HomeMy WebLinkAboutOCSD 99-23 (REPEALED)ARTICLE I:
ARTICLE II:
ARTICLE Ill:
RESOLUTION NO. OCSD 99-23
A RESOLUTION OF THE BOARD OF DIRECTORS OF
ORANGE COUNTY SANITATION DISTRICT
ESTABLISHING POLICIES AND PROCEDURES FOR THE
AWARD OF PURCHASING ORDERS AND CONTRACTS;
AWARD OF PUBLIC WORKS PROJECT CONTRACTS;
AWARD OF PROFESSIONAL SERVICES CONTRACTS;
AND DELEGATION OF AUTHORITY TO IMPLEMENT SAID
POLICIES AND PROCEDURES; AND REPEALING
RESOLUTIONS NOS. OCSD 98-8, OCSD 98-12, OCSD 98-
21, AND OCSD 98-43
TABLE OF CONTENTS
RECITAL OF FINDINGS
Section 1.01 Findings -Declaration of Intent.
DELEGATION OF AUTHORITY
Section 2.01 Purpose and Scope.
Section 2.02 Authorizing General Manager to Establish Rules and·
Guidelines.
Section 2.03 Procedure for Delegation of Authority.
PURCHASING SYSTEMS RE SUPPLIES. EQUIPMENT AND
SERVICES
Section 3.01 Purpose and Scope.
Section 3.02 Purchasing System Adoption.
Section 3.03 Purchasing Division Delegated Authority.
Section 3.04 Requisitions.
Section 3.05 Cooperative Procurement.
Section 3.06 Purchases: Bidding Requirements.
Section 3.07 Purchases: Emergency.
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REPEALED BY
OCSD 04-08
ARTICLE IV:
Section 3.08 Purchases: Standardized Prices and Specialized
Services.
Section 3.09 Purchase Orders.
Section 3.1 O Purchases: Encumbrances of Funds.
Section 3.11 Blanket Purchase Orders.
Section 3.12 Bidding Procedure: Purchases Greater Than
$50,000.00.
Section 3.13 Purchases Between $50,000.00 and $100,000.00.
Section 3.14 Bidding Procedure: Purchases Less Than
$50,000.00.
Section 3.15 Bidding Procedure: Purchases Less Than $5,000.00.
Section 3.16 Inspection and Testing.
Section 3. 17 Purchases: Negotiated Contracts.
Section 3.18 Surplus Supplies, Materials, and Equipment.
Section 3.19 Sale of Real Property.
Section 3.20 Recordkeeping.
PROFESSIONAL SERVICES CONTRACTS
Section 4.01 Purpose and Scope.
Section 4.02 Retention of Professional Technical Consultants.
Section 4.03 Small Capital Project -Defined.
Section 4.04 Small Capital Project: Approval of Plans and
Specifications.
Section 4.05 Small Capital Project: Annual Budget Approval.
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ARTICLE V:
ARTICLE VI:
ARTICLE VII:
Section 4.06 Small Capital Project: Selection of Consultants -
Procedure.
Section 4.07 Major and Minor Capital Projects: Defined.
Section 4.08 Major Capital Project: Scope of Work.
Section 4.09 Major Capital Project: Selection of Consultants -
Procedure.
Section 4.10 Major Capital Project: Award of Professional Services
Agreements.
Section 4.11 Major Capital Project: Approval of Plans and
Specifications.
PUBLIC WORKS CONTRACTS
Section 5.01 Purpose and Scope.
Section 5.02 Public Works: Bidding Required.
Section 5.03 Bidding Procedure: Public Works Construction
Greater Than $35,000.00.
Section 5.04 Approval of Change Orders to Construction
Agreements.
MEETINGS (AND RELATED TRAVEL) AND TRAINING
(AND RELATED TRAVEL) EXPENDITURES
Section 6.01 Purpose and Scope.
Section 6.02 General.
Section 6.03 Policies and Procedures.
MISCELLANEOUS
Section 7.01 Noncompliance.
Section 7.02 Severability.
Section 7.03 Effective Date.
Section 7.04 Repeal of Prior Resolutions.
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ARTICLE I
RECITAL OF FINDINGS
Section 1.01: Findings -Declaration of Intent.
A. California Government Code Section 54202 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.
B. California Government Code Section 54204 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.
C. 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 District, beyond what is required by said Sections of the Government
Code, is desirable and in the best public interest.
D. An effective, comprehensive organization needs an administrative
structure with support procedures that are logical, efficient, well-documented, are
understood by the organization's employees and members of the public, and that
enable timely and responsive administrative acquisition of materials, supplies, and
services. The organization should also appropriately delegate authority to those
persons and units having responsibility for these activities.
E. The Board of Directors has determined that a delegation of
authority structure provides for better training of employees which will result in
improved efficiency and effectiveness of the District's operations.
ARTICLE II
DELEGATION OF AUTHORITY
Section 2.01: Purpose and Scope. In an effort to remove barriers that
prevent District employees from performing their jobs at the highest level of efficiency,
a delegation of authority structure will appropriately train the employees, and by
providing increased responsibility and ownership, will contribute to the improved
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efficiency and effectiveness of the District.
Section 2.02: Authorizing General Manager to Establish Rules and
Guidelines. The General Manager of the District is hereby authorized to establish rules
and guidelines to implement Board policies and to delegate to Staff signature authority
to initiate and execute contracts or purchase orders to acquire services, including
professional services, supplies, and materials, and public works project contracts, all as
more particularly specified in Articles Ill through VI.
Section 2.03: Procedure for Delegation of Authority. The following
provisions establish delegated signature authority for contracts and purchase orders for
the acquisition of supplies, services, materials, equipment, and professional services.
The delegated authority for each functional management level will be established one
level higher in the absence of specifically identified authority. The General Manager's
authority is delegated to the Assistant General Manager ("AGM") in the General
Manager's absence.
These procedures establish the framework and boundaries within which a
delegatee can operate, and also provide Management with a mechanism to evaluate
implementation and hold the delegatee accountable for his/her actions.
Upon delegation of authority by the General Manager, each Department shall be
authorized to further delegate to respective employees within the Department. The
delegation shall be effective upon the Department Head setting forth, in writing, the
name of the delegated employee, his/her job position, and specific level of delegated
authority designated as Level A, B, or C, respectively, and filing it with the
Contracts/Purchasing Manager. The General Manager shall establish procedures to
implement further delegated authority into the organization.
For contracts and purchase orders for the acquisition of supplies, materials,
equipment, and services (excluding public works contracts governed by State law and
professional services agreements), the following signature authority is hereby
established. The functional authority level listed describes the highest level of
signature approval needed. Intermediate management approval between the
initiator/requester and listed approval level must also be obtained.
A. Approval Levels
All items above $100,000.00 are to be approved by the Board prior to
purchase, with the exception of emergency items, pursuant to Section 3.13. All items
between $50,000.00 and $100,000.00 are reviewed and approved by the General
Manager prior to purchase, and reported to the Board of Directors on a quarterly basis.
All items below $50,000.00 are approved pursuant to the following delegation of
authority:
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1. Items exceeding $100,000 require Board of Directors approval,
unless previously authorized by the Board for items identified in the
annual District budget.
2. Items $50,000 to $99,999 require General Manager
or Assistant General Manager approval.
3. Items $25,000 to $49,999 require Department Director approval.
4. Items $10,000 to $24,999 require Division Manager approval.
5. Items $5,000 to $9,999 require Level A approval.
6. Items $2,000 to $4,999 require Level B approval.
7. Items less than $2,000 require Level C approval.
B. Co-Signatures. In addition to the signature of the Delegated Authority:
1. To ensure that all policies and procedures governing purchase
orders and contracts are followed, all contracts or purchase orders
will be signed by the Contracts/Purchasing Manager, or his
designee.
2. All purchases for computer hardware, software, and communication
equipment will be pre-approved by the Information Technology
Director, or his designee.
C. Procedural Requirements. All policies and procedures adopted by the
Board of Directors or promulgated by the General Manager governing the procurement
of services, equipment, or supplies will apply, and shall be complied with.
Budgeted funds must be available prior to the acquisition of goods or
services. Upon the identification of goods or services needed that are not originally
budgeted, either a budget transfer request form must be completed demonstrating that
adequate funds are available to cover the acquisition, or the Board of Directors must
authorize a budget amendment, at which time, the item being acquired would fall into
the budgeted category.
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ARTICLE Ill
PURCHASING SYSTEM RE SUPPLIES.
SERVICES. EQUIPMENT. AND MATERIALS
Section 3.01: Purpose and Scope. In order to establish efficient
procedures for the purchase of supplies, services, materials 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, pursuant to Section 54202 of the Government Code of the State of
California, a purchasing system is deemed necessary.
Section 3.02: Purchasing System Adoption. The procedures and authority
set forth in this Resolution are intended to operate in concert with and supplemental to
the delegation of authority granted by the governing Board of Directors in the adoption
of this Resolution. Full compliance with the provisions of all Articles in this Resolution
is required.
Section 3.03: Purchasing Division Delegated 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, materials, 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 the Contracts/Purchasing Manager:
A. To purchase or contract for supplies, services, materials, and
equipment required by any 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 adopted by the Board of Directors.
B. To negotiate and recommend execution of contracts for the
purchase of supplies, services, materials, and equipment; for construction of public
works projects; and for the disposition of surplus property and by-products of the
sewage treatment process.
C. To submit to General Counsel for review or approval, as
necessary, all contracts, purchase orders, and other related documents, the original
executed copies of which shall be delivered to the Board Secretary for custodianship.
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0. To prepare for the District, the needed standards and
specifications of quality in supplies, services, materials, equipment, and construction at
the best cost and under the most favorable conditions, with due consideration to
delivery and other relevant factors.
E. To discourage uniform bidding and endeavor to obtain as full and
open competition as possible on all purchases and sales.
F. To prepare rules, regulations, procedures, and administrative
policies, and revisions thereto, governing the purchase of supplies, services, materials,
and equipment; for the letting of public works construction contracts in accordance with
the provisions of state law; and disposition of surplus property and by-products.
G. To prepare rules, regulations, procedures, and administrative
policies, and revisions thereto, governing the warehousing of inventories.
H. To keep informed of current developments in the field of
purchasing, including but not limited to prices, market conditions and new products.
I. To prescribe and maintain such forms as reasonably necessary to
the implementation of this Resolution and other rules and regulations of the District.
J. To develop specifications to establish minimum standards for all
purchases.
K. To supervise the inspection of all supplies, services, materials, and
equipment purchases to insure conformance with specifications.
L. To provide for transfer of surplus or unused supplies and
equipment between Departments, as needed.
M. To have custodianship and control of all inventories and surplus
property.
N. To maintain a bidders' list, vendors' catalog file, and records
needed for efficient operation of the Purchasing Division.
0. To review, approve, and maintain active insurance documents for
all District procurements.
P. To undertake such other and future duties as, in the Director's
discretion, are incidental and necessary to the conduct of the Division.
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Q. To revise all records to reflect the sale, transfer, or reorganization
of a supplier's business, or a change in the supplier's name for doing business, so
long as all other terms and conditions of the original agreement remain the same. In
such event of an assignment of the purchase order or contract by the supplier, the
District shall not be bound until it has given its consent in writing, which consent shall
not be unreasonably withheld. An amendment to the original agreement shall be
prepared authorizing and consenting to the assignment and shall be executed by the
General Manager, or his designee, on the District's behalf.
Section 3.04: Requisitions. All employees of the District who need or
require supplies, services, materials, or equipment to carry out the defined duties of
their positions, shall submit requisitions, in advance, for purchases or warehouse
requisitions to Purchasing, in accordance with the adopted rules, regulations,
procedures, and policies of the Purchasing Division. Usage of the District's
procurement cards shall be exempt from this requirement.
Section 3.05: Cooperative Procurement.
A. The District, through Purchasing, may participate in or sponsor,
conduct and/or administer a Cooperative Procurement Agreement for the acquisition of
procured items or services with any other public agency purchasing unit, in accordance
with an agreement between the District and the other public agency.
B. The District, through Purchasing, may sell to, acquire from, or use
any property belonging to another public agency, including the cooperative use of
supplies or services.
C. Participation in the County of Orange Cooperative Purchasing
Program has been expressly authorized by adoption of Board of Directors Resolution
No. OCSD 98-22.
Section 3.06: Purchases: Bidding Requirements. Except as hereinafter
provided, purchasing of supplies, services, materials, or equipment shall be by bid
procedures as set forth in this Article Ill, when the purchase is estimated to have a
value greater than Five Thousand ($5,000.00) Dollars; the commodities or services
may be obtained from more than one vendor; or are not standardized as to price; and
no emergency exists.
Section 3.07: Purchases: Emergency. Whenever an emergency arises
which is, or may be a threat to the continued required operations of the wastewater
treatment plants and facilities owned by the Districts, or when purchases are
immediately necessary for the preservation of life or property, or to avoid a threat to the
public health or safety, the Division may purchase supplies, services, materials, or
equipment required for immediate use, in an amount greater than One Hundred
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Thousand $100,000.00) Dollars without observing the procedures set forth in this
Resolution. The General Manager or his designee shall advise the District Chair
and/or Vice Chair, as appropriate, of the action taken, and such action shall be ratified
by the Board of Directors at its next regular meeting.
Section 3.08: Purchases: Standardized Prices and Specialized Services.
In the purchases of supplies, services, materials, or equipment in which the items to be
purchased have a demonstrated uniformity in price, or it is determined that there is a
sole source, or the provider of services is determined to be uniquely qualified to
perform specialized services, Purchasing may make such purchases without observing
the bidding procedures of Section 3.12 below.
Section 3.09: Purchase Orders. Purchases of all supplies, services,
materials, or equipment shall be made by purchase order and may also require a
formal written contract, when determined necessary or appropriate by the
Contracts/Purchasing Manager. To ensure that all policies and procedures governing
purchase orders and contracts are followed, all contracts or purchase orders will be
executed by the Contracts/Purchasing Manager, or as delegated by the
Contracts/Purchasing Manager. Purchasing and employees requisitioning supplies
and equipment shall be responsible that purchase 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 (2) years
preceding, on which copy of the purchase order, there shall be a list of bidders and
prices bid for the materials or equipment purchased, or if no bids or quotations were
taken or received, a full statement as to the reason therefor.
Section 3.10: Purchases: Encumbrances of Funds. Except in cases of
emergency, no purchase order shall be issued for any supplies, services, materials, or
equipment, unless there exists an unencumbered appropriation balance in the fund
against which said purchase is to be charged.
Section 3.11: Blanket Purchase Orders. The Purchasing Division may
issue annual blanket purchase orders for recurring purchases of miscellaneous
supplies that:
A. Because of economic considerations, the items are not carried in
stock in the District's warehouse;
B. Are stock items that have been designated as appropriate sole
source acquisitions;
C. Purchasing determines it is in the best interests of the District to
competitively bid a blanket order for inventory items; or
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D. Are for miscellaneous supplies, services, materials and equipment
where such purchase of supplies, services, materials, and equipment may be procured
from a single vendor during the budget year, without observing the procedures
prescribed in Section 3.12 below, when, in its discretion, it is determined that such
blanket purchase orders are at a cost favorable to the District 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. The Purchasing Division 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 3.12: Bidding Procedure: Purchases Greater Than $50.000.00.
A Award to Lowest Bidder. Except as otherwise provided in this
Article Ill, purchases of supplies, services, materials, and equipment of estimated value
greater than Fifty Thousand ($50,000.00) Dollars shall be by written contract or
purchase order with the lowest responsive and responsible bidder (unless a Request
for Proposal ("RFP") solicitation instrument is utilized), pursuant to the procedures
prescribed herein.
B. Award Approval. Purchases of supplies, services, materials, and
equipment that have appropriate budgetary approvals shall be bid and awarded directly
by the Contracts/Purchasing Manager, or as delegated by the Contracts/Purchasing
Manager. Supplies, services, materials, and equipment that exceed the budgeted
amount, or effect policy recommendations or ratifications, or are sole source contracts
exceeding $100,000.00, and all public works contracts, shall require Board of Directors'
approval prior to issuance or award of a purchase order or contract.
C. Notice Inviting Bids. The notice inviting bids shall include a
general description of the articles or services to be purchased or sold, shall state where
bid forms and specifications may be secured, and the time and place for opening bids.
1. Published Notice. The 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 within the District's
jurisdiction, or by electronic bulletin board procedures designed to reach the
industry or market of supply.
2. Bidders List. Purchasing may also solicit sealed bids, or
receive bids electronically, from all qualified, responsible prospective suppliers
whose names are on the Bidders List maintained by the District, or who have
requested their names to be added thereto.
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3. Bulletin Boards. Purchasing may also advertise pending
purchases or sales by a notice posted on a public bulletin board in the
Purchasing Division Office, and by electronic bulletin board, as deemed
appropriate by the Contracts/Purchasing Manager.
D. Bidder's Security. When deemed necessary by Purchasing,
bidder's security may be prescribed in the contract specifications or in the public notice
inviting bids. Bidders shall be entitled to the return of bid security upon the full
execution of an awarded contract or issuance of a purchase order, by the successful
bidder. 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 delivered to bidder, unless the District is responsible for a delay in the prescribed
time. The Board of Directors may, on refusal or failure of the successful bidder to
execute the contract, award it to the next lowest responsive, responsible bidder. If the
Board of Directors awards the contract to the next lowest bidder, an amount of the
lowest bidder's security equal to the difference between the low bid and the awarded
bid, shall be forfeited to the District, and the surplus, if any, shall be returned to the
lowest bidder.
E. Bid Opening Procedure. Sealed or electronically received bids
shall be submitted to the Contracts/Purchasing Manager and/or Secretary of the Board
of Directors, and shall be identified as a bid on the envelope or the electronic bulletin
board. Bids shall be opened in public by the Contracts/Purchasing Manager, 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. In cases wherein the Request for Proposal ("RFP") instrument is utilized, all
RFP's will be opened, and only the name of the Proposer shall be read aloud at the
time and place set forth herein.
F. 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.
G. Tie Bids. If two or more bids received are for the same total
amount or unit price, (with quality and service being equal), and if the public interest
will not be best served by a 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 award.
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H. Performance Bonds. Purchasing shall have authority to require a
faithful performance bond, a labor and materials bond and/or a warranty bond, before
entering into a contract in an amount as it shall find reasonably necessary to protect
the best interests of the District. If the Purchasing Division requires any of these
bonds, the form and amount of the bond shall be described in the notice inviting bids
and in the contract specifications.
Section 3.13: Purchases between $50.000.00 and $100.000.00.
Notwithstanding the provisions of Subsections 3.12(A) through 3.12(H) above,
Purchasing may award a contract to purchase supplies, services, materials, or
equipment in an amount greater than Fifty Thousand ($50,000.00) and less than One
Hundred Thousand ($100,000.00) Dollars, without obtaining bids and following the
procedures set forth above when the Contracts/Purchasing Manager determines that:
A. 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
B. It can obtain supply, services, materials, or equipment immediately
that might not otherwise be available at such time as purchasing procedures could be
completed; or
C. Said contract for supplies, services, materials, or equipment has
Board of Directors' approval for multiple one (1) year renewal periods. All such
contract renewals shall require the Contracts Administrator/Purchasing Manager
approval; or
D. The supplies, services, materials, or equipment are only available
from a sole source.
E. Whenever an emergency arises which is, or may cause a threat to
the continued required operations of the treatment plants, or when purchases are
immediately necessary for preservation of life or property, or to avoid a threat to the
public health or safety.
All purchases between $50,000.00 and $100,000.00 shall be reviewed and pre-
approved by the General Manager and reported to the Board of Directors on a quarterly
basis.
Section 3.14: Bidding Procedure: Purchases Less Than $50.000.00.
Purchases of supplies, services, materials, or equipment, of an estimated value in the
amount of Fifty Thousand ($50,000.00) Dollars or less on which bidding is not required
by state law, may be made by Purchasing in the open market without observing the
same procedures as prescribed by Section 3.12 above. The procedures to be used for
these purchases are as follows:
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A. Minimum Number of Bids. Open market purchase shall, whenever
possible, be based on at least three (3) bids and shall be awarded to the lowest
responsive and responsible bidder, and shall be by written contract or purchase order.
B. Solicitation of Bids. Bids shall be solicited by written requests to
prospective vendors or purchasers and/or by telephone, facsimile transmission,
electronic bulletin board, and/or by public notice posted on a public bulletin board in
the Purchasing Division Offices.
C. Receipt of Bids. Bids shall be submitted to Purchasing, which shall
keep a public record of all open market orders and bids for a period of two (2) years
after the submission of bids or the placing of orders.
D. Exceptions. Purchasing may purchase supplies, services,
materials, or equipment without observing the procedures prescribed in Subparagraphs
A, B, and C above, if supplies, services, materials, or equipment are only available from
a sole source. All such purchases shall be approved by the Director of Finance, the
requesting Department Head, and the Contracts/ Purchasing Manager.
Section 3.15. Bidding Procedure: Purchases Less Than $5.000.00.
Purchasing may purchase supplies, services, materials, or equipment of a value in the
amount of Five Thousand ($5,000.00) Dollars or less per purchase order, without
observing the procedures prescribed in this Section when, in the Contracts/Purchasing
Manager's discretion, it is determined that observing such procedures would not result
in a lower overall cost to the District. Record of such decision shall be fully stated in
the purchase order file as to the reason therefor.
Section 3.16: Inspection and Testing. The supplies, services, materials,
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 services, 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.
Section 3.17: Purchases: Negotiated Contracts. Notwithstanding other
provisions of this Resolution, the Board of Directors may, when it appears in the best
interests of the District, authorize the Staff to negotiate and award a contract for
purchase of supplies, services, materials and equipment without observing the
procedures prescribed in Sections 3.12 and 3.14 above.
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A. When such authorization has been granted for purchase of
supplies, services, materials, and equipment of an estimated value in the amount of
One Hundred Thousand ($100,000.00) Dollars or greater, the Staff shall obtain the
concurrence of the District Chair and/or Vice Chair, as appropriate, prior to awarding
such purchase.
B. Whenever any contract for supplies, services, materials, or
equipment has been entered into between the District and a person or entity providing
such supplies, services, materials, or equipment, and Purchasing determines that it is
in the best interest of the District to continue said contract with such person or entity,
Purchasing may, in its discretion, negotiate an extension of such contract without
observing the bidding procedures prescribed in Sections 3.12 and 3.14 above;
provided, the contract contains provisions for subsequent extension periods; has been
approved and awarded by the Board of Directors; and/or has prior budget approval, as
provided in Section 3.12.
C. This Section shall not apply to the letting of public works
construction contracts in excess of Thirty-Five Thousand ($35,000.00) Dollars. Said
contracts shall be governed by the provisions set forth in Article V of this Resolution.
Section 3.18: Surplus Supplies. Materials. and Equipment. All
Departments and/or Divisions shall submit to Purchasing, at such times and in such
form as Purchasing shall prescribe, reports showing all supplies, materials, and/or
equipment which are no longer used or which have become obsolete or worn out.
Purchasing shall have authority, as deemed appropriate by the Contracts/Purchasing
Manager, to sell, exchange for, or trade in on new supplies, materials, and equipment,
or dispose or, as deemed appropriate, all supplies, materials, and equipment which
cannot be used by any other Department or Division, or which have become unsuitable
for District's use.
Section 3.19: 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 3.20: Recordkeeping: A record of all sales or 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.
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ARTICLE IV
PROFESSIONAL SERVICES AGREEMENTS
Section 4.01: Purpose and Scope. The Orange County Sanitation District,
in the interest of uniformity, fairness and cost effectiveness desires to establish
policies and procedures for the selection and procurement of professional engineering,
architectural, environmental, land surveying and construction management services.
Section 4.02: Retention of Professional Technical Consultants. This
Resolution establishes a procedure to be followed in the selection and retention of
Professional Technical Consultants in the areas of engineering, architecture,
environmental, land surveying, construction management services and related
services.
Professional Technical Consultants are those individuals or firms providing
engineering, architectural, environmental or land surveying services which are those
professional services associated with research, development, design and construction,
alteration, or repair of real property, as well as incidental services that members of
these professions and those in their employ may logically or justifiably perform,
including studies, investigations, surveys, evaluations, consultations, planning,
programming, conceptual designs, plans and specifications, cost estimates,
inspections, shop drawing reviews, sample recommendations,· preparation of operation
and maintenance manuals, and other related services. Services for product testing are
excluded.
It is recognized that no two individuals or firms have equal skills, training, or
experience and that the qualities of such persons vary. Accordingly, Professional
Technical Consultants shall be selected based upon the District's discretion and
opinion as to which particular consultant is best qualified to perform the work
(hereinafter referred to as "projects") in question.
For purposes of this Resolution, "firm" shall mean any individual, firm,
partnership, corporation, association, or other legal entity permitted by law to practice
the profession of architecture, engineering, environmental services, land surveying, or
construction project management. Evaluation and selection of a consultant firm will
include but not be limited to the following:
A. The firm shall be of high ethical and professional standing, its
members being of good moral character, and it shall be prepared to submit references
from persons of known repute.
B. The principal and other responsible members of the firm must be
registered in the State of California, as required by law.
16
C. A principal member of the firm's staff must have at least ten years'
recent experience in responsible charge of work of the type involved in the project.
D. At least two additional members of the firm's staff must have at
least five years' experience in responsible charge in the field, or fields, required by the
project.
E. The firm shall be capable of performing the work within the
prescribed time limitations considering the current and planned work loads of the firm.
F. If all other factors are equal, preference shall be given to a local
based firm when more than one firm is being considered.
G. If the project is funded, either in whole or in part, by federal funds
that require, as a condition of establishing or maintaining eligibility for federal funds,
that firms working on the project maintain an affirmative action employment program,
then the firm selected for the project must certify to having such a program.
The District also recognizes that the scope of services and the qualifications of
consultants can differ significantly between major capital facilities projects and small
capital projects. The criteria set forth in Paragraphs C and D above may be waived by
District for small capital projects.
The procedures set forth in this Resolution shall govern the retention of such
professional consultants.
Section 4.03: Small Capital Project: Defined. "Small capital project" is
defined as a miscellaneous capital improvement or facility modification, replacement, or
repair project, related to plant safety, reliability and efficiency enhancements where
professional consulting services are estimated to be in an amount not to exceed
$50,000.00 for each project.
Section 4.04: Small Capital Project: Approval of Plans and Specifications.
The Board of Directors delegates to the Director of Engineering, as Professional
Registered Engineer, the authority to approve the design, plans, and specifications for
construction of new or modified District facilities that is deemed a small capital project,
as defined in Section 4.03 above.
Section 4.05: Small Capital Project: Annual Budget Approval. Upon
approval by the Board of Directors of an annual budget, the District's Staff shall be
authorized to solicit contract proposals from professional engineering, architectural,
environmental, land surveying and construction management firms to perform the
required services for the approved small capital projects, as defined and prescribed
herein.
17
Section 4.06: Small Capital Project: Selection of Consultants -Procedure.
A. District's staff shall compile a master pre-approved list of 5-1 O firms
having the required expertise to perform the required professional service for a small
project. The master list of firms will be selected based upon a solicitation, review of
qualifications, and Board approval. The original term of the agreement shall be for one
(1) year. Thereafter, the Department Director shall be authorized to recommend to the
General Manager, an extension of the professional consulting services agreement for
up to two (2) additional one (1 )-year renewal periods, for a total of three (3) years, with
each of the parties designated on the approved master list. The professional
consulting services agreement for each party on the master list shall be forwarded to
the purchasing office. The Engineering Department Staff shall prepare the appropriate
requisition documentation to insure future payment to the consultant.
B. As a need for an individual specific project arises, the District will
implement the Agreement by issuing a task order identifying the specific project by
name and number and including the approved scope of work required of the consultant
for the project. The scope of work for any individual task order, shall not entail a cost in
excess of $50,000.00. There is a maximum annual limitation of $200,000.00 for each
individual consultant purchase order under the provisions of this Section 4.06.
C. The Department Director shall first obtain at least two (2) price
proposals from consultants before the task order is awarded to a consultant. This
requirement may be waived at the discretion of the Department Director where a
determination is made that the subject work is unique such that only one ( 1) consultant
is available to perform the work, or where significant time constraints or emergency
conditions dictate that one (1) consultant be solicited for a price proposal. The
Department Director, or his designee, shall review the proposals specifically
addressing cost and ability to meet District schedule requirements. Based on the
evaluations, the Department Director is authorized to award the task order.
D. Once the consultant is selected for the award of a small capital
project and the task order is executed by the District, the Department Director shall
issue the notice to proceed.
E. Addenda to a particular task order shall be approved by the
General Manager. However, the amount for each addendum may not exceed
$50,000.00, and the cumulative total for all addenda may not exceed $50,000.00. The
Department Director shall issue the task order addendum in letter form.
Section 4.07: Major and Minor Capital Projects: Defined. "Major capital
project" means the construction, repair, modification, or rehabilitation of the District's
Capital Facilities, including treatment plants, trunk sewers, pump stations, ocean
outfall, administrative and support facilities, and other facilities related to District
18
operations, where the cost of professional technical consulting services are estimated
to be in an amount in excess of $50,000.00 for any project. These projects may
require Selection Committee or Board approvals.
Specialty-item capital projects are defined as projects other than Small Capital
Projects, as defined in Sections 4.03 through 4.06, inclusive, where the cost of
professional technical consulting services are estimated to be in an amount more than
$25,000.00, and less than or equal to $50,000.00 and require only Board Committee
approval. Requirements for Scope of Work, Proposal, Procurement and Negotiation
Agreement Continuation of Services, Agreement of Services, and Conflict of Interest
apply for both Major Capital Projects and Specialty-Item Capital Projects, with
difference only in authorization levels.
Section 4.08: Major Capital Project: Scope of Work.
A. For every project approved by the Board of Directors and for which
outside services are required, the District staff shall develop a comprehensive scope of
work.
8. The scope shall define the extent of the services and the time
required.
Section 4.09: Major Capital Project: Selection of Consultants -Procedure.
For the employment of any professional consulting services for major capital projects,
the following procedures shall apply:
A. Proposals -Notice Requesting. Staff shall prepare a Request for
Proposal ("RFP") or a Request for Qualifications ("RFQ") for the scope of work which
shall include a request for the firm's qualifications, personnel capability, demonstration
of firm's capabilities, identification of personnel assigned to the project, estimate of
number of hours for each aspect of the project, fee proposals and conflict of interest
disclaimer. The Request for Qualifications' process may be used, at Staffs discretion,
to narrow the field of firms submitting proposals on the project.
District shall maintain a comprehensive list of professional
consultants' demonstrated competence. Notice shall be mailed to all firms requesting
notice of any RFP or RFQ issued by the District. Optionally, notice may be given by
publication in professional journals or publications of general circulation.
B. Staff Screening Committee. A screening committee of at least two
(2) staff members as chosen by the Department Director shall review all submitted
proposals and prepare a recommendation for selection of the best qualified consultant
to the Selection Committee, as described in Paragraph D below.
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C. Proposals -Contents. Proposals submitted shall:
1. Acknowledge the scope of the project and extent of the
services required.
2. Include a description of the firm's qualifications for
performing the proposed work.
3. In the case of a proposal for construction management
services, each firm shall provide evidence that its personnel that will carry out
on-site responsibilities have expertise and experience in construction project
design review and evaluation, construction mobilization and supervision, bid
evaluation, project scheduling, cost-benefit analysis, claims review and
negotiation, and general management and administration of a construction
project.
4. Include past performance records of the firm.
5. Demonstrate the firm's capabilities to complete the work
within the time allotted.
6. Identify the specific key personnel to be assigned to the
project.
7. Provide an estimate of the number of hours involved in each
aspect of the scope of work for such personnel.
8. Be accompanied by a sealed fee proposal estimate which
shall not be opened until the firm is selected as being qualified. Thereafter, it
shall be the basis, for procurement negotiations. The form of the fee proposal
shall be as described in Subsections F2 and F3 below.
9. Contain a conflict of interest disclaimer.
10. Provide any other information required to properly evaluate
the firm's qualifications and familiarity with the types of problems applicable to
the project.
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D. Selection Committee -Membership.
1. The members of the Board of Directors Standing Committee
principally responsible for the project and contract under consideration for
approval shall constitute the Selection Committee for District projects.
2. At the discretion of the District Chair, additional Directors may
be appointed to the Committee to assist in the consideration of proposals for
specific projects.
E. Review of Proposals by Staff Committee and Selection Committee.
1. The Staff Committee shall review each proposal and the
qualifications of each firm with due consideration of office location, reputation in
the professional community, experience, both generally and specifically on
similar-type projects, the project approach, understanding of the scope of work,
financial standing, number of qualified personnel and their availability for the
project, quality of references, work load and other factors relevant to the project
being considered.
2. The Staff Committee, upon completion of their evaluation of
all proposals, shall determine those firms deemed to be fully qualified to provide
the services sought by the District based on their demonstrated competence and
qualifications.
3. The Staff Committee, upon making a determination of the
fully qualified firms, shall rank the firms considered, in order of preference,
based upon the qualification of each, as described in Subparagraph E(1) above.
Thereafter the Committee shall open the sealed fee proposal of the qualified
firms. Based upon the fee proposal, the committee may recommend to the
Selection Committee or the Board of Directors an individual or firm for award of
the contract. The recommended individual or firm can be ranked lower than
firms with higher fee proposals.
4. The Selection Committee shall receive and review the
recommendation of the Staff Committee and either award or recommend to the
Board of Directors, either the approval or disapproval of the Staff
recommendation to award a contract, as authorized in Section 4.10 below.
F. Procurement and Negotiation of Agreement. To determine the firm
to be selected and the compensation for the services sought, the following procedures
will be strictly adhered to:
21
1. The Staff Committee will, at its discretion, invite the firm·that
is considered to be the best qualified to appear before the Staff Committee.
2. The proposal for fees associated with the services as
submitted by the selected firm shall be presented in sufficient detail to enable
the Staff Committee to adequately ascertain the level of effort associated with
the scope of work and to determine whether the firm has thoroughly identified
the efforts associated with the services and thoroughly understands the work
required.
3. The basis of the fee shall be: Cost plus a fixed fee with a
maximum amount, a per diem rate(s) with a maximum amount, or a lump sum
(fixed) fee.
4. If it is the decision of the Staff Committee to use methods for
compensation other than the lump sum or cost plus a fixed fee with a maximum,
or the per diem rates with a maximum, justifications for this decision shall be
made by the Staff Committee in its recommendation to the Selection Committee
and the Board of Directors.
5. The Staff Committee shall review the compensation
requested by the firm which shall be compared with the maximum fee as
previously established.
6. The final negotiated fee, as recommended to the Selection
Committee and Board of Directors, shall be certified by the Staff Committee as
reasonable for the services requested and not resulting in excessive profits for
the firm.
7. If agreement is not reached, the negotiations should be
terminated and similar interviews should then follow with the next-ranked firm.
8. All such negotiations shall be on a strictly confidential basis,
and in no case shall the compensation discussed with one firm be discussed
with another.
G. Continuation of Services.
1. In some instances where a qualified firm has satisfactorily
completed one phase in the development of a project and the Board determines
that it is in the best interests of the District to retain the same firm for subsequent
phases of related work, the Staff Committee or the Selection Committee may be
authorized to proceed directly with negotiations with that firm for the additional
work.
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2. Continuation of services may arise when a firm has
completed a feasibility report or a preliminary engineering report and the
services for said work are satisfactory to the Board and the procedure of
examining other firms for subsequent phases is not deemed necessary or cost
effective.
3. In the event that satisfactory negotiations for price cannot be
concluded under these circumstances, negotiations should be terminated and
the provisions set forth hereinabove for selection of a firm would apply.
H. Specialized Services.
1. In the event that specialized services are required where it
is determined that only one qualified firm can best perform the services for a
specific project for professional fees estimated to be in an amount greater than
$50,000.00, the Staff Committee will report to the Selection Committee said
findings and request authority to negotiate directly with the particular specialized
firm.
2. The basis of selection of the specialized firm or individual
under Subparagraph H(1) above, along with the negotiated fee, shall be
presented to the Board of Directors for consideration.
I. Agreement for Services.
1. Upon approval by the Board of a negotiated agreement for
professional services, a contract shall be executed in a form approved by the
General Counsel.
2. The contract shall include, but not be limited to the following
terms:
(a) A statement of the scope of the project.
(b) The basis and individual elements of the fees.
(c) The basis for payment to the firm.
(d) The time limits in which the services must be performed.
(e) Provisions for fee adjustments should there be changes
in the scope of work.
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(f) If it is determined by the Selection Committee that the
District may be caused to incur a penalty or liability, or suffer a loss
because of the failure of the firm to perform the work within specified time
limits, the contract shall include a clause setting forth penalties for such
nonperformance or delayed performance, in amounts to be determined by
the Committee.
(g) For projects exceeding $50,000.00 in fees or in other
cases as determined by the District, errors and omissions insurance in an
amount recommended by the General Counsel (based upon engineering
data from the Department Director) shall be required, unless the Standing
Committee or Board of Directors, as the case may be, waives said
insurance.
For projects that involve small engineering studies where a
consultant is asked to provide a report not related or leading directly to a
design project, the General Manager (based upon engineering data from
the Department Director), in his discretion, may waive the requirement for
the consultant to provide errors and omissions/professional liability
insurance.
J. Conflict of Interest.
1. The District maintains a Conflict of Interest Code, pursuant
to California Government Code Section 87100 et seq., which governs the
activities and performance of duties of its officers, employees, or agents in the
conduct of project work for the District.
2. No Director, officer, employee or agent shall solicit or accept
rebates, kickbacks, favors or other unlawful consideration from any individual or
firm on behalf of any firm that may be potentially selected as a qualified firm to
provide professional consulting services to the District. Acceptance of food and
refreshments of nominal value on infrequent occasions and acceptance of
gratuities or gifts shall not be deemed a violation of this provision, provided that
if said items exceed $290.00, or the amount as fixed by Government Code
Section 89503, or California Code of Regulations, Title 2, Section 18940.1, in a
calendar year, the Director, officer, employee or agent may be disqualified from
participating in the decision pursuant to Article Ill of the District's Conflict of
Interest Code; and provided further, that any Director, officer, employee or
agent, as a designated employee under the District's Conflict of Interest Code,
shall report any amount of gifts on his/her annual Statement of Economic
Interest as required by said Code.
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3. Any firm seeking selection under these procedures that
violates the District's Conflict of Interest Code shall be automatically disqualified.
Section 4.1 O: Major Capital Project: Award of Professional Services
Agreements.
A. Primary Agreement. The award and execution of an agreement for
professional consulting services on behalf of the District shall be made in accordance
with the following delegations of authority:
1.
2.
3.
4.
Authorizing Authority
Department Heads
General Manager
OMTS, PDC, or FAHR
Committee (or Standing
(Committees)
Board of Directors
Authorized Action
Solicitation of Requests for
Qualifications ("RFQ") and Requests for
Proposals (RFP").
Authorization to evaluate proposals and
to execute contracts up to $25,000.
Receive recommendations of Staff and
General Manager, and approve Profes-
sional Services Agreements of over
$25,000.00 up to $50,000.00.
Receive recommendations of Staff,
General Manager and Committee, and
approve Professional Services
Agreements for over $50,000.00.
B. Primary Agreement -Addenda. The award and execution of an
addendum to an agreement for professional consulting services on behalf of the District
shall be made in accordance with the following:
Authorizing Authority
1. Department Head
2. General Manager
25
Authorized Action
Authority to negotiate addenda and make
recommendation to General Manager.
Receive recommendation of Department
Head and approve contract changes in
an amount up to $25,000.00 per
addendum. The total additive value of
all addenda shall not exceed
$50,000.00.
3.
4.
OMTS, PDC, or FAHR
Committee (or Standing
Committee)
Board of Directors
Receive recommendations of Staff and
General Manager, and approve contract
changes between $25,000.00 and
$50,000.00. The total additive value of
all addenda shall not exceed
$100,000.00.
Receive recommendations of Staff,
General Manager and Committee and
approve contract changes in amounts
over $50,000.00 for each change order,
over $100,000 cumulatively for the
agreement.
Section 4.11: Major Capital Project: Approval of Plans and Specifications.
The procedure and authority for the approval of the design plans and specifications for
construction of new or modified District's major capital projects is as follows:
A. For any project with approved budget authority, the Director of
Engineering is authorized to advertise for construction bids, set a bid date, and receive
all bids.
B. For any project, if the engineer's estimate for the construction
contract, as provided by the Director of Engineering or the District's consulting design
engineer is equal to or less than the approved construction budget for the project, the
Director of Engineering may advertise for bids, and upon receipt, the lowest responsive
bid of a responsible bidder will be submitted to the Board of Directors for approval.
C. For any project, if the engineer's estimate for the construction
contract, as provided by the Director of Engineering or the District's consulting design
engineer, is greater than the approved construction budget for the project, the Director
of Engineering shall submit the project to the Standing Committee for recommendation,
and based thereon, to the Board of Directors for approval.
D. For any project, upon receipt of bids for the construction, if the
lowest responsive bid of a responsible bidder is equal to or less than the approved
construction budget for the project, the bid will be submitted to the Board of Directors.
The Board of Directors, upon receipt of the bid, shall approve the plans and
specifications of the project and may award a contract.
E. For any project, upon receipt of bids for the construction, if the
lowest responsive bid of a responsible bidder is greater than the approved construction
26
budget for the project, Staff shall present the bid and a recommendation to the
Standing Committee for review and recommendation to the Board of Directors.
ARTICLE V
PUBLIC WORKS CONSTRUCTION CONTRACTS
Section 5.01 Purpose and Scope. Public works contracts are herein
defined as contracts with duly licensed contractors in the State of California for the
furnishing of labor, materials, equipment and permits, as deemed necessary, for the
erection, construction, alteration, repair, or improvement of wastewater collection,
treatment and disposal facilities, and any other public building, structure or
improvement necessary to the operation of the District, in an amount greater than
Thirty-Five Thousand ($35,000.00) Dollars, as per California Public Contracts Code
Sections 20783 et seq.
Section 5.02: Public Works: Bidding Required. When the expenditure
required for a public works construction project exceeds Thirty-Five Thousand
($35,000.00) Dollars, it shall be contracted for and let to the lowest responsible bidder,
in accordance with the provisions of California Public Contracts Code Section 20783.
Section 5.03: Bidding Procedure: Public Works Construction Greater
Than $35.000.00. Procedures for soliciting bids and awarding contracts for public
works projects for more than Thirty-Five Thousand ($35,000.00) Dollars, shall be by
written contract with the lowest responsible bidder, pursuant to the procedures
prescribed herein and in accordance with applicable provisions of California Public
Contracts Code Section 20783.
A. Notice Inviting Bids. The Notice Inviting Bids shall specifically
describe the work to be performed, shall state where bid forms, Specifications, and
General and Special Provisions may be secured, and the time and place for receiving
and opening sealed bids.
1. Published 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 ten (10) calendar days before the date for the opening of the bids. The
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 within the District.
2. Mailed Notice. Unless the work to be done is proprietary,
the Notice Inviting Bids shall be published in a public newspaper which carries
Orange County public works bid notices, not less than twenty-one (21) calendar
days before the date of opening of bids.
27
3. Bidders List. The Engineering Department may also solicit
sealed bids from all qualified, responsible, prospective suppliers whose names
are on a Bidders List that may be maintained by District.
B. Bidder's Security. When deemed necessary by the Purchasing
Division, bidder's security may be prescribed in the contract Specifications and in the
public Notice Inviting Bids. Bidders shall be entitled to return of bid security, upon full
execution by the successful bidder of an awarded contract by the District. A successful
bidder shall forfeit its bid security upon refusal or failure to execute the contract within
the prescribed time after the Notice of Award of Contract has been delivered to the
bidder, unless the District is responsible for the delay in the prescribed time. The
Board of Directors may, on refusal or failure of the successful bidder to execute the
contract, award it to the next lowest responsive, responsible bidder. If the Board of
Directors awards the contract to the next lowest bidder, an amount of the lowest
bidder's security equal to the difference in an amount between the low bid and the
awarded bid, shall be forfeited to the District, 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 Engineering or Contracts/Purchasing Manager, or their designees, and
Secretary of the Board of Directors, and shall be identified as a bid, on the envelope.
Bids shall be opened by the Director of Engineering or Contracts/Purchasing Manager,
or their designee, in public, at the time and place stated in the public notice. 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 force
account, 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.
E. Tie Bids. If two or more bids received are for the same total
amount or unit price (with quality and service being equal) and if the public interest will
not be best served by a 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 award.
F. No Bids. If no bids are received, the District may have the work
done by force account; may readvertise for bids pursuant to the procedures herein; or
may select a contractor by negotiation.
28
G. Emergencies. Whenever an emergency arises which is, or may
be, a threat to the continued operation of the wastewater facilities, support facilities
and/or administrative facilities operated by the District, a contract for the repair or
replacement of the public facility may be ordered by the General Manager without
complying with the provisions of this Resolution or the California Public Contracts
Code. This authority is hereby delegated to the General Manager, or his designee, by
the Board of Directors pursuant to the authority of California Public Contracts Code
Section 22050. In such event, the General Manager shall advise the District Chair
and/or Vice Chair, as appropriate, of the action taken, and such action shall be
confirmed by a four-fifths (4/5) vote of the Board of Directors at its next regular meeting.
H. Surety Bonds. The Purchasing Division shall require a Faithful
Performance Bond and a Labor and Materials Bond. A Warranty Bond may be
required before entering into a contract in an 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 District. 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 California Government Code.
Section 5.04: Approval of Original Construction Contract Agreement and
Change Orders to Construction Agreements. The procedure and authority for the
approval of the original construction contract agreements and change orders to
construction agreements is as follows:
A. General Manager. The General Manager is authorized to approve
an original construction contract agreement in an amount not to exceed $100,000.00,
and any change order, with a total amount of the change order additions (not the net
amount of the change order), not to exceed $100,000.00, and a total cumulative
amount for all change order additions to the agreement not to exceed 5% of the original
agreement amount, or $100,000.00, whichever is less.
B. Planning. Design & Construction Committee. The Planning,
Design & Construction Committee is authorized to approve an original construction
contract agreement in an amount not to exceed $200,000.00, and any change order,
with a total amount of the change order additions (not the net amount of the change
order), not to exceed $200,000.00, and a total cumulative amount for all change order
additions to the agreement not to exceed 10% of the original agreement amount, or
$200,000.00. whichever is less.
29
C. Management and Staff. At such time as the Staff becomes aware
of a fact or circumstance that will likely result in total additive change orders exceeding
5% percent of the original contract amount, it shall be presented to the Planning,
Design & Construction Committee at its next regular meeting for review, consideration,
and possible action.
ARTICLE VI
MEETINGS (AND RELATED TRAVEL) AND
TRAINING (AND RELATED TRAVEL) EXPENDITURES
Section 6.01: Purpose and Scope. This Article sets forth the procedures
and scope of delegated authority by which District employees are authorized to incur
expenses for budget-approved meetings and training in furtherance of District
business.
Section 6.02: General.
A. Meetings or training exceeding $500.00 will be itemized, as well as
possible, in the approved budget. It is recognized that some meetings and training
cannot be preplanned.
8. All out-of-country travel (excluding Canada and Mexico) requires
approval by the Board of Directors.
C. Meetings or training requests exceeding $2,000.00 will be
approved by the Department Director.
D. Meetings or training requests less than $2,000.00 will be approved
by the Division Manager.
E. Established approvals must be received prior to arrangements for
meetings or training being made.
Section 6.03: Policies and Procedures. All policies and procedures
governing meetings and training, such as the use of District forms and justification, will
be followed.
30
...
ARTICLE VII
MISCELLANEOUS
Section 7.01: 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 7.02: 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.
Section 7.03: Effective Date. This Resolution shall take effect immediately
upon adoption by the Board of Directors.
Section 7.04: Repeal of Prior Resolutions. Resolutions Nos. OCSD 98-8,
OCSD 98-12, OCSD 98-21, and OCSD 98-43 are hereby repealed in their entirety.
PASSED AND ADOPTED at a regular meeting of the Board of Directors held
November 17, 1999.
ATT~T: ~~At/-
Ch~':· ..
'1--' if '. ·_, -.. :-~·-·:
. ~ .. ~ ·----J. r.·:., ~. ~~,
"':· 1 •
,. ' '
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. /.,.. .. ' . , . '··\ , / .) ·':" ·z .) ··,~
31