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HomeMy WebLinkAboutResolution 1981 - 0024RESOLUTION NO.81-24 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,SERVICES AND EQUIPMENT,AND REPEALING RESOLUTION NOS.74—98,74—99 AND 79—97 **** WHEREAS,Section 54202,Government Code,State of California, requires that every local agency shall adopt policies and pro cedures,including bidding regulations,governing purchases of supplies,services and equipment and that purchases of supplies, services 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 adoptedby means of awritten 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 and the letting of public works contracts at the best possible cost commensurate with quality and delivery needs,together with other relevant factors,to exercise positive financial control over purchases, to clearly define authority for the purchasing function and to establish bidding procedures,a purchasing system for the Districts and the Joint Administrative Organization,hereinafter referred to as “Districts”,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: Section 1:System Adoption In order to establish efficient procedures for the purchase of supplies,services and equipment and the letting of public works contracts at the best possible cost commensurate with quality and delivery needs and other relevant factors,to exercise positive financial control over purchases, to clearly define authority for the purchasing function,to establish bidding procedures and in pursuance of Section 54202 of the Government Code of the State of California,a purchasing system is hereby adopted.a Section 2:Purchasing Division —Director of Finance Authority There is hereby vested in the purchasing division (hereinafter re ferred to as “purchasing”),under the general supervision and di rection of the Director of Finance,the authority for the purchase of supplies,services and equipment,letting of public works con tracts and establishment of rules,procedures and administrative policies relative thereto.The Director of Finance may delegate or assign any or all of the following duties to members of his staff: (a)Purchase or contract for supplies,services and equipment required by any using department or division,in accordance with purchasing procedures prescribed by this Resolution,such ad ministrative regulations as purchasing shall adopt for the internal management and operation of purchasing and such other —2— rules and regulations as shall be prescribed by the Board of Directors. (b)Negotiate and recommend execution of contracts for the purchase of supplies,services and equipment and for public works or for the sale of surplus property and by—products of the sewage treatment process. (c)Prepare all contracts and appurtenant documents which shall be delivered to the Secretary for custodianship. (d)Act to procure for the Districts the needed quality in supplies,services,equipment and construction at the best cost and under the most favorable conditions with due consideration to delivery and other relevant factors. (e)Discourage uniform bidding and endeavor to obtain as full and open competition as possible on all purchases and sales. (f)Prepare rules,regulations,procedures and administrative policies,and revisions thereto,governing the purchase of supplies services and equipment and for the letting of public works contracts and sales of surplus property and by—products. (g)Prepare rules,regulations,procedures and administrative policies,and revisions thereto,governing the warehousing of inventories. (h)Keep informed of current development in the field of purchasing,prices,market conditions and new products. (i)Prescribe and maintain such forms as reasonably necessary to the operation of this Resolution and other rules and regulations. (j)Develop specifications to establish minimum standards for all purchases. —3— (k)Supervise the inspection of all supplies,services and equipment purchases to insure conformance with specifications. (1)Provide for transfer of surplus or unused supplies and equipment between departments as needed. (m)Have custodianship and control of all inventories and surplus property. (n)Maintain a bidders’list,vendors’catalog file,and records needed for efficient operation of the purchasing division. (o)Such other and future duties as,in the Director’s discretion,are incidental and necessary to the conduct of the division. Section 4:Requisitions All employees of the Districts who need or require supplies,services and equipment to carry out the defined duties of their positions,shall submit requisitions for purchases or warehouse requisitions to purchasing on standard requisition forms. Section 5:Bidding —Public Works When the expenditure re quired for a public works project exceeds Five Thousand ($5,000.00) Dollars,it shall be contracted for and let to the lowest respon sible bidder,in accordance with the provisions of Government Code Sections 4500 et seq.,Health and Safety Code Sections 4755 et seq., as provided in the following Sections. Section 6:Bidding —Nonpublic Works Purchases Except as hereinafter provided,purchasing of supplies,services or equipment other than public works shall be by bid procedures when purchases and contracts for supplies,services or equipment are estimated to have values greater than Ten Thousand ($10,000.00)Dollars, —4— and the commodities or services may be obtained from more than one vendor,are not standardized as to price,and no emergency exists. Section 7:Emergencies Whenever a grave emergency arises which is,or may be a threat to the continued operation of the sewage facilities,support facilities and/or administrative fa cilities operated by the Districts,or when purchases are immedia tely necessary for the preservation of life or property or to avoid a threat to the public health or safety,purchasing may purchase supplies,services or equipment required for immediate use,in an amount greater than Ten Thousand ($10,000.00)Dollars without ob serving the procedures set forth in this resolution.In such event, purchasing shall advise the District Chairman and/or Chairman Pro Tern,or the Joint Chairman and/or Vice Joint Chairman,as appropriate, of the action taken,and such action shall be ratified by the Board of Directors at its next regular meeting. Section 8:Standardized Prices and Specialized Services In purchases of supplies,services or equipment in which the items to be purchased have a demonstrated uniformity in price,or it is de termined that there is a sole source or the provider of services is determined to have uniquely qualified to perform specialized services,purchasing may make such purchases without observing the procedures of Section 15 below. Section.9:Purchase Orders Purchase of all supplies, services or equipment shall be made by purchase order signed by the Director of Finance or his designee.Purchasing and employees requisitioning supplies and equipment shall be responsible that —5— 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.Purchasing shall retain,in its files,one copy of all purchase orders is sued during two years preceding,on which copy of the purchase order there shall be a list of bidders and prices bid for the ma terial 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 purchasing upon or in which is maintained the record of the bids received for the propertyor by—products sold,or if bids were not taken or received,a full explanation thereof.Such records shall be maintained for two (2)years after the sale. Section 10:Formal Contract Procedures Except as otherwise provided herein,purchases and contracts for supplies,services or equipment and for public works,of estimated values greater than Ten Thousand ($10,000.00)Dollars’,shall be by written contract or purchase order agreement with the lowest responsible bidder, pursuant to the procedure prescribed herein. Section 11:Encumbrances of Funds Except in cases of emergency,no purchase order shall be issued for any supplies, services or equipment unless there exists an unencumbered ap propriation balance in the fund against which said purchase is to be charged. Section 12:Public Works Contract Defined Public works contracts are herein defined as contracts with duly licensed con tractors of the State of California for the furnishing of labor —6— S and materials and equipment for the construction of sewage facili ties and appurtenant buildings and the structures necessary to the operation of the Districts in an amount greater than Five Thousand ($5,000.00)Dollars. Section 13:Bidding Procedure —Public Works Procedures for soliciting bids and awarding contracts for public works contracts for more than Five Thousand ($5,000.00)Dollars,shall be by written contract with the lowest responsible bidder,pur suant to the procedures prescribed herein and in accordance with Section 4755 of the Health and Safety Code of the State of Cali fornia. (a)Notice Inviting Bids Notices inviting bids shall in clude a general description of the work to be performed,shall state where bid blanks and specifications may be secured,and the time and place for opening bids. (1)Published Notice Notice inviting bids shall set a date for the opening of bids.The first publication or posting of the notice shall be at least ten (10)days before the date for the opening of the bids.Notice shall be pub lished at least two (2)times,not less than five (5)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 those public places in the District that may be designated for posting such notices.This notice shall distinctly state the work to be done. S (2)Bidders’List Purchasing may also solicit sealed bids from all qualified responsible prospective suppliers —7— whose names are on a Bidders’List that may be maintained by Districts. (b)Bidder’s Security When deemed necessary by purchasing bidder’s security may be prescribed in the contract specifications and in the public notices inviting bids.Bidders shall be entitled to return of bid security,upon award of a contract by the Districts, provided that a successful bidder shall forfeit his bid security upon refusal or failure to execute the contract within the prescribed time 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 Director of Finance and Secretary of the Boards of Directors and shall be identified as bids on the envelope.Bids shall be opened in public by the Director of Finance or his designated representative at the time and place stated in the public notices. A tabulation of all bids received shall be open for public inspec tion 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 —8— for bids.If all bids are rejected,the Board of Directors,on a resolution adopted by a four—fifths (4/5)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 advantage of this lower cost.If there is a present or anticipated great public calamity,such as an extraordinary fire,flood,storm or other disaster,the District Board may,by resolution adopted by a four—fifths (4/5) vote declaring th.at the public interest and necessity demand im mediate expenditure of public money to safeguard life,health or property,expend any sum required in the emergency without sub mitting such expenditure to bid. Ce)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 or 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.If no bids are received,the District may have the work done without further bid. (g)Performance Bonds Purchasing shall have authority to require a performance bond before entering a contract in such amount up to one hundred (100%)percent of the ambunt of the contract,as it shall find reasonably necessary to protect the —9— best interests of the Districts.If purchasing requires a performance bond,the form and amount of the bond shall be described in the notice inviting bids,or in the contract specifications. (h)Cost Records Cost records shall be kept in the manner provided in Sections 4000 to 4007,inclusive,of the Government Code,State of California. Section 14:Bidding Procedure —Non Public Works Purchases and Sales Greater Than $10,000.00 Except as otherwise provided herein,purchases of supplies,equipment and services and the sale of personal property of estimated value greater than Ten Thousand ($10,000.00)Dollars shall be by written contract or purchase order agreement with the lowest responsible bidder, pursuant to the procedures prescribed herein. (a)Notice Inviting Bids Notices inviting bids shall include a general description of the articles or services to be purchased or sold,shall state where bid blanks and specifications may be secured,and the time and place for opening bids. (1)Published Notice Notice inviting bids shall set a date for the opening of bids.The notice shall be published one (1)time at least ten (10)days before the date for the opening of the bids.Notice shall be published in a news paper of general circulation,printed and published in the District,or if there is none,it shall be posted in at lease those public places in the District that have been designated for posting such notices.This notice shall distinctly describe the articles or services to be purchased or sold. —10— (2)Bidders’List Purchasing may also solicit sealed bids from all qualified responsible prospective suppliers whose names are on the Bidders’List maintained by the Districts, or who have requested their names to be added thereto. (3)Bulletin Board Purchasing shall also advertise pending purchases or sales by a notice posted on a public bulletin board in the purchasing division office. (b)Bidder’s Security When deemed necessary by purchasing, bidder’s security may be prescribed in the contract specifications or in the public notices inviting bids.Bidders shall be entitled to return of bid security upon the award of a contract or issuance of a purchase order,provided that a successful bidder shall forfeit his bid security upon refusal or failure to execute the contract within the prescribed time 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 betweenthe 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 Director of Finance and Secretary of the Boards of Directors, and shall be identified as bids on the envelope.Bids shall be opened in public by the Director of Finance or his designated representative at the time and place stated in the public notices. —11— • A tabulation of all bids received shall be open for public inspec tion 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.If all bids are rejected,the Board of Directors, by majority vote,may declare that the materials or supplies may be acquired at a lower cost by negotiation in the open market and authorize the purchase in that manner. (e)Award of Contracts A contract or purchase order agree ment 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 readvertising for bids,the Board of Directors may accept the one it chooses or ac cept the lowest bid made by negotiation with the tie bidders at the time of the bid opening. (g)Performance Bonds Purchasing shall have authority to require a performance bond before entering a contract in such amount as it shall find reasonably necessary to protect the best interest of the Districts.If Purchasing requires a performance bond,the form and amount of the bond shall be described in the notice inviting bids and in the contract specifications. (h)Exception Notwithstanding the provisions of subsections . (a)through (g)above,purchasing may award a contract to purchase supplies,equipment or services in an amount greater than Ten —12— S Thousand ($10,000.00)Dollars without obtaining bids and following the procedures set forth above when purchasing determines that: (1)By purchasing immediately,it can avoid an imminent price increase or realize a substantial price discount that is available on a short term basis only,or (2)It can obtain equipment or supplies immediately that might not otherwise be available at such time as purchasing procedures could be completed. All such purchases shall be ratified by the Board of Directors at its next regular meeting. Section 15:Open Market Procedure re Purchases and Sales Purchases of supplies,equipment and services,and the sale of sur— plus District personal property of an estimated value in the amount of Ten Thousand ($10,000.00)Dollars or less on which bidding is not required by State law,may be made by purchasing in the open market without observing the procedures prescribed by Section 14 above.The procedure to be used for these purchases are as follows: (a)Minimum Number of Bids Open market purchases shall, wherever possible,be based on at least three (3)bids and shall be awarded to the lowest responsible bidder. (b)Notice Inviting Bids Bids shall be solicited by written requests to prospective vendors or purchasers and/or by telephone,and/or by public notice posted on a public bulletin board in the purchasing division offices. —13— (C)Receipt of Bids Bids shall be submitted to purchasing who shall keep a public record of all open market orders and bids for a period of one (1)year after the submission of bids or the placing of orders. (d)Purchases Less than $1,000.00 Purchasing may purchase supplies,equipment and services of an estimated value in the amount of One Thousand ($1,000.00)Dollars or less without ob serving the procedures prescribed in this Section when,in its discretion,it is determined that observing such procedures would not result in a lower overall cost to the Districts. Section 16:Blanket Purchase Orders Purchasing may issue an nual blanket purchase orders for recurring purchases of miscellaneous supplies that,because of economic considerations are not carried in stores stock in Districts’warehouse,and for miscellaneous ser vices,where such purchases of supplies and services in the aggre gate will exceed an estimated value of Ten Thousand ($10,000.00) Dollars from a single vendor during the budget year,without ob serving the procedures prescribed in Section 14 when,in its dis cretion,it is determined that such blanket purchase orders are at a cost favorable to the Districts and will result in more efficient procurement of such items.Blanket purchase orders shall be in conformity with the spirit and intent of this resolution.Pur— chasing shall,at the beginning of each budget year,file a list of such purchase orders and the estimated annual amount with the Director of Finance. —14— Section 17:Inspection and Testing The supplies and equipment delivered,and contractual services performed,shall be,inspected to determine their conformance with the specifica tions set forth in the purchase order or contract.Purchasing shall have authority to request professional service,or to require~chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to de termine their quality and conformance with specifications. Section 18:Negotiated Contracts Notwithstanding the pro visions of this resolution,the Board of Directors may,when it appears in the best interests of the Districts,authorize the Staff to negotiate and award a contract for purchase of supplies,equip ment or services without observing the procedures prescribed in Sections 14 and 15 above. (a)When such authorization has been granted for purchase of supplies,equipment or services of an estimated value in the amount of Ten Thousand ($10,000.00)Dollars or greater,the staff shall obtain the concurrence of the District Chairman and/or Chairman Pro Tern,or the Joint Chairman and/or Vice Joint Chairman, as appropriate,prior to awarding such purchase. (b)Whenever any contract for supplies,equipment or ser vices has been entered into between the Districts and a person or entity providing such supplies,equipment or services,and pur chasing determines that it is in the best interest of the Districts to continue said contract with such person or entity,purchasing may,in its discretion,negotiate an extension of such contract without observing the procedures prescribed in Sections 14 and —15— 15 above,provided the amount of the extension does not exceed Ten Thousand ($10,000.00)Dollars.In the event the extension is in an amount greater than Ten Thousand ($10,000.00 Dollars,it shall be approved and awarded by the Board of Directors.This Section shall not apply to the letting of public works contracts in excess of Five Thousand ($5,000.00)Dollars. Section 19:Surplus Supplies and Equipment All departments and/or divisions shall submit to Purchasing,at such times and in such forms as it shall prescribe,reports showing all supplies and/or equipment which are no longer used or which have become obsolete or worn out.Purchasing shall have authority,pursuant to provisions of this Resolution,to sell or 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 20: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 21:Cooperative Procurement (a)The Districts, through purchasing,may participate in or sponsor,conduct and/or administer a cooperative procurement agreement for the acquisition of procured items with any other public agency purchasing unit, in accordance with an agreement between Districts and the other public agency. (b)The Districts,through purchasing,may sell to,acquire from,or use any property belonging to another public agency,in cluding the cooperative use of supplies or services. —16— . Section 22:Professional Services Agreement All contracts for the retention of architectural and engineering services in an amount greater than Ten Thousand ($10,000.00)Dollars shall be governed by the policy of the Board of Directors establishing procedures for the Selection of Professional Engineering and Architectural Services,dated March 8,1978. Section 23:Noncompliance Any transaction failing 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 may be subject to dis ciplinary action. Section 24: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 thereof,irrespective of the fact that any one or more sections, subsections,subdivisions,sentences,clauses or phrases be declared unconstitutional or otherwise invalid. Section 25:Repeal of Conflicts Resolutions Nos.74—98, 74—99,and 79—97 and all prior resolutions or motions or portions thereof in conflict herewith are hereby rescinded and made of no •further effect. —17— Section 26:Effective Date This Resolution shall take effect on January 15,1981. PASSED AND ADOPTED at a regular meeting held February 11 1981 T LW:p j D:E—3 01/05/81 01/07/81 01/15/81 —18— STATE OF CALIFORNIA ) COUNTY OF ORANGE )SS. ) I,J.WAYNE SYLVESTER,Secretary of the Boards of Directors of County Sanitation Districts Nos.1,2,3,5,6,7,and 11 of Orange County,California,do hereby certify that the above and foregoing Resolution No.81-24 was regularly passed and adopted at a regular meeting of said Boards on the lj:~h day of February by the following vote,to wit: 1981 AYES:Marvin Adler,Ruth Bailey,Marion Corbett,John Ccx,Jr., Norman Culver,Richard Edgar,Vickie Evans,Bruce Finlayson~ Ruth Finley,Donald Fox,Sal Gambina,Evelyn Hart,Jacqueline Heather,Donald Holt,Jr.,Elvin Hutchison,Carol Kawanami, Frank Laszlo,Ben Nielsen,Bob PeTry,Ruthelyn Pluinmer, Thomas Riley,Don Roth,James Sharp,Don Smith,Roger Stanton, Charles Sylvia,Anthony van Dyke,Bill Vardoulis,James Wahner,Joseph Wheeler,Harriett Wieder,Duane Winters and Harry Yamamoto NOES:None ABSENT:Ron Pattinson,Lester Reese and Henry Wedaa IN WITNESS WHEREOF,I have hereunto set my hand this 11th day of February , 19 81 ;ter,~ecre :tors,County tricts Nos.1,2, 3~5,~‘,7,and 11 of Orange County,California s-1ol