office and shall be clearly 1455
identified with the Bid number on the envelope. Upon receipt, the City Clerk 1456
shall date and time stamp the envelope. Faxed or other electronic bids are 1457
not acceptable. 1458
b. Bids shall be opened in public at the time and place stated in the public 1459
notice. 1460
c. The City Clerk or his/her designee shall open the bids and shall record all 1461
bids received. 1462
d. Any bid received after the time specified in the notice shall be rejected. 1463
39
864426.1
e. When a bidder’s security is required, it will be announced in the public notice 1464
inviting bids. The amount shall be determined at the time of preparation of the 1465
bid. It shall be in the form of cash, certified or cashier’s check, certificate of 1466
deposit in the City of San Juan Capistrano’s name or bid bond made payable 1467
to the City of San Juan Capistrano. When a bidder’s security is required, a bid 1468
shall not be considered unless one of the aforementioned forms of security 1469
accompanies the bid. Bidders shall be entitled to return of the bid security 1470
with the following exception: 1471
The successful bidder must execute the contract and file acceptable 1472
documents within thirty (30) calendar days from the date of award unless 1473
extended by the City Manager. Failure to execute the contract shall be just 1474
cause for annulment of the award and forfeiture of the bidder’s security, not 1475
as a penalty, but as liquidated damages. The City Council may, upon refusal 1476
or failure of the successful bidder to execute the contract, award the contract 1477
to the next lowest responsive and responsible bidder. 1478
f. All bids received shall be available for inspection during regular business 1479
hours in the City Clerk’s office for a period of not less than thirty (30) calendar 1480
days after the bid opening. 1481
1482
g. All bids received shall be available for inspection during regular business 1483
hours in the City Clerk’s office for a period of not less than thirty (30) calendar 1484
days after the bid opening. 1485
1486
4. Rejection of Bids: The City reserves the right to reject any and all bids, to accept or 1487
reject any one or more items of a bid, or to waive any irregularities or informalities in the 1488
bids or the bidding process if to do so is deemed to best serve the interests of the City. 1489
If, after the first invitation of bids, all bids are rejected, the City may elect to re-advertise 1490
for bids or have the project done by force account. (See Section 22038 of the Public 1491
Contract Code for Procedures and limitations). 1492
5. Determining Lowest Responsive and Responsible Bidder: Award of bid shall be 1493
to the lowest responsive and responsible bidder. All valid responsive and responsible 1494
bids shall be considered in determining the lowest bid. Before the award, the bidder 1495
may be required to furnish evidence of capability, equipment and financial resources to 1496
adequately perform the work. Bidders not found to be responsive or qualified may have 1497
their bid rejected. 1498
6. Tie Bids: If tie bids are received, quality and service being equal, the contract shall 1499
be awarded to a local bidder. 1500
If the above condition is not applicable, the City may, at its discretion: 1501
a. Reject any and all bids presented and re-advertise; or 1502
b. City may accept either one or accept the lowest bid made by negotiation with the 1503
tie bidders; or 1504
c. Award the bid to any one of the low tie bidders by public drawing. 1505
40
864426.1
7. Awarding the Bid: Once the bids have been evaluated, the Department 1506
Head/Division Head shall prepare a report to Council recommending the most 1507
responsive and responsible bidder. The Council shall then award the bid in a public 1508
meeting. 1509
All public project contracts exceeding $45,000 must be awarded by the City Council. 1510
Otherwise: 1511
a. Such purchases are void and not considered an obligation of the City. 1512
b. Invoices may be returned to the contractor/service provider unpaid. 1513
c. The person ordering the unauthorized purchase may be held personally liable for 1514
the costs of the contract. 1515
1516
I. Exceptions to Competitive Bidding Requirements 1517
1518
The bid process may be bypassed with Department Head approval in the following four 1519
instances: 1520
1521
1. In emergency situations where time is of the essence, the appropriate Department 1522
Head may dispense with bidding procedures with City Manager approval. For the 1523
purpose of this section, emergency situations are those procurements required to 1524
prevent the immediate interruption or cessation of necessary City services or to 1525
safeguard life, property, or the public health and welfare. If the emergency 1526
procurement would have otherwise required formal or informal bidding procedures, 1527
the department must obtain City Council ratification of the purchase at the next 1528
regularly scheduled meeting. See Section I. Paragraph G. for additional information 1529
on emergency purchases. 1530
1531
2. When commodities and services can be obtained from only one vendor, the 1532
Department Heads shall document that it is a “sole source” purchase on the Bid 1533
Recap form. Most sole source purchases shall be the result of the City deciding that 1534
it is in its best interest to use a specific vendor or proprietary brand item. All sole 1535
source purchases must be justified by written documentation (bid recap) signed by 1536
the appropriate department head and approved by the appropriate party prior to 1537
being forwarded to the Finance Department. 1538
1539
3. When there exists other governmental contracts that were competitively bid (such as 1540
State Contracts, DGS, etc.) that the City is eligible to use. 1541
1542
1543
41
864426.1
SECTION VIII – DISPOSTION OF SURPLUS PROPERTY/CAPITAL ASSETS 1544
(OTHER THAN REAL PROPERTY) 1545
1546
Surplus Property Definition 1547
Supplies and equipment are considered surplus if they are no longer required by the 1548
using department, because of decreased use, poor condition, damage not worth the 1549
cost of repair, and/or obsolescence. Examples of property include small items, such as 1550
binders, calculators, and electric staplers, as well as inventoried items, such as printers, 1551
pool cars, and desks. Property can also include capital assets, which are the items that 1552
generally have a higher unit cost and are inventoried as capital assets. Examples of 1553
capital assets are water fountains, playground equipment, and building or structural 1554
components, such as roofs, restrooms, and roadways. This definition of surplus 1555
property excludes real property. 1556
1557
Surplus Property Determination/Valuation 1558
The Department Head should first determine if a supply, piece of equipment, or capital 1559
asset has become surplus, based on the definition given above. The next step is to 1560
determine the current value of the surplus property item, either from an existing source 1561
document or a reasonable estimate of replacement value, if the original source 1562
document is no longer available through the City’s records management system. 1563
1564
If the current value of the surplus property item is less than $500, the Department Head 1565
or designee should bring the surplus property item directly to Finance Department in 1566
order to log its receipt, determine its disposition, and then coordinate its disposal. 1567
1568
Surplus Property/Capital Asset Disposition Form (See Appendix B) 1569
If the property item is deemed surplus and its current value is over $500, then the 1570
Department Head must complete a Surplus Property/Capital Asset Disposition form. 1571
This form is available on the City’s Intranet. One copy of the form should be circulated 1572
for signatures. 1573
1574
On the disposition form, the Department Head should list the item’s description, serial 1575
number, fixed asset tag number (if applicable), location, and condition. The Department 1576
Head should indicate the property’s condition (good, fair, poor, or broken) and then 1577
recommend a method of disposal for the property (see the following section for 1578
descriptions of disposal methods). After selecting the recommended action and noting 1579
any other comments, the Department Head must sign and date the Surplus 1580
Property/Capital Asset Disposition form and forward it to the Purchasing Officer. 1581
1582
Methods of Disposal 1583
There are several ways to dispose of surplus property, including: 1584
Transfer to another department; 1585
Trade in for new material, equipment or credit; 1586
Sell; 1587
Donate; or 1588
Scrap. 1589
1590
42
864426.1
Transfer to another Department 1591
Departments can transfer surplus property to one another, subject to the approval of 1592
both of the Department Heads affected by the transfer. If the current value of the item is 1593
$500 or above, the department transferring out the property should initiate a Surplus 1594
Property/Capital Asset Disposition form and both Department Heads should sign the 1595
form. If a fixed asset is being transferred (unit price of $2,000 and above), the 1596
Accounting staff will record the new location of the property in the City’s fixed asset 1597
system. 1598
1599
Trade-In 1600
Surplus property can be offered as trade-in for new equipment or material or for credit 1601
towards the acquisition of new property. If the current value of a surplus property item 1602
slated for trade-in is $500 or over, then a Surplus Property/Capital Asset Disposition 1603
form should be completed. The estimated trade in value of the surplus property or 1604
capital asset should be noted on the Surplus Property/Capital Asset Disposition form 1605
and on the purchase order issued for any new property resulting from the trade in. 1606
1607
Selling Surplus Property 1608
Surplus property may be offered for sale. All surplus property is for sale “as is” and 1609
“where is,” with no warranty, guarantee, or representation of any kind, expressed or 1610
implied, as to the condition, utility or usability of the property offered for sale. For any 1611
sale of surplus property with a current value of $500 or above, the Department Head 1612
should indicate on the Surplus Property/Capital Asset Disposition form the 1613
recommended selling method and any other notations in the Department Head 1614
approval. Appropriate methods of sale are as follows: 1615
1616
a. Public Auction – City staff may conduct public auctions or the City may 1617
contract with a professional auctioneer and/or an Internet auctioneer for this 1618
service. 1619
1620
b. Sealed bids – Sealed bids may be solicited for the sale of surplus property. 1621
Surplus property disposed of in this manner shall be sold to the highest 1622
responsible bidder. 1623
1624
c. Negotiated Sale – Surplus property may be sold outright if the Purchasing 1625
Officer determines that only one known buyer is available or interested in 1626
acquiring the property. 1627
1628
d. Selling to City Employees – If recommended by the Purchasing Officer and 1629
approved by the City Manager, certain surplus property items may be offered 1630
for sale to City employees on an exclusive basis or in conjunction with sales 1631
to the public; however, those employees whose job responsibilities involve 1632
central purchasing administration and/or functional control over the surplus 1633
property are not permitted to participate in such sales. 1634
1635
e. Selling as Salvage – Equipment, materials, supplies, fixtures, or facility 1636
components that are no longer capable of performing their intended function 1637
without extensive repair, or that are of no value except for reclamation 1638
43
864426.1
purposes, may be considered salvage. Surplus property may be sold as 1639
salvage if the Purchasing Officer deems that the value of the raw material 1640
exceeds the value of the property as a whole. 1641
1642
Donation of Surplus Property 1643
The Department Head may recommend and the Purchasing Officer may authorize, 1644
subject to the approval of the City Manager, the donation of surplus property to a non-1645
profit organization or school district located or operating in San Juan Capistrano or, 1646
secondarily, to any other non-profit organization or private organization that provides 1647
assistance to nonprofit organizations. If surplus property has been approved for 1648
donation, the Purchasing Officer will notice the availability of such property for donation, 1649
indicating the quantity, description, and location of the surplus property, by one or more 1650
of the following methods: in a local newspaper and on the City’s web site. This notice 1651
will also indicate a closing date for the receipt of all requests for donation and indicate 1652
the way in which interested parties can receive additional information. 1653
1654
Requests for donation will be accepted on a first-come, first-serve basis. The 1655
Purchasing Officer will send a letter to the non-profit organization(s) or school district(s) 1656
that respond to the notice to advise them of the City’s terms and conditions of the 1657
donation. The terms and conditions that the requestors must meet are: (1) accepting the 1658
property “as is,” with no implied warranties, (2) stating an immediate need for the 1659
property and putting it into immediate use; (3) agreeing that the property will not ever be 1660
sold or otherwise transferred for profit; and (4) assuming all costs and liability 1661
associated with the removal and transportation of the surplus property from the City. A 1662
return letter, signed by an authorized agent from the non-profit organization or school 1663
district, accepting the City’s terms and conditions is required before the surplus property 1664
can be released. 1665
1666
If, in the opinion of the Purchasing Officer, the donated property has a current value of 1667
less than $1,000, then the City Manager can approve the release of the property to the 1668
recipient(s) that meet the above criteria and agree to the City’s terms and conditions. If, 1669
in the opinion of the Purchasing Officer, the donated property has a current value of 1670
$1,000 or more, the Purchasing Officer will prepare a report to identify the specific 1671
property to be donated, the estimated current value of the property, and the proposed 1672
recipient(s) of the property for approval by City Council. After City Council’s approval, 1673
the surplus property approved for donation may then be released. 1674
1675
The department from which the donated property is being taken should remove any 1676
fixed asset or San Juan Capistrano property tags before the property is officially 1677
transferred to the recipient organization(s). 1678
1679
Scrap/No Value Item 1680
Scrap, as one method of surplus property disposal, essentially means throwing an item 1681
into the trash. Scrap is recommended only after determining that none of the other 1682
methods of disposal – selling, exchange, trade-in, donation, or salvage - is feasible. 1683
Broken items that can be repaired economically will be fixed and returned to the using 1684
department. For any broken or inoperable piece of property that, based on the 1685
recommendation of the Department Head and the judgment of the Purchasing Officer, 1686
44
864426.1
cannot be economically repaired, traded in, sold, auctioned, donated or salvaged, the 1687
item may be scrapped, regardless of the original purchase price. 1688
1689
If the Department Head or designee recommends that an unbroken surplus property 1690
item with a current value below $500 or several unbroken surplus property items with a 1691
collective current value below $1,000 be scrapped, then he/she should bring the item(s) 1692
directly to the Purchasing Division for disposal. If the surplus property is obsolete or 1693
nonfunctional and cannot be traded in, sold auctioned, donated or salvaged, the 1694
Purchasing Officer, with the approval of the City Manager, may scrap such surplus 1695
property. 1696
1697
If a surplus property item recommended to be scrapped is not broken and has a current 1698
value equal to or above $500, or for multiple items, a combined current value equal to or 1699
above $1,000, then the Department Head must complete a Surplus Property/Capital 1700
Asset Disposition form. Under these conditions, especially if City staff will directly 1701
dispose of the item(s), Council approval to scrap will also be required. If City staff does 1702
not directly scrap this category of surplus property but a contractor is instead hired to 1703
remove and replace the property, then the disposal method is considered to be a trade 1704
in, not scrap, and the City Council approval requirement does not apply. 1705
1706
For multiple items proposed to be scrapped, the size of the lot and thus the total current 1707
value will be based on the items and values entered on the Surplus Property/Capital 1708
Asset Disposition form(s) submitted by the department. Splitting of surplus lots on these 1709
forms to avoid the City Council reporting requirements is prohibited. 1710
1711
The report to City Council to request approval to scrap will be prepared by the 1712
Purchasing Division after receipt of the completed Surplus Property/Capital Asset 1713
Disposition form. Once City Council approval is granted, the Purchasing Officer will then 1714
scrap the item(s). 1715
1716
Purchasing Officer’s Review and Final Disposition 1717
In the case of surplus property items with a current value below $500 for a single item or 1718
below $1,000 for multiple items within one lot, the departments do not have to complete 1719
a Surplus Property/Capital Asset Disposition form. Instead, the departments will 1720
physically bring the items to the Finance Department. Finance Department will receive 1721
these items from the department, and the Purchasing Officer will determine the best 1722
method for disposal of these items. A description of these surplus property items, as 1723
well as the date received from the departments, the disposal method, and the disposal 1724
date will be recorded on a surplus property log maintained by Finance Department. 1725
1726
For all surplus property items with a current value equal to or above $500 for a single 1727
item or equal to or above $1,000 for multiple items within one lot, the Purchasing Officer 1728
will review the department’s completed Surplus Property/Capital Asset Disposition form, 1729
concur with or recommend an alternate action, and then forward the form to the City 1730
Manager for approval. The Purchasing Officer will also ascertain whether City Council 1731
approval is required to donate or scrap surplus property items, depending on the current 1732
value of the items listed on the form. If further City Council action is required, then the 1733
Purchasing Officer will indicate that a report to City Council for final approval will be 1734
45
864426.1
necessary. After the City Manager has approved the Surplus Property/Capital Asset 1735
Disposition form, it will be returned to the Purchasing Officer for either preparation of a 1736
report to City Council, if needed, or for final disposition of the property. 1737
1738
After the disposal of the surplus property, the Purchasing Officer will complete and sign 1739
the Surplus Property/Capital Asset Disposition form, noting the date, disposal method, 1740
and any proceeds received, if the property was sold. The Purchasing Officer will also 1741
note the date that City Council approved the donation or scrapping of surplus property if 1742
that level of approval was required. 1743
1744
After all signatures have been obtained, a copy of the form will be sent to the initiating 1745
department and to the Accounting Division, which will remove any surplus property 1746
items that had been classified as fixed assets from the City’s Fixed Asset Records. 1747
Purchasing will keep the completed original form on file. 1748
1749
Proceeds 1750
Any proceeds received from the trade-in or sale of surplus property will be credited to 1751
the General Fund or the Facilities Operations Fund as appropriate. 1752
1753
1754
46
864426.1
APPENDIX A – PURCHASING AUTHORITIES 1755
1756
Uniform Public Construction Cost Accounting Resolution 06-09-19-04 approved 1757
September 19, 2006 1758
1759
47
864426.1
1760
1761
1762
1763
1764
1765
1766
1767
48
864426.1
CALIFORNIA CODES 1768
PUBLIC CONTRACT CODE 1769
SECTION 22030-22045 1770
1771
1772
22030. This article applies only to a public agency whose governing 1773
board has by resolution elected to become subject to the uniform 1774
construction cost accounting procedures set forth in Article 2 1775
(commencing with Section 22010) and which has notified the Controller 1776
of that election. In the event of a conflict with any other 1777
provision of law relative to bidding procedures, this article shall 1778
apply to any public agency which has adopted a resolution and so 1779
notified the Controller. 1780
1781
1782
1783
22031. (b) On or after January 1, 2013, this article shall not 1784
prohibit a board of supervisors or a county road commissioner from 1785
utilizing, as an alternative to the procedures set forth in this 1786
article, the procedures set forth in Article 25 (commencing with 1787
Section 20390) of Chapter 1 for both of the following: 1788
(1) Maintenance and emergency work. 1789
(2) New road construction and road reconstruction as long as the 1790
total annual value of the new road construction and the road 1791
reconstruction performed under the procedures set forth in 1792
subdivision (c) of Section 20395 does not exceed 30 percent of the 1793
total value of all work performed by force account other than 1794
maintenance as reported in the Controller's Streets and Roads Annual 1795
Report as of January 1 of each year. 1796
(c) On or after January 1, 2013, for a county with a population of 1797
less than 50,000, this article shall not prohibit a board of 1798
supervisors or a county road commissioner from utilizing, as an 1799
alternative to the procedures set forth in this article, the 1800
procedures set forth in Article 25 (commencing with Section 20390) of 1801
Chapter 1. 1802
(d) The requirements set forth in Section 22038 shall apply to any 1803
county subject to this section. 1804
(e) Any county board of supervisors or county road commissioner 1805
acting pursuant to the authority granted in paragraph (2) of 1806
subdivision (b) shall declare its intention to use this authority 1807
prior to commencing work. 1808
1809
1810
22032. (a) Public projects of forty-five thousand dollars ($45,000) 1811
or less may be performed by the employees of a public agency by 1812
force account, by negotiated contract, or by purchase order. 1813
(b) Public projects of one hundred seventy-five thousand dollars 1814
($175,000) or less may be let to contract by informal procedures as 1815
set forth in this article. 1816
(c) Public projects of more than one hundred seventy-five thousand 1817
dollars ($175,000) shall, except as otherwise provided in this 1818
article, be let to contract by formal bidding procedure. 1819
1820
1821
1822
1823
49
864426.1
22033. It shall be unlawful to split or separate into smaller work 1824
orders or projects any project for the purpose of evading the 1825
provisions of this article requiring work to be done by contract 1826
after competitive bidding. 1827
1828
1829
22034. Each public agency that elects to become subject to the 1830
uniform construction accounting procedures set forth in Article 2 1831
(commencing with Section 22010) shall enact an informal bidding 1832
ordinance to govern the selection of contractors to perform public 1833
projects pursuant to subdivision (b) of Section 22032. The ordinance 1834
shall include all of the following: 1835
(a) The public agency shall maintain a list of qualified 1836
contractors, identified according to categories of work. Minimum 1837
criteria for development and maintenance of the contractors list 1838
shall be determined by the commission. 1839
(b) All contractors on the list for the category of work being bid 1840
or all construction trade journals specified in Section 22036, or 1841
both all contractors on the list for the category of work being bid 1842
and all construction trade journals specified in Section 22036, shall 1843
be mailed a notice inviting informal bids unless the product or 1844
service is proprietary. 1845
(c) All mailing of notices to contractors and construction trade 1846
journals pursuant to subdivision (b) shall be completed not less than 1847
10 calendar days before bids are due. 1848
(d) The notice inviting informal bids shall describe the project 1849
in general terms and how to obtain more detailed information about 1850
the project, and state the time and place for the submission of bids. 1851
(e) The governing body of the public agency may delegate the 1852
authority to award informal contracts to the public works director, 1853
general manager, purchasing agent, or other appropriate person. 1854
(f) If all bids received are in excess of one hundred seventy-five 1855
thousand dollars ($175,000), the governing body of the public agency 1856
may, by adoption of a resolution by a four-fifths vote, award the 1857
contract, at one hundred eighty-seven thousand five hundred dollars 1858
($187,500) or less, to the lowest responsible bidder, if it 1859
determines the cost estimate of the public agency was reasonable. 1860
1861
1862
1863
1864
22035. (a) In cases of emergency when repair or replacements are 1865
necessary, the governing body may proceed at once to replace or 1866
repair any public facility without adopting plans, specifications, 1867
strain sheets, or working details, or giving notice for bids to let 1868
contracts. The work may be done by day labor under the direction of 1869
the governing body, by contractor, or by a combination of the two. 1870
(b) In case of an emergency, if notice for bids to let contracts 1871
will not be given, the public agency shall comply with Chapter 2.5 1872
(commencing with Section 22050). 1873
1874
1875
1876
22035.5. In counties that are under court order to relieve justice 1877
facility overcrowding, the procedures and restrictions specified in 1878
Section 20134 shall apply to all contracts issued under this chapter. 1879
1880
1881
50
864426.1
22036. The commission shall determine, on a county-by-county basis, 1882
the appropriate construction trade journals which shall receive 1883
mailed notice of all informal and formal construction contracts being 1884
bid for work within the specified county. 1885
1886
1887
22037. Notice inviting formal bids shall state the time and place 1888
for the receiving and opening of sealed bids and distinctly describe 1889
the project. The notice shall be published at least 14 calendar days 1890
before the date of opening the bids in a newspaper of general 1891
circulation, printed and published in the jurisdiction of the public 1892
agency; or, if there is no newspaper printed and published within the 1893
jurisdiction of the public agency, in a newspaper of general 1894
circulation which is circulated within the jurisdiction of the public 1895
agency, or, if there is no newspaper which is circulated within the 1896
jurisdiction of the public agency, publication shall be by posting 1897
the notice in at least three places within the jurisdiction of the 1898
public agency as have been designated by ordinance or regulation of 1899
the public agency as places for the posting of its notices. The 1900
notice inviting formal bids shall also be sent electronically, if 1901
available, by either facsimile or electronic mail and mailed to all 1902
construction trade journals specified in Section 22036. The notice 1903
shall be sent at least 15 calendar days before the date of opening 1904
the bids. In addition to notice required by this section, the public 1905
agency may give such other notice as it deems proper. 1906
1907
1908
1909
22038. (a) In its discretion, the public agency may reject any bids 1910
presented, if the agency, prior to rejecting all bids and declaring 1911
that the project can be more economically performed by employees of 1912
the agency, furnishes a written notice to an apparent low bidder. The 1913
notice shall inform the bidder of the agency's intention to reject 1914
the bid and shall be mailed at least two business days prior to the 1915
hearing at which the agency intends to reject the bid. If after the 1916
first invitation of bids all bids are rejected, after reevaluating 1917
its cost estimates of the project, the public agency shall have the 1918
option of either of the following: 1919
(1) Abandoning the project or readvertising for bids in the manner 1920
described by this article. 1921
(2) By passage of a resolution by a four-fifths vote of its 1922
governing body declaring that the project can be performed more 1923
economically by the employees of the public agency, may have the 1924
project done by force account without further complying with this 1925
article. 1926
(b) If a contract is awarded, it shall be awarded to the lowest 1927
responsible bidder. If two or more bids are the same and the lowest, 1928
the public agency may accept the one it chooses. 1929
(c) If no bids are received through the formal or informal 1930
procedure, the project may be performed by the employees of the 1931
public agency by force account, or negotiated contract without 1932
further complying with this article. 1933
1934
1935
1936
22039. The governing body of the public agency shall adopt plans, 1937
specifications, and working details for all public projects exceeding 1938
the amount specified in subdivision (c) of Section 22032. 1939
51
864426.1
22040. Any person may examine the plans, specifications, or working 1940
details, or all of these, adopted by the public agency for any 1941
project. 1942
1943
1944
22041. This article does not apply to the construction of any 1945
public building used for facilities of juvenile forestry camps or 1946
juvenile homes, ranches, or camps established under Article 15 1947
(commencing with Section 880) of Chapter 2 of Part 1 of Division 2 of 1948
the Welfare and Institutions Code, if a major portion of the 1949
construction work is to be performed by wards of the juvenile court 1950
assigned to those camps, ranches, or homes. 1951
1952
1953
1954
22042. The commission shall review the accounting procedures of any 1955
participating public agency where an interested party presents 1956
evidence that the work undertaken by the public agency falls within 1957
any of the following categories: 1958
(a) Is to be performed by a public agency after rejection of all 1959
bids, claiming work can be done less expensively by the public 1960
agency. 1961
(b) Exceeded the force account limits. 1962
(c) Has been improperly classified as maintenance. 1963
1964
1965
1966
22043. (a) In those circumstances set forth in subdivision (a) of 1967
Section 22042, a request for commission review shall be in writing, 1968
sent by certified or registered mail received by the commission 1969
postmarked not later than eight business days from the date the 1970
public agency has rejected all bids. 1971
(b) In those circumstances set forth in subdivision (b) or (c) of 1972
Section 22042, a request for commission review shall be by letter 1973
received by the commission not later than eight days from the date an 1974
interested party formally complains to the public agency. 1975
(c) The commission review shall commence immediately and conclude 1976
within the following number of days from the receipt of the request 1977
for commission review: 1978
(1) Forty-five days for a review that falls within subdivision (a) 1979
of Section 22042. 1980
(2) Ninety days for a review that falls within subdivision (b) or 1981
(c) of Section 22042. 1982
(d) During the review of a project that falls within subdivision 1983
(a) of Section 22042, the agency shall not proceed on the project 1984
until a final decision is received by the commission. 1985
1986
1987
1988
22044. The commission shall prepare written findings. Should the 1989
commission find that the provisions of this chapter or of the uniform 1990
cost accounting procedures provided for in this chapter were not 1991
complied with by the public agency, the following steps shall be 1992
implemented by that agency: 1993
(a) On those projects set forth in subdivision (a) of Section 1994
22042, the public agency has the option of either (1) abandoning the 1995
project, or (2) awarding the project to the lowest responsible 1996
bidder. 1997
52
864426.1
(b) On those projects set forth in subdivision (b) or (c) of 1998
Section 22042, the public agency shall present the commission's 1999
findings to its governing body and that governing body shall conduct 2000
a public hearing with regard to the commission's findings within 30 2001
days of receipt of the findings. 2002
2003
2004
22044.5. If the commission makes a finding, in accordance with 2005
Section 22043, on three separate occasions within a 10-year period, 2006
that the work undertaken by a public agency falls within any of the 2007
categories described in Section 22042, the commission shall notify 2008
the public agency of that finding in writing by certified mail and 2009
the public agency shall not use the bidding procedures provided by 2010
this article for five years from the date of the commission's 2011
findings. 2012
2013
2014
22045. (a) No later than January 1, 1985, the commission shall 2015
recommend, for adoption by the Controller, written procedures 2016
implementing the accounting procedures review provided for in this 2017
article. 2018
(b) The Controller shall, upon receipt of the commission's 2019
recommendation, review and evaluate the recommended procedures and 2020
either formally adopt or reject the recommended procedures within 90 2021
days of submission of the commission. 2022
2023
53
864426.1
APPENDIX B - FORMS 2024