city of santa clarita - csmfomedia.csmfo.org/archives/resources/3041.pdf · 2010. 7. 28. ·...

POLICY

City of Santa Clarita

TABLE OF CONTENTS SECTION DESCRIPTION PAGE

INTRODUCTION 1 SECTION 1.0 GENERAL PROVISIONS 2 SECTION 2.0 SOLICITATION PROCESSES 4 SECTION 3.0 SUPPLIES/SERVICES/EQUIPMENT 9 SECTION 4.0 PROFESSIONAL SERVICES 12 SECTION 5.0 PUBLIC PROJECTS 14 SECTION 6.0 PURCHASE ORDER CHANGES 17 SECTION 7.0 SUPPLIER RELATIONS 19 SECTION 8.0 POLICY EXCEPTIONS 22 SECTION 9.0 GRATUITIES 24 SECTION 10.0 SURPLUS/TRANSFER OF PROPERTY 25 SECTION 11.0 PURCHASING WITH SPECIAL FUNDS 26 SECTION 12.0 SUSTAINBLE PURCHASING 27 APPENDIX A PURCHASING STANDARDS OF CONDUCT APPENDIX B SUMMARY OF RESOLUTIONS AFFECTING

PROCUREMENT APPENDIX C RECYCLED PRODUCT PROCUREMENT

POLICY RESOLUTION 93-09

APPENDIX D PROTECTION OF TROPICAL TIMBER RESOLUTION 91-91

APPENDIX E STATE OF CALIFORNIA CO-OPERATIVE

PURCHASING RESOLUTION 89-95

APPENDIX F CITY COUNCIL AGENDA ACTION AUTHORIZING CO-OPERATIVE AND “PIGGY BACK” PURCHASING JULY 11, 1995

APPENDIX G SUPPORT OF SANTA CLARITA BUSINESS ORDINANCE 04-12 AND ORDINANCE 09-6 APPENDIX H ENVIRONMENTALLY PREFERABLE PURCHASING (EPP)

PROGRAM RESOLUTION 05-103

Purchasing Policy June 2009 Change 6 Page 1

INTRODUCTION Purchasing has prepared two documents to assist customers with procurement issues. The first is the Purchasing Policy Manual. The policy manual is designed for use by managers and supervisors directing or approving purchases. Derived from the municipal code, policy provides the processes to be used in making purchases to ensure compliance with the code. In the policy manual you will find a summary of the requirements of the code and the steps necessary to satisfy those requirements. The last document is a quick reference guide to the requirements for establishing a purchase order. This does not take the place of a good understanding of purchasing procedures but will help serve as a good starting point. In addition to these printed documents there are several references available online through Rnet. You are encouraged to review this site periodically for more detailed information.


SECTION 1.0

GENERAL PROVISIONS I. SCOPE

All provisions listed here apply to all purchases in general. As used in this policy, unless the purchase order or contract specifically indicates otherwise:

A. "City Clerk" shall mean the person responsible for the City's

procurement program;

B. "Purchasing Agent" shall mean the person responsible for the day to day operations of the purchasing function;

C. Any purchase order or contract contrary to the provisions of this policy

shall be null and void. II. PROCUREMENT AUTHORITY

A. All purchases of $2,000 and over, require a purchase order processed by Purchasing as stated in this policy, before an order is placed, unless otherwise authorized by City Council. A purchase order is not required for professional services up to $2,000; however, a written contract is required.

B. The City Manager may waive this policy as necessary by

recommendation to, and approval from, the City Council with the exception of those provisions applying to public works.

III. PROCUREMENT RESPONSIBILITY

It shall be the responsibility of the Purchasing Agent to:

A. Procure quality supplies and services at the least expense to the City in a timely fashion;

B. Ensure full and open competition as required in this policy and

discourage uniform or collusive bidding;

C. Examine each estimate and requisition and revise it as necessary to meet statutes and policy;

D. Prepare and maintain vendor files;

E. Delegate the responsibilities of the Purchasing Agent as deemed

necessary.


IV. GENERAL

A. All purchases must be authorized by the Director (or designee) of the

requesting department.

B. Splitting of purchases to circumvent thresholds is prohibited.

C. All listed thresholds include taxes, packing, shipping and handling.

D. Competition is required for all purchases of $2,000 or more.

E. Council approval is required for all expenditures over $50,000 except public projects where Council approval is required when the amount exceeds $125,000.


SECTION 2.0 SOLICITATION PROCESSES I. SCOPE

An appropriate competitive procurement process is required for all purchases of $2,000 and over. This section will cover the various solicitation processes and their use. Public project procurement is governed by State Codes and is discussed separately. Although not mandatory, Purchasing will make available sample templates for the various types of solicitations for use by staff.

II. SOLICITATIONS

A solicitation is the document by which the City’s procurement needs and the format for responding is conveyed to vendors. The intended result of a solicitation is a procurement contract (including purchase orders and written contracts) and the solicitation must contain a process for determining the elements of a contract. There are various types of solicitations to cover different procurement situations. The most commonly used City forms are: Request for Quote (RFQ), Invitation for Bid (IFB) and Request for Proposal (RFP). The type of solicitation does NOT determine the method of successful vendor selection. With the exception of public projects, quotes and bids may be awarded on a basis other than lowest cost and for other than true professional services, RFPs may be awarded based on the lowest cost. The method of successful vendor selection needs to be specified in the solicitation.

A. Request for Quote – The RFQ process is used for the procurement of

material, equipment and general services costing $20,000 or less where the needs of the City may be adequately defined.

B. Invitation for Bid – The IFB process is used for the procurement of

material, equipment and general services costing over $20,000 where the needs of the City may be adequately defined and for public projects over $30,000.

C. Request for Proposal – The RFP process is used for the procurement

of professional services or material, equipment and general services where the City seeks proposed solutions from the marketplace to achieve goals and objectives stated in the RFP.


III. REQUEST FOR QUOTE

A Request for Quote (RFQ) is a simplified solicitation that can be as short as one page or more than 100 pages. The format is dependent on the circumstances of the procurement and the needs of the user. A. The RFQ must be in writing as well as any response. The records

must be retained for 2 years, longer if federally funded. B. The response rate for RFQs varies, but is usually less than 25%.

RFQs should be sent to as many businesses as possible to ensure a minimum of three good quotes are received.

C. While not required, users are encouraged to allow sufficient time to

permit advertisement on the City’s website. D. Normally, 2-3 weeks should be allowed for a response to a quote.

Simple and emergency quotes may be done as quickly as vendors can respond.

E. If the RFQ is for services it must contain a sample of the contract

document. F. The successful contractor is selected in accordance with the Municipal

Code. IV. INVITATION FOR BID

An Invitation for Bid (IFB) is a more structured solicitation reflecting the dollar value and complexity of the procurement. A. The IFB will contain detailed instructions and the City’s terms and

conditions. B. Notices of the IFB should be sent to all businesses that have provided

information to the City as well as any known by the users to be interested in the opportunity.

C. IFBs must be advertised at least twice in the local newspaper as well

as posted on the City’s website. D. Normally, IFBs should be advertised at least 30 days before the

responses are due. Slightly shorter response timeframes may be permitted for simple bids for off-the-shelf commercial items. Slightly longer timeframes may be needed to support questions or pre-bid meetings/site visits.

E. The IFB and notice will state a time, date and place for submission of

sealed responses and will be opened and read in public.


F. If the IFB is for services it must contain a sample of the contract

document. G. The successful contractor is selected in accordance with the Municipal

Code. V. REQUEST FOR PROPOSAL

A Request for Proposal (RFP) solicitation is normally used for professional services or where detailed specifications are not available and the City seeks solutions in the form of proposals from experienced firms. RFP solicitations are very specific to the situation. As the template from Purchasing must serve a variety of purposes it is intended to be modified for each situation. A. The RFP will contain detailed instructions and the City’s terms and

conditions. Contact Purchasing for retention requirements. B. Notices of the RFP should be sent to all businesses that have provided

information to the City as well as any known by the users to be interested in the opportunity.

C. RFPs should be advertised at least twice in the local newspaper as

well as posted on the City’s website. D. Normally, RFPs should be advertised more than 30 days before the

responses are due. More complex RFPs and those expected to generate a large number of questions should be advertised 45 days prior to the date responses are due.

E. The RFP must contain a sample of the contract document. F. Users can and should tailor the Scope of Work section to match their

needs. Particular attention should be paid to the cost and evaluation portions.

The evaluation of RFP responses and selection of successful contractor will be in accordance with the procedures identified in the RFP. It is very important this process be clear and unbiased. The process should be carefully thought through and incorporated into the RFP. To facilitate the process a few general principles should be followed: A. The evaluation criteria should be listed in the order of their importance.

B. The weights for each criteria should be determined and entered onto

the evaluation score sheet form. The form should be prepared when the RFP is prepared, but NOT included with the RFP.

C. If pricing is requested, it should be requested as a separate,

detachable section. While pricing may be requested, it may NOT be


used as an evaluation criteria for architectural, landscape architectural, professional engineering, environmental, land surveying, and construction project management services. While pricing may not be considered in evaluating A&E services, a competitive process is still required by the state Government Code.

D. When conducting RFP evaluations, a single individual should conduct

reference checks and that score included on the score sheets. If pricing is included, the scoring for all other criteria should be completed before opening and including the pricing.

E. Contract negotiations should begin with the highest ranked firm.

Should an agreement not be reached, negotiations should be terminated with that firm and begin with the second ranked firm. The process should continue until an agreement is reached with a satisfactory firm.

VI. PUBLIC PROJECTS

The City’s public project solicitation process is governed by the State Public Contract Code (PCC). Additionally, the City has elected to become subject to the uniform construction cost accounting procedures. The procedures allow for an alternative bidding process. These alternative bidding procedures are found in PCC 22030-22050 and supplement the requirements of PCC 20100-20104.70 and PCC 20160-20189. The successful contractor will be selected in accordance with the Public Contract Code. Public project solicitations are also guided by other State Codes as well as Federal Codes when any Federal funding is involved. Due to the complexities involved, staff is encouraged to contact Purchasing about their specific project. A. The alternative bidding procedure provides thresholds for the public

project procurement process. For projects under $30,000 the procedure provides for the award of projects by Purchase Order other than by bidding. For staff this means that for projects between $2,000 and $30,000, the solicitation process may be by a request for quote. Projects over $30,000 must be bid by either the informal (projects from $30,000 to $125,000) or formal (projects over $125,000) solicitation. The PCC provides for simplified and shortened notification procedures for informal bids.

B. Request for Quote – The public project request for quote will follow the

normal City request for quote process with the exception of the format of and the award of the solicitation. The solicitation format will be modified to meet the needs of the using department and the public project. The contract will be awarded to the lowest responsible bidder and may be awarded by the City Manager or designee.


C. Invitation for Bid – Informal Public projects over $30,000 but less than $125,000 will follow the

City’s normal bid process with the changes permitted by the informal bid process cited in the Public Contract Code (PCC).

(1) The notice inviting bids must be sent to the trade journals or all

firms on Purchasing’s contractor list or both at least 10 days before the bids are due to the City. The notice is not required to be published in the newspaper.

(2) A bid bond in an amount equal to at least 10% of the amount of

the bid is required. (3) A payment bond in an amount equal to 100% of the contract

value is required for all public projects over $25,000. Performance bonds may also be required.

(4) The sealed bids will be opened and read in public.

(5) The successful bidder will be the lowest responsible bidder and the contract may be awarded by the City Manager or designee. Plans and specifications do not require the approval of the City Council.

D. Invitation for Bid – Formal Public projects over $125,000 will follow the City’s normal bid process

with the additional requirements of the Public Contract Code (PCC). (1) The notice inviting bids must be sent to the trade journals at

least 30 days before and to the local newspaper at least 14 days before the bids are due to the City.

(2) The plans, specifications and contract award must be approved

by the Council. (3) A bid bond in an amount equal to at least 10% of the amount of

the bid is required. (4) A payment bond in an amount equal to 100% of the contract

value is required. Performance bonds may also be required.

(5) The sealed bids will be opened and read in public. (6) The successful bidder will be the lowest responsible bidder and

the contract will be awarded by the City Council.


SECTION 3.0

SUPPLIES/SERVICES/EQUIPMENT I. SCOPE

This section, in conjunction with Section 1, provides the requirements for the procurement of all supplies, services (other than professional), and equipment.

II. DEFINITIONS

A. Supplies - Essential materials required for the effective operation of the City. Includes things such as, office supplies, tools and repair materials.

B. Services - A service vendor (other than professional) generally

provides maintenance and/or intangible goods, and does not typically require a license, certification or other professional criteria to perform the work. This includes services such as equipment maintenance, janitorial, printing, landscaping and refuse disposal.

C. Equipment - Essential hardware required for the effective operation of

the City. Includes things such as vehicles, fax machines, computers and copiers.

D. D.D.P – Delivery Duty Paid is a shipping term outlining who is

responsible for arranging shipping and the material while it is in transit. D.D.P. destination means the seller arranges shipping and is responsible for the material until it is delivered to the destination and is recommended on all purchases.

E. Piggyback - Piggyback is a descriptive term referring to an activity

where a third party, not part of the original contract, is allowed to place orders against the contract.

III. REQUIREMENTS

A. PURCHASES UNDER $2,000 (1) Coded invoice - determination of price reasonableness is

recommended. (2) Evidence of a Contract - (services only) Contract number or

copy of completed contract route sheet is acceptable. LA County is covered under a master agreement for most services.


B. PURCHASES FROM $2,000 TO $20,000

(1) Product/service description/specifications (2) A minimum of three (3) written quotes (3) Evidence of a Contract - (services only) Contract number or


(4) Purchase order

C. PURCHASES OVER $20,000

(1) Product/service specifications (2) Formal bid process (See Purchasing) (3) Evidence of a Contract - (services only) Contract number or


(4) City Council approval over $50,000 (Cite date of Council meeting and agenda item number)

(5) Purchase order

D. “SHOP LOCAL” INITIATIVE

(1) All bids and quotes, not using a multi-criteria award designation are now required to be reviewed on a local preference basis. Local refers to any business having a working address within the City limits. For any bid that would have been awarded to a non- local vendor, where a local vendor has come within 10% of the non-local bid, you must now contact the local vendor and offer them a chance to meet the low bid. If the closest local vendor (within 10%) is not able to meet the bid, the next lowest, local bid, within the 10% threshold will be contacted, and so on, and so on. This will continue until a local bidder has accepted the chance to meet the low bid or, all local bids within the 10% threshold have been contacted and none could meet the low bid. Then, and only then, will the non-local bidder be awarded the bid.

IV. GENERAL

A. All purchases of supplies/services/equipment over $50,000 require

Council approval, including cumulative and cooperative "piggyback" purchases.

B. All purchases that are delivered must be Delivered Duty Paid to the

City of Santa Clarita receiving dock.


C. A Purchase Order serves as a City contract for supplies and

equipment. A formal service contract, including all applicable insurance and bonds, is required for all services. The contract number or copy of completed contract route sheet is acceptable evidence of a contract. LA County is covered under a master agreement for most services.

D. For purchase orders of $50,000 or less, including those awarded by a

formal bid process; the City Manager (or designee) may approve the purchase order. All purchase orders over $50,000 must have Council approval evidenced by the approved agenda report or the date of the council meeting and agenda item number.

E. If you have a requisition that includes Section 3 items (supplies,

services and equipment) and Section 4 items (professional services), it will be processed as a Section 3 requisition unless directed otherwise by the City Manager (or designee).


SECTION 4.0

PROFESSIONAL SERVICES I. SCOPE

This section, in conjunction with Sections 1 and 2, provides the requirements for the procurement of professional services.

II. DEFINITIONS

Professional service - A professional service contractor provides expert or professional advice and generally requires special licensing, certification, education or professional designation to perform such services. Professional services consist of the following; accounting, architectural, auditing, consulting, engineering, environmental, legal, surveying, or training.

III. REQUIREMENTS

A. PURCHASES UNDER $2,000

(1) Coded invoice (2) Evidence of a Contract –Contract number or copy of completed

contract route sheet is acceptable. LA County is covered under a master agreement for most services.

B. PURCHASES FROM $2,001 TO $50,000

(1) Evidence of a Contract -Contract number or copy of completed


(2) Purchase Order

C. PURCHASES OVER $50,000

(1) Evidence of a Contract - Contract number or copy of completed contract route sheet is acceptable. LA County is covered under a master agreement for most services.

(2) City Council approval (note date of meeting and agenda item number)

(3) Purchase Order IV. GENERAL

A. Formal bids are not required on professional services as they must be selected based on qualifications first, cost second. However, a selection process is required and quotations or proposals are recommended from a minimum of three qualified individuals or firms to ensure adequate comparison and fair pricing occur. Should negotiations prove unsuccessful with the primary professional service provider, written notice must be given to formally terminate


negotiations and negotiations shall commence with the second most-qualified firm.

B. A copy of the contract or indemnity clauses must be included in all

solicitations.

C. A contract or letter of agreement specifying all necessary insurance and bonding requirements is required for services under this section. The contract number or copy of completed contract route sheet is acceptable. LA County is covered under a master agreement for most services.


SECTION 5.0

PUBLIC PROJECTS I. SCOPE

This section, in conjunction with Sections 1 and 2, provides the requirements for procurement associated with all public projects and is derived from the State Public Contract Code.

II. DEFINITIONS

A. A Public Project (also known as Public Works Projects and includes Capital Improvement Projects) - is defined in the Public Contract Code as follows:

“Public project” means any of the following:

(1) Construction, reconstruction, erection, alteration, renovation,

improvement, demolition and repair work involving any publicly owned, leased or operated facility;

(2) Painting or repainting of any publicly owned, leased or operated

facility;

(3) In the case of a publicly owned utility system, “public project” shall include only the construction, erection, improvement, or repair of dams, reservoirs, and electrical transmission lines of 230,000 volts and higher.

(4) “Public project” does not include maintenance work. However,

maintenance work IS still covered under prevailing wage.

B. Maintenance work - For the purpose of public projects, “maintenance work” includes all of the following:

(1) Routine, recurring, and usual work for the preservation or

protection of any publicly owned or operated facility for its intended purposes;

(2) Minor repainting;

(3) Resurfacing of streets and highways at less than one inch;

(4) Landscape maintenance, including mowing, watering, trimming,

pruning, planting, replacement of plants, and service of irrigation and sprinkler systems;

(5) Work performed to keep, operate, and maintain publicly owned

water, power, or waste disposal systems, including, but not


limited to, dams reservoirs, and electrical transmission lines of 230,000 volts and higher.

C. Facility - For the purposes of a public project, “facility” means any

plant, building, structure, ground facility, utility system subject to the limitation found in paragraph 3 of the public project definition previously stated, real property, streets, highways, or other public works improvement.

III. REQUIREMENTS

A. FOR PROFESSIONAL SERVICES ASSOCIATED WITH PUBLIC PROJECTS REFER TO SECTION 4.0

B. PROJECTS UNDER $2,000

(1) Coded invoice (2) Evidence of a Contract - Contract number or copy of completed


C. PROJECTS FROM $2,001 TO $30,000

(1) Product/service descriptions/specifications (2) A minimum of three (3) written quotes (3) Evidence of a Contract - Contract number or copy of completed


(4) Purchase Order

D. PROJECTS FROM $30,000 TO $125,000

(1) Product/service descriptions/specifications (2) Informal bid process (See Section 2.VI ) (3) Evidence of a Contract - Contract number or copy of completed


(4) Purchase Order

E. PROJECTS OVER $125,000

(1) Product/service descriptions/specifications (2) Formal bid process (See Section 2.VI ) (3) Evidence of a Contract - Contract number or copy of completed


(4) City Council approval of plans and specifications as well as the award of contract and expenditure (Cite date of Council meeting and agenda item number)

(5) Purchase Order


IV. GENERAL

A. Project specifications and a contract identifying all insurance and bonding requirements are required for work contracted under this section. The contract number, copy of the contract, completed route sheet or the Risk Manager’s authorization by email or memo satisfies this requirement.

B. The project manager is responsible for ensuring all requirements of the

Uniform Public Construction Cost Accounting Commission Act are followed.


SECTION 6.0

PURCHASE ORDER CHANGES I. SCOPE

This section provides guidelines for changing established purchase orders. II. DEFINITIONS

A. Change Order - A request to change any entry on an approved purchase order.

III. GUIDELINES

A. Generally, any change to a purchase order not affecting any money values may be made by any person in the department trained to do change orders to purchase orders. See Purchasing for more details.

B. Changes resulting in a reduction in the dollar value of a purchase order

may be made by any person in the department trained to do change orders to purchase orders. See Purchasing for more details.

C. Changes that result in a purchase order exceeding a quote, bid or City

Council approval threshold will be required to comply with the requirements of the new threshold. City Council approval will be required to approve changes exceeding the threshold for City Council approval.

D. For change orders to purchase orders originally requiring Council

approval, the following guidelines apply:

(1) Purchase orders may be established for the Council-approved contract amount, plus any Council-approved contingency amount or $125,000, whichever is less;

(2) A change to a purchase order that results in a purchase order

total dollar amount less than the Council-approved contract amount plus any Council- approved contingency can be approved by the department head or designee subject to number three below;

(3) Cumulative changes greater than $125,000 to a contract that

result in a purchase order total dollar amount less than the Council-approved contract amount plus any Council-approved contingency must be approved by the City Manager and may require additional Council approval if deemed necessary by the City Manager;


(4) A change to a purchase order that results in a purchase order total dollar amount greater than the contract amount plus any Council-approved contingency requires Council approval;

(5) The maximum contingency is 15% unless otherwise approved

by the City Manager;

(6) The change order process and contingency amounts for all Council-approved items must be written into the recommendation in the agenda report to effect change orders stated in this policy without returning to Council for approval. Five specific things should be addressed in the recommendation paragraph answering who, how long, how much, contingency amount, and contract/change order signature authority. An example paragraph is as follows: Award contract to XYZ company for $400,000, $100,000 per year for four years, and authorize a 15% contingency expenditure should any change orders to the contract become necessary. Authorize the City Manager or designee to approve all change orders relating to this contract. See Purchasing for additional wording for renewals.

E. For changes to purchase orders not originally requiring Council

approval the procedures are as follows:

(1) A change to a purchase order that results in a purchase order total dollar amount less than the thresholds for Council approval, or, for supplies/service/equipment, a purchase order total under $20,000 may be approved by the department head or designee;

(2) A change to a purchase order for supplies/service/equipment

that results in a purchase order total dollar amount from $20,000 to $50,000 must be approved by the City Manager or designee;

(3) A change to a purchase order that results in a purchase order

total dollar amount greater than the threshold limits requiring Council approval must be approved by Council.


SECTION 7.0

SUPPLIER RELATIONS I. SCOPE

This section provides guidelines for employees participating in transactions on behalf of the City. See also the Purchasing Standards of Conduct Policy, Appendix A.

II. ANTI-TRUST LAWS

Personnel performing a purchasing function shall not demand or negotiate a special pricing structure from a supplier that the supplier is not willing to offer to other customers under similar conditions and terms.

Violations of the antitrust laws in any of the City's operations may have far-reaching effects, causing substantial injury to the City in lengthy and expensive litigation, significant damage liability and injunctions or orders affecting property and/or business. An employee who participates in a violation may be individually and personally subject to fine or imprisonment.

III. CONFLICT OF INTEREST

Employees engaged in the purchasing function are expected to be free of interests or relationships which are actually or potentially malicious or detrimental to the best interests of the City, and shall not engage or participate in any commercial transaction involving the City in which they have a significant undisclosed financial interest.

Any employee engaged in purchasing who has assumed, or is about to assume, a financial or other outside business relationship that might involve a conflict of interest, must immediately inform the supervisor of the circumstances involved. This information is to be reviewed at an appropriate level for decision on whether a conflict of interest is present and, if so, what course of action is to be taken. Therefore, a conflict of interest exists where an employee:

A. has an outside interest that materially encroaches on time or attention

which should be devoted to the affairs of the City;

B. has a direct or indirect interest in or relationship with a non-employee that is inherently unethical or that might be implied or construed to be unethical, or make possible personal gain due to the employee's ability to influence dealings; render the employee partial toward the outsider for personal reasons or otherwise inhibit the impartiality of the employee's business judgment; place the employee or the City in an ambiguous, embarrassing or ethically questionable position; or reflect on the integrity of the City;


C. takes personal advantage of an opportunity that properly belongs to

the City. IV. SUPPLIER SAMPLES

When suppliers offer samples for evaluation, they will be accepted only under the following conditions:

A. The product is one that is of a type presently in use or is of potential

use to the City. Samples of goods not likely to be purchased must not be accepted;

B. The quantity or size of the sample is relatively small and of low value.

The object of a sample is the examination of its fitness for our service - not to provide an inventory of the material;

C. Any chemical offered as supplier samples shall not be accepted unless

accompanied by an OSHA Material Safety Data Sheet; (must be kept on file with individual department accepting sample and a copy submitted to Technology Services for inclusion in the Fire Safety Manual);

D. If supplier samples are accepted, they shall be promptly conveyed to

the appropriate department for testing. Personal use of samples is prohibited. The supplier is entitled to a prompt evaluation of the given sample. In the event a sample is requested from a supplier to evaluate its applicability to a particular situation, such samples shall be purchased.

V. SUPPLIER TRANSACTIONS

It is our policy to maintain and practice the highest possible standards of business ethics, professional courtesy and competence in all of our dealings. At all times, applicable laws must be scrupulously observed. In this regard, the following should be observed when dealing with suppliers and their representatives:

A. Accord prompt and courteous reception as well as fair and equal

treatment to all suppliers and their representatives;

B. Ensure vendors are not precluded from providing price and specification quotations;

C. Ensure the confidentiality of all specifications and price quotations or

bids made by suppliers until all quotations or bids are received and the contract is awarded;

D. Explain as clearly as possible to suppliers the reason for rejection of

their quotations upon request;


E. Remain scrupulously free from obligations to any Contractor; F. Ensure all vendors receive equal treatment and information. If one

vendor receives information as a result of questions asked then all vendors must be given the same information unless such information is already contained in the solicitation. Any changes to or extensions of a solicitation should be made prior to the due date for the responses. Once the due date has arrived the process must be completed. Re-bidding should be restricted to substantive changes in the specifications.

VI. SUPPLIER PERFORMANCE

Most suppliers take great care to ensure their products and service meet our high standards. On occasion a product or service may not meet our expectations for one reason or another. We need to ensure we receive the quality we contract for. To this end, Purchasing has some basic steps to take if you encounter such a situation.

A. The first step is to provide feedback to the company. This is a good

idea whether there have been problems or not.

B. For minor mistakes you should notify the supplier as soon as possible. Mistakes happen on occasion and most companies will correct the problem rapidly and at no cost if notified without delay.

C. For more serious situations you will need to provide the notification by

letter and in detail. The detail should include a request for remedy if appropriate.

D. Always let Purchasing know as soon as you have any problems. If

Purchasing assisted in the purchase, we used our forms which cover many common issues. If not, we can help you work through any problems with your vendor.

Always provide copies of any documentation to Purchasing. The City has no debarment policy (this means you can’t prevent a company form responding to a solicitation) but our awards go to the lowest responsive, responsible contractor. Past performance, if well documented, can be included in the determination of whether a company is responsible. Don’t hesitate to contact Purchasing if you have any questions.


SECTION 8.0

POLICY EXCEPTIONS I. SCOPE

This section provides information on exceptions to this policy such as sole source selection and emergency purchases.

II. DEFINITION

A. Sole source – The services/products provided by the supplier are proprietary or unique in nature, such as patented or copyrighted material or an artist or performer’s work;

B. Single Source -

(1) The supplier is the only source known to the City after (underlined for emphasis) a reasonable search for other suppliers has been conducted;

- or - (2) The current work requirements are an extension of the original

work and substantially rely on the experience gained during the original work.

C. Emergency - A situation that threatens life or property. Time constraint

is NOT an adequate justification for an emergency purchase. III. GENERAL

A. No purchase orders are required for employee benefit payments.

B. No quoting or bidding is required for purchases of products or services from a validated sole source.

C. Grants made by the City are not considered purchases and are not

subject to purchasing policy. An encumbrance may be established if desired. When the grant is disbursed, care must be taken to reference the encumbrance number (same as a purchase order number) to ensure the funds are disencumbered.

D. The formal bid process is waived for the purchase of information

technology goods or services which may be acquired through the quote procedures described in Sections 3.12.230 through 3.12.260 of the Municipal Code.

E. Purchases for materials, equipment or services may be exempt from

the requirement for competition by the City Manager in the event of an emergency. Council will ratify any such procurement that would normally have required Council approval at the next Council meeting.


F. All policy exceptions and justifications must be noted in the comments or text field of the purchase requisition.

G. For non-public project purchases, any exceptions other than those

above require Council approval.

H. For public projects, the only allowed exception is in cases of emergency.


SECTION 9.0

GRATUITIES I. SCOPE

This section provides guidelines on the acceptance of gratuities.

II. DEFINITION

Gratuity - a payment, loan, subscription, advanced deposit of money, service or anything of more than nominal value, present or promised, without expectation of substantial, equal, or greater consideration in return.

III. GENERAL

A. Employees may accept items such as coffee cups, pencil holders, pens etc. in the instance where:

(1) the item is valued at less than $25;

- and/or - (2) the name of the offering firm is clearly displayed on the item for

purpose of advertisement and the item is not displayed in a conspicuous manner;

(3) any edible item such as fruit or candy may be accepted but

must be consumed by the department accepting the item.

B. Any employee accepting gratuities over the amount specified in paragraph III.A.1 will be attended to in accordance with established personnel policies.


SECTION 10.0

SURPLUS/TRANSFER OF PROPERTY

I. SCOPE

This section provides the requirements for the transfer or sale of City-owned property.

II. DEFINITION

A. City-owned property - any supplies, materials or equipment purchased by or donated to the City for City use.

B. Surplus - no longer in use for the purpose for which it was originally

purchased. III. GENERAL

A. The Administrative Services Director, or Designee, may, by direct sales or otherwise, sell or dispose of any property belonging to the City and approved by the City Manager for such disposal.

B. No member of the Council and no employee shall be permitted to

purchase any assets or supplies from the City except those items disposed of in an open public auction and only through participation in said auction.

C. The City Council may authorize transfer of equipment, supplies, and/or

materials for non-monetary consideration to public agencies, educational institutions or for other such uses deemed to be in the public’s interest.

D. The City Manager, or designee, shall have the authority to dispose of

surplus or equipment by donation to local schools or non-profit organizations when the estimated value of such surplus is less than one thousand dollars ($1,000)


SECTION 11.0

PURCHASING WITH SPECIAL FUNDS I. SCOPE

This section provides the requirements for the use of special funds for purchasing supplies, equipment and services.

II. DEFINITION

A. Special funds - proceeds of specific revenue sources that are restricted to expenditure for specified purposes.

B. Granting agency - The state, federal or other agency granting funds to

the City for expenditure. III. GENERAL

Special funds may come with restrictions on the expenditure of those funds. For example, some funds may only be used to support a specific program and funds from federal sources generally require the purchasing process to follow federal procurement guidelines as well as those of the granting agency. These requirements may be complex and time consuming and should be considered when planning expenditures. The restrictions supplement and take precedence over City procedures. It is the responsibility of the group making the purchase with special funds to ensure compliance with any requirements of the granting agency. These conditions on expenditure are usually included with the grant but may also be found in legislation or regulations associated with the source of the funds. The City group receiving such funds will ensure proper distribution of all information regarding the use of special funds received. Purchasing will assist in the determination of such regulations and their application at the request of the using department.


SECTION 12.0

SUSTAINABLE PURCHASING I. SCOPE

This section provides the requirements in support of sustainable purchasing of supplies, equipment and services. The City has adopted an Environmentally Preferable Purchasing (EPP) Program included as Appendix H. This program provides general guidance towards improving the sustainable purchasing process. Additionally, the State Public Contract Code outlines some specific requirements for cities to follow.

II. DEFINITION

A. Recycled products – For the purpose of compliance with the State Public Contract Code recycled products means printing and writing paper, paper products, mulch-compost and related products, glass products, lubricating oils, plastic products, paint, antifreeze, tires, tire derived products and metal products.

B. Businesses - includes bidders, contractors, and other interested parties

that provide services to, or sell products to, the state. C. Postconsumer material - means a finished material that would have

been disposed of as a solid waste, having completed its life cycle as a consumer item, and does not include manufacturing wastes.

III. GENERAL

State Public Contract Code Section 22150 requires cities to purchase recycled products if fitness and quality are equal and the recycled items are available at the same or lesser total cost as non-recycled items. State Public Contract Code Section 22152 requires cities to require businesses to certify in writing the minimum, if not exact, percentage of postconsumer materials in the products, materials, goods, or supplies, offered or sold. All printing contracts shall require recycled content paper. Appendix H provides additional information to support the Council’s goal of supporting sustainability.

IV. REQUIRED ACTIONS

A. All City purchases will encourage businesses to identify potential recycled product candidates with postconsumer waste. They may be offered as alternatives to or equivalents for any products requested.


B. All City purchases will require responding businesses to certify the postconsumer content of the products being offered even if that content is zero.

C. All City contracts resulting in printed materials will require the printing

to be on recycled paper.

Purchasing Policy June 2009 Change 6 Appendix A Page 1

APPENDIX A

PURCHASING STANDARDS OF CONDUCT

CITY OF SANTA CLARITA Standards of Conduct Background for Purchasing Staff

In recognition of the special trust inherent in Purchasing Staff positions charged with guiding the expenditure of public funds, the highest standards of conduct are considered essential. These expectations are reflected in the Standards of Conduct established by this policy and are applicable to all city employees assigned to Purchasing under the supervision of the Purchasing Agent. The California Code of Regulations and State Government Code provide basic guidance regarding financial conflicts of interest. The intent of this policy is to supplement the financial conflict of interest regulations with broader standards of conduct and cover procurements involving federal funds. POLICY All conflict of interest regulations as stated in the California Code of Regulations and Government Code are considered an integral part of this policy. No part of this policy will alter or supersede any portion of the City or State guidance on conflict of interest. All requirements of this policy are additive to the City and State guidance. In order to prevent the perception of favoritism, all administrative processes will be followed diligently, consistently and openly. One of the primary responsibilities of public servants is the protection of public confidence and trust in the integrity of governmental processes. Any conduct which may detract from this trust is prohibited. The mere “appearance” of a conflict of interest may result in the same damage to public trust in government as actual wrongdoing. Action or inaction that results in the “appearance” of conduct prohibited by this policy is also prohibited. DEFINITIONS Financial interest – Financial interest will be the same as defined in the Statement of Economic Interest Form 700. Immediate family member – Parents, siblings, spouse or partner, parents and siblings of spouse or partner and children. Organizational conflict of interest – Organizational conflicts may result in bias or unfair competitive advantage. An organizational conflict of interest occurs where - because of other activities, financial interests, relationships, or contracts – an employee or contractor is unable, or potentially unable, to render impartial assistance or advice to the City; the employee or contractor’s objectivity in performing work is or might be impaired; or a contractor has an unfair competitive advantage. 1 2 1 - Generally, an organizational conflict arises because a person or entity has or appears to have loyalties to, or a

financial interest in, two organizations that may have competing or differing interests from each other -- one of

them being the grantee. For example, an organizational conflict would arise if an employee or a consultant

serves as a member of a public or quasi-public body with regulatory authority over a project or has a stake in its

outcome. This arises most often where architects sit on design review or zoning boards.


Personal conflict of interest - A personal conflict of interest arises when an employee or immediate family member has a financial interest in a firm selected, or competing, for a contract. A personal conflict of interest also arises where any employee solicits or accepts gifts, gratuities, favors, or anything of monetary value from a firm under contract or potentially seeking a contract. In addition, a personal conflict of interest arises where any such person uses his position, or non-public information gained during his work for the City, for personal gain, including gain inuring to an immediate family member. Personal gain – includes gain inuring to immediate family members unless otherwise stated. Purchasing staff – The Purchasing Agent and any employee under the supervision of the Purchasing Agent. STANDARDS OF CONDUCT Purchasing staff will:

A. Avoid the intent and appearance of unethical or compromising practice in relationships, actions, and communications.

B. Avoid any personal business or professional activity that would create a conflict between personal interests and the interests of the employer.

C. Immediately report any potential conflicts of interest to their supervisor. D. Avoid soliciting or accepting money, loans, credits, or preferential discounts, and

the acceptance of gifts, entertainment, favors, or services from present or potential suppliers that might influence, or appear to influence, procurement recommendations or decisions.

E. Refrain from the use of City property or resources for personal advantage. F. Avoid inequitable treatment of vendors to include, favoritism, unnecessary use of

brand names and organizational conflicts. G. Handle confidential or proprietary information with due care and proper

consideration of ethical and legal ramifications and governmental regulations.

1. PERCEIVED IMPROPRIETY

Purchasing staff will avoid the intent and appearance of unethical or compromising conduct in relationships, actions, and communications. The consequences of a perceived impropriety can be the same as consequences of an actual impropriety. Therefore, it is essential that any activity or involvement between Purchasing staff and active or potential suppliers which in any way diminishes, or even appears to diminish, open and fair treatment of suppliers shall be strictly avoided. Those who do not understand the circumstances will judge based on appearances. Purchasing staff must consider this and act accordingly. The following are recommended guidelines in dealing with perception:

• Situations may occur in which, through unanticipated circumstances, a business relationship transpires with a personal friend. The perception (as well as the

19 - Federal transit law requires grantees to award contracts through a process of full and open competition.

Organizational conflicts of interest that give any party an unfair competitive advantage impede full and open

competition, and thus are considered “restrictive of competition” under Paragraph 8(a)(5) of FTA Circular

4220.1E.


potential) of a conflict of interest should be discussed with management, and a reassignment of procurement responsibility should be considered.

• Business meeting locations should be carefully chosen. Environments other than the office may be perceived as inappropriate by the business community or by co-workers.

• Displays of personal preference may give an impression of impropriety and should be avoided. Conversation that delves excessively into personal affairs should be avoided.

• Positive action should be taken by management to alleviate suspicion of impropriety. This does not mean you or your immediate family can’t have friends in the business community or even ones that do business with the City. What it does mean is that when they become involved with a purchase or contract, you must notify your supervisor.

2. CONFLICT OF INTEREST

Avoid any personal business or professional activity that would create a conflict between personal interests and the interests of the employer. Purchasing Staff must not use their positions in any way to induce another person to provide any benefit to themselves, or persons with whom they have family, business, personal, or financial relationships. Even though a conflict may not technically exist, staff must avoid the appearance of such a conflict. Whenever a potential conflict of interest arises, the employee should notify the appropriate supervisor for guidance or resolution. The following are recommended guidelines to avoid conflicts of interest: Conduct to be Avoided

• Engaging in outside business, or employment by an outside organization, which may encroach upon the supply professional’s primary responsibility of loyalty to the goals of the City.

• Engaging in improper personal business with, or employment by, an organization which has or may conduct business with the City. Examples include but are not limited to: a) Owning or leasing any property with knowledge that the employer has an

active or potential interest therein. b) Having a direct or indirect interest in or relationship with a non-employee that

is inherently unethical or that might be implied or construed to be unethical, or make possible personal gain due to the employee's ability to influence dealings; render the employee partial toward the outsider for personal reasons or otherwise inhibit the impartiality of the employee's business judgment; place the employee or the City in an ambiguous, embarrassing or ethically questionable position; or reflect on the integrity of the City.

c) Taking personal advantage of an opportunity that properly belongs to the City or using City property or resources for personal gain.

d) Using the City’s name (unless authorized) to lend weight or prestige to sponsorship of a political party or cause, or endorsing the product or service of another organization.

• Taking personal advantage of an opportunity that properly belongs to the City or using City property or resources for personal gain.

• Willfully or unlawfully concealing, removing, mutilating, falsifying or destroying any government document or record, nor will he or she make any false or fictitious statements in connection with any official matter, document or record.


Personal Investment Ownership of stock in a supplier or potential supplier of goods or services should be reported to the supervisor for review and guidance to avoid the potential for impropriety. Interests by members of the professional’s immediate family are considered to be of the same significance as direct ownership. Outside Activities Purchasing Staff must not use their position with their employer when participating in outside educational, professional, political, philanthropic, social, or recreational activities, which might be detrimental to their employer’s business or reputation.

3. ISSUES OF INFLUENCE

Avoid soliciting or accepting money, loans, credits, or preferential discounts, and the acceptance of gifts, entertainment, favors, or services from present or potential suppliers that might influence, or appear to influence, supply management decisions. Those in a position to influence the supply process must be dedicated to the best interests of the City. It is essential, for all in a position to influence a purchasing decision, to avoid any activity which may diminish, or even appear to diminish, the objectivity of the decision making process. In some circumstances, items which could be considered an issue of influence may be a bona fide business activity. In such cases, extreme care should be taken to evaluate the intent and the perception of acceptance of such an offer to ensure:

• It is legal. • It is in the best interests of the City. • It will not influence the purchasing decision. • It will not be perceived by peers or others to be unethical.

Sources of influence include:

• Management Policies • Gifts, Gratuities, and Entertainment • Product Samples • Business Meals • Personal Relationships • Political Considerations • Advertising • Specifications and Standards

The following are recommended guidelines when dealing with issues of influence: Gifts, Gratuities, and Entertainment Gifts, gratuities, and entertainment include material goods, services, or activities offered with the intent of, or providing the potential for, influencing a buying decision. As such, these may be offered to a supply professional or to other persons involved in the procurement process (or members of their immediate families). They may be offered in various forms.


• Extreme caution must be used in evaluating the acceptance of gifts, gratuities, or entertainment, even if of nominal value, and the frequency of such actions (the collective impact) to ensure that one is abiding by the letter and the spirit of these guidelines.

• Soliciting gifts, gratuities, or entertainment in any form for yourself, other staff or the City is unacceptable.

• Avoid accepting monies, credits, and prejudicial discounts. • Comply with the nominal value established by the City Manager memo to address

supplier offerings of nominal value as a gesture of goodwill, or for public relations purposes.

• Refuse gifts exceeding nominal value, and return them with a polite explanation, or if perishable, either return the gifts or donate them to a local charity in the name of the supplier.

• Seek direction of management if concerned that a business relationship may be impaired by refusal of a gift, gratuity, or entertainment.

Business Meals Occasionally, during the course of business, it may be appropriate to conduct business during meals.

• Such meals shall be for a specific business purpose. • Frequent meals with the same supplier should be avoided. • Purchasing Staff must pay for their share of the meal expenses.

Personal Relationships Personal relationships are an inherent aspect of supply management. Purchasing staff interact extensively with suppliers’ representatives. Individuals in many other functional areas in both the buying and supplying organizations also interact extensively with each other. The development of personal relationships from such interactions is both expected and desirable as it leads to relationships based on understanding and trust. It must also be recognized that the purchasing decision must not be influenced by anything other than what is in the best interest of the organization, and that personal relationships that develop beyond what is necessary to ensure understanding and trust may be inappropriate. It is important, therefore, for staff to closely monitor the nature of relationships with suppliers’ representatives to ensure that personal friendships do not develop that would result in decisions not in the organization’s best interest. Political Considerations All organizations are subject to internal and external forces and pressures. Internal forces and pressures result from an organization’s culture. External forces and pressures consist of economic conditions, laws, regulations, public opinion, special interest groups, and political entities. The negative influence of internal and external forces and pressures on supply management can be minimized when the organization adopts practices based on ethical principles and standards. Advertising Care should be exercised when accepting promotional items or participating in activities which tend to promote one supplier over another, or could be perceived as favoritism for a supplier by staff. Purchasing Staff will be sensitive to the appearance of numerous promotional items when meeting with representatives of other suppliers.


Specifications and Standards Purchasing Staff must ensure that specifications and standards are objectively written in a manner that encourages competition when appropriate, excludes unnecessary restrictive requirements, and appropriately defines quality.

4. CONFIDENTIAL AND PROPRIETARY INFORMATION

Handle confidential or proprietary information with due care and proper consideration of ethical and legal ramifications and governmental regulations. Companies must appropriately mark as confidential only that information meeting the criteria. Proprietary and confidential information requires protection to the extent permitted by the state’s Public Records Act. Such information may or may not be upheld by patent, copyright, or non-disclosure agreement. Proprietary and confidential information should be released to other staff only as necessary in the performance of their duties. It is the responsibility of the individual sharing confidential or proprietary information to ensure that the recipient understands his or her obligation to protect such information. Examples of information which may be considered confidential or proprietary include:

• Pricing • Bid or quotation information • Cost sheets • Formulas and/or process information • Design information • Organizational plans, goals, and strategies • Profit information • Asset information • Wage and salary scales • Personal information about employees, officers, and directors • Supply sources or supplier information • Computer software programs

Requests for confidential information will be referred to the City Clerk as a Public Records request. Such requests for confidential information will normally be reviewed by the City Attorney.

5. SUPPLIER RELATIONSHIPS

Fairness and impartiality should be extended to all legitimate business concerns. While it may be desirable to build long-term relationships with selected suppliers, such relationships should not eliminate opportunities for new suppliers or deter the potential of establishing similar working relationships with other suppliers.

6. RECIPROCITY

Avoid improper reciprocal agreements. If Purchasing Staff influences a supplier to be a customer, the professional or the organization is engaging in a practice known as reciprocity. These purchasing actions are


illegal if they tend to restrict competition or trade or if they are coerced, since such acts may be construed as "restraint of trade" in violation of Sections 1 and 2 of the Sherman Act. Purchasing Staff must be able to recognize reciprocity and its ethical and legal implications. Reciprocity is both a legal and an ethical issue that may result in legal sanctions against the City, its management, and/or its procurement staff. The following are recommended guidelines in dealing with reciprocity:

• Procurement strategy must include a positive effort to oppose any corporate or organizational commitment to, or pursuit of, any form of improper reciprocity.

• Purchasing staff should become sufficiently knowledgeable of the provisions in antitrust laws to recognize a potential legal problem and to know when to seek legal counsel.

• If a supply management professional believes the potential for improper reciprocity exists, or is being encouraged by marketing or management to engage in reciprocity, legal counsel should be sought.

INFRACTIONS Failure to comply with the standards of conduct may result in administrative action in accordance with the City’s Human Resource policies and procedures.

Purchasing Policy June 2009 Change 6 Appendix B Page 1

APPENDIX B

SUMMARY OF RESOLUTIONS AFFECTING PROCUREMENT I. Council RESOLUTION 93-09, RECYCLED PRODUCT PROCUREMENT

A. BACKGROUND

As businesses and communities grow, the ability of landfills to absorb the refuse is diminished and the hazard to the environment increases. The use of recycled items removes material from the refuse chain, extending the life of landfills. By fostering markets for recycled materials, the City serves a leadership role in promoting similar procurement practices within all City departments, private businesses and the general public. Appendix C further clarifies some of the terms used below.

B. PROCEDURES

1. Comply with City Council Resolution 93-09.

2. Recycled products are purchased in preference, highest

percentage of post-consumer recovered material followed by highest percentage of pre-consumer recovered material.

3. A 10% price preference may be given to recycled, reusable or

products designated to be recycled when offered as alternatives to non-recyclable products. The preference shall be based on the lowest bid or price quoted by the supplier offering recycled products.

4. Equipment acquired by the City shall, whenever practical, be

compatible with the use of recycled content products.

5. Product specifications and performance standards shall not require virgin material nor exclude recycled-content products indiscriminately.

6. To the extent possible, City staff shall identify to purchasing, on

the purchase requisition, products available with recycled content and vendors from whom such products are available.

7. The Purchasing Agent may specify a minimum "recycled-

content" standard in bid solicitations.

8. City purchased and printed paper shall be labeled with "Printed on recycled paper."

9. City requested documents, produced by contractors and

grantees shall be printed on post-consumer recycled paper.


II. Council RESOLUTION 91-91, PROTECTION OF TROPICAL TIMBER

A. BACKGROUND

The importation and use of tropical timber promotes the loss of tropical rain forests. This loss has been shown to not only destroy species and cultures indigenous to the rain forest, but to also hasten the deterioration of the global environment. As a responsible member of the global community, the City is fundamentally opposed to actions harmful to tropical rain forests. To set the community standard, the City has prohibited the purchase of any item or product which has originated in part or in whole from any tropical hardwood. See Appendix D for additional information.

B. PROCEDURES


2. Require wood vendors to note on each invoice for wood

products the identity of the manufacturer of the products, and that the material supplied is not tropical wood.

3. Public Projects contractors shall certify that no tropical

hardwoods are being used by prime or subcontractors in the awarded project.

III. Council RESOLUTION 89-95, STATE OF CALIFORNIA CO-OPERATIVE

PURCHASING

A. BACKGROUND

Frequently, during the course of business, the City requires material in small quantities. Purchases of many items in small quantities forgoes the discounts vendors offer for large volume purchases. To assist local communities who might normally be unable to take advantage of cost savings through volume purchases the State of California has made many of it’s material contracts available for local governments to place orders against. This provides the local government the opportunity to take advantage of volume discounts, where appropriate, without the administrative or financial investment of large purchases.

B. PROCEDURES

All use of State of California co-operative purchasing contracts will be coordinated through the Finance Division following the procedures outlined in the State of California Co-operative Purchasing Catalog.


IV. Agenda Report dated July 11, 1995; USE OF COMPETITIVE AND CO-OPERATIVE AGREEMENTS

A. BACKGROUND In an effort to make government purchasing more efficient and economical new trends in purchasing are being adopted. Co-operative purchasing agreements allow multiple organizations to combine their requirements into a single purchase agreement. This action reduces the administrative workload by reducing the number of purchase actions and generally results in lower costs through volume buying. Some purchase contracts are written to permit “piggybacking”. This is a situation where a third party, not a part of the original contract, is permitted to place orders against a purchase agreement. Piggybacking frequently results in savings similar to co-operative purchasing.

B. PROCEDURES

The use of co-operative and piggybacking opportunities are authorized when determined to be in the best interests of the City.

V. Ordinance 04-12 and 09-6; SUPPORT OF SANTA CLARITA BUSINESSES

A. BACKGROUND

General Fund revenues make up a large portion of the City’s operating funds and sales tax revenue makes up a large part of the General Fund. Over the last two years, the city has embarked on number of studies and projects intended to capture as much of the tax revenue as possible.

The latest effort in this process is the ”Shop Santa Clarita” campaign. As part of this campaign the City Council adopted an ordinance in support of Santa Clarita businesses. The change to the purchasing process requires local businesses be given a second chance to

receive bid or quote awards if they meet certain criteria. Ordinance 09-6 revised the percentage to 10%.

B. PROCEDURES

This program requires quotes and bids for other than public projects be awarded in accordance with this program, unless otherwise directed by the City Manager, or if the award will be based on multiple criteria. Should businesses located within the city limits of Santa Clarita, submit bids within 10% of the lowest bid, they must be given the opportunity to match the lowest bid. This process begins with the lowest bid from a Santa Clarita business and proceeds until there are no more local bidders within the 10%, or a local business agrees to match the low


bid, whichever occurs first. The Code also requires staff to include the award requirement in the solicitation.

VI. Council RESOLUTION 05-103, ENVIRONMENTALLY PREFERABLE PURCHASING (EPP) PROGRAM

A. BACKGROUND

As businesses and communities grow, the ability of landfills to absorb the refuse is diminished and the hazard to the environment increases. The use of recycled items removes material from the refuse chain, extending the life of landfills. By fostering markets for recycled materials, the City serves a leadership role in promoting similar procurement practices within all City departments, private businesses and the general public. Appendix H further clarifies some of the terms used below.

B. PROCEDURES


2. Recycled products are purchased in preference, highest percentage of post-consumer recovered material followed by highest percentage of pre-consumer recovered material.

Purchasing Policy June 2009 Change 6 Appendix C Page 1

APPENDIX C

RECYCLED PRODUCT

PROCUREMENT RESOLUTION Purpose of Resolution The enactment of a procurement resolution is intended to broaden the use of recycled content products currently purchased on behalf of the City. This resolution will have the effect of underscoring the importance of such efforts on all City departments which submit purchase requisitions. It will promote "buying recycled" goals to the public at large and to private business associated with the City. It will put the City "on record" in support of progressive procurement and market development goals. It will increase the recycled content of products purchased and used by the City of Santa Clarita, its contractors and grantees. It will formalize any current practices by authorizing the Purchasing Agent to specify a minimum level of recycled content in a given bid solicitation. It will provide guidance and leadership by the City to government staff in evaluating the purchase of products for City use. Background A successful City-wide recycling program relies on the establishment of stable and sustaining markets for recyclables. Currently, the nation is experiencing unstable markets and declining commodity prices for various recyclables. In order to ensure available materials, it is necessary to buy products made from recycled materials thereby creating a demand for these materials, which we are attempting to keep out of our landfills. The City of Santa Clarita can facilitate demand for recycled products by purchasing products made from recycled materials. By fostering markets for recycled materials, the City serves a leadership role in promoting similar procurement practices within all City departments, private businesses and the general public. The Local Government Commission completed a report in June 1990 specifying the growing number of cities across the country that have implemented, or are currently implementing similar recycled procurement guidelines. Procurement policies enacted statewide include price preferences for recycled post-consumer materials; revisions of bid specifications which previously required only virgin materials; modification of purchase requisitions requiring the consideration of recycled content products, the compliance of all contractors and grantees working on behalf of the City to implement these City enacted procurement policies, promotion programs,


procedures for obtaining and verifying estimates and certifications of content of recovered materials, and annual review and monitoring. Additionally, the California Integrated Waste Management Act of 1989 mandates that State agencies purchase products manufactured from recycled materials. The State is also asking for cities to join in this statewide effort. It is not enough to merely establish or participate in recycling program development, it has become necessary to commit to the purchase of recycled materials as well. If the end products of the collected and recycled materials are not purchased, then recycling and waste reduction efforts cease to be effective in the long term. The recommended procurement resolution concerns itself with the source of materials used to manufacture products that the City purchases and uses. The object is to ensure that no product manufactured with recycled content of "secondary" material is discriminated against or excluded for reasons other than function. Furthermore, it is important to mandate that such products made from "recycled-content" and "secondary content" materials have a preferential purchasing status over those goods that are strictly made from virgin (raw) materials. This is especially relevant when "recycled-content" products can satisfactorily meet the necessary standards of performance. The Local Government Council in Sacramento has asked that every city establish a government procurement policy to purchase recycled and reusable products. According to the Local Government Commission, 1989 government purchases amounted to $916 billion, or about 20 percent of the gross national product. It is estimated that about 13 percent of that figure represents purchase made by State and local governments. This is a clear indicator that local government procurement resolutions for recycled products can make a significant impact on market development goals. The Federal government and the State of California both have laws favoring the use of recycled products. The Environmental Protection Agency is implementing Section 5002 of the Resource Conservation and Recovery Act, which requires agencies using Federal funds to favor recycled products. The National Recycling Coalition also urges public and private agencies to establish programs favoring purchasing of recycled products. The Local Government Commission is also recommending that governments develop practical new procurement specifications and through their use, demonstrate that recycled products are of high quality. When a city uses recycled paper, for example, the phrase "printed on recycled paper" should appear on all products, i.e.: all stationery, business cards, etc. This leads to good public relations and establishes the City of Santa Clarita as a leader in the arena of market development. In doing so, the City also sets an excellent example for the private sector to follow. In order to accomplish these goals, it is recommended that the City provide specific guidance to City staff, contractors and grantees regarding the importance of "buying recycled." It should be articulated that this is a necessary adjunct to all recycling


programs and will close the recycling "loop" and stimulate market economies, thereby reducing the costs of "recycled-content" materials. The U.S. Environmental Protection Agency's (EPA) recycled product procurement guidelines issued pursuant to the Resource Conservation and Recovery Act do not specifically apply to the City (the City does not fall under the EPA's definition of a "procuring agency"), except in instances where materials are purchased by the City with earmarked federal funds. Although not mandatory, following the guidelines will reduce waste in the manufacture and use of products and packaging purchased by the City. The EPA’s procurement guidelines provide useful guidance and leadership to the City's staff in evaluating the purchase of products for City use. The procurement recommendation, and particularly the provisions for affirmative "recycled-content" product identification, procurement, certification, promotion and annual monitoring (a report will be sent to Council) do conform with EPA guidelines. Please note that the policy endorses the State of California's definition of recycled paper products, rather than the Environmental Protection Agency's. The State definition is more strict than the EPA's when it comes to permitting miscellaneous material to count as "recycled" content, and also requires post-consumer content for different grades of paper for which the EPA does not require any post-consumer content for a paper to qualify as "recycled." This policy will also further contribute to the City's compliance with a State requirement (AB939) that cities undertake and report market development activities. Additionally, AB4, also enacted in 1989, contains four basic requirements: 1. The City must require bidders to specify both the total recovered and post-

consumer content of paper products (even if zero). 2. Specifications should not discriminate against recycled content. 3. City printing contracts must meet the recycled content provisions of AB939. 4. The City must "buy recycled" if a paper product costs no more than

comparable non-recycled paper product.


RESOLUTION NO. 93-9 A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF SANTA CLARITA, CALIFORNIA, FOR THE ADOPTION OF A POLICY REGARDING THE PROCUREMENT OF RECYCLED PRODUCTS

WHEREAS, it is the policy of the City of Santa Clarita to conserve and protect natural

resources for current and future citizens; and

WHEREAS, the City's participation in and promotion of recycling programs can significantly reduce the volume of material entering the waste stream thereby conserving natural resources and extending landfill life expectancy; and

WHEREAS, in order for recycling programs to be effective, markets for recycled post-consumer materials must be developed; and

WHEREAS, the implementation of a procurement policy for the City of Santa Clarita would contribute to the conservation and protection of natural resources and support city-wide recycling programs; and

WHEREAS, the City's commitment to the purchase of recycled materials will help expand the markets for recycled products and serve as a model for private industry and local businesses; and

WHEREAS, State and Federal agencies have implemented procurement guidelines requiring government agencies to buy products made with recycled materials.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Clarita, California, as follows: SECTION 1. The City Council hereby adopts the following policy:

RECYCLED PRODUCTS PROCUREMENT RESOLUTION I. Definitions of Recycled Content A. Post-consumer recovered materials. A finished material which would normally be

disposed of as a solid waste, having completed its life cycle as a consumer item. Examples of post-consumer recovered materials include, but are not limited to; used newspaper, office paper, yard waste, plastic bottles, oil, asphalt, concrete and tires.

B. Pre-consumer recovered material. Material or by-products generated after

manufacturing of a product is completed, but before the product reaches the end-use consumer. Examples of pre-consumer recovered materials include, but are not limited to; obsolete inventories of finished goods, rejected unused stock and paper wastes generated during printing, cutting and other converting operations.

This category does not include mill or manufacturing trim, scrap or "broke," which is

material generated at a manufacturing site and commonly reused within the manufacturing process. For example, pre-consumer paper waste sources are not considered "recycled." Components of a paper product include, but are not limited to; fibers recovered from waste water, trimmings of a paper machine rolls, sawdust, chips, wood slabs, other wood residue from a manufacturing process, and such materials sold between mills.

C. Total recovered material. The total pre- and post-consumer recovered material

contained in a product.


II. Recycled Content Preference It is recommended that the City of Santa Clarita establish a policy, whenever practical, to purchase products which contain, in order of preference, the following: 1. The highest percentage of recycled content of "post-consumer recovered materials,"

available in the marketplace; and 2. The highest percentage of "pre-consumer recovered materials," available in the marketplace. In those instances where it is deemed impractical to procure a recycled-content item, a specific explanation for the finding must be included in the purchasing record (see "Monitoring and Annual Report" section). III. Price Preference A 10% price preference may be given to recycled products, reusable products offered as alternatives to disposable products, and products designated to be recycled where they are offered as alternatives to non-recyclable products. The preference percentage shall be based on the lowest bid or price quoted by the supplier offering recycled products. IV. Recyclability and Waste Reduction In addition to the recovered material content of a product, important criteria in selecting products shall also be: 1. The ability of a product and its packaging to be reused , reconditioned for use, or recycled

through existing recycling collection programs; and 2. The volume and toxicity of waste and by-products of a given product and its packaging

generate in their manufacture, use, recycling and disposal. Products and packaging designed to minimize waste and toxic by-products in their manufacture, use, recycling and disposal shall be preferred.

V. Equipment Compatibility Equipment purchased or rented by the City shall be compatible, whenever practical, with the use of recycled content products. If deemed impractical, a specific reason for such a finding must be included in the purchasing record. VI. Purchase Requisition, Specification and Bid Solicitation Product specification and requisitions for products shall conform to the following guidelines: 1. Product specifications and requisitions shall not indiscriminately require the use of products

made from virgin materials, nor specifically exclude the use of recycled-content products; 2. Performance standards must be reasonable and related to function, and shall not be

designed to exclude the purchase of recycled-content products; 3. To the extent such information is known, City staff shall identify to the Purchasing Division (in

the Purchase Requisition) products available with recycled content and vendors from who such products are available.

4. Purchasing agents have the authority to specify a minimum "recycled-content" standard in bid

solicitations to accomplish the purposes of this policy.


VII. Contractors and Grantees All City contractors and grantees shall be required to conform to the minimum recycled-content procurement standards set forth by the Finance Department. This requirement shall be applied to contractors and grantees in procuring materials or products to perform contractual services for the City, to produce or provide a work product to the City or on the City's behalf, or to conduct work funded by a grant from the City. The list shall be reviewed as needed, but no less than annually, by the City Council (see "Monitoring and Annual Report" section). Contractors and grantees shall be further required to report to the City the types, quantities and total dollar amounts of recycled products which are purchased by the contractor or grantee in connection with

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