Contract Policies

AP 6313 Contract Requests

Authority

The Vice President of Business Services and/or Dean of Administrative Services/Controller is responsible for administering these regulations, and is the authority to amend these regulations.

Definition  

These regulations outline the process of submitting contract requests to Business Services when it is necessary for the District to obtain the services of an outside agency, contractor or consultant.

Responsibilities

An individual must not commit District funds by incurring a liability prior to approval from Business Services. Any individual who fails to comply with this regulation may be held personally responsible for any eventual unauthorized expense.

Types of Contracts

Receivable – The District will be receiving revenue from an outside organization. This can include restricted and or categorical funding, lease agreements, contract education or District provided services.

Payable – The District will be paying an outside organization or individual for services, leases, contract education, licenses, and maintenance agreements.

Non-Monetary – The District has an agreement with an outside organization or individual which does not require payment. This could include affiliation agreements, no cost MOUs and facility usage agreements.

All contracts are subject to the required Procurement Standards as set forth in AP 6330 and California EDC §81644 limiting the maximum duration of services contracts to five (5) years and contracts for materials or supplies to three (3) years.  All contracts are subject to the required Procurement Standards as set forth in AP 6330.

MSJC Support Requests

• All contract requests start with a MSJC Support Ticket
  • This includes Amendments to existing contracts, regardless of the request (changing the end date, event rescheduled, increase to an existing agreement) 

• Entering a MSJC Support Ticket 
  • When entering your ticket, any filed marked with an "*" must be completed 
  • Division: This ensures the approval goes to the appropriate Executive Assistant 
  • Department:  A typeable filed specifying the department with the Division (i.e. Information Technology, Cafe, Community Education)
  • Requesting on Behalf of (optional): this is in case the Contract Request is being entered on behalf of someone else)

Note:  The Contracts Team will complete an initial review of your request, if additional approvals are required by other departments (i.e., HR, IT, M&O, or Risk), the Contracts Team will let you know that the request is undergoing additional approvals prior to processing your request. Below is a list of the types of agreements that require additional approvals, and the department that will review and approve the contract request:  

• Student Information (i.e., transcript request) - Review and Approval from IT 

• Computer Software or Hardware – Review and Approval from IT 

• HIPAA for students – Review and Approval from the Student Health Center 

• Concurrent Enrollment – Review and Approval from Financial Aid 

• Field Trips, Insurance, Events – Review and Approval from Risk Management 

• Activities (i.e., Photobooth rental, Paint & Sip) - Review and Approval from Risk Management 

• Catering – First Right of Refusal from Cafe, Review and Approval from Risk Management 
• Independent Contractor (i.e., Guest Speaker, Individual Performers) - Review and Approval from Human Resources 

Contracts that are at the bid limit require the Board of Trustees ratification. The MSJC Support Request must be fully approved at least three (3) weeks prior to the next scheduled Board meeting to ensure placement on the Board agenda.

Contracts cannot be processed until Business Services has received all of the required documentation and approvals. Services shall not be rendered until a fully executed contract is in place. 

If applicable, upon receiving notification from the appropriate District department that the services have been completed, Business Services will invoice the outside organization. 

Procedures – Receivable Contracts

The MSJC Support Request must be submitted with all pertinent information including the account code(s) and a copy of the contract or agreement.. Reach out to your division's Executive Assistant and Leadership to alert them to your request and their requirement to review and approve the ticket. T

1. Obtain agreement, Grant Award Notification, etc.
   • Do not sign; only the Vice President of Business Services is authorized to sign
2. Enter Contract Request into the MSJC Support Portal 
   • Contract Type: Receivable Contract
   • Complete the following fields: 
     • Contract Amount 
     • Contract Start Date 
     • Contract End Date 
     • Campus Location of Project or Service 
     • Description/Purpose of Contract (Scope of Work) - Note: Funding line must be included 
   • After completing the additional fields, you can upload any documentation received (i.e. Proposal, Contract, etc.) 
   • Click on “Place Request” to submit your request. 

3. Meet with Contract Coordinator

Procedures – Payable Contracts

1. Obtain contract, quote, agreement, etc. 
   • Do not sign; only the Vice President of Business Services is authorized to sign
2. Enter Contract Request into the MSJC Support Portal 
   • Contract Type: Payable Contract
   • Complete the following fields: 
     • Contract Amount 
     • Contract Start Date 
     • Contract End Date 
     • Campus Location of Project or Service 
     • Description/Purpose of Contract (Scope of Work) - Note: Funding line must be included 
     • Is this request related to IT/Technology? If your request is related to technology, including accessibility, select “Yes.” If your request does not have any technology or accessibility needs, select “No.” 
     • Does this Request need to go to bid? Review the Current Bid Limit, if the dollar amount is at, or greater than this threshold, select “Yes.” The Agreement will require prior BOT approval. If the dollar is below the Current Bid Limit, select “No”, and complete the additional fields.

• • • Vendor Legal Name 
    • Vendor Contact Name 
    • Vendor Email Address 
    • Vendor Authorized Signer Name 
    • Vendor Authorized Signer Email 
    • Vendor Phone Number 
    • Vendor Address 
    • Upload backup (estimate, proposal, quote, invoice) to request. 
    • Click on “Place Request” to submit your request. 

3. Meet with Contract Coordinator
4. Submit "A"PR in Galaxy

Contracts cannot be processed until Business Services has received all of the required documentation and approvals. Services shall  not be rendered until a fully executed contract is in place.

A contractor cannot be an employee of the District.

Upon completion of a contracted service, an invoice must be submitted by the outside organization or individual . An appropriate District staff member is required to sign the invoice and send the invoice electronically to accounts payable@msjc.edu in order for payment to be made.

Procedures – Non-Monetary Contracts

3. Obtain contract, quote, agreement, etc. 
   • Do not sign; only the Vice President of Business Services is authorized to sign
4. Enter Contract Request into the MSJC Support Portal 
   • Contract Type: Nonmonetary Contract
   • Complete the following fields: 
     • ​​​​​​​Contract Amount 
     • Contract Start Date 
     • Contract End Date 
     • Campus Location of Project or Service 
     • Description/Purpose of Contract (Scope of Work)
     • Is this request related to IT/Technology? ​​​​​​​If your request is related to technology, including accessibility, select “Yes.” If your request does not have any technology or accessibility needs, select “No.” 
     • ​​​​​​​​​​​​​​Upload backup (estimate, proposal, quote, invoice) to request. 
     • Click on “Place Request” to submit your request. 
5. Meet with Contract Coordinator

​​​​​​​A funding line is not necessary for Nonmonetary Contracts as monies are not being exchanged. 

Contracts cannot be processed until Business Services has received all of the required documentation and approvals. Services shall not be rendered until a fully executed contract is in place.

AP 6350 Contracts - Construction

The Vice President of Business Services shall be responsible for the planning and programming of new construction, alterations and repairs of existing plants, and leasing of facilities that require state approval. This includes the planning and programming of college initiated new construction, additions to existing plants, and major alterations and repairs of buildings and grounds.

The Vice President of Business Services shall be responsible for preparation of drawings and specifications for new buildings, leased facilities, additions, major alterations and improvements of buildings and grounds together with estimates of costs.

For major capital construction, the Vice President of Business Services shall be responsible for obtaining approvals by the State Department of General Services - Department of the State Architect and the State Chancellor’s Office for preliminary drawings and final working drawings and specifications for new construction, alterations and repairs of existing plants.

For major capital construction, the Vice President of Business Services shall be responsible for construction cost estimates for preliminary drawings and final working drawings and shall submit cost estimates to the Board for approval and authorization to proceed with project construction.

The letting of contracts for construction shall comply with procedures of the District regarding contracts that exceed the statutory minimums for competitive bidding. (See AP 6340)

AP 6370 Contracts – Independent Contractor Services (Personal & Professional Services)

Authority   

The Superintendent/President and the Vice President of Business Services (or other designee per Board Policy 6150) are the only persons authorized by the Board of Trustees to sign a contract as an enforceable obligation on behalf of the District, regardless of the dollar amount (See BP 6150), even if there is no cost associated with the contract. Contracts and or agreements (MOUs, documents containing terms and conditions, etc.) signed by any individual other than those authorized by the Board are not valid or binding on the District. Any unauthorized individual who signs a contract or agreement will be held personally responsible for the value of the contract. All contracts must be in writing and are subject to the requirements of federal and state codes and regulations.  

Board approval must be obtained prior to the signing and implementation of contracted services that exceed the amounts specified in Public Contract Code 20651.   

Definition   

The term “independent contractor” is commonly used for IRS purposes. The services of an independent contractor generally are of a limited or temporary nature. An independent contractor must meet specific criteria, as determined by the District (listed below) and the current requirements for independent contractors per IRS rules as well as California AB 5, to be qualified to contract with the District   

If an employer-employee relationship exists, then the individual must be hired as an employee, per IRS rules.     

• The District has two categories of independent contractors:
  • Personal Services — Personal services are services of a short term, temporary nature. Deliverables or outcomes to be provided are not complex. Examples of personal services would be an entertainer, Special event presenter, or a professional development workshop facilitator. These services are typically one-time or for a specific limited duration (e.g., 2 workshops, 1 speaking engagement, etc.) 
  • Professional Services — Professional services are services which are complex in nature, where the deliverables or outcomes require a high level of professional expertise. Examples of professional services would be an attorney, auditor, architects, engineers, psychologist, professional consultant (e.g., public bond, environmental consultant, specialty analysis/service), construction inspector, etc.   

• To be an independent contractor, substantial conformance with the following conditions must exist:
  • No contractor is free from the control and direction of the District in connection with the performance of the work, both under the contract for the performance of the work and in fact.
  • The contractor performs work that is outside the usual course of the District's business.
  • The contractor is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.
  • The independent contractor is not restricted from taking jobs from other businesses while working for the District.
  • The District does not provide assistants to the independent contractor.
  • The independent contractor must provide services to the District, rather than the District's customers (students).
  • The independent contractor must perform work that is outside of the District's line of business (educating students).
  • The duration of employment is for a specific job, not for a specified period of time.
  • The District does not furnish tools, training or equipment to the independent contractor. Independent contractor should be able to perform services without the District’s facilities, e.g., equipment, office furniture, machinery.
  • The Independent contractor’s investment in his/her trade must be real, essential and adequate.
  • The Independent contractor has an employer identification number for an established business with the Internal Revenue Service and, if applicable, the California Employment Development Department for reporting employer payroll taxes and employee wages.
  • Independent contractor is hired to provide a result and usually has the right to hire others to do the actual work, as long as they are employees of the contractor.
  • Independent contractor is hired for the final result and, therefore, should not be asked for progress or interim reports.
  • Independent contractor is generally responsible for his/her/their incidental expenses.
  • Independent contractor should be able to make a profit or a loss. Five circumstances show that a profit or loss is possible: (1) Independent contractor hires and pays assistants; (2) Independent contractor has his/her own office, equipment, material or facilities; (3) Independent contractor has continuing and reoccurring liabilities; (4) Independent contractor has agreed to perform specific jobs for prices agreed upon in advance; (5) Independent contractor’s services affect his/her own business reputation.   

• The District may enter into personal services contracts (all services currently or customarily performed by classified school employees) to achieve cost savings when each of the following conditions is met:
  • It can be clearly demonstrated that the proposed contract will result in actual overall cost savings to the District;
  • The contractor’s wages are at the industry's level and do not undercut District pay rates;
  • The contract does not cause the displacement of district employees;
  • The savings are large enough to ensure that employees will not be eliminated by private sector and District cost fluctuations that could normally be expected during the contracting period;
  • The amount of savings clearly justifies the size and duration of the contracting agreement;
  • The contract is awarded through a publicized, competitive bidding process;
  • The contract includes specific provisions pertaining to the qualifications of the staff that will perform the work under the contract, as well as assurance that the contractor's hiring practices meet applicable nondiscrimination standards;
  • The potential for future economic risk to the District from potential contractor rate increases is minimal;
  • The contract is with a firm; and
  • The potential economic advantage of contracting is not outweighed by the public's interest in having a particular function performed directly by the District.

• Personal service contracts are also permissible when any one of the following conditions is met:
  • The contract is for new functions mandated or authorized by Legislature to be performed by independent contractors.
  • The services are not available within the District or cannot be satisfactorily performed by District employees.
  • The services are incidental to a purchase or lease contract.
  • The work done is for the District directly, not the District's customers (students)
  • The policy, administrative, or legal goals and purposes of the District cannot be accomplished through the regular or ordinary hiring process.
  • The work meets the criteria for emergency appointment.
  • Equipment, materials, facilities, or support services could not feasibly be provided by the District.
  • The services are of an urgent, temporary, or occasional nature.   

• District employees, including associate faculty, cannot be contracted as an independent contractor. An individual cannot be both a District employee and an independent contractor at the same time unless each of the following apply:
  • It can be clearly demonstrated that the work being performed has no relationship to work being performed as a District employee and that work cannot be construed as falling within the definition of the individual’s job description or classification.
  • The entirety of the work for the contracted engagement is performed on the employee's non-work time without the use of any District facilities or equipment.
  • Independent contractor must supply the district with an EIN number (See AP 6313) from their already-established business that has been operating for a minimum of 6 (six) months prior to the start or signing date of the contract.   

• PRIOR to obtaining services from an employee who has retired from the district within the last five years, approval from the Vice President of Business Services must be obtained to ensure that employees’ retirement benefits are not jeopardized.

NOTE:  AB 5, which went into effect on January 1, 2020, codified the “ABC” test for determining independent contractor status that the California Supreme Court adopted in its 2018 decision, Dynamex Operations West, Inc. v. Superior Court (2018) 4 Cal.5th 901.  However, the longstanding multifactor test established in S.G. Borello & Sons, Inc. v. Department of Industrial Relations (1989) 48 Cal.3d 341, still applies to certain occupations.  These occupations include: insurance agents; medical professionals such as physicians, dentists, podiatrists, psychologists, and veterinarians; licensed professionals such as attorneys, architects, engineers, private investigators, and accountants; financial advisers; direct sales salespersons; commercial fisherman; some contracts for professional services for marketing, human resources administrators, travel agents, graphic designers, grant writers, fine artists, freelance writers, photographers and photojournalists, and cosmetologists; licensed real estate agents; “business service providers”; construction contractors; construction trucking services; referral service providers; and motor club third party agents.  Districts should consult with legal counsel if there is a question as to which test to apply to a particular contractor’s occupation.

BP 3560 Alcoholic Beverages

Alcoholic beverages shall not be served on campus except in accordance with the procedures outlined in AP 3560. All requests to serve alcoholic beverages on district property must be approved by the Board of Trustees prior to the event taking place.   

The Superintendent/President is authorized to enact procedures as appropriate and permitted by law regarding serving alcoholic beverages on campus or at fund-raising events held to benefit non-profit corporations.

BP 3710 Securing of Copyright

The Superintendent/President is directed to develop appropriate administrative procedures to implement the provisions of the Education Code which authorize the securing of copyright protection for works, including but not limited to registering copyrights and policing infringements, on behalf of the District. The procedures developed by the Superintendent/President shall assure that the District may use, sell, give or exchange published materials and may license materials prepared by the District in connection with its curricular and special services.   

In the development of these procedures, the Superintendent/President shall solicit the input of the proper representatives of the college community in accordance with the District’s policies regarding shared local decision-making.

 

Prohibition of Copyright Infringement

The Mt. San Jacinto Community College District (MSJCCD) and all of its employees will comply with the U.S. Copyright Law and the Digital Millennium Copyright Act. District employees and students are prohibited from using the MSJCCD network, computers or other property to illegally share copyrighted intellectual property.   

Copyright provides legal protection for creative intellectual works that include, but are not limited to: e-mails, website information, images, graphics, art, photography, music, video, and software. In order to use copyrighted materials, you must obtain the copyright owner’s permission, or you must qualify for a legal exception (“fair use” https://www.copyright.gov/fls/fl102.html).   

Illegally sharing copyrighted materials includes, but is not limited to:

• Downloading and sharing MP3 files of music, videos, and games without permission of the copyright owner
• Using corporate logos without permission
• Placing an electronic copy of a standardized test on a department's website without permission of the copyright owner
• Enhancing a departmental website with music that is downloaded or artwork that is scanned from a book, all without attribution or permission of the copyright owners
• Scanning a photograph that has been published and using it without permission or attribution
• Placing a number of full-text articles on a course web page that is not password protected and allowing the web page to be accessible to anyone who can access the Internet
• Downloading licensed software from non-authorized sites without the permission of the copyright or license holder
• Making a movie file or a large segment of a movie available on a website without permission of the copyright owner   

Under the law, college administrators may be obligated to provide copyright holders with information about users of the MSJCCD network, computers or other property who have violated the law.   

Violators of the law may be subject to criminal and civil penalties and/or academic sanctions from the college that may include termination of District computer accounts or termination of other network privileges.   

The Recording Industry Association of American provides sources that offer legal downloading sites at riaa.com