HomeMy WebLinkAboutCouncil Policy No. 300-13 - Background Checks for Designated Contracts
CITY OF LAKE ELSINORE, CALIFORNIA
COUNCIL POLICY MANUAL
SUBJECT: Background Checks for Policy No. 300-13
Designated Contracts Effective Date: 9/12/06
Page No. 1 of 3
BACKGROUND
The City periodically enters into agreements which involve long-term business
relationships or have a direct impact on City assets. Such agreements including, without
limitation, loans, grants, leases, development agreements, disposition and development
agreements, land purchase and sale contracts and will typically have a value in excess of
$250,000. With respect to such contracts, the City Council desires to take appropriate
measures to increase the likelihood of proper performance of the contract by the other
party(ies) by evaluating the party(ies) background and business history.
PURPOSE
The purpose of this policy is to define the policies and procedures for due diligence and
other procedures to be engaged in by the City Council and City staff prior to entering into
a aforementioned agreements.
POLICY
For agreements fitting the above-described criteria, the policy of the City and the
Redevelopment Agency shall be as follows:
1. Standard Application. The contracting party shall fill out a standard
application in the form attached or such other form as may be established
by the City Manager, which shall include, at a minimum, the following:
a. Name, address, phone and other contact information for the
contracting entity or individual;
b. If the party is an entity, the type of entity, state in which formed,
date of formation, and names of any other entities or individuals
exercising control, directly or indirectly, over the contracting
entity;
c. Information regarding prior felony convictions, bankruptcies
and/or litigation matters involving the entity or individual
preparing the application and any entity or individual exercising
control, directly or indirectly, over the contracting entity;
CITY OF LAKE ELSINORE, CALIFORNIA
COUNCIL POLICY MANUAL
SUBJECT: Background Checks for Policy No. 300-13
Designated Contracts Page No. 2 of 3
d. If the party is an entity, a summary of the entity’s business, and if
the party is an individual, a resume for such individual as would be
customary in the industry into which the proposed transaction falls;
and
e. A signature line whereby the applicant acknowledges and agrees
that, if a letter of intent or exclusive negotiating agreement is
approved by the City or Agency, the City or Agency will perform
background, litigation and bankruptcy searches during such time as
the final contract is being negotiated and prepared, and that the
entry by the City or Agency into the final contract is conditioned
upon satisfactory results of such searches.
2. Letter of Intent/Exclusive Negotiating Agreement. The contracting party
and City or Agency staff may negotiate a letter of intent or exclusive
negotiating agreement regarding the proposed transaction for approval by
the City Council or Agency Board. The form of any such letter of intent
or exclusive negotiating agreement shall be approved by the City Attorney
prior to its submission to the City Council or Agency Board. Any such
letter of intent or exclusive negotiating agreement shall include, in
addition to the material contract terms, the following:
a. A statement that the City Council or Agency’s approval of the
letter of intent or exclusive negotiating agreement is nonbinding
and subject to the performance of due diligence by the City
Attorney and the negotiation and preparation of a legally binding
contract in a form acceptable to the City Attorney and the Council
or Agency Board;
b. A statement that during the time the contract is being negotiated,
any due diligence materials supplied by the contracting party to the
City Attorney will be treated as confidential by the City Attorney
to the extent permitted by law;
c. If appropriate, a section which sets forth language indicating that
the parties agree to negotiate exclusively with each other for a
specific period of time; and
CITY OF LAKE ELSINORE, CALIFORNIA
COUNCIL POLICY MANUAL
SUBJECT: Background Checks for Policy No. 300-13
Designated Contracts Page No. 3 of 3
d. An authorization and release for the procurement of a national
criminal background check, litigation and bankruptcy search, to be
performed during such time as the final contract is being
negotiated and prepared. The authorization and release shall be
signed by those parties requested to sign such a document by the
City or Agency staff or Council or Boards, and shall acknowledge
that the entry by the City or Agency into the final contract is
conditioned upon satisfactory results of such searches.
3. Performance of Background Checks, Litigation and Bankruptcy Searches
a. The City or Agency staff, unless specifically directed by the City
Council or Agency Board or mandated by law, shall, in their
reasonable discretion, determine the extent of the background
check, litigation and bankruptcy searches.
b. The City Council may approve the hiring of a private investigatory
firm or a national search firm to perform background searches at
staff’s direction.
c. Any search shall be performed as promptly as possible after the
execution of the letter of intent or exclusive negotiating agreement,
but in any event the results of such background check or search
shall be delivered to City staff prior to the execution of a legally
binding, final contract.
HISTORY
Adopted by Resolution No. 2006-152 9/12/06
CITY OF LAKE ELSINORE
APPLICATION FOR CONTRACT
The City shall consider the information contained in this application as personal and
proprietary to the Applicant, and the City shall use the information for the sole
purpose of determining the Applicant’s suitability for the proposed project. Unless
otherwise compelled by a court order, the City shall not consider this Statement to be
a public record; provided, however, that the Applicant shall indemnify, defend, and
hold the City harmless from any claim or litigation related to the City’s classification
of this document as exempt from disclosure under the Public Records Act.
BACKGROUND
Name of Applicant:________________________________________________
Address:_________________________________________________________
Phone:___________________________________________________________
Email:___________________________________________________________
Website:__________________________________________________________
If the Applicant is other than an Individual:
Nature of Entity:_____________________ Tax I.D. No.__________________
State in which Formed:_____________________________________________
Date of Formation:_________________________________________________
Names and Titles of Three (3) Primary Officers:__________________________
_________________________________________________________________
Names of any Entity or Individual Exercising Control over the Applicant:______
_________________________________________________________________
If the Applicant is an Individual:
List any Licenses Held and State of Issuance:___________________________
_________________________________________________________________
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EXPERIENCE
How many years has the Applicant been performing work in its industry?
_______________________________________
If the Applicant has performed work under a different name, list the different
business names and describe the relationship to the present business name on a
separate page.
CURRENT WORK IN PROGRESS
List the name of three current projects and a client contact person, with telephone
number, for three current active projects similar to that proposed to be engaged in
with the City of Lake Elsinore:
Project Name: _____________________________________________________
Project Description:_________________________________________________
City/Client Contact:_________________________________________________
(Name and Phone)
Project Name: _____________________________________________________
Project Description:_________________________________________________
City/Client Contact:_________________________________________________
(Name and Phone)
Project Name: _____________________________________________________
Project Description:_________________________________________________
City/Client Contact:_________________________________________________
(Name and Phone)
COMPLETED WORK
Provide the requested information set forth below for the three most recent projects
completed similar to the project for which the Applicant is applying.
Project Name: _____________________________________________________
Project Description:_________________________________________________
City/Client Contact:_________________________________________________
(Name and Phone)
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Date Completed: __________________________________________________
Project Name: _____________________________________________________
Project Description:_________________________________________________
City/Client Contact:_________________________________________________
(Name and Phone)
Date Completed: __________________________________________________
Project Name: _____________________________________________________
Project Description:_________________________________________________
City/Client Contact:_________________________________________________
(Name and Phone)
Date Completed: __________________________________________________
LITIGATION HISTORY
Has any claim (whether mediated, arbitrated, or litigated) been made against your
company in the past five years?___________
Has your company made any claim (whether mediated, arbitrated, or litigated)
against any City or client in the past five years?___________
If you answered “yes” to either of the above, describe the claim(s) using the
format below: (use additional sheets if necessary).
Project Name:__________________________________________________
Claim Amount:_________________________________________________
Other Party Contact:_____________________________________________
(Name and Phone)
Describe the claim(s) on a separate sheet.
BANKRUPTCY
Has the Applicant or any entity or individual exercising control over the Applicant
been in bankruptcy or reorganized within the last ten (10) years? ____________
If so, list the date and court such action was decided in:________________________
_____________________________________________________________________
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CRIMINAL ACTIVITY
Has the Applicant, any entity or individual exercising control over the Applicant, or
any officer of Applicant been convicted of a felony? _________________________
If so, describe the nature of the felony, date of conviction and any related matters:
____________________________________________________________________
____________________________________________________________________
CONTRACT TERMINATION
Has your company been terminated prior to completion of a project by a City or client
in the last five (5) years? ___________________. If yes, provide an explanation
below:
Project Name: _____________________________________________________
City/Client Contact:_________________________________________________
(Name and Phone)
Date of Termination/Rejection:________________________________________
Explanation:_______________________________________________________
_______________________________________________________________
_______________________________________________________________
If more than one (1), describe on additional sheet.
ACKNOWLEDGMENT OF BACKGROUND CHECK, LITIGATION AND
BANKRUPTCY SEARCH
By signing this application, Applicant acknowledges and agrees that, in the event City
and Applicant enter into a letter of intent or exclusive negotiating agreement, the City
may perform a criminal background check, litigation search and bankruptcy search.
Entry by the City into any final, binding contract shall be subject to the satisfactory
completion of such checks and searches. Such checks and searches shall be
performed as promptly as possible after entry by the parties into the letter of intent or
exclusive negotiating agreement, but must be completed prior to the execution of any
final, binding agreement between the parties.
Applicant further agrees to promptly provide to City any other diligence materials
requested by City as a result of its review of this application.
PENALTY OF PERJURY
Applicant hereby declares and certifies under penalty of perjury that the information
contained herein is true, correct, and complete.
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IN WITNESS WHEREOF, the undersigned represents and warrants that he or she
has the right, power, legal capacity and authority to sign this document on behalf of
the Applicant, and has caused this document to be executed by setting hereto his or
her name, title and signature.
APPLICANT:
____________________________________________________________
(Signature) (Date)
____________________________________________________________
(Name and Title of Signatories)
____________________________________________________________
(Legal Name of Applicant)
____________________________________________________________
(Address)
____________________________________________________________
(Phone Number)
____________________________________________________________
(Email)