June 27, 2017

Presentation Overview Introduction & General Overview Purchasing Process Proposal Submission & Evaluation 1

1. Introduction and General Overview 2

City Profile Incorporated in 1984 General Law City 1.9 square mile area 36,000 residents 4,000 businesses 25,000 jobs 210 Regular Employees 50 Seasonal Employees 7 Departments; 29 Divisions 3

FY17-18 Budget = $145M July – June Fiscal Year 7 Departments 29 Divisions 210 Regular Employees 50 Seasonal Employees 4 4

Contracts Overview 500+ Active Contracts Los Angeles County Sheriff ($19M) Capital Maintenance Projects ($6M) Social Service Contracts ($4.8M) Other Contracted Services Construction Contracts (Varies) Professional & Contract Services ($12M) Other Goods & Services Contracts ($2M) 5

2. Purchasing Process 6

Contract Workflow Product or Service is Needed Bid Process Contracting Contract Closeout Paying Bills Work Begins/Completes Purchase Orders Contracting Bid Process Product or Service is Needed Procurement Phase 7

Why do we need bids and quotes? Municipal Code Section 3.08.070: …Purchases of goods & services must be made on the open market after the solicitation of proposals… http://qcode.us/codes/westhollywood/ 8

When is a quote required? Value Bids $2,500 or less Sound judgement $2,501 - $10K 3 informal quotes $10,001 - $25K 3 written quotes $25,001 or more Formal RFP process GOODS: If the cost is substantial (see table>>) SERVICES: Anytime a service is to be performed unless a contract is already in place See Finance Policies p13 for full list of exceptions, also found in Municipal Code section 3.08.080 (http://qcode.us/codes/westhollywood/) For items below $2,500: The purchaser is expected to use sound judgment in obtaining at least one  reasonable quote. Purchases may be made using the City’s credit card.   9

Government Contracting Informal Quotes Request for Qualifications (RFQ) Request for Proposals (RFP) Formal Bids 10

Public Notice of RFP – Sign up SIGN UP to receive public notices by email RFPS are: 1. Always posted to City Clerk webpage http://www.weho.org/city-hall/city-clerk/public-notices/rfp-rfq-bid-notices 2. Often posted to PlanetBids http://www.weho.org/city-hall/city-departments/public-works/bids 11

Public Notice of RFP – City Clerk RFPS are: 1. Always posted to City Clerk webpage http://www.weho.org/city-hall/city-clerk/public-notices/rfp-rfq-bid-notices 2. Often posted to PlanetBids http://www.weho.org/city-hall/city-departments/public-works/bids 12

Public Notice of RFP – Planet Bids RFPS are: 1. Always posted to City Clerk webpage http://www.weho.org/city-hall/city-clerk/public-notices/rfp-rfq-bid-notices 2. Often posted to City’s PlanetBids Portal http://www.weho.org/city-hall/city-departments/public-works/bids 13

3. Proposal Submission & Evaluation 14

RFP/Bid Elements RFPs typically include: RFP Schedule / Key Dates Table of Contents Project Description Required Deliverables Project Schedule Submission Requirements Evaluation Process Sample Agreement Contract Requirements: Specific terms and language Insurance provisions Indemnity Living Wage (for agreements $25K+) Decentralized Purchasing Informal vs. Formal Process 15

Vendor Responses to RFPs/Bids Read Entire Packet Respond Completely Submit Response by Deadline Reasonable Budget Similar Experience References 16

Goal: Highest Quality for Lowest Cost City selects the vendor who provides the highest quality for the lowest cost. The City has a local preference option. (cost reduction of 4%, not to exceed $5,000) Example Criteria Proposal A Proposal B Proposed Cost $50,000 Vendor Location Burbank West Hollywood Local Preference $0 4% = ($2,000) Evaluated Cost* $48,000 *Does not impact the actual agreement value; just the evaluation of proposals 17

How does the city evaluate proposals? Is the proposal complete and on time? Is the scope of work responsive to the RFP? For services, does the work plan make sense? Are the deliverables clear? Is the proposed schedule or timeline achievable? Is the cost reasonable? What expertise and related experience does the vendor have? What do their references say? Does the vendor have sufficient insurance and financial resources to complete the job? Ability, skill, & capacity to deliver requested goods or services Ability to meet City’s timeline Character, integrity, and reputation Previous experience with the vendor Sufficient financial resources Sufficient insurance Future maintenance/service needs Cost Will the vendor be in business long enough to finish the job? To provide updates or upgrades down the line? 18

…that create a formal and legally binding agreement. Executed Agreement …that create a formal and legally binding agreement. A Set of Promises... Must be signed by Department Director, City Manager, and Vendor City Council may have to approve the agreement Must be accompanied by required documents, such as certificates of insurance, endorsements, waivers of subrogation, etc. 19

Insurance Requirements Type of Insurance Minimum Coverage Certificate of Insurance Waiver of Subrogation Endorsement* Workers Comp $1M  General Liability $1M occurrence $2M aggregate Auto Liability $300K combined single limit Others as necessary Contractual relationship protects both the City and the Vendor * Endorsement(s) must include: Primary and non-contributory language, 30-day notice of cancellation 20

Key Websites Sign Up for Email Notifications Bid & RFP Notices (All) http://www.weho.org/city-hall/how-to-contact-us/email-subscriptions Bid & RFP Notices (All) http://www.weho.org/city-hall/city-clerk/public-notices/rfp-rfq-bid-notices PlanetBids (All Public Works, Some Other) http://www.weho.org/city-hall/city-departments/public-works/bids Public Notices (All) http://www.weho.org/city-hall/city-clerk/public-notices http://www.weho.org/city-hall/city-departments/public-works/bids 21

Questions 22