HomeMy WebLinkAboutResolution 1986 - 0081RESOLUTION NO.86-81
PURCHASING RESOLUTION
A JOINT RESOLUTION OF THE BOARDS OF DIRECTORS OF COUNTY
SANITATION DISTRICTS NOS.1,2,3,5,6,7,11,13,AND
14 OF ORANGE COUNTY,CALIFORNIA,ADOPTING A PURCHASING
SYSTEM AND POLICIES AND PROCEDURES GOVERNING PURCHASES
OF SUPPLIES,SERVICES AND EQUIPMENT,AND REPEALING
RESOLUTION NOS.81—24 AND 82—34
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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,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 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 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 or Directors of County
Sanitation Districts Nos.1,2,3,5,6,7,11,13 and 14 of Orange County,
~.California,
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DO HEREBY DETERMINE,ORDER AND RESOLVE 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.
Section 2:Purchasing Division -Director of Finance Authority There is
hereby vested in the purchasing division (hereinafter referred to as
“Purchasing”),under the general supervision and direction of the Director of
Finance,the authority for the purchase of supplies,services and equipment,
letting of public works contracts 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 administrative regulations as purchasing
shall adopt for the internal management and operation of purchasing and such
other 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 Boards’Secretary for custodianship.
(d)Act to prepare 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.
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(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.I
(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.
(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.
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Section 5:Bidding -Public Works When the expenditure required for a
public works project exceeds Fifteen Thousand ($15,000.00)Dollars,itshall be
contracted for and let to the lowest responsible bidder,in accordance with the
provisions of Government Code Sections 4100 et seq.,and Resolution No.86—81
whereby Districts elected to become subject to uniform construction cost
accounting procedures set forth in Public Contract Code Sections,21100 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 Twenty Five Thousand
($25,000.00)Dollars,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 facilities operated by the Districts,or when
purchases are imediately 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 Twenty Five Thousand ($25,000.00 Dollars without observing 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 determined that there is a sole
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source or the provider of services is determined to be 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 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 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 purchasing 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
(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 Twenty-Five Thousand ($25,000.00)
Dollars,shall be by written contract or purchase order agreement with the
lowest responsible bidder,awarded by the Board of Directors,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 appropriation balance in the fund against which
said purchase is to be charged.
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Section 12:Public Works Contract 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 of sewage facilities and appurtenant buildings and the structures
necessary to the operation of the Districts in an amount greater than Fifteen
Thousand ($15,000.00)Dollars as per Public Contract Code Sections 21100 et seq.
Section 13:Bidding Procedure -Public Works Construction Greater
than $15,000 Procedures for soliciting bids and awarding contracts for public
works projects for more than Fifteen Thousand ($15,000.00)Dollars,shall be by
written contract with the lowest responsible bidder,pursuant to the procedures
prescribed herein and in accordance with Sections 21207 and 21208 of the Public
Contract Code of the State of California.
(a)Notice Inviting Bids Notices inviting bids shall distinctly describe
the work to be performed,shall state where bid blanks and specifications may be
secured,and the time and place for receiving and opening sealed 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 fourteen (14)calendar days before the date for the opening of the
bids.Notice shall be published at least two (2)times,not less than
five (5)days apart,in a newspaper of general circulation,printed and
published in the Districts.
(2)Mailed Notice Unless the work to be done is proprietary,notices
inviting bids shall be mailed to all contractors on the Districts’list
for the category of work being bid and/all trade journals specified for Orange
County by the California Uniform Construction Cost Accounting Commission no less
than 30 calendar days before the date of opening of bids.
(3)Bidders List Purchasing may also solicit sealed bids from all
qualified responsible prospective suppliers whose names are on a Bidders
List that may be maintained by Districts.
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(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 designee 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.If after the
opening of bids 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.
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(e)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.
(f)No Bids If no bids are received,the Districts may have the work
done by force account,may readvertise for bids pursuant the procedures herein,
or may select a contractor by negotiation.
(g)Emgergencies 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 facilities operated by the Districts,the Districts’
General Manager may declare a public emergency and proceed to replace or repair
any public facility without observing the procedures set forth in this
Resolution.In such event,the General Manager shall advise the District Chairman
and/or Chairman Pro Tern,or the Joint Chairman and/or Vice Chairman,as
appropriate,of the action taken,and such action shall be confirmed by a
four/fifths (4/5th)vote of the Board of Directors at its next regular meeting.
(h)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 amount of the contract,as it shall find reasonably
necessary to protect the 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.
(i)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 Work Construction -Purchases
and Sales Greater than $25,000.00 Except as otherwise provided herein,
purchases of supplies,equipment and services and the sale of personal property
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of estimated value greater than Twenty Five Thousand ($25,000.00)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 newspaper of general circulation,printed and published in
the Districts,or if there is none,it shall be posted in at least those
public places in the Districts that have been designated for posting such
notices.This notice shall distinctly describe the articles or services to
be purchased or sold.
(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 sI-iall 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.
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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 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.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 agreement 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 accept 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
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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 Twenty Five Thousand ($25,000.00)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 qnly,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 -Non Public Works Construction
Purchases and Sales Less than $25,000 Purchases of supplies,equipment and
services,and the sale of surplus District personal property of an estimated
value in the amount of Twenty Five Thousand ($25,000.00)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 procedures 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.
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(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 observing 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 annual blanket
purchase orders for recurring purchases of miscellaneous supplies that,because
of economic considerations are not carried in stores stock in the Districts’
warehouse,and for miscellaneous services,where such purchases of supplies and
services in the aggregate will exceed an estimated value of Twenty Five Thousand
($25,000.00)Dollars from a single vendor during the budget year,without
observing the procedures prescribed in Section 14 when,in its discretion,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.Purchasing 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.
Section 17:Inspection and Testing The supplies and equipment delivered,
and contractual services performed,shall be inspected to determine their
conformance with the specifications 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 determine their quality and conformance with
specifications.
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Section 18:Negotiated Contracts —Non Public Works Construction
Notwithstanding other provisions 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,equipment 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 Twenty Five Thousand
($25,000.00)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 services has been
entered into between the Districts and a person or entity providing such
supplies,equipment or services,and Purchasing 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
above,provided the amount of the extension does not exceed Twenty Five Thousand
($25,000.00)Dollars.In the event the extension is in an amount greater than
Twenty Five Thousand ($25,000.00)Dollars,it shall be approved and awarded by
the Board of Directors.This Section shall not apply to the letting of public
works construction contracts in excess of Fifteen Thousand ($15,000.00)Dollars.
Section 19:Surplus Supplies and Equipment All departments and/or
divisions shall submit to Purchasing,at such times and in such form 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.
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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,including the cooperative use
of supplies or services.
Section 22:Professional Services Agreement All contracts for the
retention of architectural and engineering services shall be governed by the
Policy of the Board of Directors Establishing Procedures for the Selection of
Professional Engineering and Architectural Services,dated April 14,1982,as
amended.
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 disciplinary action.
Section 24:Severability If any section,subsection,subdivision,
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.
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Section 25:Repeal of Conflicts Resolutions No.81-24 and 82-34 and all
prior resolutions or motions or portions thereof in conflict herewith are hereby
rescinded and made of no further effect.
Section 26:Effective Date This Resolution shall take effect immediately
upon adoption by the Boards of Directors.
PASSED AND ADOPTED at a regular meeting held July 9,1986.
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STATE OF CALIFORNIA)
)ss.
COUNTY OF ORANGE )
I,RITA J.BROWN,Secretary of the Boards of Directors of County
Sanitation Districts Nos.1,2,3,5,6,7,11,13 and 14 of Orange County,
California,do hereby certify that the foregoing Resolution No.86—81 was
passed and adopted at a regular meeting of said Boards on the 9th day of July,
1986,by the following vote,to wit:
AYES:Ruth Bailey,Michael Beverage,Richard Buck,Buck Catlin,Frank
Clift,Norman Culver,Richard B.Edgar,Don R.Griffin,Dan
Griset,Robert Hanson,Evelyn Hart,Ronald B.Hoesterey,Carol
Kawanami,Ursula Kennedy,William Mahoney,Philip Maurer,James
Neal,Carrey Nelson,Richard Partin,Bob Perry,Ruthelyn
Plummer,Richard Polis,Don Roth,Sal Sapien,J.R.“Bob”
Siefen,Don Smith,Roger Stanton,John H.Sutton,Peer A.Swan,
Charles Sylvia,John Thomas,James Wahner
NOES:None
ABSENT:Sally Anne Miller
IN WITNESS WHEREOF,I have hereunto set my hand and affixed the official
seal of County Sanitation District No.1 on behalf of itself and Districts
Nos.2,3,5,6,7,11,13 and 14 of Orange County,California,this 9th day
of July,1986.
Rita J.Brown,ecretary
Boards of Directors,County
Sanitation Districts Nos.1,2,3,5
6,7,11,13 and 14 of Orange County,
California