HomeMy WebLinkAboutResolution 1960 - 0884RESOLUTION NO.884
A JOINT RESOLUTION OF THE BOARDS OF DIRECTORS OF
COUNTY SANITATION DISTRICTS NOS.1,2,3,5,6,7
AND 11,OF ORANGE COUNTY,CALIFORNIA,ADOPTING A
PURCHASING SYSTEM,ESTABLISHING THE POSITION OF
PURCHASING OFFICER AND ADOPTING POLICIES AND
PROCEDURES GOVERNING PURCHASES OF SUPPLIES,
EQUIPMENT AND SERVICES
WHEREAS,Section 54202,Government Code,State of California,
requires that every local agency shall adopt policies and procedures,
including bidding regulations,governing purchases of supplies and
equipment and that purchases of supplies and equipment by the local
agency shall be in accordance with said duly adopted policies and
WHEREAS,Section 54204,Government Code,State of California,
requires that if the local agency is other than a city,county,or
city and county,policies provided for in Section 54202 of said Code
shall be adopted by means of a written rule or regulation,copies of
which shall be available for public distribution,and
WHEREAS,in order to establish efficient procedures for the
purchase of supplies,services and equipment,to secure for the
District and for the Joint Administrative Organization supplies,
services and equipment at the lowest possible cost commensurate with
quality needed,to exercise positive financial control over pur
chases,to clearly define authority for the purchasing function and
to assure the quality of purchases,a purchasing system for the
Districts and the Joint Administrative Organization beyond what is
required by said sections of the Government Code is necessary and in
the best public interest;
NOW THEREFORE BE IT RESOLVED that the Boards of Directors of
County Sanitation Districts Nos.1,2,3,5,6,7 and 1].of Orange
County,California
DO HEREBY DETEPJCENE AND ORDER THAT:
Section 1.Purpose and Intent The purpose and intent of this
resolution is to adopt policies and procedures,including bidding
regulations,governing purchases of supplies and equipment as re—
quired by Section 54202,Government Code,State of California,and to
establish a purchasing system for the District and the Joint Adm.thi
strative Organization.
Section 2.Purchasing Officer There is hereby created the
position of Purchasing Officer of the District and of the Joint Ad
ministrative Organization.He shall be recommended by the General
Manager for appointment by the Board of Directors in compliance with
existing personnel resolutions and policies.The Purchasing Officer
shall be the head and have general supervision of the Purchasing
Department.The duties of the Purchasing Officer may be combined
with those of any other office or position.
Section 3.Duties of Purchasing Officer The Purchasing
Officer shall have authority to and shall
(a)Purchase or contract for supplies,services and equip
ment required in accordance with the procedures de
scribed by this resolution.
(b)Negotiate and recommend execution of contracts for the
purchase of supplies,services and equipment or for the
sale of surplus property and by-products of the sewage
treatment processes.
(c)Act to procure for the District and the Joint Admini
strative Organization the needed quality in supplies,
services and equipment at the least expense.
(d)Discourage uniform bidding and endeavor to obtain as
full and open competition as possible of all purchases
and sales.
(e)Prescribe and maintain such forms as are reasonably
necessary for the operation of an efficient purchasing
system.
(r)Supervise the inspection of all supplies and services
and equipment purchased to insure conformance of
specifications therefor.
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(g)Maintain a Bidders’List,Vendor’s Catalogue file and
records needed for the efficient operation of a
purchasing system.
Section 4.Requisitions All employees of the Joint Admini
~trative Organization who need or require supplies,services and
er’~iipment to carry out’the defined duties of their positions shall
E’ubmit requisitions for purchases to the Purchasing Officer on
standard requisition forms.
Section 5.Competitive Bids All purchases and sales,except
rc otherwise provided,in excess of $150,shall be based on com
petitive bids;provided that if limitations on the source of supply,
necessary restrictions in specifications,urgency to prevent loss of
J.ife or damage to property,or other valid reason appears for waiving
competition,the Purchasing Officer may do so in the manner as here
inafter provided,and upon approval of the Board of Directors in the
event the expenditure or sale would or could exceed $2,000.
SectIon 6.ClassifIcation of Purchases,Sales and Contracts
There are hereby established four (4)classifications of transactions
for purchases,sales and contracts as follows:
(a)Public Works contracts for more than $14,500.
(b)Public Works contracts for less than $4,500.
(c)Purchase and sales of services,supplies and equipment
in amounts exceeding $2,000.
(d)Purchase and sales of services,supplies and equipment
in amounts less than $2,000.
Section 7.Public Works Contracts Defined Public works
contracts are herein defined as contracts with duly licensed con
tractors of the State of California for the furnishing of labor and
materials and equipment for the construction and/or repair of sewer
age facilities and appurtenant buildings and the structures necessary
to the operation of the Joint Administrative Organization.
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Section 8.Public Works Contracts for More Than $4,500 Pro
cedures for soliciting bids and awarding contracts for public works
contracts for more than $4,500 shall be in accordance with Section
4755,Health and Safety Code,State of California,which reads as
follows:
“When the expenditure required for the work exceeds four
thousand five hunth~ed dollara ($4,500),it shall be con
tracted for and let to the lowest responsible bidder after
notice.The notice inviting bids shall set a date for the
opening of bids.The first publication or posting of the
notice shall be at least 10 days before the date of opening
the bids.Notice shall be published at least twice,not less
than five days apart,in a newspaper of general circulation,
printed and published in the district,or if there is none,
it shall be posted in at least three public places in the
district that have been designated by the district board as
the places for posting such notice.The notice shall
distinctly state the work to be done.
In Its discretion,the district board may reject any bids
presented and readvertise.If two or more bids are the
same and the lowest,the district board may accept the one
it chooses.If no bids are received,the district board may
have the work done without further bid.
If all bids are rejected,the district board on a resolution
adopted by a four-fifths vote may declare that the work can
be performed more economically by day labor,or the materi
als or supplies furnished at a lower price in the open mar
ket and may have the work done in a manner stated in the
resolution in order to take advantage of this lower cost.
If there is a present or anticipated great public calamity,
as an extraordinary fire,flood,storm or other disaster
the district board may by resolution adopted by a four-fifths
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vote declaring that the public interest and necessity demand
immediate expenditure of public money to safeguard life,
health or property expend any sum required in the emergency
without submitting such expenditure to bid.
Cost records of the work shall be kept in the manner pro
vided in Sections 4000 to 4007,inclusive,of the Government
Code.The provisions of this section shall not apply to
sewerage maintenance,repair work,or to any uncompleted
works under construction by district forces prior to the
enactment of this section,and.shall not be construed to
exempt any work from the provisions of Part 7 (commencing at
Section 1720)of DiviSion 2 of the Labor Code.”
Procedures for such contracts shall also be in conformity with the
applicable provisions of Sections 4000 et seq.,Government Code,
State of California.
Section 9.Public Works Contract8 for Less Than $4,500
Public works contracts for less than $2,000,upon approval of the
Board of Directors,shall be let by the Purchasing Officer as pre
scribed in Section 11 hereof without recourse to formal advertisement.
Public works contracts In excess of $2,000,but less than $4,500,
upon approval of the Board of Directors,shall be let by the Pur
chasing Officer in accordance with the procedures of Section 10
hereof.
Section 10.Purchases and Sales Exceeding $2,000 Except as
otherwise provided herein,purchases and contracts for supplies,
services,equipment and the sale of personal property of estimated.
value greater than $2,000 shall be by written contract with the
lowest responsible bidder for purchases or highest responsible bidder
for sales,pursuant to the procedure prescribed herein.
(a)Notice Inviting Bids Notices inviting bids shall in
clude a general description of the articles or services
to be purchased or sold,shall state where bid,blanks
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and specifications may be secured,and the time and
place for opening bids.
(1)Published Notice Notice inviting bids shall be
published at leaat ten days before the date of
opening of the bids.Notice shall be published
at least once in a newspaper of general circu
lation,printed and published in the County of
Orange.
(2)Bidders’List The Purchasing Officer shall
also solicit sealed~bids from all responsible
prospective suppliers whose names are on the
Bidders’List or who have requested their names
to be added thereto.
(3)Bulletin Board The Purchasing Officer shall
also advertise pending purchases or sales by a
notice posted on a public bulletin board in the
Adininis trative Office.
(b)Bidder’s Security When deemed necessary by the Pur
chasing Officer,bidder’s security may be prescribed in
the public notices inviting bide.Bidders shall be en
titled to return of bid security,provided that a
successful bidder shall forfeit his bid security upon
refusal or failure to execute the contract within ten
(10)days after the notice of award of contract has
been mailed,unless the Districts are responsible for
the delay.The Board of Directors may,on refusal or
failure of the successful bidder to execute the con—
tract,award it to the next lowest responsible bidder.
If the Board of Directors awards the contract to the
next lowest bidder,the amount of the lowest bidder’s
security shall be applied by the Districts to the dif
ference between the low bid and the second lowest bid,
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and the surplus,if any,shall be returned to the
lowest bidder.
(c)Bid Opening Procedure Sealed bids shall be submitted
to the Purchasing Officer and.shall be Identified as
bids on the envelope.Bids shall be opened In public
by the Purchasing Officer and Secretary.at the time and.
place stated In the public notices.A tabulation of
all bids received shall be open for public inspection
during regular business.hours for a period of not less
than thirty (30)calendar days after the bid opening.
(d)Re of Bids In its djecretion,the Board of
Directors may reject any and all bids presented and
readvertise for bids.
(e)Award of Contracts Contracts shall be awarded by the
Board of Directors to the lowest responsible bidder
except as otherwise provided herein.
(f)Tie Bids If two or more bids received are for the
same total amount or unit price,quality and service
being ecual and if the public interest will not permit
the delay of readvertising for bids,the Board of
Directors may accept the one it chooses or accept the
lowest bid made by negotiation with the tie bidders at
the time of the bid opening.
(g)Performance Bonds The Purchasing Officer shall have
authority to require a performance bond before entering
a contract in such amount as he shall find reasonably
necessary to protect the best interest of the Districts.
If the Purchasing Officer requires a performance bond,
the form and amount of the bond shall be described in
the notice inviting bids.
Section 11.Purchases and Sales for Less Than $2,000
Purchases of supplies,equipment,contractual services,and sales of
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personal property of an estimated value in the amount of $2,000 or
less may be made by the purchasing Officer in the open market without
observing the procedure prescribed by Section 10.However,the fol
lowing procedures shall apply;
(a)Minimum Number of Bids Open market purchases or sales
shall,wherever possible,be based on at least three
bids,and shall be awarded by the purchasing Officer
to the lowest or highest responsible bidder,as the
case may be.
(b)Notice Inviting Bids The purchasing Officer shall
solicit bids by written requests to prospective vendors
or purchasers,by telephone,and by public notice
posted on a public bulletin board in the Admini
strative office.
(c)Written Bids Sealed written bids shall be submitted
to the Purchasing Officer on forms prepared by him and
mailed or delivered in envelopes especially designated
for the bid.The Purchasing Officer shall keep a
record of all open market orders and sales and bids for
a period of one year after the submission of bids or
the placing of-orders.This record,while so kept,
shall be open to public inspection.In the event the
cost is considered too small or the urgency too great,
verbal or telephone quotations may be solicited and
a record shall be made noting the facts of the ex
ception in procedure.
(d)Sales Sales shall be approved by the Board of
Directors in accordance with Section 16.
Section 12.Purchase Orders Purchases Of supplies,services
(other than consulting services)and equipment shall be made only by
purchase order signed by the Purchasing Officer or his designee.The
Purchasing Officer shall be responsible to the Boards of Directors
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that purchase orders issued are in conformity with.the spirit and
intent of this resolution and that no purchase has been broken into
smaller units to evade any requirement of this resolution.The
Purchasing Officer shall retain,in his files,one copy of all pur
chase orders issued during two years preceding,on which copy of the
purchase order there shall be a list of bidders and prices bid for
the material or equipment purchased,or if no bids or quotations were
taken or received,a full statement as to the reasons therefor.A
record of all sales of surplus property and by-products shall also be
maintained by the Purchasing Officer upon or in which is maintained
the record of the bids received for the property or by-products sold,
or if bids were not taken or received,a full explanation thereof.
Such records shall be maintained for two years after the sale.
Seet±on 13.Encumbrance of ~ir)ds Except in cases of emergency,
the Purchasing Officer shall not issue any purchase order for
supplies,services or equipment unless there exi.ata an unencumbered
appropriatIon in the fund account agaInst which said purchase is to
be charged.
Section 14.Emer~ency Purchases Emergency purchases may be
made by the Purchasing Officer or his designees without regard to the
provisIons of thIs resolution when a grave emergency arises which is
or may be a threat to continued operatIon of the sewerage facilities
arid.administrative offices operated by the Districts or when such
purchases are immediately necessary for the preservation of life or
property or to avoid a threat to the public health.Such emergency
purchases when in excess of $2,000 for any one item shall be made
only after communication with the Chairman of the Joint Administra
tive Organization,or hIs designee,or the Chairman of the Board of
Directors of the DistrIct involved,or his designee,as the case may
be.A copy of any such purchase orders issued for emergency purposes
shall be filed and shall have written upon it a full statement of the
clrcumsiences from which the emergency arose and shall be approved,,
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when in excess of $2,000,by the Board of Directors or Joint Boards
of Directors,as the case may be,at its next regular meeting,before
payment can be authorized.
Section 15.Inspection and Testing The Purchasing Officer
shall inspect supplies and equipment delivered,and contractual ser
vices performed,to determine their conformance with the specifi
cations set forth in the order or contract.The Purchasing Officer
shall have authority to require chemical and physical tests of
samples submitted with bids and samples of deliverie3 which are
necessary to determine their quality and conformance with specifi
cations.
Section 16.Sale of Surplus Supplies and Equipment In the
event the Purchasing Officer determines that any supplies,equipment,
furnishings or other personal property are no longer needed by any
District or the Joint Administrative Organization,he shall forthwith
obtain approval from the Board of Directors in order to proceed for
its sale.Such approved sales shall be made pursuant to Sections 10
and 11 hereof,whichever is applicable.
Section 17.Sale of Real Property No real property of the
District may be sold or any negotiations leading to such sale may be
made without prior approval of the Board of Directors.
Section 18.GratuIties The acceptance of any gratuity in the
form of cash,merchandise or any other thing of value by any official
or employee of the District or of the Joint Administrative Organi
zation from any vendor or contractor,or prospective vendor or con
tractor,shall be deemed to be a violation of this resolution and
shall be cause for disciplinary action by the Board of Directors,as
provided In Resolution No.762.
The offer of any such gratuity to any official or employee of
the Districts by any vendor or contractor,or prospective vendor or
contractor,shall be cause for declaring such Individ~ia1 or finn to
be an irDesponsible bidder and for debarring him from future bidding.
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Section 19.Non Conjpliance Any transaction falling to comply
with this resolution in any respect is voidable in the discretion of
the Board of Directors and any employee willfully and knowingly
violating any provision of this.resolution will be subject to disci
plinary action by the Board of Directors,as provided in Resolution
No.762.
Section 20.Repeal of Conflicts All prior resolutions or
motions or portions thereof in conflict herewith are hereby rescinded
and made of no further effect.
Section 21.Effective Date This resolution shall take effect
on October 1,1960.
STATE OF CALIFORNIA
55
COUNTY OF ORANGE
I,FRED A.HARPER,Secretary of the Boards of Directors of
County Sanitation Districts Nos.1,2,3,5,6,7 andli of Orange County,
California,do hereby certify that the above and foregoing Resolution
No.88)4 was’regularly passed and adopted at a regular meeting of said
Boards on the 1)4th day of September,1960,by the following roll call
vote,to wit:
AYES:Directors Cornwell,Boer,Breting,Cook,DeCamp,Dunham,
Featherly,Fry,Thirman,Stewart,Hall,Kanno,Kidd,Lambert,
Meyers,Parks,West,Pellerin,Stoddard and.Walker
Directors None
Directors Baroldi,Bell,Lorenz and,McBratney
IN WITNESS WHEREOF,I have hereunto set my hand.this 14th day
of September,1960-
NOES:
i3~BSENT:
A
~rper,Secreta&’y of
The Boards of Directors Of County
Sanitation Districts Nos.1,2,3,5,
6,7 and 11 of Orange County,California