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HomeMy WebLinkAbout03-11-2015 Administration Committee Agenda Orange County Sanitation District Wednesday, March 11, 2015 Regular Meeting of the 5:30 P.M. Administration Committee - Administration Building Board Room 10844 Ellis Avenue Fountain Valley, CA 714 593-7433 AGENDA PLEDGE OF ALLEGIANCE: DECLARATION OF QUORUM: PUBLIC COMMENTS: If you wish to speak, please complete a Speaker's Form and give it to the Clerk of the Board. Speakers are requested to limit comments to three minutes. REPORTS: The Committee Chair and the General Manager may present verbal reports on miscellaneous matters of general interest to the Committee Members. These reports are for information only and require no action by the Committee. REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES: CONSENT CALENDAR: 1. Approve Minutes of the February 11, 2015, Administration Committee Meeting. 2. Recommend to the Board of Directors to: Approve the Senior Human Resources Analyst Lending Agreement between Orange County Sanitation District (OCSD) and Costa Mesa Sanitary District (CMSD), to contract an OCSD Senior Human Resources Analyst as the Interim Human Resources Manager from March 21, 2015 through June 30, 2015, as a workforce development opportunity. owl 1/15 Administration committee Agenda Page 1 d 3 NON-CONSENT CALENDAR: 3. Recommend to the Board of Directors to: A. Introduce Ordinance No. OCSD-47, entitled "An Ordinance of the Board of Directors of the Orange County Sanitation District, Establishing Requirements and Procedures for the Purchase of Goods, Services, and Public Works Projects' for first reading at the March 2015 Board meeting." And B. Motion to read Ordinance No. OCSD47 by title only and waive reading of said entire Ordinance on March 25, 2015; and C. Set April 22, 2015, as the date for the second reading and adoption of Ordinance No. OCSD47; and D. Direct the Clerk of the Board to publish summaries of the Ordinance as required by law. INFORMATION ITEMS: 4. Status of 2015-16 Insurance Renewals 5. FY 2015-16 District Budget Update 6. Workforce Planning CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: ADJOURNMENT: The next Administration Committee meeting is scheduled for Wednesday, April 8, 2015 at 5:30 p.m. 03/11/15 Administration Committee Agenda Page 2 of 3 Accommodations for the Disabled: Meeting Rooms are wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Clerk of the Board's office at (714)593-7433 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2,this agenda has been posted outside the main gate of the Sanitation District's Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all,or a majority of the Board of Directors,are available for public inspection in the office of the Clerk of the Board. NOTICE TO DIRECTORS: To place items on the agenda for the Committee Meeting, items must be submitted to the Clerk of the Board 14 days before the meeting. Kelly A. Lore Acting Clerk of the Board (714)593-7433 klore(c4ocsd.com For any questions on the agenda,Committee members may contact staff at: General Manager James Herberg (714)593-7300 iherbem(rpocsd.com Assistant General Manager Bob Ghirelli (714)593-7400 rohimili(diocsd.com Director of Finance and Lorenzo Tyner (714)593-7550 ItvnentDocsd.com Administrative Services 03/11/15 Administration Committee Agenda Page 3 of 3 ITEM NO. 1 MINUTES OF THE REGULAR MEETING OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday, February 11, 2015, at 5:30 P.M. A regular meeting of the Administration Committee of the Orange County Sanitation District was held on February 11, 2015, at 5:34 p.m., in the Sanitation District's Administration Building. Director Jim Ferryman led the Flag Salute. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: John Withers, Chair Jim Herberg, General Manager Keith Curry, Vice-Chair Bob Ghirelli, Assistant General Manager David Benavides Lorenzo Tyner, Director of Finance Steven Choi & Administrative Services Tyler Diep Rob Thompson, Director of Engineering James Ferryman Kelly Lore, Acting Clerk of the Board Jim Katapodis Mike White Peter Kim Jennifer Cabral Greg Mills Norbert Gaia Glenn Parker Al Garcia Tom Beamish, Board Chair John Nielsen, Board Vice-Chair OTHERS PRESENT: Brad Hogin, General Counsel COMMITTEE MEMBERS ABSENT: Teresa Smith PUBLIC COMMENTS: None. REPORT OF COMMITTEE CHAIR: Committee Chair Withers did not provide a report. REPORT OF GENERAL MANAGER: General Manager, Jim Herberg, announced the informational presentations to the Committees this month will focus on the CIP and next month will be Workforce 02/11/2015 Administration Committee Minutes Page 1 of 3 Planning. He also announced the date of the next New Board Orientation will be held on March 12, 2015 at 3:00 p.m. and that there will be two Special Director Cruises on the Nerissa on March 17 & March 19 from 8:00 a.m. to noon. REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES: Director of Finance and Administrative Services, Lorenzo Tyner, did not provide a report. CONSENT CALENDAR: 1. MOVED, SECONDED and DULY CARRIED TO: Approve Minutes of the December 10, 2014, Administration Committee Meeting. AYES: Beamish, Choi, Curry, Diep, Ferryman, Katapodis, Kim, Nielsen, and Withers NOES: None ABSTENTIONS: None ABSENT: Benavides, Mills, Parker and Smith 2. MOVED, SECONDED and DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file Orange County Sanitation District Second Quarter Financial Report for the period ended December 31, 2014. AYES: Beamish, Choi, Curry, Diep, Ferryman, Katapodis, Nielsen, and Withers NOES: None ABSTENTIONS: Kim ABSENT: Benavides, Mills, Parker and Smith Director Parker arrived at the meeting at 5:35 p.m. Director Benavides arrived at the meeting at 5:42 p.m Director Mills arrived at the meeting at 5:45 p.m. NON-CONSENT CALENDAR Mike White provided an informative PowerPoint presentation regarding the FY 2015-16 budget assumptions. 02/11/2015 Administration Committee Minutes Page 2 of 3 3. MOVED, SECONDED and DULY CARRIED TO: Recommend to the Board of Directors to: Approve the FY 2015-16 budget assumptions and direct staff to incorporate these parameters in preparing the FY 2015-16 budget update. AYES: Beamish, Benavides, Choi, Curry, Diep, Ferryman, Katapodis, Kim, Mills, Nielsen, Parker, and Withers NOES: None ABSTENTIONS: None ABSENT: Smith Director Diep left the meeting at 5:53 p.m. Director Benavides left the meeting at 6:05 p.m. INFORMATION ITEMS: 4. Capital Improvement Projects Overview Director of Engineering, Rob Thompson, provided an informational PowerPoint presentation on the Capital Improvement Program. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: ADJOURNMENT: Committee Chair Withers declared the meeting adjourned at 6:09 p.m., to the next regularly scheduled meeting of March 11, 2015 at 5:30 p.m. Submitted by: Kelly A. Lore Acting Clerk of the Board 02/11/2015 Administration Committee Minutes Page 3 of 3 ADMINISTRATION COMMITTEE N1'1g/15oate T1.11111. 03/113/25/15 AGENDA REPORT Item Number Item Number z Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Robert P. Ghirelli, Assistant General Manager SUBJECT: WORKFORCE DEVELOPMENT - COSTA MESA SANITARY DISTRICT EXTENSION OF INTERIM HUMAN RESOURCES MANAGER CONTRACT GENERAL MANAGER'S RECOMMENDATION Approve the Senior Human Resources Analyst Lending Agreement between Orange County Sanitation District (OCSD) and Costa Mesa Sanitary District (CMSD), to contract an OCSD Senior Human Resources Analyst as the Interim Human Resources Manager from March 21, 2015 through June 30, 2015, as a workforce development opportunity. SUMMARY On September 24, 2014, the OCSD Board of Directors authorized the contract of an OCSD Senior Human Resources Analyst as the Interim Human Resources Manager to the Costa Mesa Sanitary District for a period of up to six (6) months. The resulting contract began on October 20, 2015 and is set to expire on March 20, 2015. Recently, CMSD requested an extension of the contract through June 30, 2015. OCSD's Assistant General Manager and CMSD's General Manager have consulted, and the extension is mutually supported. An extension would continue to provide a qualified individual from OCSD to assist CMSD in strengthening their human resources function and coach and mentor the administrative assistant currently supporting the function. In addition, it would provide an extended workforce development opportunity to the Senior Human Resources Analyst. The temporary nature of the contract is intended to fill the gap at CMSD until the salary and benefits cost of a full-time employee (FTE) can be budgeted by CMSD through its regular annual budget process. CMSD's annual budget, with the addition of the FTE, is anticipated to become effective July 1, 2015. PRIOR COMMITTEE/BOARD ACTIONS On September 24, 2014, the OCSD Board of Directors authorized OCSD to enter into contract with CMSD for a period of up to six (6) months. Page 1 of 2 ADDITIONAL INFORMATION The assignment to CMSD is a leadership development opportunity that will provide the OCSD Senior Human Resources Analyst with access to a professional growth assignment that includes the oversight of an agency human resources function with responsibilities across a wide spectrum of human resources programs. It also provides for additional developmental opportunities that benefit both agencies; OCSD is able to develop staff externally and transfer that learning back to OCSD, and CMSD is able to fill a leadership void and capitalize on the diversity of OCSD human resources programs. In turn, existing OCSD employees, both inside and outside of human resources will have access to development opportunities by assuming the interim vacant higher-level duties and responsibilities ("stretch" assignments). Human Resources Management consulted with General Counsel to ensure that all legal issues were considered and addressed prior to presenting this opportunity to the Board of Directors. Two specific issues raised were the impact on risk and remuneration. 1. In this contractual relationship, OCSD recognizes associated exposures like worker's compensation, employment practices liability and general liability are present and will be addressed through the indemnification of OCSD by the CMSD. In addition, the workers compensation liability will be transferred to the CMSD for the term of the contact. The practice of contractually transferring such risks is commonplace in both public and private settings. This approach also assures that exposures and liabilities are properly managed. 2. To ensure that the OCSD employee contracted to the CMSD continues to receive the full salary, benefits and retirement funding, OCSD will invoice the CMSD on a bi- weekly basis to recover the full costs of the contracted employee. This will ensure the opportunity does not raise concerns regarding the gift of public funds. BUDGET/PURCHASING ORDINANCE COMPLIANCE N/A ATTACHMENT The following attachment(s) maybe viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Draft Senior Human Resources Analyst Lending Agreement • Existing Senior Human Resources Analyst Lending agreement, dated October 15, 2014 Page 2 of 2 Return to Mende Report OCSD-CMSD Lending Agreement Page 1 of 5 SENIOR HUMAN RESOURCES ANALYST LENDING AGREEMENT This Agreement is made this_day of Much 2015,by and between Orange County Sanitation District,a special district, (hereinafter, "OCSD") with Costa Mesa Sanitary District, a special district, (hereinafter, "CMSD"). A. CMSD is a special district formed under the Sanitary District Act of 1923 (Health& Safety Code §§ 6400 et seq.).The CMSD boundaries encompass all of the City of Costa Mesa and portions of Newport Beach and unincorporated Orange County. The CMSD provides wastewater collection and transmission to Orange County Sanitation District facilities for treatment and disposal; B. OCSD is a special district formed under the County Sanitation District Act of 1939 (Health&Safety Code §§4700 et seq.)that provides wastewater collection,treatment,and disposal services for central and northwest Orange County. C. CMSD and OCSD previously entered into an agreement wherein OCSD assigned an OCSD senior human resources analyst("HR Analyst")to serve as the interim human resources manager for CMSD('Position")for six(6)months as a workforce development opportunity; D. The workforce development opportunity arrangement benefitted both CMSD and OCSD; E. CMSD requested to extend the terms of the Agreement through June 30,2015,to which OCSD was amenable;and F. The purpose of this Agreement is to set forth the terms and conditions governing the understanding between the Parties. THE PARTIES AGREE AS FOLLOWS: I. GENERAL TERMS A. This Agreement shall be effective from March 21,2015 through June 30,2015,unless terminated earlier as provided below. B. Either parry may terminate this Agreement without cause for any reason at any time upon giving at least thirty(30)days prior written notice to the other party. Such notice shall state the termination date. C. Either Party may immediately terminate this Agreement for cause including,but not limited to,the failure of the other Party to satisfy its obligations under this Agreement. D. In the event of termination of this Agreement,HR Analyst shall immediately cease all activities in the Position and return to OCSD. Additionally,any payments owed by either party to the other will immediately become due and outstanding. E. In no event shall HR Analyst be considered an employee of CMSD.HR Analyst shall remain an employee of OCSD. Return to Aaenda Report OCSD-CMSD Lending Agreement Page 2 of 5 F. Both Parries agree not to subcontract, assign,or otherwise transfer the Agreement or any part of the services to be performed under this Agreement without prior written consent and approval from the other Party. IL CMSD'S RIGHTS AND RESPONSIBILITIES A. CMSD shall comply with all applicable local, state, and federal labor laws as they apply to HR Analyst including,but not limited to the Fair Labor Standards Act,Family and Medical Leave Act,Americans with Disabilities Act,Title VII of the Civil Rights Act of 1964,California Labor Code,Fair Employment and Housing Act,and California Family Rights Act. B. CMSD shall reimburse OCSD at a rate of$73.30 per hour for all costs and payment of salary,wages,and benefits related to the continued employment of HR Analyst during the period HR Analyst works in the Position. This hourly rate includes,but is not limited to salary,wages, healthcare benefits,retirement contributions,other vested benefits,and all payroll taxes and withholdings applicable to such payments.Aside from the$73.30 per hour payment,CMSD shall not be responsible to pay any compensation to OCSD or HR Analyst for work performed for CMSD. C. OCSD shall be the sole and exclusive Party responsible for determining and paying HR Analyst's rate of pay and amount of salary,wages,and benefits payable to HR Analyst during the period HR Analyst works in the Position. D. CMSD shall notify OCSD of HR Analyst's use of medical leave, personal leave, compensatory time off, administrative leave or floating holiday to allow OCSD to make necessary adjustments to invoice amounts caused by HR Analyst's use of paid or unpaid leave. E. CMSD shall pay all invoices within thirty(30)days of invoice date. F. CMSD agrees not to enter into any contract or agreement with any other party, agency, entity,or person which may have the effect of obligating OCSD in any way,except with the prior written consent of OCSD. G. CMSD, at its sole cost and expense, shall obtain, keep in force, and maintain any policy of insurance necessary or appropriate to provide coverage, defense, or indemnification of OCSD as it relates to HR Analyst or HR Analyst's performance during the period HR Analyst works in the Position. H. CMSD agrees and covenants that they will maintain a work environment free from unlawful discrimination and/or harassment in compliance with federal and state law. I. CMSD will, at its sole cost,provide HR Analyst with Workers' Compensation coverage during the period HR Analyst works in the Position. Should CMSD fail to provide proper Workers' Compensation coverage to HR Analyst, CMSD agrees to defend, indemnify, and reimburse OCSD for any and all costs associated with Workers' Compensation coverage to HR Analyst during the period HR Analyst works in the Position. I. CMSD may remove HR Analyst from the Position in its sole discretion and for any reason. Should CMSD remove HR Analyst from the Position prior to the agreed termination Return to Meade Report OCSD-CMSD Lending Agreement Page 3 of 5 date, CMSD shall notify OCSD of the removal and this Agreement will be deemed terminated upon said notice. III. OCSD'S RIGHTS AND RESPONSIBILITIES A. OCSD shall assume sole and exclusive responsibility for the payment of HR Analyst's salary,wages,and benefits during the period HR Analyst works in the Position. OCSD shall be the sole and exclusive Party responsible for determining HR Analyst's rate of pay and amount of salary,wages,and benefits payable to HR Analyst during the period HR Analyst works in the Position. B. OCSD shall be solely responsible for the payment of any payroll taxes,withholdings,and any other insurance premiums and benefits of any kind owed to HR Analyst. C. OCSD shall invoice CMSD on a monthly basis for the hours HR Analyst works in the Position. D. OCSD shall be responsible for counseling and disciplining HR Analyst CMSD may provide input on HR Analyst performance to OCSD and may request OCSD take disciplinary action against HR Analyst OCSD shall maintain HR Analyst records,including but not limited to,personnel file,medical file,and discipline file. E. OCSD agrees that HR Analyst shall maintain information obtained at CMSD in confidence and shall indemnify,defend and hold CMSD harmless from and against all claims and damages arising from HR Analyst's breach of privacy laws arising from disclosure of information obtained from CMSD. IV. INDEMNIFICATION A. CMSD agrees to defend all claims of loss,indemnify and hold harmless OCSD and its officers,officials,agents,volunteers and employees from any and all claims for damage to property,personal injury,wrongful death or other losses and costs, including but not limited to reasonable attorney fees and defense costs,arising out of the negligent acts or omissions or willful misconduct of CMSD or its agents,employees,officers,officials,or volunteers in the performance of this Agreement. B. OCSD agrees to defend all claims of loss,indemnify and hold harmless CMSD and its officers,officials,agents,volunteers and employees from any and all claims for damage to property,personal injury,wrongful death or other losses and costs, including but not limited to reasonable attorney fees and defense costs,arising out of the negligent acts or omissions or willful misconduct of OCSD or its agents, employees,officers,officials,or volunteers in the performance of this Agreement. C. No employee benefits, except workers compensation,shall be available to HR Analyst from CMSD in connection with work performed under this Agreement. Except for the hourly fees paid by CMSD to OCSD as provided for in this Agreement,CMSD shall not pay salaries, wages,benefits,or any other form of compensation to OCSD or HR Analyst for performing services hereunder.CMSD is not responsible for any taxes or government withholdings on behalf of HR Analyst.OCSD agrees to defend,indemnity, and hold CMSD harmless against any claims for wages, salary,benefits,or withholdings, exempting only workers compensation benefits, Return to Mende Report OCSD-CMSD Lending Agreement Page 4 of 5 made by or on behalf of HR Analyst or any government entity for work performed under this Agreement. D. CMSD agrees to defend all claims of loss,indemnify,and hold harmless OCSD and its officers,officials,agents,volunteers and employees from any and all claims for damage to property,personal injury,wrongful death or other losses and costs, including but not limited to reasonable attorney fees and defense costs,arising out of the negligent acts or omissions or willful misconduct of the HR Analyst and relating to work performed by HR Analyst pursuant to this Agreement during the period HR Analyst works in the Position. E. CMSD hereby releases,waives,and discharges OCSD its officers,officials,agents, volunteers and employees from, and covenants not to sue OCSD for,any and all claims for damage to property,personal injury,wrongful death or other losses and costs,including but not limited to reasonable attorney fees and defense costs,arising out of the negligent acts or omissions or willful misconduct of the HR Analyst and relating to work performed by HR Analyst pursuant to this Agreement during the period HR Analyst works in the Position. F. In the event that it is determined by a Court or similarjudicial body that HR Analyst was subjected to discrimination,harassment,or retaliation at CMSD property or by a CMSD employee or official,under any local,state,or federal law during the time HR Analyst held the Position,CMSD shall pay the costs of OCSD's legal defense and fully indemnify OCSD against any and all claims asserted against OCSD or its officers,officials,agents,volunteers or employees per the terms of all indemnification provisions in this Agreement. G. CMSD and OCSD expressly agree that the foregoing Indemnification and Release provisions are intended to be as broad as possible and inclusive as is permitted by the laws of the State of California and that if any portion is held invalid, it is agreed that the balance shall, notwithstanding,continue in full legal force and effect. V. MISCELLANEOUS PROVISIONS A. Captions and headings in this Agreement are solely for the convenience of the parties,are not a part of this Agreement, and shall not be used to interpret or determine the validity of this Agreement or any of its provisions. B. This Agreement may be executed in any number of counterparts,each of which shall be deemed an original,but all such counterparts together shall constitute one and the same instrument. C. This Agreement is the entire agreement between the parties. No other agreements,oral or written,have been entered into with respect to the subject matter of this Agreement. D. The validity, interpretation,and performance of this Agreement shall be governed by and construed in accordance with the laws of the State of California. VI. EXECUTION By signing below, each of the following represent that they have authority to execute this Agreement and to bind the party on whose behalf their signature is made. Return b Meade Report OCSD-CMSD Lending Agreement Page 5 of 5 COSTA MESA SANITARY DISTRICT ORANGE COUNTY SANITATION DISTRICT By: By: Name: Name: Tom Beamish Title: Title: Rnard Chair Date: Date: ATTEST: By: By: Name: Name: Kelly Lore Title: Title: Arfng0erkofrhPRoard Date: Date: Return to Aaeoda Report SENIOR HUMAN RESOURCES ANALYST LENDING AGREEMENT This Agreement is made this Xtay,of October 2014,by and between Orange County Sanitation District, a special district,(hereinafter,"OCSD')with Costa Mesa Sanitary District,a special district,(hereinafter, "CMSD'j. A. CMSD is a special district formed under the Sanitary District Act of 1923(Health& Safety Cade§§6400 et seq.).The CMSD boundaries encompass all of the City of Costa Mean and portions of Newport Beach and unincorporated Orange County. The CMSD provides wastewater collection and transmission to Orange County Sanitation District facilities for treatment and disposal; B. OCSD is a special district formed under the County Sanitation District Act of 1939 (Health&Safety Code§§4700 et seq.)that provides wastewater collection,treatment,and disposal services for central and northwest Orange County. C. CMSD and OCSD desire to enter into an agreement wherein OCSD will assign an OCSD senior human resources analyst("HR Analyst")to serve as the interim human resources manager for CMSD("Position")for up to six(6)months as a workforce development opportunity; D. The workforce development opportunity arrangement will benefit both CMSD and OCSD;and E. The purpose of this Agreement is to set forth the terms and conditions governing the understanding between the Parties. THE PARTIES AGREE AS FOLLOWS: 1. GENERALTERMS A. This Agreement shall be effective from October 20,2014 through March 20,2015,unless terminated earlier as provided below. B. The beginning date and ending date ofthe Position shall be mutually agreed by the parties prior to the RR Analyst beginning in the Position. C. Either party may terminate this Agreement without cause for any reason at any time upon giving at least thirty(30)days prior written notice to the other party. Such notice shall state the termination date. D. Either Party may immediately terminate this Agreement for muse including,but not limited to,the failure of the other Party to satisfy its obligations under this Agreement. E. In the event of termination of this Agreement,HR Analyst shall immediately cease all activities in the Position and return to OCSD. Additionally,any payments owed by either party to the other will immediately become due and outstanding. Return to Mends Report OCSD-CMSD Lending Agreement Page 2 of 5 F. In no event shall HR Analyst be considered an employee of CMSD.HR Analyst shall remain an employee of OCSD. F. Both Parties agree not to subcontract,assign,or otherwise transfer the Agreement or any part of the services to be performed under this Agreement without prior written consent and approval from the other Party. If. CMSD'S RIGHTS AND RESPONSIBILITIES A. CMSD shall comply with all applicable local,state,and federal labor laws as they apply to HR Analyst including,but not limited to the Fair Labor Standards Act,Family and Medical Leave Act,Americans with Disabilities Act,Title VII of the Civil Rights Act of 1964,California Labor Code,Fair Employment and Housing Act,and California Family Rights Act. B. CMSD shall reimburse OCSD at a rate of$72 per hour for all costs and payment of salary,wages,and benefits related to the continued employment of HR Analyst during the period 14R Analyst works in the Position. This hourly rate includes,but is not limited to salary,wages, healthcare benefits,retirement contributions,other vested benefits,and all payroll fazes and withholdings applicable to such payments.Aside from the$72 per hour payment,CMSD shall not be responsible to pay any compensation in OCSD or FIR Analyst for work performed for CMSD. C. OCSD shall be the sole and exclusive Party responsible for determining and paying HR Analyst's rate of pay and amount of salary,wages,and benefits payable to HR Analyst during the period HR Analyst works in the Position. D. CMSD shall notify OCSD of HR Analyst's use of medical leave, personal leave, compensatory time off,administrative leave or Boating holiday in allow OCSD to make necessary adjustments in invoice amounts caused by HR Analyst's use of paid or unpaid leave. E. CMSD shall pay all invoices within thirty(30)days of invoice date- F. CMSD agrees not to enter into any contract or agreement with any other party, agency, entity,or person which may have the effect of obligating OCSD in any way,except with the prior written consent ofOCSD. G. CMSD,at its sole cost and expense,shall obtain,keep in force,and maintain any policy of insurance necessary or appropriate to provide coverage,defense,or indemnification of OCSD as it relates in HR Analyst or HR Analyst's performance during the period HR Analyst works in the Position. H. CMSD agrees and covenants that they will maintain a work environment free from unlawful discrimination and/or harassment in compliance with federal and state law. J. CMSD will,at its sole cast, provide HR Analyst with Workers' Compensation coverage during the period HR Analyst works in the Position. Should CMSD fail to provide proper Workers' Compensation coverage to HR Analyst,CMSD agrees to defend,indemnify,and reimburse OCSD for any and all costs associated with Workers'Compensation coverage to HR Analyst during the period HR Analyst works in the Position. Return to Aaerda Report OCSD-CMSD Lending Agreement Page 3 of 5 K. CMSD may remove HR Analyst from the Position in its sole discretion and for any reason. Should CMSD remove HR Analyst from the Position prior to the agreed termination date,CMSD shall notify OCSD of the removal and this Agreement will be deemed terminated upon said notice. III. OCSD'S RIGHTS AND RESPONSIBILITIES A. OCSD shall assume sole and exclusive responsibility for the payment of HR Analyst's salary,wages,and benefits during the period HR Analyst works in the Position. OCSD shall be the sole and exclusive Party responsible for determining HR Analyst's rate of pay and amount of salary,wages,and benefits payable to HR Analyst during the period HR Analyst works in the Position. B. OCSD shal I be solely responsible for the payment of any payroll taxes,withholdings,and any other insurance premiums and benefits of any kind owed to HR Analyst. C. OCSD shall invoice CMSD on a monthly basis for the hours HR Analyst works in the Position. D. OCSD shall be responsible for counseling and disciplining HR Analyst. CMSD may provide input on HR Analyst performance to OCSD and may request OCSD take disciplinary action against HR Analyst. OCSD shall maintain HR Analyst records,including but not limited to,personnel file,medical file,and discipline file- E. OCSD agrees that HR Analyst shall maintain information obtained at CMSD in confidence and shall indemnify,defend and hold CMSD harmless from and against all claims and damages wising from HR Analyst's breach of privacy laws arising from disclosure of information obtained from CMSD. IV. INDEMNIFICATION A. CMSD agrees to defend all claims of loss,indemnify and hold harmless OCSD and its officers,officials,agents,volunteers and employees from any and all claims for damage to property,personal injury,wrongful death or other losses and costs,including but not limited to reasonable attorney fees and defense costs,arising out of the negligent acts or omissions or willful misconduct ofCMSD or its agents,employees,officers,officials,or volunteers in the performance of this Agreement. B. OCSD agrees to defend all claims of loss,indemnify and hold harmless CMSD and its officers,officials,agents,volunteers and employees from any and all claims for damage to _ property,personal injury,wrongful death or other losses and costs,including but not limited to reasonable attorney fees and defense costs,arising out of the negligent acts or omissions or willful misconduct of OCSD or its agents,employees,officers,officials,or volunteers in the performance of this Agreement. C. No employee benefits,except workers compensation,shall be available to HR Analyst from CMSD in connection with worked performed under this Agreement. Except for the hourly fees paid by CMSD to OCSD as provided for in this Agreement,CMSD shall not pay salaries, wages,benefits,or any other form of compensation to OCSD or HR Analyst for performing services hereunder.CMSD is not responsible for any taxes or government withholdings on behalf Return to Aaentla Report OCSD-CMSD Lending Agreement Page 4 of 5 of 14R Analyst.OCSD agrees to defend,indemnity,and hold CMSD harmless against any claims for wages,salary,benefits,or withholdings,exempting only workers compensation benefits, made by or on behalf of HR Analyst or any government entity for work performed under this Agreement. C. CMSD agrees to defend all claims of loss, indemnify,and hold harmless OCSD and its officers,officials,agents,volunteers and employees from any and all claims for damage to property,personal injury,wrongful death or other losses and costs,including but not limited to reasonable attorney fees and defense costs,arising out of the negligent acts or omissions or willful misconduct of the HR Analyst and relating to work performed by HR Analyst pursuant to this Agreement during the period HR Analyst works in the Position. D. CMSD hereby releases,waives,and discharges OCSD its officers,officials,agents, volunteers and employees from,and covenants not to sue OCSD for,any and all claims for damage to property,personal injury,wrongful death or other losses and costs,including but not limited to reasonable attorney fees and defense costs,arising out of the negligent acts or omissions or willful misconduct ofthe HR Analyst and relating to work performed by HR Analyst pursuant to this Agreement during the period HR Analyst works in the Position. E. In the event that it is determined by a Court or similar judicial body that HR Analyst was subjected to discrimination,harassment,or retaliation at CMSD property or by a CMSD employee or official,under any local,state,or federal law during the time HR Analyst held the Position,CMSD shall pay the costs of OCSD's legal defense and fully indemnify OCSD against any and all claims asserted against OCSD or its officers,officials,agents,volunteers or employees per the terms of all indemnification provisions in this Agreement. F. CMSD and OCSD expressly agree that the foregoing Indemnification and Release provisions are intended to be as broad as possible and inclusive as is permitted by the laws of the State of California and that if any portion is held invalid,it is agreed that the balance shall, notwithstanding,continue in full legal force and effect. V. MISCELLANEOUS PROVISIONS A. Captions and headings in this Agreement are solely for the convenience of the parties,are not a part of this Agreement,and shall not be used to interpret or determine the validity ofthis Agreement or any of its provisions. B. This Agreement may be executed in any number of counterparts,each of which shall be deemed an original,but all such counterparts together shall constitute one and the same instrument. C. This Agreement is the entire agreement between the parties. No other agreements,oral or written,have been entered into with respect to the subject matter of this Agreement. D. The validity,interpretation,and performance of this Agreement shall be governed by and construed in accordance with the laws of the State of California. V1. EXECUTION Return to Mends Report OCSD-CMSD Lending Agreement Page 5 of 5 By signing below,each of the following represent that they have authority to execute this Agreement and to bind the party on whose behalftheir signature is made. COSTA MESA SANITARY DISTRICT ORANGE COUNTY SANITATION DISTRICT By: ef,-�70 N Name: Scott Carroll Name: lames D.Herberg Title: General Manager Title: General Manager Date: Lf)" 13• N Date: /) 7—a/y ADMINISTRATION COMMITTEE Meath,Date TOBd 011Dir. 03/11/15 03/25/15 AGENDA REPORT Item Number Item Number 3 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance &Administrative Services SUBJECT: Proposed Ordinance No. OCSD-47, Amending Ordinance No. OCSD-44 Establishing Requirements and Procedures for the Purchase of Goods, Services, and Public Works Projects. GENERAL MANAGER'S RECOMMENDATION Recommend to the Board of Directors to: A. Introduce Ordinance No. OCSD-47, entitled "An Ordinance of the Board of Directors of the Orange County Sanitation District, Establishing Requirements and Procedures for the Purchase of Goods, Services, and Public Works Projects" for first reading at the March 2015 Board meeting." And B. Motion to read Ordinance No. OCSD-47 by title only and waive reading of said entire Ordinance on March 25, 2015; and C. Set April 22, 2015, as the date for the second reading and adoption of Ordinance No. OCSD-47; and D. Direct the Clerk of the Board to publish summaries of the Ordinance as required by law. SUMMARY Ordinance No. OCSD-44 establishes the District's purchasing policies. After its adoption in November 2013, various circumstances have arisen, which revealed the need for additional clarification of procurement procedures and the addition of processes to better streamline the District's procurement processes. Proposed Ordinance No. OCSD-47 revises the District's purchasing policies to include the following: (1) Adds Master Contracts procedures for maintenance and repair services estimated to cost less than or equal to $100,000 (2) Adds an exception from the formal request for proposal process for small professional services contracts of$5,000 or less; Page 1 of 5 1050522.2 (3) Adds Master Contracts procedures for Professional Services less than $100,000; (4) Clarifies the procedures for handling price proposals for professional design services contracts consistent with the District's compliance with the little Brooks Act, Government Code section 4526; (5) The Master Contracts procedures for professional design services was increased from $100,000 to $200,000 and the maximum Master Contract amount increased from $250,000 to $400,000. There was no change in the designation of authority amounts, which establish when the General Manager may let a contract, versus a Standing Committee and/or the Board of Directors. (6) Adds an exception from the formal request for proposal process for small professional design services contracts of$5,000 or less; (7) Clarifies that construction projects costing $35,000 or less, or sewerage maintenance or repair projects not subject to the formal Public Works bidding procedures of Article 5 of the Ordinance, may be processed pursuant to the provisions of Article 2 of the Ordinance applicable to the procurement of goods and services; (6) Incorporated the definitions into a separate Article within the Ordinance rather than as an appendix; (8) Makes clarifications to the definitions of "Interested Parties," "Professional Services" and "Professional Design Services;" (9) Conforms various internal references within the Ordinance for consistency; and (10) Clarifies that the General Manager's authorization to approve and execute amendments to chemical contracts, does not apply if the Contract unit price has increased from the unit price approved by the Board, such that unit price increases in chemical contracts require Board approval. Clarifies that the General Manager is authorized to approve and execute amendments to chemical contracts where the unit price is unchanged or decreases. PRIOR COMMITTEE/BOARD ACTIONS November 20, 2013 — Board of Directors adopted Ordinance No. OCSD-44. October 23, 2013 — Board of Directors waived reading of the full text of Ordinance No. OCSD-44, introduced it and read it a first time by title only, approved bringing it back for second reading and adoption at its November 2013 meeting, and directed the Clerk to publish summaries as required by law. October 2013 — Operations Committee and Administration Committee both approved Ordinance No. OCSD-44 entitled "Establishing Requirements and Procedures for the Page 2 d 5 1050522.2 Purchase of Goods, Services, and Public Works Projects" for first reading at the October 2013 Board meeting. December 2012 - Board of Directors adopted Resolution No. OCSD 12-17, A Resolution of the Board of Directors of the Orange County Sanitation District Amending Section 4.09 Request for Proposal Procedure of Resolution No. OCSD 07-04 to Expand the Request for Proposal Procedure to Include the Purchase of Critical, Routine, or Recurring Goods or Services and to Define Best Value. June 2007 — Board of Directors adopted Resolution No. OCSD 07-13, A Resolution of the Board of Directors of the Orange County Sanitation District Establishing Policy for the Payment of Mandatory and Statutory Fees Greater than the Limits Established in Resolution No. OCSD 07-04 and Future Updates to the Delegation of Authority. February 2007 — Board of Directors adopted Resolution No. OCSD 07-04 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. ADDITIONAL INFORMATION 1. Master Contracts. Article 4 of Ordinance No. OCSD44 requires that professional design services less than or equal to $100,000 be processed pursuant to a Master Contract process where five or more firms are prequalified to propose on task orders during the prosecution or implementation of a District project, from design through bidding and construction management. The Master Contract with each prequalified firm does not exceed $250,000 per year, and work on a project is let through task orders that do not exceed $100,000 based on competitive proposals from the prequalified firms. The Master Contract not to exceed amount is increasing to $400,000 and task order amounts are increasing to $200,000. Additionally, District staff has determined that the Master Contract prequalification process would be useful in the procurement of Maintenance and Repair services, and Professional Services such as financial or Information Technology services, because the prequalified firms will have complied with the District's contracting requirements for the year in question, including the filing of insurance certificates, compliance safety ratings, amongst other requirements. Additionally, the District has encountered a few instances when repair services were required to be procured on an expedited basis because of the District's aging buildings and infrastructure. A Master Contract procedure provides a process for expediting smaller repair projects by letting a contract through task order bids from the prequalified firms. Thus, the proposed Ordinance authorizes the Master Contracts procedure for Maintenance and Repair projects of up to $200,000 and for Professional Services of up to $100,000. Page 3 of 5 1050522.2 2. Exceptions for Professional Services contracts of$5,000 or less. The revisions by the proposed Ordinance adds an exception to the formal request for proposals procedures for small projects costing $5,000 or less. These small contracts are more efficiently let by informal price quotes from a list of qualified service providers. 3. Clarification of little Brooks Act procedures for Professional Design Services contracts. Government Code section 4526 requires that contracts for professional design services be let to the highest ranked firm based on qualifications, not price. Although the courts have indicated that price may be considered in the procurement process, price may not be the predominant basis for letting these contracts. Professional design services include architectural, engineering, and construction project management services. Consequently, the District's process for procuring these services include a requirement for prospective firms to submit their price proposals in a separate sealed envelope, which are not opened until the highest qualified firm has been identified. If the District is not able to negotiate a contract with the highest qualified firm based on a reasonable fee, negotiations with the highest qualified firm stop. The price proposal of the second highest qualified firm is opened and negotiations with that firm commence. The process continues until a successful contract is negotiated. The proposed Ordinance clarifies the foregoing procedures that are employed by the District for Professional Design Services contracts. 4. Exceptions for Professional Design Services contracts of$5,000 or less. The revisions by the proposed Ordinance adds an exception to the formal request for proposals procedures for small projects costing $5,000 or less. 5. Clarification Regarding Projects Exempt from Formal Public Bidding. Under State Law, construction projects costing $35,000 or less, or sewerage maintenance or repair projects are not subject to the formal Public Works bidding procedures of Article 5 of the Ordinance. The proposed Ordinance clarifies that these projects exempt from formal public bidding must still be processed pursuant to the provisions of the Ordinance in Article 2 applicable to the procurement of goods and services, which still require some form of competitive bidding. 6. Definitions. (a) The proposed Ordinance incorporates the definitions into a separate Article within the ordinance rather than as an appendix. (b) In addition, the proposed Ordinance adds clarification to the definition of "Interested Parties" during the solicitation stage versus the award stage, and Page 4 of 5 1050522.2 "Professional Services" and 'Professional Design Services" based on the statutory definitions in the little Brooks Act. The revisions to Ordinance No. OCSD-44 are shown in redlines with the attached proposed Ordinance No. OCSD-47. CEQA N/A BUDGET/PURCHASING ORDINANCE COMPLIANCE Ordinance No. OCSD-47 does not affect the Districfs budget and reestablishes the delegation of authority for procurement of goods, services and public works contracts. Date of ADDroval Contract Amount Contingency ATTACHMENT The following attachment(s) maybe viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Proposed Ordinance No. OCSD-47 • Ordinance No. OCSD44 (redlined) Page 5 of 5 1050522.2 Return to Aaenda Report ORDINANCE NO. OCSD-47 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT ESTABLISHING REQUIREMENTS AND PROCEDURES FOR THE PURCHASE OF GOODS, SERVICES, AND PUBLIC WORKS PROJECTS; AND REPEALING ORDINANCE NO. OCSD-44 OCSD-47-1 IN2653.2 CONTENTS Article 1. General Provisions .......................................................................................5 Section 1.01. Purpose and Scope .......................................................................5 A. Purpose...........................................................................................5 B. Scope..............................................................................................5 Section1.02. Title................................................................................................5 Section 1.03. Definitions......................................................................................5 Section 1.04. Rules and Guidelines..................................................................... 5 Section 1.05. Budgeted Funds ............................................................................6 Section 1.06. The Purchasing Manager ..............................................................6 A. Duties..............................................................................................6 B. Requests for Procurement. .............................................................6 Section 1.07. Exceptions to Competitive Selection..............................................6 A. Sole Source Procurement. ..............................................................6 B. Emergency Procurement. ...............................................................6 Section 1.08. Evaluation Committees..................................................................7 Section 1.09. Severability....................................................................................7 Article 2. Goods and Services .....................................................................................7 Section 2.01. Purpose and Scope.......................................................................7 A. Purpose...........................................................................................7 B. Scope..............................................................................................7 Section 2.02. Selection Process..........................................................................8 A. Competitive Sealed Bids.................................................................8 B. Award..............................................................................................8 C. Equal Bids.......................................................................................8 Section 2.03. Exceptions.....................................................................................8 A. Small Procurements........................................................................8 B. Cooperative Purchases...................................................................9 C. Multi-Step Sealed Bidding...............................................................9 D. Competitive Sealed Proposals. .......................................................9 E. Critical Time-Sensitive Procurements. .......................................... 10 F. Renewals. ..................................................................................... 10 OCSD-47-2 IN2653.2 Return to Mende Report G. Sole Source and Emergency Procurements. ................................ 10 H. Master Contracts; Maintenance and Repair Services Less Than or Equal to $100,000............................................................ 10 Article 3. Professional Services................................................................................. 11 Section 3.01. Purpose and Scope..................................................................... 11 A. Purpose......................................................................................... 11 B. Scope............................................................................................ 11 Section 3.02. Selection Process........................................................................ 12 A. Request for Proposals................................................................... 12 B. Evaluation and Ranking of Proposals. .......................................... 12 C. Negotiation of Contract. ................................................................ 12 Section 3.03. Exceptions................................................................................... 12 A. Sole Source and Emergency Procurements. ................................ 12 B. Contractors Reporting to the Board............................................... 13 C. Procurements of$5,000 or less. ................................................... 13 D. Master Contracts; Professional Services Less Than or Equal to $100,000. .................................................................................. 13 Article 4. Professional Design Services..................................................................... 13 Section 4.01. Purpose and Scope..................................................................... 13 A. Purpose......................................................................................... 13 B. Scope............................................................................................ 13 Section 4.02. Selection Process........................................................................ 13 A. Competitive Selection. .................................................................. 13 B. Professional Design Services Greater Than $200,000. ................ 13 C. Master Contracts; Professional Design Services Less Than or Equal to $200,000..................................................................... 16 Section4.03. Exceptions................................................................................... 17 A. Sole Source and Emergency Procurements. ................................ 17 B. Continuation of Services. .............................................................. 17 C. Procurements of$5,000 or less. ................................................... 17 Article 5. Public Works Projects................................................................................. 18 Section 5.01. Purpose and Scope..................................................................... 18 A. Purpose......................................................................................... 18 B. Scope............................................................................................ 18 OCSD-47-3 IN2653.2 Section 5.02. Selection Process........................................................................ 18 A. Design-Bid-Build. .......................................................................... 18 B. Design-Build..................................................................................20 C. Prequalification..............................................................................20 Section 5.03. Exceptions...................................................................................21 A. Emergencies and Calamities. .......................................................21 B. Specification of Brand or Trade Name. .........................................22 Article6. Protests ......................................................................................................22 Section 6.01. Solicitation Protests.....................................................................22 Section 6.02. Award Protests ............................................................................23 Section 6.03. Delay in Award.............................................................................23 Section 6.04. Remedies.....................................................................................23 Section 6.05. Public Documents........................................................................24 Article 7. Delegation of Authority to Award Contracts................................................24 Section 7.01. Award Authorization.....................................................................24 A. Delegation by General Manager. ..................................................24 B. Original Contracts and Contingencies...........................................25 C. Amendments and Change Orders.................................................25 Section 7.02. Task Orders.................................................................................25 Section 7.03. Time Extensions to Public Works Projects ..................................26 Article8. Ethics..........................................................................................................26 Section 8.01. Unlawful Consideration Prohibited...............................................26 Section 8.02. Conflicts of Interest......................................................................26 A. Compliance with the Political Reform Act......................................26 B. Compliance with Government Code § 1090..................................27 C. Requirements Applicable to Consultants. .....................................27 Article9. Definitions...................................................................................................27 Article10. Miscellaneous............................................................................................. 30 Section 10.01. Noncompliance................................................................... 30 Section 10.02. Effective Date..................................................................... 30 Section 10.03. Repeal of Ordinance No. OCSD-44. .................................. 30 Section 10.04. Certification and Publication............................................... 31 OCSD-47-4 IN2653.2 Return to Mende Report NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District does hereby ORDAIN: Article 1. General Provisions Section 1.01. Purpose and Scope A. Purpose. This Ordinance is intended to: (1) Comply with certain provisions of state law requiring the District to adopt written purchasing procedures; (2) Ensure that the District complies with state law governing the award of Contracts for Goods, Services, and Public Works Projects; (3) Establish procedures to ensure that the District obtains quality goods and competent services at the best price and/or the best value; (4) Delegate certain spending authority to District employees in the interest of efficient administration; (5) Ensure that purchasing decisions are transparent for the public; and (6) Ensure that Contracts are awarded through a process that is fair to prospective Contractors and in the best interests of the District. B. Scope. This Ordinance governs the purchase of Goods, Services and the award of Contracts for Public Works Projects. Section 1.02. Title This Ordinance may be referred to as the Districfs "Purchasing Ordinance." Section 1.03. Definitions As used throughout this Ordinance, the terms set forth in Article 9 shall have the meanings as defined therein, unless the context in which they are used clearly requires a different meaning, or a different definition is prescribed for a particular Article or provision. Section 1.04. Rules and Guidelines The General Manager shall implement the requirements of this Ordinance through policies, rules, and guidelines governing the purchase of Goods and Services, and the award of Contracts for Public Works Projects. OCSD-47-5 IN2653.2 Section 1.05. Budgeted Funds No Contract for the purchase of Goods, Services, or Public Works Projects shall be awarded unless and until the General Manager identifies funds in the current budget that are allocated to the purchase. Section 1.06. The Purchasing Manager A. Duties. Consistent with the provisions of this Ordinance, the Purchasing Manager shall: (1) Procure, or supervise the procurement of, all Goods, Services, and Public Works Projects purchased by the District; and (2) Supervise and control inventories of supplies and materials. B. Requests for Procurement. When a Department desires to procure Goods and/or Services, the Department Director shall file a written Requisition, in advance, with the Purchasing Manager. The Requisition shall describe the Goods and/or Services to be acquired. Section 1.07. Exceptions to Competitive Selection Depending on the nature of the Contract and/or the circumstances, certain provisions of this Ordinance require that Contracts for Goods and/or Services be awarded based on Competitive Sealed Bids or Competitive Sealed Proposals. This Section 1.07 establishes certain general exceptions to competitive selection requirements for the procurement of Goods and Services. The exceptions set forth in this Section 1.07 do not apply to the award of Contracts for the construction of Public Works Projects. A. Sole Source Procurement. Notwithstanding any other provision of this Ordinance, a Contract for Goods and/or Services may be awarded based on Sole Source Procurement, without soliciting bids or proposals as might otherwise be required, if the General Manager or his designee determines in writing that it is in the best interest of the District to award the Contract because the Goods and/or Services are (1) of a unique nature based on their quality, durability, availability, fitness or qualifications for a particular use; or (2) only available from one source. B. Emergency Procurement. Notwithstanding any other provision of this Ordinance, a Contract for Goods and/or Services may be awarded through Negotiated Procurement, without soliciting bids or proposals as might otherwise be required, if the General Manager or his designee determines in writing that the District urgently needs the OCSD-47-6 IN2653.2 Return to Mende Report Goods and/or Services in order to respond effectively to an emergency. For purposes of this Section 1.07, emergency procurements are those purchases that are required to prevent immediate interruption or cessation of necessary services or to safeguard life, property, or the public health and welfare. In addition, emergency procurements as used in this Section also include critical time sensitive purchases where time is of the essence, and the District does not have sufficient time to solicit bids or proposals. For emergency procurements greater than $100,000, the General Manager shall obtain the concurrence of the Chair of the District's Board of Directors or, if the Chair is unavailable, the Vice Chair, and such action shall be ratified by the Board of Directors at its next regular meeting. Section 1.08. Evaluation Committees Evaluation committees convened in connection with procurements under this Ordinance shall generally be composed of District employees. In exceptional circumstances, however, the General Manager may appoint one or more persons not employed by the District to an evaluation committee if the General Manager determines that (1) evaluating proposals in connection with a particular procurement requires specialized expertise not available among District employees; (2) the procurement will impact another agency, and that agency desires to place a representative on the evaluation committee; or (3) it is otherwise in the District's interest to do so. Section 1.09. Severability If any provision of this Ordinance, or any application thereof to any person or circumstance, is held invalid, such invalidity shall not affect any other provision of this Ordinance or application to any person or circumstance which can be given effect without the invalid provision or application. The provisions of this Ordinance are declared to be severable. Article 2. Goods and Services Section 2.01. Purpose and Scope A. Purpose. California Government Code Sections 54202 et seq. requires the District to adopt written policies and procedures, including bidding requirements, governing the purchase of Goods and Services. This Article is intended to comply with Section 54202. B. Scope. The provisions of this Article 2 apply to Contracts for the purchase of Goods and Services other than Contracts for Professional Services (governed by Article 3), OCSD-47-7 IN2653.2 Professional Design Services (governed by Article 4), and Contracts for Public Works Projects (governed by Article 5). Section 2.02. Selection Process A. Competitive Sealed Bids. Subject to the exceptions set forth in Section 2.03, the award of Contracts for the purchase of Goods and Services shall be based on Competitive Sealed Bids. For each procurement, the Purchasing Manager shall: (1) Publish a Notice Inviting Bids that contains (a) a description of the Goods and/or Services required, (b) a description of the selection process, (c) bidder's security requirement, if applicable, (d) performance bond requirements, if applicable, and (a) such provisions, terms, and conditions, consistent with this Ordinance, that the Purchasing Manager determines are necessary, desirable, and/or advantageous to the District; (2) Open the bids publicly at the time and place designated in the Notice Inviting Bids, and record the amount of each bid; and (3) Determine whether the bids are responsive to the Notice Inviting Bids. B. Award. After the bids are opened, one of the following actions may be taken: (1)Award the Contract to the lowest Responsive and Responsible Bidder; (2) Reject any and all bids presented and/or re-advertise the bid; or (3) Declare that the Goods and/or Services may be acquired at a lower cost by negotiation in the open market and authorize the procurement in that manner. C. Equal Bids. If two or more Responsible Bidders submit the same lowest bid, the District may, in its discretion, accept either bid or a lower bid, if any, as may be obtained from one of the bidders through negotiation. Section 2.03. Exceptions A. Small Procurements. (1) Procurements of $5,000 or Less. Contracts subject to this Article 2 with an estimated value of $5,000 or less may be awarded without Competitive Sealed Bids if the Purchasing Manager determines that a Competitive Sealed Bids process would not result in a lower overall cost to the District. OCSD-47-8 IN2653.2 Return to Mende Report (2) Procurements of $50,000 or Less. Contracts subject to this Article 2 with an estimated value of $50,000 or less may be awarded by (a) soliciting at least three bids from identified vendors, and (b) awarding the Contract to the lowest Responsive and Responsible Bidder. If the Purchasing Manager cannot obtain at least three bids, the Contract may be awarded to the lowest Responsive and Responsible Bidder as long as the Purchasing Manager determines that the bid amount is fair and reasonable. (3) Piecemealing Prohibited. Procurements shall not be artificially divided into different individual Contracts so as to keep each Contract amount below one of the monetary thresholds set forth in this Part A. B. Cooperative Purchases. When another public agency or government purchasing cooperative organization has awarded a Contract for Goods and/or Services based on Competitive Sealed Bids or Competitive Sealed Proposals, and the agency or organization followed a process substantially similar to the process described in Section 2.02, the District may acquire Goods and/or Services under that Contract without obtaining Competitive Sealed Bids or Competitive Sealed Proposals. The District may enter into Contracts with other public agencies, government purchasing cooperative organizations within the United States, and/or Contractors for this purpose. C. Multi-Step Sealed Bidding. If the Purchasing Manager determines that it is impractical to initially prepare a description to support an award based on price, a process involving multi-step sealed bids may be utilized. The multi-step sealed bidding process involves (1) issuing an Invitation for Bids requesting the submission of un-priced offers; and (2) issuing a subsequent Invitation for Bids for priced offers from those vendors whose initial un-priced offers were deemed qualified under the criteria set forth in the initial Invitation for Bids. Award under this process shall be based on the lowest Responsive and Responsible Bidder. D. Competitive Sealed Proposals. If the Purchasing Manager determines in writing that the Competitive Sealed Bids procedure is not practical and/or not advantageous for the District in a particular case, one or more Contracts subject to this Article may be awarded based on Competitive Sealed Proposals. The Competitive Sealed Proposals process may be used (1) for Goods and/or Services that prove difficult to quantify or describe, where proposers are provided the opportunity to offer different approaches or solutions; and/or (2)for critical, routine or recurring goods or services that require consideration of the broadest possible range of competing services, products and materials available, fitness of purpose, performance reliability, standardization, life cycle costs, delivery timetables, reliable supply, support logistics, diversification of available sources and/or other similar factors in addition to the price in the award of these contracts. Award under this process shall be based OCSD-47-9 I0A2653.2 upon criteria that provide the best value for the District, wherein best value is not solely determined by price. E. Critical Time-Sensitive Procurements. The Purchasing Manager may purchase Goods and/or Services through Negotiated Procurement if the Purchasing Manager determines in writing that time is of the essence in the purchase of the Goods and/or Services. For critical time-sensitive procurements valued at more than $100,000, the General Manager shall obtain the concurrence of the Chair of the District's Board of Directors or, if the Chair is unavailable, the Vice Chair. F. Renewals. The Purchasing Manager may exercise any options to renew as may be included in existing Contracts without observing the bidding procedures prescribed in Section 2.02. G. Sole Source and Emergency Procurements. A Contract for the purchase of Goods and/or Services may be awarded without soliciting competitive bids if any of the exceptions set forth in Section 1.07 apply. H. Master Contracts: Maintenance and Repair Services Less Than or Equal to $100,000. The Purchasing Manager may purchase maintenance and repair Services estimated to cost less than or equal to $100,000 through the master contract procedures set forth below. (1) Request for Qualifications. If a master contract is let for maintenance and repair Services, then at least once every 3 years, the Purchasing Manager shall prepare and distribute a Request for Qualifications for the maintenance and repair Services required by the District. Each Request for Qualifications shall describe the selection criteria that will be used to determine whether suppliers or firms are eligible for the prequalified list. The Request for Qualifications shall require the following information, at a minimum, from proposers: (a) The firm's demonstrated competence and specialized expertise necessary to perform the type of Service needed; (b) The experience, training, and skills of the key personnel that will perform and manage the work for the District; (c) The firm's capacity and resources to perform the Services required within the specified period of time. The firm must demonstrate that it will provide a sufficient number of qualified staff, equipment, and facilities as applicable. OCSD-47-10 IN2653.2 Return to Mende Report (2) Evaluation Committee. The Purchasing Manager shall convene an evaluation committee to evaluate the responses to each Request for Qualifications. The Purchasing Manager shall chair the committee, and the Director of the Department requesting the Procurement shall appoint the remaining members. Each evaluation committee shall determine whether each supplier or firm has the demonstrated competence and qualifications to provide the Services necessary for the satisfactory performance of the Services required. (3) Lists. Based on the recommendations of the evaluation committee, with the concurrence of the Department Director, the Purchasing Manager shall establish a list of at least 3 prequalified Contractors. Each list shall be used for a maximum of 3 years. No later than 3 years after establishing a prequalified list, the Purchasing Manager may issue a new Request for Qualifications and establish a new list. (4) Master Contract. Master Contracts with firms on the prequalified list shall be awarded by the Board of Directors in the amount not to exceed the program budget approved by the Board of Directors. The original term of such Contracts shall be for 1 year, with an option to extend each Contract for up to 2 additional 1 year renewal periods. (5)Task Orders. The Department Director shall notify the Purchasing Manager when Services subject to this subsection 2.03(H) are required for a maintenance or repair project. Proposals shall be solicited from all the firms on the prequalified list and one of the firms shall be selected pursuant to the process set forth in Section 2.02. Individual Task Orders in an amount not to exceed $100,000 will be awarded for each project. Article 3. Professional Services Section 3.01. Purpose and Scope A. Purpose. This Article 3 is intended to ensure that the District retains Professional Services at fair and reasonable prices based on demonstrated competence and the professional qualifications necessary for the satisfactory performance of the services required. B. Scope. The provisions of this Article 3 apply to the award of Contracts for Professional Services and incidental services that members of a Professional Service fine, and those in their employ, may logically perform. The provisions of this Article 3 do not apply to the award of Contracts for Professional Design Services (governed by Article 4). OCSD-47-11 IN2653.2 Section 3.02. Selection Process Contracts for Professional Services shall be awarded pursuant to the following procedures: A. Request for Proposals. The Purchasing Manager shall prepare a Request for Proposals in consultation with the Director of the Department requesting the Procurement. The Purchasing Manager, with the concurrence of the Director of the Department requesting the Procurement, may select a limited number of Professional Service firms to receive the Request for Proposals. The Purchasing Manager may issue a Request for Qualifications to prospective Contractors as a means of identifying prospective recipients. The Purchasing Manager may publish notice of the Request for Proposals or Request for Qualifications. B. Evaluation and Ranking of Proposals. All responsive proposals shall be evaluated and ranked, from most qualified to least qualified, based on each firm's demonstrated competence and professional qualifications necessary for the satisfactory performance of the services required. The Purchasing Manager may establish a committee to conduct the evaluation. The Purchasing Manager or evaluation committee, if any, may discuss each proposal with its author to seek clarification or otherwise obtain relevant information. C. Negotiation of Contract. The Purchasing Manager shall negotiate a Contract with the firm deemed to be most qualified at a price that the Purchasing Manager, with the concurrence of the Director of the Department requesting the Procurement, deems to be fair and reasonable. If the Purchasing Manager determines that it is in the best interest of the District to enter into Contracts with two or more firms, the Purchasing Manager shall negotiate with the desired number of firms starting with the most qualified. The Purchasing Manager shall proceed down the list from most to least qualified until he or she has concluded negotiations with the desired number of firms at fair and reasonable prices. The District may, in its sole discretion, reject all proposals. Section 3.03. Exceptions A. Sole Source and Emergency Procurements. A Contract for Professional Services may be awarded without soliciting Competitive Sealed Proposals if the Purchasing Manager makes one of the determinations set forth in Section 1.07. OCSD-47-12 IN2653.2 Return to Mende Report B. Contractors Reporting to the Board. The provisions of this Article 3 shall not apply to the retention of Professional Service firms or individuals that are selected by the Board and report directly to the Board. For such Contracts, the Board shall determine the method of selection, consistent with the requirements of applicable law. C. Procurements of$5,000 or less. Contracts subject to this Article 3 with an estimated value of $5,000 or less may be awarded without following the Request for Proposal/Request for Qualifications process if the Purchasing Manager determines that a RFP/RFQ process would not result in a lower overall cost to the District. D. Master Contracts: Professional Services Less Than or Equal to $100,000. The Purchasing Manager may purchase Professional Services estimated to cost less than or equal to $100,000 through the master contract procedures set forth in Section 2.03(H), provided that individual task orders shall not exceed $100,000 for each project. Article 4. Professional Design Services Section 4.01. Purpose and Scope A. Purpose. This Article 4 is intended to ensure that the District retains Professional Design Services at fair and reasonable prices based on demonstrated competence and the professional qualifications necessary for the satisfactory performance of the services required. B. Scope. This Article 4 applies to the selection of Contractors for Professional Design Services. Section 4.02. Selection Process A. Competitive Selection. All Professional Design Services estimated to be greater than $200,000 shall be awarded based on Competitive Sealed Proposals. All Professional Design Services with an estimated value of $200,000 or less shall have a separate selection process based upon a master contract procedure whereby the District shall solicit Competitive Sealed Proposals and award one or more master contracts not to exceed $400,000 per year. B. Professional Design Services Greater Than $200,000. OCSD-47-13 IN2653.2 The requirements set forth in this subsection 4.02(B) shall apply to the purchase of Professional Design Services estimated to cost more than $200,000. (1)Annual List. Each Director of a Department that utilizes Professional Design Services shall file annually with the Purchasing Manager a list of specific disciplines for which Professional Design Services may be required. The Purchasing Manager may from time to time prepare and distribute a Request for Qualifications for the professional disciplines or project design services required by the District subject to this Part B. For each Request for Qualifications issued, the Purchasing Manager shall evaluate the responses, identify qualified firms, and maintain the responses of the qualified firms on file to be used in the Request for Proposals process described below. (2) Request for Proposals. The Purchasing Manager, in consultation with the Director of Engineering, shall issue a Request for Proposals for the Professional Design Services requested. Multiple projects may be bundled into one Request for Proposals such that multiple Contract awards may result from one Request for Proposals and selection may be based upon specialized services. (3) Content of Request for Proposals. Each Request for Proposals shall describe the Professional Design Services required and the selection process. Each Request for Proposals shall also set forth such provisions, terms, and conditions, consistent with this Ordinance, that the Purchasing Manager, in consultation with the Director of Engineering, determines are necessary, desirable, and/or advantageous to the District. Each Request for Proposals shall require that proposals contain, at a minimum, the following information: (a)The firm's qualifications for performing the proposed work. (b)The firm's relevant experience and performance on similar projects. (c) The firm's ability to complete the work within the time allotted. (d)The personnel that will be assigned to the project. (a)The estimated number of hours that each member of the team will spend on the project. (f) A statement that the firm's engagement for the project would not create a conflict of interest. (g) Any other information required to properly evaluate the firm's qualifications and experience with similar projects. (h) Proposals for construction management services shall demonstrate that the designated personnel have expertise and experience in construction project design review and evaluation, construction OCSD-47-14 IN2653.2 Return to Mende Report mobilization and supervision, bid evaluation, project scheduling, cost- benefit analysis, claims review and negotiation, and general management and administration of a construction project. (i) A fee proposal, based on the method of compensation specified in the Request for Proposal, and an estimate of total fees, enclosed in a separately sealed envelope. Commonly used methods of compensation for Professional Design Service Contracts include (i) cost plus fixed fee with a maximum amount; (ii) per diem rate(s) with a maximum amount; (iii) a lump sum (fixed) fee; and (iv) cost of time and materials. (4) Publication of Request for Proposals. The District shall publicize each Request for Proposals by two or more of the following methods: (a)Advertising in print or electronic media; and/or (b) Mailing the Request for Proposals to each Contractor who has submitted a Statement of Qualifications; and/or (c) Mailing the Request for Proposals to each vendor registered in the applicable category, based on the services identified in the Request for Proposals, in the District's on-line vendor database. (5) Staff Evaluation Committee. The Purchasing Manager shall convene an evaluation committee to evaluate the proposals. (a) Management and Composition. The Purchasing Manager shall serve as chair of the evaluation committee. The Director of Engineering shall appoint the other members of the committee. (b) Ranking of Firms. All proposals shall be evaluated and ranked, from most qualified to least qualified, based on each firm's demonstrated competence and professional qualifications necessary for the satisfactory performance of the services required. (c) Interviews. At its discretion, the evaluation committee may interview one or more of the firms that have submitted proposals. (d) Report. The evaluation committee shall prepare a written report for the Purchasing Manager and the Director of Engineering setting forth, at a minimum, the ranking of firms from most qualified to least qualified. (6) Negotiations. The Purchasing Manager and the Director of Engineering shall negotiate a Contract with the firm that the evaluation committee deems to be most qualified. Fee proposals shall not be opened until the highest ranked proposer is identified. Only the highest ranked proposers fee proposal will be opened. If those negotiations fail, the OCSD-47-15 IN2653.2 Purchasing Manager shall negotiate with the second most qualified firm, and so on, until an agreement is reached. The Purchasing Manager shall proceed down the list from most to least qualified until he or she has concluded negotiations with the desired number of firms at fair and reasonable prices. The Director of Engineering shall make a written determination that the negotiated fee is fair and reasonable. All unopened price proposals will be returned to the firm that submitted it. The District may, in its sole discretion, reject all proposals. C. Master Contracts: Professional Design Services Less Than or Equal to 200 000. The requirements set forth in this subsection 4.02(C) shall apply to the purchase of Professional Design Services estimated to cost less than or equal to $200,000 for each individual project. (1) Reguest for Qualifications. At least once every 3 years, the Purchasing Manager shall prepare and distribute a Request for Qualifications for each professional discipline or project design service required by the District subject to this subsection. Each Request for Qualifications shall describe the selection criteria that will be used to determine whether firms are eligible for the prequalified list. The Request for Qualifications shall require the following information, at a minimum, from proposers: (a) The firm's demonstrated competence and specialized expertise necessary to perform the type of services needed; (b) The education, experience, training, and skills of the key personnel that will perform and manage the work for the District; (c) The firm's capacity and resources to deliver the services required within the specified period of time, including but not limited to a sufficient number of qualified staff, computer hardware, computer software, special equipment and facilities as applicable; and (d) The proximity of the firm's officals) to the District, the specific location of key personnel, and the firm's experience and familiarity with the operation of local government. (2) Evaluation Committee. The Purchasing Manager shall convene an evaluation committee to evaluate the responses to each Request for Qualifications. The Purchasing Manager shall chair the committee, and the Director of Engineering shall appoint the remaining members. Each evaluation committee shall determine whether each firm has the demonstrated competence and professional qualifications necessary for the satisfactory performance of the services required. OCSD-47-16 IN2653.2 Return to Mende Report (3) Lists. Based on the recommendations of the evaluation committee, with the concurrence of the Director of Engineering, the Purchasing Manager shall establish a list of at least 5 prequalified Contractors within each discipline. Each list shall be used for a maximum of 3 years. No later than 3 years after establishing a prequalified list for each discipline, the Purchasing Manager shall issue a new Request for Qualifications and establish a new list. (4) Master Contract. Master Contracts with firms on the prequalified list shall be awarded by the Board of Directors in an amount not to exceed $400,000 per year. The original term of such Contracts shall be for 1 year, with an option to extend each Contract for up to 2 additional 1 year renewal periods. (5)Task Orders. The Director of Engineering shall notify the Purchasing Manager when Professional Design Services subject to this subsection are required for a project. Proposals shall be solicited, with price proposals submitted in a separate sealed envelope, from at least 2 firms on the prequalified list and one of the firms shall be selected pursuant to the process set forth in subsection 4.02(B)(6). In determining which firms will be invited to submit proposals, the Purchasing Manager shall follow the selection or rotation process, if any, set forth in the Request for Qualifications, subject to the best interests of the District in any particular case. Individual Task Orders in an amount not to exceed $200,000 will be awarded for each project. The Director of Engineering shall make a written determination that the negotiated fee is fair and reasonable for the task. Section 4.03. Exceptions A. Sole Source and Emergency Procurements. Contracts for Professional Design Services may be awarded without soliciting Competitive Sealed Proposals if the Purchasing Manager makes one of the determinations set forth in Section 1.07. B. Continuation of Services. A new contract for additional services related to work already performed under an existing Contract for Professional Design Services may be awarded without observing the bidding procedures prescribed in subsection 4.02(B) or subsection 4.02(C), as applicable. In connection with any such new contract, the Director of Engineering shall determine in writing that (1) it is in the District's best interests to have the original firm perform additional, related services, and (2) the negotiated price is fair and reasonable. C. Procurements of$5,000 or less. Contracts subject to this Article 4 with an estimated value of $5,000 or less may be awarded without following the Request for Proposal/Request for Qualifications OCSD-47-17 IN2653.2 process if the Purchasing Manager determines that a RFP/RFQ process would not result in a lower overall cost to the District. Article 5. Public Works Projects Section 5.01. Purpose and Scope A. Purpose. This Article 5 is intended to implement state statutes that govern the District's award of construction Contracts for Public Works Projects. B. Scope. This Article 5 applies to the District's award of Contracts for the construction of Public Works Projects exceeding $35,000 other than sewerage maintenance or repair projects pursuant to Public Contract Code section 20783 (Projects estimated at $35,000 or less, and sewerage maintenance or repair projects, may be processed pursuant to Article 2). Section 5.02. Selection Process A. Design-Bid-Build. (1) Competitive Sealed Bids. For projects subject to Public Contracts Code section 20783, the District shall select firms for Public Works Projects pursuant to the process described in this subsection 5.02(A). (a) Notice Inviting Bids. For each prospective Contract, the Purchasing Manager shall publish a Notice Inviting Bids as required by Public Contract Code Section 20783. (i) Manner of Publication. Each Notice Inviting Bids shall be published in a newspaper of general circulation, on industry bulletin boards, and/or on the District's website at least 10 days before the date for the opening of bids consistent with the requirements set forth in Public Contracts Code section 20783. (ii) Contents. Each Notice Inviting Bids shall: 1. Establish a deadline for the receipt of bids that is at least 10 calendar days after the first publication of the Notice Inviting Bids; 2. Provide that the District, in its sole discretion, may reject any and all bids; 3. Set forth a procedure that shall be followed in the event of a tie between the lowest Responsive and Responsible bidders; OCSD-47-18 IN2653.2 Return to Mende Report 4. Require bidders to post a bidder's security; 5. State that if a Contract is awarded to the bidder, a payment bond is required pursuant to Civil Code section 9550; 6. Contain detailed plans and specifications for the project. Subject to the exceptions set forth in subsection 5.03(B), the specifications shall not call for a designated material, product, thing, or service by specific brand or trade name unless the District complies with the requirements under California Public Contract Code section 3400 at seq.; and 7. Contain whatever provisions, consistent with this Ordinance, the Purchasing Manager determines are necessary, desirable, and/or advantageous to the District. (b) Bid Opening. The Purchasing Manager shall open the bids publicly in the presence of one or more witnesses at the time and place designated in the Notice Inviting Bids. The Purchasing Manager shall record the amount of each bid together with the name of each bidder. This record, and each bid, shall be considered public records and shall be available to the public at the point in time specified in the Notice Inviting Bids and consistent with the Public Records Act. (c) Redaction of Bids. The District may reject all bids received for a particular project and: (i) Re-advertise for bids; or (ii) Authorize construction of the project through a Negotiated Procurement of day labor and/or materials or supplies, if the Board adopts a resolution by a four-fifths vote declaring that (i) the work can be performed more economically by day labor, and/or (ii) the materials or supplies can be obtained at a lower price in the open market. (d) No Bids. If the District does not receive any bids for a particular project, the District's Board of Directors may authorize the Purchasing Manager to conduct a Negotiated Procurement, and present his or her recommendation to the Board for approval. (a)Award to Lowest Responsive and Responsible Bidder. Unless the District rejects all bids, the Contract shall be awarded to the lowest Responsive and Responsible Bidder. If two or more Responsible Bidders submit the same lowest bid, the District may, in its discretion, accept either bid or a lower bid, if any, as may be obtained from one of the lowest bidders through negotiation. If the lowest Responsive and Responsible Bidder refuses to enter into a Contract, then the lowest OCSD-47-19 IN2653.2 Responsive and Responsible Bidder shall forfeit its bidder's security, and the Contract shall be awarded to the next lowest Responsive and Responsible Bidder. B. Design-Build. As may be authorized by the Public Contract Code or other statute, the District may utilize a design-build selection process for the award of Public Works Contracts. C. Prequalification. The Purchasing Manager may limit the field of prospective bidders for Public Works Contracts by prequalifying Contractors pursuant to California Public Contract Code Section 20101 and the requirements of this subsection 5.02(C). Prequalification shall only be required when the Purchasing Manager or the Director of Engineering determines that prequalification is necessary or desirable. The Purchasing Manager may (i) prequalify a list of Contractors for the right to bid on any specific Public Works Project, and/or (ii) prequalify lists of Contractors for the right to bid on unspecified projects of a certain type or size pursuant to Public Contracts Code section 20101(c). If the Purchasing Manager elects to prequalify lists of Contractors for the right to bid on unspecified projects of a certain type or size, he or she shall conduct a prequalification process quarterly, and all qualifications shall be valid for one year. For each prequalified list of either type, the Purchasing Manager shall evaluate and prequalify Contractors pursuant to the following procedures: (1) Questionnaires and Rating Criteria. The Purchasing Manager shall develop a questionnaire and rating criteria for each prequalification. All criteria shall be relevant and objective. The Purchasing Manager may rely on the Department of Industrial Relations model guidelines, questionnaires, and forms, and/or establish additional or modified criteria. (2) Statements of Qualifications. The Purchasing Manager shall solicit Statements of Qualifications from prospective bidders. (3) Evaluation Committee. The Purchasing Manager shall convene an evaluation committee to evaluate each Statement of Qualifications. The Purchasing Manager shall chair the committee, and the Director of Engineering shall appoint the remaining committee members. The evaluation committee shall review each Statement of Qualifications, rate the Contractors according to their qualifications and objective criteria, and determine which Contractors are qualified and which Contractors are not qualified. (4) Notice of Determination. When the evaluation committee completes its review, the Purchasing Manager shall send each Contractor written OCSD-47-20 IN2653.2 Return to Mende Report notice of the committee's determinations regarding that Contractor. If the evaluation committee determines that a Contractor is not qualified, the written notice shall also set forth the basis for that determination and any relevant supporting evidence that the evaluation committee considered. (5)Appeal Process. (a) Notice of Appeal. Any Contractor may appeal to the General Manager any determination of the evaluation committee, including any rating assigned to the Contractor and any decision to disqualify the Contractor, by filing a written notice of appeal within 7 working days after the Purchasing Manager mails the notice described in subsection 5.02(C)(4). (b) Hearing. Within 5 working days of the receipt of an appeal, the General Manager, or a designee of the General Manager who has not been involved in the evaluation of qualifications of Contractors for the project, shall conduct a hearing on the appeal. During the hearing, the affected Contractor or subcontractor shall have the opportunity to rebut any evidence used as a basis for disqualification and to present evidence to the General Manager or the General Manager's designee as to why the prospective bidder should be found qualified. (c) Decision. Within 5 working days of the conclusion of the hearing, the General Manager or the General Manager's designee shall issue a written decision on the appeal. The decision of the General Manager or the General Manager's designee shall be final. Section 5.03. Exceptions A. Emergencies and Calamities. (1) The provisions of this subsection 5.03(A) apply in the event of an emergency or calamity involving a sudden, unexpected occurrence that poses a clear and imminent danger requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services. In the event of such an emergency or calamity, the District may, through Negotiated Procurement, award Contracts to repair or replace facilities, take any directly related and immediate action required by the emergency or calamity, and procure the necessary equipment, services, and supplies for those purposes. (2) The General Manager may take the actions described in subdivision (1) above, with the concurrence of the Chair of the Board of Directors and/or the Vice Chair, without obtaining prior approval of the District's Board of Directors. In taking any such action, the General Manager shall follow the procedures set forth in Public Contracts Code Section 22050. (3) In the alternative, the District's Board of Directors may, by resolution adopted by a four-fifths vote, take the actions described in subdivision OCSD-47-21 IN2653.2 (1) above. In taking any such action, the District shall follow the procedures set forth in Public Contracts Code 22050. B. Specification of Brand or Trade Name. Notwithstanding subsection 5.02(A)(1)(a)(ii)(6), the specifications for a Public Works Contract may call for a designated material, product, thing, or service by specific brand or trade name without inserting the words "or equal" if the District complies with the requirements of the California Public Contract Code section 3400 at seq. The General Manager is authorized to make the findings required under California Public Contract Code section 3400 at seq. The Notice Inviting Bids or Request for Proposals shall state that a particular material, product, thing, or service is necessary or desirable for any of the following purposes: (1) In order that a field test or experiment may be made to determine the product's suitability for future use; (2) In order to match other products in use on a particular public improvement either completed or in the course of completion; (3) In order to obtain a necessary item that is only available from one source; (4) In order to respond to an emergency declared by the District, but only if the declaration is approved by a four-fifths vote of the District's Board of Directors; or (5) In order to respond to an emergency declared by the state, a state agency, or political subdivision of the state, but only if the facts setting forth the reasons for the finding of the emergency are contained in the public records of the District. Article 6. Protests The District shall afford Interested Parties an opportunity to protest the solicitation of bids and proposals and the award of contracts as set forth in this Article 6. The General Manager shall adopt detailed protest procedures consistent with this Article 6. The protest procedures governing any particular procurement shall be set forth in the Notice Inviting Bids or the Request for Proposals, as applicable. Section 6.01. Solicitation Protests A. Interested Parties may file a Solicitation Protest Statement with the Purchasing Manager on the grounds that a free and open competition has not taken place, or cannot take place, and/or that a particular specification or requirement is impractical, unduly restrictive, or ambiguous. Each Notice Inviting Bids and Request for Proposals shall identify the date and time that the Solicitation Protest Statement is due, the information required OCSD-47-22 IN2653.2 Return to Mende Report to be included in the Solicitation Protest Statement, the evaluation process, and the types of remedies available. B. The Purchasing Manager shall evaluate each Solicitation Protest Statement and determine what actions, if any, will be taken to remedy any deficiency. The decision of the Purchasing Manager shall be final. Section 6.02. Award Protests A. In connection with any competitive selection process, any Interested Party may file an Award Protest Statement with the Purchasing Manager on the ground that a free and open competition has not taken place in connection with the award recommendation. The Purchasing Manager shall not, however, consider any protest based on a finding that a bid or proposal is not responsive. B. Each Notice Inviting Bids and Request for Proposals shall identify the deadline for Award Protest Statements and describe the information required to be included in any Award Protest Statement, the evaluation process, the appeal process, and the types of remedies available. C. The Purchasing Manager shall evaluate each Award Protest Statement and determine what actions, if any, will be taken to remedy any deficiency. D. The Purchasing Manager's decision on an Award Protest Statement may be appealed to the Director of Finance and Administrative Services and the Director of the Department requesting the Procurement. The Director of Finance and Administrative Services and the Director of the Department requesting the Procurement shall evaluate each Award Protest Statement and determine whether to uphold or reject the Purchasing Manager's determination. For Contracts to be awarded by District staff, the decision of the Director of Finance and the Director of the Department requesting the Procurement shall be final. For Contracts to be awarded by the Board of Directors, the Board may consider any Award Protest Statements in connection with its consideration of the Contract. Section 6.03. Delay in Award A. Execution of any proposed contract shall be delayed pending resolution of any protests unless one or more of the following conditions is present: (1) The items or services being procured are urgently required; (2) Delivery or performance will be unduly delayed by failure to make an award promptly; or (3) Failure to make prompt award will otherwise cause undue harm to the District. Section 6.04. Remedies OCSD-47-23 IN2653.2 A. If the final decision maker determines that the award or proposed award was not made in accordance with applicable statutes, regulations, policies and/or procedure, the District, in its sole discretion, may grant any of the following remedies or any other remedy it deems appropriate: (1) Prior to award, the District may issue a new solicitation, make a new selection/award recommendation, or award a contract consistent with applicable statutes, regulations, policies and procedures; (2) Take no further action; or (3) Take any other action that is permitted by law to promote compliance with applicable statutes, regulations, policies and/or procedure. B. In determining the appropriate remedy, if any, the District shall consider all the circumstances surrounding the Notice Inviting Bids or Requests for Proposal and/or award, including, but not limited to: (1) The seriousness of any deficiency found to exist in the contracting process; (2) The effect of the action on the competitive process; (3)Any urgency surrounding the contract requirement; and (4) The effect that implementing the remedy will have on the District. C. Nothing contained herein shall be construed to act as a limitation on the District's choice of remedies or confer any right upon any Interested Party or affected party to a remedy. Section 6.05. Public Documents Solicitation Protest Statements and Award Protest Statements are public documents. The District will notify the affected parties when a protest has been submitted, and will provide copies of the Protest Statements to the affected parties upon written request. Article 7. Delegation of Authority to Award Contracts This Article 7 applies to all Contracts for Goods, Services, and Public Works Projects entered into by the District. Section 7.01. Award Authorization A. Delegation by General Manager. The General Manager shall establish written procedures governing the delegation of authority to award and execute Contracts consistent with this Ordinance. Upon delegation of authority by the General Manager, each Department Director may further delegate authority to initiate a written Requisition consistent with the General Manager's written procedures. OCSD-47-24 IN2653.2 Return to Agenda Report B. Original Contracts and Contingencies. The Board of Directors hereby delegates the authority to award Contracts within specified limits as follows: r I j Delegated Authority j Authorized Action F----------------------------------f----------------------------------------------------------------I General Manager/ j Authorization to approve and execute Contracts Assistant General for budgeted procurements up to $100,000, j Manager including any contingency. All procurements over $50,000 are to be reported to the Board of Directors on a quarterly basis. Standing Committees Authorization to approve procurements over $100,000 up to $200,000, plus a contingency of up to 50%, for a total spending authority of up to $300,000 for each Contract. ----------------- -------------------------------- Board of Directors All original Contracts for procurements that exceed the limits of the Standing Committees shall be approved by the Board of Directors. C. Amendments and Change Orders. The Board of Directors hereby delegates the authority to approve Amendments and Change Orders in any amount as follows: r I j Delegated Authority Authorized Action k----------------4------------------------- -------------------------A General Manager/ (1) Authorization to approve and execute Assistant General Amendments and Change Orders as long as (1) the Manager Amendment or Change Order is recommended by the applicable Department Director, and (2) the Amendment or Change Order does not change the contract price or the new contract price is within the approved contingency. (2) Authorization to approve and execute Amendments to chemical Contracts, unless the Contract unit price has increased from the unit price approved by the District's Board of Directors. Unit price increases in chemical Contracts require Board of Directors approval. `--------------------------------`-----------------------------------------------------------------= Section 7.02. Task Orders OCSD-47-25 IM653.2 The Board of Directors hereby delegates the authority to award Task Orders within specified limits as follows: r Delegated Authority j Authorized Action r i General Manager/ j Authorization to approve, upon the Assistant General Manager recommendation of the Department Director, and execute Task Orders and/or Amendments to the Task Orders provided the cumulative total of the Task Order and Amendments thereto do not exceed $100,000. 'F.---------------------------------- --------------------------------j Standing Committees Authorization to approve, upon the recommendation of the General Manager/Assistant General Manager, Task Orders and/or Amendments to the Task Orders over $100,000 provided the cumulative total of the Task Order and Amendments do not exceed $200,000. ------------------------------------------------------------------------------------------ �I1 Board of Directors 1 All Task Orders and/or amendments that exceed $200,000 shall be approved by the Board of Directors. Section 7.03. Time Extensions to Public Works Projects The General Manager may approve and execute Change Orders for Public Works Project Contract time extensions that do not involve any increase in compensation over the approved Contingency. Article 8. Ethics Section 8.01. Unlawful Consideration Prohibited District Officials shall neither solicit nor receive bribes, rebates, kickbacks, and/or any other unlawful consideration from any contracting party, or any party seeking a Contract with the District, in exchange for favorable treatment or any other action. Section 8.02. Conflicts of Interest A. Compliance with the Political Reform Act. District Officials shall not make any Contracts, participate in the making of any Contracts, or in any way attempt to use their official positions to influence any decision on any Contracts, in violation of Government Code Sections 87100 et seq. OCSD-47-26 IN2653.2 Return to Mende Report B. Compliance with Government Code & 1090. Without limiting the requirements of Part A above, no District Official shall make any Contract, participate in the making of any Contract, or in any way attempt to use his or her official position to influence any decision on a Contract, in violation of California Government Code Section 1090. C. Reguirements Applicable to Consultants. Consultants designated by the District's Conflict of Interest Code shall comply in all respects with Government Code Section 87100 et seq., and it's implementing regulations. Article 9. Definitions Amendment means a properly executed written agreement entered into and between the District and the Contractor, or issued by the District, covering modifications to the original Contract and which may result in adjustments to provisions of the Contract, including, but not limited to, terms, scope of work, compensation, and/or period of performance. Award Protest Statement shall mean a written objection to the award recommendation prior to final action to award the contract, which shall be submitted after receipt of sealed bids/proposals, but before award of a contract, as specified herein. Best value means the overall combination of quality, price, and other elements of a proposal/bid (or combination of several proposals/bids) that, when considered together, provide the greatest overall benefit in response to the requirements described in the solicitation documents. Change Order means a properly executed written agreement entered into and between the District and the Contractor, or unilaterally issued by the District, covering modifications to the original Contract, and which may result in adjustments to the provisions of the Contract, including, but not limited to, terms, scope of work, cost and/or period of performance. Competitive Sealed Bids means a selection process whereby prospective Contractors submit sealed bids and the Contract is awarded to the lowest Responsive and Responsible Bidder. Competitive Sealed Proposals means a selection process whereby prospective Contractors submit sealed proposals and the Contract is awarded to the proposal that best meets the criteria specified in the Request for Proposals. Contingency means an amount above the original Contract price, as awarded by the delegated authority, established at the time of Contract award, as may be amended thereafter, to be used for Contract changes. OCSD-47-27 IN2653.2 Contract means any type of agreement for the purchase of Goods, Services, and/or Public Works Projects. Contracts may be labeled in various different ways, including, but not limited to, "contract" "agreement," "purchase order," and "task order." Contractor means any person or entity that has a Contract with the District. Department means one of the District's designated departments. Design-Bid-Build means a selection process for the award of Public Works Contracts involving three basic steps: (1) the District hires a design professional to prepare detailed plans and specifications or the District prepares detailed plans and specifications; (2) the District solicits bids from construction firms based on the detailed plans and specifications; and (3) the District awards the Contract to the lowest Responsive and Responsible Bidder. Design-Build means a selection process for the award of Public Works Contracts involving two basic steps: (1) the agency solicits proposals from pre-qualified firms to design and construct a project; and (2) depending on the award criteria set forth in the Request for Proposals, the agency awards the Contract to either (a) the lowest Responsive and Responsible Bidder, or (b) the proposal that presents the "best value" Director means a director of one of the District's designated departments, or his or her designee(s). Director of Engineering means the District's Director of Engineering or his or her designee(s). District means the Orange County Sanitation District. District Board or Board means the Board of Directors of the Orange County Sanitation District. District Official means any member of the District's Board of Directors, any District employee, and any District consultant that is designated under the District's Conflict of Interest Code. General Manager means the General Manager of the District, or his or her designee(s). Goods means fixed, movable, disposable, and/or reusable products, commodities, equipment, materials, supplies or items used by the District, and excludes land or any interest in real property. Interested Partv shall mean: (1) on solicitation, all bidders or proposers, and prospective bidders or proposers; (2) on award, the unsuccessful bidder or proposer with a direct economic interest in the outcome of their protest. OCSD-47-28 IN2653.2 Return to Mende Report Mailing means transmission by United States Postal Service, electronic mail, or facsimile. Negotiated Procurement means a selection process whereby the Purchasing Manager identifies one or more prospective Contractors of his or her choice, negotiates with one or more of them, and awards the Contract to one of them based on the best interest of the District. Notice Inviting Bids/Invitation for Bids means all documents, whether attached or incorporated by reference, utilized for soliciting bids. Procurement means buying, purchasing, renting, leasing, or otherwise acquiring any goods, services, construction, construction services, or professional services, including professional design services. It also includes all functions that pertain to the obtaining of any goods, services, or construction, including description of requirements, election and solicitation of sources, preparation and award of contract, and all phases of contract administration. Professional Services means (i) services provided by professionals that involve specialized judgment, skill, and expertise, and (ii) incidental services that professionals, and those in their employ, may logically or justifiably perform. Professional Services include, but are not limited to, services provided by accounting, financial, information technology, human resources consultation and advocacy, legislative advocacy, and scientific research/consulting firms. Professional Design Services means architectural, landscape architectural, engineering, environmental, land surveying, or construction project management services retained by the District in connection with, but not limited to, construction, alteration, and/or repair projects. Public Works/Public Works Project means a project involving the construction, erection, or alteration of any type of structure, building, or improvement other than sewerage maintenance or repair projects. Purchasing Manager means the District's Contracts, Purchasing and Materials Management Manager, or his or her designee(s). Request for Proposals means all documents, whether attached or incorporated by reference, utilized for soliciting proposals. Request for Qualifications means a request for detailed information concerning the qualifications of prospective Contractors. Reguisition means an approved written document making a request for Goods and Services OCSD-47-29 IN2653.2 Responsible Bidder means a bidder who has demonstrated the attribute of trustworthiness, as well as quality, fitness, capacity, and experience to satisfactorily perform the requested services or project. Responsive Bidder/Proposer means a bidder/proposer who has submitted a bid/proposal which conforms in all material respects to the Notice Inviting Bids/Invitation for Bids/Request for Proposals. Services means the furnishing of materials, labor, time, or effort by a Contractor. Services include both general services (janitorial, landscape, repair, maintenance, etc.) professional services, and professional design services, unless otherwise specified. Sealed (Bids or Proposals) means the submittal of bids or proposals, either in paper or electronic format, whereby the bid or proposal documents are opened at a specific time and not before. Sole Source Procurement means the acquisition of Goods and/or Services from a single source. Solicitation Protest Statement shall mean a written objection during the solicitation phase of the procurement, which shall be submitted prior to the bid/proposal due date as specified herein. Standing Committee means one of the permanent committees designated by the Board of Directors as "Standing Committees." Task Order means a written document pursuant to a Contract issued by the Purchasing Manager which provides for the issuance of orders, containing a defined budget, scope of services, and schedule, and authorizes a Contractor to incur a specified amount for the performance of tasks. Article 10. Miscellaneous Section 10.01. Noncompliance Any Contract entered into which fails in any respect to comply with the provisions of this Ordinance may be voided by the Board of Directors in its sole and absolute discretion. Any employee who willfully and knowingly violates any provision of this Ordinance may be subject to disciplinary action. Section 10.02. Effective Date This Ordinance No. OCSD-47 shall take effect June 1, 2015, upon adoption by the Board of Directors. Section 10.03. Repeal of Ordinance No. OCSD-44. OCSD-47-30 104265 Return to Mende Report Ordinance No. OCSD-44, entitled "An Ordinance of the Board of Directors of Orange County Sanitation District Establishing Requirements and Procedures for the Purchase of Goods, Services, and Public Works Projects" is hereby repealed in its entirety. Section 10.04. Certification and Publication. The Clerk of the Board shall certify to the adoption of this Ordinance, and shall cause a summary to be published in a newspaper of general circulation within 15 days as required by law. PASSED AND ADOPTED by a majority of the Board of Directors of the Orange County Sanitation District at a Regular Meeting held , 2015. Tom Beamish Chairman of the Board of Directors ATTEST: Clerk of the Board APPROVED AS TO FORM: Bradley R. Hogin General Counsel OCSD-47-31 IN2653.2 STATE OF CALIFORNIA ) )SS. COUNTY OF ORANGE ) I, , Clerk of the Board of Directors of Orange County Sanitation District, do hereby certify that the above and foregoing Ordinance No. OCSD- was introduced for first reading at a regular meeting of said Board on the_day of , 2015, and passed and adopted at a regular meeting of said Board on the day of , 2015, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand this_day of , 2015. Clerk of the Board Orange County Sanitation District OCSD-47-32 IN2653.2 Return to Aaenda Report ORDINANCE NO. OCSD-44-47 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT ESTABLISHING REQUIREMENTS AND PROCEDURES FOR THE PURCHASE OF GOODS, SERVICES, AND PUBLIC WORKS PROJECTS OCSD-##-1 IN2653.2 Contents CONTENTS Article 1. General Provisions .......................................................................................6 Section 1.01. Purpose and Scope.......................................................................6 A. Purpose...........................................................................................6 B. Scope..............................................................................................6 Section1.02. Title................................................................................................6 Section 1.03. Definitions......................................................................................6 Section 1.04. Rules and Guidelines.....................................................................6 Section 1.05. Budgeted Funds ............................................................................7 Section 1.06. The Purchasing Manager ..............................................................7 A. Duties..............................................................................................7 B. Requests for Procurement. .............................................................7 Section 1.07. Exceptions to Competitive Selection..............................................7 A. Sole Source Procurement. ..............................................................7 B. Emergency Procurement. ...............................................................7 Section 1.08. Evaluation Committees..................................................................8 Section 1.09. Severability....................................................................................8 Article2. Goods and Services .....................................................................................8 Section 2.01. Purpose and Scope .......................................................................8 A. Purpose...........................................................................................8 B. Scope..............................................................................................8 Section 2.02. Selection Process..........................................................................9 A. Competitive Sealed Bids.................................................................9 B. Award..............................................................................................9 C. Equal Bids.......................................................................................9 Section2.03. Exceptions.....................................................................................9 A. Small Procurements........................................................................9 OCSD-##-2 IN2653.2 Return to Mende Report B. Cooperative Purchases................................................................. 10 C. Multi-Step Sealed Bidding............................................................. 10 D. Competitive Sealed Proposals. ..................................................... 10 E. Critical Time-Sensitive Procurements. .......................................... 11 F. Renewals. ..................................................................................... 11 G. Sole Source and Emergency Procurements. ................................ 11 H. Master Contracts; Maintenance and Repair Services Less Than or Equal to $100.000200,000............................................... 11 Article 3. Professional Services................................................................................. 12 Section 3.01. Purpose and Scope ..................................................................... 12 A. Purpose......................................................................................... 12 B. Scope............................................................................................ 12 Section 3.02. Selection Process........................................................................ 13 A. Request for Proposals................................................................... 13 B. Evaluation and Ranking of Proposals. .......................................... 13 C. Negotiation of Contract. ................................................................ 13 Section 3.03. Exceptions................................................................................... 13 A. Sole Source and Emergency Procurements. ................................ 14 B. Contractors Reporting to the Board............................................... 14 C. Procurements of$5,000 or less. ................................................... 14 D. Master Contracts; Professional Services Less Than or Equal to $100,000. .................................................................................. 14 Article 4. Professional Design Services..................................................................... 14 Section 4.01. Purpose and Scope ..................................................................... 14 A. Purpose......................................................................................... 14 B. Scope............................................................................................ 14 Section 4.02. Selection Process........................................................................ 14 A. Competitive Selection. .................................................................. 14 B. Professional Design Services Greater Than $200,000. ................ 15 C. Master Contracts; Professional Design Services Less Than or Equal to $200,000..................................................................... 17 Section4.03. Exceptions................................................................................... 18 A. Sole Source and Emergency Procurements. ................................ 19 OCSD-##-3 IN2653.2 B. Continuation of Services. .............................................................. 19 C. Procurements of$5,000 or less. ................................................... 19 Article 5. Public Works Projects................................................................................. 19 Section 5.01. Purpose and Scope ..................................................................... 19 A. Purpose......................................................................................... 19 B. Scope............................................................................................ 19 Section 5.02. Selection Process........................................................................ 19 A. Design-Bid-Build. .......................................................................... 19 B. Design-Build..................................................................................21 C. Prequalification..............................................................................21 Section 5.03. Exceptions...................................................................................23 A. Emergencies and Calamities. .......................................................23 B. Specification of Brand or Trade Name. .........................................23 Article6. Protests ......................................................................................................24 Section 6.01. Solicitation Protests.....................................................................24 Section 6.02. Award Protests ............................................................................24 Section 6.03. Delay in Award.............................................................................25 Section 6.04. Remedies.....................................................................................25 Section 6.05. Public Documents........................................................................26 Article 7. Delegation of Authority to Award Contracts................................................26 Section 7.01. Award Authorization.....................................................................26 A. Delegation by General Manager. ..................................................26 B. Original Contracts and Contingencies...........................................26 C. Amendments and Change Orders.................................................27 Section 7.02. Task Orders.................................................................................27 Section 7.03. Time Extensions to Public Works Projects ..................................28 Article8. Ethics..........................................................................................................28 Section 8.01. Unlawful Consideration Prohibited...............................................28 Section 8.02. Conflicts of Interest......................................................................28 A. Compliance with the Political Reform Act......................................28 B. Compliance with Government Code § 1090..................................28 C. Requirements Applicable to Consultants. .....................................28 Article9. Definitions...................................................................................................28 OCSD-##-4 IN2653.2 Return to Mende Report Article 10. Miscellaneous............................................................................................. 33 Section 10.01. Noncompliance................................................................... 33 Section 10.02. Effective Date..................................................................... 33 Section 10.03. Repeal of Ordinance No. OCSD-44. .................................. 33 Section 10.04. Certification and Publication............................................... 33 OCSD-##-5 IN2653.2 NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District does hereby ORDAIN: Article 1. General Provisions Section 1.01. Purpose and Scope A. Purpose. This Ordinance is intended to: (1) Comply with certain provisions of state law requiring the District to adopt written purchasing procedures; (2) Ensure that the District complies with state law governing the award of Contracts for Goods, Services, and Public Works Projects; (3) Establish procedures to ensure that the District obtains quality goods and competent services at the best price and/or the best value; (4) Delegate certain spending authority to District employees in the interest of efficient administration; (5) Ensure that purchasing decisions are transparent for the public; and (6) Ensure that Contracts are awarded through a process that is fair to prospective Contractors and in the best interests of the District. B. Scope. This Ordinance governs the purchase of Goods, Services and the award of Contracts for Public Works Projects. Section 1.02. Title This Ordinance may be referred to as the DistricPs "Purchasing Ordinance." Section 1.03. Definitions As used throughout this Ordinance, the terms set forth in ;,Article 9 shall have the meanings as defined therein, unless the context in which they are used clearly requires a different meaning, or a different definition is prescribed for a particular Article or provision. Section 1.04. Rules and Guidelines The General Manager shall implement the requirements of this Ordinance through policies, rules, and guidelines governing the purchase of Goods and Services, and the award of Contracts for Public Works Projects. OCSD-##-6 1042653.2 Return to Mende Report Section 1.05. Budgeted Funds No Contract for the purchase of Goods, Services, or Public Works Projects shall be awarded unless and until the General Manager identifies funds in the current budget that are allocated to the purchase. Section 1.06. The Purchasing Manager A. Duties. Consistent with the provisions of this Ordinance, the Purchasing Manager shall: (1) Procure, or supervise the procurement of, all Goods, Services, and Public Works Projects purchased by the District; and (2) Supervise and control inventories of supplies and materials. B. Reauests for Procurement. When a Department desires to procure Goods and/or Services, the Department Director shall file a written Requisition, in advance, with the Purchasing Manager. The Requisition shall describe the Goods and/or Services to be acquired. Section 1.07. Exceptions to Competitive Selection Depending on the nature of the Contract and/or the circumstances, certain provisions of this Ordinance require that Contracts for Goods and/or Services be awarded based on Competitive Sealed Bids or Competitive Sealed Proposals. This Section 1.07 establishes certain general exceptions to competitive selection requirements for the procurement of Goods and Services. The exceptions set forth in this Section 1.07 do not apply to the award of Contracts for the construction of Public Works Projects. A. Sole Source Procurement. Notwithstanding any other provision of this Ordinance, a Contract for Goods and/or Services may be awarded based on Sole Source Procurement, without soliciting bids or proposals as might otherwise be required, if the General Manager or his designee determines in writing that it is in the best interest of the District to award the Contract because the Goods and/or Services are (1) of a unique nature based on their quality, durability, availability, fitness or qualifications for a particular use; or (2) only available from one source. B. Emergency Procurement. Notwithstanding any other provision of this Ordinance, a Contract for Goods and/or Services may be awarded through Negotiated Procurement, without soliciting bids or proposals as might otherwise be required, if the General Manager or his designee determines in writing that the District urgently needs the OCSD-##-7 IN2653.2 Goods and/or Services in order to respond effectively to an emergency. For purposes of this Section 107, emergency procurements are those purchases that are required to prevent immediate interruption or cessation of necessary services or to safeguard life, property, or the public health and welfare. In addition, emergency procurements as used in this Section also include critical time sensitive purchases where time is of the essence, and the District does not have sufficient time to solicit bids or proposals. For emergency procurements greater than $100,000, the General Manager shall obtain the concurrence of the Chair of the District's Board of Directors or, if the Chair is unavailable, the Vice Chair, and such action shall be ratified by the Board of Directors at its next regular meeting. Section 1.08. Evaluation Committees Evaluation committees convened in connection with procurements under this Ordinance shall generally be composed of District employees. In exceptional circumstances, however, the General Manager may appoint one or more persons not employed by the District to an evaluation committee if the General Manager determines that (1) evaluating proposals in connection with a particular procurement requires specialized expertise not available among District employees; (2) the procurement will impact another agency, and that agency desires to place a representative on the evaluation committee; or (3) it is otherwise in the District's interest to do so. Section 1.09. Severability If any provision of this Ordinance, or any application thereof to any person or circumstance, is held invalid, such invalidity shall not affect any other provision of this Ordinance or application to any person or circumstance which can be given effect without the invalid provision or application. The provisions of this Ordinance are declared to be severable. Article 2. Goods and Services Section 2.01. Purpose and Scope A. Purpose. California Government Code Sections 54202 et seq. requires the District to adopt written policies and procedures, including bidding requirements, governing the purchase of Goods and Services. This Article is intended to comply with Section 54202. B. Scope. The provisions of this Article 2 apply to Contracts for the purchase of Goods and Services other than Contracts for Professional Services (governed by Article 3), OCSD-##-8 IN2653.2 Return to Mende Report Professional Design Services (governed by Article 4), and Contracts for Public Works Projects (governed by Article 5). Section 2.02. Selection Process A. Competitive Sealed Bids. Subject to the exceptions set forth in Section 2.03, the award of Contracts for the purchase of Goods and Services shall be shall be based on Competitive Sealed Bids. For each procurement, the Purchasing Manager shall: (1) Publish a Notice Inviting Bids that contains (a) a description of the Goods and/or Services required, (b) a description of the selection process, (c) bidder's security requirement, if applicable, (d) performance bond requirements, if applicable, and (e) such provisions, terms, and conditions, consistent with this Ordinance, that the Purchasing Manager determines are necessary, desirable, and/or advantageous to the District; (2) Open the bids publicly at the time and place designated in the Notice Inviting Bids, and record the amount of each bid; and (3) Determine whether the bids are responsive to the Notice Inviting Bids. B. Award. After the bids are opened, one of the following actions may be taken: (4)(1) Award the Contract to the lowest Responsive and Responsible Bidder; (5)(21 Reject any and all bids presented and/or re-advertise the bid; or (6)(31 Declare that the Goods and/or Services may be acquired at a lower cost by negotiation in the open market and authorize the procurement in that manner. C. Equal Bids. If two or more Responsible Bidders submit the same lowest bid, the District may, in its discretion, accept either bid or a lower bid, if any, as may be obtained from one of the bidders through negotiation. Section 2.03. Exceptions A. Small Procurements. (1) Procurements of $5,000 or Less. Contracts subject to this Article 2 with an estimated value of $5,000 or less may be awarded without Competitive Sealed Bids if the Purchasing Manager determines that a Competitive Sealed Bids process would not result in a lower overall cost to the District. OCSD-##-g 1047653,2 (2) Procurements of $50,000 or Less. Contracts subject to this Article 2 with an estimated value of $50,000 or less may be awarded by (a) soliciting at least three bids from identified vendors, and (b) awarding the Contract to the lowest Responsive and Responsible Bidder. If the Purchasing Manager cannot obtain at least three bids, the Contract may be awarded to the lowest Responsive and Responsible Bidder as long as the Purchasing Manager determines that the bid amount is fair and reasonable. (3) Piecemealing Prohibited. Procurements shall not be artificially divided into different individual Contracts so as to keep each Contract amount below one of the monetary thresholds set forth in this Part A. B. Cooperative Purchases. When another public agency or government purchasing cooperative organization has awarded a Contract for Goods and/or Services based on Competitive Sealed Bids or Competitive Sealed Proposals, and the agency or organization followed a process substantially similar to the process described in Section 2.02, the District may acquire Goods and/or Services under that Contract without obtaining Competitive Sealed Bids or Competitive Sealed Proposals. The District may enter into Contracts with other public agencies, government purchasing cooperative organizations within the United States, and/or Contractors for this purpose. C. Multi-Step Sealed Bidding. If the Purchasing Manager determines that it is impractical to initially prepare a description to support an award based on price, a process involving multi-step sealed bids may be utilized. The multi-step sealed bidding process involves (1) issuing an Invitation for Bids requesting the submission of un-priced offers; and (2) issuing a subsequent Invitation for Bids for priced offers from those vendors whose initial un-priced offers were deemed qualified under the criteria set forth in the initial Invitation for Bids. Award under this process shall be based on the lowest Responsive and Responsible Bidder. D. Competitive Sealed Proposals. If the Purchasing Manager determines in writing that the Competitive Sealed Bids procedure is not practical and/or not advantageous for the District in a particular case, one or more Contracts subject to this Article may be awarded based on Competitive Sealed Proposals. The Competitive Sealed Proposals process may be used (1) for Goods and/or Services that prove difficult to quantify or describe, where proposers are provided the opportunity to offer different approaches or solutions; and/or (2)for critical, routine or recurring goods or services that require consideration of the broadest possible range of competing services, products and materials available, fitness of purpose, performance reliability, standardization, life cycle costs, delivery timetables, reliable supply, support logistics, diversification of available sources and/or other similar factors in addition to the OCSD-##-10 IN2653.2 Return to Mende Report price in the award of these contracts. Award under this process shall be based upon criteria that provide the best value for the District, wherein best value is not solely determined by price. E. Critical Time-Sensitive Procurements. The Purchasing Manager may purchase Goods and/or Services through Negotiated Procurement if the Purchasing Manager determines in writing that time is of the essence in the purchase of the Goods and/or Services. For critical time-sensitive procurements valued at more than $100,000, the General Manager shall obtain the concurrence of the Chair of the District's Board of Directors or, if the Chair is unavailable, the Vice Chair. F. Renewals. The Purchasing Manager may exercise any options to renew as may be included in existing Contracts without observing the bidding procedures prescribed in Section 2.02. G. Sole Source and Emergency Procurements. A Contract for the purchase of Goods and/or Services may be awarded without soliciting competitive bids if any of the exceptions set forth in Section 1.07 apply. H. Master Contracts: Maintenance and Repair Services Less Than or Equal to $280,000100,000. The Purchasing Manager may purchase maintenance and repair Services estimated to cost less than or equal to $290,00(-$100,000 through the master contract procedures set forth below. (1) Request for Qualifications. If a master contract is let for maintenance and repair Services, then at least once every 3 years, the Purchasing Manager shall prepare and distribute a Request for Qualifications for the maintenance and repair Services required by the District. Each Request for Qualifications shall describe the selection criteria that will be used to determine whether suppliers or firms are eligible for the orequalified list. The Request for Qualifications shall require the following information, at a minimum, from proposers: (a) The firm's demonstrated competence and specialized expertise necessary to perform the type of Service needed: (b) The experience, training, and skills of the key personnel that will perform and manage the work for the District; (c) The firm's capacity and resources to perform the Services required within the specified period of time. The firm must demonstrate that it will provide a sufficient number of qualified staff, equipment, and facilities as applicable. OCSD-##-11 IN2653.2 (2) Evaluation Committee. The Purchasing Manager shall convene an evaluation committee to evaluate the responses to each Request for Qualifications. The Purchasing Manager shall chair the committee, and the Director of the Department requesting the Procurement shall appoint the remaining members. Each evaluation committee shall determine whether each supplier or firm has the demonstrated competence and qualifications to provide the Services necessary for the satisfactory performance of the Services required. (3) Lists. Based on the recommendations of the evaluation committee, with the concurrence of the Department Director, the Purchasing Manager shall establish a list of at least 3 oregualified Contractors. Each list shall be used for a maximum of 3 years. No later than 3 years after establishing a prequalified list, the Purchasing Manager may issue a new Request for Qualifications and establish a new list. (4) Master Contract. Master Contracts with firms on the prequalified list shall be awarded by the Board of Directors in the amount not to exceed the program budget approved by the Board of Directors. The original term of such Contracts shall be for 1 year, with an option to extend each Contract for up to 2 additional 1 year renewal periods. (5)Task Orders. The Department Director shall notify the Purchasing Manager when Services subject to this subsection 2.03(H) are required for a maintenance or repair project. Proposals shall be solicited from all the firms on the prequalified list and one of the firms shall be selected pursuant to the process set forth in Section 2.02. Individual Task Orders in an amount not to exceed $200-,OW100,000 will be awarded for each project. Article 3. Professional Services Section 3.01. Purpose and Scope A. Purpose. This Article 3 is intended to ensure that the District retains Professional Services at fair and reasonable prices based on demonstrated competence and the professional qualifications necessary for the satisfactory performance of the services required. B. Scope. The provisions of this Article 3 apply to the award of Contracts for Professional Services and incidental services that members of a Professional Service firm, and those in their employ, may logically perform. The provisions of this Article 3 do not apply to the award of Contracts for Professional Design Services (governed by Article 4). OCSD-##-12 IN2653.2 Return to Mende Report Section 3.02. Selection Process Contracts for Professional Services shall be awarded pursuant to the following procedures: A. Request for Proposals. The Purchasing Manager shall prepare a Request for Proposals in consultation with the Director of the Department requesting the Procurement. The Purchasing Manager, with the concurrence of the Director of the Department requesting the Procurement, may select a limited number of Professional Service firms to receive the Request for Proposals. The Purchasing Manager may issue a Request for Qualifications to prospective Contractors as a means of identifying prospective recipients. The Purchasing Manager may publish notice of the Request for Proposals or Request for Qualifications. B. Evaluation and Ranking of Proposals. All responsive proposals shall be evaluated and ranked, from most qualified to least qualified, based on each firm's demonstrated competence and professional qualifications necessary for the satisfactory performance of the services required. The Purchasing Manager may establish a committee to conduct the evaluation. The Purchasing Manager or evaluation committee, if any, may discuss each proposal with its author to seek clarification or otherwise obtain relevant information. C. Negotiation of Contract. The Purchasing Manager shall negotiate a Contract with the firm deemed to be most qualified at a price that the Purchasing Manager, with the concurrence of the Director of the Department requesting the Procurement, deems to be fair and reasonable. If the o r..h..s Manager ' unable to negot , sat'sfactor y Contract %Af the firm deemed to be most qualified, the D rnhas ng Manage ch - L.rm ie N.. .. ...Ji.Ni..e.. ...ilh 16.J firm ..erl r. ..bate with the fi.m deemed to be .. GREI FRest qual fied If these .. get at ensfa I the O.�r..h2s Rg nn..r.. geF shall negat ate . 'th the th rd most qua!f'ad f rm and n on, nt' an agreement 'n ac reached.hed. If the Purchasing Manager determines that it is in the best interest of the District to enter into Contracts with two or more firms, the Purchasing Manager shall negotiate with the desired number of fines starting with the most qualified. The Purchasing Manager shall proceed down the list from most to least qualified until he or she has concluded negotiations with the desired number of firms at fair and reasonable prices. The District may, in its sole discretion, reject all proposals. D. The ni.d.i.N m..., iR Its sole dl. GFeti.... ...t all p ...J.. OCSD-##-13 IN2653.2 Section 3.03. Exceptions A. Sole Source and Emergency Procurements. A Contract for Professional Services may be awarded without soliciting Competitive Sealed Proposals if the Purchasing Manager makes one of the determinations set forth in Section 1.07. B. Contractors Reporting to the Board. The provisions of this Article 3 shall not apply to the retention of Professional Service firms or individuals that are selected by the Board and report directly to the Board. For such Contracts, the Board shall determine the method of selection, consistent with the requirements of applicable law. C. Procurements of$5,000 or less. Contracts subject to this Article 3 with an estimated value of $5,000 or less may be awarded without following the Request for Proposal/Request for Qualifications process if the Purchasing Manager determines that a RFP/RFQ process would not result in a lower overall cost to the District. D. Master Contracts: Professional Services Less Than or Equal to $100,000. The Purchasing Manager may purchase Professional Services estimated to cost less than or equal to $100,000 through the master contract procedures set forth in Section 2.03(H), provided that individual task orders shall not exceed $100,000 for each project. Article 4. Professional Design Services Section 4.01. Purpose and Scope A. Purpose. This Article 4 is intended to ensure that the District retains Professional Design Services at fair and reasonable prices based on demonstrated competence and the professional qualifications necessary for the satisfactory performance of the services required. B. Scope. This Article 4 applies to the selection of Contractors for Professional Design Services. Section 4.02. Selection Process A. Competitive Selection. OCSD-##-14 IN2653.2 Return to Mende Report All SentraetsProfessional Design Services estimated to be greater than $380200,000 shall be awarded based on Competitive Sealed Proposals. All Professional Design Services with an estimated value of $400200,000 or less shall have a separate selection process based upon a master contract procedure whereby the District shall solicit Competitive Sealed Proposals and award one or more master contracts not to exceed $250400,000 per year. B. GentraetsProfessional Design Services Greater Than $400200,000. The requirements set forth in this —subsection 4.02(B,) shall apply to the purchase of Professional Design Services estimated to cost more than $400200,000. (1)Annual List. Each Director of a Department that utilizes Professional Design Services shall file annually with the Purchasing Manager a list of specific disciplines for which Professional Design ServiceServices may be required. The Purchasing Manager may from time to time prepare and distribute a Request for Qualifications for eaehthe professional disciplinedisci Lines or project design sewiseservices required by the District subject to this Part B. For each Request for Qualifications issued, the Purchasing Manager shall evaluate the responses, identify qualified firms, and maintain the responses of the qualified firms on file to be used in the Request for Proposals process described below. (2) Request for Proposals. The Purchasing Manager, in consultation with the Director of Engineering, shall issue a Request for Proposals for each Profess onal Des gn Service the Professional Design Services requested. Multiple projects may be bundled into one Request for Proposals such that multiple Contract awards may result from one Request for Proposals and selection may be based upon specialized services. (3) Content of Request for Proposals. Each Request for Proposals shall describe the Professional Design Services required and the selection process. Each Request for Proposals shall also set forth such provisions, terms, and conditions, consistent with this Ordinance, that the Purchasing Manager, in consultation with the Director of Engineering, determines are necessary, desirable, and/or advantageous to the District. Each Request for Proposals shall require that proposals contain, at a minimum, the following information: (a)The firm's qualifications for performing the proposed work. (b)The firm's relevant experience and performance on similar projects. (G) A fee proposal, based on the method of Gornpensat on specif ed On the Request for Proposal, and an est mate of total fees Commonly used ecl de (0) rest plus fxed fee with a max mum amount; � � Per diern OCSD-##-15 1042653.2 04LcLThe firm's ability to complete the work within the time allotted. WLdLThe personnel that will be assigned to the project. (f)jeLThe estimated number of hours that each member of the team will spend on the project. (g)ffLA statement that the firm's engagement for the project would not create a conflict of interest. ( LgLAny other information required to properly evaluate the firm's qualifications and experience with similar projects. O)jhJ_Proposals for construction management services shall demonstrate that the designated personnel 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. (i) A fee proposal, based on the method of compensation specified in the Request for Proposal, and an estimate of total fees, enclosed in a separately sealed envelope. Commonly used methods of compensation for Professional Design Service Contracts include (i) cost plus fixed fee with a maximum amount: (it) per diem rate(s) with a maximum amount: (iii) a lump sum (fixed) fee: and (iv) cost of time and materials. (4) Publication of Request for Proposals. The District shall publicize each Request for Proposals by two or more of the following methods: (a)Advertising in print or electronic media; and/or (b) Mailing the Request for Proposals to each Contractor who has submitted a Statement of Qualifications; and/or (c) Mailing the Request for Proposals to each vendor registered in the applicable category, based on the services identified in the Request for Proposals, in the District's on-line vendor database; and/eF, n Ultinln n nntn ... y be 136IRdled ntn n n Request fn. o.nnnn. IR n Rh that ro t pie Contract awards m result from one Request for Proposals and spipetion may be based upon Spec al zed sery Ges. (5) Staff Evaluation Committee. The Purchasing Manager shall convene an evaluation committee to evaluate the proposals. OCSD-##-16 IN2653.2 Return to Mende Report (a) Management and Composition. The Purchasing Manager shall serve as chair of the evaluation committee. The Director of Engineering shall appoint the other members of the committee. (b) Ranking of Firms. All proposals shall be evaluated and ranked, from most qualified to least qualified, based on each firm's demonstrated competence and professional qualifications necessary for the satisfactory performance of the services required. (c) Interviews. At its discretion, the evaluation committee may interview one or more of the firms that have submitted proposals. (d) Report. The evaluation committee shall prepare a written report for the Purchasing Manager and the Director of Engineering setting forth, at a minimum, the ranking of firms from most qualified to least qualified. (6) Negotiations. The Purchasing Manager and the Director of Engineering shall negotiate a Contract with the firm that the evaluation committee deems to be most qualified, Fee proposals shall not be opened until the highest ranked proposer is identified. Only the highest ranked proposer's fee proposal will be opened. If those negotiations fail, the Purchasing Manager shall negotiate with the second most qualified firm, and so on, until an agreement is reached. The Purchasing Manager shall proceed down the list from most to least qualified until he or she has concluded negotiations with the desired number of firms at fair and reasonable prices. The Director of Engineering shall make a written determination that the negotiated fee is fair and reasonable. All unopened price proposals will be returned to the firm that submitted it. The District may, in its sole discretion, reject all proposals. C. GentraetsMaster Contracts; Professional Design Services Less Than or Equal to $390,WG200.000. The requirements set forth in this —subsection 4.02(G) shall apply to the purchase of Professional Design Services estimated to cost less than or equal to $4- 200,000 for each individual project. (1) Request for Qualifications. At least once every tl+ 3 years, the Purchasing Manager shall prepare and distribute a Request for Qualifications for each professional discipline or project design service required by the District subject to this PaFt Gsubsection. Each Request for Qualifications shall describe the selection criteria that will be used to determine whether firms are eligible for the prequalified list. The Request for Qualifications shall require the following information, at a minimum, from proposers: (a) The firm's demonstrated competence and specialized expertise necessary to perform the type of services needed; OCSD-##-17 IN2653.2 (b) The education, experience, training, and skills of the key personnel that will perform and manage the work for the District; (c) The firm's capacity and resources to deliver the services required within the specified period of time, including but not limited to a sufficient number of qualified staff, computer hardware, computer software, special equipment and facilities as applicable; and (d) The proximity of the firm's officals) to the District, the specific location of key personnel, and the firm's experience and familiarity with the operation of local government. (2) Evaluation Committee. The Purchasing Manager shall convene an evaluation committee to evaluate the responses to each Request for Qualifications. The Purchasing Manager shall chair the committee, and the Director of Engineering shall appoint the remaining members. Each evaluation committee shall determine whether each firm has the demonstrated competence and professional qualifications necessary for the satisfactory performance of the services required. (3) Lists. Based on the recommendations of the evaluation committee, with the concurrence of the Director of Engineering, the Purchasing Manager shall establish a list of at least fives prequalified Contractors within each discipline. Each list shall be used for a maximum Of three3 years. No later than three3 years after establishing a prequalified list for each discipline, the Purchasing Manager shall issue a new Request for Qualifications and establish a new list. (4) Master Contract. Master Contracts with firms on the prequalified list shall be awarded by the Board of Directors in an amount not to exceed $250400,000 per year. The original term of such Contracts shall be for en'"1) year, with an option to extend each Contract for up to twe42) additional one-l1j year renewal periods. (5)Task Orders, The Director of Engineering shall notify the Purchasing Manager when Professional Design Services subject to this Part Csubsection are required for a project. Proposals shall be solicited with price proposals submitted in a separate sealed envelope, from at least twe2 firms on the prequalified list and one of the firms shall be selected pursuant to the process set forth in S86tler 3subsection 4.02413)(6). In determining which firms will be invited to submit proposals, the Purchasing Manager shall follow the selection or rotation process, if any, set forth in the Request for Qualifications, subject to the best interests of the District in any particular case. Individual Task Orders in an amount not to exceed $400200,000 will be awarded for each project. The Director of Engineering shall make a written determination that the negotiated fee is fair and reasonable for the task. Section 4.03. Exceptions OCSD-##-18 IN2653.2 Return to Mende Report A. Sole Source and Emergency Procurements. Contracts for Professional Design Services may be awarded without soliciting Competitive Sealed Proposals if the Purchasing Manager makes one of the determinations set forth in Section 1.07. B. Continuation of Services. A new contract for additional services related to work already performed under an existing Contract for Professional Design Services may be awarded without observing the bidding procedures prescribed in subsection 4.02(B) or,subsection 4.02(C). as applicable. In connection with any such new contract, the Director of Engineering shall determine in writing that (1) it is in the District's best interests to have the original firm perform additional, related services, and (2) the negotiated price is fair and reasonable. C. Procurements of$5,000 or less. Contracts subject to this Article 4 with an estimated value of $5,000 or less may be awarded without following the Request for Proposal/Request for Qualifications process if the Purchasing Manager determines that a RFP/RFQ process would not result in a lower overall cost to the District. Article 5. Public Works Projects Section 5.01. Purpose and Scope A. Purpose. This Article 5 is intended to implement state statutes that govern the District's award of construction Contracts for Public Works Projects. B. Scope. This Article 5 applies to the District's award of Contracts for the construction of Public Works Projects exceeding thiFtY fiVe thG616and dGl4af6 Q$35,000) other than sewerage maintenance or repair projects pursuant to Public Contract Code section 20783. (Projects estimated at $35,000 or less, and sewerage maintenance or repair proiects, may be processed pursuant to Article 2). Section 5.02. Selection Process A. Design-Bid-Build. (1) Competitive Sealed Bids. For projects subject to Public Contracts Code section 20783, the District shall select firms for Public Works Projects pursuant to the process described in this .subsection 5.02(A). OCSD-##-19 IN2653.2 (a) Notice Inviting Bids. For each prospective Contract, the Purchasing Manager shall publish a Notice Inviting Bids as required by Public Contract Code Section 20783. (i) Manner of Publication. Each Notice Inviting Bids shall be published in a newspaper of general circulation, on industry bulletin boards, and/or on the District's website at least ten-(10) days before the date for the opening of bids consistent with the requirements set forth in Public Contracts Code section 20783. (ii) Contents. Each Notice Inviting Bids shall: 1. Establish a deadline for the receipt of bids that is at least ten (10) calendar days after the first publication of the Notice Inviting Bids; 2. Provide that the District, in its sole discretion, may reject any and all bids; 3. Set forth a procedure that shall be followed in the event of a tie between the lowest Responsive and Responsible bidders; 4. Require bidders to post a bidder's security; 5. State that if a Contract is awarded to the bidder, a payment bond is required pursuant to Civil Code section 9550; 6. Contain detailed plans and specifications for the project. Subject to the exceptions set forth in ,subsection 5.03(B). the specifications shall not call for a designated material, product, thing, or service by specific brand or trade name unless the District complies with the requirements under California Public Contract Code section 3400 at seq.; and 7. Contain whatever provisions, consistent with this Ordinance, the Purchasing Manager determines are necessary, desirable, and/or advantageous to the District. (b) Bid Opening. The Purchasing Manager shall open the bids publicly in the presence of one or more witnesses at the time and place designated in the Notice Inviting Bids. The Purchasing Manager shall record the amount of each bid together with the name of each bidder. This record, and each bid, shall be considered public records and shall be available to the public at the point in time specified in the Notice Inviting Bids and consistent with the Public Records Act. (c) Refection of Bids. The District may reject all bids received for a particular project and: OCSD-##-20 IN2653.2 Return to Mende Report (1) Re-advertise for bids; or (ii) Authorize construction of the project through a Negotiated Procurement of day labor and/or materials or supplies, if the Board adopts a resolution by a four-fifths vote declaring that (i) the work can be performed more economically by day labor, and/or (ii) the materials or supplies can be obtained at a lower price in the open market. (d) No Bids. If the District does not receive any bids for a particular project, the District's Board of Directors may authorize the Purchasing Manager to conduct a Negotiated Procurement, and present his or her recommendation to the Board for approval. (e)Award to Lowest Responsive and Responsible Bidder. Unless the District rejects all bids, the Contract shall be awarded to the lowest Responsive and Responsible Bidder. If two or more Responsible Bidders submit the same lowest bid, the District may, in its discretion, accept either bid or a lower bid, if any, as may be obtained from one of the lowest bidders through negotiation. If the lowest Responsive and Responsible Bidder refuses to enter into a Contract, then the lowest Responsive and Responsible Bidder shall forfeit its bidder's security, and the Contract shall be awarded to the next lowest Responsive and Responsible Bidder. B. Design-Build. As may be authorized by the Public Contract Code or other statute, the District may utilize a design-build selection process for the award of Public Works Contracts. C. Prequalification. The Purchasing Manager may limit the field of prospective bidders for Public Works Contracts by prequalifying Contractors pursuant to California Public Contract Code Section 20101 and the requirements of this Subsection :subsection 5.02(C). Prequalification shall only be required when the Purchasing Manager or the Director of Engineering determines that prequalification is necessary or desirable. The Purchasing Manager may (i) prequalify a list of Contractors for the right to bid on any specific Public Works Project, and/or (ii) prequalify lists of Contractors for the right to bid on unspecified projects of a certain type or size pursuant to Public Contracts Code Sestieasection 20101(c). If the Purchasing Manager elects to prequalify lists of Contractors for the right to bid on unspecified projects of a certain type or size, he or she shall conduct a prequalification process quarterly, and all qualifications shall be valid for one year. For each OCSD-##-21 IN2653.2 prequalified list of either type, the Purchasing Manager shall evaluate and prequalify Contractors pursuant to the following procedures: (1) Questionnaires and Rating Criteria. The Purchasing Manager shall develop a questionnaire and rating criteria for each prequalification. All criteria shall be relevant and objective. The Purchasing Manager may rely on the Department of Industrial Relations model guidelines, questionnaires, and forms, and/or establish additional or modified criteria. (2) Statements of Qualifications. The Purchasing Manager shall solicit Statements of Qualifications from prospective bidders. (3) Evaluation Committee. The Purchasing Manager shall convene an evaluation committee to evaluate each Statement of Qualifications. The Purchasing Manager shall chair the committee, and the Director of Engineering shall appoint the remaining committee members. The evaluation committee shall review each Statement of Qualifications, rate the Contractors according to their qualifications and objective criteria, and determine which Contractors are qualified and which Contractors are not qualified. (4) Notice of Determination. When the evaluation committee completes its review, the Purchasing Manager shall send each Contractor written notice of the committee's determinations regarding that Contractor. If the evaluation committee determines that a Contractor is not qualified, the written notice shall also set forth the basis for that determination and any relevant supporting evidence that the evaluation committee considered. (5)Appeal Process. (a) Notice of Appeal. Any Contractor may appeal to the General Manager any determination of the evaluation committee, including any rating assigned to the Contractor and any decision to disqualify the Contractor, by filing a written notice of appeal within seven (74 working days after the Purchasing Manager mails the notice described in c^^'o`� -5 ^2, subsection 5.02(C-()_(4). (b) Hearing. Within fwe5 working days of the receipt of an appeal, the General Manager, or a designee of the General Manager who has not been involved in the evaluation of qualifications of Contractors for the project, shall conduct a hearing on the appeal. During the hearing, the affected Contractor or subcontractor shall have the opportunity to rebut any evidence used as a basis for disqualification and to present evidence to the General Manager or the General Manager's designee as to why the prospective bidder should be found qualified. (c) Decision. Within fives working days of the conclusion of the hearing, the General Manager or the General Manager's designee shall issue a OCSD-##-22 IN2653.2 Return to Mende Report written decision on the appeal. The decision of the General Manager or the General Manager's designee shall be final. Section 5.03. Exceptions A. Emergencies and Calamities. (1) The provisions of this Seetian ubsection 5.03(A) apply in the event of an emergency or calamity involving a sudden, unexpected occurrence that poses a clear and imminent danger requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services. In the event of such an emergency or calamity, the District may, through Negotiated Procurement, award Contracts to repair or replace facilities, take any directly related and immediate action required by the emergency or calamity, and procure the necessary equipment, services, and supplies for those purposes. (2) The General Manager may take the actions described in ,subdivision (1) above with the concurrence of the Chair of the Board of Directors and/or the Vice Chair, without obtaining prior approval of the District's Board of Directors. In taking any such action, the General Manager shall follow the procedures set forth in Public Contracts Code Section 22050. (3) In the alternative, the District's Board of Directors may, by resolution adopted by a four-fifths vote, take the actions described in &ibsection .subdivision (1) above. In taking any such action, the District shall follow the procedures set forth in Public Contracts Code 22050. B. Specification of Brand or Trade Name. Notwithstanding ;subsection 5.02(A)(1)(a)(ii)(6). the specifications for a Public Works Contract may call for a designated material, product, thing, or service by specific brand or trade name without inserting the words "or equal" if the District complies with the requirements of the California Public Contract Code section 3400 et seq. The General Manager is authorized to make the findings required under California Public Contract Code section 3400 et seq. The Notice Inviting Bids or Request for Proposals shall state that a particular material, product, thing, or service is necessary or desirable for any of the following purposes: (1) In order that a Feld test or experiment may be made to determine the product's suitability for future use; (2) In order to match other products in use on a particular public improvement either completed or in the course of completion; (3) In order to obtain a necessary item that is only available from one source; (4) In order to respond to an emergency declared by the District, but only if the declaration is approved by a four-fifths vote of the District's Board of Directors; or OCSD-##-23 IN2653.2 (5) In order to respond to an emergency declared by the state, a state agency, or political subdivision of the state, but only if the facts setting forth the reasons for the finding of the emergency are contained in the public records of the District. Article 6. Protests The District shall afford Interested Parties an opportunity to protest the solicitation of bids and proposals and the award of contracts as set forth in this Article 6. The General Manager shall adopt detailed protest procedures consistent with this Article 6. The protest procedures governing any particular procurement shall be set forth in the Notice Inviting Bids or the Request for Proposals, as applicable. Section 6.01. Solicitation Protests A. Interested Parties may file a Solicitation Protest Statement with the Purchasing Manager on the grounds that a free and open competition has not taken place, or cannot take place, and/or that a particular specification or requirement is impractical, unduly restrictive, or ambiguous. Each Notice Inviting Bids and Request for Proposals shall identify the date and time that the Solicitation Protest Statement is due, the information required to be included in the Solicitation Protest Statement, the evaluation process, and the types of remedies available. B. The Purchasing Manager shall evaluate each Solicitation Protest Statement and determine what actions, if any, will be taken to remedy any deficiency. The decision of the Purchasing Manager shall be final. Section 6.02. Award Protests A. In connection with any competitive selection process, any Interested Party may file an Award Protest Statement with the Purchasing Manager on the ground that a free and open competition has not taken place in connection with the award recommendation. The Purchasing Manager shall not, however, consider any protest based on a finding that a bid or proposal is not responsive. B. Each Notice Inviting Bids and Request for Proposals shall identify the deadline for Award Protest Statements and describe the information required to be included in any Award Protest Statement, the evaluation process, the appeal process, and the types of remedies available. C. The Purchasing Manager shall evaluate each Award Protest Statement and determine what actions, if any, will be taken to remedy any deficiency. D. The Purchasing Manager's decision on an Award Protest Statement may be appealed to the Director of Finance and Administrative Services and OCSD-##-24 IN2653.2 Return to Mende Report the Director of the Department requesting the Goods-of Sarvo ass.Procurement. The Director of Finance and Administrative Services and the Director of the Department requesting the Goods-er SewisesProcurement shall evaluate each Award Protest Statement and determine whether to uphold or reject the Purchasing Manager's determination. For Contracts to be awarded by District staff, the decision of the Director of Finance and the Director of the Department requesting the G;Rodg nF SA •'^^^Procurement shall be final. For Contracts to be awarded by the Board of Directors, the Board may consider any Award Protest Statements in connection with its consideration of the Contract. Section 6.03. Delay in Award A. Execution of any proposed contract shall be delayed pending resolution of any protests unless one or more of the following conditions is present: (1) The items or services being procured are urgently required; (2) Delivery or performance will be unduly delayed by failure to make an award promptly; or (3) Failure to make prompt award will otherwise cause undue harm to the District. Section 6.04. Remedies A. If the final decision maker determines that the award or proposed award was not made in accordance with applicable statutes, regulations, policies and/or procedure, the District, in its sole discretion, may grant any of the following remedies or any other remedy it deems appropriate: (1) Prior to award, the District may issue a new solicitation, make a new selection/award recommendation, or award a contract consistent with applicable statutes, regulations, policies and procedures; (2) Take no further action; or (3) Take any other action that is permitted by law to promote compliance with applicable statutes, regulations, policies and/or procedure. B. In determining the appropriate remedy, if any, the District shall consider all the circumstances surrounding the Notice Inviting Bids or Requests for Proposal and/or award, including, but not limited to: (1) The seriousness of any deficiency found to exist in the contracting process; (2) The effect of the action on the competitive process; (3)Any urgency surrounding the contract requirement; and (4) The effect that implementing the remedy will have on the District. OCSD-##-25 IN2653.2 C. Nothing contained herein shall be construed to act as a limitation on the District's choice of remedies or confer any right upon any Interested Party or affected party to a remedy. Section 6.05. Public Documents Solicitation Protest Statements and Award Protest Statements are public documents. The District will notify the affected parties when a protest has been submitted, and will provide copies of the Protest Statements to the affected parties upon written request. Article 7. Delegation of Authority to Award Contracts This Article 7 applies to all Contracts for Goods, Services, and Public Works Projects entered into by the District. Section 7.01. Award Authorization A. Delegation by General Manager. The General Manager shall establish written procedures governing the delegation of authority to award and execute Contracts consistent with this Ordinance. Upon delegation of authority by the General Manager, each Department HeadDirector may further delegate authority to initiate a written Requisition consistent with the General Manager's written procedures. B. Original Contracts and Contingencies. The Board of Directors hereby delegates the authority to award Contracts within specified limits as follows: r I j Delegated Authority j Authorized Action ------------------------------------------------------ ------------a General Manager/ Authorization to approve and execute Contracts Assistant General for budgeted procurements up to $100,000, Manager including any contingency. All procurements over $50,000 are to be reported to the Board of Directors on a quarterly basis. j Standing Committees j Authorization to approve procurements over 1 $100,000 up to $200,000, plus a contingency of up to 50%, for a total spending authority of up to $300,000 for each Contract. j Board of Directors j All original Contracts for procurements that 1 exceed the limits of the Standing Committees shall j be approved by the Board of Directors. OCSD-##-26 lN2653.2 Return to Mende Report All or g nal Contracts for procurements that exceed these I m is shall be approved by the Board of rectors C. Amendments and Change Orders. The Board of Directors hereby delegates the authority to approve of Amendments and Change Orders in any amount as follows: r 'I j Delegated Authority Authorized Action k----------------4------------------------- -------------------------a General Manager/ (1) Authorization to approve and execute Assistant General Amendments and Change Orders as long as (1) the Manager Amendment or Change Order is recommended by the applicable Department Director, and (2) the Amendment or Change Order does not change the contract price or the new contract price is within the approved contingency. (2) Authorization to approve and execute Amendments to chemical Contracts, unless the Contract unit price has been--changed increased from the eriginafamaun unit price approved by the District's Board of Directors. Unit price increases in chemical Contracts require Board of Directors approval. --------------------------------------------------' Section 7.02. Task Orders The Board of Directors hereby delegates the authority to award Task Orders within specified limits as follows: Delegated Authority rAuthorized Action General Manager/ j Authorization to approve, upon the 1 Assistant General Manager recommendation of the Department Director, and j j execute Task Orders and/or Amendments to the Task Orders provided the cumulative total of the Task Order and Amendments thereto do not exceed $100,000. �I, Standing Committees II Authorization to approve, upon the 1 recommendation of the General Manager/Assistant General Manager, Task Orders and/or Amendments to the Task Orders over $100,000 provided the cumulative total of the Task Order and Amendments do not exceed $200,000. OCSD-##-27 IN2653.2 I �I, Board of Directors 1 All Task Orders and/or amendments that exceed 1 $200,000 shall be approved by the Board of j Directors. All Task Ordersthat exceed these these mits she' )ara of n rectors. Section 7.03. Time Extensions to Public Works Projects The General Manager may approve and execute Change Orders for Public Works Project Contract time extensions that do not involve any increase in compensation over the approved Contingency. Article 8. Ethics Section 8.01. Unlawful Consideration Prohibited District Officials shall neither solicit nor receive bribes, rebates, kickbacks, and/or any other unlawful consideration from any contracting party, or any party seeking a Contract with the District, in exchange for favorable treatment or any other action. Section 8.02. Conflicts of Interest A. Compliance with the Political Reform Act. District Officials shall not make any Contracts, participate in the making of any Contracts, or in any way attempt to use their official positions to influence any decision on any Contracts, in violation of Government Code Sections 87100 et seq. B. Compliance with Government Code & 1090. Without limiting the requirements of Part A above, no District Official shall make any Contract, participate in the making of any Contract, or in any way attempt to use his or her official position to influence any decision on a Contract, in violation of California Government Code Section 1090. C. Reauirements Applicable to Consultants. Consultants designated by the District's Conflict of Interest Code shall comply in all respects with Government Code Section 87100 et seq., and it's implementing regulations. Article 9. MoRnAllaneous Section 9.01. OCSD-##-28 1042653.2 Return to Mende Report Any Contract entered 'rite wh'nh fn'Is 'n any respect to comply w th the erny n'nnn of this Ordinance • he voided by the Board of Directors n its sole and absolute disGret on. Any employee who willfully and knowingly v olates any prov s on of this Seetlori Axr-9 02. €ffeetiTeDate . , 2014, upon adopt on by the Board of DirectorsSection .03. Repeal of Resolution No. OGSD 07 , a2-1-z works nent antracta' profess contracts; and delegat'o of authority to , plement said policies and procedures" he.eby r ale•! in its BRt r•d•• D renters of the•Orange County Can tat on D sti nt Cstnh 'sh'ng Op 'n for the payment of mandatory and stat ten• fop onto. then Iho to the Delegat OR of Authe.lh:' is heFeby Fepe led :R its eRtiFety oncnh.t:on No Oren 99_99 anttied "A apse t'on of the Onprd Of D'reators of the Orange County Sanitation D'str at amending Sect'o to expand the .e eS fe. e.e..e....l .. ee.f ..e to :..alp do the ri .•.h....e of or't'Gal, tin or goo ds or And to define hest Val s hereby repealed 'n is entirety Co..t:o.. 1001 l`art:f:.-2t:o.. .....1 P..hl:ogt:ori The QlPFk of the Qoe..f shall ee N:fy to the adopt on of this Ord n and she to be b! shed newspaper of generals lat'a •ith'n SC days rest by law. AHiele-!&Article 9. Appendix A Definitions Amendment means a properly executed written agreement entered into and between the District and the Contractor, or issued by the District, covering modifications to the original Contract and which may result in adjustments to provisions of the Contract, including, but not limited to, terms, scope of work, compensation, and/or period of performance. OCSD-##-29 IN2653.2 Award Protest Statement shall mean a written objection to the award recommendation prior to final action to award the contract, which shall be submitted after receipt of sealed bids/proposals, but before award of a contract, as specified herein. Best value means the overall combination of quality, price, and other elements of a proposal/bid (or combination of several proposals/bids) that, when considered together, provide the greatest overall benefit in response to the requirements described in the solicitation documents. Change Order means a properly executed written agreement entered into and between the District and the Contractor, or unilaterally issued by the District, covering modifications to the original Contract, and which may result in adjustments to the provisions of the Contract, including, but not limited to, terms, scope of work, cost and/or period of performance. Competitive Sealed Bids means a selection process whereby prospective Contractors submit sealed bids and the Contract is awarded to the lowest Responsive and Responsible Bidder. Competitive Sealed Proposals means a selection process whereby prospective Contractors submit sealed proposals and the Contract is awarded to the proposal that best meets the criteria specified in the Request for Proposals. Contingency means an amount above the original Contract price, as awarded by the delegated authority, established at the time of Contract award, as may be amended thereafter, to be used for Contract changes. Contract means any type of agreement for the purchase of Goods, Services, and/or Public Works Projects. Contracts may be labeled in various different ways, including, but not limited to, "contract" "agreement," "purchase order," and "task order." Contractor means any person or entity that has a Contract with the District. Department means one of the District's designated departments. Design-Bid-Build means a selection process for the award of Public Works Contracts involving three basic steps: (1) the District hires a design professional to prepare detailed plans and specifications or the District prepares detailed plans and specifications; (2) the District solicits bids from construction firms based on the detailed plans and specifications; and (3) the District awards the Contract to the lowest Responsive and Responsible Bidder. Design-Build means a selection process for the award of Public Works Contracts involving two basic steps: (1) the agency solicits proposals from pre-qualified firms to design and construct a project; and (2) depending on the award criteria set forth in the Request for Proposals, the agency awards the Contract to either OCSD-##-30 IN2653.2 Return to Mende Report (a) the lowest Responsive and Responsible Bidder, or (b) the proposal that presents the "best value:' Director means a director of one of the District's designated departments, or his or her designee(s). Director of Engineering means the District's Director of Engineering or his or her designee(s). District means the Orange County Sanitation District. District Board or Board means the Board of Directors of the Orange County Sanitation District. District Official means any member of the District's Board of Directors, any District employee, and any District consultant that is designated under the District's Conflict of Interest Code. General Manager means the General Manager of the District, or his or her designee(s). Goods means fixed, movable, disposable, and/or reusable products, commodities, equipment, materials, supplies or items used by the District, and excludes land or any interest in real property. Interested Party shall mean: (1) on solicitation, all bidders or proposers, and prospective bidders or proposers, on on award, the unsuccessful bidder or proposer with a direct economic interest in the outcome of their protest. Mailing means transmission by United States Postal Service, electronic mail, or facsimile. Negotiated Procurement means a selection process whereby the Purchasing Manager identifies one or more prospective Contractors of his or her choice, negotiates with one or more of them, and awards the Contract to one of them based on the best interest of the District. Notice Inviting Bids/Invitation for Bids means all documents, whether attached or incorporated by reference, utilized for soliciting bids. Procurement means buying, purchasing, renting, leasing, or otherwise acquiring any goods, services, construction, construction services, or professional services.- including professional design services. It also includes all functions that pertain to the obtaining of any goods, services, or construction, including description of requirements, election and solicitation of sources, preparation and award of contract, and all phases of contract administration. OCSD-##-31 IN2653.2 Professional Services means (i) services provided by professionals that involve specialized judgment, skill, and expertise, and (ii) incidental services that professionals, and those in their employ, may logically or justifiably perform. Professional Services include, but are not limited to, services provided by easy%c arch,tecturalenv ron�,. went^ , land surveying construct on ^��gernE;rtt,accounting, financial, information technology, human resources consultation and advocacy, legislative advocacy, and scientific research/consulting fines. Professional Design Services means engineering;architectural, landscape architectural, engineering, environmental, land surveying, or construction rp oleo management, and SiFRilaF PFefessienal Servines services retained by the District in connection with, but not limited to, construction, alteration, and/or repair projects. Public Works/Public Works Project means a project involving the construction, erection, or alteration of any type of structure, building, or improvement other than sewerage maintenance or repair projects. Purchasing Manager means the District's Contracts, Purchasing and Materials Management Manager, or his or her designee(s). Reguest for Proposals means all documents, whether attached or incorporated by reference, utilized for soliciting proposals. Request for Qualifications means a request for detailed information concerning the qualifications of prospective Contractors. Requisition means an approved written document making a request for Goods and Services Responsible Bidder means a bidder who has demonstrated the attribute of trustworthiness, as well as quality, fitness, capacity, and experience to satisfactorily perform the requested services or project. Responsive Bidder/Proposer means a bidder/proposer who has submitted a bid/proposal which conforms in all material respects to the Notice Inviting Bids/Invitation for Bids/Request for Proposals. Services means the furnishing of materials labor, time, or effort by a Contractor. Services include both general services (janitorial, landscape, repair, maintenance, etc.) professional services, and professional design services, unless otherwise specified. Sealed (Bids or Proposals) means the submittal of bids or proposals, either in paper or electronic format, whereby the bid or proposal documents are opened at a specific time and not before. OCSD-##-32 IN2653.2 Return to Mende Report Sole Source Procurement means the acquisition of Goods and/or Services from a single source. Solicitation Protest Statement shall mean a written objection during the solicitation phase of the procurement, which shall be submitted prior to the bid/proposal due date as specified herein. Standing Committee means one of the permanent committees designated by the Board of Directors as "Standing Committees." Task Order means a written document pursuant to a Contract issued by the Purchasing Manager which provides for the issuance of orders, containing a defined budget, scope of services, and schedule, and authorizes a Contractor to incur a specified amount for the performance of tasks. Article 10. Miscellaneous Section 10.01. Noncompliance Any Contract entered into which fails in any respect to comply with the provisions of this Ordinance may be voided by the Board of Directors in its sole and absolute discretion. Any employee who willfully and knowingly violates any provision of this Ordinance may be subject to disciplinary action. Section 10.02. Effective Date This Ordinance No. OCSD- shall take effect , upon adoption by the Board of Directors. Section 10.03. Repeal of Ordinance No. OCSD-44. Ordinance No. OCSD-44, entitled "An Ordinance of the Board of Directors of Orange County Sanitation District Establishing Requirements and Procedures for the Purchase of Goods. Services, and Public Works Projects" is hereby repealed in its entirety. Section 10.04. Certification and Publication. The Clerk of the Board shall certify to the adoption of this Ordinance, and shall cause a summary to be published in a newspaper of general circulation within 15 days as required by law. PASSED AND ADOPTED by a majority of the Board of Directors of the Orange County Sanitation District at a Regular Meeting held NeaeMbeF-20,2033 2015. Trey-EdgarTom Beamish OCSD-##-33 IN2653.2 Chairman of the Board of Directors Orange County Sanitation D strict ATTEST: '.'v.m-E-r.ya.v Clerk of the Board Orange County Sanitation D strict APPROVED AS TO FORM: Bradley R. Hogin � —General Counsel OCSD-##-34 IN2653.2 Return to Mende Report STATE OF CALIFORNIA ) )SS. COUNTY OF ORANGE ) I PAARIA -,�,-,-.L,^"^' ^, Clerk of the Board of Directors of Orange County Sanitation District, do hereby certify that the above and foregoing Ordinance No. OCSD44- was introduced for first reading at a regular meeting of said Board on the 23�_ day of Oe -k— On 2015, and passed and adopted at a regular meeting of said Board on the 20"_ day of Nevember,M , 2015, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand this 2e— day of November, 2843 . 2015. MaFia F. Ayala Clerk of the Board Orange County Sanitation District OCSD-##-35 IN2653.2 ADMINISTRATION COMMITTEE Meebng Date To ad.ofDir. 03,11,15 -- AGENDA REPORT Item Number Item Number a Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance &Administrative Services SUBJECT: STATUS OF 2015-16 INSURANCE RENEWALS GENERAL MANAGER'S RECOMMENDATION Information Only. SUMMARY Historically, the Administration Committee has asked for status updates regarding the renewals of major insurance policies each year. The Risk Management Division and the Sanitation District's operational insurance broker begin the process of renewal each January, and final quotes are typically received in June shortly before the beginning of the new fiscal year. The Sanitation District budget provides funds for the renewal of the following four major insurances for District operations: 1) Excess General Liability Insurance 2) Excess Workers' Compensation 3) All-Risk Property and Flood insurance 4) Boiler& Machinery insurance PRIOR COMMITTEE/BOARD ACTIONS June 2014 - The Board approved renewal of the above four policies for the period July 1, 2014 through June 30, 2015. ADDITIONAL INFORMATION 1) Excess General Liability Insurance Program The Sanitation District's Excess General Liability Insurance Program is currently provided through the California Municipal Excess Liability Program (CAMEL) and its sister program, the Alliant National Municipal Liability Program (ANML). The Sanitation District has participated in the CAMEL program since FY 1996-97. Page 1 of 3 ADDITIONAL INFORMATION (cont'd) This program currently provides the Sanitation District with a $40 million policy of comprehensive coverage for municipal liability, bodily injury and property damage, and personal injury. The program was structured to also include Employment Practices, and Public Officials Errors & Omissions coverage. The $40 million coverage has a self-insured deductible of $500,000. Since 1997, the Employment Practices portion of coverage has been enhanced from a $2 million sub-limit to the full policy limit. The actual insurance coverage currently consists of three separate layers. The first layer is the "Basic" $10 million program with self-insured retention of $500,000. The second layer consists of $20 million of coverage in excess of the first layer of $10 million. The third layer is $10 million of coverage in excess of the second layer. The premium for 2014-15 for the three layers was $384,440. 2) Excess Workers' Compensation Insurance The Excess Workers' Compensation insurance coverage is with the California State Association of Counties Excess Insurance Authority (CSAC EIA). The Sanitation District has participated in this program or its predecessor since 2003. Excess Workers' Compensation Program currently provides so-called "Statutory" (unlimited) coverage with a self-insured retention (SIR), or deductible, of$750,000. The use of Excess Workers' Compensation Insurance dates back to the late 1980's. At that time, the Fiscal Policy Committee approved an SIR, or deductible, of $250,OOO, for such coverage. Due to the hardening of the workers' compensation market, this deductible was raised to $500,000 beginning in FY 2002-03 through a policy with Employers Reinsurance Corporation (ERC) that provided coverage at the time of $25 million with a self-insured retention (SIR), or deductible of$500,000. Some additional risk may be associated with the CSAC EIA joint powers authority in that a premium surcharge can be assessed to individual members if an unusually large number of losses were to occur outside of the actuarial evaluation estimates. However, historically the CSAC EIA premiums for excess workers compensation have been so much less than competing quotes available to the Sanitation District that even if there were a surcharge, the cost might still continue to be cheaper. The renewal of the Excess Workers' Compensation Insurance for the period July 1, 2014 through June 30, 2015 was at an estimated premium of$222,527 based on the estimated 2014-15 payroll. Since the premium itself is based on final payroll, the Sanitation District will not know the exact final premium until the year is over. Page 2 of 3 ADDITIONAL INFORMATION (cont'd) 3) All-Risk Property and Flood Insurance The All-Risk Property and Flood Insurance Program (Property Insurance) provides for comprehensive coverage for much of the Sanitation District's real and personal property regarding virtually all perils including fire, flood, and business interruption. The Sanitation District previously carried earthquake insurance as part of its Property Insurance, but in the last few years earthquake insurance has been impossible to obtain or not cost-effective. The Sanitation District asks its insurance broker each year to survey the market to see if rates have changed. Current Property Insurance limits are $1 billion for most perils other than flood and earthquakes, and $300 million for flood, with many sub-limits for various situations. In order to reach $1 billion in limits, the broker had to arrange for more than a dozen different insurers. The SIR is $250,000 per occurrence for most types of losses. Since the late 1990's, the Property Insurance has been with a nationwide joint purchase property insurance program called Public Entity Property Insurance Program (PEPIP), one of the world's largest property programs. It is important to note that this joint purchase property insurance program offers the purchasing power of numerous large public entities without the pooling or sharing of coverage or losses. The renewal of All-Risk Property and Flood Insurance for the period July 1, 2014 through June 30, 2015 was at a premium of$682,006. 4) Boiler& Machinery Insurance The Boiler & Machinery insurance program provides comprehensive coverage for loss caused by machinery breakdown and explosion of steam boilers or other covered process equipment, including damage to the equipment itself and damage to other property caused by covered accident. The current Boiler & Machinery insurance program provides coverage ($100 million per occurrence with deductibles ranging from $25,000 to $350,000) for losses caused by covered machinery breakdown (e.g., motors, steam turbines, digesters, co-gen engines). Damages to the equipment, as well as damages to other property and improvements caused by the machinery breakdown, are covered by the boiler& machinery insurance. This program augments the Sanitation District's all-risk property insurance that covers perils such as fire and flood. The renewal of the Boiler & Machinery Insurance Program for the period July 1, 2014 through June 30, 2015 was at $23,180. Page 3 of 3 ADMINISTRATION COMMITTEE Meeting Date To ad.of Dir. 03/11/15 -- AGENDA REPORT Item Number Item Number s Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance &Administrative Services SUBJECT: FY 2015-16 DISTRICT BUDGET UPDATE GENERAL MANAGER'S RECOMMENDATION Information Only. SUMMARY For continued discussion on the development of the District's Proposed Update to the FY 2015-16 Budget, detail of the District's revenues has been provided below. The Proposed Budget Update will be presented for adoption at the June 24, 2015 Board meeting. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION N/A CEQA N/A BUDGET/PURCHASING ORDINANCE COMPLIANCE N/A ATTACHMENT The following attachment(s) maybe viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: FY 2015-16 Budget Development Revenue Detail Page 1 of 4 FY 2015-16 Budget Development Revenue Detail Revenue Summary (in millions) Category 2013-14 2014-15 2015-16 Actual Adopted Adopted Revenues: Service Fees 273.5 288.9 296.3 Permit User Fees 14.4 13.7 14.0 Capital Facility Capacity Charge 14.1 11.4 11.9 Property Taxes 74.9 77.7 81.6 Interest 6.5 13.1 14.7 Other Revenue 28.7 21.8 20.5 Debt Proceeds 0.0 0.0 0.0 Total Revenue $412.1 $426.6 $439.0 The District has a variety of revenue sources available for operating and capital expenses. The major revenue sources are as follows: • General Sewer Service Fees Industrial Waste Permit User Fees Capital Facilities Capacity Charges (CFCC) • Property Taxes • Interest Earnings Other Miscellaneous Revenue Debt Proceeds 2014-15 2015-16 General Service Fees— $288.9M $296.3M User fees are ongoing fees for service paid by customers connected to the sewer system. A property owner, or user, does not pay user fees until connected to the sewer system and receiving services. Once connected, a user is responsible for his share of the system's costs, both fixed and variable, in proportion to his demand on the system. These fees are for both Single Family Residences (SFR) and Multiple Family Residences (MFR). Based upon the five-year sewer service fee rate schedule approved by the Board in March 2013, the single family residential rate (the underlying basis for all sewer rates) will increase by 2.2 percent ($7)to $323in FY 2015-16. These rates are still well below the average annual sewer rate currently being charged throughout the state. Page 2 of 4 2014-15 2015-16 Industrial Waste Permit User Fees— $13.7M $14.OM Fees paid by large industrial and commercial properties owners connected to the sewer system. These fees are for the owner's share of the system's costs, both fixed and variable, in proportion to his demand on the system. Since the inception of the Permit User Fee program in 1970, users of the District's system that discharge high volumes or high strength wastewater have been required to obtain a discharge permit and pay extra fees for the costs of service. Capital Facilities Capacity Charges (CFCC) — $11.4M $11.9M Capital Facilities Capacity Charge is a one-time, non- discriminatory charge imposed at the time a building or structure is newly connected to the District's system, directly or indirectly, or an existing structure or category of use is expanded or increased. This charge pays for District facilities in existence at the time the charge is imposed, or to pay for new facilities to be constructed in the future, that are of benefit to the property being charged. Property Taxes — $77.7M $81.6M The County is permitted by State law (Proposition 13) to levy taxes at 1% of full market value (at time of purchase) and can increase the assessed value no more than 2% per year. The District receives a share of the basic levy proportionate to what was received in the 1976 to 1978 period less $3.5 million, the amount that represents the State's permanent annual diversion from special districts to school districts that began in 1992-93. The District's share of this revenue is dedicated for the payment of debt service. Interest Earnings— $13.1M $14.7M Interest earnings are generated from the investment of accumulated reserves consisting of a cash Flow/contingency, a capital improvement, a renewal/replacement, and a self- insurance reserve. Other Revenue— $21.8M $20.5M Other revenue includes $13.7 million and $14.0 from the Irvine Ranch Water District (IRWD)for capital and equity charges and $2.5 million and $2.7 million for sewer services provided to the Santa Ana Watershed Protection Authority (SAW PA) and the Sunset Beach Sanitary District for FY 2014-15 and 2015-16, respectively. Page 3 of 4 2014-15 2015-16 Debt Proceeds— $O.OM $O.OM Certificates of Participation (COPS) are the District's primary mechanism for financing capital projects. COPS are repayment obligations based on a lease or installment sale agreement. COPs are viewed by the State of California as a share in an installment arrangement where the District serves as the purchaser. No new debt issuances are projected in the near-term. Financing If is necessary that the District utilize debt financing to meet its total obligations and to meet projected construction schedules, the District uses long-term borrowing (Certificates of Participation (COP)) for capital improvements that cannot be financed from current revenue. Before any new debt is issued, the impact of debt service payments on total annual fixed costs is analyzed. No new debt issuance is currently being planned. The District Maintains its AAA Rating The District maintains ratings of "AAA" from Standards and Poor and "AA"from Fitch. A triple A rating is the highest obtainable for any governmental agency. In order to maintain this rating, the District adheres to its 2001 Debt Policy and coverage ratios requirements. This Board-adopted policy serves as the agency's guide in the management of existing debt and in the issuance of future debt. OCSD Has Contractual Covenants The District does have contractual covenants within the existing COP agreements which require minimum coverage ratios of 1.25. The minimum coverage ratio is the ratio of net annual revenues available for debt service requirements to total annual debt service requirements for all senior lien COP debt. The coverage ratio for senior lien COP debt was approved at 3.05 and 3.14 for FY 2014-15 and 2015-16, respectively. Page 4 of 4 ADMINISTRATION COMMITTEE Neebng Dare To ad.of Dir. 03,11,05 -- AGENDA REPORT Item Number Item Number 6 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Bob Ghirelli, Assistant General Manager SUBJECT: WORKFORCE PLANNING GENERAL MANAGER'S RECOMMENDATION Information Only. SUMMARY Staff will present an informational overview on Workforce Planning. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION N/A CEQA N/A BUDGET/PURCHASING ORDINANCE COMPLIANCE N/A ATTACHMENT N/A Page 1 of 1 ORANGE COUNTY SANITATION DISTRICT Agenda Terminology Glossary Glossary of Terms and Abbreviations AQMD Air Quality Management District ASCE American Society of Civil Engineers BOD Biochemical Oxygen Demand CARB California Air Resources Board CASA California Association of Sanitation Agencies CCTV Closed Circuit Television CEQA California Environmental Quality Act CRWQCB California Regional Water Quality Control Board CWA Clean Water Act CWEA California Water Environment Association EIR Environmental Impact Report EMT Executive Management Team EPA U.S. Environmental Protection Agency FOG Fats, Oils, and Grease FSSD Facilities Support Services Department gpd Gallons per day GWR System Groundwater Replenishment System (also called GWRS) ICS Incident Command System IERP Integrated Emergency Control Plan LOS Level of Service MGD Million gallons per day NACWA National Association of Clean Water Agencies NPDES National Pollutant Discharge Elimination System NWRI National Water Research Institute O&M Operations and Maintenance OCCOG Orange County Council of Governments OCHCA Orange County Health Care Agency OCSD Orange County Sanitation District OCWD Orange County Water District GOBS Ocean Outfall Booster Station OSHA Occupational Safety and Health Administration POTW Publicly Owned Treatment Works ppm Parts per million RFP Request For Proposal RWQCB Regional Water Quality Control Board SARFPA Santa Ana River Flood Protection Agency Glossary of Terms and Abbreviations SARI Santa Ana River Inceptor SARWQCB Santa Ana Regional Water Quality Control Board SAWPA Santa Ana Watershed Project Authority SCADA Supervisory Control and Data Acquisition system SCAP Southern California Alliance of Publicly Owned Treatment Works SCAQMD South Coast Air Quality Management District SOCWA South Orange County Wastewater Authority SSMP Sanitary Sewer Management Plan SSO Sanitary Sewer Overflow SWRCB State Water Resources Control Board TDS Total Dissolved Solids TMDL Total Maximum Daily Load TSS Total Suspended Solids WDR Waste Discharge Requirements WEF Water Environment Federation WERF Water Environment Research Foundation Activated-sludge process — A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen, and consume dissolved nutrients in the wastewater. Benthos — The community of organisms, such as sea stars, worms and shrimp, which live on, in, or near the seabed, also know as the benthic zone. Biochemical Oxygen Demand (BOD)—The amount of oxygen used when organic matter undergoes decomposition by microorganisms. Testing for BOO is done to assess the amount of organic matter in water. Biosolids — Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high-quality product can be recycled as a soil amendment on farm land or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. Capital Improvement Program (CIP) — Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities. Coliform bacteria—A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere used as indicators of sewage pollution. E. coli are the most common bacteria in wastewater. Collections system — In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. Certificate of Participation (COP) —A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. Glossary of Terms and Abbreviations Contaminants of Potential Concern (CPC) — Pharmaceuticals, hormones, and other organic wastewater contaminants. Dilution to Threshold (D!f) — the dilution at which the majority of the people detect the odor becomes the DrT for that air sample. Greenhouse gases — In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming ("greenhouse effect"). Groundwater Replenishment (GWR) System — A joint water reclamation project that proactively responds to Southern California's current and future water needs. This joint project between the Orange County Water District and the Orange County Sanitation District provides 70 million gallons a day of drinking quality water to replenish the local groundwater supply. Levels of Service (LOS)—Goals to support environmental and public expectations for performance. NDMA— N-Nitrosodimethylamine is an N-nitrosoamine suspected cancer-causing agent. It has been found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide with extra ultra-violet treatment. National Biosolids Partnership (NBP) — An alliance of the National Association of Clean Water Agencies (NACWA) and Water Environment Federation (WEF), with advisory support from the U.S. Environmental Protection Agency (EPA). NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation in order to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. Plume—A visible or measurable concentration of discharge from a stationary source or fixed facility. Publicly-owned Treatment Works (POTW)— Municipal wastewater treatment plant. Santa Ana River Interceptor (SARI) Line — A regional brine line designed to convey 30 million gallons per day (MGD) of non-reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal, after treatment. Sanitary sewer — Separate sewer systems specifically for the carrying of domestic and industrial wastewater. Combined sewers carry both wastewater and urban run-off. South Coast Air Quality Management District (SCAQMD) — Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry. Secondary treatment — Biological wastewater treatment, particularly the activated-sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater. Sludge—Untreated solid material created by the treatment of wastewater. Total suspended solids (TSS)—The amount of solids floating and in suspension in wastewater. Trickling filter — A biological secondary treatment process in which bacteria and other microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in wastewater as it trickles over them. Glossary of Terms and Abbreviations Urban runoff — Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans. Wastewater—Any water that enters the sanitary sewer. Watershed —A land area from which water drains to a particular water body. OCSD's service area is in the Santa Ana River Watershed.