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120City of Anaheim Administrative Regulation CHAPTER 1 - ADMINISTRATIVE Subject: Execution and A.R. 120 Administration of Agreements Issue Date: June 17, 1991 Revised: Aug. 2, 1995 Sept. 17, 2003 June 1, 2011 Oct. 2, 2013 May 6, 2021 January 29, 2025 Page (1) of (5) Purpose: The purpose of this regulation is to establish a policy concerning the execution and administration of agreements other than public works construction contracts and purchasing agreements. Procedure: Agreement Approval: The City Manager may enter into and amend agreements, provided the agreement is in conformance with Council Policies. If the total compensation payable under the agreement does not exceed $200,000, City Council approval is not required. If the compensation payable under an agreement exceeds $200,000, it will be placed on the City Council Agenda for approval. In addition, if the combined fees payable to a consultant under multiple contracts and/or agreements exceed $500,000 during any five (5) year period, the agreement or amendment that causes this monetary threshold to be exceeded will be placed on the City Council Agenda for approval. Pursuant to City Council Authorization the City Manager has delegated authority to each Executive Manager (Department Head) to enter into, ratify and amend agreements on behalf of the City in conformance with Council Policies provided i) the total compensation payable under any such agreement, or amendment, does not exceed $25,000 and ii) the total compensation payable does not exceed $75,000 in any five (5) year period. This authority does not extend to agreements for the purchase of supplies or materials, which must be processed through the Purchasing Agent or City Manager under Anaheim Municipal Code Section 1.04.240. For minor projects within their authority, Department Heads shall comply with the provisions of Council Policy 4.1, which includes contacting at least three (3) qualified consultants and requesting proposals prior to entering into an agreement. City of Anaheim Administrative Regulation 120 Page (2) of (5) Any department that uses the service of a consultant or service provider shall present the terms of the proposed agreement or amendment to the City Attorney so that the City Attorney can properly document the agreement of the parties. Once an agreement has been finalized, the City Attorney will transmit the agreement to the responsible department who shall make arrangements to obtain signatures of the other parties on one (1) original agreement/amendment prior to submitting the original agreement/amendment with all applicable insurance/bond documents to the City Attorney for final approval. Once "Approved as to Form" by the City Attorney, the City Attorney shall transmit the approved documents to the responsible department for submission to the City Council or City Manager for consideration, if applicable. The responsible department will transmit the executed agreement to the appropriate entity for approval. Transmittals shall include the following information: CITY COUNCIL 1. Staff report according to A.R. 105. 2. One (1) original agreement/amendment (executed by the consultant/other party(ies), "Approved as to Form" by the City Attorney and containing a signature line for City Clerk attestation). 3. Insurance documentation (certificates/endorsements) and bonds, "Approved as to Form" by the City Attorney. CITY MANAGER 1. Agreement Summary Form* for City Manager approval (found on the Insider; Attachment A). 2. One (1) original agreement/amendment (executed by the consultant/other party(ies), "Approved as to Form" by the City Attorney and containing a signature line for City Clerk attestation). 3. Insurance documentation (certificates/endorsements) and bonds, "Approved as to Form" by the City Attorney. *Agreement Summary Forms must be signed by the Department Head. Department Heads may delegate signature authority to a manager by submitting written authorization to the City Manager. Agreements/Amendments approved and executed by the Mayor, City Manager or Department Head and attested by the City Clerk shall be submitted to the City Clerk's Office, who will retain the original. The City Clerk's Office will process and distribute an electronic copy of an agreement/amendment, upon verification of insurance compliance. The department responsible for administering the contract shall forward one fully executed copy of the contract to the consultant/other party(ies). City of Anaheim Administrative Regulation 120 Page (3) of (5) The City Clerk will send a monthly insurance expiration report to each department advising of the consultants who have not yet completed insurance requirements or required renewals. The Contract Administrator shall notify the City Clerk's Office within thirty (30) days of expiration/termination and completion of agreement. Web Posting: When the City Manager approves a professional service agreement valued over $25,000, the City Manager's Office will post this information within 72 hours of the agreement being finalized to the City's Professional Services Agreement web page along with notification to the City Council. When a Department Head executes a contract, it must be logged in the City's database to facilitate annual reporting to the City Council. Compliance with the web posting provisions is not necessary when the City Council has authorized the City Manager or a Department Head to execute a specific agreement for a specific amount during a City Council meeting. However, information on all executed agreements must be submitted to the City Manager's Office as noted above. Tracking and Monitoring: Once the agreement is executed, the responsible department will record a signed copy of the agreement, along with all pertinent information and supporting documents within the City's Contract Management System to enable tracking and reporting, and to allow eventual payments against the agreement. The City's Finance Department will review all new contracts to ensure proper recording of approved agreements and to establish payment methods for invoices against the agreement. Payments for services may only be issued for agreements registered within the Contract Management System. It is the responsibility of the contract administrator, or designee, to review and monitor consultant activities to ensure complete performance of their agreements, track funding availability, and verify the accuracy and completeness of invoices submitted, as applicable, to the deliverables and/or milestones specified in the agreement. Responsibility: It shall be the responsibility of Department Heads to negotiate and administer agreements dealing with their department functions. The responsible department shall take all reasonable steps to ensure agreements include the following, as applicable: 1. A clear description of services to be performed or the problem to be solved. (If a problem cannot be clearly delineated, the department must consider whether the City of Anaheim Administrative Regulation 120 Page (4) of (5) problem is sufficiently understood or if the use of a consultant is appropriate). The agreement must specifically identify in realistic terms what the consultant is to accomplish, including any desired approach to the problem; practical, policy, technological, and legal limitations; specific questions to be answered; the manner in which the work is to be done; a description of the items to be delivered and measurable results they are required to achieve; the format and number of copies to be made of the completed reports; and the extent and nature of the assistance and cooperation that will be available to the consultant from the City. 2. Time schedules, including dates for commencement of performance and submission of progress reports, if any, and date of completion. Manner of progress payments, whether and to what extent they will be allowed, and, if appropriate, known or estimated budgetary limitations on the contract price. 4. Dispute resolution clause that outlines the steps to be taken by each party in the event a dispute arises. 5. Subcontractor usage clause that requires City's written approval prior to a consultant using a subcontractor. 6. Final meeting requirements between the contractor and department management, when the contractor is to present his or her findings, conclusions, and recommendations, when applicable. 7. Final report requirements that require the consultant to submit a comprehensive final report, when applicable. It shall be the responsibility of each responsible department to monitor and enforce compliance of insurance requirements for each agreement overseen by their department. This includes recording expiration dates of insurance in the City's Contract Management System and submitting renewal documents to ensure continuous coverage throughout the term of the agreement. As deemed appropriate, or per the request or recommendation of the offices of the City Manager, Internal Audit, City Attorney, Finance or Risk Management, responsible departments shall request to perform periodic compliance audits and reviews of contractors' financial records. Where the departments are authorized to execute agreements, it shall be the responsibility of the department to provide, each month, a listing of all such agreements to the City Manager's Office, which shall be retained for reporting purposes. Attachments: A. Agreement Summary Sheet for Agreements Executed by the City Manager (to be submitted with agreements for professional services to be signed by the City Manager) City of Anaheim Administrative Regulation 120 Page (5) of (5) B. Agreement Award and Tracking Summary (to be used only when the agreement has been signed by an authorized Department Head and the value does not exceed $25,000) These forms may be modified from time to time. The most current version will always be posted on the Insider. ATTACHMENT: A City Manager Agreement Summary Sheets Please allow a minimum of 5 business days for all requests to be processed. This timeline is necessary to ensure adequate review. Requests seeking to be processed in less than 5 business days may result in delays. Information submitted in these forms will be posted on the City's website and placed on the monthly list of Professional Services Agreements executed by the City Manager. The monthly list is presented to the City Council at the second Council Meeting of each month (effective October 24, 2023). Table of Contents COVER SHEET FOR AGREEMENTS EXECUTED BY THE CITY MANAGER .................................................... 3 REQUIRED. The cover sheet must be completed and submitted along with the applicable agreement form. Please ensure that the Department Head reviews and approves the forms before submitting to the City Manager's Office. The City Manager is authorized by the City Council (April 27, 2021) to execute, ratify and amend contracts and agreements where the compensation payable under the contract does not exceed $200,000. If the compensation payable under an agreement exceeds $200,000, it shall be placed on the City Council agenda for approval. If the combined fees payable to a consultant under multiple contracts (citywide) exceed $500,000 during any five (5) year period, the contract will be placed on the City Council agenda for approval. AMENDMENTS TO PROFESSIONAL SERVICE AGREEMENTS..........................................................................5 If the fees for the renewed contract do not exceed $200,000, the City Manager may execute the contract. If the fees for the renewed contract exceed $200,000, the request to renew the agreement will be placed on the City Council Agenda for approval. In addition, if the combined fees payable to a consultant under multiple contracts and/or agreements exceed $500,000 during any five (5) year period, the contract will be placed on the City Council Agenda for approval. SOLE -SOURCE AGREEMENTS.........................................................................................................................................6 The City Manager's Authority to enter into agreements where the consultant is selected without receiving multiple proposals is up to $50,000. Any agreement valued at over $50,000 that did not solicit multiple proposals must be approved by the City Council. Departments must state why a contract is not subject to bid. City Executive Managers (department heads) are authorized to execute, ratify, and amend contracts involving fees of $25,000 or less if proposals are solicited. The City Manager is authorized to waive this requirement if the department head demonstrates that there were not three (3) qualified consultants available to submit a proposal. All $25,000 department head sole -source agreements must obtain approval/waiver from the City Manager if proposals were not solicited. GRANTAGREEMENTS.......................................................................................................................................................7 The City Manager is authorized to submit and ratify submissions of grant applications on behalf of the City and to execute agreements and other documents necessary to procure and utilize grant funds, provided the total compensation payable under any such agreement does not exceed $200,000. SHORT-TERM LEASE/LICENSE AGREEMENTS........................................................................................................7 The City Manager is authorized to enter into License Agreements or similar instruments allowing for the temporary use of a real property asset owned by the City. The term of the agreement shall not exceed one (1) year and should include payment of a reasonable license fee as determined by the City Manager. The City Manager may waive the license fee if the proposed use of the real property is for the benefit of a City department, project, or program. AGREEMENTS APPROVED BY CITY COUNCIL........................................................................................................7 Agreements approved by the City Council shall be submitted to the City Clerk's Office. The City Manager's Office will only present agreements to the City Manager for signature if all necessary signatures have been obtained. The City Manager must be the final signature before the agreement is returned to the City Clerk's Office for attestation. LL�lj I Agreement #: ,� COVER SHEET FOR AGREEMENTS EXECUTED ���-i BY THE CITY MANAGER This cover sheet must be completed and submitted along with the applicable agreement form, agreement, and any other supporting documentation. Please allow a minimum of 5 business days for your request to be processed. This timeline is necessary to ensure adequate review. Requests seeking to be processed in less than 5 business days may result in delays. Department Information Department: Contractor Administrator: Name Phone Number Reviewed and approved by: Director's Name Submitted to CMO on: Date Contractor/Vendor Information Business Name: Description of services to be provided (please be specific): Budget Information Was this agreement anticipated in the approved budget: Yes No If NO, please explain: What is the funding source: General Fund Restricted Name of Fund Other Director's Signature CMO USE ONLY Received on: Reviewer: Date Name Review completed on: _ Signed by CM on: _ _ _ Review Initials: Date Date Agreement #: NEW PROFESSIONAL SERVICES AGREEMENT A. Is this the first time the City has entered into an agreement with this contractor within the last 5 years: Yes No i. If YES, please enter the value of the proposed Agreement with the contractor including all optional renewals and when it will expire: (Value of Proposed Agreement) (Expiration Date) *The City Manager's authority is $200,000 annually or $500,000 during any five-year period for the some consultant. B. List all other contracts the City has entered into with this consultant in the last five (5) years, including a description of each contract and its value and the cumulative value of all contracts with that consultant Contract Description AGR # Date Authorized by City Manager or City Council Value 1. $ 2. $ 3. $ 4. $ Proposed Contract that you are requesting to be signed today (Total): *If the value of the proposed contract exceeds $200,000, the agreement must be approved by the City Council. $ Cumulative Total of all contracts, including the proposed contract:. $ 0.00 C. Are there renewal options? If so, specify: (i.e. with an option to renew for three additional one-year renewals for a cumulative NTE of $____) D. Did the department solicit proposals from a minimum of three (3) qualified consultants: Yes No ii. If YES, how many proposals were received: (enter quantity) iii. If NO, please go to page 6 and fill out the sole source agreement waiver sheet 4 Agreement #: AMENDMENTS TO PROFESSIONAL SERVICE AGREEMENT A. Please explain what is being amended: Term Extension NTE Amount Increase *If NTE Amount Increase amendment is requested, please answer Question B. Other (e.g. clerical change, scope of work) B. If your department is requesting an increase in the NTE amount, please list all other contracts the City has entered into with this consultant in the last five (5) years, including a description of each contract and its value and the cumulative value of all contracts with that consultant. Contract Description AGR # Date Authorized by City Manager or City Council Value 1. $ 2. $ 3. $ 4. $ Proposed Contract that you are requesting to be signed today (Total): *If the total value of the proposed contract exceeds $200,000, the agreement must be approved by the City Council. $ Cumulative Total of all contracts, including the proposed contract: $ o.00 i. Did you solicit bids when you entered into the previous agreements: Yes No *The City Monaaer's Authority to enter into oareements where the consultant is selected without soliciting bids is up to $50,000. Any agreement valued at over $50,000 that did not solicit multiple proposals must be approved by the City Council. If NO, please attach the approved sole -source waiver signed by the City Manager to this sheet. If NO and approved by the City Council, please attach the staff report to this sheet and provide the Council meeting date below: Council Date: Agreement #: SOLE -SOURCE AGREEMENT A. Explain why you are requesting a sole -source waiver to utilize the consultant without receiving bids: B. If this contract is not subject to bid, state why: C. Please check the box below to confirm you are requesting a sole -source waiver to be approved by the City Manager: Yes Approved by City Manager: D. Is this the first time the City has entered into an agreement with this contractor within the last 5 years: Yes No iv. If YES, please enter the value of the proposed Agreement with the contractor and when it will expire: (Value of Proposed Agreement including all optional renewals) (Expiration Date) E. List all other contracts the City has entered into with this consultant in the last five (5) years, including a description of each contract and its value and the cumulative value of all contracts with that consultant Contract Description AGR # Date Authorized by City Manager or City Council Value 1. $ 2. $ 3. $ 4. $ Proposed Contract that you are requesting to be signed today (Total): *If the total value of the proposed contract exceeds $50,000, the agreement must be approved by City Council. $ Cumulative Total of all contracts, including the proposed contract: $ 0.00 E. Are there renewal options? If so, specify: (i.e. Option to renew for three additional one-year terms for a cumulative NTE of $.... J Agreement #: GRANTAGREEMENT Grant Amount: Name of Grant: Granting Agency: What will this grant funding be used for? SHORT-TERM LEASE/LICENSE AGREEMENT Name of contracting entity: Property Address: What is the intended use for: How long is the term of use: Please explain any fees related to this agreement: AGREEMENTS APPROVED BY CITY COUNCIL Agreements approved by the City Council shall be submitted to the City Clerk's Office. The City Manager's Office will only present agreements to the City Manager for signature if all necessary signatures have been obtained. The City Manager must be the final signature before the agreement is returned to the City Clerk's Office for attestation. XNAff f JAI ;� �-�; ATTACHMENT B AGREEMENT AWARD AND TRACKING SUMMARY FOR AGREEMENTS EXECUTED BY DEPARMENT HEADS WITH GENERAL AUTHORIZATION FROM THE CITY COUNCIL DATE: TO: CITY MANAGER/CITY CLERK FROM: SUBJECT/TITLE: 1. DOLLAR AMOUNT OF THE AGREEMENT: 2. FUNDING SOURCE: 3. EFFECTIVE DATES OF THE AGREEMENT: 4. CONTRACT ADMINISTRATOR: Name Ext. 5. AUTHORITY FOR DEPARTMENT HEAD TO EXECUTE (Council Resolution or other authorization and Date): 6. SUPPORT DOCUMENTS INCLUDED (if City Clerk's attestation is required): ❑ Agreement: Submit signed original Insurance and Endorsements Required: ❑ General Liability ❑ Workers' Compensation ❑ Professional Liability ❑ Automobile Liability ❑ Endorsements ❑ Purchase Order: Submit one copy (if required) SPECIAL INSTRUCTIONS: