Contracting Procedures Manual - Granicuslongbeach.granicus.com/DocumentViewer.php?file=longbeach_29fe6fa... · This manual contains various statutory references and excerpts from

This manual contains various statutory references and excerpts from the California Public Contract Code, City of Long Beach Municipal Code and City of Long Beach Charter. In case of any differences between this manual and statutory or regulatory language, the latter shall prevail.

Contracting Procedures Manual

Last Revised:

February 2011

Version 0.2

Port of Long Beach Contracting Procedures Manual Page | 2

Table of Contents

Chapter 1: Introduction / Overview .......................................................................................... 5

1.1 Introduction ..................................................................................................................................5

1.2 Purpose and Scope ........................................................................................................................5

1.3 Organizational Structure of Contracting Activities ........................................................................5

1.4 Governance, Administrative Oversight and Control .....................................................................5

1.5 Segregation of Duties ....................................................................................................................6

1.6 Procurement and Contract Types .................................................................................................6

1.7 Competitive Solicitation Overview ................................................................................................6

1.8 Acronyms ......................................................................................................................................7

Chapter 2: Basic Requirements and Exceptions ......................................................................... 8

2.1 Competitive Bidding and Approval Requirements ........................................................................9

2.2 Exceptions to the Low-Bid Process .............................................................................................11

2.3 “Sole Source” Contracts ..............................................................................................................11

2.4 Emergency Work .........................................................................................................................12

2.5 Proper Use of a Contract vs. a Purchase Order ...........................................................................12

2.6 Proper Use of Project-Specific vs. On-call Contracts ..................................................................13

2.7 Insurance .....................................................................................................................................14

2.8 Small / Very Small Business Enterprise Program (SBE / VSBE) ....................................................15

2.9 Piggybacking on Other Agency Contracts ...................................................................................15

2.10 Availability of Contract Files ......................................................................................................16

2.11 Purchasing Authority and Order Splitting .................................................................................17

2.12 Capital/Expense Work Order (i.e., Open a Project) ..................................................................17

2.13 Reimbursable Work Orders .......................................................................................................17

Chapter 3: Ethics in Contracting ...............................................................................................19

3.1 Employee Code of Conduct .........................................................................................................19

3.2 Conflicts of Interest .....................................................................................................................19

3.3 Appearance of Fairness ...............................................................................................................20

3.4 Disclosure Process .......................................................................................................................20

3.5 Recap ...........................................................................................................................................21

Chapter 4: Service and Labor Contracts Pre-Solicitation through Contract Award .....................23

4.1 Background .................................................................................................................................23

4.2 Pre-Solicitation Phase .................................................................................................................24

4.3 Solicitation Phase ........................................................................................................................29

4.4 Proposal Receipt and Evaluation Phase ......................................................................................29

4.5 Contract Award Phase .................................................................................................................31

Chapter 5: Construction Contracts Pre-Solicitation through Contract Award ............................33


5.1 Background .................................................................................................................................33



5.4 Bid Receipt and Evaluation Phase ...............................................................................................36


5.6 Pre-Qualification Process ............................................................................................................38

Chapter 6: Materials, Supplies and Equipment Contracts Pre-solicitation through Contract

Award ......................................................................................................................................39

6.1 Background .................................................................................................................................39



6.4 Bid Receipt and Evaluation Phase ...............................................................................................42


Chapter 7: Contract Preparation ..............................................................................................45

7.1 Contract Preparation Basics ........................................................................................................45

7.2 Procedures ..................................................................................................................................45

Chapter 8: Contract Administration .........................................................................................49

8.1 Background .................................................................................................................................49

8.2 Establish the Project Infrastructure ............................................................................................49

8.3 Pre-construction / Post Award Kick-off Meetings .......................................................................49

8.4 Monitor Contractor Performance ...............................................................................................50

8.5 Considerations Specific to On-call Contracts ..............................................................................51

8.6 Invoice / Progress Payment Review and Approval ......................................................................52

8.7 Contract Amendments ................................................................................................................54

8.8 Change Orders.............................................................................................................................55

8.9 Contractor Pending Change Order (CPCO) ..................................................................................57

8.10 Contractor Status Changes ........................................................................................................57

8.11 Claim / Dispute Handling and Resolution .................................................................................58

8.12 Contract Close-out ....................................................................................................................58

8.13 Good Record Keeping ................................................................................................................59

8.14 Contract Administration Principles Recap ................................................................................60

Chapter 9: Appendices .............................................................................................................63

Appendix 1 – Forms: Pre-solicitation through Contract Award63

1-A - Sample Insurance Language 63 1-B - Procurement Summary Form 1-C - Written Proposal Evaluation Form 1-D - Oral Presentation Ranking Form 1-E - Oral Presentation/Interview Ranking Summary 1-F - Final Proposal Evaluation Summary 1-G - Contractor Certification Form

Appendix 2 – Forms: Contract Preparation63


2-A - Contract Request Form 2-B - Sample Cover Letter 2-C - Project Approval Request Form 2-D - Reimbursable Work Order Form 2-E - Request for Taxpayer ID Number (W-9) 2-F - Approval of Insurance Documents Memo 2-G - Vendor Add Form 2-H – Notary Form

Appendix 3 – Forms: Contract Administration63

3-A - Contract Amendment Background Form 3-B - Contract Change Order Background Form 3-C - Professional Services Contractor Evaluation Form 3-D - Construction Contractor Evaluation Form

Appendix 4 – Quick Start Checklists and Flowcharts63

4-A - Quick Start Check List #1—Solicitation through Contract Award 4-B - Quick Start Check List #2—Contract Preparation 4-C - Solicitation Document Checklist 4-D - Contract File Documentation Checklist 4-E - Service and Labor Contracts Pre-Solicitation through Contract Award Flowchart 4-F - Public Works Contracts Pre-Solicitation through Contract Award Flowchart 4-G - Contract Preparation Flowchart

Appendix 5– Reference Resources and Useful Web Links64

5-A - City Attorney Memo Re: Appropriate Use of Purchase Orders 5-B - City of Long Beach Ethics Guide 5-C - POLB Code of Conduct Administrative Directive 5-D – Useful Links


Chapter 1:

Introduction / Overview

1.1 Introduction The Port of Long Beach (“POLB”) has a regular, on-going need to enter into contracts with third party organizations for the procurement of construction services, consulting / professional services and materials, supplies and equipment. As a public entity, it is critical that the procedures adopted by POLB to solicit, evaluate, award and manage contracts are equitable, transparent and follow applicable statutory requirements.

1.2 Purpose and Scope The purpose of this manual is to provide guidance, establish best contracting standards, and serve as a resource to POLB staff involved in contracting activities such that an equitable, transparent and stream-lined process is followed that maximizes the value received for expended funds and minimizes risk exposure to POLB. The procedures outlined within this manual apply to all POLB procurements.

1.3 Organizational Structure of Contracting Activities POLB’s procurement function is decentralized, whereby division staff are responsible for the entire process from pre-solicitation through contract close-out. This structure benefits the contracting process in that staff has a better understanding of specific project requirements, possess the technical expertise in the area of work to be performed, and has in-depth knowledge of the most qualified providers. However, this decentralized structure poses some limitations if desired procedures are not well defined. For example, staff may follow processes which may be inconsistent with desired practices. Accordingly, it is important to set forth a certain level of internal controls, which take into consideration statutory law, City of Long Beach ordinances / charter requirements and contracting best practices.

1.4 Governance, Administrative Oversight and Control As part of the Finance Division within POLB’s Finance and Administration Bureau, the Contract Compliance Section (“CCS”) is responsible for oversight and internal control of all contracts and serves as a resource to all POLB staff for contracting related issues. CCS is responsible for ensuring that appropriate practices and procedures for contracting are established and monitored. The purpose of this section is to create a system for an additional level of checks and balances to ensure that the contracting process is consistent and well-controlled. As well as being a resource for understanding proper contracting procedures, CCS will perform routine compliance reviews of new solicitations, contracts, contract amendments, contract change orders, and purchase orders and make recommendations to create corrective internal contract compliance controls, when necessary. Furthermore, the section is responsible for managing the Small Business Enterprise / Very Small Business Enterprise (SBE / VSBE) program and related compliance reviews therein.


POLB staff are responsible for carrying out the required procedures contained herein, in conjunction with the approval, oversight and administrative assistance of the Board of Harbor Commissioners, City Attorney’s Office, Executive Director and the CCS.

1.5 Segregation of Duties Segregation of duties is considered necessary for effective internal control as it reduces the risk of errors and guards against a variety of bad practices such as favoritism or fraud. As it relates to procurement and contracting, the following key duties should be segregated: authority for decisions leading up to and the award of contracts, oversight of contractors’ work, acknowledging and physical receipt of goods and services, approving invoices and processing payments. In the event that ideal segregation of duties is not feasible, compensating controls (e.g., independent supervisory review) should be developed and practiced. This manual was developed with a control-based focus which when followed will provide reasonable assurance that segregation of duties and/or compensating monitoring controls exist.

1.6 Procurement and Contract Types POLB’s contracting activities fall into the following three broad procurement types: 1) service and labor project contracts (e.g., engineering design, IT system implementation); 2) construction contracts; and 3) contracts for the purchase of materials, supplies or equipment. The first type is awarded based on a qualifications-based selection process to ensure best overall quality and value, while the latter two types are generally awarded on the basis of a low bid. Each type and the related procedures to be followed are discussed in further detail within Chapters 4-6 of this manual. Contracts can either be project-specific, on-call/multi-task, or direct purchase contracts. Project-specific contracts, as the name infers, are awarded for a distinct scope of work which the contractor commences once the contract is finalized and continues until the tasks are complete. In the case of on-call professional service contracts, usually multiple firms (3-5) are awarded contracts within core disciplines for which POLB has a routine and on-going need for (e.g., environmental remediation services, IT professional services). When a need arises, the pool of on-call contractors* (if more than one) are requested to submit a cost proposal and the selected firm is issued a task order authorization to proceed with the work. Direct purchase contracts are for the one-time procurement of goods. Each is described in further detail throughout this manual. Note: Throughout this manual, the term “contractor” is intended to mean construction contractor for construction contracts, consultant for professional services contracts and vendor for materials, supplies and equipment contracts.

1.7 Competitive Solicitation Overview Competition is one of the basic tenets in federal, state and local procurement and it is POLB’s overarching policy to provide qualified providers with an equal opportunity to compete for Port procurements. Procurement activities must be conducted in an

POLB’s overarching

policy is to provide

every qualified

provider with an equal

opportunity to compete

for Port procurements.


open and fair environment that promotes competition among prospective suppliers. While this concept should be used as a guiding principle, the level of solicitation and competition will vary based on the type, dollar value and circumstances (such as urgency) of a given procurement. More specific policies and guidance are provided in Chapter 2 and throughout this manual.

1.8 Acronyms Following is a list of acronyms that are used frequently throughout this manual:

ADPICS The Port’s Purchasing / PO System NIB Notice Inviting Bids

A&E Architecture and Engineering NTP Notice to Proceed

BHC Board of Harbor Commissioners MUR Monthly Utilization Report (SBE)

BPO Blanket Purchase Order PM Program Management Division

CA City Attorney POLB Port of Long Beach

CCS Contract Compliance Section QBS Qualifications Based Selection

CP Commitment Plan – SBE RFP Request for Proposal

CM Construction Management Division RFQ Request for Quotation

COLB City of Long Beach RM Risk Management Division

ED Executive Director ROM Rough Order of Magnitude

EDRMS Electronic Document Records

Management System

RSOQ Request for Statement of

Qualifications

DPO Direct Purchase Order SBE Small Business Enterprise Program

FAMIS The Port’s General Ledger System SOW Scope / Statement of Work

GFE Good Faith Effort (SBE) VSBE Very Small Business Enterprise


PURPOSELY LEFT BLANK


Chapter 2:

Basic Requirements and Exceptions

2.1 Competitive Bidding and Approval Requirements The COLB Charter (sections 1801 and 1214) and Municipal Code (sections 2.84.01, 2.86.020 & 2.93.060) require that any contract over $100,000 needs to be competitively bid and awarded to the lowest responsible bidder, except as otherwise provided in the Charter or by general law (refer to section 2.2 below for a list of exemptions to competitive bidding). Where formal bidding is not required, consideration should still be given to issuing a Request for Proposal, Request for Statement of Qualifications or a Request for Quote to ensure appropriate quality, pricing and competition. The following tables outline the minimum solicitation and approval requirements for each contract type.

Contract Value Required Solicitation Required Approval

Service and Labor Procurement

$100,001+ Formal competitive procedures are required whereby an RFP or RSOQ is advertised and terms are actively negotiated based on qualifications and fees. NOTE: Refer to section 2.2 for certain professional services which may be exempt from formal competitive procedures.

The contract must be approved by the Board of Harbor Commissioners, and signed by the Executive Director.

$50,001 - $100,000

Informal competitive procedures are permitted whereby an RFP, RSOQ, or e-mail with a written scope of work is issued and a minimum of three written qualifications and quotations are obtained from qualified sources and terms are actively negotiated. Factors other than price may be considered when awarding the contract. If three providers cannot be found, documentation to support this should be placed in the solicitation file along with a record of the quotes received.

The contract must be signed by the Executive Director. Submit a completed Procurement Summary Form to the Executive Director when requesting the contract to be signed.

$50,000 and under

A written scope of work is issued and a minimum of three verbal qualifications and quotations should be obtained where practicable. If three providers cannot be found, documentation to support this should be placed in the solicitation file along with a record of the quotes received.


Continued on the following page


Contract Value Required Solicitation Required Approval

Construction Projects

$100,001+ Formal competitive procedures required whereby a written specification and Notice Inviting Bids is advertised in a newspaper of general circulation (e.g., Long Beach Press Telegram) and sealed bids are received, opened in a public meeting and the contract is awarded to the lowest responsible bidder who submits a responsive bid.

The contract must be approved by the Board of Harbor Commissioners, and signed by the Executive Director.

$100,000 and under

Informal competitive procedures are permitted whereby a written specification is advertised or emailed to known providers and a minimum of three written quotations are received and the contract is awarded to the lowest responsible bidder who submits a responsive bid. If three providers cannot be found, documentation to support this should be placed in the contract file along with a record of the quotes received.


Materials, Supplies and Equipment Procurement

$100,001+ Formal competitive procedures required whereby written specifications, RFP, RFQ or a Notice Inviting Bids are advertised in a newspaper of general circulation and sealed bids are received, opened in a public meeting and the contract is awarded to the lowest responsible bidder.

The procurement must be approved by the Board of Harbor Commissioners and if a contract is necessary, it must be signed by the Executive Director.

$50,001 - $100,000

Informal competitive procedures are permitted whereby written specifications, RFP, RFQ or brief scope of work are advertised or emailed to known suppliers and a minimum of three written quotations are obtained. If three providers cannot be found, documentation to support this should be placed in the contract file along with a record of the quotes received. The purchase should generally be made from the lowest responsible bidder, with all factors being equal.

The procurement must be approved by the Executive Director and if a contract is necessary, it must also be signed by the Executive Director. Submit a completed Procurement Summary Form to the Executive Director when requesting the contract to be signed.

$50,000 and under

A written scope of work should be issued and a minimum of three verbal quotations should be obtained where practicable (e.g., via phone call, email, etc). A record of the communication shall be kept on file. If three providers cannot be found, documentation to support this should be placed in the contract file along with a record of the quotes received. The purchase should generally be made from the lowest responsible bidder, with all factors being equal.

The procurement must be approved by a Division Director and if a contract is necessary, it must be signed by the Executive Director. Submit a completed Procurement Summary Form to the Executive Director when requesting the contract to be signed.


2.2 Exceptions to the Low-Bid Process Regardless of the estimated contract value, the City Charter and California Government Code provide exceptions to awarding a contract to the lowest bidder for the following types of procurements: Professional Services – California Government Code Sections 4526-4529 (also referred to as the

“Mini-Brooks Act”) provides for an exemption from awarding the contract to the lowest bidder for the procurement of professional services in areas which require a substantial amount of professional expertise and judgment. This includes architectural and engineering (A/E), environmental, land surveying, and construction management services. The terms of these contracts should be negotiated and awarded to the most competent and qualified firm to perform the given scope of work. It is still necessary, however, to engage market forces during these procurements through the issuance of an RFP or RSOQ, to ensure the staff has a thorough understanding of the qualifications of firms within a given industry and to obtain the best overall value for POLB.

Telecommunications and Electronic Data Processing Equipment – City Charter Section 1807 (“Negotiated Contracts -- Electronic Data Processing and Telecommunications Equipment”) provides that the Board of Harbor Commissioners may authorize and award negotiated contracts which are based on competitive proposals instead of sealed bids, for the acquisition of electronic data processing and telecommunication equipment, systems, subsystems and related materials, goods and services.

Piggy-back on a joint and cooperative purchasing agreement by another agency – City Charter Section 1802 (“Contracts of Other Governmental Agencies”) provides that POLB may participate in joint and cooperative purchasing of services, supplies, materials, equipment and labor with other cities, counties, districts, State and Federal governments or other governmental agencies, singly, jointly, or in districts or associations, by purchasing under their contracts on a voluntary and selective basis. Refer to section 2.9 below for additional detail.

Emergencies – Any contracts required in response to an emergency situation may be exempt from following a competitive bidding process. Refer to section 2.4 below for additional detail.

2.3 “Sole Source” Contracts In rare cases, competitive bidding cannot be performed due to a sole source condition. The following table outlines the most common reasons for a sole source procurement:

Rationale (Type) Overview

Expertise (Services) Typically applies to firms that are uniquely qualified as a result of a

specialized technical expertise, credentials, or have a strong

background working on a particular type of project (e.g., a

manufacturer performing repair work on its own equipment where

specialized expertise is not readily available).

POLB’s need is typically narrowly defined or the consequences of

failure so severe that there is only one logical provider.

Compatibility or Technical

Requirements (Goods)

Only one specific manufacturer’s part number is acceptable due to

compatibility (i.e., replacement part) or technical requirements.

The manufacturer only sells through an exclusive distributor.


Instances where a sole provider is identified as the recipient of a contract must be well documented to support staff’s rationale and to demonstrate that no other qualified provider has been denied an opportunity to compete for a contract. For contracts that would otherwise require competitive bidding due to their value, it is important to document the sole source justification and process followed to determine the cost was deemed fair and reasonable using the Procurement Summary Form (see Appendix 1 form 1-B). Once complete and the required approvals are obtained, upload the form to EDRMS (in the interim prior to EDRMS, email a copy to the Contract Compliance Section). It is recommended to complete this form at least one week prior to going to Committee or Board.

2.4 Emergency Work In a true emergency situation, expedited contracting and approval procedures are available. However, the City Attorney’s Office and Risk Management must be notified as soon as an emergency contracting need is discovered in order to develop a communication and mitigation plan. For example, it may be possible, pursuant to Government Code Section 54954.2(b)(2), to add an item to a BHC agenda if there is a need for immediate action, and it came to the attention of POLB staff after the agenda had already been posted. Special meetings or emergency meetings of the BHC can also be called on relatively short notice: 24 hours and one hour, respectively. Under Section 22050 of the Public Contracting Code, the BHC may authorize immediate repair or replacement of any public facility without adopting plans and specifications or soliciting bids. Following approval by the BHC, the Director of any division may engage the City Attorney to prepare a contract for services to remedy the emergency situation. The Division Director must submit an emergency justification in writing to the BHC with copies to the Executive Director and Risk Management explaining the conditions which led to the emergency. This justification must be submitted no later than the next regular business day after the emergency contracting need was identified. The BHC will consider and make findings based on the justification submitted. A copy of the justification should be retained in the contract file and uploaded to EDRMS (in the interim prior to EDRMS, email a copy to the Contract Compliance Section).

In the event that a state of emergency is declared by the State or Federal government, approval to begin repair work must be authorized by the City Manager. 2.5 Proper Use of a Contract vs. a Purchase Order The two accepted contracting vehicles are Purchase Orders (P.O.) and contracts issued by the City Attorney’s Office. Purchase Orders A Purchase Order (P.O.) is the less time consuming option; however, the standard pre-printed terms are designed to protect POLB in only the simplest of transactions.

Sole source justification

must be documented on

the Procurement

Summary Form.

Emergency – A sudden,

unexpected occurrence

that poses a clear and

imminent danger,

requiring immediate

action to prevent or

mitigate the loss or

impairment of life,

health, property or

essential public

services. – PCC Section

1102.

A lack of planning

which results in

initially benign

circumstances

deteriorating into a

situation which

requires urgent action

is NOT an emergency.

The City Attorney’s

Office is available to

offer guidance on

emergency procedures.


In addition, P.O.s include minimum insurance requirements and the types and amounts of insurance may be insufficient for the work being performed. Accordingly, a P.O. should generally only be used for the purchase of off-the shelf items such as office supplies and equipment which do not require any installation, on-site training or maintenance and in most cases, where the purchase does not exceed $100,000. Contracts For more complex situations such as construction projects or services, a contract must be executed so that the appropriate provisions and insurance terms can be included. Except for very limited situations, all contracts must be executed on the standard template issued by the City Attorney’s Office. Any requests to alter the standard terms and conditions, or to use a contractor’s contract template, must be approved in advance and in writing by the City Attorney’s Office. If a procurement is expected to exceed $100,000 and the contract owner feels that a P.O. is appropriate, the City Attorney’s Office must be consulted with for a final determination. Refer to Appendix 5 for a memo (5-A) issued by the City Attorney for further guidance on this topic.

2.6 Proper Use of Project-Specific vs. On-call Contracts This section addresses the intent and proper use of project-specific and on-call contracts. Additional background information for each contract type is provided in section 1.6. Project-specific contracts are awarded for a defined scope of work (e.g., program / project), which commences once the contract is executed, and upon completion of the contracted scope of work, the contract is closed out. Project-specific contracts may be for services, construction projects, or the direct purchase of materials, supplies and equipment and any related installation. These contracts are generally larger in scope and value than on-call contracts and typically relate to an overall program or project where the firm under contract serves in a lead role for a particular aspect of the project (e.g., an engineering firm involved in all phases of a particular project’s design). Conversely, on-call contracts are awarded in areas where POLB has a frequent on-going need, however, the timing and extent of the need is unpredictable. The primary intent of on-call contracts is to ensure POLB is able to respond quickly and efficiently as necessary. On-call contracts are typically issued for a general scope of work within a defined area of expertise and for a preset duration (e.g., 3 years). The total contract value, as well as the individual tasks performed, are much smaller in value, scope, and duration in comparison to the work performed under a project-specific contract.

In most cases, Purchase

Orders are only

appropriate for the

procurement of off-the-

shelf items requiring no

installation or training.

A Purchase Order must

not be used to amend a

contract .

All purchases exceeding

$100,000 must be

reviewed by the City

Attorney’s Office to

determine whether a

P.O. or contract is

appropriate.


The following rules apply to the use of project-specific and on-call contracts, except for in true emergency situations. Emergency contracting procedures are addressed in section 2.4. Project-specific:

Contracts should have a well defined scope, which is measurable to the extent staff is able to determine if the work contemplated by the contract has been satisfactorily delivered.

The contract award amount should be for the same amount as the winning firm’s bid/negotiated proposal.

Any amendment must closely relate to the scope of work which was included in the original solicitation documents and consequently, what all interested firms initially proposed / bid on. At a minimum, project-specific contract amendments must relate to the same program or project.

For phased projects where it is known the contract will be awarded for an initial phase and amended for each subsequent phase, the solicitation documents should be written to reflect this, and the BHC should be made aware of the total estimated project cost and that future requests to approve contract amendments may be made. On-call:

The scope of assigned tasks must fit into the scope or area of expertise for which they proposed / bid on and are qualified to perform.

On-call contracts must not be used to perform or supplement work which was included in the scope of a separate and distinct, project-specific contract, unless a deductive change order is processed against the project-specific contract to delete the subject scope of work.

Contracts should be written for a preset duration (e.g., 1-3 years) and only be amended for the time or value necessary to complete any work that is already in progress. Once expired and if funds need to be added to the contract, the scope-of-work should be re-competed to ensure POLB obtains the best value for expended funds, and to provide all firms with an equal opportunity to compete for POLB procurements. Any amendment must closely relate to the scope of work which was included in the original solicitation documents and consequently, what all interested firms initially proposed / bid on.

2.7 Insurance All contractors must comply with POLB’s insurance requirements. Prior to advertising the project (or awarding the contract if a “sole source” opportunity), a scope of work must be submitted to the Risk Management (RM) Division so that insurance requirements can be established and included within the solicitation materials and contract. RM will provide the specific contract language that details the required insurance. This language must be included in all solicitation documents as part of the specification, or as an exhibit to the RFP or RSOQ. (A sample has been provided for illustration purposes only Appendix 1 form 1-A). Contractors must provide evidence that they have obtained the insurance coverage and added POLB as additional insured on their policies prior to a contract being

Prior to advertising a

new solicitation, the

scope of work must be

provided to Risk

Management and SBE

for review and a

determination of

required insurance

and small business

participation goals.

Contractors must

provide evidence that

they have obtained

the required

insurance coverages

prior to a contract

being executed and

the start of work.


executed and the start of any work. The preferred method is to have the contractor’s insurance carrier complete POLB’s Special Insurance Endorsement Forms (located at: http://www.polb.com/economics/contractors/forms_permits/insurance.asp). If the forms cannot be completed, the contractor should submit full and complete, certified copies of their insurance policies as required by the contract. It is critical to actively manage the contractor’s status with respect to obtaining the required insurance and proper evidence of such, as the start of the project may be delayed. This is particularly relevant on construction projects, as many projects have tight timelines for completion, with significant liquidated damages. Consequently, issuing the Notice to Proceed (NTP) timely is critical to limiting unnecessary, avoidable costs and time delays. In most cases the NTP should be issued 30 days after all contract award conditions have been met(e.g., insurance, bonds) and the contract has been executed. If all award conditions have been satisfied per the terms in the specifications and the issuance of NTP is delayed beyond 30 days of contract execution, the reason for the delay (whether caused by a contractor or based on a decision made by staff) should be documented and included in the contract file. In no event shall an NTP authorizing work to begin or related payments be issued prior to the requesting division receiving original contracts signed by the Executive Director. In addition, contractors that meet any of the following three criteria are subject to a financial review and will be required to provide copies of their most recent audited financial statements (balance sheet, income statement and statement of cash flows):

Self-insured retention or deductible greater than $50,000 (any size firm);

Where the nature of the work performed is determined by Risk Management to be high-risk and the contracted provider has a self-insured retention or deductible greater than $5,000 (any size firm); or

Small businesses with a self-insured retention or deductible greater than $5,000. Refer to RM policies or contact a RM Division representative for further information.

2.8 Small / Very Small Business Enterprise Program (SBE / VSBE) It is POLB’s policy to provide small businesses with an equal opportunity to participate in the performance of all contracts that afford such opportunities. Prior to advertising the solicitation documents, the contract owner within the division should work with the SBE Program Section to identify SBE/VSBE goals for the given scope of work. In addition, the SBE Program Section maintains “The Network”, an online contractor database and e-procurement system, which should be utilized when performing outreach activities. The SBE / VSBE goals for each project should be included within the solicitation document and ultimately the contract. All contractors must comply with the stated goals and SBE / VSBE usage will be monitored throughout the term of the contract. Refer to the SBE program policies or contact an SBE Section representative for further details.

2.9 Piggybacking on Other Agency Contracts The City Charter permits POLB to participate in cooperative purchasing with other federal, state and local agencies (i.e., “piggybacking”). Significant cost savings can be realized when piggybacking, as the consolidated buying power of multiple agencies may result in a lower overall cost than if POLB attempted to procure the goods or services on its own.

http://www.polb.com/economics/contractors/forms_permits/insurance.asp


The following should be considered when determining whether to piggyback on another agency’s contract:

Compare the cooperative purchasing contract with the POLB procurement. Is POLB just buying fewer units or is POLB buying only a few of many types of goods and services available under the cooperative purchasing contract?

Compare the prices available under the cooperative purchasing contract with prices available elsewhere.

Closely review the insurance provisions of the contract to determine if POLB will be adequately protected for the proposed scope of work. Risk Management can perform or assist with this review.

Contracts for services where the risk profile of POLB is significantly different than that of the other agency should not be considered for piggybacking. Examples include contracts for waterborne activities, excavation, environmental, storm water and pipeline services.

In order to piggy-back on an inter-agency contract, 1) a finding must be made that it would be more costly to go out to bid than to piggy-back on another contract, and 2) a resolution must be passed by the BHC authorizing the Executive Director to execute a purchase through the said contract. The following detailed steps should be followed in order to piggyback on an inter-agency contract:

Document through quotes, price lists, etc., that it would be more expensive to go out to bid than to purchase through a piggy-back contract;

Request the City Attorney’s Office to prepare the authorizing resolution and contract. The request must be accompanied by a complete copy of the contract that you wish to piggy-back on and documentation showing that it would be more expensive to go out to bid. If there is a contractor’s standard form contract for participating in the underlying contract, that form must be reviewed by the City Attorney. If not, the City Attorney will draft an appropriate agreement;

Place the resolution and agreement between POLB and the contractor along with the underlying contract on which it piggy-backs on the agenda for committee and board approval; and

Have the agreement between POLB and the contractor approved as to form and executed as usual.

City Contract Piggy-backing POLB may also piggy-back on COLB contracts. In many cases, there are open contracts in place available for routine procurements of products and services. If available and there is a desire to participate in one of these contracts, a purchase order and journal transfer may be used. City-wide contracts have capacity constraints, and staff should be mindful of these contract values. In addition, consideration should be given to ensure that the best value to the Port is achieved (e.g. pricing and terms are competitive). If, however, the desired contract is not open for use, the process outlined above for piggy-backing on an inter-agency contract should be followed. For example, if the City bought a certain piece of equipment in a contract that has already been executed and the Port would like to buy the same piece of equipment at the same price.

2.10 Availability of Contract Files Contract files must include adequate documentation that clearly demonstrates sound business judgment was used in the procurement process, and that all of the applicable rules and statutory requirements were adhered to. Contract files must be consistent in content and organization in order to track the procurement process and to demonstrate how the award was made (refer to the Procurement Summary


Form located at Appendix 1-B). Each division is responsible for maintaining evidence to support the decision-making process and for making files available for internal and public inspection upon request. Refer to section 8.13 for a listing of required contract file documentation.

2.11 Purchasing Authority and Order Splitting Separate and aside from the contract and competitive bidding requirements outlined above, Division Directors have been delegated approval authority for purchases up to $50,000. Purchases valued from $50,001 - $100,000 must be approved by the Executive Director, and by the BHC if greater than $100,000. No person shall willfully split a single transaction (including change orders and amendments) into a series of transactions for the purpose of evading any approval or bidding requirements.

2.12 Capital/Expense Work Order (i.e., Open a Project) If charges are going to be tracked based on a specific project, the requesting division should contact the Finance Division to request a project number. Finance will ask the requesting division to provide a brief description of the project. Once a project number has been assigned by the Finance division, a Project Approval Request form (Appendix 2 form 2-C) must be prepared and submitted for approval to the Division Director or, for engineering projects, the Chief Harbor Engineer. This form must also be routed to the Chief Financial Officer and Executive Director for approval. For projects greater than $100,000, the completed and approved form must be attached to the Board memo when requesting approval to enter into a contract.

2.13 Reimbursable Work Orders A Reimbursable Work Order form (Appendix 2 form 2-D) is required if POLB will be doing work that is to be reimbursed by a third party. Generally, this form must be signed by the third party authorizing the work prior to the commencement of any work. If it is unclear as to which party is responsible for the cost of the work, contact the Contract Compliance Section or City Attorney’s Office to assist in making a determination as to the billable party. Reimbursable work orders must also be approved by the Division Director or, for engineering projects, the Chief Harbor Engineer, Chief Financial Officer and, if over $100,000, the Board of Harbor Commissioners. Reimbursable work orders specifically for maintenance work may be created and approved directly through the MAINSTAR system by the Maintenance Division.

No person shall

willfully split a single

transaction (including

change orders and

amendments) into a

series of transactions

for the purpose of

evading any approval

or bidding

requirements.




Chapter 3:

Ethics in Contracting 3.1 Employee Code of Conduct POLB has adopted an employee Code of Conduct which sets forth the expected standards of ethical behavior, guidance for determining whether a conflict of interest exists and procedures for dealing with identified issues. It is the responsibility of all staff to familiarize themselves with and adhere to the Code of Conduct. The Code is documented in Administrative Directive section: VII.32, which is located on the POLB intranet at the following link: http://polbnet/divisions/admin/hr/policies/personnel.asp. In addition to the POLB Code of Conduct, the COLB has adopted an “Ethics Guide,” which should be used in conjunction with the POLB Code. These documents are also available for your reference in Appendix 5, 5-B and 5-C, respectively.

3.2 Conflicts of Interest All POLB officers, employees and board members are required by law to avoid situations where actions may affect or appear to affect personal interests, financial or non-financial. A financial conflict of interest is defined in the POLB Code of Conduct, as follows:

You have a conflict of interest if your public actions as a City official, employee, or board member affect your personal financial interests or the interests of your immediate family members. It does not matter whether the action has a negative or positive effect on the interest.

Therefore, state law prohibits you from making, participating in making, or attempting to influence any government decision if it is

reasonably foreseeable that the decision will have a material financial effect on any of your economic interests or those of an immediate

family member. Conflicts Related to Contracts While not expressly stated in the POLB Code, staff involved in any contracting activity from solicitation through contract close-out, should exercise common sense and good judgment, avoiding even the appearance of a conflict of interest. At a minimum, staff must refrain from the following prohibited activities:

All staff must be

familiar with and

adhere to the

standards within the

employee Code of

Conduct.

http://polbnet/divisions/admin/hr/policies/personnel.asp


1. Having any beneficial financial interest in a contract, either directly or indirectly through a family member, if their duties call on them to participate in any way or at any stage in the approval of the contract. If a beneficial financial interest exists, any participation (including discussion) in the process by which such a contract is developed, negotiated or executed is a violation of State law.

2. Engaging in prohibited communication during an active solicitation or change order / amendment negotiation period, or divulging information that is not publicly available with any current contractor or interested bidder / proposer such as draft specifications, plans or drawings for upcoming projects or projects out for bid. An active solicitation is defined as the period between when a project has been advertised to the general public through to conditional contract award by the BHC. Discussing upcoming projects in very general terms is allowed.

3. Accepting any compensation, gratuity, gifts, or reward from a contractor doing business with, or seeking to do business with POLB during an active solicitation or change order / amendment negotiation period. Gifts received when there is no active solicitation or change order / amendment negotiations in progress are allowed to the extent that the limits established in the City of Long Beach gift policy are followed (see Appendix 5-B, City of Long Beach Ethics Guide).

4. Influencing or attempting to influence any POLB decision from which s/he or a family member may benefit.

5. Circumventing established internal controls and procedures or allowing personal bias / favoritism to affect decision-making.

6. Discussing potential opportunities to be employed by a contractor unless properly disclosed and a determination made as to whether any action is required to proceed.

Staff should refer to the POLB Code of Conduct Administrative Directive and COLB Ethics Guide for further guidance on expected behavior and for avoiding conflicts of interest. If your situation is not clearly addressed in these materials, contact the City Attorney’s Office for advice.

3.3 Appearance of Fairness By conducting an open competition with a transparent and well documented selection process, proposers can be assured that POLB’s decision was objective and unbiased and was based on the stated evaluation criteria. Firms with current or prior experience conducting business with POLB inherently have a competitive advantage; however, this does not necessarily represent an unfair advantage if appropriate measures are taken. To this end, it is critical that POLB staff not disclose detailed information about upcoming, specific procurements to any current, prior or potential contractors prior to advertising the procurement to the general public, as this may have the appearance that they have an inside track and additional time to develop a proposal. In addition, staff should be careful not to structure the project specifications or scope in a way that favors any one particular provider. Moreover, any current contractor should be reminded of their responsibility not to divulge information they may learn for their own companies, which would give them a competitive advantage in future procurements.

3.4 Disclosure Process If at any time you feel you may have a conflict of interest (either real or perceived), you should discuss the matter with your immediate supervisor, Human Resources, Contract Compliance Section, or the City Attorney’s Office. Information reported will be kept confidential to the extent allowable by law. Contract Compliance Hotline


In addition, a Contract Compliance Hotline has been established for the anonymous reporting of any known or perceived conflicts of interest, or code of conduct violations. Employees are encouraged to use this resource if they are not comfortable discussing contract compliance matters with the internal POLB resources listed above. The telephone number is 562-283-7980.

3.5 Recap In summary, all individuals involved in contracting activities must:

Conduct themselves in a professional manner, refraining from allowing outside relationships to influence business decisions.

Be aware that in a political environment, perceptions are as important as reality. Involve your division’s management and the City Attorney’s Office when questions arise regarding

acceptable or unacceptable behavior when dealing with contractors.




Chapter 4:

Service and Labor Contracts

Pre-Solicitation through Contract Award

4.1 Background POLB’s requirements for service contracts can vary greatly in terms of technical complexity, cost, duration and number of resources required. For example, a division may have a need for a single data entry specialist on a short-term basis, while conversely, there may be a long-term need for a project team of highly skilled engineers to perform design reviews in conjunction with a public works construction project. RFP and RSOQ Solicitations Requests for Proposals (RFP) or Requests for Statements of Qualifications (RSOQ) are used to obtain an understanding of a service provider’s qualifications with regard to a specific, or a broad scope of services. Both may contain many of the same elements such as asking for a firm’s qualifications and experience on similar projects. However, an RFP typically has a more detailed scope and requires a more thorough response to the specific Port need, including experience of key personnel, schedule, deliverables and pricing. Conversely, an RSOQ typically requests firms to provide their capabilities with respect to a general scope of services and are useful as an initial screening mechanism to create a shorter list of firms to request more detailed proposals from, including cost proposals, or as a basis for selecting on-call contractors. Qualifications Based Selection Contracts for professional services in areas that require a substantial amount of expertise and judgment should be based on a contractor’s demonstrated competence and professional qualifications as well as price. This method of selection is commonly referred to as “Qualifications Based Selection,” or QBS. Under a QBS model, selection criteria can be weighted more heavily on a firm’s competence and qualifications rather than on price. In high-profile or high-risk matters, getting the best possible professional advice may leave price as only a secondary factor, so long as it is determined to be fair and reasonable. As a general rule of thumb, QBS should be used only to obtain services from specialists who will perform tasks which Port staff ordinarily are not qualified to execute. As discussed in section 2.2, the California Government Code Sections 4526-4529 provide guidance on some services which may be based on QBS. Note that this is not an all-encompassing list of services. Contractor vs. Employee When contracting for services, staff should be cautious to ensure that the contractor is in fact treated as an independent contractor and not as an employee. The IRS general

Contractors who

provide services which

require a significant

amount of expertise

and judgment are

considered

professional services

(e.g., Architecture and

Engineering services).

Selection should be

based on

demonstrated

competence and

qualifications as well

as price.


rule is that an individual is an independent contractor if the person for whom the services are performed has the right to control or direct only the result of the work, and not what will be done, how it will be done, or the method of accomplishing the result. Other factors to consider when determining whether an individual is an independent contractor or employee are outlined below. No single factor (or any combination thereof) provides absolute evidence of the individual’s status, but rather a combination of all factors must be weighed that illustrate the degree of control and independence each party possesses.

Who controls the details of how the work is performed?

Who provides the workspace and tools to perform the work?

Who sets the working schedule?

Does the contractor maintain a separate place of business?

How is the contractor compensated? Independent contractors are usually paid on a time and material, or deliverable basis.

Does the contractor have any decision making or approval authority, or do they supervise bona-fide employees? Consult with the Human Resources Division if you have any questions or concerns regarding the status of a contractor. Any contractor who is reasonably expected to report to work at the port everyday for a period exceeding six months, is required to obtain a Department of Justice LiveScan background check and identification badge. Examples of Service / Labor Related Contracts (non-exclusive)

4.2 Pre-Solicitation Phase Preliminary Decisions and Risk Assessment Once the need for a service has been identified, staff should work through the following preliminary decision tree:

1. Is the required expertise available in-house?

Architectural Appraisal Services IT Technical Project

Management

Engineering Economic Analysis Software Development

Environmental Planning Feasibility Studies Database Administration

Construction Management Foreign Trade Representatives Public Relations Services

Accounting Services Grant Writing Strategic Planning

Traffic Planning Study to Identify New Market

Opportunities

Training

Aerial Photography Organizational Development Event Planning

Any contractor who is

reasonably expected

to report to work at

the port every day for

a period exceeding six

months, is required to

obtain a Department

of Justice LiveScan

background check

and identification

badge.


2. Is the required service available from one of POLB’s or COLB’s existing service agreements?

3. Should an existing database of contractors be utilized to obtain proposals or should a new solicitation be published? If the answer to question one is yes, document the rationale for hiring an outside contractor in a memo to the contract file. If the answer to question two is yes, staff should determine whether it is more efficient and cost effective to “piggy-back” on an existing service agreement, or to generate a new solicitation. Refer to section 2.9 for more detailed information on piggy-backing on City or other government agency contracts. For question three, staff may choose to maintain a contractor database with basic information such as service categories provided. As a best practice, it is recommended that a pre-qualification process be followed to form this database. For professional services contracts under $100,000, staff may issue the solicitation directly to firms within the database; however, firms identified to receive the solicitation must be purely based on their qualifications and not chosen based on personal bias. Purchases expected to exceed $100,000, must also be advertised on www.polb.com. For complex and/or high dollar value projects, it is recommended that a risk assessment be performed in order to have a complete understanding of the unique risks a given procurement may introduce. If internal resource constraints exist, staff may consider hiring a third party firm to assist with the effort. Factors to consider include:

Staff’s ability to develop performance measurements and monitor the contractor’s performance;

POLB’s relative exposure to harm or loss if the task is performed by staff or a contractor;

Staff’s ability to enforce cost controls;

Staff’s ability to enforce (and the contractor’s ability to meet) deadlines;

Whether the contractor’s performance will affect core port operations, and the severity of impact in the event the work is not performed satisfactorily; and

The likelihood that the proposed work will satisfy POLB’s needs. Ultimately, if a decision is made to generate a new solicitation after working through the above steps, a contract owner within the contracting division should be identified. Although this individual need not necessarily perform each task during the solicitation and award process, he/she has the overall responsibility for ensuring the required steps are carried out completely, accurately and timely and are appropriately documented. Scope of Work Development

A scope of work should be developed early on and included in the RFP or RSOQ. Where possible, the scope should be specific and measurable so as to solicit

A contract owner

should be identified

and be responsible for

ensuring all required

contracting steps are

carried out.


thorough responses and to have a clear understanding of when project phases and tasks are complete. The scope should also be broken down into logical milestones with deliverables, targeted completion dates and progress payments or budgets tied to each. If it is not possible to develop a specific scope at the time the solicitation document is created, staff should work with the chosen contractor to refine it for inclusion in the final contract. Except in the case of an on-call contract, the prospective contractor(s) shall submit a project schedule for completing each milestone of the project upon which the contract owner shall approve prior to commencement of the contract. If POLB’s need is not sufficiently defined to allow the preparation of a specific scope, consider issuing an RSOQ without pricing to better refine the requirements. Once developed, the scope of work must be submitted to the Risk Management Division who will then determine the insurance requirements that should be included within the final RFP or RSOQ. Risk Management will draft the contractual insurance language (see Appendix 1, Form 1-A for illustration purposes only) and provide it to the requesting division. In addition, a completed SBE-1 form must be submitted to the SBE Program Office to determine small business participation goals. The goal information should be included within the solicitation document. Rough Order of Magnitude (Cost Estimate) Development Where feasible, it is recommended that a Rough Order of Magnitude (ROM) be developed prior to issuing the solicitation which considers direct labor costs, reimbursable expenses and any contingency amount. The ROM is useful to gain an early understanding of the required method of solicitation, approvals and budgetary implications. It is recommended that POLB staff develop a conservative estimate as the solicitation requirements vary based on the actual contract amount, not estimates. For example, if the estimated cost for a particular service is $90,000, it may be prudent to conduct a formal solicitation process in the event all proposals come in over $100,000. Based on the estimated cost and type of service needed, the required solicitation method should be followed as outlined in Chapter 2. Develop Standard Scoring Criteria Create scoring criteria, along with individual weightings of each element, which will be used to evaluate the proposals. The criteria should be included in the solicitation documents so that all interested proposers are aware of how the proposals will be scored, however, be conscious of including the weightings, as this may lead proposers to focus a disproportionate amount of time on the most heavily weighted elements. Examples of commonly used scoring criteria include:

Understanding of the project requirements Demonstrated capabilities to provide the required service

For specific projects, it

is critical to develop a

specific and

measurable scope of

work. Where feasible,

the scope should be

separated into project

milestones with

deliverables, target

completion dates and

payments tied to each.


Prior experience on similar projects Qualifications of proposed project team members Fee Schedule/Cost Competitiveness Project Management Approach Quality Assurance/Quality Control SBE/VSBE Program Commitment

As a guide, sample evaluation forms have been provided for your convenience in Appendix 1, forms 1-C and 1-F. However, there is no requirement to use these sample forms. The overall objective of an evaluation form is to ensure that the decisions of the selection committee are documented and defensible throughout the solicitation process. Each division is free to develop or enhance its own division-specific forms as long as the forms achieve this objective. It should be noted that a conflict of interest statement as displayed on Appendix 1-C must be included on the individual evaluation forms for the written proposal which must be signed by each staff member of the selection committee to certify they do not have any conflicts. Refer to section 4.4 “Form a Selection Committee” for additional guidance. NOTE: Unlike the City, it is not permissible for POLB to utilize a local preference criterion when evaluating proposals from firms based in the City of Long Beach. Tidelands Funds are state funds which cannot be used for local preferences. Prepare the Solicitation Document For formal contracts valued over $100,000, competitive procedures are required. The next step in the contract process is to develop the solicitation document. Elements of an effective formal solicitation document include the following: 1. Scope of work, which includes such items as the contractor’s work responsibilities, deliverables, and

project time limits and milestones (the level of detail will vary based on project complexity and value, however, a focus should be placed on making the scope defined and measurable).

2. The required proposal elements, format, form (electronic vs. hardcopy) and the number of copies to be provided (if applicable). It is recommended that proposers be instructed to print proposals on recycled paper.

3. Time, place and deadline for proposal submission. 4. Trade references. 5. A timeline for receipt of proposals and contractor selection. 6. Proposal evaluation criteria. 7. Consider requesting proposers to submit their technical and cost proposals in separate envelopes for

professional services where cost considerations are secondary in importance to obtaining the most qualified provider.

8. Contact information for inquiries proposers may have on the solicitation document (e.g., email or phone number)

9. Sample contract template with standard terms and conditions. 10. Insurance requirements, including POLB endorsement forms and notification that proof of required

insurance must be submitted within 30 days of contract award. 11. SBE program requirements, if applicable. 12. Contractor Certification Form (see Appendix 1, form 1-G) with instructions that the form must be

returned along with the proposal. This form asks firms to acknowledge that they have read, understand and agree to abide by the insurance requirements and standard contract terms and conditions, except as otherwise noted in the space provided.


13. Request proposers to submit evidence with their proposal that they are licensed to conduct business in California and that they must submit evidence of a Long Beach business license if awarded the contract. 14. Request for proposers to provide a list of the assumptions (if any) their proposal is based on. 15. Notification to proposers that they may be required to undergo a financial review if they have certain self-insured retention, deductible levels and / or are performing high-risk work and that copies of audited financial statements may be required. 16. A statement that any attempt to lobby members of the BHC, City Council, or POLB / COLB staff between the time a solicitation is released until the announcement of contract award, may result in disqualification from the selection process. 17. A statement informing proposers that information submitted is subject to public records requests. Refer to Appendix 4 form 4-C for a Solicitation Document Checklist which can be used for your specific need. Develop the Advertisement Plan Next, develop the advertising plan to increase the likelihood that qualified service providers will become aware of and have a fair and equal opportunity to participate in the proposal process. The number of different media chosen to advertise should commensurate with the technical complexity and value of the project, as well as the number of competitors within the given industry that provide the required service(s). The following media may be considered when creating the RFP / RSOQ advertisement plan:

POLB’s external website (www.polb.com)

Trade publications

Newspapers

eBid Board

The Network

Direct electronic mailings. To aid in generating a mailing list and as a leading practice, each division should consider maintaining a database of qualified contractors, by trade, to aid in identifying the population of RFP / RSOQ recipients. The database should be updated periodically to provide a reasonable assurance that interested service providers are included. EDRMS may be able to centralize this information in the future. For service contracts that are expected to stay within the informal value limit of up to $100,000, it may be sufficient to issue a brief written scope-of-work to firms on a pre-qualified roster to solicit proposals. However, if it is reasonably likely that the contract value may exceed this limit through subsequent amendments, consideration should be given to following the formal contract bidding procedures.

At a minimum, any

procurement estimated

to exceed $100,000

should be advertised on

www.polb.com.

http://www.polb.com/



4.3 Solicitation Phase Advertise the Procurement Advertise the RFP / RSOQ for a sufficient amount of time to allow interested firms to understand POLB’s needs, ask clarification questions, and to develop thorough proposals. A list of all firms that obtained the RFP or RSOQ should be maintained in order to facilitate any required future correspondence. Questions received from interested parties should be logged and responded to by the contract owner once a reasonable number have been accumulated. Responses should be provided to all RFP / RSOQ holders via addendum within a reasonable amount of time ahead of the proposal due date. The addendum and responses should also be posted on POLB’s website for public viewing. Pre-Proposal Meeting A pre-proposal meeting is an effective means to emphasize important information in the RFP / RSOQ and to share additional details on POLB’s needs with interested service providers. It also allows businesses to network and identify sub-contracting opportunities. Consideration should be given to holding a pre-proposal meeting if the complexity of the project warrants it; however, neither the meeting nor attendance of proposers is mandatory. The following best practices should be followed if a pre-proposal meeting is held:

Use a sign-in sheet, make copies and distribute to all those in attendance.

Prepare and distribute a meeting agenda.

Invite a representative from the SBE program and Risk Management Division to provide an overview of the small business participation and insurance requirements.

Document questions received from participants. If at any time staff is uncertain on the best response to a posed question, inform participants that a response will be provided in a future RFP / RSOQ addendum. During in-person visits, proper precautions should be taken in providing responses that are within the defined scope of the solicitation document and do not provide competitive advantage to the visiting party over that of other proposers. POLB is not obligated to answer questions at the meeting.

Any costs incurred (e.g., travel) to attend the pre-proposal meeting should be at the contractor’s expense and may not be invoiced on future or current projects.

4.4 Proposal Receipt and Evaluation Phase Receipt of Proposals Proposals should be logged in and time / date stamped when received and in the case of electronic submissions, a copy of the e-mail retained to support the time / date of receipt. Once the deadline has passed, all proposals should be opened and reviewed for completeness. In situations where only one proposal is received, staff should first determine whether the firm is qualified to perform the required work. If so, a price analysis should then be performed to determine whether the proposed cost is fair and reasonable. Finally, the marketing effort should be revisited to ensure that sufficient time was allowed for proposal submittals, that the scope was not too vague, or conversely too specific / restrictive and that the desired audience was reached through the advertising approach.


Remember, POLB always reserves the right to reject all proposals and issue a new solicitation at a later date. Form a Selection Committee Form a selection committee to evaluate the written proposals / Statement Of Qualifications. The committee composition guidelines below may be used as a starting point; however, actual composition could vary based on the unique characteristics of a given project. For example, a project that is funded jointly by the POLB and another agency (e.g., POLA, CALTRANS) may warrant including a non-POLB committee member from that agency.

At least three individuals with requisite knowledge of the given project. An odd number is suggested to prevent a tie situation.

A member of management (manager level or higher), if appropriate (e.g., experience would benefit the selection).

A cross-functional committee member from a division outside of the one that will primarily benefit from the contractor’s services, if appropriate. While forming the committee, have an up-front discussion with each committee member to define what constitutes a conflict of interest (e.g., past employment, financial ownership, family relationships) and to determine whether they have potential conflicts with any of the firms that submitted a proposal. If identified and depending on the nature of the conflict, the employee may be precluded from participating in the proposal evaluation, or any subsequent contractor management / supervisory duties. Each chosen committee member must then certify that they do not have any conflicts by completing and signing the "conflicts of Interest" section included on the scoring sheets (see Appendix 1, Form 1-C for a sample scoring sheet—Written Proposal Evaluation Form). Evaluate the Proposals Each committee member must independently evaluate all proposals using the same, pre-set scoring criteria and weights on the sheets provided. A comment section on the scoring form is recommended for each scoring criteria in order to provide a basis for each scored element. If included, committee members should remain concise and only document items that support their position and refrain from extemporaneous comments (such as overly expressive personal opinions), as they will become public records once the contract is awarded. To ensure a fair and complete evaluation is conducted, the contract owner should perform a thorough analysis of each cost element across all proposals to identify any potential indirect/hidden costs which may not be expressly highlighted in the proposals. For example, two firms proposing on a technology system implementation may require significantly different levels of Port staff time which may not be spelled out, but when factored in, could significantly impact the “true” cost. Note: this comparison may not be possible in situations where we ask contractors to propose on a general scope of work and to demonstrate their technical expertise and innovation.

POLB reserves the right

to reject all proposals

and issue a new

solicitation at a later

date, if it is determined

to be in the Port’s best

interests.

Each selection

committee member

must disclose whether

they have any conflicts

of interest with the

proposing firms.

When evaluating

proposals for

professional services,

the technical proposals

(i.e., qualifications)

should be evaluated

independently of the

cost proposals.

If the primary basis for

selecting a contractor is

the technical expertise

of one or a few

members of a proposed

project team, then the

contractor should be

required to obtain prior

written approval from

POLB for any proposed

resource substitutions

or replacements.


Upon scoring completion, tally the results and calculate the written proposal rankings. The evaluation committee should then meet to discuss the results and determine next steps that may include conducting interviews with the top ranked firms. Refer to Appendix 1 forms 1-C and 1-F for sample written proposal scoring forms. Conduct Interviews / Demos (optional) The selection committee may choose to invite a short list of firms for in-person interviews and / or product demos to further understand the firm's capabilities. It is important that the same selection committee that evaluated the written proposals also participate in the oral interview / demo evaluation. As with the written proposals, standard criteria and a list of questions to ask of each interviewed firm should be developed so as to ensure a fair and consistent end-to-end evaluation process. In addition, an interview / demonstration agenda should be created and provided to the proposers in an effort to drive consistency in the format and content of the presentations, as well as to control the overall timing. As a general guideline, time should be allotted for the firm to make a presentation on their qualifications and approach, for the panel members to ask their pre-determined questions and for open Q&A. Refer to Appendix 1 forms 1-D and 1-E for sample oral presentation / interview scoring forms. Make the Final Selection The contract owner should combine the written proposal and oral interview scoring forms and tally the results. At this point, it is recommended to perform reference checks on the top contractor(s) to gain an understanding of their past performance on projects of similar size and scope. Reference checks should be based on a standard list of questions relative to the scope of work and retained in the solicitation file. Once the results have been combined and reference checks performed, the evaluation committee should meet again to come to a final decision. In situations where the team cannot come to a consensus, it may be necessary to have additional discussions with the preferred contractor(s) for further clarification. Finally, if a tie situation results where two or more proposers are determined equally qualified to perform the work, then cost considerations may be the primary determining factor for final selection.

4.5 Contract Award Phase Conduct Negotiations Staff should evaluate whether the cost of the preferred provider(s) is / are fair and reasonable and request the contractor(s) to improve any aspects of their proposal that staff is not satisfied with (e.g., rate sheet, sub-contractor multipliers, other mark-ups) to obtain the best possible value for the Port. If an agreement cannot be

The preferred

consultant’s cost

proposal should be

evaluated and a

determination made as

to whether

negotiations are

necessary.


reached, then staff may consider beginning negotiations with the second ranked contractor and so on, until a mutually beneficial agreement is reached. Once decided, the chosen contractor should be requested to finalize and provide evidence of the required insurance documents within 30 days of contract award notification. Notification and Debriefings Prior to contract execution, a letter should be sent to all participating firms as a courtesy to thank them for submitting a proposal. It is important to keep documentation to support staff’s decision readily accessible in the event that a proposer requests a debriefing. If a debriefing is requested, it should focus solely on the requester’s proposal and the selection process and NOT include a detailed comparison of the finalists’ proposals. A brief summary of facts (including the name of the firm, individual(s) who staff met with, and any action items) should be documented and placed in the contract file. Confirm the contractor is licensed to conduct business within the State of CA by visiting the Secretary of State website and printing a copy of their certification (may not be necessary if contractor submitted evidence with their RFP / RSOQ). Document the Solicitation and Award Summary In order to provide evidence that a fair, equitable and transparent process was followed, the key facts, events and decisions leading up to contract award must be documented for every procurement. To aid in efficient and consistent documentation, a Procurement Summary Form (see Appendix 1 form 1-B) must be completed and posted to EDRMS prior to contract preparation and requesting BHC approval (in the interim prior to EDRMS, email a copy to the Contract Compliance Section). It is recommended to complete this form at least one week in advance of taking the item to the BHC. The purpose of the form is to provide a single document that supports the contract solicitation process and award decision, as well as a means for an independent reviewer to quickly understand other pertinent information. Refer to Appendix 1 form 1-B for the Procurement Summary Form and Appendix 4 forms 4-A and 4-E respectively for a “Quick Start Checklist #1 – Solicitation through Contract Award” and “Service and Labor Contracts Pre-Solicitation through Contract Award” flow chart which can help guide the process. Refer to Chapter 7 for detailed Contract Preparation procedures.

Confirm the selected

contractor is licensed

to conduct business in

the State of California.

A Procurement

Summary Form should

be completed prior to

requesting BHC

approval, to document

and support staff’s

decision-making

process.


Chapter 5:

Construction Contracts


5.1 Background As a public entity, POLB is obligated to follow the regulations set forth for public works construction contracts. Public works construction contracts are governed primarily by the City of Long Beach City Charter, the Long Beach Municipal Code and the California Public Contracts Code (“PCC”). The State Legislature enacted the PCC to achieve the following objectives:

1. To clarify the law with respect to competitive bidding requirements. 2. To ensure full compliance with competitive bidding statutes as a means of

protecting the public from misuse of public funds. 3. To provide all qualified bidders with a fair opportunity to enter the bidding

process, thereby stimulating competition in a manner conducive to sound fiscal practices

4. To eliminate favoritism, fraud, and corruption in the awarding of public contracts. (PCC Section 100) The following procedures should be followed when procuring public works construction contracts greater than $100,000. These same procedures should also be followed when procuring public works construction contracts less than $100,000 with the exception that it is not necessary to advertise the procurement in a newspaper of general circulation, to hold a public bid opening meeting, or go to Committee and Board for approval.

5.2 Pre-Solicitation Phase Specification and Notice Inviting Bid Development For all construction projects, regardless of dollar value, the pre-solicitation phase begins with the development of specifications and an engineer’s cost estimate by the requesting division. The standard specification template approved by the City Attorney’s Office must be used as a starting point. Once the specification has been developed, an electronic comparison back to the template must be prepared to facilitate subsequent reviews and approval by the City Attorney’s Office. In order to ensure objectivity, any third party firm that was involved in developing the specification will not be allowed to bid on the project. Once the specifications have been developed, they should be forwarded to Risk Management to determine insurance requirements and the SBE-1 form should be completed and forwarded to the SBE Program Office in order to determine SBE participation requirements. Requirements are project specific and all contractors must comply with these requirements. Risk Management will draft the contractual

“It shall be unlawful to

split or separate into

smaller work orders or

projects any project for

the purpose of

evading…competitive

bidding.” – PCC Section

22033

Engaging Risk

Management and SBE

Administration early

and frequently in the

solicitation and risk

assessment process will

minimize potential

delays due to insurance

and SBE issues down

the road.


language which details the insurance requirements and return it to the requesting division. This language must be incorporated into the construction specification prior to forwarding the specification to the City Attorney’s Office (see Appendix 1 form 1-A for an example). All construction specifications and plans incorporating the contractual insurance language drafted by Risk Management must be submitted to the City Attorney’s Office for review and approval prior to advertising the Notice Inviting Bids (“NIB”) regardless of the dollar amount. An NIB should also be created along with the specification documents. According to the PCC, the NIB must be published at least 14 calendar days before the opening of bids. If the NIB is to be mailed to construction trade publications, it should be mailed at least 30 days prior to the bid opening. The purpose of these timeframes is to provide qualified bidders with ample awareness and a fair and equal opportunity to participate in bidding. Furthermore, the following should be included along with the technical construction specification:

1. A statement that any attempt to lobby members of the BHC, City Council, or POLB / COLB staff during the evaluation process to influence selection prior to making a recommendation for contract award, may result in disqualification from the bidding process.

2. A list of POLB’s assumptions in the specification (if any). 3. Notification to bidders that they may be required to undergo a financial

review if they have certain self-insured retentions, deductible levels and / or are performing high-risk work. Copies of audited financial statements will be required.

4. Sample contract template with standard terms and conditions. 5. SBE program requirements, if applicable. 6. A list of deliverables and dates driven by funding requirements, if applicable

(e.g., grant deadlines). 7. Contractor Certification Form (Appendix 1 form 1-G) with instructions that

the form must be returned along with the proposal. This form asks firms to acknowledge that they have read, understand and agree to abide by the insurance requirements and standard contract terms and conditions. Refer to Appendix 1 for the form template. The requesting division should provide a mechanism for interested bidders to submit clarification questions in writing in advance of the pre-bid conference. This may be accomplished by setting up a dedicated email address. POLB should respond in writing via addenda to the solicitation document posted on polb.com. Risk Assessment As a best practice, it is also recommended to perform a risk assessment or long-term, complex and high-value projects. Where a risk assessment is performed, consult with Risk Management and consider issues such as:

Unknown or unstable site conditions

Regulatory issues likely to impact project specifications

Potential labor disputes

Risk Management will

draft the specific

insurance language that

must be included in the

specification prior to

the City Attorney’s

review.

Prior to advertising the

NIB, the specifications

should be provided to

Risk Management, SBE

and the City Attorney’s

Office.


Safety risks

Financial risks

Specific assumptions POLB is making that may increase risks

Other special circumstances which may increase risks (e.g., if a joint project with another agency) The outcome of a risk assessment should be a risk response plan. There are four types of risk response plans:

1. Avoidance – find a work around so that the risk never occurs. 2. Acceptance – decide to live with the consequences if the risk occurs. 3. Mitigation – deal with the risk by developing a contingency plan. 4. Transference – find another party to share the risk or underwrite it.

In general, risk increases over time. Therefore, projects with the longest timeframe also have the greatest risk. Develop the Advertisement Plan The following media and methods may be considered when creating the NIB advertising plan:


A newspaper of general circulation (mandatory if greater than $100,000)

Trade publications

eBid Board

The Network

Direct electronic mailings

5.3 Solicitation Phase Advertise the NIB The NIB should be advertised for a sufficient amount of time in order to enable interested bidders to understand the specifications and ask clarification questions. Once the NIB has been advertised, the requesting division should track which firms obtained the plans and specifications by developing a plan holders list. If questions are submitted, the answers to those questions, along with any revisions, must be disseminated to all plan and specification holders via addendum, as well as published on the POLB website in a timely manner. Any revisions to bid documents must also be posted on the POLB website as well as provided to all plan and specification holders. Pre-Bid Conference Although attendance at a pre-bid conference or site visit is optional for contractors (unless required by POLB), holding a pre-bid conference is mandatory for public works contracts as part of the Long Beach Municipal Code 2.86.030. The purpose of the pre-bid conference is to provide bidders the opportunity to familiarize themselves with the project and contract requirements. The following best practices should be followed when conducting a pre-bid meeting:

Engaging Risk Management and

SBE Administration early and

frequently in the solicitation

process will minimize delays due to

insurance and SBE requirements

down the road.

Expenses for in-person visits to

POLB for the pre-bid conference,

site visit, etc., must be borne solely

by the bidder.

At a minimum, any


to exceed $100,000


www.polb.com.

Holding a pre-bid

conference is

mandatory for public

works construction

projects.






Invite a representative from the SBE program (if applicable) and Risk Management Division to provide an overview of the small business participation and insurance requirements.

Document questions received from participants. Post responses to questions asked on polb.com via addenda to the solicitation document.

If at any time staff is uncertain on the best response to a posed question, inform participants that a response will be provided in a future addendum. During in-person visits, proper precautions should be taken in providing responses that are within the defined scope of the solicitation document and do not provide competitive advantage to the visiting party over that of other proposers. POLB is not obligated to answer questions at the meeting.

Any costs incurred (e.g., travel) to attend the pre-bid meeting or other events prior to award of the contract should be at the contractor’s expense, and may not be invoiced on current or future projects.

5.4 Bid Receipt and Evaluation Phase Receipt of Bids All bids when received must be logged in and time / date stamped. Any bids received after the predetermined due date and time must be returned unopened to the bidder. Bid Evaluation Bids must be opened in a public meeting and the contents of each bid and the price read aloud. The three lowest bidders must be announced including the apparent lowest bidder. The three lowest bidders should be reminded that the SBE/VSBE Commitment Plan (“CP”) is due one business day after the bid opening or the bid is deemed non-responsive. If the bidder’s CP does not demonstrate intent to meet the combined SBE/VSBE goal, the bidder must submit its Good Faith Effort (“GFE”) documentation on the third business day following the bid opening. In the event that the only bids received are significantly higher than the “Engineer’s Estimate”, all bids may be rejected through a Board action to reject all bids. An evaluation should be performed to identify the reasons which resulted in this condition and presented to the BHC. The scope of work should be reviewed prior to issuance of a new NIB to ensure that it is properly defined and reasonable. Subsequently, the project may be re-bid. Upon completion of the public bid opening meeting, tabulate the bid results by line item and summarize key elements of the bids received. All bids must be analyzed for responsiveness including SBE/VSBE commitments and irregularities. After a thorough analysis, if the apparent lowest bidder is deemed to have the lowest responsible bid, staff may recommend to the BHC that the contract be awarded to that entity. If not, the next lowest bidder can be awarded the contract.

POLB staff must not

attempt to negotiate

with any construction

contractor prior to

contract award.

All public works

construction contracts

must be awarded to the

lowest responsible

bidder.

- PCC Section 22038

A bidder who requests

POLB to waive or

change certain

contractor

specification terms is

considered a non-

responsive bidder.

Aside from

straightforward

mathematical

computation errors, bid

irregularities must be

reviewed by the City


determine the bid’s

responsiveness.


Bid Protests If a bid protest is received, contact the City Attorney’s Office. Generally, the procedure includes prompt notification of affected bidders of the positions taken by other bidders, prompt access to copies of the bids by anyone requesting such access and an opportunity to be heard when staff takes a recommendation to the relevant BHC committee.

5.5 Contract Award Phase Upon staff’s completion of the bid analysis, all bids must be presented to the appropriate BHC committee. This Board action is called “Notification of Bids Received.” After the Notification of Bids Received, the low bid must be presented to the BHC for recommendation and conditional approval of contract award. Upon BHC approval, contract preparation can begin. Within 30 days of the notification of conditional contract award, the winning bidder must submit:

Performance bond

Payment bond

POLB Special Endorsements forms for each insurance coverage required or a certified full and complete copy of each policy required endorsed with the POLB required terms.

Contract signed by the contractor All construction contracts are conditionally awarded, meaning that the award is not final until the contractor has fully met all conditions of the contract (e.g., finalized insurance) and the Executive Director has signed the contract..

Notice to Proceed (“NTP”) A Notice to Proceed (NTP) and all related payments may not be issued until all award conditions have been satisfied and the requesting division is provided with original contracts signed by the Executive Director. The Executive Director will not sign any contract without a completed Approval of Insurance Documents Memo (see Appendix 2 form 2-F) stamped approved-as-to-sufficiency by Risk Management and approved-as-to-form by the City Attorney’s Office. Construction projects often have tight timelines with significant liquidated damages for missed deadlines. Consequently, the NTP should typically be issued within 30 days after all contract award conditions have been satisfied and the original contracts have been signed by the Executive Director, in order to limit avoidable costs and time delays. The reason for any delay in issuance of the NTP beyond this timeline (whether caused by a contractor delay or decision made by staff to hold the NTP) should be documented and included in the contract file. POLB reserves the right to award the contract to the second lowest bidder should the low bidder fail to satisfy all conditions within the timeframes stated in the specifications or Notice of Conditional Award. Document the Solicitation and Award Summary In order to provide evidence that a fair, equitable and transparent process was followed, the key facts, events and decisions leading up to contract award must be documented for every procurement. To aid in efficient and consistent documentation, a Procurement Summary Form (appendix 1-B) must be completed and posted to EDRMS prior to contract preparation and requesting BHC conditional award of contract (in the interim prior to EDRMS, email a copy to the Contract Compliance Section). It is recommended to complete this form at least one week in advance of taking the item to the BHC. The purpose of the form is


to provide a single document that supports the contract award decision as well as a means for an independent reviewer to quickly understand the pertinent information. Refer to Appendix 1 form 1-B for the Procurement Summary Form and Appendix 4 forms 4-A and 4-F respectively for a “Quick Start Checklist #1 – Solicitation through Contract Award” and “Public Works Contracts Pre-Solicitation through Contract Award” flow chart which can help guide the process. Refer to Chapter 7 for Contract Preparation Procedures.

5.6 Pre-Qualification Process (optional) For construction projects of a high degree of complexity or dollar value, a pre-qualification process may be considered prior to issuing a NIB. The purpose of the pre-qualification process is to identify contractors that meet the minimum requirements permitted for qualification to bid. Pre-qualification requires that each prospective bidder for a project complete and submit a standardized questionnaire and financial statements, including a complete statement of the prospective bidder’s experience in performing public works projects similar to the subject project. Financial statements are not required if the contractor is classified as an SBE under Section 14837 of the Government Code. The State of California Department of Industrial Relations (“DIR”) has developed a model that should be used as a starting point for developing a pre-qualification questionnaire. See Appendix 5 (5-D Useful Web Links) for a link to the DIR sample pre-qualification questionnaire and guidelines. The questionnaire may be modified on a case-by-case basis, as necessary, as long as all prospective bidders receive exactly the same questionnaire. The City Attorney’s Office must review the final questionnaire prior to releasing it to prospective bidders for completion. The questionnaire and financial statements are not public records and are not open to public inspection. However, the names of the contractors applying for pre-qualification status are public records subject to disclosure. When all questionnaires have been completed and returned, the answers will be reviewed by the requesting division. The answers to the questionnaire must be verified under oath in writing by the bidder. Financial statements submitted must be reviewed by the Finance Division. A contractor’s pre-qualified status is valid for one year from the date they were determined to be pre-qualified. Upon completion of a pre-qualification process for a specific construction project, only firms who have been pre-qualified as a result of that process will receive the NIB for that project. The requesting division should be cognizant of the expiration date of the pre-qualification to ensure that all solicitation and contract award activities are completed well in advance of the pre-qualification expiration date. For further details, pre-qualification requirements are discussed in PCC Section 20100-20103.6.

A statutory pre-

qualification process is

set forth in Section

20101 of the PCC.

Data contained in the

pre-qualification

questionnaire is not

public record and not

subject to disclosure. –

PCC Section 20101


Chapter 6:

Materials, Supplies and Equipment Contracts

Pre-solicitation through Contract Award

6.1 Background POLB’s procurement of materials, supplies and equipment (i.e., “goods”) may range from high-value capital assets such as sophisticated monitoring equipment or heavy duty machinery, to recurring purchases of low-value goods, such as janitorial or office supplies. In addition, each procurement can vary greatly in complexity from being simple “off-the-shelf” good(s) that is / are shipped directly to POLB, to items that require installation, training, have a warranty or on-going maintenance components. Each of these factors must be considered when determining the appropriate level of solicitation and whether to utilize a purchase order or contract. The most common solicitation documents used for the purchase of goods are Request for Quotations (RFQ) and Request for Proposals (RFP). RFQs are primarily used for purchases where the product specifications are well-defined and relatively straightforward. RFPs are useful for more complex procurements where POLB needs to understand factors beyond the capabilities and performance of the good(s) themselves, such as a providers’ approach, qualifications, compatibility issues, installation techniques or other technical aspects of a given project. POLB may “piggy-back” on other public agency contracts which have been competitively bid. Piggy-backing is a viable option when it is determined that economies-of-scale exist to the extent POLB would obtain better pricing than if contracting directly with a given supplier. Refer to section 2.9 for additional details. The following sections provide guidelines and procedures for new procurements. On-going purchases are often placed against existing Blanket POs or Direct POs, which must follow the procedures outlined below upon initial purchase.

6.2 Pre-Solicitation Phase Determine the Appropriate Competitive Bidding Approach Staff should first develop a cost estimate of the required procurement to identify the appropriate bidding and contract award procedures to follow. As discussed in section 4.2 (“Rough Order of Magnitude Development”), it is recommended that POLB staff develop a conservative estimate as the solicitation requirements vary based on the actual contract amount, not estimates. For example, if the estimated cost for a particular procurement is $90,000, it may be prudent to conduct a formal solicitation process in the event all proposals come in over $100,000. Highlights of the requirements are summarized below and are described in further detail throughout this chapter.

The overarching

principle for every

procurement is to

engage market forces

to the extent possible

and practicable, to

ensure POLB obtains

the best value for

expended public funds.


Procurements valued greater than $100,000*

Formal competitive bidding procedures required whereby written specifications, RFP, RFQ or a Notice Inviting Bids are advertised in a newspaper of general circulation.

Sealed bids are received and opened in a public meeting.

Purchase is made from the lowest responsible bidder.

Purchase must be approved-as-to-form by the City Attorney’s Office and a determination made as to whether a P.O. or contract is required. Procurements valued from $50,001 - $100,000

Informal competitive procedures permitted whereby a written scope of work, specifications, RFP, or RFQ are advertised or emailed to known suppliers and at least three written quotes are obtained. If three quotes cannot be obtained, documentation to support this should be placed in the contract file along with a record of the quotes received.

The purchase should be made from the lowest responsible bidder, with all factors being equal. A documented rationale should be on-file when the lowest bidder is not selected for contract award.

The Contract Compliance Section is a resource to determine if a P.O. or contract is necessary (refer also to section 2.5 for further guidance). Procurements valued less than $50,000

Informal competitive procedures are permitted and at least three verbal quotes should be obtained. If three quotes cannot be obtained, documentation to support this should be placed in the contract file along with a record of the quotes received.

The method for obtaining quotes may vary from phone calls or email. Written specifications, RFP, RFQ may be beneficial in certain situations, such as when the supplier base is unknown.

The purchase should be made from the lowest responsible bidder, with all factors being equal. A documented rationale should be on-file when the lowest bidder is not selected for contract award.

The Contract Compliance Section is a resource to determine if a P.O. or contract is necessary (refer also to section 2.5 for further guidance). * Exceptions: As outlined in section 2.2, the City Charter provides that any purchase of electronic data processing and telecommunications equipment may be based on competitive negotiations, as opposed to formal low-bid procedures. Prepare the Solicitation Document Either where required or deemed prudent, a written specification, RFP, RFQ should be developed which describes POLB’s need in sufficient detail so as to provide interested providers with a thorough understanding of the procurement requirements. Staff must avoid drafting specifications in a manner that refers to a particular manufacturer’s brand, part number, or other unique characteristics of a single

The specification

should not be so

narrowly defined to

the extent the pool of

interested bidders

could potentially be

limited.


provider’s product, unless compatibility issues exist. In addition, it may be necessary to conduct research to identify contractors that provide the required goods. Refer to section 4.2 for solicitation document contents. Develop the Advertisement Plan Formal (>$100,000) The following media should be considered when advertising the solicitation documents:

A newspaper of general circulation (mandatory)


Trade publications

eBid Board

The Network

Direct electronic mailings Informal (<$100,000) Where informal bid procedures are permitted, staff has more leeway in the level of competition introduced into the given procurement. For example, the formal procedures outlined above may be followed, advertisements may be placed in alternative media, the solicitation mailed / e-mailed directly to known providers, or quotes obtained via telephone calls. Consideration should be given to posting the procurement on www.polb.com. Obtain Necessary Reviews and Approvals For purchases that may involve sub-contracting opportunities and/or on-site labor being performed the draft specification, RFP, or RFQ should be provided to the following for review:

Risk Management – for a determination of the insurance requirements.

SBE Program – submit the completed SBE-1 form along with the solicitation documents for a determination of any SBE / VSBE goals. Note: Beyond the prime supplier potentially being an SBE, further participation opportunities will generally fluctuate with the value of the procurement. The solicitation documents should then be finalized with the insurance and SBE requirements. If a specification is a part of the solicitation, provide it to the City Attorney’s Office for review and approval-as-to-form prior to issuance.

6.3 Solicitation Phase Advertise the Procurement For formal contracts, the NIB should be advertised for a sufficient amount of time in order to enable interested bidders to understand the requirements and ask clarification questions. Once the NIB has been advertised, the requesting division should track which firms obtained the specifications. If questions are submitted, the answers to those questions, along with any revisions, must be disseminated to all plan and

At a minimum, any


to exceed $100,000


www.polb.com.

Provide the solicitation

documents with

finalized insurance and

SBE requirements to the

City Attorney’s office for

approval-as-to-form.







specification holders via addendum, as well as published on the POLB website in a timely manner. Regardless of the dollar value, it is recommended to maintain a list of firms who obtain the solicitation documents in order to facilitate future correspondence. Pre-bid Conference Conducting a pre-bid conference is mandatory if the purchase falls within the definition of Public Works project, although attendance is not required. Generally speaking, the purchase of materials, supplies, or equipment would be considered a Public Works project if any installation or construction is involved with the items being procured. If the purchase does not involve installation or construction, then conducting a pre-bid conference is recommended (but not mandatory) if the procurement is technically complex and / or high in value. The following best practices should be followed if a pre-bid meeting is held:



Invite a representative from the SBE program and Risk Management Division to provide an overview of the small business participation and insurance requirements.

Document questions received from participants.

If at any time staff is uncertain on the best response to a posed question, inform participants that a response will be provided in a future addendum. During in-person visits, proper precautions should be taken in providing responses that are within the defined scope of the solicitation document and do not provide competitive advantage to the visiting party over that of other proposers. POLB is not obligated to answer questions at the meeting.

Any costs incurred (e.g., travel) to attend the pre-bid meeting should be at the contractor’s expense, and may not be invoiced on current or future projects.

6.4 Bid Receipt and Evaluation Phase Bid Receipt and Evaluation Formal (>$100,000) Bids should be logged in and time / date stamped upon receipt and any bids received prior to the stated due date should be securely stored until public opening. Bids received after the predetermined due date should be returned unopened to the bidder. On the scheduled date, bids should be opened in a public meeting and the contents and price of each read aloud. The three lowest bidders must be announced including the apparent lowest bidder. In the event that the only bids received are significantly higher than a fair and reasonable estimate, it may recommended to the BHC that all bids be rejected and, if approved, the procurement re-bid. The specifications should be reviewed prior to issuing a new solicitation to ensure that it is properly defined and reasonable. Upon completion of the public bid opening, the requesting division must tabulate submitted bid results and summarize key elements of the bids received. All bids must be analyzed for responsiveness and bid irregularities. After a thorough analysis, if the apparent lowest bidder is deemed to be the lowest responsible bidder, the purchase can be made from that entity. If not, the purchase can be made from the next lowest responsible bidder.


Informal (<$100,000) Bids or quotes may be received at any time during the solicitation process. For example, verbal quotes may be received real-time over the phone, or written quotes may arrive in the form of e-mail or a written proposal. An evaluation matrix should be prepared to record all bids / quotes received and the elements comprising each should be analyzed to determine whether they meet POLB requirements. The record of received quotes should be placed in the contract file. A recommendation should be made to procure the goods based on the lowest responsible bid, with all factors being equal.

6.5 Contract Award Phase Determine if a Contract is Necessary As outlined in Chapter 2, the procurement of materials, supplies and equipment should generally be covered under the terms of a written contract, as opposed to a P.O., if any of the following are involved with the purchase:

On-site training.

Installation by the manufacturer, distributor or authorized representative. Essentially anyone other than a POLB employee.

On-going maintenance will be required to be performed on-site. In addition, all purchases greater than $100,000 must be approved by the City Attorney’s Office and a determination made if a contract is necessary. If there is any doubt, staff should work with the Contract Compliance Section and / or City Attorney’s Office to determine the appropriate contracting mechanism. If it is determined the procurement does not require a contract, a hardcopy of the PO should be printed and approved according to established authority limits, as follows:

$1-$50,000 must be approved by the Division Director

$50,001-$100,000 must be approved by the Executive Director. Upon approval, the PO should be scanned and retained electronically in EDRMS for future reference. Document the Solicitation and Award Summary In order to provide evidence that a fair, equitable and transparent process was followed, the key facts, events and decisions leading up to contract award must be documented for every procurement. To aid in efficient and consistent documentation, a Procurement Summary Form must be completed and posted to EDRMS prior to contract preparation and requesting BHC approval (in the interim prior to EDRMS, email a copy to the Contract Compliance Section). It is recommended to complete this form at least one week in advance of taking the item to the BHC. The purpose of the form is to provide a single document that supports the contract solicitation process and award decision, as well as a means for an independent reviewer to quickly understand other pertinent information.

Materials, supplies and

equipment purchases

should be covered

under the terms of a

written contract if any

of the following are

involved with the

purchase – on-site

training, installation,

or on-going

maintenance. In

addition, purchases

that exceed $100,000

must be reviewed by

the City Attorney’s

Office to determine if a

contract is necessary.


Refer to Appendix 1 for the Procurement Summary Form. Refer to Appendix 1 form 1-B for the Procurement Summary Form and Appendix 4 form 4-F for a “Public Works Contracts Pre-Solicitation through Contract Award” flow chart which can help guide the process. For procurements that require a contract, refer to Chapter 7 for Contract Preparation Procedures. If a contract is not required, guidance for creating a Purchase Order is located at section 7.2.10.


Chapter 7:

Contract Preparation

7.1 Contract Preparation Basics Contractors may be brought under contract by POLB through either “formal” or “informal” contracts. Formal contracts are those which exceed $100,000 and require BHC approval prior to entering into the contract. An informal contract may not exceed $100,000 and, unlike formal contracts, does not require BHC approval. All contracts, regardless of the dollar amount, must be prepared by the City Attorney’s Office after insurance requirements have been approved by Risk Management. Any requests to use a contractor’s contract template, or to make revisions to the POLB standard template, must be directed to the City Attorney’s Office along with a copy of the proposed contract template. The City Attorney’s Office must approve the use of any non-POLB template or changes to the POLB template. Examples of non-POLB templates include sponsorship agreements, contracts using the contractor’s contract form, etc. Once a contract has been prepared and properly approved following the procedures below, it must be signed by the Executive Director. Contract Duration In most cases, contracts are written for a maximum period of three (3) years, with the option to extend the contract for up to two additional years (e.g., in one year increments) at the discretion of the Executive Director. Contracts written for an initial period of more than three (3) years are discouraged, as it is important to foster an environment that encourages competition by periodically soliciting the contracting community.

7.2 Procedures The following procedures should be followed to prepare and bring a contractor under contract: 7.2.1 Request a Contract from the City Attorney To begin the contract preparation process, prepare a Contract Request Form (Appendix 2 form 2-A) and submit it to the City Attorney’s Office along with the following attachments:

Contractual insurance language drafted by Risk Management (see Appendix 1 form 1-A for an example). This language should have been provided to the division requesting the contract during the contract solicitation phase upon Risk Management’s review of the scope of work/RFP/RSOQ/Specification.

Solicitation document such as scope of work, RFP, RFQ, RSOQ, or Specifications.

The informal contract

limit is up to $100,000

and may be approved

by the Executive

Director (ED). Formal

contracts (over

$100,000) require BHC

approval. Regardless

of the dollar value, all

contracts must be

signed by the ED.

All contracts must be

prepared by the City

Attorney’s Office. In

addition, any request to

use a vendor’s contract

form must be approved

in advance by the City

Attorney’s Office.

Contractors may not be

instructed / authorized

to begin work or any

payments processed

until a fully executed

contract and insurance

are in place.

A Contract Request

Form should be

prepared and provided

to the City Attorney’s

Office. Careful

attention should be

placed on providing the

vendor’s legal name.


Proof of validity of all required licenses (for example, a printout from the Secretary of State website, copy of COLB business license, etc.). Scope of Work and all exhibits that are to be included in the contract (e.g., cost proposal, payment milestones, rate/fee schedules, etc.)

As a general guideline, a 10 business day turnaround time from the City Attorney’s Office should be anticipated for straightforward or routine contracts where the information provided is complete. However, actual turnaround time may vary based on the complexity of the contract and the workload of the office. Once the contract has been drafted, the City Attorney’s Office will email a pdf copy to the contract administrators within the requesting division. The contract owner should review the contract and immediately notify the City Attorney’s Office if there are any errors that require correction or clarifications that are necessary to ensure that the contract captures what the contract owner is trying to achieve.

7.2.2 Obtain Board Committee and Board Approval (if over $100,000 only) For formal contracts over $100,000, a Board Committee memo must be prepared to recommend and to refer to the Board approval of a contract with the contractor, as well as approval to open a new work order/project or amend a previously approved work order/project, if required. The Committee memo should also describe the solicitation and selection processes followed, which may be derived from the Procurement Summary Form completed prior to contract award (the latter is not required to be attached to the Committee memo). Upon Committee approval, a memo must be prepared to the BHC recommending that the Board approve the contract with the contractor and open (or amend an existing) work order. The contract owner within the requesting division must ensure that the contractor signs the contract before presenting it to the BHC (except for construction projects, where the contract is signed after BHC approval). Otherwise, if the contractor requests any changes to the contract, the contract would have to be returned to the BHC to approve the changes. 7.2.3 Obtain a Contract Number For formal contracts, the Executive Secretary to the Board will assign a contract number after Board approval. Formal contracts follow the nomenclature of HD-XXXX, HD for Harbor Department followed by four numeric characters. For informal contracts, contact Accounts Payable within the Finance Division for a contract number prior to mailing the contract to the contractor for signature. Informal contracts follow the nomenclature HD-IC-XXXXXX, HD for Harbor Department, IC for informal contract followed by four to six numeric characters for the contract number. Once received, write the contract number on the two contract originals.

7.2.4 Mail the Contracts Upon receipt of the pdf original contract back from the City Attorney’s Office, print two copies, prepare a cover letter and mail the copies of the contract to the contractor requesting their signatures and notarization. When returned by the contractor, these two signed and notarized contracts will serve as the two original contracts. Include a blank W-9 form (see Appendix 2, form 2-E) and a sample blank notary form (see Appendix 2, form 2-H) with the contract for the contractor to complete. The cover letter should include the following instructions:

Both contracts must be signed, notarized and returned Fill-out and return W-9 Request for Taxpayer I.D. Form (see Appendix 2 form 2-E for new

contractors only)

Request for proof of insurance required by the contract be returned to Risk Management A sample cover letter has been provided in Appendix 2 form 2-B for your convenience.


Generally, contracts must be signed by two officers of a corporation in order to take advantage of the statutory presumption that the contract was duly authorized. The contractor must return both executed contracts back to POLB along with the required insurance endorsement forms (Appendix 5, 5-D Useful Links). When returned by the contractor, verify that the contracts have been signed, notarized and that no changes have been made to the terms and conditions.

7.2.5 Finalize Insurance The contractor should submit insurance endorsement forms directly to Risk Management; however, in the event that the contractor submits insurance endorsement forms to the requesting division, the forms should be forwarded to Risk Management. Risk Management will then review them and if in order, draft an Approval of Insurance Documents Memo (see Appendix 2 form 2-F) and approve as-to-sufficiency. Subsequently, RM will work with the City Attorney’s Office to obtain approval as-to-form. The Approval of Insurance Documents Memo will be returned to the requesting division stamped approved-as-to-sufficiency by RM and approved-as-to-form by the City Attorney’s Office (this may be in either electronic or hardcopy format). The stamped Approval of Insurance Documents Memo must be attached to the two contract originals when requesting final approval from the Executive Director. 7.2.6 Obtain Signature of City Attorney Upon receipt of the signed and notarized original contracts from the contractor and Board approval (if required), forward the contracts to the City Attorney’s Office for signature. Risk Management is responsible for obtaining the City Attorney’s Office approval-as-to-form of insurance documents. 7.2.7 Obtain Executive Director Signature The last step to finalizing the contract is to obtain the signature of the Executive Director on the contract itself. Submit the two City Attorney signed original contracts to the Executive Director for signature along with Approval of Insurance Documents memo from Risk Management. Only the Executive Director is authorized to sign and execute a contract, regardless of the dollar amount. Since informal contracts (<$100,000) do not have an accompanying Committee or Board memo, a completed Procurement Summary Form (Appendix 1 form 1-A) should be submitted to the Executive Director when requesting the contract be signed in order to provide key background details. 7.2.8 Certify Contract Copy for City Auditor The COLB charter Section 806 requires that a certified copy of every contract must be filed with the City Auditor’s Office within 10 days of execution. After the two original contracts have been signed by the Executive Director, provide one original version and one copy to the Executive Assistant to the BHC for certification. Upon certification, both copies will be returned to you for distribution. 7.2.9 Distribute Contract Copies Once the contracts have been signed by the Executive Director, distribute copies as follows:

1 original to the contractor with a cover letter

1 original to the Records Center

1 scanned pdf copy to Risk Management

1 scanned pdf copy to SBE


1 hardcopy to Finance Division with the P.O. number written on it

1 scanned pdf copy e-mailed to City Attorney at [email protected]

1 copy to the requesting division contract administration file

1 copy to the City Auditor (certified copy)

Others as determined appropriate by the requesting division When EDRMS becomes available, the appropriate parties will be notified via alerts when a contract is available electronically, eliminating the need to distribute paper copies. 7.2.10 Update Vendor Master File (new contractors only) For new contractors only, complete a Vendor Add Form (Appendix 2 form 2-G) and submit the forms along with the signed and dated W-9 form completed by the contractor to City Purchasing to establish a vendor record in ADPICS. 7.2.11 Create a Purchase Order In order for a contractor to be paid, a purchase order (P.O.) must be created in ADPICS. Division staff have the system access and authority to create P.O.s, and may contact the Finance Division for assistance. When creating a P.O., staff should determine whether a Blanket Purchase Order (BPO) or Direct Purchase Order (DPO) is appropriate, as this will determine how the funds are encumbered. A Direct Purchase Order (DPO) encumbers the full purchase order amount and is appropriate only if it is anticipated that all funds will be expended during the current fiscal year. For contracts that span beyond one year, a Blanket Purchase Order (BPO) should be created for the full contract amount, and individual releases processed against it so that funds are not encumbered unnecessarily. Once the P.O. has been created, print and retain the original P.O. in the contract file. Do not send a copy of the P.O. to the contractor as the back of the P.O. may have terms and conditions that conflict with the terms of the contract. A contract preparation check list and flowchart has been provided for your convenience in Appendix 4 forms 4-B and 4-G, respectively.

A contract preparation

checklist has been

provided for your

convenience in

Appendix 4.


Chapter 8:

Contract Administration

8.1 Background Contract administration concentrates on the relationship between POLB and the contractor from the point after a contract is awarded to final closeout, ensuring the contractor delivers the product and / or service in conformance with the contractual requirements and that contractual terms are monitored and complied with. This chapter outlines the recommended best practices associated with contract administration activities. The primary objectives of effective administration are to:

Foster a team environment between POLB and its contractors, with an open line of communication;

Ensure POLB receives the goods and / or services for the cost, time and quality stated in the contract and / or specifications;

Identify potential contractual or performance issues on a timely basis and put corrective action plans in place before they rise to the level of major deficiencies, which could potentially lead to unnecessary costs, time delays, or legal action;

Form a basis to evaluate future contract decisions; and

Monitor compliance with contractual terms. The sections that follow are not meant to be a one-size-fits-all approach, but rather a minimum guideline for contract administration.

8.2 Establish the Project Infrastructure Once a contract has been executed, measures should be taken to establish a sound project infrastructure to increase the likelihood of success. This includes identification of all key players that will be involved in the project from both POLB and the contractor, establishing clear and distinct roles, responsibilities, expectations and reporting relationships, and establishing the detailed project plan, milestones and deliverables. The contract owner assigned will be responsible for managing the overall relationship with the contractor(s), including serving as the primary point of contact for questions and issues that arise, monitoring contractor status and deliverables, and ensuring that contractor invoices and payments are accurate and complete. The contract owner should:

Have sufficient knowledge of the specific contract and general contracting principles as it relates to their responsibilities in administering the contract.

Remain constantly apprised of project /contract status and escalate any issues, as appropriate. Maintain complete and accurate contract records at all times, and make them available upon

request.

8.3 Pre-construction / Post Award Kick-off Meetings A pre-construction, or “pre-con” meeting, is customarily conducted for construction projects between the time of contract award and the start of construction. The purpose of the meeting is to establish an open


line of communication, introduce key project team members, achieve a clear and mutual understanding of all contract and service delivery requirements and to review POLB policies, as applicable. It may also be beneficial to conduct a similar meeting (in the form of a post award kick-off) for other major projects such as large consulting engagements, or for contractors who have never worked with POLB before. Following is a non-exclusive list of suggested pre-construction / post award kick-off meeting topics. Those which apply only to a construction contract are designated as such. Each agenda should be tailored to a particular project or contract and contractor’s needs: Providing a general project and scope overview. Allowing the contractor to present their approach and internal processes,

including quality assurance measures. Identifying the key POLB and contractor personnel contacts, their responsibilities

and authority. Reviewing any relevant policies and procedures. Reviewing the project plan. Determining the schedule and frequency of meetings. Reviewing the dispute reporting, escalation and resolution procedures. Reviewing the invoicing process. Contractors should be informed of the

information, support and format required in order to process payments promptly. Reviewing procedures for submittal and processing of Requests-for- Information. Reviewing the process for requesting a change order (construction only) or

contract amendment. Reviewing any acceptance criteria and review process as required by the

contract. Discussing liquidated damages for construction contracts and punitive measures

for professional services contracts (this can be handled through a separate meeting with the contractor). If an SBE goal was assigned to the project, inviting a member from the SBE

Program to further discuss the SBE / VSBE goals, reporting requirements, etc. Providing instructions for written and verbal communications. Reviewing safety considerations and plans (construction only). Providing an overview of the required permits (construction only). Issuing a notice-to-proceed (construction only).

8.4 Monitor Contractor Performance A contractor’s performance must be continuously monitored throughout the term of a contract. The contract owner should actively monitor the contractor’s performance in accordance with the contract terms, conditions and specifications to determine whether their performance is satisfactory, and to remedy any deficiencies noted before they rise to the level of potentially significant issues. In addition, staff should always be kept apprised of a contractor’s current status and be able to efficiently transition the assigned work in the event a contractor is no longer able to fulfill their duties.

It is recommended to

have a kick-off or pre-

construction meeting

for all construction

projects and for any

other project where the

contractor has never

worked for POLB

before.

For major projects,

contractors should be

requested to provide

monthly status reports

covering both the

technical and

budgetary aspects of

the project.


8.5 Considerations Specific to On-call Contracts

A common practice across POLB is to maintain a pool of on-call contractors in service disciplines for which POLB has a regular and ongoing need. The primary purpose of on-call contracts is to be able to react quickly and efficiently when a need arises, as opposed to having to go out to compete for each individual project on case-by-case basis. Often, multiple contracts are awarded to firms within a particular service discipline for equal amounts (e.g., four environmental remediation contracts awarded to separate firms, each for $250,000). Select a Contractor Work is authorized through issuance of a task order to the selected contractor. While there is no requirement to competitively bid a scope-of-work, a best practice is to obtain quotes from the on-call contractor pool to obtain the best value for POLB. The following guidelines may be used to aid in contractor selection: Directed Assignment: The project manager may elect to assign task orders with an estimated dollar

value under $10,000 to a contractor in a particular technical area on a directed basis. The assignment can be made after requesting a cost quote from the contractor; however, for routine work of a known value (e.g., where a standard price list exists), a formal cost quote is not needed.

Competitive Assignment: If the value of the work is expected to exceed $10,000, the project manager may present a scope-of-work to each of the on-call firms in the relevant service area along with a project schedule and proposal due date, and request them to submit cost proposals. Similar to the selection procedures for professional services described in chapter 4 above, the submissions should be evaluated based on a combination of technical merit and cost. The task order need not necessarily be awarded to the lowest cost provider, as in the case where a more costly firm presents a faster remediation approach which better aligns with the overall project schedule. However, in the instances where there are no such extenuating circumstances, the lowest cost provider should be selected if it will provide a comparable quality of service as the other on-call contractors. All selection processes must be documented and placed in the contract file including the rationale for not selecting the lowest cost provider.

On an on-going basis, with all things being equal including price quotes, effort should be made to rotate task orders among the pool of on-call contractors so that all firms under contract have an opportunity to participate in POLB projects. Assign a Job Task Number For all task orders, the project manager should assign a job task number, establish a budget and notify the chosen contractor to proceed within the authorized budget. Job task numbers identify each project individually among the suite of tasks conducted by a given contractor and permit the contractor’s charges to be assigned to the appropriate charge point, since task-order contractors may work on many different POLB projects. Manage the Task During task execution, the project manager should apply the same project management techniques covered above with respect to overseeing the contractor’s performance, monitoring the budget and schedule, ensuring the timeliness and quality of deliverables, reviewing and approving invoices for payment and where necessary, authorizing supplemental funding. Task Order Administration


While other staff members may monitor the overall status of each contract in terms of the remaining contract funding, insurance and purchase orders, it remains the project / contract manager’s responsibility to review that status before assigning new task orders or supplementing existing ones, so that contract funds are not exceeded. The project manager must not authorize a contractor to proceed with new work until it is determined there are sufficient, uncommitted funds remaining within the contract that will cover the proposed scope-of-work.

8.6 Invoice / Progress Payment Review and Approval Invoices It is critical to perform a thorough review of contractor invoices prior to payment to ensure their completeness and accuracy with respect to contract terms, project / contract delivery, SBE utilization and adherence to POLB policies and procedures. Once an invoice is received, it should be date stamped and a first level review performed to verify all of the required detail necessary for processing was provided, such as the proper billing rates and dates, required expense support (if applicable), properly referenced P.O., contract number, a job task / project ID, and that the invoice is new and was not a re-submittal of a prior invoice. In addition, a Monthly Utilization Report (“MUR”) should be submitted along with the invoice if an SBE/VSBE goal was assigned to the contract. A verification of the contract expiration date and business license should also be made at this time. If any issues are noted, the contractor should be requested to provide the missing or corrected information. Once this initial invoice review is complete, the invoice is stamped with the Accounts Payable “certification stamp”, which has areas for the approver’s signature, project coding and purchase order number. The contract files must be updated with respect to the cumulative amount invoiced and remaining unencumbered funds available within the contract, provided this is not performed automatically by a project management system tool. Next, the invoice should be reviewed by the individual most familiar with the day-to-day activities and progress of the given project (this is typically the project manager). This individual should pay careful attention to the following data points during his / her review:

1. Is the labor portion of the invoice reasonable? Although at times it may be difficult to determine whether the exact number of hours charged are legitimate, they should still be evaluated to determine whether they seem reasonable and in line with the expected effort. Components to review include:

a. Whether the hours billed by the contractor’s project management resources are reasonable. As a general rule of thumb, project management may equal 5-10% of the total hours estimated for the project.

b. Are the hours billed by technical staff reasonable to assure that the technical aspects of the work were adequately and competently addressed?

c. Have corporate Principals billed hours? If so, do the hours seem reasonable? If not, or if Principal hours are billed every month, or during months of little or no activity, then staff should ask the contractor to justify those charges.

A contractor must not

be authorized to

proceed with new work

until it is verified that

sufficient, uncommitted

funds remain in the

contract which will

cover the proposed

work.

Supplier payments

cannot be processed

without having

possession of a properly

authorized purchase

document,

documentation

verifying the goods /

services were

satisfactorily received

and / or performed and

an accurate and

complete supplier

invoice.


d. If very junior staff hours are billed, does the number appear reasonable given the job task and the individual’s technical skills? This is to ensure on-the-job training expenses are not excessive.

e. If subcontractor costs or invoices are included with the invoice, they should be reviewed following the same data points outlined above.

2. Are direct costs such as office supplies and copying charges reasonable and charged at the rates stated in the contract (i.e., with the appropriate mark-up or as a direct pass-through)?

3. If travel expenses are included, are they reasonable, consistent with POLB policy and supported by receipts? Travel expenses include, but are not limited to: mileage for use of a personal auto, airfare, taxis, meals and hotel stays. All expenses should pass the reasonableness test and be reimbursed at the actual cost, as POLB does not accept per-diem expense reimbursements. The Port also does not reimburse expenses for alcohol.

4. The correct charge point is indicated so that the charges will be allocated to the proper work / task order for accounting purposes.

5. Check the contract amount and the funds remaining. If the funding is getting low, alert those using the contract and initiate steps to supplement the contract, if necessary.

6. If an SBE / VSBE goal was assigned to the project, did the contractor submitted an accurate and complete MUR? If errors are identified on the MUR, the contractor should be requested to submit a corrected copy.

7. Verify that all of the invoiced goods and /or services were in-fact received. 8. If the invoice relates to a job task order, review for the following:

a. The job task description or title is consistent with the project or job task that was authorized. If it is site specific, ensure the correct site has been identified.

b. The project or job task has been charged against the proper contract number. This is particularly important for companies that have multiple contracts with POLB.

c. The period covered by the invoice did not precede the date of the initial task order authorization, or after the date the project was completed or the contract terminated.

d. Check the remaining funds in the job task and verify that the progress on the job task is such that the remaining funds will cover the remaining work.

After the invoice has been fully vetted, it is routed to the approver for their signature. Once properly approved and coded, a copy of the invoice is made for the contract file and the SBE office. The original invoice along with a copy of all back-up documentation should be routed to Accounts Payable for processing. Any questions regarding the invoice payment or purchase order process for direct or blanket purchase orders should be directed to Accounts Payable. Construction Project Progress Payments For construction contracts, contractors submit a monthly “application for payment” requesting payment for work installed during the previous month. Upon receipt, applications for payment should be date stamped and a first level review performed to ensure all required back-up is included (e.g., SBE utilization, certified payroll information, Un/Conditional Waiver and Release of Rights Upon Progress Payment). The application for payment should then be reviewed by the individual most familiar with the actual fieldwork performed (typically a construction inspector) to ensure the itemized work was in-fact performed, installed quantities are accurate and all items are in accordance with the bid and specification documents. As a final check and prior to the approval by the Division Director, the Construction Manager should then review the application for payment for accuracy. As PCC section 20104.50 requires payment to be made within 30 days, this review should be completed within seven days of receipt of the application for


payment so as to allow adequate time for processing, or to notify the contractor if there are disputed or improper items. Failure to process payments within 30 days may result in interest charges due to the contractor.

Upon verifying the accuracy of the application for payment, any retention amounts and/or stop notice holdbacks should be calculated and deducted from the gross payment request amount and forwarded to Finance for processing.

8.7 Contract Amendments Contract amendments are required whenever there is a need to change a term of a contract such as the expiration date, value, scope of services, or any combination thereof. Amendments may also be needed to address new regulatory requirements or when a contractor experiences a corporate event, such as a merger, acquisition, or name change. The following basic rules govern the decision to amend a contract versus re-competing the subject scope of work:

There must be a valid business case for the amendment. For example, the impact and likelihood of failure is too severe to justify a new contractor, or the project is nearing completion and a change in contractor is not practical. If the amendment involves an increase to the scope of work, the amended

scope should closely relate to the original scope. At a minimum, the new scope must relate to the same project / program that the original contract was awarded for. If a significant change to the scope occurs, the work should be re-competed.

The pricing must be determined to remain fair and reasonable given the current economic climate, or potential changes within the specific industry since the contract was initially awarded. If there is any doubt, the work should be re-competed, or at a minimum, quotes obtained to validate the pricing.

Project-specific contracts must never be amended once the project is complete, in order to be used on a separate and distinct project(s).

For on-call / annual contracts: An amendment should only be for the additional time or value

necessary to complete work that is already in-progress. In other words, on-call / annual contracts should not be amended beyond the original contract terms simply to avoid having to re-compete the subject services.

The amendment should not be related to performing work that was included in the scope of a separate contract, unless a deductive change order to that contract is processed.

Contracts must not be amended to simply bypass having to generate a new solicitation.

Any individual amendment, or cumulative total of all amendments which represents 50% or greater of the original contract value AND more than $500,000, must be re-competed. Any exceptions to this rule must be approved in advance by the Executive Director by submitting a completed Contract Amendment Background Form (Appendix 3 form 3-A) along with the Committee memo.

If the primary reason for amending the contract is to keep a contractor project team in place, staff must be certain they are not placing an overreliance on

When a need arises to

amend a contract: 1 -

contact Risk

Management to

determine whether the

insurance in place is

still appropriate; 2 -

completed a Contract

Amendment Form to

document the rationale

and post to EDRMS; 3 –

complete a Contract

Request Form to

request the City


prepare an

amendment.


the knowledge of a few individuals for a project’s success, and have a transition plan in the event the contractor is no longer able to fulfill their duties. Given that there are so many unique circumstances that can lead to a contract amendment, the Contract Compliance Manager is available as well as the City Attorney’s Office for determining whether an amendment is appropriate, or if a new contract should be awarded. Criteria that will be considered include the value change or length of time extension relative to the original contract value / duration, the number of prior amendments and the nature of any scope changes or addition of new tasks. When a need to amend a contract arises, complete a Contract Amendment Background Form (see Appendix 3 form 3-A) and post to EDRMS prior to obtaining BHC Committee approval (in the interim prior to EDRMS, email a copy to the Contract Compliance Section). It is recommended to complete this form at least one week prior to going to Committee or Board. At the same time, contact Risk Management to determine whether the amendment warrants a change in the current insurance carried by the contractor. In addition, contact SBE to ensure SBE goals are set for the contract amendment. Upon insurance determination, complete and forward a Contract Request form to the City Attorney’s Office for preparation of the amendment. Considerations Specific to Construction Contracts The primary method of amending a construction contract is through a change order (see section 8.8 below). However, if the cumulative contract change order value exceeds 25% of the original contract award amount, a contract amendment issued by the City Attorney’s Office is necessary.

8.8 Change Orders A change order is a form of amendment predominantly for construction contracts whereby a change in the contract amount, requirements, and/or time occurs. Such changes must be within the general scope of the work contemplated by the contract and in accordance with the contract's provisions in order for proper execution of the change order. Change orders are an important tool which allows the owner (i.e., POLB) to react to changed conditions in a timely and efficient manner. Change orders can be requested either by the owner or contractor, and are generally in response to unforeseen field conditions, design changes necessary to accommodate owner or tenant requested scope changes, or to correct for errors or omissions in the original design itself. Absent the authority to process change orders, the work would need to be stopped, contract terminated, plans and specifications revised and the project would need to be reissued for bidding. While recognizing the importance of the change order process in construction contracting, it must be closely managed as change orders essentially become sole-sourced opportunities for which the contractor has no competitive incentive to price fairly and reasonably.

A contractor may not

begin any work or

process payments

related to a change

order until obtaining

all required POLB

approvals.

A Contract

Amendment

Background Form

should be completed

prior to requesting

BHC approval and be

posted to EDRMS.

The scope of work for

any given change

order may not be split

into smaller change

orders for the purpose

of bypassing

established control

and review

procedures.


Accordingly, it is critical to evaluate the merit, time and cost impact (including indirect cost impacts such as labor inefficiency, equipment resequencing, home, corporate, and field office overhead where applicable) of change orders, negotiate any unsatisfactory elements with the contractor, ensure proper levels of review occur and adequate segregation of duties exists, and that evidence of these activities is well documented in the contract files. A Contract Change Order Background form has been developed and a template is provided in Appendix 3 form 3-B of this manual for documenting all change orders. This form shall be completed and an electronic copy posted to EDRMS (in the interim prior to EDRMS, email a copy to the Contract Compliance Section). The submittal of the Contract Change Order Background Form shall take place prior to the division making any recommendation to the BHC for approval and is recommended to do so at least one week in advance of presenting the item. Finally, the following documentation must be retained in the change order file to support the decision-making process and provide an audit trail for every change order:

Contract Change Order Background Form

Change order log (cumulative for the entire project)

Contractor’s original cost estimate

Documentation of the evaluation of the merit / entitlement of contractor proposed change orders

Documentation of an independent cost estimate for contractor-proposed change orders exceeding $10,000 by obtaining third party quote(s) or performing an in-house cost estimate. The minimum limit of $10,000 is based on the original proposed changed order submitted by the contractor and excludes any credit from other line items. If immediate approval is required, the justification for proceeding on a time and material basis should be documented.

Time impact/schedule analysis (e.g. fragnet analysis) including any cost associated with time impact to the project (where contract duration is impacted). This includes evaluating delay damages, in addition to evaluating whether the delay would have triggered any liquidated damages in accordance with the contract terms. In summary, any time extensions must be substantiated and have a sound business case.

All draft versions of the change order which illustrate any interim revisions, with independent reviewer sign-off

Documentation justifying waiving of contract close-out items such as record drawings, manuals, training, etc.

Documentation supporting any decision to compensate a contractor for a claim that was initially deemed to have no merit

Summary of negotiations

Copy of the approved change order

The Construction Management Division’s “Change Management” policy delineates the procedures to be followed for change orders. Any changes to that policy shall be provided to the Contract Compliance Section for review and concurrence.

The merit and cost of

all contractor-

proposed change

orders must be

evaluated and

documentation to

support this review

should be placed in the

contract file along

with any negotiations

that took place.


8.9 Contractor Pending Change Order (CPCO) A CPCO is a mechanism used by the Construction Management Division, where change orders within the Executive Director’s aggregate authorization limit of $100,000 are authorized. CPCOs are used primarily as a means to ensure that a reasonable level of efficiency is practiced during construction activities. However, it is important to practice the equivalent level of analysis and negotiation as is practiced for formal change orders. It is important to note that a CPCO only delegates authority to the Director of Construction Management to authorize a contractor to perform the stated work, and does not allow payment to be made to the contractor. All CPCO’s must be incorporated into a formal change order to pay the contractor. In the event that a contractor requests payment prior to reaching the Executive Director’s authorization limit, a change order request pertaining to the work shall be made to the Executive Director for approval.

Once the total cumulative value of CPCOs has reached the Executive Director’s authorization limit, a formal change order request outlining all authorized CPCOs must be made to the BHC for approval.

Upon approval of the CPCOs, a copy of each should be posted to EDRMS (in the interim prior to EDRMS, email a copy to the Contract Compliance Section).

8.10 Contractor Status Changes From time-to-time, contractors doing business with POLB undergo corporate events such as mergers and acquisitions, which can trigger a change in the contractor’s name or legal structure. Such events may have legal, contractual, and insurance implications. For example, standard POLB contract language states that contracts are non-assignable without prior written consent. In addition, POLB may not be adequately protected in the event a contractor is acquired and the current insurance coverages enforced are not carried over or renewed by the acquiring organization. As such, it is critical to make the City Attorney’s Office and Risk Management aware of a change in a contractor’s status to determine whether any action is required. Upon learning of a status change, staff should perform the following:

Request the contractor to provide a written description of the nature of the change and the sequence of events, in addition to any helpful supporting documentation (e.g., filings with the California Secretary of State, amendments to articles of incorporation, corporate resolutions, etc.).

Provide the information to the City Attorney’s Office for review and determination of next steps, if any. Next steps could include drafting by the City Attorney’s Office of an amendment and consent to assignment, or in some cases, nothing at all if the change happened by operation of law.

Inform Risk Management of the change for a determination of whether the current insurance policies will remain valid given the change.

A CPCO only

authorizes the

contractor to perform

the stated work.

Payment must be

approved by the

Executive Director.


Office should be

notified of any

contractor status

changes to determine

if any action is

required.


8.11 Claim / Dispute Handling and Resolution Disputes may arise when the contractor alleges ambiguities in the contract provisions, the scope of work, or the specifications. The contract owner is responsible for managing contractor performance by monitoring compliance with contract requirements and documenting all performance issues in writing. Disputes, regardless of magnitude, should always be documented in the contract file. The contractor and POLB staff involved in a dispute should deal with one another in good faith and attempt to resolve the dispute quickly and fairly so as to avoid project delays and unnecessary costs. If a dispute cannot be resolved amicably and timely, the City Attorney’s Office should be notified to determine the next steps.

8.12 Contract Close-out Contracts are physically complete when contractors have rendered (and POLB has received) all services, documents, goods, data, or other deliverables as stated in the contract. Contracts are administratively complete when all administrative activities have been accomplished, releases executed, and final payment made. Close-out activities The following minimum activities should be carried out in order to close a contract:

Determining all services, documents, goods, data or other deliverables have been received according to the contract terms and specifications.

Verifying final SBE/VSBE utilization by completing the SBE Contract Compliance Closeout Report

Approving the final product or service by submitting a written document to the contractor accepting the deliverables.

For construction projects, requesting the Board of Harbor Commissioners final acceptance of the project and receipt of as-builts.

Notifying responsible parties when any holdbacks or retentions can be released. Retention shall not be released until Final Completion, unless otherwise provided in the Project Specification or approved by the Board. In no event shall the proportion of released retention exceed the proportion of Work completed.

Completing a post contract evaluation (see below). Post Contract Evaluation A post-contract evaluation should be performed on all contracts exceeding $100,000 in value once the work is complete and POLB has received all stated deliverables. This evaluation serves as a performance measure and basis from which to determine:

If the contractor has completed performance of its services in accordance with the agreed-upon scope and other terms and conditions stated in the contract; and

How the contractor will be evaluated for future work. The evaluation primarily serves as a “lessons-learned” analysis to identify areas that can be improved upon in future contracts, such as the approach and actual contract provisions.

Contract disputes and

the outcome,

regardless of the

dollar amount, should

always be documented

in the contract file.

A post-contract

evaluation should be

performed on all

contractors once the

work is complete, and

lessons learned

integrated into future

contracts.


In developing performance measures, address both the services performed and expected outcomes. For example, a contractor may be prompt and responsive in delivering goods or services, but may have failed in achieving the overall objective(s). Address the causes of marginal performance, especially when the causes include factors beyond the control of the contractor, such as a potentially vague scope, poorly written specifications, poor contract administration / management on behalf of POLB staff, or technical impossibility. Be sure to address the overall performance of both the firm and the key personnel on the project. Each division should determine the criteria to evaluate the contractor on as well as the format that best fits the nature of the work performed. The chosen method may either be a numerical score or narrative form evaluation, or a combination of both. Regardless, it is important that the criteria be defined and specific enough to lend to a meaningful evaluation that can lead to actionable improvement, if necessary. A draft of the evaluation should be discussed with the contractor prior to being finalized, along with any improvement suggestions they may have with POLB’s contract administration procedures. Once complete, the post-contract evaluation should be documented, easily accessible, and placed in the contract file for future reference and for incorporation into future contract documents. Sample Post Contract Evaluation forms have been provided for your convenience in Appendix 3 forms 3-C and 3-D.

8.13 Good Record Keeping Divisions are responsible for maintaining records in sufficient detail to allow anyone to review documentation and understand how the procurement was requested, conducted, awarded and administered. The records maintained by the contract administrator are incorporated into the contract file and retained for compliance and/or auditing purposes. The following documents must be maintained in a central location in a contract file or electronic system such as EDRMS, as applicable: Contract Request Form Procurement Summary Form Contract Amendment Background Form Contract Change Order Background Form Contractual insurance language from Risk Management stating insurance requirements RFP / RSOQ / NIB / Construction Specifications and any addendums Cost Estimate / Engineer’s Estimate SBE forms as applicable Sign-in sheet from the pre-proposal / pre-construction meeting Agenda from the pre-proposal / pre-construction meeting Pre-qualification questionnaire List of all questions and answers provided to potential proposers Written proposal scoring sheets, with weighted evaluation criteria and conflicts of interest

statement, along with the tabulated scoring results A list of questions asked during the short-list process Oral interview / presentation scoring sheets from each committee member and the tabulated

scoring results For low-bid construction projects, a copy of the bid evaluation matrix One copy of each bid / proposal received along with the Contractor Certification Form


Documentation of professional reference checks performed Documentation of the contract negotiation process Board Committee memo Board of Harbor Commissioners memo Proof of a valid City of Long Beach business license Proof of authorization to conduct business in California (printout from the Secretary of State

website) Copy of fully executed contract If related to emergency work, justification for the circumstances which constituted an emergency

and why the project was not competitively bid Copy(ies) of any contract amendments and supporting amendment negotiation documents The following, as it relates to change orders

o Copy(ies) of the approved change order(s) o Change order log (cumulative for the entire project) o Contractor’s original cost estimate o Evaluation of merit and cost estimate of a contractor proposed change order (e.g.

obtaining three independent quotes/cost estimates) o Summary of negotiations o Documentation of contractor claims or settlements

Contractor performance evaluation form Any correspondence or advice provided by the City Attorney’s Office which supports how a

particular matter was handled or decision on how to proceed was made

A required Contract File Documentation Checklist has been provided for your convenience in Appendix 4 form 4-D.

8.14 Contract Administration Principles Recap Contract Administration Do's Effective contract administration activities, only after the contract has been fully executed, include:

Scheduling a kick-off (e.g., “pre-con”) prior to the start of work to discuss reporting procedures / protocol, introduce team members, align expectations, etc. (as deemed necessary).

Notifying the contractor to begin work.

Monitoring contract activities for compliance with: o Work progress to ensure services are performed according to the quality, quantity,

objectives, timeframes and price points specified within the contract. o SBE / VSBE participation goals.

Monitoring expenditures and ensuring funding availability to satisfy current and anticipated future work.

Verifying accuracy of invoices and approving invoices for payment.

Requesting amendments and / or contract renewals in a timely fashion as determined by the complexity of the request (often three - six months in advance).

Documenting basis of merit and supporting information for amendments and change orders.

Reporting any contract disputes immediately to the division head and / or City Attorney’s Office, as appropriate.

Verifying all work is completed and accepted by the division prior to the contract expiration date.

Performing contract close out activities.

Keeping an accurate auditable paper trail of contract administration activities.


Notifying Risk Management and the City Attorney’s Office of any change in a contractor’s legal status, including name changes.

Contract Administration Don'ts Contract administrators or project managers are not authorized to:

Instruct the contractor to start work before the contract is fully executed and insurance are in place.

Change the scope of the contract without doing so through the formal contract amendment process.

Direct the contractor to perform work that is not specifically described in and funded by the contract and / or task order.

Extend the time period of the contract without execution of an approved amendment. Allow the contractor to incur any additional costs over the limit set by the contract and / or task

order. Authorize the release of any hold-backs or retention prior to obtaining required approvals. Allow contractor to proceed prior to obtaining the required POLB approvals. Sign a contract or a contract amendment as the Harbor Department’s authorized signatory.




Chapter 9:

Appendices

Appendix 1 – Forms: Pre-solicitation through Contract Award 1-A – Sample Insurance Language 1-B - Procurement Summary Form 1-C - Written Proposal Evaluation Form 1-D - Oral Presentation Ranking Form 1-E - Oral Presentation/Interview Ranking Summary 1-F - Final Proposal Evaluation Summary 1-G - Contractor Certification Form

Appendix 2 – Forms: Contract Preparation 2-A - Contract Request Form 2-B - Sample Cover Letter 2-C - Project Approval Request Form 2-D - Reimbursable Work Order Form 2-E - Request for Taxpayer ID Number (W-9) 2-F - Approval of Insurance Documents Memo 2-G - Vendor Add Form 2-H – Notary Form

Appendix 3 – Forms: Contract Administration 3-A - Contract Amendment Background Form 3-B - Contract Change Order Background Form 3-C - Professional Services Contractor Evaluation Form 3-D - Construction Contractor Evaluation Form

Appendix 4 – Quick Start Checklists and Flowcharts 4-A - Quick Start Check List #1—Solicitation through Contract Award 4-B - Quick Start Check List #2—Contract Preparation 4-C - Solicitation Document Checklist 4-D - Contract File Documentation Checklist



4-E - Service and Labor Contracts Pre-Solicitation through Contract Award Flowchart 4-F - Public Works Contracts Pre-Solicitation through Contract Award Flowchart 4-G - Contract Preparation Flowchart

Appendix 5– Reference Resources and Useful Web Links 5-A - City Attorney Memo Re: Appropriate Use of Purchase Orders 5-B - City of Long Beach Ethics Guide 5-C - POLB Code of Conduct Administrative Directive 5-D – Useful Links

Link to Insurance Special Endorsement Forms on polb.com Link to COLB Employee Code of Conduct Link to COLB Charter Link to COLB Municipal Code Link to California Public Contracting Code Link to California Government Code Link to Department of Industrial Relations Prequalification Procedures

Appendix 1‐A

Risk Management Division

Insurance Language Sample

PORT OF LONG BEACH

EXHIBIT “___”

INSURANCE

[TO BE COMPLETED BY THE RISK MANAGEMENT DIVISION]

The required insurance and the documents provided as evidence thereof shall be in the name of the Contractor. If policies are written with aggregate limits, the aggregate limit shall be at least twice the occurrence limits as specified below:

Commercial General Liability:

Commercial General Liability insurance shall be provided on Insurance Services Office (ISO) CGL Form No. CG 00 01 or the equivalent, including provisions for defense of additional insureds and defense costs in addition to limits. Policy limits shall be no less than __million dollars ($__,000,000) per occurrence for all coverage provided and __ million dollars ($__,000,000) general aggregate. The policy shall not limit coverage for the additional insured to “ongoing operations” or in any way exclude coverage for completed operations. Coverage shall be included on behalf of the insured for claims arising out of the actions of independent contractors. The policy shall contain no provisions or endorsements limiting coverage for contractual liability or third party over action claims, and defense costs shall be excess of limits. If the Contractor is using Subcontractors the policy must include work performed “by or on behalf” of the Contractor. Coverage shall apply on a primary non-contributing basis in relation to any other insurance or self-insurance, primary or excess, available to City or any employee or agent of City. Coverage shall not be limited to the vicarious liability or supervisory role of any additional insured. Coverage shall not exclude contractual liability, restrict coverage to the sole liability of the Contractor or contain any other exclusion contrary to the Contract.

If this coverage is written on a claims-made basis, the retroactive date shall precede the effective date of the Contract with the Port and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least three (3) years from termination or expiration of this Contract.

[ADD THE FOLLOWING LANGUAGE IF “XCU” COVERAGE IS REQUIRED]

Coverage shall contain no contractors’ limitation or other endorsement limiting the scope of coverage for liability arising from explosion, collapse, or underground property damage.

[ADD THE FOLLOWING LANGUAGE IF RAILROAD COVERAGE IS REQUIRED]

Coverage shall be provided for property damage or bodily injury that occurs on or within fifty feet of railroad property using ISO CG 24 17 (10 01) or its equivalent.

The policy of insurance required above shall be endorsed as follows:

Additional Insured: The City of Long Beach, its Board of Harbor Commissioners, employees and agents shall be added as additional insured with regard to liability and defense of suits or claims arising from the operations and activities performed by or on behalf of the Named Insured using ISO Form CG 20 10 (2004) or equivalent. Additional Insured endorsements shall not: 1) be limited to “on-going operations”, 2) exclude “Contractual Liability”, 3) restrict coverage to the sole liability of the contractor, or 4) contain any other exclusion contrary to the Contract.

Cancellation: The policy shall not be cancelled or the coverage reduced by endorsement until a thirty (30) day written notice of cancellation has been served upon the Executive Director of the Harbor, except ten (10) days shall be allowed for non-payment of premium.

Business Automobile Insurance:

Automobile Liability Insurance shall be written on ISO Business Auto Coverage Form CA 00 01 or the equivalent, including symbol (1) (any Auto). Limit shall be no less than ____ million dollars ($__, 000,000) combined single limit per accident. Coverage shall apply on a primary non-contributing basis in relation to any other insurance or self-insurance, primary or excess, available to City or any employee or agent of City. If Contractor does not own any vehicles, this requirement may be satisfied by a non-owned vehicle endorsement to the general and umbrella liability policies provided that a separate policy limit is provided for this coverage as required by this contract.


Additional Insured: The City of Long Beach, its Board of Harbor Commissioners, employees and agents shall be added as additional insured with regard to liability and defense of suits or claims arising from the operations and activities performed by or on behalf of the Named Insured. Additional Insured endorsements shall not: 1) be limited to “on-going operations”, 2) exclude “Contractual Liability”, 3) restrict coverage to the sole liability of the contractor, or 4) contain any other exclusion contrary to the Contract.


Contractor’s Pollution Liability Insurance:

Contractors’ Pollution Liability insurance shall be provided on a Contractors Pollution Liability policy form or other policy form acceptable to City providing coverage for liability caused by pollution conditions arising out of the operations of Contractor. Coverage shall apply to bodily injury; property damage, including loss of use of damaged property or of property that has not

been physically injured; cleanup costs; and defense, including costs and expenses incurred in the investigation, defense, or settlement of claims. The policy limit shall be no less than ___ million dollars ($__,000,000) per claim and $__ million dollars ($__,000,000) general aggregate. All activities contemplated in the Contract shall be specifically scheduled on the policy as “covered operations.” The policy shall provide coverage for the hauling of waste from the Project site to the final disposal location, including non-owned disposal sites. Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using Subcontractors the policy must include work performed “by or on behalf” of the insured. Coverage shall apply on a primary non-contributing basis in relation to any other insurance or self-insurance, primary or excess, available to City or any employee or agent of City.





Workers’ Compensation:

Workers’ Compensation Insurance, as required by the State of California, and Employer’s Liability Insurance with a limit of not less than ____ million dollars ($__,000,000) per accident for bodily injury and disease, plus coverage under the U.S. Longshore and Harbor Workers’ Act (USL&H), Jones Act, and/or Federal Employers Liability Act (FELA) for employees performing services covered by said Act(s).

The policy of insurance required above shall be endorsed, as follows:

Waiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the City, its Board of Harbor Commissioners, employees and agents.

Cancellation: The policy shall not be cancelled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the Executive Director of the Harbor, except ten (10) days shall be allowed for non-payment of premium.

Professional Liability:

Professional Liability Insurance with minimum limits of ___ million dollars ($__, 000,000). Covered Professional Services shall specifically include all work to be performed under the Contract and delete any exclusions that may potentially affect the work to be performed (e.g., any exclusions relating to lead, asbestos, pollution, testing, underground storage tanks, laboratory analysis, soil work, etc.) under the Contract. Coverage shall apply on a Primary non-contributing basis in relation to any other insurance or self-insurance, primary or excess, available to City or any employee or agent of City.


The policy of insurance required above shall be endorsed, as follows:

Cancellation: The policy shall not be cancelled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the Executive Director of the Harbor, except ten (10) days shall be allowed for non-payment of premium.

Aircraft Liability:

Aircraft Liability Insurance with minimum limits of ____ million dollars ($__,000,000). Coverage shall specifically include all work to be performed under the Contract and delete any exclusion that may potentially affect the work to be performed under the Contract. Coverage shall apply on a Primary non-contributing basis in relation to any other insurance or self-insurance, primary or excess, available to City or any employee or agent of City.





Watercraft Liability:

To include Protection & Indemnity with minimum limits of _____ million dollars ($__,000,000) each occurrence, Jones Act for employees performing services under said Act, and Pollution Liability. Pollution Liability shall include coverage for bodily injury (including death and mental

anguish), property damage, defense costs and cleanup costs with minimum limits of ____million dollars ($__,000,000) each loss and ____ million dollars ($__,000,000) in the aggregate. Coverage shall apply on a Primary non-contributing basis in relation to any other insurance or self-insurance, primary or excess, available to City or any employee or agent of City.





Builder’s Risk:

Builder's Risk Insurance covering all real and personal property for "all risks" of loss or "comprehensive perils" coverage for all buildings, structures, fixtures, materials, supplies, machinery and equipment to be used in or incidental to the construction at the site, off site, or in transit, for the full replacement value of such properties. Coverage shall be included for property of others in the care, custody or control of the insured for which any insured may be liable. The policy or policies shall name as insured the City, the general contractor, all sub-contractors, and sub-subcontractors in the work. The phrase “as their interests may appear” shall not be used in the named insured provisions or endorsements. Proceeds shall be payable to the City as loss payee. At its sole discretion, City may purchase a builder’s risk policy for the Project instead of a contractor-purchased policy, in which case the Contract Price shall be reduced. Cancellation: The policy shall not be cancelled or the coverage reduced by endorsement until a thirty (30) day written notice of cancellation has been served upon the Executive Director of the Harbor, except ten (10) days shall be allowed for non-payment of premium.

Deductible/Self-Insured Retention

Any deductible or self-insured retention must be approved in writing by the Executive Director and shall protect the City, its Board of Harbor Commissioners, agents and employees in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention. Any deductible or self-insured retention must be approved in writing in accordance with City insurance guidelines.

Evidence of Insurance

The Contractor, concurrently with the execution of the Contract, and as a condition precedent to the effectiveness thereof, shall deliver either endorsements on forms approved by the City of Long Beach acting by and through the Board of Harbor Commissioners (“Evidence of Insurance”) or certified copies of the required policies containing the terms and conditions required by this contract to the Executive Director for approval as to sufficiency and to the City Attorney for approval as to form.

At least fifteen (15) days prior to the expiration of any such policy, evidence of insurance showing that such insurance has been renewed or extended shall be filed with the Executive Director. If such coverage is cancelled or reduced, Contractor shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the Executive Director evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.

NOTE: Samples of approved City endorsement forms are included at the rear of this specification book for reference. Forms for execution will be provided with the Contract. Copies of approved endorsement forms can be obtained from the Port website in lieu of, or in addition to the forms provided herein or with the Contract at:

http://www.polb.com/economics/forms_permits/insurance.asp

Failure to Maintain Coverage

Contractor agrees to suspend and cease all operations hereunder during such period of time as the required insurance coverage is not in effect and evidence of insurance has not been approved by the City. The City shall have the right to withhold any payment due Contractor until Contractor has fully complied with the insurance provisions of this Contract. In the event that the Contractor’s operations are suspended for failure to maintain required insurance coverage, the Contractor shall not be entitled to an extension of time for completion of the Work or delay damages resulting from the suspension.

Acceptability of Insurers

Each such policy shall be from a company or companies with a current A.M. Best’s rating of no less than A:VII, and authorized to do business in the State of California or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law. Any other rating must be approved in writing in accordance with the City insurance guidelines.

Contractual Liability

The coverage provided shall apply to the obligations assumed by the Contractor under the indemnity provisions of this Contract but this insurance provision in no way limits the indemnity provisions and the indemnity provisions in no way limits this insurance provision.

http://www.polb.com/economics/forms_permits/insurance.asp

2/8/2011

Appendix 1-B Procurement Summary Form Purpose and Instructions: The purpose of the form is to document key contract background information such as the contract scope, the solicitation and selection processes that were followed that led up to the contract award decision. The completion of this form is required for every procurement and prior to submittal of Committee and Board memos for Board Action. The form should be completed in its entirety either by typing or handwriting in the required information. You may also attach alternative documentation that addresses the requested elements if other preferred formats exist. When doing so, check the “attachment” box following each lettered section. In addition, you may use “N/A” for sections that do not apply to your given contract. Upon completion, obtain the required approval by your Division Director and post to EDRMS (in the interim, e-mail an electronic copy to Contract Compliance Section).

General Information

Date: Requestor’s Name:

Project Name: Phone # / ext:

Work Order #: Division:

Contract Background

A. Scope - Provide a brief overview of the contract scope and the specific need it will address, including any goods that may be associated with the procurement, or provide an attachment. Attachment

B. Solicitation Process - Briefly document the solicitation process followed, including details such as where the project was advertised (e.g., newspaper, website, direct mailings) and the type of solicitation document used (e.g., RSOQ, RFP), or provide an attachment. Attachment If a sole-source opportunity, check here and document your responses to the following:

Sole-source justification: Explain why the acquisition cannot be competitively bid. For example, is this is an emergency purchase or is the supplier the only source for the acquisition? Attach any relevant evidence to support the sole-source condition, such as a printout from the supplier’s website that they are the only authorized distributor of the required goods.

Cost: How was the price offered determined to be fair and reasonable? Explain what the basis was for comparison and include a cost analysis, if applicable.

C. Selection Process – Briefly document the selection process followed, or provide an attachment, including the following details: Attachment

1. Number of firms that received the solicitation materials 2. Number of bids / proposals that were received 3. In the case of professional services contracts, include details on whether an evaluation committee was

formed, names of individuals who were on the evaluation committee, the standard scoring criteria used, the interview / demo process followed (if conducted), steps taken to negotiate fees, and the basis for staff’s ultimate decision.

2/8/2011

Appendix 1-B Procurement Summary Form (Continued)

Prepared By: _______________________________ Date: ______________ Title: _________________________________ Approved By: _______________________________ Date: ______________ Title: Division Director

D. Is this work within your approved annual budget? Yes No If no, document the business need / justification for performing the work (e.g., unexpected emergency repair or maintenance situation).

Is it anticipated that this will be a one-time request, or recurring annual contract?

One-time Recurring

APPENDIX 1-C

WRITTEN PROPOSAL EVALUATION FORM

PROJECT NAME: EVALUATOR'S NAME: __________________________________________

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ate

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and

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ing

bcon

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leva

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gula

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pe

rienc

e

ojec

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stem st

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enes

s

stai

nabl

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ness

ac

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TOTAL RANK

Cor

Exp

Res

Staf

Qua

(inc

Sub

Rel

Reg

Exp

Pro

jM

anS

ys

Cos

Effe

Sus

Bus

Pra

25 pts 30pts 20 pts 10 pts 10pts 5 pts 100 pts

Company A:

Comments:

Company B:

Comments:

Company C:

Comments:

Company D:

Comments:

Company E:

Comments:

Company F:

Comments:

Conflict of Interest Statement:

I, __________________________________, certify that I have no financial or personal considerations which may compromise my professional judgment and objectivity while serving on the selection committee for this procurement. (See Contracting Manual Section 3 for complete definition of conflict of interest.)

Signature

Date

9/23/2010


9/23/2010

APPENDIX 1-D ORAL PRESENTATION RANKING FORM

EVALUATOR NAME__________________________________________________

PROJECT: ________________________________ DATE: _________________

PREPARED QUESTIONS SHOULD BE SCORED ON A “ONE TO TEN” SCALE, TEN POINTS BEING THE HIGHEST SCORE

COMPANY NAME #1 10

PTS MAX

#2 10

PTS MAX

#3 10

PTS MAX

#4 10

PTS MAX

#5 10

PTS MAX

#6 10

PTS MAX

OTHER QUESTIONS

(10 PTS TOTAL)

OVERALL PRESENTATION (30 PTS TOTAL)

TOTAL SCORE

RANK

Company A

Company B

Company C

Company D

Company E

Company F


9/23/2010

APPENDIX 1-E ORAL PRESENTATION / INTERVIEW

RANKING SUMMARY

PROJECT: __________________________________________ DATE: _________________

COMPANY NAME Evaluator

#1 Evaluator

#2 Evaluator

#3 Evaluator

#4 Evaluator

#5 Evaluator

#6 AVERAGE

RANK Company A

Company B

Company C

Company D

Company E

Company F


9/23/2010

APPENDIX 1-F FINAL PROPOSAL EVALUATION SUMMARY

PROJECT: ___________________________________________ DATE: ________________

COMPANY NAME WRITTEN

RANK INTERVIEW

RANK AVERAGE

RANK FINAL RANK

Company A

Company B

Company C

Company D

Company E

Company F


Project Name: ___________________________________________________________________________________________________________

Spec #: ___________________________________________________________________________________________________________

(if applicable)

__________________________________________ ____________________________________

Company Name Main Telephone Number

__________________________________________

Street Address

__________________________________________

City, State, Zip Code

Insurance Requirements

I understand the insurance requirements for the proposed scope of work. I have discussed the insurance requirements

with my insurance carrier and my company will be able to obtain the required insurance if awarded a contract.

Contract Terms and Conditions

I have read the POLB contract template provided and agree to all standard terms and conditions.

I have read the POLB contract template provided and agree to the standard terms and conditions with the exception of

what is noted in the space below.

Explain:

My signature below certifies that the statements initialed above are true and correct and I agree that our submitted

proposal shall remain valid for the period of time stated in the RFP / RSOQ / RFQ. Furthermore, I understand that POLB is not bound

to accept the lowest bid or award a contract for professional service contracts.

__________________________________________

Signature

__________________________________________

Print Name

__________________________________________

Title

__________________________________________

Telephone Number

__________________________________________

Email Address

Purpose & Instructions: The purpose of this form is to ensure that all bidders/proposers are aware of POLB's Contractor Code of Conduct, Insurance

Requirements, and Contract Terms and Conditions. Please initial and date all statements that you agree with. A person who is authorized to bind your

organization to the terms of this bid/proposal must sign and date in the space provided below including the individual's name and title. This form is to be

submitted along with your bid/proposal.

APPENDIX 1-G

CONTRACTOR CERTIFICATION FORM

2/7/2011


2/7/2011

Appendix 2-A Contract Request Form

Purpose and Instructions: The purpose of the form is to request a contract or amendment to be prepared by the City Attorney’s office and to provide all the information necessary. The form should be completed in its entirety either by typing or handwriting in the required information. You may use “N/A” for sections that do not apply to your given contract. Upon completion, submit one copy of the form to the City Attorney’s office, along with supporting documentation that helps to explain your objectives (e.g., Request for Proposals, proposal, prior contract and amendments, registration to conduct business in California) as well as an electronic copy to the Contract Compliance Section.

(The form starts on the following page)

2/7/2011

Contract Request Form

Requestor’s Information

Date: Division:

Name: Phone # / ext:

Contract Preparation Information

Entity

Company / Entity Legal Name:

Street / PO BOX / Suite #:

City / State / Zip Code:

Phone # / Fax #: Phone: Fax: ( ) -

Legal Structure: (Check one and provide the fictitious name / doing business as (dba), if applicable)

Corporation, State of Incorporation: ___________ Limited Liability Corporation (LLC) Limited Liability Partnership (LLP) Joint Venture Partnership Individual / Sole Proprietor

Fictitious name (dba), if any: ___________________

Contract Details

Contract Type: (Check all that apply)

Initial Contract Contract Amendment

Informal Contract Services Contract Formal Contract Construction Contract - Spec #: __________ Project-Specific Goods Contract On-call / Annual Fixed Price Contract Time and Materials

Contract Number: HD-

Description of Services / Products

Contract Value: Initial not-to-exceed amount: $ ______________ + Current amendment (if applicable): $ ______________ + Prior amendments (if applicable): $ ______________ Total not-to-exceed amount: $ ______________ Contingency amount (if applicable): $ ______________

Contract Duration / Term:

Initial From: _______ to ________ # of Option Year(s): ______ (mm/dd/yy)

Amendment From: _______ to ________ # of Option Year(s): ______ (mm/dd/yy)

Insurance Requirements: Attach contractual language pertaining to insurance requirements provided by Risk Management.

Bonding Requirements: Bidders Labor & Material Faithful Performance Other: _________

Attachments: Board Memo Proof of Corporation Status (required) Proposal / Bid Committee Memo Fee Schedule Request for Proposals Proposal California Registration Prior Contracts and Amendments Contractor’s License Other: _________

Additional Comments:

9/23/2010

Appendix 2-B Sample Cover Letter [INSERT CURRENT DATE] [INSERT CONTACT NAME] Attention: [INSERT COMPANY NAME] [INSERT STREET ADDRESS] [INSERT CITY, STATE, ZIP CODE] Re: Contract for Consulting Services Dear [INSERT CONTACT NAME]: I am pleased to inform you that the Port of Long Beach has decided to enter into a contract with your company. Enclosed please find two contract originals and a W-9 Request for Taxpayer ID Form. Please review these documents and return the following items to me:

Both originals executed before a Notary Public. Please note that two officers of the corporation are required to sign the contract: the chairman of the board, or the president, or any vice president and the corporate secretary, or any assistant secretary, or the chief financial officer, or any assistant treasurer. Once we receive and execute both originals, you will be furnished with a fully executed contract.

A copy of your City Business License issued by the City of Long Beach. If you do not have one, you will need to obtain one before we can authorize any work.

The completed W-9 form. In addition, you must provide proof of insurance required by your contract within 30 days of contract award. Port of Long Beach insurance endorsement forms are available on our website at http://www.polb.com. Please have your insurance carrier or authorized representative complete these forms in full, sign, and return to our office with a LIVE signature. If a certified copy of your insurance policy is submitted, we will require that each item contained on our endorsement form be highlighted in the certified copy. Insurance companies must have a rating of no less than A:VII in the A.M. Best Key Rating Guide. A representative from our Risk Management Division will be contacting you shortly regarding these requirements. Please return the two executed contract originals, W-9, and copy of business license as soon as possible. If you have any questions, please contact [INSERT CONTACT NAME] at (562) XXX-XXXX. Sincerely, [INSERT DIVISION DIRECTOR NAME] [INSERT TITLE] [INSERT INITIALS OF PERSON PREPARING LETTER] Enclosures


Project Detail Descriptions

Estimated Cost Project Project Detail Index Code

Approvals Chief Harbor Engineer / Division Director

Printed Name: Signature: Date:

Chief Financial Officer Printed Name: Signature: Date:

Executive Director Printed Name: Signature Date

Appendix 2-C Project Approval Request Form Project Description:

Division:__________________________________ Date: ______________________________ Project Name:_____________________________ Project No.:_________________________ (assigned by Finance division)

Project Manager: __________________________ Ext:________ Project Type:_______________________ _ Project Details (check all applicable boxes):

Capital Expense

up to $100,000 over $100,000 (requires BOHC approval prior to Executive Director signature)

Initial Request Supplement No. _______ Project Budget $ _______ Project Authorization:

Amount Approved Through Committee

$

Amount Previously Approved (BHC)

$

Additional Amount Requested (BOHC approval required if > $100,000)

$

Total BHC Approval

$


2/1/2011 Page 1 of 2 HD-F-15a (9/99 N:\App 2-D Reimbursable Work Order Form.docx

APPENDIX 2-D

LONG BEACH HARBOR DEPARTMENT REIMBURSABLE WORK ORDER

TO: FINANCE DIVISION RWO#:

FROM: FINANCE DIVISION DATE: April 4, 2008

PROJECT TITLE: ICTF JPA UP Project

WORK REQUESTED:

REASON FOR WORK:

DAMAGE REPAIRS PER ATTACHED DAMAGE REPORT #

REQUEST FOR SERVICE

CHARGEABLE DETAIL

ESTIMATED ACCOUNT CHARGEABLE

PROJECT DESCRIPTIONS COSTS PROJECT No. DETAIL INDEX CODE

1. ALL COSTS See Detailed List

HA622L

$50,000 HA622L

2/1/2011 Page 2 of 2 HD-F-15a (9/99 N:\App 2-D Reimbursable Work Order Form.docx

This Reimbursable Work Order is a contract for the performance of work by the Long Beach Harbor Department described on page 1 and for the payment of invoices for the materials furnished and the services provided. The undersigned represents that he/she has the authority to make a legally binding contract on behalf of his/her employer without further corporate or other action. Upon presentation of a Harbor Department invoice or invoices for the materials furnished and services provided, the undersigned shall pay or shall cause the invoice or invoices to be promptly paid. In the event the invoice or invoices remain unpaid thirty (30) days after presentation, the amount due shall bear interest at the maximum rate allowed by law until paid. The phrase "maximum rate allowed by Law shall mean the interest rate prevailing on the 25th day of the month preceding the due date of the invoice or invoices established by the Federal Reserve Bank of San Francisco on advances to member banks under the provisions of the Federal Reserve Act as now in effect or hereafter amended plus five percent (5%).

WORK AUTHORIZED BY:

______________________________________ _______________________________ __________________________

SIGNATURE TITLE ORGANIZATION

______________________________________

TYPED NAME

PERFORMING DIVISION FINANCE DIVISION BOARD OF HARBOR COMMISSIONERS

AUTHORIZATION: APPROVAL: APPROVAL (if required):

______________________________________ _______________________________

SIGNATURE SIGNATURE

_______________________________ __________________________

TITLE TITLE DATE

Give form to therequester. Do notsend to the IRS.

Form W-9 Request for TaxpayerIdentification Number and Certification(Rev. January 2003)

Department of the TreasuryInternal Revenue Service

Name

List account number(s) here (optional)

Address (number, street, and apt. or suite no.)

City, state, and ZIP code

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2.

Taxpayer Identification Number (TIN)

Enter your TIN in the appropriate box. For individuals, this is your social security number (SSN).However, for a resident alien, sole proprietor, or disregarded entity, see the Part I instructions onpage 3. For other entities, it is your employer identification number (EIN). If you do not have a number,see How to get a TIN on page 3.

Social security number

––or

Requester’s name and address (optional)

Employer identification numberNote: If the account is in more than one name, see the chart on page 4 for guidelines on whose numberto enter. –

Certification

1. The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me), and

I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the InternalRevenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS hasnotified me that I am no longer subject to backup withholding, and

2.

Certification instructions. You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backupwithholding because you have failed to report all interest and dividends on your tax return. For real estate transactions, item 2 does not apply.For mortgage interest paid, acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirementarrangement (IRA), and generally, payments other than interest and dividends, you are not required to sign the Certification, but you mustprovide your correct TIN. (See the instructions on page 4.)

SignHere

Signature ofU.S. person � Date �

Purpose of Form

Form W-9 (Rev. 1-2003)

Part I

Part II

Business name, if different from above

Cat. No. 10231X

Check appropriate box:

Under penalties of perjury, I certify that:

U.S. person. Use Form W-9 only if you are a U.S. person(including a resident alien), to provide your correct TIN to theperson requesting it (the requester) and, when applicable, to:

1. Certify that the TIN you are giving is correct (or you arewaiting for a number to be issued),

2. Certify that you are not subject to backup withholding,or

3. Claim exemption from backup withholding if you are aU.S. exempt payee.

Foreign person. If you are a foreign person, use theappropriate Form W-8 (see Pub. 515, Withholding of Tax onNonresident Aliens and Foreign Entities).

3. I am a U.S. person (including a U.S. resident alien).

A person who is required to file an information return withthe IRS, must obtain your correct taxpayer identificationnumber (TIN) to report, for example, income paid to you, realestate transactions, mortgage interest you paid, acquisitionor abandonment of secured property, cancellation of debt, orcontributions you made to an IRA.

Individual/Sole proprietor Corporation Partnership Other �

Exempt from backupwithholding

Note: If a requester gives you a form other than Form W-9to request your TIN, you must use the requester’s form if it issubstantially similar to this Form W-9.

Nonresident alien who becomes a resident alien.Generally, only a nonresident alien individual may use theterms of a tax treaty to reduce or eliminate U.S. tax oncertain types of income. However, most tax treaties contain aprovision known as a “saving clause.” Exceptions specifiedin the saving clause may permit an exemption from tax tocontinue for certain types of income even after the recipienthas otherwise become a U.S. resident alien for tax purposes.

If you are a U.S. resident alien who is relying on anexception contained in the saving clause of a tax treaty toclaim an exemption from U.S. tax on certain types of income,you must attach a statement that specifies the following fiveitems:

1. The treaty country. Generally, this must be the sametreaty under which you claimed exemption from tax as anonresident alien.

2. The treaty article addressing the income.3. The article number (or location) in the tax treaty that

contains the saving clause and its exceptions.4. The type and amount of income that qualifies for the

exemption from tax.5. Sufficient facts to justify the exemption from tax under

the terms of the treaty article.

Appendix 2-E

Form W-9 (Rev. 1-2003) Page 2

Sole proprietor. Enter your individual name as shown onyour social security card on the “Name” line. You may enteryour business, trade, or “doing business as (DBA)” name onthe “Business name” line.

Other entities. Enter your business name as shown onrequired Federal tax documents on the “Name” line. Thisname should match the name shown on the charter or otherlegal document creating the entity. You may enter anybusiness, trade, or DBA name on the “Business name” line.

If the account is in joint names, list first, and then circle,the name of the person or entity whose number you enteredin Part I of the form.

Limited liability company (LLC). If you are a single-memberLLC (including a foreign LLC with a domestic owner) that isdisregarded as an entity separate from its owner underTreasury regulations section 301.7701-3, enter the owner’sname on the “Name” line. Enter the LLC’s name on the“Business name” line.

Specific Instructions

Name

Exempt From Backup Withholding

Generally, individuals (including sole proprietors) are notexempt from backup withholding. Corporations are exemptfrom backup withholding for certain payments, such asinterest and dividends.

5. You do not certify to the requester that you are notsubject to backup withholding under 4 above (for reportableinterest and dividend accounts opened after 1983 only).

Certain payees and payments are exempt from backupwithholding. See the instructions below and the separateInstructions for the Requester of Form W-9.

Civil penalty for false information with respect towithholding. If you make a false statement with noreasonable basis that results in no backup withholding, youare subject to a $500 penalty.Criminal penalty for falsifying information. Willfullyfalsifying certifications or affirmations may subject you tocriminal penalties including fines and/or imprisonment.

PenaltiesFailure to furnish TIN. If you fail to furnish your correct TINto a requester, you are subject to a penalty of $50 for eachsuch failure unless your failure is due to reasonable causeand not to willful neglect.

Misuse of TINs. If the requester discloses or uses TINs inviolation of Federal law, the requester may be subject to civiland criminal penalties.

If you are an individual, you must generally enter the nameshown on your social security card. However, if you havechanged your last name, for instance, due to marriagewithout informing the Social Security Administration of thename change, enter your first name, the last name shown onyour social security card, and your new last name.

Exempt payees. Backup withholding is not required on anypayments made to the following payees:

1. An organization exempt from tax under section 501(a),any IRA, or a custodial account under section 403(b)(7) if theaccount satisfies the requirements of section 401(f)(2);

2. The United States or any of its agencies orinstrumentalities;

3. A state, the District of Columbia, a possession of theUnited States, or any of their political subdivisions orinstrumentalities;

4. A foreign government or any of its political subdivisions,agencies, or instrumentalities; or

5. An international organization or any of its agencies orinstrumentalities.

Other payees that may be exempt from backupwithholding include:

6. A corporation;7. A foreign central bank of issue;8. A dealer in securities or commodities required to register

in the United States, the District of Columbia, or apossession of the United States;

If you are exempt, enter your name as described above andcheck the appropriate box for your status, then check the“Exempt from backup withholding” box in the line followingthe business name, sign and date the form.

4. The IRS tells you that you are subject to backupwithholding because you did not report all your interest anddividends on your tax return (for reportable interest anddividends only), or

3. The IRS tells the requester that you furnished anincorrect TIN, or

2. You do not certify your TIN when required (see the PartII instructions on page 4 for details), or

You will not be subject to backup withholding on paymentsyou receive if you give the requester your correct TIN, makethe proper certifications, and report all your taxable interestand dividends on your tax return.

1. You do not furnish your TIN to the requester, or

What is backup withholding? Persons making certainpayments to you must under certain conditions withhold andpay to the IRS 30% of such payments (29% after December31, 2003; 28% after December 31, 2005). This is called“backup withholding.” Payments that may be subject tobackup withholding include interest, dividends, broker andbarter exchange transactions, rents, royalties, nonemployeepay, and certain payments from fishing boat operators. Realestate transactions are not subject to backup withholding.

Payments you receive will be subject to backupwithholding if:

If you are a nonresident alien or a foreign entity notsubject to backup withholding, give the requester theappropriate completed Form W-8.

Example. Article 20 of the U.S.-China income tax treatyallows an exemption from tax for scholarship incomereceived by a Chinese student temporarily present in theUnited States. Under U.S. law, this student will become aresident alien for tax purposes if his or her stay in the UnitedStates exceeds 5 calendar years. However, paragraph 2 ofthe first Protocol to the U.S.-China treaty (dated April 30,1984) allows the provisions of Article 20 to continue to applyeven after the Chinese student becomes a resident alien ofthe United States. A Chinese student who qualifies for thisexception (under paragraph 2 of the first protocol) and isrelying on this exception to claim an exemption from tax onhis or her scholarship or fellowship income would attach toForm W-9 a statement that includes the informationdescribed above to support that exemption.

Note: You are requested to check the appropr iate box foryour status (individual/sole propr ietor, corporation, etc. ).

Note: If you are exempt from backup withholding, you shouldstill complete this form to avoid possible erroneous backupwithholding.


Part I. Taxpayer IdentificationNumber (TIN)Enter your TIN in the appropriate box. If you are a residentalien and you do not have and are not eligible to get anSSN, your TIN is your IRS individual taxpayer identificationnumber (ITIN). Enter it in the social security number box. Ifyou do not have an ITIN, see How to get a TIN below.

How to get a TIN. If you do not have a TIN, apply for oneimmediately. To apply for an SSN, get Form SS-5,Application for a Social Security Card, from your local SocialSecurity Administration office or get this form on-line atwww.ssa.gov/online/ss5.html. You may also get this formby calling 1-800-772-1213. Use Form W-7, Application forIRS Individual Taxpayer Identification Number, to apply for anITIN, or Form SS-4, Application for Employer IdentificationNumber, to apply for an EIN. You can get Forms W-7 andSS-4 from the IRS by calling 1-800-TAX-FORM(1-800-829-3676) or from the IRS Web Site at www.irs.gov.

If you are asked to complete Form W-9 but do not have aTIN, write “Applied For” in the space for the TIN, sign anddate the form, and give it to the requester. For interest anddividend payments, and certain payments made with respectto readily tradable instruments, generally you will have 60days to get a TIN and give it to the requester before you aresubject to backup withholding on payments. The 60-day ruledoes not apply to other types of payments. You will besubject to backup withholding on all such payments until youprovide your TIN to the requester.

If you are a sole proprietor and you have an EIN, you mayenter either your SSN or EIN. However, the IRS prefers thatyou use your SSN.

If you are a single-owner LLC that is disregarded as anentity separate from its owner (see Limited liabilitycompany (LLC) on page 2), enter your SSN (or EIN, if youhave one). If the LLC is a corporation, partnership, etc., enterthe entity’s EIN.Note: See the chart on page 4 for further clar ification ofname and TIN combinations.

Note: Writing “Applied For” means that you have alreadyapplied for a TIN or that you intend to apply for one soon.Caution: A disregarded domestic entity that has a foreignowner must use the appropr iate Form W-8.

9. A futures commission merchant registered with theCommodity Futures Trading Commission;

10. A real estate investment trust;11. An entity registered at all times during the tax year

under the Investment Company Act of 1940;12. A common trust fund operated by a bank under

section 584(a);13. A financial institution;14. A middleman known in the investment community as a

nominee or custodian; or15. A trust exempt from tax under section 664 or

described in section 4947.

THEN the payment is exemptfor . . .

If the payment is for . . .

All exempt recipients except for 9

Interest and dividend payments

Exempt recipients 1 through 13.Also, a person registered underthe Investment Advisers Act of1940 who regularly acts as abroker

Broker transactions

Exempt recipients 1 through 5Barter exchange transactionsand patronage dividends

Generally, exempt recipients1 through 7 2

Payments over $600 requiredto be reported and directsales over $5,000 1

1 See Form 1099-MISC, Miscellaneous Income, and its instructions.2 However, the following payments made to a corporation (including grossproceeds paid to an attorney under section 6045(f), even if the attorney is acorporation) and reportable on Form 1099-MISC are not exempt from backupwithholding: medical and health care payments, attorneys’ fees; and paymentsfor services paid by a Federal executive agency.

The chart below shows types of payments that may beexempt from backup withholding. The chart applies to theexempt recipients listed above, 1 through 15.


What Name and Number To Give theRequester

Give name and SSN of:For this type of account:

The individual1. Individual

The actual owner of the accountor, if combined funds, the firstindividual on the account 1

2. Two or more individuals (jointaccount)

The minor 23. Custodian account of a minor(Uniform Gift to Minors Act)

The grantor-trustee 14. a. The usual revocablesavings trust (grantor isalso trustee)

1. Interest, dividend, and barter exchange accountsopened before 1984 and broker accounts consideredactive during 1983. You must give your correct TIN, but youdo not have to sign the certification.

The actual owner 1b. So-called trust accountthat is not a legal or validtrust under state law2. Interest, dividend, broker, and barter exchange

accounts opened after 1983 and broker accountsconsidered inactive during 1983. You must sign thecertification or backup withholding will apply. If you aresubject to backup withholding and you are merely providingyour correct TIN to the requester, you must cross out item 2in the certification before signing the form.

The owner 35. Sole proprietorship orsingle-owner LLC

Give name and EIN of:For this type of account:

3. Real estate transactions. You must sign thecertification. You may cross out item 2 of the certification.

A valid trust, estate, orpension trust

6.

Legal entity 4

4. Other payments. You must give your correct TIN, butyou do not have to sign the certification unless you havebeen notified that you have previously given an incorrect TIN.“Other payments” include payments made in the course ofthe requester’s trade or business for rents, royalties, goods(other than bills for merchandise), medical and health careservices (including payments to corporations), payments to anonemployee for services, payments to certain fishing boatcrew members and fishermen, and gross proceeds paid toattorneys (including payments to corporations).

The corporationCorporate or LLC electingcorporate status on Form8832

7.

The organizationAssociation, club, religious,charitable, educational, orother tax-exempt organization

8.

5. Mortgage interest paid by you, acquisition orabandonment of secured property, cancellation of debt,qualified tuition program payments (under section 529),IRA or Archer MSA contributions or distributions, andpension distributions. You must give your correct TIN, butyou do not have to sign the certification.

The partnershipPartnership or multi-memberLLC

9.

The broker or nomineeA broker or registerednominee

10.

The public entityAccount with the Departmentof Agriculture in the name ofa public entity (such as astate or local government,school district, or prison) thatreceives agricultural programpayments

11.

Privacy Act Notice

1 List first and circle the name of the person whose number you furnish. If onlyone person on a joint account has an SSN, that person’s number must befurnished.2 Circle the minor’s name and furnish the minor’s SSN.3 You must show your individual name, but you may also enter yourbusiness or “DBA” name. You may use either your SSN or EIN (if you haveone).4 List first and circle the name of the legal trust, estate, or pension trust. (Donot furnish the TIN of the personal representative or trustee unless the legalentity itself is not designated in the account title.)

Note: If no name is circled when more than one name islisted, the number will be considered to be that of the firstname listed.

Sole proprietorship orsingle-owner LLC

The owner 3

12.

Part II. Certification

For a joint account, only the person whose TIN is shown inPart I should sign (when required). Exempt recipients, seeExempt from backup withholding on page 2.

You must provide your TIN whether or not you are required to file a tax return. Payers must generally withhold 30% of taxableinterest, dividend, and certain other payments to a payee who does not give a TIN to a payer. Certain penalties may also apply.

To establish to the withholding agent that you are a U.S.person, or resident alien, sign Form W-9. You may berequested to sign by the withholding agent even if items 1, 3,and 5 below indicate otherwise.

Section 6109 of the Internal Revenue Code requires you to provide your correct TIN to persons who must file information returnswith the IRS to report interest, dividends, and certain other income paid to you, mortgage interest you paid, the acquisition orabandonment of secured property, cancellation of debt, or contributions you made to an IRA or Archer MSA. The IRS uses thenumbers for identification purposes and to help verify the accuracy of your tax return. The IRS may also provide this informationto the Department of Justice for civil and criminal litigation, and to cities, states, and the District of Columbia to carry out theirtax laws. We may also disclose this information to other countries under a tax treaty, or to Federal and state agencies to enforceFederal nontax criminal laws and to combat terrorism.

Signature requirements. Complete the certification asindicated in 1 through 5 below.

Memorandum

APPENDIX 2-F

APPROVAL OF INSURANCE DOCUMENTS MEMO

Date:

To: Dominic T. Holzhaus, Principal Deputy City Attorney

From: Dona Blazis, Port Risk Analyst

Subject: APPROVAL OF INSURANCE DOCUMENTS

If in order, please approve as to form and return the attached insurance documents for INSURANCE CO. TYPE OF INS. POLICY NO. POLICY PERIOD

NOTE:


Vendor Add Form This form must be completed by an employee of the City.

Before submitting this form, you must verify this vendor is NOT in FAMIS/ADPICS. • You can verify by tax ID number on screen 9510 or by vendor name on screen 9600. • If vendor IS NOT in FAMIS/ADPICS, this completed form along with completed & signed W9 should be faxed to 570-5099.• If this vendor IS in FAMIS/ADPICS, a VENDOR CHANGE and W9 must be faxed to Penny Manton at 570-6780.

The information in this blue box is required; this form cannot be processed without it. SUBMITTED BY: DEPT: PHONE: EMAIL:

Vendors are generally added within 48 hours of receipt. If there is a compelling reason this needs to be added immediately, check the RUSH box and specify the reason. RUSH REASON:

Company Name (same as line 1 on W9):

DBA Name (same as line 2 on W9): leave blank if not applicable

Federal Tax ID Number (or SSN): required (this number is a fed tax id: ssn: ) Web Address: leave blank if not applicable

Purchase Order Address:

Attn: City:

State: Zip Code: Contact Name:

E-mail: Phone Number: e.g. 562-555-1234

Fax: e.g. 562-555-5678 Toll Free: e.g. 800-555-2468

If ‘remit to’ address is the same as the purchase order address; put SAME in first box only.'Remit to' Address:

Attn: City:

State: Zip Code: Contact Name:

E-mail: Phone Number: e.g. 562-555-1234

Fax: e.g. 562-555-5678 Toll Free: e.g. 800-555-2468

Type of Ownership: Individual Partnership Corporation LLC Nonprofit Government Composition of Ownership (At least 51% of ownership of the organization) (check all that apply) MBE WBE Local DBE Certified SBE Certified Micro State certification number: _________________________________

COMMODITY CODE(S): THIS IS A REQUIRED FIELD (at least one 5-digit code must be entered; look up on screen 1100 in ADPICS)

03-17-08

clear form

Appendix 2-G


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Sticky Note

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2/8/2011

Appendix 3-A Contract Amendment Background Form

Purpose and Instructions: The purpose of the form is to document the rationale for a proposed amendment and the key background information. The completion of this form is required for every contract amendment and prior to submittal of Committee and Board memos for Board Action. The form should be completed in its entirety either by typing or handwriting in the required information. You may also attach alternative documentation that addresses the requested elements if other preferred formats exist. When doing so, check the “attachment” box following each lettered section. In addition, you may use “N/A” for sections that do not apply to your given contract. Upon completion, obtain the required approval by your Division Director and post to EDRMS (in the interim e-mail an electronic copy to Contract Compliance Section).

General Information




Contract Amendment Background

Scope - Provide a brief overview of how the amended contract scope relates to (or differs from) the initial scope along with the specific need it will address. Attach relevant documentation to support the contract amendment, such as the consultant contractor’s proposal / quote. Attachment

Amendment Rationale - Check the applicable box and provide a brief description for amending this contract versus new competitive procurement.

Continuity* Regulatory Phasing Other (explain below) *If the primary reason is cost saving for use of consultant contractor versus a new competitive procurement, provide the cost saving analysis. Attachment

Amendment Snapshot – Provide a summary of the financial and time implications of this amendment, in addition to prior amendments, by completing the section below. Attachment

Appendix 3-A Contract Amendment Background Form (Continued)

Value $

% Change (+/-)*

Initial Contract Value

N/A

+Value of this amendment

+Value of prior amendments

Cumulative Amendment Value

Total Not-to Exceed Value

*Percent of the original contract value

Time Initial Contract term: From_______ to _______ Current contract term From_______ to _______ Estimated % Complete: ______

# of Total Amendments This represents the _____ amendment to this contract.

Prepared By: _______________________________ Date: ______________ Title:_________________________________ Approved By: _______________________________ Date: ______________ Title: Division Director Check here if the individual amendment, or cumulative total of all amendments represent 50% or greater of the original contract value, is more than $500,000, and is not being re-competed. If this box is checked, obtain Executive Director’s signature prior to submitting for BHC action: Approved By: _______________________________ Date: ______________ Title: Executive Director

2/8/2011

Appendix 3-B Contract Change Order Background Form

Purpose and Instructions: The purpose of the form is to document key facts, analyses, and decisions that occurred during the change order review and approval process. The completion of this form is required for every change order and prior to submittal of a corresponding Committee and Board memo for Board Action. The form should be completed in its entirety either by typing or handwriting in the required information. You may also attach alternative documentation that addresses the requested elements if other preferred formats exist. When doing so, check the “attachment” box following each lettered section. In addition, use “N/A” for sections that do not apply to your given contract. Upon completion, obtain the required approval by your Division Director and post to EDRMS (in the interim e-mail an electronic copy to Contract Compliance Section).

General Information




Contract Change Order Background

A. Type of Change: Specify the nature/type of the change order by checking the applicable box(es) below, or provide an attachment. Attachment

Owner enhancement Code Compliance Unforeseen Condition Design Clarification (with unavoidable costs) Errors and Omissions Quantity Adjustment Unused Allowance/Contingency Time Extension Other (provide description): c

B. Change Order Rationale: Briefly document the business case for the change order and the steps followed to determine merit / entitlement in the space provided below, or provide an attachment (i.e., why are we proceeding with the change?). Attachment

C. Change Order Evaluation: Cost Estimate (required for all line item changes over $10,000): Check here if an independent cost estimate was performed and attach the analysis for each line item. If a cost estimate was not performed and/or a decision was made to proceed on a Time and Material (T&M) basis, briefly document the rationale in the space provided below or provide an attachment.

Time Impact / Schedule Analysis (fragnet analysis): Check here if a time impact / schedule analysis was performed and attach the analysis (for all applicable line items) which demonstrates both the time and cost of the impact, as well as the business case for granting any time extensions. If a time impact / schedule analysis was not performed, briefly document the rationale in the space provided below or provide an attachment. Attachment

Appendix 3-B Contract Change Order Background Form (Continued)

Value

$ % Change (+/-)*

Initial Contract Value

N/A

+Value of this change order

+Value of prior change orders

Cumulative Change Order Value

Total Not-to Exceed Value

Value of contract contingency

Value of remaining contingency

*Percent of the original contract value

Time Initial Contract term: From_______ to _______ Current contract term From_______ to _______ Estimated % Complete: ______ Cost of time extensions (if compensable): ____________

# of Total Change Orders This represents the _____ change order to this contract.

Prepared By: _______________________________ Date: ______________ Title:_________________________________ Approved By: _______________________________ Date: ______________ Title: Division Director

Check here if potential damages to POLB were evaluated as a result of any time extensions and attach relevant support. If an evaluation of the damages was not performed, briefly document the rationale in the space provided below or provide an attachment. Attachment

D. Summary of Negotiations: Check here if the change order was negotiated and briefly document the summary of negotiations that took place with the contractor (for all applicable line items), including how elements that were initially deemed unsatisfactory were resolved. If negotiations were deemed unnecessary, document the circumstances which led to this decision in the space provided below or provide an attachment. Attachment

E. Change Order Snapshot: Provide a summary of the financial and time implications of this change order in addition to prior change orders by completing the sections below, or provide an attachment. Attachment

9/23/2010

APPENDIX 3-C PROFESSIONAL SERVICES CONTRACTOR EVALUATION FORM Contractor Name: Project Title: Original Contract Amt: Final Contract Amt: Type of Work: % Complete @ Evaluation: Contract No.: Project Manager: Purchase Order #: Notice to Proceed Date: Date of Award: Actual Completion Date: Scheduled Completion Date: Evaluator: ______________________________

Mark the Applicable Score for Each Element: Superior = 4, Satisfactory = 3, Marginal = 2, Unsatisfactory = 1

Performance Element Superior Satisfactory Marginal Unsatisfactory N/A Knowledge and Compliance with POLB standards Quality of Work Effectiveness of Personnel Compliance with Contract Documents Adherence to Project Schedule / Timely Performance

Quality of Safety Program Working Relationships / Cooperation Staffing of Project Ability to Work within Budget and Cost Controls Compliance with Environmental Regulations Access and Response of Personnel Quality of Written Paperwork / Report Submittals

Subtotals: Superior Satisfactory Marginal Unsatisfactory Overall Evaluation Comments: Explain reasons for any Superior or Unsatisfactory ratings. Use additional page if needed.

Place an “x” in box if additional page is used Distribution: Project File, Contract Compliance


9/23/2010

APPENDIX 3-D CONSTRUCTION CONTRACTOR EVALUATION FORM

Contractor Name: Project Title: Original Contract Amt: Final Contract Amt: Contract No.: Spec No.: Type of Work: % Complete @ Evaluation: Task Order #: Project Manager: Date of Award: Notice to Proceed Date: Actual Completion Date: Scheduled Completion Date: Evaluator: ____________________________

Mark the Applicable Score for Each Element: Superior = 4, Satisfactory = 3, Marginal = 2, Unsatisfactory = 1

Performance Element Superior Satisfactory Marginal Unsatisfactory N/A Knowledge and Compliance with POLB standards Quality of Work Effectiveness of Personnel Compliance with Contract Documents Adherence to Project Schedule / Timely Performance

Quality of Safety Program Working Relationships / Cooperation Staffing of Project Ability to Work within Budget and Cost Controls Compliance with Environmental Regulations Access and Response of Personnel Quality of Written Paperwork / Report Submittals

Subtotals: Superior Satisfactory Marginal Unsatisfactory Overall Evaluation Comments: Explain reasons for any Superior or Unsatisfactory ratings. Use additional page if needed.

Place an “x” in box if additional page is used Distribution: Project File, Contract Compliance


Appendix 4-A

Completion

Date Quick Start Check List #1 - Solicitation Through Contract Award

PREPARE SOLICITATION DOCUMENT - ALL CONTRACTS

Draft solicitation document (spec, SOW, RSOQ, RFQ, RFP or Notice Inviting Bids).

Develop Cost Estimate / Engineer's Estimate.

Develop standard scoring criteria.

Develop risk assessment or other analyses as necessary for the project.

OBTAIN INSURANCE AND SBE REQUIREMENTS - ALL CONTRACTSSend copies of the solicitation document to Risk Management for insurance language and the SBE Program including SBE-1 form for SBE

participation goals (also include SBE-1 Form with the solicitation document).

ADVERTISING & BID/PROPOSAL RECEIPT - ALL CONTRACTSExecute advertising plan (publish solicitation document on websites, Press Telegram, The Network , etc.). Retain proof of advertising

and comprehensive list of all bidders who received solicitation in the project file. Post addendum to the solicitation document on polb.com to answer to all questions received or provide list of Q&A received to all

bidders who received original NIB.

As necessary, hold a Pre-Bid/Pre-proposal conference (mandatory for public works projects) - post Q&A received on polb.comVerify that all proposers have submitted the Contractor Certification Form and that proof of any required licenses was included in each

bid/proposal.

FORMAL CONTRACTSLog and date / time stamp all bids/proposals received; any bids/proposals received after the due date and time should be returned

unopened to the bidder.

CONSTRUCTION CONTRACTSPublicly open bids and read the name of the bidder and the dollar value of the bid aloud; announce the three lowest bidders and the

apparent lowest bidder. Remind 3 lowest bidders to turn in their SBE Commitment Plan (CP) within one business day or GFE by the

third business day.Review all bids for bid irregularities/responsiveness including SBE requirements if applicable. Tabulate the bid results and recommend

the contract be awarded to the lowest responsible bidder. Bidder must submit proof of all licenses (CA State Contractor's License, etc.)

if not submitted in original bid.If bids are higher than Engineer's estimate, all bids may be rejected with Board action. Evaluations explaining the reason of rejections

should be presented to the Board.Upon completed bid analysis, all bids must be presented to Committee for a Notification of Bids Received. After the Notification of Bid

Received, the low bid must be presented to Board for recommendation and conditional approval of contract award. GO TO CONTRACT

PREPARATION CHECKLIST.

PROFESSIONAL SERVICES CONTRACTS

Form a selection committee based on the committee composition guideline addressed in the manual.Each committee member should disclose any conflicts of interest and score proposals based on standardized scoring criteria; retain

score sheets in the project file. SBE CP should be evaluated if applicable. Costs should be evaluated separately from the technical

proposals.Compare the cost proposals on a line-by-line basis and normalize costs across proposals as necessary if certain cost elements are

incomplete or missing in the proposals.Hold clarification meetings, in-person interviews or demos based on a standard list of questions, as necessary. Score interviews/demos

and retain score sheets in project file.Prior to contract award, send all bidders a courtesy thank you for submitting their proposal. If a debriefing is requested, focus on the

requester’s proposal and the selection process and NOT a detailed comparison of the finalists’ proposals.Prepare Contract Procurement Summary Form which summarizes the evaluation committee's final selection decision and rationale. GO

TO CONTRACT PREPARATION CHECKLIST.

2/9/2011


Appendix 4-BCompletion

Date Quick Start Check List #2 - Contract Preparation

ALL CONTRACTSRequest a contract from the City Attorney's Office using the Contract Request Form including attachment of Risk Management's insurance language, proof of

validity of all required licenses, solicitation document, and all Exhibits to be included in the contract (e.g., cost proposal, payment milestones, etc.).City Attorney's Office will email a pdf copy of the contract for vendor signature and notarization. The contract owner should review the contract and

immediately notify the City Attorney’s Office.For informal contracts, obtain a contract number from the Finance Division. Write the contract number provided on the two original contracts and inform Risk

Management of the informal contract number. For formal contracts, the number will be assigned by the Executive Secretary to the BOHC after Board approval

(see formal contracts below).Forward original contracts to vendor along with blank W-9 form for completion (new vendors only). Include cover letter with instructions for signature,

notarization, and completed insurance endorsement forms.Upon receipt of the two original contracts back from vendor, verify that both originals have been signed, notarized and that no changes have been made to the

contract. Risk Management will work with the vendor and the City Attorney's Office to finalize and approve insurance documents.

If necessary, prepare a Capital, Expense or Reimbursable work order (refer to 2.12 and 2.13 of this manual). The Finance Division is available to assist if needed.Upon receipt of the Approval of Insurance Documents memo stamped approved-as-to-sufficiency by RM and approved-as-to-form by the City Attorney's Office,

send contract originals to the Executive Director for signature with attached Approval of Insurance Documents memo. The Executive Director will not sign any

contract without this form attached. Only the Executive Director is authorized to bind a contract, regardless of the dollar amount.For new vendors, submit a completed W-9 form and Vendor Add Form to City Purchasing Division to create a new vendor in ADPICS. Once vendor information

is in ADPICS, a purchase order can be created for the contract amount. Retain the original P.O. in the contract file. Do not send a copy of the purchase order to

the vendor as the back of the P.O. may have terms and conditions that conflict with the terms of the contract.

FORMAL CONTRACTSPrepare Board Committee memo recommending that the Board enter into a contract with the vendor. Submit this memo to the Executive Assistant to the

Deputy Executive Director by noon the Wednesday prior to the Board meeting.Upon Committee approval, prepare memo to the BHC recommending that the Board approve the contract with the vendor and the work order (if needed).

Submit this memo to the Executive Assistant to the Deputy Executive Director by noon the Wednesday prior to the Board meeting. A copy of the contract must

have contractor's signature before Board meeting (except for construction contracts, which are signed after Board approval).Upon Board approval, the Executive Assistant to the BHC will assign a contract number. Write the contract number provided on the two original contracts and

inform Risk Management of the formal contract number.Upon Executive Director's signature, send one copy to the Executive Assistant to the BHC to certify copy as a true and complete copy of the original for the City

Auditor's Office.

Obtain contract number from the Executive Secretary to the Board and write it on the two original contracts.

CONTRACT DISTRIBUTION

Send one contract original to the contractor.

Send one contract original to the Records Center.

Send one scanned copy to Risk Management.

Send one hard copy to Finance with related PO number on the copy.

Send one scanned copy to SBE.

Send one copy to City Auditor (certified copy of formal contracts only).

Send one scanned copy to City Attorney.

Retain one copy in the contract/project file.

2/9/2011


Appendix 4-C

SOLICITATION DOCUMENT CHECKLIST

p Scope of work including expected deliverables, project time limits and milestones

p The required proposal elements, format and number of copies to be provided

p The time, place, and deadline for proposal submission

p Request for trade references (qualifications-based selection only)

p Estimated schedule of activities leading up to contract award

p Proposal evaluation criteria (qualifications-based selection only)

p Instructions that technical and cost proposals should be submitted in separate envelopes (qualifications-

based selection only)

p POLB contact information for inquiries on solicitation document

p Sample contract template with standard terms and conditions

p Insurance requirements including POLB endorsement forms

p SBE program requirements

p Contractor Certification Form with instructions that the form must be returned along with the proposal

p Request that proposers submit evidence that they are licensed to conduct business in California

(corporations only) and must submit evidence of a Long Beach business license if awarded the contract

p Request proposers to list assumptions their proposal/bid is based on if applicable

p Notice that proposers may be required to undergo a financial review depending on insurance levels and

nature of work to be performed

p Statement that any attempt to contact BOHC, CLB or POLB staff prior to contract award may result in

disqualification from bidding process


Appendix 4-D

p Cost Estimate / Engineer's Estimate

p Risk Management insurance language

p SBE / VSBE Goal Form (SBE-1)

p RFP / RSOQ / RFQ / NIB / Construction Specifications and any related amendments

p Applicable SBE / VSBE Commitment Plan (2-P or 2-C)and Good Faith Effort forms (GFE)

p Pre-qualification questionnaire (if applicable)

p Agenda from the pre-proposal / pre-construction meeting

p Sign-in sheet from the pre-proposal / pre-construction meeting

p List of all questions and answers provided to potential proposers

p One copy of each bid / proposal received along with the contractor’s Certification Form.

p Written proposal scoring sheets, with weighted evaluation criteria and signed conflicts of interest statement, along with the summarized / tabulated scoring

results

p For low-bid construction projects, a copy of the bid evaluation matrix

p A list of questions asked during the short-list process

p Oral interview / demo scoring sheets from each committee member and the summarized / tabulated scoring results

p Documentation of professional reference checks performed

p Documentation of the contract negotiation process

p Contract Procurement Summary Form

p Contract Request Form

p Proof of a valid City of Long Beach business license

p Proof of authorization to conduct business in California (printout from the Secretary of State website)

p Board Committee memo

p Board of Harbor Commissioners' memo

p Copy of fully executed contract

p If related to emergency work, justification for the circumstances which constituted an emergency

p Copy of Contract Amendment Background Form(s)

p Copy(ies) of any contract amendments and negotiation documents

p Any correspondence or advice provided by the City Attorney’s office which supports how a particular matter was handled or on how the decision to proceed

was made

The following, as it relates to change orders

p Internal cost estimate and / or thorough evaluation of the contractor’s proposed costs

p Summary of negotiations

p Contractor’s original cost estimate

p Documentation of contractor's claim or settlements

p Copy of Contract Change Order Background Form(s)

p Copy(ies) of the approved change order(s)

p Change order log (cumulative for the entire project)

p Contractor performance evaluation form

CONTRACT FILE DOCUMENTATION CHECKLISTSo

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2/9/2011


Port of Long Beach


Appendix 4-E

Service and Labor Contracts

START: Services Required

Finalize solicitation document including detailed scope of work, SBE and

insurance language (as applicable).

As necessary, hold a Pre-Proposal conference to provide further

clarification and to respond to

questions. Remind proposers that SBE Commitment Plan (CP), if applicable, is due on the same

date proposals/RSOQs are due.

Receive written proposals/RSOQs

and form a selection committee.

As necessary, invite shortlisted proposers for oral interview or

demo. Evaluate SBE CP if necessary.

Enter into cost negotiations and

request contractor to provide

insurance within 30 days.

Advertise solicitation document

(polb.com, internal databases, The

Network, eBid Board, etc.).

If questions are received or changes to scope of work occur, a communication is sent to all proposers via addendums

Selection committee scores the oral

interview/demo. The same team that

evaluated the written proposals/RSOQs

should participate in this step.

Hold clarification meeting(s) with

vendors; request written responses

as appropriate (repeat this step as

necessary).

Has selection committee come to

a decision?

End:start from beginning

Contracting division, City Attorney, SBE and Risk Management division are all involved in providing input and requirements

Go to Contract Preparation

Process Flow

Submit the draft solicitation document to Risk Management (RM) and completed

SBE-1 Form along with the solicitation

document to the SBE Program Office to

determine insurance and SBE

requirements, respectively. RM will

provide specific insurance language to

be included in the solicitation documents

Evaluate proposals and

rank firms based on pre-determined criteria and scoring including SBE CP

if applicable.

Division drafts a solicitation

document (RFP/RSOQ).

As a best practice, a demo script should be provided to each member of the selection committee to control timing and increase consistency.

Has evaluation team come to a

decision?

No

Yes

No

Yes

Prepare “Procurement

Summary Form” and

upload to EDRMS (email to Contract

Compliance Section in the interim).

The following illustrates the contractor solicitation and award process for formal service and labor contracts exceeding $100,000.

If a tie results, cost consideration may be the primary factor

Wednesday, February 09, 2011 Page 1 of 2

Port of Long Beach

Start / End On Page Connector

Document DecisionOff-page

Connector System / Application

Process


Port of Long Beach

Public Works Contracts

START: Construction or

Materials/Supplies/

Equipment Required

Prepare an NIB/RFP/RFQ including SBE and insurance requirements (as

applicable).

Hold Pre-Bid conference in advance

of bid opening to provide further instructions /

expectations and to solicit bidder’s

questions.

Receive sealed bids, log and time / date

stamp upon receipt. Bids received after the due date/time must be

returned unopened.

Open bids and announce three lowest bidders and apparent

lowest bidder at public bid opening.

Remind the three lowest bidders to submit their SBE

CP within one business day or

a GFE within three business days after bid

opening.

Is the apparent low bid responsive / free

of material irregularities?

Request the winning bidder’s performance and

payment bonds, insurance, and signed

contract within 30 days of the notification of contract award

(construction contracts only).


Appendix 4-F

Advertise the NIB/RFP/RFQ

(via newspaper of general circulation, direct mailing, The

Network, polb.com, internal databases, eBid board, etc.).

If questions are received or changes to plan specs occur, addendums should be sent to all plan holders

Analyze all bids for material irregularities and responsiveness

including SBE CP and GFE as applicable. If any questions, consult

with the Contract Compliance Manager

and / or City Attorney’s

Office.

Yes

Inform the next lowest bidder or throw out all

bids and re-bid.

Were all bids thrown out?Yes

No

Program Management, Construction Management, SBE and Risk Management divisions are all involved in providing input and requirements

Send spec to the City Attorney’s Office along

with RM insurance language for review

and approval.

Go to Contract Preparation

Process Flow

No

1

1

The following illustrates the contractor solicitation and award process for low-bid, public works contracts exceeding $100,000. The Port may occasionally have a need for low dollar, limited scope work that falls under $100,000. In these cases, a competitive process should still be in place, however, an informal bid process may be followed whereby three written bids are obtained.

For greater efficiency, this step may be completed simultaneously with the next step. However, advertising of the NIB cannot take place.

Draft specification (“spec”) and Engineer’s

Estimate.

Send final spec to Risk Management

(RM) and send completed SBE-1 Form along with spec to the SBE

Program Office to determine

insurance and SBE requirements,

respectively. RM will provide the

specific insurance language to be included in the

spec.

Prepare “Procurement

Summary Form” and

email to CCS

Input specs into the City Attorney’s

approved specification template.

Prepare Committee Memo to present all bids to BHC for Notification of

Bids Received and recommendation for

conditional approval of contract award.

Prepare memo for Board

approval on all bid rejections


Port of Long Beach




Process


Port of Long Beach

Contract Preparation

All Contract Types

Appendix 4-G

Submit completed “Contract Request

Form” to the City

Attorney’s Office

along with RM insurance

language, proof of required licenses and all relevant attachments.

Forward two original contracts to the contractor along with instructions to

obtain notarized signatures, proof of insurance, and W-9

forms.

Draft BHC committee memo to request

approval to enter into a contract. Submit for

approval.

RM will forward “Insurance Approval

Memo” to City

Attorney’s Office for

approval as-to-form.

Distribute contract copies as follows: one original to contractor, one original to Records, one copy each

for: contract file, RM, Finance, SBE, City

Attorney’s Office and City

Auditor (certified).

END

Submit vendor add form and completed W-9 form to City Purchasing Dept

if new vendor.

From Pre-Solicitation through

Contract Award Flowchart

Draft BHC memo for contract approval.

Upon BHC approval, contract number will

be assigned by Executive Secretary

to the BOHC.

City Attorney’s Office

will return “Insurance

Approval Memo”

stamped approved-as-to-form to RM.

Create P.O. in ADPICS.

Contract value >$100,000?Yes

For greater efficiency, this step may be completed simultaneously with the first step.

If not previously completed, prepare

Work Order if required (capital,

expense or Reimbursable) and

submit for approvals.

Contract Compliance is available to determine the proper contracting vehicle for off-the-shelf purchases of materials, supplies and equipment

Forward copy of the executed contract and

one copy to the Executive Secretary

to the BHC for certification of the City

Auditor’s copy.

Electronic copies are sufficient for RM, SBE and the City Attorney


Office will return one electronic copy.

Send copy of the contract to RM along with vendor contact information (name, title, contact info).

Obtain informal contract number

from Finance Division.

Forward two City Attorney signed contract originals and “Insurance Approval

Memo” to Executive

Director for signature. For informal contracts, include “Procurement Summary

Form”.

RM works with contractor to

finalize insurance as necessary.

Upon receipt of proper insurance

endorsement forms, RM will generate and

stamp “Insurance

Approval Memo”

approved-as-to-sufficiency.

RM will forward the fully approved

“Insurance Approval

Memo” to requesting

division.

No

Contract value >$100,000? No

Yes

CO

NT

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CIT

Y A

TT

OR

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Y &

RIS

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AN

AG

EM

EN

TC

ON

TR

AC

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DM

IN

Send 2 vendor signed /notarized original

contracts to the City Attorney’s Office for

signature

Obtain and include copy of contractor signed / notarized contract with BHC

memo.

For Construction Contracts, NTP must be issued prior to release of payments from PO


Port of Long Beach




Process


Appendix 5-A


July 2009

ETHICS GUIDE FOR LONG BEACH CITY

OFFICIALS & EMPLOYEES

� Ethics � Conflicts of Interest � Financial Disclosure � Accepting Gifts � Use of City Tickets � Political Activities � Post-City Service Restrictions � Open Meeting Laws � Public Records

Prepared by the Office of the Long Beach City Attorney ROBERT E. SHANNON, City Attorney

Appendix 5-B

INTRODUCTION

Thank you for your service and commitment to the citizens of the City of Long Beach. The goal of this Handbook is to increase your awareness of the ethics, conflict of interest and open meeting laws which will govern your service, and to provide you with information about how to seek advice on these matters from the Office of the City Attorney.

Very truly yours,

Robert E. Shannon, City Attorney

ANY TIME YOU NEED ASSISTANCE

The information provided here describes these regulations in general and encourages City employees, officers and commission members to remain aware of potential ethics, conflict of interest and open meeting issues. The law in this area is sometimes complex and legal advice is always dependent on the specific facts of a given situation. Therefore, it may be necessary for you to seek legal advice regarding your specific situation. For additional information please contact:

Office of the City Attorney 333 W. Ocean Boulevard, 11th Floor Long Beach, California 90802 Telephone: (562) 570-2200 Facsimile: (562) 436-1579 E-Mail: [email protected]

This Guide is available at the Long Beach City Attorney’s Web site:

http://www.longbeach.gov/attorney

TABLE OF CONTENTS

Code of Ethics 1 Ethics Training 2 Conflicts of Interests 3 Financial Disclosure 7 Accepting Gifts 12 Use of City Tickets 17 Political Activity 18 Post-City Service Restrictions 20 Open Meeting Laws 21 Public Records 27

1

CODE OF ETHICS

On February 6, 2003, the City Council of the City of Long Beach adopted a Code of Ethics, which applies to City employees, officers and commission members. This Code requires that all employees, officers and commission members shall pledge:

To place the best interests of the City above all

other interests.

To uphold all laws, regulations and policies.

To take no action for the purpose of benefiting the official or employee personally.

To make every effort to avoid a conflict of interest.

To avoid disclosure of confidential information obtained in the performance of his or her duties or in his or her official capacity.

To exercise prudence and good judgment at all times.

To be fair, impartial, and unbiased in the decision-making process.

To treat each other and the public with respect.

2

ETHICS TRAINING

State law now requires that certain City officials participate in ethics training.

Who is Required to Receive Ethics Training?

All elected officials, commission, and advisory board members are required to participate in such training. Failure to complete this requirement will result in dismissal from the board or commission.

How Often is the Training Required?

Two hours of training are required for every two years of service on the commission or advisory board.

What Topics are Included in the Training?

The required topics are general ethical principals, laws relating to personal financial gain by public servants, perks of office, and government transparency laws, among other topics.

How do I Sign up for the Training?

Please contact the Long Beach City Clerk’s Office for details on the City-provided training. Please note that you are responsible for providing a Certificate of Participation in the training, which will be kept on file in the City Clerk’s Office.

Can I Complete the Training On-Line?

Yes. You can go to http://www.localethics.fppc.ca.gov. and follow the direction posted there. Please remember to print out your Certificate of Participation and mail it to the City Clerk’s Office.

3

CONFLICTS OF INTERESTS

Conflict of interest rules exist to reinforce public confidence that City officials, employees and commissioners are acting in the best interests of the public, and not in furtherance of their own self-interests. As a general rule, you should avoid situations where your official actions may affect or appear to affect your private interests, financial or non-financial.

For purposes of this Handbook, reference to “board members” includes City councilmembers, commission members and committee members.

What is a Conflict of Interest?

You have a conflict of interest if your public actions as a City official, employee or board member affect your personal financial interests or the interests of your immediate family members. It does not matter whether the action has a negative or positive effect on the interest. Therefore, state law prohibits you from making, participating in making, or attempting to influence any government decision if it is reasonably foreseeable that the decision will have a material financial effect on any of your economic interests or those of an immediate family member. Decisions Related to Contracts State law prohibits you from being financially interested in any City contract if your duties call on you to participate in any way or at any stage in the approval of the contract. Any participation (including discussion) in the process by which such a contract is developed, negotiated or executed is a violation of the law.

4

CONFLICTS OF INTERESTS How Do I Know If I Have a Conflict?

It can be difficult to determine whether you have a legal conflict of interest pursuant to state law. Therefore, you should always contact the City Attorney’s Office if a question arises. You may have a conflict of interest if:

You are an officer, director, partner, employee, trustee or manager of a company with business before your department or board.

You have an investment of $2,000 or more in a company with business before your department or board.

You have an interest in real property of $2,000 or more and that real property is the subject matter of an item before your department or board. This includes leasehold interests that are longer than a “month-to-month” tenancy.

You own or lease an interest in real property that is located within 500 feet of a property which is the subject matter of a decision before your department or board. (An “interest in real property” does not include a “month-to-month” tenancy.)

You receive any income which totals $500 or more within the prior 12 months, from a person or entity with business before your department or board. Income includes loans or forgiveness of indebtedness.

You receive a gift or gifts totaling $420 or more within the prior 12 months, from a person or entity with business before your department or board (gifts include rebates, discounts, free meals, free tickets or travel).

5

CONFLICTS OF INTERESTS You or someone that is a source of income to you

($500 or more within the prior 12 months) is the subject of a proceeding before your department or board.

As a result of a decision before your department or board your personal finances or those of your immediate family will either increase or decrease in any manner.

Remember that if you are married, one-half of your spouse’s income is deemed to be your income. Therefore, if your spouse has any of the interests described above, you will have a conflict of interest.

The City Attorney will work with you to determine if you have a conflict pursuant to City or state law and to determine whether you must “disqualify” yourself. Please note that the mere presence of one of the interests listed does not necessarily mean that you have a conflict. Since other factors may be involved, if there is any question you should consult with the City Attorney’s Office.

What Are the Remedies for Conflicts?

If a conflict of interest exists, you must be “disqualified” – meaning that you must abstain from making, participating in making, discussing or attempting to use your official position in any way to influence the government decision that might affect that personal interest. (If you are a Councilmember or a Planning Commissioner, you must also leave the room while the issue is being discussed.) Again, the City Attorney’s Office will provide advice concerning the existence of a conflict and if disqualification is required. Further, there are circumstances when your entire board may be disqualified. Please be aware that severe penalties may result for you and the City, if you do not abstain when appropriate.

6

CONFLICTS OF INTERESTS How Do I Disqualify Myself If I Have a Conflict of Interest?

If disqualification on a meeting agenda item is required, you must publicly disclose the interest which is the subject of the potential conflict as well as the fact that you are disqualifying yourself from any participation in the decision. The disclosure may be made orally at the public meeting and/or in writing to the board secretary and must be made a part of the agency’s official records (e.g., the minutes of the meeting.)

7

FINANCIAL DISCLOSURE

State law requires that all cities adopt a Conflict of Interest Code, which requires that designated City employees and officials make a written disclosure of certain financial interests.

What is a Conflict of Interest Code?

A Conflict of Interest Code is a set of rules and regulations adopted pursuant to California’s Political Reform Act. Each Conflict of Interest Code designates positions required to file a Statement of Economic Interests - Form 700, and assigns disclosure categories specifying the types of interests to be reported.

The types of interests you must disclose depend upon the responsibilities of your designated position. The disclosure requirements may include the reporting of investments, business positions, interests in real property, income and other financial interests.

How Do I Know I Must File a Statement of Economic Interests - Form 700?

If you are required to file, the City Clerk will notify you of this fact in writing immediately upon your commencement of service with the City.

Why Do I Have To File a Statement of Economic Interests - Form 700?

California state law requires the filing of Statements of Economic Interests. The Act states that:

“Assets and income of public officials which may be materially affected by their official actions should be disclosed (and in appropriate circumstances the officials should be disqualified from acting in order that conflicts of interest may be avoided).”

8

FINANCIAL DISCLOSURE All elected City officials, board and advisory committee members

must file Statements of Economic Interests. Certain employees holding positions that involve making or participating in the making of decisions, which may foreseeably have a material effect on the employee’s financial interests, must also file.

For more information on this subject, please review the FPPC guide, Your Duty to File, at: http://www.fppc.ca.gov/library/seibook9-04.pdf

When Do I Have To File?

The Statement of Economic Interests - Form 700 must be filed under the following circumstances:

An Initial statement is required within 30 days after the date when an office or position has been added to a newly-adopted or newly-amended conflict of interest code.

An Assuming Office statement is required within 30 days after the date when you take your new position.

Annual statements are required by April 1 of each year, covering the preceding calendar year. If you assumed office on or after October 1st of that year, no annual statement is due until the following April.

A Leaving Office statement is required within 30 days after the date you leave a designated position.

Where Do I Have To File?

The completed Statement of Economic Interests - Form 700 must be received in the City Clerk Department, 333 W. Ocean Boulevard, Long Beach, CA 90802, on or before the filing deadline. Faxes are not accepted, and the Form 700 must include an original signature.

9

FINANCIAL DISCLOSURE How Do I Complete My Statement of Economic Interests?

This depends upon what interests you are required to disclose, and what interests you hold. The City Clerk will supply you with the Form 700 and the appropriate department’s Conflict of Interest Code which outlines your disclosure categories.

Complete the top section of the Cover Page of the Form 700 with your full name, mailing address (may be a business address), and daytime phone number.

- Section #1, Office, Agency or Court: Put the name of the department you work for or your board or commission on the first line. On the second line, if you are in a department that is broken into divisions, please list your division. On the third line, put the name of your position as it appears in the Conflict of Interest Code.

There are a few people who hold more than one designated position. They may file a single “expanded statement,” which discloses all the interests required by them by each of their disclosure categories.

- Section #2: Your jurisdiction is the City of Long Beach.

- Section #3: You will be advised by letter of the type of statement, whether Initial, Assuming, Annual, or Leaving. If Initial, Assuming or Leaving, check the appropriate box and fill in the date.

- Period Covered: For the Annual Statement, remember that you are disclosing information from the previous calendar year. For an Initial or Assuming statement, you are disclosing information from the year prior to your appointment date.

10

FINANCIAL DISCLOSURE Carefully review your disclosure category to determine if

you have reportable interests.

Read the instructions for each schedule of the Form 700, and be sure to use the appropriate schedule for each type of interest you must report. Put your name on each schedule you complete.

When you have completed the appropriate schedule(s), go back to the Cover Page of the Form 700. Go to:

- Section #4, Schedule Summary: If you have disclosed reportable interests on any of the schedules, attach them to the Cover Page. Please check the appropriate box or boxes in Section #4. You are confirming that one or more schedules are attached to the cover page and contain information that you are required by law to disclose.

- You may have no interests of the type you are required to disclose, according to your conflict of interest code. If you do not complete any schedules, check the “No Reportable Interests” box and file only the completed and signed cover page with the City Clerk Department.

- Indicate the total number of pages completed including the Cover Page.

- Section #5, Verification: You must date and sign the cover page. The Form 700 cannot be accepted without your original signature.

Who Will See My Form?

Once filed, the Form 700 - Statement of Economic Interests is a public document, and must be made available to the public on request. Filers must sign the Form 700 under penalty of perjury.

11

FINANCIAL DISCLOSURE What Else Should I Know?

FILE ON TIME! Late filers may face fines or other penalties. Persons who do not file within 30 days of specific written notice provided by the City Clerk may be removed from their positions.

Where Do I Go For Help?

Questions relating to the City of Long Beach’s Conflict of Interest Code and local filing obligations should be directed to the City Clerk. Questions of a legal nature may be directed to the Office of the City Attorney.

An interactive version of the Statement of Economic Interests - Form 700 and more information relating the Political Reform Act is available from the Fair Political Practices Commission (FPPC) website at www.fppc.ca.gov/. You may also contact the Fair Political Practices Commission’s toll free help line at (866) 275-3772. For more detailed information, see How Do I Get Advice From the FPPC? at: http://www.fppc.ca.gov/pdf/advice.pdf

12

ACCEPTING GIFTS

The state’s Political Reform Act regulates your receipt of certain gifts. These laws apply to all persons required to file a Statement of Economic Interests - Form 700. It is important for you to be familiar with these laws because accepting a prohibited gift may subject you to penalties and may require the City to void contracts if a conflict of interest has occurred.

What is a Gift?

A “gift” is anything of value that you receive for which you do not provide monetary or other consideration of equal or greater value. A gift may include meals, tickets to sporting events, and rebates or discounts in the price of anything of value unless the rebate or discount is made in the regular course of business to any member of the public without regard to official status. Any official who claims that he or she did not receive a gift because he or she provided consideration has the burden of proving that the consideration is worth as much as or more than the gift.

Important Note For City Employees in City Manager Departments

City employees working in departments under the City Manager’s jurisdiction are subject to restrictions on the acceptance of gifts in addition to those set forth below. Such employees may not accept passes or tickets to recreational or entertainment events, unless they are assigned to attend such events as part of their duties. Further, they may not accept gifts of consumable goods, such as food, drink and other products provided by someone actually or potentially involved with business with the City.

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ACCEPTING GIFTS Gift Restrictions for City Officials and Board Members

You may not accept any gift intended to influence you in the performance of your official duties. In addition, those persons who are required to file statements of economic interests may not accept a gift or combination of gifts during the calendar year from a single source with a total value that exceeds $420 if the gift is required to be reported on your statement of economic interests. A gift is required to be reported if the donor is described as a source of income in your agency’s Conflict of Interest Code.

Accepting Honoraria

Honoraria are gifts or payments received for speaking engagements, etc. There are complex regulations governing when honoraria may be accepted, so please contact the City Attorney’s Office prior to accepting any honorarium.

Public Disclosure of Gifts

You must publicly disclose a gift you receive and its value if:

the donor is a source described in your agency’s Conflict of Interest Code; and

the total value of all gifts you received from that source during the calendar year is at least $50.

If the exact dollar amount of a gift is unknown, you must report a good faith estimate of the item’s fair market value on your statement of economic interests. Reporting the value as “over $50” or “value unknown” is not adequate disclosure. This disclosure should be made on your Statement of Economic Interests - Form 700.

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ACCEPTING GIFTS Exceptions to the Gift Limits

Items listed below are not subject to City or state gift limitations, and, if received, need not be disclosed on your statement of economic interests, except where noted.

Gifts not used and returned or donated to charity or the City without being claimed as a tax deduction within thirty (30) days after acceptance.

Tickets to a fundraising event for a tax exempt non-profit organization, or to a political fundraising event.

Gifts from family members (spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother or sister-in-law, nephew, niece, aunt, uncle, first cousin, or the spouse of any of these persons) or a partner in a bona fide dating relationship as long as they are not acting as intermediaries for restricted sources.

Gifts to you or an immediate family member in connection with a non-recurring ceremonial event (e.g., wedding, bar mitzvah) valued at no more than $100.

Informational material such as books, reports, pamphlets, calendars, seminars, or informational conferences exclusively for official or office use and valued at less than $250. (Note: travel is never informational material.)

Items received from your union; food and beverage from another union if you are a member of a union.

Personalized plaques and trophies valued at less than $250.

Meals and lodging offered in an individual’s home.

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ACCEPTING GIFTS Meals provided at an event at which you speak,

participate in a seminar, or provide a similar service.

Meals paid for by a local, state, federal, or foreign governmental agency.

Inheritances and bequests. Are Meals Considered Gifts?

Yes. A meal is a gift, unless one of the exceptions to the gift limitation regulations applies. For example, a meal given to an official at an event at which the official gives a speech, participates in a panel or seminar, or provides a similar service is not considered a gift if the meal is consumed on the day of the event. A meal provided to an official by an individual in his or her home when the individual or a member of the individual’s immediate family (an individual’s spouse and dependent children) is present is also not considered a gift.

Are Invitations to Events Considered Gifts?

Yes. An invitation or a ticket to an event is considered a gift, unless it is a political fundraiser or a fundraiser for an organization exempt from taxation (i.e., a charitable organization). If the event is not exempt, the reportable value of the invitation or ticket is generally its face value. If there is no face value, the reportable value is the cost to the donor. It is your responsibility to contact the donor to ascertain the total per-person cost of the event. In other words, you must ask the person or entity hosting the event to determine your pro-rata share of the total cost, including food, beverages, entertainment, decorations, etc. As discussed below, if you give the invitation or ticket to someone else, you must still report it as a gift to you. In addition, if you take a guest with you to the event, you must report the value of two invitations/tickets. If a ticket or invitation is discarded or unused, it is not considered a gift.

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ACCEPTING GIFTS If a Gift is Given Away, Does it Still Count As A Gift?

Yes. If you receive a gift and then give it to someone else or throw it away, it is still considered a gift to you.

Gifts of Travel are Restricted

Generally, you may not accept reimbursement for travel and related expenses from sources other than the City of Long Beach if traveling on official duty. Some exceptions apply, and you should contact the City Attorney’s Office for advice about how to proceed if such travel is offered. It is important to get advice, because if an outside entity pays for your travel, the travel must meet state guidelines, and you will have public disclosure requirements.

Travel that is offered to you as a gift is subject to the gift limits - even if offered to you in your personal life outside the scope of your official duties. In some cases, you may be prohibited from accepting a “gift of travel.” For example, City officials may not accept a gift of travel from any transportation company, included, but not limited to, airlines, railroads, bus and shipping companies.

Exemptions to the gift limits may apply for certain types of travel offered to you depending on the destination and whether you are providing a service, such as making a speech, in exchange for the travel. For information, please contact the Office of the City Attorney.

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USE OF CITY TICKETS

At various times, the City receives free tickets to sporting or entertainment events, either pursuant to a City contract or a donation from the event’s sponsor. As a City official or employee, you may be offered the use of such tickets. However, you should be aware there are restrictions on who can use such tickets.

Can I Use City Tickets to Events?

Yes, however, your attendance at the event must (1) be authorized by the City’s ticket policy, located on the City’s website and (2) must serve a governmental or public purpose.

If I Use the Tickets, What Do I Have to Do?

Any use of City tickets will require the user to fill out a “Form 802” within 30 days of the event. This form, which can be obtained from the City Manager’s Office, lists the official’s name, the event and the governmental or public purpose that was served by attendance at the event. The executed Form 802 must then be returned to the City, so that it can be made available to the public on the City’s website.

For more information on the City’s ticket policy, see:

http://www.longbeach.gov/hr/policies/use_of_tickets_and_passes.asp

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POLITICAL ACTIVITY

Laws governing the political activity of City officials have been established to: (1) safeguard public resources; (2) ensure the government remains nonpartisan and neutral in election matters; and (3) protect City employees from pressure to support or oppose candidates or ballot measures.

What Is Prohibited Political Activity?

You may not:

use or authorize the use of City offices, stationery, telephones, vehicles, equipment or any other City property for any campaign activity;

engage in fundraising or other campaign activities during hours for which you are paid to conduct City business;

knowingly solicit contributions for or against a political candidate or ballot measure from any City official or employee. Soliciting a contribution from the spouse of a City officer or employee is permissible so long as it is not a subterfuge for soliciting the City employee;

permit yourself to be solicited for a campaign contribution by another City official or employee;

receive, deliver, or attempt to deliver a political contribution in City Hall, any City office building, or in any office for which the City pays the majority of the rent.

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POLITICAL ACTIVITY What Is Permissible Political Activity?

You may:

perform volunteer work, endorse* candidates, and take a position on ballot measures, as long as these activities do not involve the use of City time, property, facilities or equipment;

use your own funds to make political contributions, subject to applicable laws;

solicit political contributions from persons other than City officials and employees on behalf of candidates or ballot measures.

use City resources to provide unbiased, balanced, and factual information about the purposes, provisions and estimated impact of City, state and school district bond issues and ballot measures, as long as all views on the subject are equally presented. (Remember, however, that City funds may not be spent to urge the passage or defeat of any ballot measure.)

*City officials should make clear that they are acting as individuals and take all steps to avoid giving the impression that the City supports the candidate.

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POST-CITY SERVICE RESTRICTIONS

To prevent former City officials, employees and board members from exercising, or appearing to exercise, improper influence over City decision-making, City law establishes certain “revolving door” limits on their attempts to influence City decisions after they leave City service. These restrictions apply to you only if you are compensated for these activities.

The One- Year Restriction

All former City employees, officials and board members must observe a one-year ban on directly communicating, for compensation, with their former agency for the purpose of attempting to influence action on any matter pending before that agency. (Mayors and City Councilmembers may not communicate, for compensation, with any City agency for the purpose of influencing action on any pending matter.)

Exceptions to the One-Year Restriction

Exceptions to the restrictions occur under limited circumstances, including:

if your communication is made when you are an elected or appointed employee or officer of another public agency; or

if your communication is made when representing yourself, in your individual capacity, in connection with a matter before the agency.

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OPEN MEETING LAWS

Meetings of the City Council and nearly all of the City’s boards, commissions and committees are subject to extensive regulations known as the Brown Act (the “Act”), which are designed to ensure that all deliberations and decisions of City agencies take place in public. It is important for City councilmembers and board members to understand these requirements, because a violation may either void the proposed action or subject the board members to criminal liability.

What Bodies Are Covered by the Brown Act?

The Act governs the meetings of all local “legislative bodies,” that is, all multimember councils, boards, commissions, committees and the like of the City. Only bodies created by charter, ordinance or the minute order of the City Council are covered by the Act.

Committees May Also Be Covered

The Act also governs the meetings of “standing committees” (those which have continued responsibility over a particular subject matter, as well as those with fixed meeting schedules) of the City’s boards. It may not include temporary advisory committees (or “ad hoc” committees) which consist solely of less than a quorum of the members of the board, but the City Attorney’s Office should be consulted. These will typically be committees of two members (of a five-member board) assigned to investigate and report back on a single issue.

What is a Meeting?

A “meeting” of a board includes a gathering of at least a majority of the members (i.e., a quorum) at the same time and in the same place to hear, discuss or act on one or more matters under the jurisdiction of the board.

Such meetings may lawfully be held only if the notice and other requirements discussed below are followed.

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OPEN MEETING LAWS Informal, social gatherings of board members are not meetings,

and need not comply with the Act, as long as there is no discussion of any subject matter under the board’s jurisdiction. If these informal gatherings will involve discussions among a majority of the members relating to the board’s official business, the meeting should be properly noticed, and an agenda of the business items that will be discussed must be posted. The public must be allowed to attend and participate.

The Act prohibits the use of direct or indirect communications, intermediaries or technical devices used by a majority of a board to assist them in arriving at any decision, which is called a “serial meeting.” For instance, the Chair may not call two other members of a five member board to discuss an agenda item. Nor may one member contact a second member, who then calls a third member. The same is true for the use of forwarded e-mails, blanket faxes and the like for communication among a majority of members.

May a Majority of Board Members Attend a Conference or a Meeting of a Private Group?

Members may attend a conference or a meeting of a private group (e.g., a homeowner association), even if the conference or meeting will discuss matters of general interest to the community. However, a majority of the members may attend such an event at the same time only if:

The conference or meeting is open to attendance by the public;

If the event is a meeting of a private group, it has been publicized; and

The members do not discuss among themselves, other than as part of the scheduled program, business that is within the subject matter jurisdiction of the board.

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OPEN MEETING LAWS Otherwise, a conference attended by a majority of members must

be open to the public. The Act does not require the organizers to allow members of the public to attend free of charge if others are charged an admission fee.

What Are the Act’s Notice and Agenda Require- ments?

Requirements for Regular Meetings

The time and place for regular board meetings are established by ordinance, resolution or rules of order. They can be changed by similar formal action.

The agenda of a regular meeting of a board must be posted at least 72 hours before the start of the meeting. With the exceptions described below, all matters that will be discussed or acted on by the board must be listed on the agenda.

Requirements for Special Meetings

A “special meeting” of a board may be called by posting a notice/agenda and by delivering (by mail or personal delivery) the notice/agenda to all members and to all media outlets that have requested to be so notified 24 hours before the meeting. The notice/agenda must state the place and time of the meeting, as well as the matters that will be discussed and/or decided.

Exceptions to the Agenda Requirement

Under almost all circumstances, a matter may not be discussed at board meetings unless it is listed on the agenda. A board may discuss a matter that is not on the agenda at a regular meeting only if one of the following requirements are met:

By majority vote, the board determines that the issue to be discussed constitutes an emergency. This discussion must be held in open session.

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OPEN MEETING LAWS By a two-thirds vote of the entire membership, the

board determines that there is a need to act immediately, that the board’s consideration of the matter cannot await the next meeting of the board and that the need for immediate action arose after the posting of the agenda.

What Information Must an Agenda Contain?

The agenda must list all of the matters that will be considered at the meeting. Each item on the agenda should be described by a brief but informative summary of the nature of the matter to be discussed and/or decided. That description should inform interested members of the public about the matter so that they can decide whether to attend and participate.

What Rights Do the Public Have at Meetings?

Except when closed sessions are permitted (see below), all board meetings must be held in public. Members of the public who choose to do so must be allowed to attend; they may not be asked to sign-in or provide any information as a condition of attending. Also, members of the public must be allowed to record a meeting on a video or audio tape or to broadcast the proceedings, unless the board makes a reasonable finding that the activity would disrupt the meeting.

Members of the public must be allowed to present testimony or otherwise address a board about each item on the agenda. A board may not act on an agenda item until it has allowed for public comment on that item. At regular meetings, the public must also be given an opportunity to address the board on any matter under its jurisdiction, even if the matter is not on the agenda. Boards may adopt reasonable rules governing the amount of time for such public comment on each item on the agenda as well as the time each member of the public will be allowed to speak. The public may discuss information relating to specific matters and must be allowed to criticize the policies, procedures or programs of the agency. However, disruptions of a meeting need not be tolerated.

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OPEN MEETING LAWS Meetings may not be held in facilities which are inaccessible to

disabled persons. If a board holds a meeting in an unusual location, such as a restaurant, the public must be allowed to attend without the need to pay any price for entry (e.g., if the meeting is held in a restaurant, they must be able to attend without buying lunch). They must be able to hear the proceedings and must be allowed to present public testimony.

Under What Circum- stances May Closed Sessions Be Held?

Under certain circumstances specifically allowed by the Act, a board is allowed to meet in closed session. If a meeting is closed to the public, it is not permissible to allow some interested persons to attend while denying access to others. Generally, the only persons who may attend closed sessions are the members of the board and any City staff that is needed to assist the board in its deliberations. Persons without official roles should not attend.

In order for a board to be able to meet in closed session, the item must be listed on the agenda, or one of the exceptions to the agenda requirement must be applicable. Such exceptions are extremely limited, and should not be utilized without first receiving advice from the City Attorney’s Office. These exceptions are:

personnel discipline and evaluations

discussion of pending or threatened litigation

real estate negotiations

labor negotiations

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OPEN MEETING LAWS What Are the Penalties for Violating the Brown Act?

It is a misdemeanor for a member of a board to attend a meeting at which action is taken in violation of the Brown Act, if the member intends to deprive the public of information to which the member knows (or has reason to know) the public is entitled.

Violations of the Act may also result in the issuance of injunctions and writs of mandate to correct violations, prevent future violations, or void actions taken by a board in violation of the Act.

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PUBLIC RECORDS

California law requires that, with very few exceptions, all records of the City be made available for public inspection upon request.

What Records Must Be Made Available for Public Inspection?

All written notes, memos, letters and electronic records (such as e-mails and documents saved on computer drives) must be copied and made available to the public upon request.

What If I Am Not Aware That the City Kept My Memo or E-mail?

The law requires disclosure of a record, even if the sender is unaware that it was retained in the City’s files. Therefore, treat all correspondence with the City as if it were immediately available to the public.

Appendix 5-C


Appendix 5‐DUseful Web Links

1. Link to Insurance Special Endorsement Forms on polb.com: http://www.polb.com/economics/contractors/forms_permits/insurance.asp

2. Link to CLB Employee Code of Conduct:http://www.longbeach.gov/civica/filebank/blobdload.asp?BlobID=17608

3. Link to CLB Charter:http://library2.municode.com/default‐now/home.htm?infobase=16854&doc_action=whatsnew

4. Link to CLB Municipal Code:http://library.municode.com/index.aspx?clientId=16115&stateId=5&stateName=California

5. Link to California Public Contracting Code:http://law.justia.com/california/codes/pcc.html

6. Link to California Government Code:http://www.lawserver.com/law/state/california/codes/california_government_code

7. Link to Department of Industrial Relations Prequalification Procedures:http://www.dir.ca.gov/prequal.htm

9/23/2010