Auditing_Services_(Addendum_#2_Revision).pdf

REQUEST FOR PROPOSALS

FURNISH AND DELIVER

AUDITING SERVICES

FOR THE

FIRE & POLICE RETIREMENT SYSTEM

CITY OF PASADENA, CALIFORNIA

Request for Proposals - Auditing Services Release Date: Thursday, December 22, 2022

Attachments:

A - [A] Attachment A - Conflict of Interest Disclosure J - Master Services Contract

K - RELEVANT EXPERIENCE FORM

1. INTRODUCTION

1. Summary

The Retirement Board (Board) of the Pasadena Fire & Police Retirement System (System) seeks proposals from qualified firms of certified public accountants to audit the System’s financial statements for three years with two additional option years for a total potential contract term of five years beginning April 1, 2023. In addition, the Board seeks general auditing services to be provided during the contract term, including: coordination with the System actuary and legal counsel regarding funding issues and questions; and consultation to the Board regarding reporting changes, regulations and requirements. In the event of changed accounting standards released by the Government Accounting Standards Board, the auditor will comply with the current standard. The auditor will perform services related to the fiscal year ending June 30, 2023.

2. Background

The City of Pasadena is an ethnically diverse community that is home to approximately 141,029 people. Pasadena is the ninth-largest city in Los Angeles County. It is one of the primary cultural centers of the San Gabriel Valley. The City covers approximately 22.5 square miles, with an average of ten residents per acre. The median age of its residents is approximately 36.9 years.

There are over 100,000 jobs in a wide variety of industries in the City of Pasadena.

The System is a closed, single-employer defined benefit retirement plan that provides service and disability retirement benefits and survivor benefits to approximately 186 retired employees and their beneficiaries (including 22 Domestic Relations Order payments). All members are in payment status and receive the same COLA adjustments, effective July 1 annually. There are three annuity options: Straight Life, 60% Joint and Survivor, and 100% Joint and Survivor. There is no retiree medical benefit.

Benefits are administered by the Board, including, but not limited to: payment of retirement benefits, setting of employer contribution rates, investment of fund assets, and other such responsibilities traditionally performed by the fiduciary of a retirement system. The Board and the System are obligated under California law and Section 401(a) of the Internal Code to “exercise its responsibilities for the sole and exclusive benefit of the members and beneficiaries of the System.”

The System was established by the City of Pasadena City Charter, Article XV, in the early 1900's and has been in continuous operation since. The System was closed to new members on July 1, 1977, and is exempt from the regulation of the Employee Retirement Income Security Act of 1974 (ERISA), as well as is exempt from federal income taxes and California franchise tax. The System is a custody fund which, by law, is under the exclusive control and management of the Board. The Board is comprised of five members: two are elected by retired Fire and Police members of the System; one is a member of the City Council, the legislative body of the City; and two are appointed by the legislative body.

As of June 30, 2022, the fiduciary net position for the Fund was $111,661,738. The Board contracts with an investment advisor to provide portfolio investment advice, including oversight of the System’s portfolio and assets. All invested assets are held in trust by a custodial bank. The Board regularly reviews the System’s asset allocation with the annual 10-year earnings projection. As of June 30, 2022, the approximate market value of net assets held in trust for pension benefits was $111,709,000 which is predominantly held in pooled investment vehicles.

Verus Investments provides non-discretionary investment and asset allocation advice directly to the Board (there is no Investment Committee). The current Investment Policy Statement encompasses the following asset classes and target allocations:

Domestic Core Fixed Income – 25% (active manager)

Large Cap Domestic Equity – 16% (8% Large Cap Value, 8% Large Cap Growth)

Small Cap Core Domestic Equity – 4% (active manager)

International Equity – 20% (mutual fund shares owned in US Dollars)

Short-Term Investment Grade – 10%

Private Real Estate – 10%

Liquid Alternative Investments – 5%

Bank Loans – 5%

TIPS – 5%

The System has two part-time employees (an Administrator and Senior Office Assistant, 0.75 FTE each) who are responsible for implementing the work of the Board, including general benefits administration, managing retiree payroll, budget development and administration, and coordination with City divisions for financial processing and recording in the City’s General Ledger. The Administrator is responsible for preparing the audit’s MD&A, financial statements, notes to the financial statements and all related disclosures.

The Board contracts for an annual actuarial valuation, including developing plan sponsor contribution projections for the fund. The most recent actuarial valuation prepared by System actuary, Foster & Foster, dated June 30, 2022 determined the Actuarial Value of Assets funded percentage of the fund was 87.8%. The Actuarial Value of Assets was approximately $115,181,000 with the Actuarial Accrued Liability of $131,139,000.

Contributions to the plan by the City of Pasadena are determined by Contribution Agreement No. 16,900 and Amended and Restated Contribution Agreement No. 20,823. Both agreements are attached to this RFP.

3. Contact Information

Project Contact:

Bernadette Carpio Administrator Email: bcarpio@cityofpasadena.net Phone: (626) 744-4320 mailto:bcarpio@cityofpasadena.net tel:(626)744-4320

Procurement Contact:

Antonio Watson Project Manager Email: awatson@cityofpasadena.net Phone: (626) 744-8382 Department:

Fire & Police Retirement System

4. Timeline

Release Project Date December 22, 2022

Question Submission Deadline January 5, 2023, 2:00pm

Proposal Submission Deadline January 19, 2023, 2:00pm mailto:awatson@cityofpasadena.net tel:(626)744-8382

2. SUBMITTAL PROCESS AND INSTRUCTIONS

1. NOTICE REGARDING DISCLOSURE OF CONTENTS OF DOCUMENT

All responses to this Request for Proposal (RFP) accepted by the Pasadena Fire & Police Retirement System (System) shall become the exclusive property of the System. At such time as FPRS staff recommends a contractor to the FPRS Board (Board), and such recommendation, with any recommended contract appears on the Board agenda, all proposals accepted by the Board shall become a matter of public record and shall be regarded as public, with the exception of those elements of each proposal which are defined by the contractor as business or trade secrets and plainly marked as "Trade Secret", "Confidential" or "Proprietary". Each element of a proposal which a contractor desires not to be considered a public record must be clearly marked as set forth above, and any blanket statement (i.e. regarding entire pages, documents or other non-specific designations) shall not be sufficient and shall not bind the System in any way whatsoever. If disclosure is required or permitted under the California Public Records Act or otherwise by law, the System shall not in any way be liable or responsible for the disclosure of any such records or part thereof.

2. Eligibility Requirement

Proposer must possess and provide the following licenses or certifications to be deemed qualified to perform the work specified:

CPA - Certified Public Accountant

3. Funding Source

This procurement is funded by City of Pasadena. Vendors must submit all required document with their proposal.

4. Electronic Submission and Delivery Instructions

Parties interested in responding are required to submit proposals electronically through the City of Pasadena's eProcurement Portal no later than 2:00 pm on Thursday, January 19, 2023. Please upload sufficiently early electronically through the city's eProcurement Portal before the time and day listed in the Notice Inviting Proposals. Proposals must be received in the system prior to the deadline.

The entire proposal must be formatted on standard-size 8½”x11” pages; 12 point font only. The "Technical Proposal," "Additional Data," and "Statement of Qualifications" can be no more than 50 grand total pages.

The Price Proposal must include all costs associated with the Technical Proposal as described in the Price Proposal instructions in the “#Proposer's Submittals/Checklist.”

https://procurement.opengov.com/portal/pasadena https://procurement.opengov.com/portal/pasadena/projects/31970?section=260147

The Technical Proposal should disclose your technical approach in as much detail as possible, including, but not limited to, the requirements of the technical proposal instructions. Along with all required forms and submittals (See #Attachments, and #Proposer's Submittals/Checklist. No Pricing shall be included in this part.

Proposals received after the Proposal Deadline may not be accepted by the City.

5. Separation of Technical, and Price Proposals

The proposal must be prepared in two parts: a "Technical Proposal" and a "Price Proposal." Each of the parts shall be separate and complete in itself so evaluation of one may be accomplished separate from the evaluation of the other.

1. The Price Proposal must include all costs associated with the Technical Proposal as described in the Price Proposal instructions in the “#Proposer's Submittals/Checklist.”

2. The Technical Proposal should disclose your technical approach in as much detail as possible, including, but not limited to, the requirements of the technical proposal instructions. Along with all required forms and submittals (See #Attachments, and #Proposer's Submittals/Checklist. No Pricing shall be included in this part.

6. PRICE PROPOSAL: Price Proposal Submittal

Parties interested in responding are required to submit their Price Proposal with their Technical proposal through the City's eProcurement Portal.

The pricing must include the total price proposed to accomplish all the performance and deliverables requested in this RFP, and offered by your firm. Each Proposer must submit a Price Proposal containing all costs associated with the technical proposal. The price proposal shall describe both the total and the detailed price for which the consultant will commit to complete the total scope of work and end products. The price proposal detail shall describe costs for each professional’s time, for the completion of each proposed task, and for all materials and supplies.

The fee information is relevant to a determination of whether the fee is fair and reasonable in light of the services to be provided. Costs shall include the proposed costs and, if necessary, the approximate number of hours to provide the services as described in your proposal. Any additional fees outside the scope of the agreement must be approved in writing before commencing services for said fees. Vendor’s RFP response must be inclusive of all costs and expenses associated with travel, lodging, and any other incidental costs. The City will not separately reimburse costs not included in the proposal.

7. Deadline for RFP Questions

The deadline to submit questions related to this RFP is Thursday, January 5, 2023, prior to 2:00 pm.

Questions regarding this Request for Proposals should be submitted directly through the City's eProcurement Portal Q&A function. Do not contact any City employee or official regarding this

RFP.

https://procurement.opengov.com/portal/pasadena/projects/31970?section=260148 https://procurement.opengov.com/portal/pasadena/projects/31970?section=260147 https://procurement.opengov.com/portal/pasadena/projects/31970?section=260147 https://procurement.opengov.com/portal/pasadena/projects/31970?section=260148 https://procurement.opengov.com/portal/pasadena/projects/31970?section=260147

Any questions submitted after the date and time specified will not be considered.

Vendor Registration Instructions & Customer Service information:

Click here to register onto the City's eProcurement Portal hosted by OpenGov.

If you are already registered and need help logging in or retrieving your user information simply click on the blue chat bubble on the lower right hand corner of your screen or contact OpenGov at procurement-support@opengov.com for help at any time.

Customer Service

For assistance with e-bidding or uploading documents: Contact OpenGov via the blue chat bubble on the lower right hand corner of your screen or email at procurement-support@opengov.com.

Monday through Friday 5am - 5pm PST, except statutory holidays-- response time is typically less than ten minutes.

8. Pre-Proposal Meeting

See the "Timeline" in the Introduction section (#Introduction). If there is a Mandatory pre-proposal meeting, bidders/proposers are required to attend at the time, date, and location included in the Timeline. If there is a Non-Mandatory pre-proposal meeting, bidders/proposers are not required to attend.

Each bidder/proposer will have the opportunity to clarify and ask questions regarding the Specifications. The Pre-Proposal Meeting will be held at the time, date, and location in the Timeline of this solicitation.

9. Definitions

The words (A) "City", (B) "Department", (C) "Director", or (D) "Contractor", as used in this RFP, shall be understood to refer respectively to (A) the City of Pasadena, California; (B) the several departments therein; (C) the directors of the several City departments; or any of their properly authorized assistants; and ( D) the person, firm or corporation with whom the contract is made by said City or the agent or legal representative who may be appointed to represent such person, firm or corporation in the signing and performance of said contract.

10. Addenda

If any person contemplating submitting a proposal of the items or services listed herein is in doubt as to the true meaning of any part of this RFP, he/she may submit a question through the City's eProcurement Portal Q&A section for an interpretation or correction thereof.

https://procurement.opengov.com/portal/pasadena mailto:procurement-support@opengov.com mailto:procurement-support@opengov.com mailto:procurement-support@opengov.com https://procurement.opengov.com/portal/pasadena/projects/31970?section=260150

Any interpretation or correction of City specifications will be made only by addendum, duly issued by the City representative(s) identified in Section 3, above. Addenda (if any) shall be made available to each Proposer. A proposer’s failure to address the requirements of any and all addenda may result in the proposal not being considered. If the City determines that a time extension is required for the proposal, the City will issue an addendum that will give the new submission date. The Proposer is responsible to register on the City's eProcurement Portal and follow the project ,Auditing Services, to insure they receive all RFP documents including addendums which are available as a download.

The City reserves the right to change any part of these Instructions to PROPOSERS and Specifications any time prior to Deadline for Submissions. Any changes shall be in the form of addenda and will become a part of the Proposal documents and of the contract.

11. Withdraw of Proposal

Any Proposer may withdraw their proposal, via the City's eProcurement Portal prior to the proposal deadline.

12. Training Resources for Vendors

Videos:

Instructions for the new eProcurement System: The following link https://help.procurement.opengov.com/en/articles/5815468-opengov-procurement-vendor-training will include video instructions for using the new system.

Screen Shots:

1) Registering for a new account - Vendor Registration

2) Update profile - company and user, email, logo

3) Subscribing for an agency's notifications - Using the Network Tab

4) Following a project

5) How to respond to a bid, submit a bid, or No bid?

6) Get Notifications

7) Managing Addenda

8) OpenGov Procurement Support https://procurement.opengov.com/portal/pasadena https://help.procurement.opengov.com/en/articles/5815468-opengov-procurement-vendor-training https://help.procurement.opengov.com/en/articles/5815468-opengov-procurement-vendor-training https://help.procurement.opengov.com/en/articles/5815468-opengov-procurement-vendor-training https://help.procurement.opengov.com/en/articles/2482165-vendor-registration http://help.procurenow.com/en/articles/2482226-updating-company-information https://help.procurement.opengov.com/en/articles/3955963-how-to-subscribe-to-organizations-and-find-active-rfps-bids https://help.procurement.opengov.com/en/articles/2478854-follow-a-project https://help.procurement.opengov.com/en/articles/2478772-how-to-respond-to-a-project https://help.procurement.opengov.com/en/articles/2921877-get-notifications https://help.procurement.opengov.com/en/articles/4413350-managing-addenda https://help.procurement.opengov.com/en/articles/5680392-using-support

3. SCOPE OF WORK

1. Preparation of annual audited financial statements and required disclosures

The System requests proposals from qualified firms of certified public accountants to audit its financial statements for the fiscal year ending June 30, 2023, 2024, and 2025, and two optional one-year extensions. The audits shall be performed in conformity to generally accepted accounting principles, current professional standards for audits of local California government pensions, including all Federal, State, Governmental Accounting Standards Board (GASB), and other requirements. The ACFR prepared will be in full compliance with all current GASB pronouncements. Compliance with the current professional standards will not be considered a change of scope and will not result in a change to pricing.

The Auditor shall be responsible for performing certain limited procedures involving required supplementary information required by the GASB as mandated by generally accepted auditing standards. The Auditor will review the basic requirements of internal controls for the System.

The Auditor may be asked to provide technical assistance in the preparation of certain footnotes to the financial statements.

The results of the audit will be presented in a written report to the Board that contains the System’s audited financial statements, findings, and recommendations for improvements in operations, internal controls, and accounting procedures. The auditor will also make an in-person presentation of such report to the Board. The Auditor may be requested to attend additional meetings if needed. See Attachment C, Report Format and Presentation, for a description of the requested report.

2. Working Paper Retention and Access to Working Papers

All working papers and reports must be retained, at the Auditor’s expense, during the term of the engagement and for a minimum of five (5) years thereafter, unless the firm is notified in writing by the System of the need to extend the retention period or unless written permission is given by the System to dispose of any such materials prior to this time. The Auditor will be required to make working papers available, upon request, to the System, or its designees. The Auditor shall respond to the reasonable inquiries of successor Auditors and allow successor Auditors to review working papers relating to matters of continuing accounting significance.

3. Service Dates

The initial contract period is for three years beginning April 1, 2023, and will include a 30-day no fault termination clause. Subject to acceptable performance and costs, at the discretion of the Board this contract may be extended by two additional one-year renewals (for a total potential contract term of five years). Proposers must be able to guarantee pricing for the first three years of the contract. Audited financial statements to be prepared during the initial contract term will include:

• June 30, 2023

• June 30, 2024

• June 30, 2025

4. Proposed Work Schedule

The Proposal shall include a proposed work schedule to indicate duration and completion dates along with any project milestone and or deliverables needed to complete the project on time.

Proposal shall also include an estimate on the amount of time to be spent with City Staff.

Notes:

The City’s accounting records for the System’s typically close in early August. Preliminary trial balance, general ledger detail, and estimated accruals will be provided prior to this date (or during the field visit). The final trial balance with supporting documentation for changes will be provided by early September.

Preparation of the notes and related schedules also rely upon the completion of the annual actuarial valuation. The final draft of the actuarial valuation is submitted to the Board for their review and approval at the Board’s meeting in September. Upon its approval (generally in the third week in September), the final valuation will be provided to the auditor.

5. Statement of Qualifications and Experience

"Statement of Qualifications and Experience” shall include, but not limited to, the following information:

A. Brief description of the PROPOSED project approach and disclosure of potential challenges and issues that need to be resolved. PROPOSER should also state the project management team’s qualification and experience

B. Listing of at least three recent similar projects that the firm was engaged in for other public agencies. Include a description of the summary of work performed, the total project cost, the percentage of work the firm was responsible for, the period over which the work was completed, and the name, title, and phone number of clients to be contacted for references. This section shall also include a brief statement of the PROPOSER’s adherence to the schedule and budget for each project.

C. Resume of key staff, their proposed areas of responsibility, a brief description of their professional qualifications and experience in those areas, and copy of applicable professional licenses, including an identification of the principal and representative of the Proposer authorized to act on the behalf of the Proposer and who shall be responsible for directing all activities of the Proposer and devoting sufficient time to personally supervise the provision of services.

4. PRICE PROPOSAL

Each Proposer must submit a Price Proposal containing all costs associated with the technical proposal. The cost proposal shall describe both the total and the detailed price for which the consultant will commit to complete the total scope of work and end products. The table(s) below is intended to be a sample. Proposers may add necessary line items provided they are in compliance with instructions in this RFP for "Cost Proposals." The cost proposal detail shall describe costs for each professional’s time, for the completion of each proposed task, and for materials and supplies.

INSTRUCTIONS:

Each Proposer must submit a Price Proposal containing all costs associated with the technical proposal. Using the attached Price Proposal in this RFP, provide Proposer’s lump-sum price and/or unit price for performing all services and work called for in the SCOPE OF WORK. The Proposer’s price shall include, without limitation:

A. all designs, equipment, materials, labor, insurance and bond premiums, home office, jobsite, and other overhead, profit and services relating to the Proposer’s performance of its obligations under the Contract (including all work, equipment, materials, labor, and services provided by subcontractors and intellectual property rights necessary to perform the work);

B. performance of each and every portion of the work

C. all costs of obtaining Government approvals other than Government approvals that are the responsibility of the City of Pasadena;

D. all costs of compliance with Government rules, except to the extent such compliance is the responsibility of the City of Pasadena;

E. all taxes, duties, permits, and other fees or royalties incident to the performance of the

SCOPE OF WORK;

F. payment of all salaries, wages, benefits, and expenses of the Proposer’s employees;

G. compensation for all risks, liabilities, and contingencies assigned to the Proposer; and

H. all other costs needed or incurred to complete the Project.

PRICING PROPOSAL

Line Item Description Quantity Unit of Measure

Unit Cost Total

1 June 30, 2023 Audit Cost, Not to Exceed - Annual financial audit, report and required disclosures (See Scope of Work section D.1). The sealed dollar ($) cost bid should contain all pricing information relative to performing the audit engagement as described in this request for proposal. The total not-to-exceed maximum price to be bid is to contain all direct and indirect costs including all out-of-pocket expenses.

1 Lump Sum

2 June 30, 2024 Audit Cost, Not to Exceed - Annual financial audit, report and required disclosures (See Scope of Work section D.1). The sealed dollar ($) cost bid should contain all pricing information relative to performing the audit engagement as described in this request for proposal. The total not-to-exceed maximum price to be bid is to contain all direct and indirect costs including all out-of-pocket expenses.

1 Lump Sum

3 June 30, 2025 Audit Cost, Not to Exceed - Annual financial audit, report and required disclosures (See Scope of Work section D.1). The sealed dollar ($) cost bid should contain all pricing information relative to performing the audit engagement as described in this request for proposal. The total not-to-exceed maximum price to be bid is to contain all direct and indirect costs including all out-of-pocket expenses.

1 Lump Sum

4 (Optional One-Year Extension to the Contract) June 30, 2026 Audit Cost, Not to Exceed - Annual financial audit, report and required disclosures (See Scope of Work section D.1). The sealed dollar ($) cost bid should contain all pricing information relative to performing the audit engagement as described in this request for proposal.

The total not-to-exceed maximum price to be bid is to contain all direct and indirect costs including all out-of-pocket expenses.

1 Lump Sum

Line Item Description Quantity Unit of Measure

Unit Cost Total

5 (Optional One-Year Extension to the Contract) June 30, 2027 Audit Cost, Not to Exceed - Annual financial audit, report and required disclosures (See Scope of Work section D.1). The sealed dollar ($) cost bid should contain all pricing information relative to performing the audit engagement as described in this request for proposal.

The total not-to-exceed maximum price to be bid is to contain all direct and indirect costs including all out-of-pocket expenses.

1 Lump Sum

6 Billing Rates for Additional Services - List Employee Name, Job Title/Classification and Hourly Rate

10 Hours

TOTAL

5. EVALUATION CRITERIA

Evaluation of the proposals will be based on a competitive selection process, in which the evaluation of proposals will not be limited to price alone. The capability of the proposer to satisfy the City requirements identified in the Scope of Services, and the experience of the proposer in providing services of this type, size and scope will also be considered in the selection. A minimum of five (5) years of experience providing similar services is required.

This RFP has been structured to provide specific requirements which function as a standardized framework for the evaluation of a prospective consultant’s qualifications.

The City, in consultation with the selection panel, reserves the right to reject any and all proposals. The selection panel will grade and score responsive proposals with the following criteria and weights: The competitive selection evaluation criteria are as follows:

No. Evaluation Criteria Scoring Method Weight (Points)

1. Experience I Points will be assigned for “Experience with Projects of this Size and Scope in an Agency of Similar Size” based on a vendor’s previous experience with municipal agencies, as delineated in the SCOPE OF WORK, and CLIENT REFERENCES. Relevant experience, and technical expertise of the Consultant and sub- Consultants (if allowed) to perform the work.

The firm must be licensed to practice as a certified public accounting firm in the State of California.

Points Based 10 (10% of Total)

2. Experience II The firm must have had a quality control review completed within the past three years. A copy of the review must be included in the proposal.

Points Based 20 (20% of Total)

3. Firm Qualifications Technical experience of the firm as documented by experience in auditing similar entities and performing the type of work outlined; size and structure of the firm; ability to provide ongoing technical support when necessary.

Points Based 20 (20% of Total)

4. Personnel Qualifications Points will be assigned for staffing assigned to this project/contract; and staff accessibility and availability to the project. Education and experience of key personnel. Consideration will be given based on the professional, technical, and educational qualifications of personnel that will be assigned to the project based on the resumes provided. Proposer should demonstrate that all key personnel have been successfully involved with projects of similar scope and magnitude.

Qualifications of staff to be assigned to the contract. The System expects the field senior in-charge to be a CPA with at least three years’ experience in auditing public retirement systems.

Points Based 15 (15% of Total)

5. Methodology Responsiveness of the proposal in clearly stating an understanding of the audit services to be performed, including appropriateness and adequacy of proposed procedures, reasonableness of time estimates and timeliness of expected completion.

Points Based 5 (5% of Total)

6. Cost Proposal Points will be assigned based on a “Ratio Method.” The proposer’s cost must include the delivery of the proposed solutions, as well as any recurring costs (if any) as delineated in the Scope of Work and the PRICE PROPOSAL.

With this method, the proposal with the lowest cost receives the maximum points allowed. All other proposals receive a percentage of the points available based on their cost relationship to the lowest price. This is determined by applying the following formula:

Lowest Price / Evaluated Price X maximum points available = Awarded Points

Example: The cost for the lowest proposal is $100,000. The next lowest proposal has a cost of $125,000. The total points available for cost = 30 points.

( $100,000 / $125,000 ) X 30 = 24 points

Reward Low Cost 20 (20% of Total)

7. Local Pasadena Business To be awarded a 5 point preference for this category, the proposer must have an official business address within the City of Pasadena at the time that this RFP is posted on the City’s Website.

Points Based 5 (5% of Total)

8. Small or Micro-Business To be awarded a 5 point preference for this category, the proposer must be certified by the State of California as a small or micro-business.

Refer to the State of California Department of General Services Division for further information.

https://caleprocure.ca.gov/pages/sbdvbe-index.aspx

Points Based 5 (5% of Total) https://caleprocure.ca.gov/pages/sbdvbe-index.aspx

6. REVIEW AND AWARD RECOMMENDATION PROCESS

1. Review and Award

A screening committee will determine which proposals are responsive to City requirements and needs. The technical portions of responsive proposals will be evaluated by a selection panel consisting of personnel from the City. The selection may be based solely on the written proposals submitted.

PROPOSERS may be invited to a meeting to provide additional clarification of the content of their proposal. The City reserves the right to invite all of the PROPOSERS for an oral clarification OR only the top three (3) ranked firms based on the initial written proposal review. The meeting will not alter the selection criteria but will be used to clarify content of the proposal. The final scoring and ranking will be made after the meetings. Proposals shall consist of the sections named in the “Contents of Proposal” outlined below.

Once an agreement is reached with a Proposer, staff will recommend award of a contract. The City reserves the right to select the firm which, in its sole judgment, best meets the needs of the City.

Any contract resulting from this RFP, if $25,000 or more, shall not be effective until approved by the Pasadena Fire & Police Retirement System Board. Any contract resulting from this RFP, if $75,000 or more, shall not be effective until approved by the Pasadena Fire & Police Retirement System Board.

7. GENERAL REQUIREMENTS

1. Pasadena Living Wage Ordinance

This project is subject to the City of Pasadena's Living Wage Ordinance, Pasadena Municipal Code Chapter 4.11. The ordinance requires that contractors providing labor or services to the City under contracts in excess of $25,000 pay no less than the City’s Living Wage to all employees who spend any of their time providing labor or delivering services to the City.

The selected contractor will be required to evidence compliance with the Living Wage Ordinance by submitting payroll records as requested by the City. Each record shall include the full name of each employee performing labor or providing services under the contract; job classification; rate of pay and benefit rate.

Failure to comply with the provisions of the Pasadena Living Wage Ordinance is grounds for termination of the contract and a basis for penalties as stated in Pasadena Municipal Code Chapter 4.11. Questions concerning the Pasadena Living Wage Ordinance should be directed to:

Finance Department Purchasing Division 626-744-6755 - phone 626-744-6757 – fax

Please visit https://ww5.cityofpasadena.net/finance/doing-business-with-the-city/ for the current calendar year Pasadena Living Wage rate.

2. Local Preference

The City of Pasadena is committed to promoting the economic health and well-being of its residents. To this end, Contractor agrees to recruit Pasadena residents initially and to give them preference, if all other factors are equal, for any new positions which result from the performance of this Contract and which are performed within the City.

• The Contractor will be required to make good-faith effort to hire Pasadena residents for all new hires, including subcontractor new hires.

• A good-faith effort will include requests to unions or community organizations designated by City to provide a list of qualified Pasadena residents. If qualified candidates available, Contractor will conduct interviews with assistance of City and union/community organizations.

• Residents are individuals who are, and have been one year prior to the effective date of the contract, residents of the City of Pasadena.

• Submission to the City of documentation of requests and interviews will constitute proof of a good-faith effort.

• Interviews of Pasadena residents, if conducted, shall be completed and documentation submitted to the City prior to commencement of Contract work.

https://ww5.cityofpasadena.net/finance/doing-business-with-the-city/

3. Certificate of Insurance

Proof of insurance is not required to be submitted with your bid, but will be required prior to the City's award of the contract. Refer to the Insurance requirements in the "Insurance Requirements" section of this document.

4. Standard terms and conditions

Prior to the award of any work hereunder, City and contractor shall enter into a written contract in substantially the form attached hereto with such revisions thereto as the City may determine necessary and appropriate. PROPOSERS responding to this RFP are strongly advised to review all the terms and conditions of the contract, and shall be deemed to have accepted them.

5. Equal opportunity contracting

Policy - The City of Pasadena is committed to a policy of Equal Opportunity Contracting. Qualified firms including small businesses and businesses owned by women, minorities, and disabled persons are encouraged to submit bids or proposals. Contractors expressly agree to comply with the City's ordinances and regulations regarding Equal Opportunity Employment as well as regulations that may be mandated by the source of the funds supporting this contract.

Compliance – To the extent permitted by law, Contractor expressly agrees to establish compliance with the Equal Employment Opportunity Practices Provisions of Chapter 4.08 of the Pasadena Municipal Code, and the Rules and Regulations adopted pursuant to said ordinance.

The successful Proposer may be required to submit documentation during the term of the contract to evidence on-going compliance with the City’s Contracting Ordinance. Such documentation may include, but not be limited to certified payroll records and Current Permanent Workforce Utilization reports.

Questions regarding the City of Pasadena’s Contracting Ordinance and policy should be directed to the Department of Finance, Purchasing & Payables Division 626.744.6755.

6. Firm commitment of availability of service

Once a proposal is opened, a PROPOSER is expected to maintain an availability of service as set forth in its proposal for at least four months after date for opening proposals.

7. Reservations

The City reserves the right to reject any or all bids and any item or items therein, and to waive any non conformity of proposals with this RFP, whether of a technical or substantive nature, as the interest of the City may require.

8. Documents to be construed together

The Request for Proposals, the Proposal, the Non Collusion Affidavit, and all documents referred to in the complete specifications and the Contract to be entered into between the Contractor and the City, and all modifications of said documents, shall be construed together as one document.

9. Errors and omissions

PROPOSER and/or the Contractor shall not be allowed to take advantage of any errors in or omissions from in the Request for Proposals. Full instructions will be given if such error or omission is discovered and timely called to the attention of the City.

10. RFP not contractual

Nothing contained in this Request for Proposals shall create any contractual relationship between the PROPOSER and the City. The City accepts no financial responsibility for costs incurred by any PROPOSER regarding this RFP.

11. Patent fees; patent, copyright, trade secret and trademark fees

Each PROPOSER shall include in the price bid any patent fees, royalties and charges on any patented article or process to be furnished or used in the prosecution of the Work.

12. Taxes

Price bid shall include all federal, state, local and other taxes.

13. System for Award Management (SAM.Gov)

Prior to contract award, the winner of this solicitation must provide an active registration with "Sam.Gov." Vendors seeking to register can register for free at the following link:

https://sam.gov/content/entity-registration

14. PUBLIC CONTRACT CODE SEC. 9204 NEW PUBLIC WORKS CLAIMS PROCEDURE

Observe attached details regarding Public Contract Code Section 9204. AB 626, approved by the Governor on September 29, 2016, created a new Public Contract Code Section 9204, which specifies new procedural requirements for claims submitted by a contractor on any public works project. These new requirements contain burdens for both private contractors and public entities and are specifically made applicable to charter cities.

15. Request for Proposal (RFP) quantities:

The quantities contained in the RFP documents are approximate only and are for the sole purpose of comparing proposals. The City may, in accordance with the specifications, request additional services as necessary at the City's sole discretion, as increased by the unit price noted and payment will be made for the amount of services actually provided as determined by the City and accepted at the unit prices noted in the proposal.

https://sam.gov/content/entity-registration

16. CHANGE ORDER MANAGEMENT

CHANGE ORDER MANAGEMENT

Any additional work identified during the course of the project that is deemed necessary, but outside the original Scope of Services, must be recorded as a Change Order and approved by the City Project Manager in writing before work is started.

17. Taxpayer Protection Act

Under the provisions of the City of Pasadena Taxpayer Protection Act ("TPA"), the Contractor/Organization will be considered a "recipient of a public benefit." The full provisions of the TPA are set forth in Pasadena City Charter, Article XVII. Under the TPA, City public officials who approve this Contract are prohibited from receiving specified gifts, campaign contributions or employment from Contractor for a specified time. As well, if this Contract is to be approved by the City Council, Councilmembers or candidates for Council are prohibited from receiving campaign contributions during the time this Contract is being negotiated (from the due date for an RFP response until award of a contract; this restriction does not apply to competitive and noticed low bid contracts). This prohibition extends to individuals and entities that are specified in the TPA and includes Contractor/Organization and its trustees, directors, partners, corporate officers and those with more than a 10% equity, participation, or revenue interest in Contractor/Organization. Contractor/Organization understands and agrees that: (A) Contractor/Organization is aware of the TPA; (B) Contractor/Organization will complete the forms provided by the City to identify all of the recipients of a public benefit specified in the TPA;

and (C) Contractor/Organization will not make any prohibited gift, campaign contribution or offer of employment to any public official who negotiated and/or approved this Contract, and will not make any prohibited campaign contribution during the time this contract is being negotiated.

The Contractor shall submit a copy of the completed TPA form to the City Clerk’s Office if the contract is to be awarded by the City Council via e-mail: OfficialRecords- CityClerk@Cityofpasadena.net or by fax: (626) 744-3921, and submit a copy with the response package.

For more information please go to: https://www.cityofpasadena.net/city-clerk/disclosure-reports/tax-payer-protection-act-tpa/

18. REQUEST FOR TAXPAYER IDENTIFICATION NUMBER AND CERTIFICATION (IRS Form W-9)

The highest scoring proposer may be required to submit a completed and signed IRS Form W-9.

Failure to submit this form may result in the bidder being deemed non-responsive.

Link: https://www.irs.gov/pub/irs-pdf/fw9.pdf

19. Pasadena Business License

Awarded bidder(s) may be required to obtain and pay for any required business license under Title 5 of the Pasadena Municipal Code.

https://www.cityofpasadena.net/city-clerk/wp-content/uploads/sites/21/TPA-Disclosure-Form-Non-Land-Use-contracts-and-all-others.pdf?v=1657730649410 mailto:OfficialRecords-CityClerk@Cityofpasadena.net mailto:OfficialRecords-CityClerk@Cityofpasadena.net https://www.cityofpasadena.net/city-clerk/disclosure-reports/tax-payer-protection-act-tpa/ https://www.cityofpasadena.net/city-clerk/disclosure-reports/tax-payer-protection-act-tpa/ https://www.irs.gov/pub/irs-pdf/fw9.pdf https://www.irs.gov/pub/irs-pdf/fw9.pdf

• If the business will not come into the City for the purpose of providing services for this contract, they are not required to obtain a business license.

• If the business will only be coming into the city no more than 10 times to provide product or services for this contract, they are charged 33% of the annual tax (PMC 5.04.130C)

• If the business will come into the City more than 10 times they are required to pay the annual fee.

• Any subcontractors used by the awarded vendor will be required to obtain a license if they will be coming into the City to perform services.

For further information contact Municipal Services Department at (626) 744-4166, Monday- Friday between 7:15 am and 5:15 pm. Additional Information regarding business license fees can be found here: https://www.cityofpasadena.net/finance/general-fund/fees-tax-schedules/

20. CONFLICT OF INTEREST STATEMENT ** REVIEW

The proposing Consultant shall disclose any financial, business or other relationship with the City of Pasadena that may have an impact upon the outcome of the contract or any construction project. The Consultant shall also list current clients who may have a financial interest in the outcome of this contract or the construction project that will follow. The proposing Consultant shall disclose any financial interest or relationship with any construction company that might submit a bid on the construction project related to this solicitation.

Proposers must complete and submit the following Form: Conflict of Interest Statement

21. Invoice Submission Portal

Invoice Submission Portal

The invoice submission process is activated when an invoice is submitted through the Vendor Invoice Portal. Invoices submitted are automatically sent to the department being invoiced for review. Once the city department verifies its accuracy, the department will submit the invoice to Accounts Payable for payment processing. One final review and approval by the department who was invoiced is needed in order for a check to be issued. Checks are issued on Tuesday and Thursday.

How to submit invoices to the City of Pasadena?

Create an account: Visit the City’s Invoice Submission website:

https://invoice.cityofpasadena.net/ and select “Create Account”

Refer to the "Invoice Submission Portal - Vendor User Guide" for detailed instructions.

22. Contract Duration https://www.cityofpasadena.net/finance/general-fund/fees-tax-schedules/ https://invoice.cityofpasadena.net/ https://invoice.cityofpasadena.net/PortalGuide.pdf

The initial term of the Contract resulting from this proposal is for three years from the date the City executes the contract. The compensation set forth in the Proposal shall remain valid and in effect during the initial term of the contract. There shall be two optional one-year extension periods subject to the approval of the City Manager, in his sole and absolute discretion, and which shall be memorialized in the form of an amendment to the contract, setting forth the agreed upon amount of compensation and such other terms and provisions as the parties may agree upon for each extension period.

23. RELEVANT EXPERIENCE

Provide experience with governmental agencies for three projects/contracts of similar scope and size. Complete and submit the attached Relevant Experience Form with your proposal to demonstrate experience with projects/contracts of similar scope and size to that which is to be performed. The System expects the field senior in-charge to be a CPA with at least three years’ experience in auditing public retirement systems.

8. INSURANCE REQUIREMENTS

1. Insurance Requirements (PROFESSIONAL SERVICES) https://www.cityofpasadena.net/finance/wp-content/uploads/sites/27/Professional- Services.pdf?v=1623280176766 https://www.cityofpasadena.net/finance/wp-content/uploads/sites/27/Professional-Services.pdf?v=1623280176766 https://www.cityofpasadena.net/finance/wp-content/uploads/sites/27/Professional-Services.pdf?v=1623280176766

9. PUBLIC CONTRACT CLAIMS PROCEDURE

PUBLIC CONTRACT CODE SEC. 9204 NEW PUBLIC WORKS CLAIMS PROCEDURE

AB 626, approved by the Governor on September 29, 2016, created a new Public Contract Code Section 9204, which specifies new procedural requirements for claims submitted by a contractor on any public works project. These new requirements contain burdens for both private contractors and public entities and are specifically made applicable to charter cities.

For this legislation, a “public works project” is defined as “the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind.” This definition is not as broad as in the Prevailing Wage Law.

A “claim” is defined as “a separate demand by a contractor sent by registered mail or certified mail with return receipt requested…” and is limited to three types of contract disputes:

1. “A time extension…for relief from damages or penalties for delay assessed by a public entity….”

2. “Payment by the public entity of money or damages arising from work done by, or on behalf of, the contractor pursuant to the contract for a public works project and payment for which is not otherwise expressly provided or to which the claimant is not otherwise entitled”, and/or

3. “Payment of an amount that is disputed by the public entity.”

Upon receipt of a claim, a public entity must "conduct a reasonable review" and provide a written statement to the contractor within 45 days of receipt of the claim. Failure of a public entity to respond to a claim within the time periods described in Section 9204 "shall result in the claim being deemed rejected in its entirety."

For any undisputed portion of a claim, a public entity must make payment within 60 days of the public entity's issuance of the written statement.

If the contractor disputes the public entity's written statement, or if the public entity fails to respond, the contractor may demand "an informal conference to meet and confer for settlement of the issues in dispute." The public entity must schedule the meet and confer conference within 30 days of the demand.

Within 10 business days following the meet and confer conference, the public entity must provide a written statement identifying the portion of the claim that remains in dispute.

Any payment due on an undisputed portion of the claim must be made within 60 days of the meet and confer conference. Amounts not paid in a timely manner shall bear interest at 7 percent per year.

After the meet and confer conference, any disputed portion of the claim "shall be submitted to non-binding mediation." If mediation fails to resolve the dispute, the parts of the claim that remain in dispute shall be subject to applicable procedures outside Section 9204 (statutory and contractual).

The full text of this new legislation is set forth below:

THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

SEC…