HomeMy WebLinkAboutOCSD 06-26 (REPEALED)RESOLUTION NO.OCSD 06-26
ESTABLISHING POLICIES AND PROCEDURES FOR:THE
AWARD OF PURCHASE ORDERS AND CONTRACTS;PUBLIC
WORKS PROJECT CONTRACTS:PROFESSIONAL SERVICES
CONTRACTS:AND DELEGATION OF AUTHORITY TO
IMPLEMENT SAID POLICIES AND PROCEDURES
A RESOLUTION OF THE BOARD OF DIRECTORS OF
ORANGE COUNTY SANITATION DISTRICT (DISTRICT
OR OCSD)ESTABLISHING POLICIES AND
PROCEDURES FOR THE AWARD OF PURCHASE
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
RESOLUTION NO.OCSD 04-08
REPEALED BY
OCSD 06-28
ARTICLE I:
ARTICLE II:
ARTICLE Ill:
ARTICLE IV:
TABLE OF CONTENTS
RECITAL OF FINDINGS ................................................... Page 1
Section 1.01: Findings: Declaration of Intent.
TERMS AND DEFINITIONS ...........................•...........•...... Page 2
Section 2.01: Terms and Definitions
DELEGATION OF AUTHORITY -GENERAL .................. Page 5
Section 3.01: Purpose and Scope.
Section 3.02: Authorizing General Manager to Establish Rules
and Guidelines.
Section 3.03: Procedure for Delegation of Authority
};>-Approval Levels
a. Co-signatures
b. Procedural Requirements
c. Special Consideration for Extraordinary
Projects I Events
Section 3.04: Purchasing System Adoption
Section 3.05: Purchasing Division Delegated Authority
Section 3.06: Procurement Card Program
Section 3.07: Requisitions
Section 3.08: Cooperative Procurement
Section 3.09: Purchases: Emergency
Section 3.10: Purchases: Sole Sources; Standardized Prices,
Specialized Services, and Sole Sources
Section 3.11: Purchase Orders
Section 3.12: Purchases: Encumbrances of Funds
Section 3.13: Blanket Purchase Orders
Section 3.14: Surplus Supplies, Materials, and Equipment.
Section 3.15: Sale of Real Property.
Section 3.16: Recordkeeping
OPERATIONAL SUPPLIES, MATERIALS, .................... Page 12
EQUIPMENT & SERVICES, INCLUDING
PROFESSIONAL SERVICE CONSULTANTS
(EXCLUDING PUBLIC WORKS CONTRACTS OR
PROFESSIONAL DESIGN SERVICE AGREEMENTS)
Section 4.01: Purpose and Scope.
Section 4.02: Purchases: Bidding Requirements.
Section 4.03: Bidding Procedure: Purchases Greater than
$50,000.
Section 4.04: Purchases between $50,000 and $100,000.
Section 4.05: Bidding Procedure: Purchases Less Than
$50,000.
ii
ARTICLE V:
ARTICLE VI:
Section 4.06: Bidding Procedure: Purchases Less
Than $5,000.
Section 4.07: Inspection and Testing.
Section 4.08: Purchases: Negotiated Contracts.
Section 4.09: Request for Proposal Procedure.
PROFESSIONAL DESIGN SERVICE AGREEMENTS ... Page 18
Section 5.01: Purpose and Scope.
Section 5.02: Retention of Professional Design Consultants.
Section 5.03: Facilities Engineering Project.
Section 5.04: Facilities Engineering Project: Approval of Plans
and Specifications.
Section 5.05: Facilities Engineering Project: Annual Budget
Approval.
Section 5.06: Facilities Engineering Project: Selection of
Consultants -Procedure.
Section 5.07: Major Capital Project: Approval of Plans and
Specifications.
Section 5.08: Major Capital Project: Scope of Work
a. Proposals -Notice Requesting
b. Staff Screening Committee
c. Proposal -Contents
d. Review of Proposals by Staff Screening
Committee
e. Procurement & Negotiation of Agreement
f. Continuation of Services
g. Specialized Services
h. Agreement for Services
i. Conflict of Interest
Section 5:09: Major Capital Project: Selection of Consultants -
Procedure.
PUBLIC WORKS CONSTRUCTION CONTRACTS ........ Page 26
Section 6.01: Purpose and Scope.
a. Notice Inviting Bids
b. Bidder's Security
c. Bid Opening Procedure
d. Rejection of Bids
e. Tie Bids
f. No Bids
g. One Bid
h. Emergencies
i. Surety Bonds
j. Cost Records
Section 6.02: Public Works: Bidding Required.
Section 6.03: Bidding Procedure: Public Works Construction
Greater than $35,000.
Section 6.04 Public Works Projects
a. Close-out Agreements
iii
ARTICLE VII:
ARTICLE VIII:
ARTICLE IX:
b. Notice of Completion
c. Time Extension to Construction Contract
Agreement
AWARD AUTHORIZATION ............................................ Page 30
Section 7.01 Agreements, Amendments & Change Orders:
A. Agreements
B. Amendments & Change Orders
C. Change Orders to Existing Agreements
Section 7.02 Facilities Engineering Projects:
A. Task Orders
B. Amendments
Section 7.03 Public Works Projects:
A. Close-Out Agreements
B. Notice of Completion
C. Time Extension to Construction Contract
Agreement
TRAINING, MEETINGS, AND RELATED TRAVEL
EXPENDITURES ............•.....................•........................ Page 35
Section 7.01: Purpose and Scope.
Section 7.02: General.
Section 7.03: Policies and Procedures.
MISCELLANEOUS .•............................•.•........................ Page 36
Section 8.01: Noncompliance.
Section 8.02: Severability.
Section 8.03: Effective Date.
Section 8.04: Repeal of Prior Resolution.
iv
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, materials and equipment, and that purchases
of supplies, services, materials 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, materials, 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, and to clearly
define authority for the purchasing function, and to establish bidding procedures, a
purchasing system for OCSD 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 will
enable timely and responsive administrative acquisition of supplies, services, materials,
and equipment. 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 OCSD's operations.
Resolution No. OCSD 04-08 1of36
ARTICLE II
TERMS AND DEFINITIONS
Section 2.01 : Terms and Definitions.
A. "Amendment or Change Order" shall mean written agreements
entered into and between the Professional Service Provider or Contractor and OCSD,
properly executed, covering alterations, changes, additions, or deletions to the Contract
which are necessary for the proper completion of the work.
B. "Capital Facilities" shall mean those public works owned by
OCSD that are currently in existence.
C. "Capital Facilities Operational Projects" shall mean the routine,
recurring, and usual work for the preservation or protection of any public works, as well
as any minor repainting, landscape, maintenance, or work performed to keep, operate,
and maintain OCSD's water, power and wastewater disposal systems. This work shall
include modification or repair, or the replacement of parts, equipment, and facilities.
D. "Capital Improvements" shall mean those public works that are
to be newly-erected or constructed by OCSD in the future.
E. "Change Order" shall mean written agreements entered into and
between the Contractor and OCSD, for Public Works Contracts, properly executed,
covering alterations, changes, additions, or deletions to the Contract, which are
necessary for the proper completion of the work.
F. "Competitive Bidding" shall mean the process and procedure
whereby OCSD, in accordance with California Public Contract Code Section 20783,
prepares Plans and Specifications for the construction of public works; publishes a
Notice Inviting Bids, and at a fixed time opens all bids received; and subsequently
awards a Construction Contract to the lowest responsive and responsible bidder.
G. "Design Agreement" shall mean a contract between OCSD and
a Professional Design Consultant who is licensed, certified, or registered by the State of
California to perform professional services. For OCSD purposes, these individuals shall
be known as "Professional Design Consultants".
H. "Facility Engineering Project" shall mean 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 $100,000 (inclusive of
amendments) for each project.
I. "Force Account" shall mean work that is performed solely by
OCSD employees which has a cost value, including labor, overhead, parts, and
supplies, in an amount not to exceed $5,000 for each Project, except as allowed in
Resolution No. OCSD 04-08 2 of 36
Subparagraphs (a) and (b) below. It does not mean work performed for OCSD by
persons or an entity under contract to OCSD, even when said work may be ordered by
OCSD as being outside or beyond the original contract scope of work. OCSD
employees may perform work on contracts, without limitation on amount only, for one of
the following reasons:
(a) It is an emergency and performing the work with OCSD forces
is more expedient; or,
(b) The Board of Directors has rejected all bids and by a four-fifths
vote declared that the work can be performed more economically
by day labor. A written cost effectiveness analysis must be placed
in the contract file.
This force account provision shall not apply to sewerage maintenance or repair work.
J. "Major Capital Projects" shall mean the construction, repair,
modification, or rehabilitation of OCSD's Capital Facilities, including treatment plants,
trunk sewers, pump stations, ocean outfall, administrative and support facilities, and
other facilities related to OCSD operations, where the cost of Professional Design and
Consultant Services are estimated to be in an amount in excess of $100,000 for any
project. These projects may require Selection Committee or Board approvals.
K. "Professional Design Consultant" shall mean an individual or
firm providing engineering, architectural, environmental, land surveying, construction
management, and other similar services which are those professional services
associated with development and design for construction, alteration, or repair of public
works, 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, inspections, shop drawing reviews,
sample recommendations, cost estimates, inspections, preparation of operation and
maintenance manuals, and other related services, all of which must be incidental to
OCSD awarding a contract for the construction of public works.
L. "Professional Design Service Agreement" shall mean a
Contract between OCSD and a Professional Design Consultant to provide services to
OCSD for professional engineering, architecture, environmental, land surveying, and
similar services as a non-employee of OCSD.
M. "Professional Service Consultant" shall mean an individual or
firm (other than a "Professional Design Consultant"), providing professional services to
OCSD, such as, but not limited to, accounting and financial services, information
technology, general research, evaluation of systems design related to wastewater
treatment systems, legislative evaluation and advocacy, human resources consultation
and advocacy, and miscellaneous scientific research and consultation.
N. "Professional Service Consultant Agreement" shall mean a
contract between OCSD and a Professional Consultant to provide services to OCSD as
a non-employee of the District.
Resolution No. OCSD 04-08 3 of 36
0. "Public Works" shall mean all buildings, structures, facilities,
improvements, or works that are owned or operated by OCSD for the benefit of the
public and which were or are being constructed, altered, demolished, or repaired under
contract and paid for, in whole or in part, out of public funds.
P. "Public Works Contract" shall mean an Agreement between
OCSD and another party for the erection, construction, alteration, repair, or improvement
of any public works of any kind. Public Works projects estimated more than $35,000
must adhere to the provisions of the California Public Contract Code.
Q. "Standing Committees" shall mean the Steering Committee,
Engineering and Operations (E&O) Committee, and Finance and Administration
Committee.
R. "Task Orders" shall mean miscellaneous technical support
authorized under a current contract. The specific task must have a defined budget and
be completed within the total budget of the existing prime contract.
Resolution No. OCSD 04-08 4 of 36
ARTICLE Ill
DELEGATION OF AUTHORITY -GENERAL
Section 3.01: Purpose and Scope.
In an effort to remove barriers that prevent OCSD employees from performing
their jobs at the highest level of efficiency, a delegation of authority structure will
appropriately provide staff with information on its increased responsibility and ownership,
hence, it will contribute to the improved efficiency and effectiveness of OCSD.
Section 3.02: Authorizing General Manager to Establish Rules and
Guidelines.
The levels of authorization to award purchase orders and contracts to acquire
services, including professional services, supplies, materials, and public works project
contracts, are as more particularly specified in Article VII herein.
The General Manager of OCSD is hereby authorized to establish rules and
guidelines to implement Board policies and to delegate to Staff, signature authority to
initiate the procurement process, as specified in Articles IV through VII herein.
Section 3.03: A. Procedure for Delegation of Authority.
These procedures establish the framework and boundaries within which a
delegate can operate, and also provide Management with a mechanism to evaluate
implementation and hold the delegate accountable for his I 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, the job position, and specific level of delegated
authority as Staff Level A, B, or C, respectively (as set forth in Section 7.01A below), and
filing it with the Contracts I Purchasing Manager. The General Manager shall establish
further procedures to implement delegated authority into the organization.
To commence the procurement process for acquisition of operational supplies,
services, materials, and equipment, public works contracts governed by state law and
professional and design service agreements, signature authority is hereby established
as set forth in Section 7.01A below. The functional authority level listed describes the
highest level of signature approval needed. Intermediate management approval
between the initiator I requester and listed approval level must also be obtained.
The General Manager may delegate authority for all purposes under this
Resolution to a Department Head to act in the General Manager's absence.
Resolution No. OCSD 04-08 5 of 36
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 and purchase orders will be
signed by the Contracts I Purchasing Manager, or his designee upon approval of the
delegated authority specified in Section 7.01A.
2. All purchases for computer hardware, software, copiers,
faxes, 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 supplies, materials, equipment or services, 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.
D. Special Consideration for Extraordinary Projects I Events.
The Board of Directors, at its discretion, may temporarily increase the General
Manager's purchasing approval and amendment I change order authority due to
circumstances it finds critical to the operation. In addition, the Board may also allow the
replenishment of the General Manager's amendment I change order authority, once
exhausted, back to its original level, if necessary.
Section 3.04: 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 3.05: 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 the 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 I 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
Resolution No. OCSD 04-08 6of 36
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, contracts, purchase orders, and other related documents. The Board
Secretary shall be the designated Custodian of all original executed copies of contracts,
purchase orders, and other related documents which are approved by the Board of
Directors. The Purchasing Department shall be the designated Custodian of all other
executed contracts.
D. To discourage uniform bidding and endeavor to obtain as full and
open competition as possible on all purchases and sales.
E. 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 of the
sewage treatment process.
F. To prepare rules, regulations, procedures, and administrative
policies, and revisions thereto, governing the warehousing of inventories.
G. To keep informed of current developments in the field of
purchasing, including but not limited to prices, market conditions, and new products.
H. To prescribe and maintain such forms as are reasonably
necessary for the implementation of this Resolution and other rules and regulations of
OCSD.
I. To review and recommend specifications to establish minimum
standards for all purchases.
J. To supervise the inspection of all supplies, services, materials,
and equipment purchases to insure conformance with specifications.
K. To provide for the transfer of surplus or unused supplies and
equipment between Departments, as needed.
L. To have custodianship and control of all inventories and surplus
property.
M. To maintain a bidders' list, vendors' catalog file, and records
needed for the efficient operation of the Purchasing Division.
N. To review, approve, and maintain active insurance documents for
all OCSD procurements.
Resolution No. OCSD 04-08 7 of 36
0. 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, OCSD 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 OCSD's behalf.
P. To undertake such other and future duties as, in the Director of
Finance's discretion, are incidental and necessary to the conduct of the Division.
Section 3.06. Procurement Card Program.
OCSD has established a Procurement Card ("Procard") Program allowing
specifically authorized employees to purchase goods and services with a total dollar
value less than $1,000, thereby eliminating the purchase requisition, purchase order,
invoice, and check requirements for these purchases. Approval for use of a Procard
must first be obtained from OCSD's Procard Administrator, with the concurrence of the
Contracts I Purchasing Manager and appropriate Department Head. All employees
authorized by the Finance Department to use a Procurement Card shall do so only in
accordance with OCSD's Procurement Card Policies and Procedures.
Section 3.07: Regu isitions.
All OCSD employees 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 OCSD's procurement cards shall be exempt from this requirement.
Section 3.08: Cooperative Procurement.
A. OCSD, through Purchasing, may participate in or sponsor,
conduct, and I or administer a Cooperative Procurement Agreement for the acquisition of
procured items or services with any other public agency purchasing unit, or public
agency alliance, in accordance with an agreement between OCSD and the other public
agency.
B. OCSD, through Purchasing, may sell to, acquire from, or use any
property (other than real property) belonging to another public agency, including the
cooperative use of supplies or services.
C. Purchasing may, at its discretion, procure from the County of
Orange Cooperative Purchasing Program, the State of California Multiple Award
Schedules Program and the Department of General Services Program, the California
Association of Public Purchasing Officers Program, the Western States Contracting
Alliance, the County of Los Angeles' Cooperative or Piggyback Programs, and U.S.
Communities Alliance, without obtaining bids and following procedures set forth below, if
Resolution No. OCSD 04-08 8 of 36
the Contracts I Purchasing Manager determines that goods or services procured through
said Programs are cost-favorable to OCSD.
Section 3.09: 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 OCSD, 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 Thousand ($100,000) Dollars without observing the procedures set forth in
this Resolution. The General Manager or his designee, shall advise the OCSD Chair
and I 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 3.10: Purchases: Standardized Prices, Specialized Services,
and Sole Sources.
A. The Purchasing Division may make purchases of supplies,
materials, equipment or services without observing the bidding and Board approval
procedures of Section 4.13 below when:
1. Items to be purchased have a demonstrated uniformity in
price; or
2. An emergency arises which is, or may cause, a threat to
the continued required operations of Reclamation Plant 1 or Treatment Plant 2; or
3. Purchases are immediately necessary for the preservation
of life or property, or to avoid a threat to the public health or safety; or
4. The Provider of goods or services is determined to be
uniquely qualified to provide specialized goods or perform specialized services.
5. It is determined that there is a sole source Provider that
has goods and services available immediately that might not otherwise be available at
such time purchasing procedures could be completed, and Staff determines such items
are critical to OCSD's operations;
a. For sole sources greater than $100,000, the General
Manager, or his designee, shall advise the OCSD Chair and I or Vice Chair, as
appropriate, of the action to be taken, and such action shall be ratified by the Board of
Directors at its next regular meeting.
b. Sole sources between $50,000 and $100,000 shall be
approved by the General Manager and reported to the Board of Directors quarterly.
c. All sole sources shall require pre-approval from the
requesting Department Head, the Contracts I Purchasing Manager and the Director of
Finance.
Resolution No. OCSD 04-08 9 of 36
Section 3.11: Purchase Orders.
Purchases of all supplies, services, materials, or equipment shall be made by
purchase order through use of a requisition, and may also require a formal written
contract when determined necessary or appropriate by the Contracts I 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
I Purchasing Manager, or as delegated by the Contracts I Purchasing Manager.
Employees requisitioning supplies and equipment shall be responsible that 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.
In accordance with OCSD's Records Retention Policy, Purchasing shall retain in
its files one (1) copy of all purchase orders issued during the 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 3.12: 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 a sufficient budget item
against which said purchase is to be charged, and which is not pledged towards any
other specific purchase.
Section 3.13: Blanket Purchase Orders.
The Purchasing Division may issue annual blanket purchase orders for recurring
purchases of miscellaneous supplies that:
A. Are not carried in stock in OCSD's warehouse because of
economic considerations;
B. Are stock items that have been designated as appropriate sole
source acquisitions;
C. Have been competitively bid because Purchasing determines it is
in the best interests of OCSD to issue a blanket order for inventory items; or
D. Are for miscellaneous supplies, services, materials and equipment
where such purchase may be procured from a single vendor during the budget year,
without observing the procedures prescribed in Section 4.03 below when, in the
Purchasing Division's discretion, it is determined that such blanket purchase orders are
at a cost favorable to OCSD and will result in a 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.
Resolution No. OCSD 04-08 10 of 36
Section 3.14: Surplus Supplies, Materials, and Equipment.
All Departments and I or Divisions shall submit to Purchasing, at such times and
in such form as Purchasing shall prescribe, reports showing all supplies, materials, and I
or equipment which are no longer used or which have become obsolete or worn out.
Purchasing shall have the authority, as deemed appropriate by the Contracts I
Purchasing Manager, to sell, exchange for, or trade in on new supplies, materials, and
equipment, or dispose, as deemed appropriate, of all supplies, materials, and equipment
which cannot be used by any other Department or Division, or which have become
unsuitable for OCSD use.
Section 3.15: Sale of Real Property.
No negotiations concerning the sale of real property of OCSD may be made
without prior review from the Contracts/Purchasing Manager and the General Counsel.
No real property of OCSD may be sold without prior approval of the Board of Directors
Section 3.16: Recordkeeping.
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.
Resolution No. OCSD 04-08 11 of 36
ARTICLE IV
OPERATIONAL SUPPLIES, MATERIALS, EQUIPMENT &
SERVICES, INCLUDING PROFESSIONAL
SERVICE CONSULTANTS
(EXCLUDING PUBLIC WORKS CONTRACTS OR
PROFESSIONAL DESIGN SERVICE AGREEMENTS)
Section 4.01: Purpose and Scope.
In order to establish efficient procedures for the purchase of supplies, materials,
equipment and services, including Professional Service Consultants, 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; and to establish bidding procedures pursuant to Section 54202 of
the Government Code of the State of California, a purchasing system is deemed
necessary. This Article does not apply to Professional Design Service Agreements and
Public Works Contracts, which are defined and governed by Articles V and VI below.
Section 4.02: Purchases: Bidding Requirements.
Except as hereinafter provided, purchasing of supplies, materials, equipment or
services, including Professional Service Consultants, shall be by bid procedures as set
forth in this Article IV, when the purchase is estimated to have a value.greater than Five
Thousand ($5,000) Dollars; the supplies or services may be obtained from more than
one vendor; are not standardized as to price; and no emergency exists.
Section 4.03: Bidding Procedure: Purchases Greater Than $50.000.
A. Award to Lowest Bidder. Except as otherwise provided in this
Article IV, purchases of supplies, materials, equipment or services, including
Professional Service Consultants, of an estimated value greater than $50,000 shall be
by written contract or purchase order with the lowest responsive and responsible bidder
(unless a Request for Proposal solicitation instrument is utilized), pursuant to the
procedures prescribed herein. ·
B. Award Approval. Purchases of supplies, materials, equipment or
services, including Professional Service Consultants, that are identified and have
appropriate not to exceed contractual pre-approvals, as outlined in each Fiscal Year's
annual budget, to include capital equipment, shall be bid and awarded directly by the
Contracts I Purchasing Manager, or as delegated by the Contracts I Purchasing
Manager in accordance with the procedures in this Section 4.03.
Supplies, materials, equipment or services, including Professional Service
Consultants, not budgeted, or which exceed the Board or pre-approved amount, or
subsequent increases to the contract above the original amount identified and approved
in the budget year the contract was awarded (both pre-approved or Board approved), or
Resolution No. OCSD 04-08 12 of 36
which affect policy recommendations or ratifications, or are sole source contracts
exceeding $100,000, and all applicable public works contracts, shall require Board of
Directors' approval prior to issuance or award of a purchase order or contract, except as
provided in Section 7.01(B).
C. Notice Inviting Bids. A Notice Inviting Bids shall be published
and 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 publication or posting of the Notice shall be at least ten
(10) days before the date of opening the bids. Notice may be published in a newspaper
of general circulation, printed and published within OCSD's jurisdiction; or by electronic
bulletin board procedures designed to reach the industry or market of supply; or through
OCSD's Internet Web Site.
2. Bidder's 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 OCSD, or who have requested their names
to be added thereto.
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
Contract's Purchasing Manager.
D. Bidder's Security. When deemed necessary by Purchasing, a
bidder's security may be prescribed in the contract specifications or in the Notice Inviting
Bids. Purchasing, or those assigned by Purchasing, shall maintain said bidders
security. Bidders shall be entitled to the return of a 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 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 OCSD is responsible for a delay in the prescribed time.
The Contracts I Purchasing Manager may, on refusal or failure of the successful bidder
to execute the contract, award it to the next lowest responsive, responsible bidder. If
the Contracts I Purchasing Manager 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 OCSD, 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 I Purchasing Manager and I 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 pubic by the Contracts I Purchasing Manager, or
his designated representative, at the time and place stated in the public notices. A
tabulation of all bids received shall be available 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
Resolution No. OCSD 04-08 13 of 36
RFP's will be opened, and only the name of the Proposer shall be read aloud at the time
and place set forth therein.
F. Rejection of Bids. At his discretion, the Contracts I Purchasing
Manager may reject any and all bids presented and re-advertise for bids. If all bids are
rejected, the Contracts I Purchasing Manager 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 re-advertising for bids, the Board of Directors or
Contracts I Purchasing Manager may accept the one it chooses or accept the lowest bid
made by negotiation with the tie bidders at the time of the award.
H. Performance Bonds. Purchasing shall have the authority to
require a Faithful Performance Bond, a Labor and Materials Bond, and I or a Warranty
Bond, before entering into a contract in an amount as it shall find reasonably necessary
to protect the best interests of OCSD. 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 4.04: Purchases between $50.000 and $100.000. Purchasing
may award a contract to purchase supplies, materials, equipment or services, including
Professional Service Consultants, in an amount greater than $50,000 and less than
$100,000, without obtaining bids and following the procedures all as more particularly
set forth in Section 4.03 above when the Contracts I 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 supplies, materials, equipment or services, including
Professional Service Consultants, immediately that might not otherwise be available at
such time as purchasing procedures could be completed; or
C. Said contract for supplies, materials, equipment or services,
including Professional Service Consultants, includes Board of Directors' approval for
multiple one (1) year renewal periods at the Districts option. All such contracts shall not
exceed the prescribed limit of renewal periods as defined by the Board of Directors and
shall require the Contracts I Purchasing Manager's approval; or
D. The supplies, materials, equipment or services, including
Professional Service Consultants, are only available from a sole source; or
E. Whenever an emergency arises which is, or may cause, a threat
to the continued required operations of Reclamation Plant 1 or Treatment Plant 2, or
when purchases are immediately necessary for the preservation of life or property, or to
avoid a threat to the public health or safety.
Resolution No. OCSD 04-08 14 of 36
Section 4.05: Bidding Procedure: Purchases Less Than $50,000.
Purchases of supplies, materials, equipment or services, including Professional
Service Consultants, of an estimated value in the amount of $50,000 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 4.03 above. The
procedures to be used for these purchases are as follows:
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 I or by telephone, facsimile transmission,
electronic bulletin board, and I 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, materials,
equipment or services, including Professional Service Consultants, without observing the
procedures prescribed in Subparagraphs A, B, and C above, if supplies, materials,
equipment or services, including Professional Consultant Services 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 I Purchasing Manager.
Section 4.06: Bidding Procedure: Purchases Less Than $5.000.
Purchasing may purchase supplies, materials, equipment or services, including
Professional Service Consultants of a value in the amount of $5,000 or less per
purchase order, without observing the procedures prescribed in Section 4.05 when, in
the Contracts I Purchasing Manager's discretion, it is determined that observing such
procedures would not result in a lower overall cost to OCSD. Record of such decision
shall be fully stated in the purchase order file as to the reason therefor.
Section 4.07: Inspection and Testing.
The supplies, materials, equipment or services delivered, including performance
or deliverables resulting from a Professional Service Contract, shall be inspected to
determine their conformance with the specifications set forth in the purchase order or
contract. Purchasing shall have the 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.
Resolution No. OCSD 04-08 15 of 36
Section 4.08: Purchases: Negotiated Contracts.
Notwithstanding other provisions of this Resolution, the Board of Directors may,
when it appears in the best interests of OCSD, authorize the Staff to negotiate and
award a contract for the purchase of supplies, materials, equipment or services,
including Professional Service Consultants, without observing the procedures prescribed
in Sections 4.03, 4.04 and 4.05 above.
A. When such authorization has been granted for the purchase of
supplies, materials, equipment or services, including Professional Service Consultants,
of an estimated value in the amount of $100,000 or greater, the Staff shall obtain the
concurrence of OCSD Chair and I or Vice Chair, as appropriate, prior to awarding such
purchase.
B. Whenever any contract for supplies, materials, equipment or
services, including Professional Service Consultants, has been entered into between
OCSD and a person or entity, and Purchasing determines that it is in the best interest of
OCSD 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 4.03 and 4.05 above; provided, the original contract
contains provisions for subsequent extension periods; has been approved and awarded
by the Board of Directors; and I or has prior contractual pre-approval, as provided in
Section 4.03.
Section 4.09: Request for Proposal Procedure.
As deemed appropriate by the Contracts I Purchasing Manager, a Request for
Proposal ("RFP") solicitation process may be employed in lieu of the competitive bidding
process. The RFP process may be used for goods or services that prove difficult to
quantify or describe. Therefore, Proposers are offered the opportunity to offer solutions.
Award shall be based upon criteria which provide the "best value" received by OCSD,
which is not solely determined by price.
A. All Purchases -All Levels. Except as otherwise stated below, the
RFP process shall follow bidding thresholds and procedures as outlined in Sections 4.03
and 4.05 above.
B. Purchasing shall solely prescribe the Request for Proposal (RFP)
procedure and award criteria. OCSD's RFP procedure shall be on file and available
with the Contracts I Purchasing Manager or designee.
C. The Contract I Purchasing Manager shall solely prescribe and
approve all RFP Evaluations team members.
D. In order to avoid actual or perceived conflicts of interest, members
of the Board of Directors are prohibited from participating in the RFP Evaluation process,
except in those instances where the potential provider shall directly serve and report to
the Board or its respective Committee(s) or when approved to do so by the Board Chair.
E. OCSD maintains a Conflict of Interest Code pursuant to California
Government Code Sections 87100 et seq., which governs the activities and performance
Resolution No. OCSD 04-08 16 of 36
of duties of its Directors, officers, employees, or agents in the conduct of project work for
OCSD.
F. No Director, officer, employee, or agent of a Professional Service
Consultant under contract with OCSD, shall solicit or ac;cept 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
OCSD. Acceptance of food and refreshments of a 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 $340, or the amount as fixed by California
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 OCSD's Conflict of Interest
Code; and provided, further, that any Director, officer, employee, or agent, as a
designated employee under OCSD's Conflict of Interest Code, shall report any amount
of gifts on his I her annual Statement of Economic Interests, as required by said Code.
G. Any firm seeking selection under these procedures that violates
OCSD's Conflict of Interest Code shall be automatically disqualified.
H. Any firm solicited to violate the Code must report said solicitation
to the Board of Directors, or it will be automatically disqualified.
Resolution No. OCSD 04-08 17 of 36
ARTICLE V
PROFESSIONAL DESIGN SERVICE AGREEMENTS
Section 5.01: Purpose and Scope.
OCSD, 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 5.02: Retention of Professional Design Service Consultants.
This Resolution establishes a procedure to be followed in the selection and
retention of Professional Design Consultants in the areas of engineering, architecture,
environmental, land surveying, and construction management services.
Professional Design 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, all of which must be incidental to OCSD awarding a contract
for Construction or Public Works. 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 firms vary. Accordingly, Professional Design
Consultants shall be selected based upon OCSD's discretion and opinion as to which
particular Consultant is best qualified to perform the work (hereinafter referred to as the
"project") 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.
Resolution No. OCSD 04-08 18 of 36
C. A principal member of the firm's staff must have the minimum
appropriate experience in responsible charge of work of the type involved in the project.
The appropriate experience required will solely be determined by OCSD staff.
D. At least two (2) additional members of the firm's staff must have
appropriate experience in responsible charge in the field or fields required by the project.
The appropriate experience required will solely be determined by OCSD staff.
E. The firm shall be capable of performing the work within the
prescribed time limitations considering the current and planned workloads of the firm.
F. If all other factors are equal, preference shall be given to a locally
based firm when more than one firm is being considered.
G. If the project is funded, either in whole or in part, by state or
federal funds that require, as a condition of establishing or maintaining eligibility for state
or 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.
OCSD also recognizes that the scope of services and the qualifications of
consultants can differ significantly between major capital facilities projects and facilities
engineering projects. The criteria set forth in Paragraphs C and D above may be
waived by OCSD for Facilities Engineering Projects.
The procedures set forth in this Resolution shall govern the retention of
Professional Design Consultants.
Section 5.03: Facilities Engineering Project:
"Facilities Engineering Project" is defined as a miscellaneous capital
improvement or facility modification, replacement, or repair project, related to plant
safety, reliability or efficiency enhancements where professional design consulting
services are estimated to be in an amount not to exceed $100,000 ($75,000 for original
Task Order and $25,000 for any additional amendments) for each project.
Section 5.04: Facilities Engineering Project: Annual Budget
Approval.
Upon approval by the Board of Directors of an annual budget, OCSD's Director
of Engineering or OCSD's Contracts I Purchasing Manager, or their designees, 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 Facilities Engineering Projects, as defined and
prescribed herein.
Section 5.05: Facilities Engineering Project: Selection of
Consultants -Procedure.
A. OCSD's Staff shall compile a master pre-approved list of not less
than 5, nor more than 10 firms having the required expertise to perform the required
Resolution No. OCSD 04-08 19 of 36
professional service for a Facilities Engineering Project. The master list of firms will be
selected based upon a solicitation, review of qualifications, and Board approval of the
agreements including up to two annual optional renewals. Upon selection and approval,
the Professional Design Consultant shall execute the District's Professional Design
Service Agreement. The original term of the agreement shall be for one (1) year.
Thereafter, the Director of Engineering (DOE) shall be authorized to recommend to the
General Manager, an extension of the qualified Professional Design Service 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
Design Service 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 Facilities Engineering Project
arises, OCSD will implement the Agreement by issuing a Task Order identifying the
specific project by name and number, and include the approved scope of work required
of the consultant for the project. There is a maximum annual fiscal year contract
limitation of $200,000 for each Professional Design Service Agreement under the
provisions of this Section 5.05.
C. The DOE 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 DOE, 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 DOE, or his designee, shall review the
proposals specifically addressing cost and ability to meet OCSD schedule requirements.
Based on the evaluations, the DOE is authorized to award the original Task Order.
D. Once the Professional Design Consultant is selected for the award
of a Facilities Engineering Project and the Task Order is executed by OCSD, the DOE
shall issue the Notice to Proceed.
Section 5.06: Facilities Engineering Project: Approval of Plans and
Specifications.
The Board of Directors delegates to the Director of Engineering (DOE), as a
Professional Registered Engineer, the authority to approve the design, plans, and
specifications for the construction of a new or modified OCSD facility that is deemed a
Facilities Engineering Project, as defined in Section 5.03 above.
Section 5.07: Major Capital Project: Scope of Work.
A. For every project approved by the General Manager, the E & 0
Committees, or the Board of Directors, and for which outside professional consulting
services are required, OCSD Staff shall develop a comprehensive scope of work.
B. The scope of work shall define the extent of the services and the
time required.
Resolution No. OCSD 04-08 20 of 36
Section 5.08: Major Capital Project: Selection of Professional Design
Consultants -Procedure.
For the employment of any Professional Design Consultant or Professional
Service Consultant for major capital projects budgeted and approved by the Board of
Directors, 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 Staff's discretion, to narrow the
field of firms submitting proposals on the project.
OCSD shall maintain a comprehensive list of professional consultants'
demonstrated competence. 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 E & 0 Committee as described in Paragraph D below.
In order to avoid actual or perceived conflicts of interest, members
of the Board of Directors are prohibited from participating in the RFQ Evaluation process
except in those instances where the potential provider shall directly serve and report to
the Board or its respective Committee(s) or when approved to do so by the Board Chair.
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.
Resolution No. OCSD 04-08 21of36
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 E2 and E3 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.
D. Review of Proposals by Staff Screening Committee
1 . The Staff Screening Committee shall review, and evaluate
proposals, negotiate fees, and determine and make recommendations to the E & 0
Committee as to which firm is deemed to be fully qualified to provide services sought by
OCSD based on the firm's demonstrated competence and qualifications.
2. The Staff Screening Committee, upon making a
determination of the fully qualified firms, shall rank the firms considered, based upon the
qualifications and in order of preference.
E. 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:
1. The Staff Screening Committee will, at its discretion, invite
the firm that is considered to be the best qualified to appear before the Staff Screening
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
Screening 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; per diem rate(s) with a maximum amount; or a lump sum (fixed) fee.
4. If it is the decision of the Staff Screening 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 Screening Committee in its recommendation to the E & 0 Committee
and the Board of Directors.
5. The Staff Screening Committee shall review the
compensation requested by the firm which shall be compared with the maximum fee as
previously established.
Resolution No. OCSD 04-08 22 of 36
6. The final negotiated fee, as recommended to the E & 0
Committee and Board of Directors, shall be certified by the Staff Screening 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.
F. Continuation of Services.
1. In some instances when a qualified firm has satisfactorily
completed one phase in the development of a project, Staff shall, based on an outline
and recommendation of the scope of additional work, obtain Board approval to negotiate
with the same firm for additional services related to other phases of the project.
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.
G. Specialized Services.
1. In the event that specialized professional services are
required, where it is determined that only one (1) qualified firm can best perform the
services for a specific project for professional fees estimated to be in an amount greater
than $50,000, the Staff Screening Committee will negotiate a Professional Design
Service Agreement or Professional Consultant Service Agreement, make
recommendations to the E & 0 or other Standing Committee, and upon action by such
Committee, present it to the Board of Directors for approval.
2. The basis of selection of the specialized firm or individual
under Subparagraph G(1) above, along with the negotiated fee, shall be presented to
the Board of Directors for consideration.
H. Agreement for Services.
1. Upon approval by the Board of Directors of a negotiated
agreement for professional services, a contract shall be executed in a form approved by
the General Counsel.
Resolution No. OCSD 04-08 23 of 36
following terms:
2. The contract shall include, but not be limited, to the
(i) A statement on the scope of the project.
(ii) The basis and individual elements of the fees.
(iii) The basis for payment to the firm.
(iv) The time limits in which the services must be
performed.·
(v) Provisions for fee adjustments, should there be
changes in the scope of work.
(vi) If it is determined by the Standing Committee that
OCSD 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
Standing Committee.
(vii) For projects exceeding $50,000 in fees or in other
cases, as determined by OCSD, errors and
omissions insurance in an amount recommended
by the General Counsel or OCSD's Risk Manager
(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.
(viii) For projects that involve 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 I professional liability insurance.
I. Conflict of Interest.
1. OCSD maintains a Conflict of Interest Code pursuant to
California Government Code Sections 87100 et seq., which governs the activities and
performance of duties of its Directors, officers, employees, or agents in the conduct of
project work for OCSD.
Resolution No. OCSD 04-08 24 of 36
2. No Director, officer, employee, or agent of a Professional
Design Consultant under contract with OCSD 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 OCSD. Acceptance of food and refreshments of a 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 $340, or the amount as fixed
by California 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 OCSD's Conflict of
Interest Code; and provided further, that any Director, officer, employee, or agent, as a
designated employee under OCSD's Conflict of Interest Code, shall report any amount
of gifts on his I her annual Statement of Economic Interests, as required by said Code.
3. Any firm seeking selection under these procedures that
violates OCSD's Conflict of Interest Code shall be automatically disqualified.
4. Any firm solicited to violate the code must report said
solicitation to the Board of Directors or it will be automatically disqualified.
Section 5.09: 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 OCSD major capital projects are as
follows:
A. For any project, if the engineer's estimate for the construction
contract, as provided by the Director of Engineering or OCSD's consulting design
engineer, is greater than the approved construction budget for the project, the Director of
Engineering shall submit the project to the E & 0 Committee for recommendation, and
based thereon, to the Board of Directors for approval of the Plans and Specifications.
B. For any project, if the engineer's estimate for the construction
contract, as provided by the Director of Engineering or OCSD's consulting design
engineer is equal to or less than the approved construction budget for the project, the
Director of Engineering shall submit the plans and specifications to the Board of
Directors for approval, and thereafter 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, as provided for in Article VI.
Resolution No. OCSD 04-08 25 of 36
ARTICLE VI
PUBLIC WORKS CONSTRUCTION CONTRACTS
Section 6.01 : 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 OCSD, in an
amount greater than $35,000, as per California Public Contract Code Sections 20783 et
seq.
Section 6.02: Public Works: Bidding Required.
When the expenditure required for a public works construction project exceeds
$35,000, it shall be contracted for and let to the lowest responsive and responsible
bidder, in accordance with the provisions of California Public Contract Code Section
20783.
Section 6.03: Bidding Procedure: Public Works Construction
Greater Than $35,000.
Procedures for soliciting bids and awarding contracts for public works projects for
more than $35,000 shall be in accordance with applicable provisions of California Public
Contract 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, General
and Special Provisions may be secured, and the time and place for receiving and
opening sealed bids.
1. Published Notice. Pursuant to California Public Contract
Code Section 20783, 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 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 jurisdictional boundaries of the District.
2. Bidders' List. The District may also solicit sealed bids
from all qualified, responsible, prospective suppliers whose names are on a Bidders' List
that may be maintained by OCSD.
B. Bidder's Security. When deemed necessary by the Purchasing
Division, a bidder's security may be prescribed in the Contract Specifications and in the
public Notice Inviting Bids. Bidders shall be entitled to the return of the bid security
upon full execution by the successful bidder of an awarded contract by OCSD. A
successful bidder may forfeit its bid security upon refusal or failure to execute the
Resolution No. OCSD 04-08 26 of 36
Contract within the prescribed time after the Notice of Award of Contract has been
delivered to the bidder, unless OCSD is responsible for the delay in the prescribed time.
The Board of Directors may, on the 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 OCSD, 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 I Purchasing Manager, or their designee, or the
Secretary of the Board of Directors, as identified in the bid document, and shall be
identified as a bid on the envelope. Bids shall be opened in public, at the time and
place stated in the public notice. A tabulation of all bids received shall be available for
public inspection during regular business hours for a period of not less than thirty (30)
calendar days after the bid opening.
D. Bid Equal or Less Than Construction Budget. For any project,
upon receipt of bids for 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 may award a contract.
E. Bid Greater Than Construction Budget. For any project, upon
receipt of bids for construction, if the lowest responsive bid of a responsible bidder is
greater than the approved construction budget for the project, Staff shall present the bid
and a recommendation to the E & 0 Committee for review and recommendation to the
Board of Directors.
F. Rejection of Bids. In its discretion, the Board of Directors may
reject any and all bids presented and re-advertise 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/Sths) vote, may declare that the work can be performed more economically by force
account, if in accordance with applicable provisions of California Public Contract Code,
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.
G. Tie Bids. If two (2) 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 re-advertising 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.
H. One Bid. When only one bid is received in response to a Notice
Inviting Bids (NIB), the bid may be considered and accepted if a determination is made
that (a) the specifications used in the NIB were not unduly restrictive, (b) the required
competition was solicited and it could have been reasonably assumed that more than
one bid would have been submitted, (c) the price is reasonable, (d) the bid is otherwise
in accordance with the NIB, and (e) all processes and procedures have been followed in
accordance with the Public Contract Code.
Resolution No. OCSD 04-08 27 of 36
I. No Bids. If no bids are received, OCSD may have the work done
by force account, may re-advertise for bids pursuant to the procedures herein, or may
select a contractor by negotiation.
J. Emergencies. Whenever an emergency arises which is, or may
be, a threat to the continued operation of the wastewater facilities, support facilities, and
I or administrative facilities operated by OCSD, 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 Contract 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 Contract Code Section 22050. In such
event, the General Manager shall advise the OCSD Chair and I or Vice Chair, as
appropriate, of the action taken, and such action shall be confirmed by a four-fifths
(4/5ths} vote of the Board of Directors at its next regular meeting.
K. 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 OCSD. The form and amount of the Bond shall be described in the Notice Inviting
Bids, or in the Contract Specifications. Original Bonds for public works construction
contracts shall be kept in the official OCSD file which is maintained by the Board
Secretary.
L. Cost Records. Cost records shall be kept in the manner provided
in Sections 4000 to 4007 inclusive, of the California Government Code.
Section 6.04: Public Works Projects
A. Close-Out Agreement.
The approval and execution of an original Close-Out Agreement shall be
made by the General Manager.
B. Notice of Completion.
The approval and execution of an original Notice of Completion shall be
made in accordance with the following delegations of authority:
Authorized Authority Authorized Action
Director of Engineering Authority to approve and execute all or
Purchasing Notices of Completion.
Resolution No. OCSD 04-08 28 of 36
C. Time Extension to Public Works Contract.
The approval and execution of an original Time Extension to Construction
Contract shall be made in accordance with the following delegations of authority:
Authorized Authority
General Manager
Resolution No. OCSD 04-08
Authorized Action
Authority to approve and execute
construction contract time extensions.
29 of 36
ARTICLE VII
AWARD AUTHORIZATION
7.01 AGREEMENTS AMENDMENTS & CHANGE ORDERS
A. Agreements
B. Amendments & Change Orders
C. Amendments & Change Orders to Existing
Agreements
7.02 FACILITIES ENGINEERING PROJECTS
A. Task Orders
B. Amendments
Resolution No. OCSD 04-08 30 of 36
Section 7 .01: ALL AGREEMENTS AMENDMENTS & CHANGE
ORDERS
This Section 7.01 applies to all Agreements, Amendments, and Change
Orders entered into by the District.
A. Agreements
The award and execution of an Agreement on behalf of OCSD, shall be made in
accordance with the following delegations of authority:
"Delegated Authorized
Authority" Authorized Action
Staff Level C Authorization to approve budgeted
purchases less than or equal to $2,000.
Staff Level B Authorization to approve budgeted
purchases from $2,001 through $5,000.
Staff Level A Authorization to approve budgeted
purchases from $5,001 through $10,000.
Division Manager Authorization to approve budgeted
purchases from $10,001 through $25,000.
Department Director Authorization to approve budgeted
purchases from $25,001 through $50,000.
General Manager Authorization to review and approve
budgeted purchases between $50,001 and
an amount not to exceed $100,000. Items
to be reported to the Board of Directors on a
quarterly basis.
Assistant General Manager Authorization to review and approve
budgeted purchases between $50,001 and
an amount not to exceed $100,000. Items
to be reported to the Board of Directors on a
quarterly basis.
Standing Committees Authorization to approve purchases over
$100,000 to $200,000, with the exception of
pre-approved purchases pursuant to
Section 4.03 and emergency items pursuant
to Section 4.4 herein. In approving
purchase agreements, each standing
committee shall set a maximum aggregate
contingency amount for all amendment and
change orders. The maximum aggregate
Resolution No. OCSD 04-08 31 of 36
Board of Directors
contingency amount shall be no higher than
fifty percent (50%) of the Agreement
amount.
Authorization to approve purchases over
$200,000, with the exception of pre-
approved purchases pursuant to Section
4.03 and emergency items pursuant to
Section 4.4 herein.
B. Amendments and Change Orders:
The award and execution of amendments and change orders to Agreements,
on behalf of OCSD shall be made in accordance with the following:
Authorized Authority
Department Head
General Manager
Board of Directors
Resolution No. OCSD 04-08
Authorized Action
Authorization to make recommendation to
the General Manager.
Review recommendation of Department
Head and approve amendments provided
that the total contract shall not exceed
$100,000 (includes original contract and all
amendments). General Manager shall be
authorized to approve all amendments for
chemical contracts, unless contract unit
price has been changed from original Board
award. If the original chemical contract
was approved in the budget pre-approval
process, a unit price increase exceeding the
unit price awarded in the budget pre-
approval year would require Board
approval.
Contracts awarded in the pre-approval
process based upon a not to exceed
amount, not unit price, may be increased up
to the amount pre-approved in the budget
year the contract was awarded.
The General Manager shall manage the
expenditure of all approved contingency
funds in connection with all amendments
and change orders approved by the Board,
the standing committees, and the General
Manager.
Receive recommendations of General
Manager, approve all amendments and
32 of 36
change orders that exceed the maximum
aggregate amounts established at the time
that original Agreements are approved.
C. Change Orders to Existing Public Works Agreements
This subsection (C) shall apply to "existing public works agreements" from
January 2007 to July 1, 2007. Thereafter, existing agreements shall be governed by the
other provisions of this resolution. For purposes of this subsection (C), the term
"existing public works agreements" shall mean public works agreements approved prior
to the effective date of this resolution.
The award and execution of a Public Works Agreement Change Order
shall be made in accordance with the following delegations of authority:
Authorized Authority
General Manager
E & 0 Committee
Resolution No. OCSD 04-08
Authorized Action
Receive recommendation of the Department
Head and approve contract changes in an
amount up to $100,000 per Public Works
agreement. When the total combined value
of all Change Orders approved by the
General Manager, the E&O Committee and
I or Board of Directors equals or exceeds
$100,000, the General Manager's
authorization limit has been satisfied. Note
that this is the total amount of Change
Order additions (not net amount of change
order).
Total cumulative amount for all Change
Order additions not to exceed 5% of the
original contract amount or $100,000,
whichever is less.
Receive recommendation of the General
Manager and approve Public Works
agreement changes from $100,001 through
$200,000 per Public Works agreement.
When the total combined value of all
Change Orders approved by the General
Manager, the E&O Committee and I or
Board of Directors equals or exceeds
$200,000, the E&O's authorization limit has
been satisfied. Note that this is the total
amount of Change Order additions (not net
amount of Change Order).
Total cumulative amount for all Change
Order additions not to exceed 10% of the
33 of 36
Board of Directors
original contract amount or $200,000,
whichever is less.
Approve Change Order additions in
amounts over 10% of the original contract
amount, or greater than $200,000.
Section 7 .02: TASK ORDERS FOR FACILITIES ENGINEERING
PROJECTS:
A. Task Orders
The award and execution of a Task Order shall be made in accordance with the
following Delegation of Authority:
Authorized Authority
Director of Engineering
B. Amendments
Authorized Action
Authorization to evaluate proposals and
execute a Task Order up to $50,000.
The award and execution of an amendment to an issued Task Order shall be
made in accordance with the following Delegation of Authority:
Authorized Authority Authorized Action
Director of Engineering Authorization to negotiate amendments and
make recommendations to the General
Manager.
General Manager Receive recommendation of DOE and
approve each amendment to the Task
Order in an amount up to $50,000. When
the total combined value of the Task Order
and all amendments equals or exceeds
$100,000, the General Manager's
amendment authorization limit has been
satisfied.
Resolution No. OCSD 04-08 34 of 36
ARTICLE VIII
TRAINING, MEETINGS AND RELATED TRAVEL
EXPENDITURES
Section 8.01: Purpose and Scope.
This Article sets forth the procedures and scope of delegated authority by which
OCSD employees are authorized to incur expenses for budget-approved meetings and
training in furtherance of OCSD business.
Section 8.02: General.
A. Training or meetings exceeding $500 will be itemized, as well as
possible, in the approved budget. It is recognized that some meetings and training
cannot be pre-planned during the budget process.
B. All out-of-country travel (excluding Canada and Mexico) requires
approval by the Board of Directors.
C. Training or meetings requests exceeding $2,000 will be approved
by the Department Director.
D. Training or meetings requests less than $2,000 will be approved
by the Division Manager.
E. Established approvals must be received prior to arrangements for
meetings or training being made.
Section 8.03: Policies and Procedures.
All policies and procedures governing training or meetings, such as the use of
OCSD forms and justification, will be followed.
Resolution No. OCSD 04-08 35 of 36
..
ARTICLE IX
MISCELLANEOUS
Section 9.01: 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 9.02: 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 9.03: Effective Date.
This Resolution No. OCSD 06-26 shall take effect January 1, 2007, upon
adoption by the Board of Directors.
Section 9.04: Repeal of Prior Resolution.
Resolution No. OCSD 04-08 is hereby repealed in its entirety.
PASSED AND ADOPTED at a regular meeting of the Board of Directors h~ld .. :. · r ,-r .
November 15, 2006. · ·.. · "' .. : · J
r . _..:. ·'~ '
Resolution No. OCSD 04-08 36 of 36