Procurement Training Los Angeles Community Colleges

1
Procurement TrainingLos Angeles Community
Colleges

• Presented by
• Business Services Division
• Office of General Counsel
• College Procurement Specialists
• June/July 2008

2
Welcome / Introductions

• Presenters
• Anne Diga, Associate Counsel
• Jim Watson, Contracts Purchasing Manager
• Fabbee Bunag, Contracts Analyst
• College Procurement Specialists
• Michele Burrus
• Ramona Divinagracia
• Kim Hoffmann
• Audience self-introductions
• Housekeeping items

3
Agenda

• Background and purpose
• Structure of new policies and procedures
• Statutes and other authorities

4
Agenda (Contd)

• Presentation of New Procedures
• 04-00 Procurement Overview and Policy
• 04-01 Procurement Responsibilities and
  Organization
• 04-02 Methods and Types of Procurement
  Transactions
• 04-03 Micro-Purchases
• 04-04 Small Purchases
• 04-05 Medium Purchases
• 04-06 Large Purchases

5

• 04-07 Short Term Agreements/Contracts for
  Services04-08 Procurement of Special and
  Professional Services
• 04-09 Bid Protests and Appeals
• 04-10 Cooperative Purchases
• 04-11 Lease of Equipment
• 04-12 License of Software and other Intellectual
  Property
• 04-13 Non-Competitive Procurement
• 04-14 Acceptance of Loaned and Donated Personal
  Property

6
Agenda (Contd)

• 04-15 Authorization to Pay
• 04-16 Purchasing Card
• 04-17 Receiving and Acceptance of Procured Items
• 04-18 Invoicing and Payment
• 04-19 Suppliers/Vendors
• 04-20 Procurement Considerations for Specially
  Funded Programs

7
Agenda (Contd)

• Miscellaneous Procurement Topics
• Template agreements
• Key contractual terms
• Property Agreements for Use of Facilities
• Civic Center Permits/Permits for Use

8
Background and Purpose

• Procurement The act of obtaining, attainment,
  acquisition.
• Contract An agreement between 2 or more
  persons which creates an obligation to do or not
  do a particular thing.
• Procurement contract A government contract
  with asupplier of goods under the terms of which
  a sale is made to the government.

9
Background and Purpose (Contd.)

• History of Decentralization
• 2000 Board delegates contracting authority
  (Board Rule 7100 et seq)
• 2000 Chancellor delegates authority to College
  Presidents (Board Rule Admin Reg B-19)
• 2000 Training by BSD, OGC
• 2001 Purchasing regions created CPSs hired
• 2001-02 Presidents delegate to VPs of
  Administrative Services
• 2001 Launch of purchasing card
• 2002 Implementation of SAP Financial and
  Purchasing System
• 2005 Launch of Business Policies and Procedures
  Project
• 2008 Adoption of New Procurement Policies and
  Procedures
• http//www.laccd.edu/

10
Background and Purpose (Contd.)

• Purpose of Training
• Unveil new district-wide written procurement
  policy and procedures
• In-service new administrators and staff
• Refresher to continuing administrators and staff
• Not for bond and construction related purchases
• Not focused on SAP training

11
21 New Procurement Policies and Procedures

• Organized to Follow the Procurement Lifecycle of
  a Purchase with additional procurement related
  issues
• Purchase-? Receiving-? Payment

12
Procurement Procedures Development Team

• Fabbee Bunag, DO Contracts Analyst
• Michele Burrus, College Procurement Specialist
• Anne Diga, Associate General Counsel
• Ramona Divinagracia, College Procurement
  Specialist
• Jeanette Gordon, Chief Financial Officer
• Allan Hansen, Director of College Facilities
  West Los Angeles
• Mark Henderson, Manager of Information Systems
  Pierce College
• Kim Hoffmann, College Procurement Specialist
• Bruce Hurt, Receiving Supervisor - Valley
• Kelly Ryan, Accounting Assistant City College
• Kenneth Takeda, Vice President of Administrative
  Services - Pierce
• Ann Tomlinson, Vice President of Administrative
  Services Harbor College
• Jim Watson, DO Contracts Manager
• Tania Yanes, Facilities Administrative Assistant
  Trade Tech College
• Mayra Zelaya, Purchasing Supervisor, City College

13
Policy Objectives

• 04-00 Procurement Overview and Policy
• Comply with laws, board rules and regulations
  governing procurement for LACCD
• Encourage competition in order to obtain best
  pricing and terms, superior products and customer
  services
• Provide all suppliers equal opportunity to
  participate No favoritism, fraud, abuse,
  corruption
• Efficiency of resources
• Timely delivery of products and services

14
Common Definitions (04-00)

• Bid
• Bid Threshold
• Board approval/ratification
• Invitation for Bids (IFB) (RFB)
• Proposal
• Request for Proposal (RFP)
• Request for Qualifications
• Solicitation of Quotes
• And others..

15
Types of Procurement

• - Solicitation of Quotes (Campus or CPS)
• Not formal bidding, best business practice
• Obtained prior to purchase
• Informal pricing quotes not required but best
  business practice for purchases less than
• 2500 2500 or greater a minimum of three quotes
  required 5,000 up to bid threshold a minimum of
  3 written quotes
• - Request for Qualifications (RFQ) (District)
• Not formal bidding, best business practice
• Respondents ranked by qualifications
• Price is negotiated with highest ranked
  respondent
• - Request for Proposals (RFP) (District)
• Not formal bidding, best business practice
• Respondents submit qualifications, technical
  proposal and price
• Award based on most advantageous offer, all
  factors considered, not price alone
• - Invitation for Bids (IFB) or Request for
  Bids (RFB) (District)
• Formal advertisement in newspaper of general
  circulation for specified period of time
• Bids submitted sealed

16
Statutes and Other Authorities

• State (29 California Codes)
• Public Contract Code, Education Code, Government
  Code, others
• Welcome to California www.ca.gov
• LACCD
• Board Rules, Administrative Regulations
• http//www.laccd.edu/about5Fus/
• Miscellaneous external
• Grant application and guidelines
• Case law

17
Statutes and Other Authorities (Contd)
18
Statutes and Authorities (Contd)

• Public Contract Code Sections
• 100, 101, 102 - Objectives, efficiency,
  encourage competition
• 3400 Specific brand or trade name equal or
  better
• 20651-20662 Community Colleges
• 20651 Formal bid threshold
• 20654 Emergency defined
• 20657 No Bid Splitting
• 22000 et seq, (CUPCAA)
• Education Code Sections
• 81644 Duration of Contracts
• 81655 Delegation of Authority to Contract,
  Personal Liability for malfeasance
• 81656 Delegation of Authority to Purchase,
  Personal Liability for malfeasance
• 88003.1 Personal Services Contracts No
  contracting out of classified work with
  exceptions
• Government Code Sections
• 53060 Professional/Specialized Services

19
Statutes and Other Authorities(Contd)

• Board Rules - Chapter VII, Article I
  Contracting
• Board Rules 7100 7101.15
• 7100 Board Responsibility for Contracts
• 7100.10 Delegation of Authority
• 7100.11 Emergency Contracts
• 7100.15 Ratification of Transactions
• 7100.16 Rejection of Bids
• 7100.17 Advertisement of bids
• 7101 7101.15 Administration of Contracts
• 7102 7102.14 Rules for Purchasing
• 7103 7103.17 Facilities Related Contracts for
  Public Projects
• http//www.laccd.edu/board_rules/documents/Chapter
  20VII/Ch.20VII20-20Article20I.doc

20
Statutes and Other Authorities (Contd.)

• Administrative Regulations
• B-19 Delegation of Authority to College
  Presidents
• College Presidents, Deputy Chancellor, Executive
  Director of Facilities Planning and Development,
  Director of Business Services
• College Presidents can delegate to VPs of
  Administrative Services
• LACCD - About Us - Administrative Regulations

21
Exercise 1 Delegation of Authority

• A) Dee, Director of College Facilities, at
  Sunrise Community College would like to repair
  the baler/trash compactor on campus. She
  receives a quote in the amount of 7,000 from
  Bobs Baler Repair. She asks Fran Facilities
  Aide to enter and print a Facilities Order in
  SAP. Dee signs the FOF and sends it off to Bob.
  Is Dee in compliance with B-19? Are there other
  issues of concern?

22
Exercise 2 Delegation of Authority

• Sally SFP Director at West Pierce Community
  College would like to host the end of the year
  program banquet at a nearby hotel next to the
  college. She contacts the Airport Hilton to
  determine whether a banquet room is available for
  the event. The Hilton event planner confirms
  that the event date is available. Sally is sent
  a reservation confirmation agreement which she
  signs and returns to the Hilton.

23
04-01 Procurement Responsibilities and
Organization

• A. College Purchasing Office
• Handles purchases up to lt5,000 at a centralized
  location
• Southwest and Harbor fully decentralized
• Trade Tech partially decentralized
• College Plant Facilities Office handle facilities
  related procurement up to lt125,000

24
04-01 Procurement Responsibilities and
Organization (Contd)

• Region-based College Procurement Specialists
• City, Southwest, HarborMichele Burrus
• East, West, Trade Tech Kim Hoffmann
• Valley, Mission, PierceRamona Divinagracia
• College where CPS has office

25
04-01 Procurement Responsibilities and
Organization (Contd)

• District Office Contracts and Purchasing
  Section
• Jim Watson, Contracts and Purchasing Manager
• Non-construction related property leases
• Personal and Professional Services
• District and non-district property
• Fabbee Bunag, Contracts Analyst
• Leases of equipment
• Software licenses
• Personal and Professional Services
• Curtis Paltza, Contracts Analyst
• Personal and Professional Services
• Non-construction related property leases
• Vending machines, pay phones
• Marilyn Huff, Purchasing Agent
• Handles all Formal Bids for purchases and
  purchases at the District Office
• Updates SAP Vendor list

26
Current Structure/Policies (cont.)

• Purchasing Responsibility by Threshold
• College Micro and Small purchases (0-4,999)
• Region Medium purchases (5,000-statutory
  threshold--72,400)
• District Office Large Purchases not
  specifically delegated

27
04-02 Methods and Types of Procurement
Transactions

• A. Methods Competitive vs. Non-competitive,
  miscellaneous
• B. Types of Transactions
• Micro purchases lt or 2,500
• Small purchases 2,501 up to 4,999
• Medium purchases 5,000 up to formal bid
  threshold (currently, 72,400)
• Large purchases 72,400 and greater
• Special/Professional Services
• Rentals, Leases and Licenses of Equipment/Software

28
04-03 Micro Purchases

• Entered by college in SAP database
• lt2,500 purchases of supplies, equipment and
  services
• SFP purchases may have lower threshold required
  by the grant
• Recommended best business practice to obtain
  competitive pricing, but not required to solicit
  quotes.
• Approval required by Vice President
  Administrative Services in SAP
• Purchase Order (PO) signed by College President
  or Vice President of Administrative Services

29
04-04 Small Purchases

• Entered by college in SAP database
• 2501 up to 5,000 purchases of supplies,
  equipment and services
• Approval of Vice President of Administrative
  Services PO signed by College President or Vice
  President of Administrative Services
• Must solicit at least a minimum of three (3)
  quotes Record of solicitation kept in original
  transaction file
• Internet research
• Catalog
• Vendor contact
• E-mail, telephone, fax

30
04-05 Medium Purchases

• 5,000 up to bid threshold (72,400)
• For all procurements at or over 25,000 the EPLS
  needs to be searched with a screen print saved
  with the original documents whether SFP or
  general funds.
• A minimum of (3) three written quotes required
  and must be submitted with PR/RFC
• Entered by college and processed by College
  Procurement Specialist (CPS) as Purchase
  Requisition (PR) (goods) or Request For Contract
  (RFC) (services)
• PR requires conversion by college into PO
• RFC requires conversion by CPS into Contract
  Order (CO)
• Approved by Vice President and CPS
• Decentralized colleges may include approval by
  Department Head, Dean, Director or other VPs

31
Exercise 3 Types of Purchases

• South Bay Community College would like to
  purchase athletic football equipment in the
  amount of 50,000. Abby Athletic Director
  supplied a purchase request with one quote from
  Acme Sporting Goods. Patty Purchasing Aide should
  do the following
• A) Process request
• B) Contact Athletic Director for a minimum of two
  additional quotes
• C) Check Acme Sporting Goods catalog to verify
  price quote submitted by Abby.

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04-06 Large Purchases

• 72,400 or greater
• Purchase contract cannot exceed 3 years
• Handled solely by the District Contracts and
  Purchasing Section
• PO or Contract approved and signed by DO
  Purchasing Agent or Contracts Manager
• Public Contract section 20651 requires formal
  sealed bids using process identified in Education
  Code section 81641
• Formal bid process

33
04-06 Large Purchases (Contd)

• Formal Bid Process (IFB)
• Advertisement for two weeks
• Bid Package
• Pre-bid conference (optional/mandatory)
• Sealed bid submission
• Bid Opening
• Bid Evaluation
• Award to responsive/responsible lowest bidder
• Agenda item for Award of Procurement

34
10 Minute Break
35
04-07 Short Term Agreements and Contracts for
Services

• Services defined
• Provision of labor as distinguished from goods.
• Personal Services Routine labor for which NO
  special training, education, certification or
  license is required.
• Professional/Specialized Services -
• Government Code section 53060
• Legal, Administrative, Auditing, Payroll
  Processing, Design and Engineering, Medical and
  other specialized services requiring high level
  of independent judgment, expertise and
  discretion.
• Cannot contract out classified work Education
  Code Section 88003.1

36
Personal Services Contracting Out of Classified
Work

• Education Code Section 88003.1
• General prohibition to contract out classified
  work, except when
• Clear demonstration of cost savings
• Code provides specific formula in making cost
  savings analysis
• Services not otherwise available
• Highly specialized and cannot be performed by
  college or district employees
• Services pursuant to a contract or lease for
  purchase of real property
• Emergency

37
04-07 Short Term Agreements and Contracts for
Services (Contd)

• Short Term Agreements (STA)
• Requires three written quotes
• Services one year or less
• STA can only be amended through RFC and handled
  by CPS
• STA cannot be amended for term beyond a year or
  amount to exceed 5,000.
• Valued at 5,000 or less including tax and
  delivery charges
• STA must be Board ratified within (60) calendar
  days of entering into the transaction. Send copy
  of STA to CPS for submission to Board for
  ratification.
• Agreements must be approved and signed by College
  President or Vice President of Administrative
  Services

38
04-07 Short Term Agreements and Contracts for
Services (Contd)

• Contracts for Services
• Personal Services for multiple years up to
  72,400.
• Requires three written quotes
• Contract initiated by RFC and entered into SAP by
  the College
• If renewal or amendment, require reference to
  existing contract number.
• Contracts below 72,400 are ratified by Board.
  72,400 or greater require prior authorization.
• Contract cannot exceed 5 years
• Limit Order Agreements

39
04-08 Procurement of Specialized or Professional
Services

• Government Code section 53060 defines special and
  professional services
• Examples of special services include financial,
  auditing, legal, architectural/engineering,
  insurance brokerage, payroll issuance and
  preparation, and other administrative matters
  where service provider must be specially trained.
• Special services/professional services are exempt
  from formal bidding
• Recommended best business practice is to solicit
  Request for Proposals (RFP) or Request for
  Qualifications (RFQ)
• Requires Professional Services Agreement to be
  signed by both service provider and
  District/College. Signature obtained from
  service provider first.

40
Exercise 4 Contracting Out for Services

• West Valley Community College is planning
  graduation ceremonies. The College customarily
  provides sign language interpreters for large
  public events and ceremonies such as this one.
  Victoria Vice President issues a short term
  agreement to Selective Sign Works for three
  interpreters to provide services throughout the
  graduation at a total cost of 2,000. Is this
  appropriate?

41
Exercise 4 Short Term Agreements and Contracts
for Services

• South Harbor CCD has just implemented a new
  payroll processing system. Unfortunately, the
  pay stubs generated from the system reverse print
  the payroll information on the stub making the
  information unrecognizable to employees. South
  Harbor would like to hire a system software
  programmer who is able to troubleshoot the
  problem and fix the misprinted pay stubs. What
  solicitation process does South Harbor need to
  undertake in order to contract for these
  services?

42
O4-09 Bid Protests and Appeals

• Affords bidders/proposers the ability to be heard
  if they believe fair treatment in the procurement
  process has not been provided to them.
• Purchases below statutory threshold
• Written protest filed with Vice President of
  Administrative Services within 2 business days of
  award notification
• Purchases at or above statutory threshold
• Written protest filed with Director of Business
  Services within 5 business days of award
  notification

43
04-10 Cooperative Purchases

• Public Contract Code section 20652 piggyback of
  personal property (not services)
• Board must make finding of best interest to
  piggyback if purchase is over statutory threshold
• County of Los Angeles copiers, janitorial
  supplies
• Public Contract Code sections 20653 and 10290
  provides the ability to piggyback personal
  property and services under contracts
  specifically awarded by the Department of General
  Services
• Western States Contracting Alliance HP, Dell,
  Apple and Gateway computers Grainger for
  maintenance supplies and equipment
• California Multiple Award Schedule Tractors,
  forklifts, service vehicles
• -Hard copy of valid contract must be provided by
  initiators

44
04-11 Lease of Equipment

• Handled by the DO Contracts and Purchasing
  Section ONLY
• Requestor must provide original lease documents
  provided by finance company and equipment
  proposal from supplier
• Lease must be made in accordance with Education
  Code section 81550
• Fixed lease term greater than one (1) year up to
  ten (10) years
• One (1) year or less requires a rental agreement
  which is handled by the College

45
04-12 License of Software and other Intellectual
Property

• A license provides a non-exclusive right to use
  an asset.
• A license of software is an agreement.
• Beware of on-line downloadable software
• Terms and Conditions of on-line software
  agreement should be reviewed and approved by the
  Vice President of Administrative Services prior
  to installation.
• Requires evaluation and screening by local
  Information Technology department prior to
  download and acceptance of use.

46
04-13 Non-Competitive Procurement

• A. Educational Materials Education Code
  section 81651
• B. Food/Cafeteria Supplies Public Contract
  Code section 20660
• C. Emergency Contract Public Contract Code
  section 20654
• D. Cooperative Purchases Public Contract Code
  section 20652
• E. Single Source No statutory authority for
  sole source. Refers to a market condition in
  which only one supplier or service provider
  exists. Therefore, a competitive process is
  impossible or impracticable. Refer to sole
  source evaluation procedure.
• Specification of brand name/trade name equal or
  better
• - Public Contract Code section 3400

47
04-14 Acceptance of Loaned or Donated Personal
Property

• Education Code sections 71046 and 72205
• Donor responsible for specifying value for their
  tax purposes
• Donations must be evaluated prior to acceptance
  or delivery to campus
• College Information Technology department should
  screen IT related equipment
• College Facilities Department should screen all
  equipment requiring electrical or utilities
  connection
• Donations cannot be for illegal purposes

48
04-14 Acceptance of Loaned or Donated Personal
Property (Contd)

• Donation Form or Donation Agreement must be
  approved by the College President and Vice
  President of Administrative Services prior to
  receipt of property.
• Equipment donations must be sent to Receiving
  Department for appropriate asset tagging.
• Board must ratify within 60 days of acceptance of
  donation items.
• Donations of cash or cash equivalents are handled
  by the Chief Financial Officer.

49
Exercise 5 - Donations

• Peter Painting Supervisor at Valley Tech College
  accepts a donation of 100 gallons of super gloss
  paint from LOL Paint Company. Upon delivery of
  the paint cans to the College, Peter inspects the
  label on the paint cans and determines that the
  paint is lead-based.
• How should Peter have handled this donation?

50
One hour - Lunch Break
51
04-15 Authorization to Pay

• Used in highly limited circumstances for purchase
  of items not competitively procured such as
  library and instructional resources.
• Library books, pamphlets, motion picture film,
  instructional software, testing and audio visual
  materials.
• Requires ratification by Board of Trustees within
  60 calendar days of commencement.
• Information is gathered by Accounts Payable and
  calendared for board ratification by Business
  Services
• Not to be confused with Authorize Payments and
  Confirmation Purchase Order
• Authorize Payments handled only by CPS and
  Business Services
• Mechanism to obtain board authorization for
  reimbursement
• Confirmation Purchase Order not allowed.

52
04-16 Purchasing Card

• Currently under construction by special task
  force appointed by Deputy Chancellor.
• Addresses issues identified in Cal Card Audit.
• New and revised procedures are being recommended
  for Cal Card uses.

53
04-17 Receiving and Acceptance of Procured Items

• The receiving process begins when the vendor
  delivers procured or leased items to the College.
  Once an item is received by the College, it
  begins the obligation, liability and
  accountability for the item.
• Specialty items such as information technology
  equipment or building systems component should be
  inspected by IT staff or Facilities staff prior
  to acceptance.
• Receiving Department must do the following
• Inspect goods for quantity and condition
• Match the packing slip to the purchase document
• Report any discrepancies in item delivery
• Wrong shipment of goods
• Partial delivery/Incorrect quantity
• Defective conditions

54
04-17 Receiving and Acceptance of Procured Items
(Contd)

• Receiving is responsible for completing receipt
  of goods via MIGO transaction in the SAP database
  system, tagging assets and communicating with
  requestors that items have been delivered to
  College.
• Specially funded assets require additional color
  coded inventory tags. (See Asset Management
  Procedures for more specific details.)
• When item is picked up, requestor should sign-off
  acceptance of purchased item.

55
04-18 Invoicing and Payment

• Final step in completing the three way match
  process in the procurement lifecycle.
• Purchase -gtReceiving-gtPayment
• Invoice of Goods/Invoice for Services
• -Invoices are sent to College directly for
  review, approval and entry. Invoices are matched
  directly to signed purchasing or contract
  documents. Determine whether discounts can be
  applied to payments made within 30 days.
• -Payments to vendor is typically the final
  opportunity to question incorrect shipment,
  damaged, goods, price or other such adjustments.
• -All purchases and contracts must be approved by
  the Board within 60 days of commencement.
• -A copy of a fully signed contract must be
  received prior to payment.

56
Getting Vendors Paid

• Vendor entry
• http//www.laccd.edu/business_services/vendor_docs
  /create_vendor_form.xls
• Document entry
• Release of transaction
• Execution of contract
• Deliverables
• Receiving
• Invoice
• Warrant
• Board reporting

57
04-19 Suppliers, Vendor Database and Evaluation

• Suppliers also referred to as vendors are the
  outside businesses from which the
  College/District purchases materials, supplies,
  equipment and services it needs to operate and do
  business. ( No district employees may engage in
  business with the College/District outside of
  their employment contract.)
• A. Sourcing Process of identifying multiple
  suppliers promotes healthy competition for the
  College/Districts business leading to lower
  prices, higher quality, better after-sale service
  and improved value for its dollar.
• B. Vendor Database Maintained by Procurement
  Vendor Maintenance
• New vendors and corrections to existing vendor
  information must be requested through the Create
  Vendor Form
• http//www.laccd.edu/business_services/vendor_docs
  /create_vendor_form.xls
• Vendor Maintenance verifies whether vendor
  appears on the Excluded Parties List System
  maintained by the federal government.
• Vendor must have an existing record in SAP prior
  to purchase entry.

58
04-20 Procurement Considerations for Specially
Funded Programs (SFP)

• Procurement with SFP funds requires additional
  monitoring and oversight to ensure purchases are
  made within grant and grantor agency guidelines.
• Difficult to establish a set of procedures
  encompassing every nuance of the multitude of
  grant agreements in place.
• A. Award of SFP Funds
• Prior to setting up an SFP budget for
  procurement, SFP program director must receive a
  written award letter or offer from the grantor
  agency.
• B. Establish a Budget Cost Center
• Forward documents to District Budget Office. Work
  Breakdown Structure (WBS) code assigned by the
  District Accounting Office upon receipt of
  various documents identified. DO Budget Office
  establishes matching fund center to WBS.

59
04-20 Procurement Considerations for Specially
Funded Programs (Contd)

• C. Establish an SFP Agreement
• Original approved and signed RFC
• RFC entered in SAP database
• Copy of the BTA with Master Data Form
• Original Award Letter
• Original Grant Agreement with Instructions
• For existing SFP Agreement, provide original SAP
  contract number.
• All multi-campus grant agreements must be
  handled by the District Office Contracts Section

60
Template Agreements

• Initial offering of Terms and Conditions must be
  our template agreement
• Contain District-approved language
• Contracts Manager administers/updates
• Please do not change

• www.laccd.edu
• Faculty Staff
• Intranet
• (District Network Only)
• Contract Forms

61
Key Contractual Terms

• Contractor responsibility
• Deliverables
• Timing
• Indemnity provisions
• Insurance
• Warranty
• Payment terms / schedule
• Venue choice of law
• Maximum duration
• Exclusivity
• Non-Collusion Affidavit

62
Key Contractual Terms (Contd)

• Signature authority
• Acceptance of contractor agreements
• Reimbursables
• Rights of termination
• Default
• Non-Discrimination
• Audit rights
• Ownership/licensing of developed product
  (intellectual property) Rights in Data

63
Basic Insurance Considerations

• Template language should not be modified
• Identifies types of insurances required depending
  on services rendered and dollar threshold for
  coverage
• Identifies rating level of insurance as B
  minimum and licensed to do business in California
• District identified as additional insured
• Risk Management must review insurance submitted
• Request to provide proof of District insurance
  and add entity as additional named insured should
  be made with Risk Management.

64
Exercise 6 Contract Terms

• Libby Librarian at Van de Kamp Community College
  would like to lease three new copiers for the
  library on campus. Libby receives a confirmation
  proposal in the amount of 27,000 from Copiers R
  Us. Libby signs the confirmation proposal and
  sends it back to the vendor. Copiers R Us ships
  the equipment to the campus and forwards Libby
  the financing and maintenance agreement for the
  copiers.

65
Exercise 6 - Contract Terms (Contd)

• A. The following terms appear on the financing
  agreement with CNB Bank
• 1. Cancellation This Lease cannot be
  cancelled.
• 2. Choice of Law Any legal claims legal
  proceedings arising out of this Agreement shall
  be subject to the laws of the State of Minnesota.
• 3. Forum/Venue - Any legal claims or
  proceedings shall be brought in the State of
  Minnesota.
• 4. Insurance District/College shall provide
  requisite insurance to cover loss of the
  equipment up to the limits deemed acceptable by
  CNB Bank.
• 5. Remedies District/College sole remedy
  under the Agreement for breach of the lease terms
  shall not exceed the annual payments under the
  lease.
• 6. Term The term of the lease shall be for 15
  years.
• 7. Indemnity College must defend and
  indemnify Copies R Us for any claims, losses or
  damages arising out of or related to Colleges
  use of the copier under the Contract.
• 8. Authorization Approval The signatories on
  the contract are authorized to bind the
  organization to the terms and conditions of the
  contract.

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Property Use Agreements

• Use of Districts property
• Lease vs. license
• Exclusive vs. Non-Exclusive Use
• Civic Center Permits
• Permits for Use / film permits
• Leases up to 14 days No bidding, separate or
  consecutive days in annual year.
• Leases less than 25,000 AND less than 5 years
  No bidding
• Joint occupancy leases handled by Facilities
  Planning Development
• Other public agencies or private schools
• Leases of personal property
• Process summary
• http//www.laccd.edu/board_rules/documents/Chapter
  20VII/Ch.20VII20-20Article20II.doc

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Questions????
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THE END Thank you for your time and attention.

• Please pass your training surveys to the front of
  room.