HomeMy WebLinkAboutResolution 1974 - 0098RESOLUTION NO.’71~_98
PURCHASING RESOLUTION
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 AND POLICIES AND
PROCEDURES GOVERNING PURCHASES OF SUPPLIES AND
EQUIPMENT,AND REPEALING RESOLUTION NO.88~4
WHEREAS,Section 51~2O2,Government Code,State of California,
requires that every local agency shall adopt policies and proce
dures,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 5112011,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 511202 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 and equipment,to secure for the Districts and
for the Joint Admini.strative Organization supplies and equipment at
the best possible cost to said Districts and Joint Administrative
Organization commensurate with required quality and delivery,to
exercise positive financial control over purchases,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 desirable 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 11 of Orange
County,California,
DO HEREBY DETERMINE AND ORDER THAT:
I
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 required
by Section 5~I2O2,Goverment Code,State of California,and to estab
lish a purchasing system for said Districts and the Joint Administrative
Organization.
Section 2.Purchasing Officer —There is hereby created the
position of Purchasing Officerof the Districts and of the Joint
Administrative Organization.The Purchasing Officer shall be the
head and have general supervision of the Purchasing Division.The
Purchasing Officer shall be bonded in an amount determined by the
Boards of Directors.The duties of the Purchasing Officer are hereby
vested in the position of Director of Finance.
Section 3.Duties of Purchasing Officer —The Purchasing
Officer,or his designee,shall have authority to and shall:
(a)Purchase and/or contract for supplies and equipment
required in accordance with the procedures described
by this resolution.
(b)Negotiate and recommend execution of contracts for
the purchase of supplies and equipment or for the
sale of surplus property~and by—products of the
sewage treatment processes.
‘
(c)Preparation of all contracts and appurtenant
documents,which said documents shall be delivered
to the Secretary for custodianship.
(d)Act to procure for the Districts and the Joint
Administrative Organization the needed quality In
supplies and equipment at the best cost.
(e)Discourage uniform bidding and endeavor to obtain
as full and open competition as possible of all
purchases and sales.
(f)Prescribe,maintain and enforce such procedures
and forms as are reasonably necessary for the
operation of an efficient purchasing,Inventory
and property control system.
(g)Have custodianship and control of all inventories
or surplus property.
(h)Supervise the inspection of all supplies and
equipment purchased to insure conformance to
specifications therefor.
Ci)Maintain a Bidders’List,Vendors’Catalogue file
and records needed for the efficient operation
of a purchasing system.
Section 4.Requisitions —All employees of the Joint Admini—
strative Organizationwho need or require supplies and equipment to
carry out the defined duties of their positions shall submit
requisitions for purchases or warehouse requisitions to the Purchasing
Officer on standard requisition forms.
Section 5.Competitive Bids —All purchases and sales,except
as otherwise provided,in excess of $500,shall be based on corn—
petitive bids;provided that if limitations on the source of supply,
necessary restrictions in specifications or prior experience has
proven that a particular make and type of equipment or material or
supplies is required or more satisfactory or economical for District
purposes in which case a written statement shall be required of the
Department Head requisitioning said supplies or equipment,urgency
to prevent loss of life or damage to property,or where the public
health or safety is threatened,or other valid reason appears for
waiving competition,the Purchasing Officer may do so in the manner
as hereinafter provided,and upon approval of the Board of Directors
in the event the expenditure or sale would or could exceed $4,500.
Section 6.Classification of Purchases,Sales &Contracts —
There are hereby established four (4)classifications of transactions
for purchases,sales and contracts as follows:
(a)Public Works contracts for more than $4,500.
(b)Public Works contracts for less than $4,500.
•Cc)Purchase and sales of supplies and equipment
in amounts exceeding $~4,500.
(d)Purchase and sales of supplies and equipment
in amounts less than $4,500.
Section 7.Public Works Contracts Defined —Public works
•contracts are herein defined as contracts with duly licensed
contractors of the State of California for the furnishing of labor
and materials and equipment for the construction and/or repair of
sewerage facilities and appurtenant buildings and the structures
necessary to the operation of a District or the Joint Administrative
Organization.
Section 8.Public Works Contracts for More Than $11,500 —
•Procedures for soliciting bids and awarding contracts for public
works contracts for more than $14,500 shall be in accordance with
•
Section 4755,Health and Safety Code,State of California,which
reads as follows:
t’When the expenditure required for the work exceeds
four thousand five hundred dollars ($4,500),it shall
be contracted 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 moxe 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 materials or
supplies furnished at a lower price in the open
market and may have the work done in a manner
stated in the resolution in order~to take advan
tage 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 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
provided 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 toexèmpt 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 Section 4000 et seq.,Government Code,
State of California.
Section 9.Public Works Contracts for Less Than $4,500 —
Public works contracts for less than $4,500 shall be let by the
Purchasing Officer as prescribed in Section 11 hereof without recourse
to formal advertisement.
Section 10.Purchases and Sales Exceeding $4,500 —Except as
otherwise provided herein,purchases and contracts for supplies and
equipment and the sale of personal property of estimated value
greater than $14,500 shall be by written contract with the lowest
responsible bidder for purchases or highest responsible bidder
for sales,pursuant to the procedures prescribed herein.
(a)Notice Inviting Bids —Notices inviting bids shall
include a general description of the articles to
be purchased or Sold,shall state where bid blanks
and speclfications may be secured,and the time
and place for opening bids.
(1)Publishe.d Notice —Notice inviting bids
shall be published at least ten days
before the date of the bids.Notice
shall be published at least once In a
•
newspaper of general circulation,printed
In the County of Orange.
(2)BIdders’List —The Purchasing Officer
shall also solicit sealed bids from all
qualified 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 Joint Administrative Office.
(b)Bidder’s SecurIty —When deemed necessary by the Purchasing
Officer,bidder’s security may be prescribed In the
public notices Inviting bids.Bidders shall be entitled
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 contract,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 difference between the low bid and the
second low bid,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)Rejection of Bids —In its discretion,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 equal and if the public interest will not
permit the delay of readvertisirig 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 $~4,50O —Purchases
of supplies and equipment and sales of personal property of an estimated
value in the amount of $~,5OO or less may be made by the Purchasing
Officer in the open market without observing the procedure prescribed
by Section 10.However,the following 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,or by telephone,and by public notice
posted on a public bulletin board in the Joint Admini—
strative office.
Cc)Written Bids —Written bids may 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,
or for expediency,verbal or telephone quotations may
be solicited and a record shall be so made.
Section 1?.Sales —Sales shall be approved by the Boards of
Directors.Such approved sales shall be made pursuant to Sections 10
and 11 hereof whichever is applicable.
Section 13.Purchase Orders —Pursuant to Section ~l,purchases
of supplies and equipment shall be made only by purchase order signed
by the Purchasing Officer or his designee.The Purchasing Officer
and employees requisitioning supplies and equipment shall be
responsible that orders and requisitions 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 purchase 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.
Section l1~.Encumbrance of Funds —Except in cases of emergency
the Purchasing Officer shall not issue any purchase order for supplies
or equipment unless there exists an unencumbered appropriation in
the fund against which said purchase is to be charged.
Section 15.Emergency 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,support facilities and administrative offices operated
by the Districts or when such purchases are immediately necessary for
the preservation of life or property and equipment or to avoid a
threat to the public health.Such emergency purchases when in excess
of $~I,5OO for any one item shall be’made only after communication
with the Chairman of the Joint Administrative 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 circumstances
from which the emergency arose and shall be approved,when In excess
of $1~,5OO,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 16.InspectIon and Testing —The Purchasing Officer
shall inspect supplies and equipment delivered,to determine their
conformance with the specifications 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
deliveries which are necessary to determine their quality and con—
•formance with specifications.
Section 17.Surplus Supplies and Equipment —All Departments
and/or Divisions shall submit to the Purchasing Officer,at such times
and in such forms as he shall prescribe,reports showing all supplies
and/or equipment which are no longer used or which have become
obsolete or worn out.The Purchasing Officer shall have authority,
pursuant to provisions of this resolution,to sell or to exchange for
or trade in on new supplies and equipment all supplies and equipment
which cannot be used by any other Department or Division,or which
have become unsuitable for Districts’use.
Section 18.Sale of Real Property —No real property of the
Districts may be sold or any negotiations leading to such sale may
be made without prior approval of the Board of Directors.
Section 19.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 Districts or of the Joint Administrative
Organization from any vendor or contractor,or prospective vendor or
contractor,shall be deemed to be a violation of this resolution and
shall be cause for disciplinary action by the Board of Directors.
•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 individual or firm to
be an irresponsible bidder and for debarring him from bidding.
Section 20.Non Compliance —Any transaction failing to
comply with this resolution in any respect is voidable in the dis
cretion of the Board of Directors and any employee willfully and
knowingly violating any provision of this resolution will be subject
to disciplinary action.
Section 21.Severability —If any section,subsection,sub
division,sentence,clause or phrase of this resolution is for any
reason held to be unconstitutional or otherwise invalid,such invalidity
shall not affect the validity of the entire resolution or any of
the remaining portions thereof.The Board of Directors hereby
declares that it would have passed this resolution,and each section,
subsection,subdivision,sentence,clause and phrase hereof,
irrespective of the fact that any one or more sections,subsections,
subdivisions,sentences,clauses or phrases be declared unconstitu—
tional or otherwise invalid.
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Section 22.Repeal of Conflicts —Resolution No.881!and all
prior resolutions or motions or portions thereof in conflict herewith
are hereby rescinded and made of no further effect.
•Section 23..Effective Date —This resolution shall take effect
on August 15,19711.
S
PASSED AND ADOPTED at a regular meeting held August 111,19711.
STATE OF CALIFORNIA
SS..
COUNTY OF ORANGE
I,J0 WAYNE SYLVESTER,Secretary of the Boards of Directors
of County Sanitation Districts Nos.l~2,3,5,6,7,and 11,of
Orange County,California,do hereby certify that the above
and foregoing Resolution No.7~—98 was regularly passed and
adopted at a regular meeting of said Boards on the lath day of
•August ,l97~,by the following.vote,to wit:
AYES:Directors Donald Winn (Chairman),Gilbert Arbiso,Jr.,
David Baker,Robert Battin,John Burton,Edward
Byrne,Michael Callahan,Dale Chaput,Ralph Clark,
Norman Culver,Jesse Davis,Milan Dostal,Alvin Coen,
Roland Edwards,Donald Fox,Beth Graham,Jess Perez,
Miriam Kaywood,Charles Long,Leonard MacKain,Don
•Mclnnis,Thomas Blackman,Robert Nevil,Bob Perry,
Ellis Porter,Kerm Rima,Howard Rogers,Robert Root,
Donald Saltarelli,George Scott,Sonia Sonju,John
Store,.Bernie Svalstad,Joe Temple,Harriett Wieder,
and Frances Wood
NOES:None
ABSENT:Directors John G~arthe,Norma Gibbs,and Jerry Patterson
IN WITNESS WHEREOF,I have hereunto set my hand •this 114th
day of August ,l97~4 .
~‘~fWa~e S’~vester,Secretary
~cf~irectors,County
L,SaniLt~ation Districts Nos.1,2,
3,5,6,7,and.11,of Orange
County,California
S—lOl