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HomeMy WebLinkAbout04-11-2018 Administration Committee Meeting Agenda04/11/2018 Administration Committee Agenda Page 1 of 3 Orange County Sanitation District Regular Meeting of the ADMINISTRATION COMMITTEE Wednesday, April 11, 2018 5:00 P.M. Administration Building Board Room 10844 Ellis Avenue Fountain Valley, CA (714) 593-7433 AGENDA CALL TO ORDER: PLEDGE OF ALLEGIANCE: DECLARATION OF QUORUM: (Clerk of the Board) PUBLIC COMMENTS: If you wish to address the Committee on any item, please complete a Speaker’s Form (located at the table outside of the Board Room) and submit it to the Clerk of the Board or notify the Clerk of the Board the item number on which you want to speak. Speakers will be recognized by the Chairman and 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. CONSENT CALENDAR: The Consent Calendar Items are considered to be routine and will be enacted, by the Committee, after one motion, without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 1. APPROVAL OF MINUTES (Clerk of the Board) RECOMMENDATION: Approve Minutes of the March 14, 2018 Administration Committee Meeting. 2. 2018 CONFLICT OF INTEREST CODE (Clerk of the Board) RECOMMENDATION: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 18-XX entitled, “A Resolution of the Board of Directors of Orange County Sanitation District adopting a Conflict of Interest Code which supersedes all prior Conflict of Interest Codes and amendments previously adopted.” 04/11/2018 Administration Committee Agenda Page 2 of 3 UNON-CONSENT: 3. PROPOSED PURCHASING ORDINANCE NO. OCSD-XX (Lorenzo Tyner) URECOMMENDATION:U Recommend to the Board of Directors to: A. Introduce Ordinance No. OCSD-XX, 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; and Repealing Ordinance No. OCSD-47”; B. Motion to read Ordinance No. OCSD-XX by title only and waive reading of said entire Ordinance on April 25, 2018; C. Set May 23, 2018 as the date for the second reading and adoption of Ordinance No. OCSD-XX; and D. Direct the Clerk of the Board to publish summaries of the Ordinance as required by law. UINFORMATION ITEMS:U 4. STATUS OF 2018-19 PROPERTY-LIABILITY INSURANCE RENEWALS (Celia Chandler) UDEPARTMENT HEAD REPORTS:U UCLOSED SESSION: None. UOTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: UADJOURNMENT: The next Administration Committee meeting is scheduled for Wednesday, May 9, 2018 at 5:00 p.m. 04/11/2018 Administration Committee Agenda Page 3 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. Agenda Description: The agenda provides a brief general description of each item of business to be considered or discussed. The recommended action does not indicate what action will be taken. The Board of Directors may take any action which is deemed appropriate. 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 Clerk of the Board (714) 593-7433 klore@ocsd.com For any questions on the agenda, Committee members may contact staff at: General Manager James Herberg (714) 593-7300 jherberg@ocsd.com Assistant General Manager Bob Ghirelli (714) 593-7400 rghirelli@ocsd.com Assistant General Manager Rob Thompson (714) 593-7310 rthompson@ocsd.com Director of Finance and Administrative Services Lorenzo Tyner (714) 593-7550 ltyner@ocsd.com Director of Human Resources Celia Chandler (714) 593-7202 cchandler@ocsd.com 03/14/2018 Administration Committee Minutes Page 1 of 3 MINUTES OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday, March 14, 2018 at 5:00 P.M. A regular meeting of the Administration Committee of the Orange County Sanitation District was called to order by Committee Chairman Wanke on March 14, 2018 at 5:00 p.m. in the Administration Building of the Orange County Sanitation District. Committee Chairman Wanke led the Flag Salute. A quorum was declared present as follows: COMMITTEE MEMBERS PRESENT: Chad Wanke, Chairman Donald P. Wagner, Vice-Chairman Jim Ferryman Peter Kim Richard Murphy Steve Nagel Charlie Nguyen Glenn Parker Erik Peterson (Alternate) Teresa Smith Greg Sebourn, Board Chairman David Shawver, Board Vice-Chairman COMMITTEE MEMBERS ABSENT: Sal Tinajero STAFF PRESENT: Bob Ghirelli, Assistant General Manager Rob Thompson, Director of Engineering Celia Chandler, Director of Human Resources Jim Colston, Director of Environmental Services Lorenzo Tyner, Director of Finance & Administrative Services Kelly Lore, Clerk of the Board Jennifer Cabral Mike Dorman Al Garcia Randall Kleinman Man Nguyen Ddaze Phuong Roya Sohanaki Richard Spencer Mike White OTHERS PRESENT: Brad Hogin, General Counsel PUBLIC COMMENTS: None. REPORTS: Director of Finance and Administrative Services, Lorenzo Tyner stated that for the 25th consecutive year, Orange County Sanitation District received the Certificate of Achievement for Excellence in Financial Reporting for the FY 2017 CAFR. Committee Chair Wanke did not provide a report. ITEM NO. 1 03/14/2018 Administration Committee Minutes Page 2 of 3 CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the February 14, 2018 Administration Committee Meeting. AYES: Ferryman, Kim, Nagel, Parker, Sebourn, Shawver, T. Smith, Wanke and Wagner NOES: None ABSTENTIONS: Murphy and Peterson (Alternate) ABSENT: Nguyen and Tinajero INFORMATION ITEMS: 2. SUPERVISORY CONTROL AND DATA ACQUISITION (SCADA) SYSTEM AT PLANT NO. 1, PLANT NO. 2, AND PUMP STATION (Rob Thompson) Assistant General Manager Rob Thompson introduced Engineering Manager Mike Dorman who provided an informative PowerPoint presentation regarding the SCADA system including: Network architecture; processes; logic controllers; maintainability plan, Human Machine Interface system; network equipment and the future implementation and upgrade schedules. Director Nguyen arrived at 5:15 p.m. 3. BUSINESS CONTINUITY PROGRAM UPDATE (Celia Chandler) Principal Financial Analyst Randall Kleinman provided a PowerPoint presentation regarding the necessity of a continuity of operations in the event of an emergency, the planning efforts completed by staff in preparation of the plan, and the essential functions of the plan. 4. FY 2018-19 AND FY 2019-20 ORANGE COUNTY SANITATION DISTRICT BUDGET UPDATE (Lorenzo Tyner) Mr. Tyner introduced Controller Mike White who provided a PowerPoint presentation regarding the revenues and reserves for Fiscal Years 2018-19 and 2019-20 including: Four major categories of revenues; Fees and charges; General User Fees; Ten largest Industrial user; Property tax rise with continuing economic recovery; debt proceeds; reserve policy summary and criteria summary. Mr. White, Mr. Tyner and Mr. Assistant General Manager Rob Thompson responded to questions regarding the reserve factors, planning for catastrophic events, protection of assets and fee determination. 03/14/2018 Administration Committee Minutes Page 3 of 3 DEPARTMENT HEAD REPORTS: None. CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: Board Chairman Sebourn announced that General Manager Jim Herberg is absent due to the passing of his mother. ADJOURNMENT: Committee Chair Wanke declared the meeting adjourned in memory of Mrs. Marie Herberg, at 5:46 p.m. to the next regularly scheduled meeting of Wednesday, April 11, 2018 at 5:00 p.m. Submitted by: _____________________ Kelly A. Lore, MMC Clerk of the Board Page 1 of 2 ADMINISTRATION COMMITTEE Meeting Date 04/11/18 To Bd. of Dir. 04/25/18 AGENDA REPORT Item Number 2 Item Number Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Kelly A. Lore, Clerk of the Board SUBJECT: 2018 CONFLICT OF INTEREST CODE GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 18-XX entitled, “A Resolution of the Board of Directors of Orange County Sanitation District adopting a Conflict of Interest Code which supersedes all prior Conflict of Interest Codes and amendments previously adopted.” BACKGROUND The last biennial review, and formal amendment, to the Orange County Sanitation District’s Conflict of Interest Code was completed in March of 2017. Although the Political Reform Act requires that every local agency review its Conflict of Interest Code biennially (which would bring forth the next amendment in 2019), staff is proposing this new amendment in order to reflect the current positions of those designated employees that are required to file statements of economic interests RELEVANT STANDARDS • Political Reform Act, Government Code Sections 81000, et seq. • California Government Code Sections 87300-87306 • Fair Political Practices Commission (2 Cal. Code of Regs. Section 18100, et seq.) PROBLEM The position of Principal Financial Analyst has been eliminated and all employees within that position have been reclassified to Principal Staff Analyst. These positions are required to file statements of economic interest. PROPOSED SOLUTION Staff recommends that the Board of Directors adopt the updated 2018 Conflict of Interest Code to reflect the following changes: • Deletion of Principal Financial Analyst (reclassified to Principal Staff Analyst) • Addition of Principal Staff Analyst (deletion of Principal Financial Analyst) If approved by the Board, the newly approved code will be forwarded to the County of Orange for amendment approval. Page 2 of 2 TIMING CONCERNS The changes in position control have taken place and therefore cannot wait until a future meeting. RAMIFICATIONS OF NOT TAKING ACTION Non-compliance with state law. PRIOR COMMITTEE/BOARD ACTIONS March 2017 - Board of Directors amended the Conflict of Interest Code and approved Resolution No. OCSD 17-03. BUDGET/PURCHASING ORDINANCE COMPLIANCE N/A ATTACHMENTS The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Draft Resolution No. OCSD 18-XX • 2018 DRAFT Conflict of Interest Code 1228178.1 OCSD 18-XX-1 1303343.1 RESOLUTION NO. OCSD 18-XX A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ADOPTING A CONFLICT OF INTEREST CODE WHICH SUPERSEDES ALL PRIOR CONFLICT OF INTEREST CODES AND AMENDMENTS PREVIOUSLY ADOPTED WHEREAS, the Political Reform Act of 1974, Government Code Section 81000 et seq. (“the Act”), requires a local government agency to adopt a Conflict of Interest Code pursuant to the Act; and WHEREAS, the Orange County Sanitation District (“District”) has previously adopted a Conflict of Interest Code and that Code now requires updating; and WHEREAS, amendments to the Act have in the past and foreseeably will in the future require conforming amendments to be made to the Conflict of Interest Code; and WHEREAS, the Fair Political Practices Commission has adopted a regulation, 2 California Code of Regulations, Section 18730, which contains terms for a standard model Conflict of Interest Code, which, together with amendments thereto, may be adopted by public agencies and incorporated by reference to save public agencies time and money by minimizing the actions required of such agencies to keep their codes in conformity with the Political Reform Act; and WHEREAS, the reorganization of the District workforce resulted in the reclassification of a position; and WHEREAS, the District’s existing Conflict of Interest Code must be amended in order to reflect the current positions of those designated employees that are required to file statements of economic interests. 1228178.1 OCSD 18-XX-2 1303343.1 NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1. The terms of 2 California Code of Regulations, Section 18730, any amendments to it duly adopted by the Fair Political Practices Commission, and all additional guidance by the Fair Political Practices Commission, are hereby incorporated by reference and, together with the 2017 Conflict of Interest Code for the Orange County Sanitation District, including Exhibits A and B in which members and employees are designated and disclosure categories are set forth, constitute the Conflict of Interest Code of the Orange County Sanitation District. Section 2. The provisions of all Conflict of Interest Codes and Amendments thereto previously adopted by the Orange County Sanitation District are hereby superseded. Section 3. The Filing Officer is hereby authorized to forward a copy of this Resolution to the Clerk of the Orange County Board of Supervisors for review and approval by the Orange County Board of Supervisors as required by California Government Code Section 87303. PASSED AND ADOPTED at a regular meeting of the Board of Directors held April 25, 2018. ________________________________ Gregory C. Sebourn, PLS Board Chairman ATTEST: ______________________________ Kelly A. Lore, MMC Clerk of the Board 1228178.1 OCSD 18-XX-3 1303343.1 STATE OF CALIFORNIA ) ) ss COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 18-XX was passed and adopted at a regular meeting of said Board on the 25th day of April 2018, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 25th day of April 2018. Kelly A. Lore, MMC Clerk of the Board of Directors Orange County Sanitation District 1228173.1 OCSD 17-03-18-XX-4 2018 CONFLICT OF INTEREST CODE FOR THE ORANGE COUNTY SANITATION DISTRICT The Political Reform Act, Government Code Sections 81000, et seq., requires state and local government agencies to adopt and promulgate Conflict of Interest Codes. The Fair Political Practices Commission has adopted a regulation (2 Cal. Code of Regs. Section 18730) which contains the terms of a standard Conflict of Interest Code, which may be incorporated by reference in an agency’s code. After public notice and hearing, it may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act. Therefore, the terms of 2 California Code of Regulations Section 18730, any amendments to it duly adopted by the Fair Political Practices Commission, and all additional guidance by the Fair Political Practices Commission, are hereby incorporated by reference. This regulation and the attached Appendix designating officials and employees and establishing disclosure categories, shall constitute the Conflict of Interest Code of the Orange County Sanitation District. Designated employees shall file statements of economic interests with the District’s Clerk of the Board who will make the statements available for public inspection and reproduction (Government Code Section 87500). Upon receipt of the statements of the Orange County Sanitation District Board of Directors, Orange County Sanitation District Financing Corporation, General Manager, General Counsel, Assistant General Manager, Director of Engineering, Director of Finance & Administrative Services, Director of Operations & Maintenance, Director of Environmental Services, Director of Human Resources, and the Clerk of the Board, the Filing Officer shall make and retain a copy and forward the original of these statements to the Clerk of the Orange County Board of 1228173.1 OCSD 17-03-18-XX-5 Supervisors. Statements for all other designated employees will be retained by the Filing Officer. The following designated employees shall file statements of economic interests electronically with the Clerk of the Orange County Board of Supervisors: Orange County Sanitation District Board of Directors, Orange County Sanitation District Financing Corporation, General Manager, General Counsel, Assistant General Manager, Director of Finance and Administrative Services, Director of Engineering, Director of Finance & Administrative Services, Director of Operations & Maintenance, Director of Environmental Services, Director of Human Resources, and the Clerk of the Board. The District’s Filing Officer (Clerk of the Orange County Sanitation District Board of Directors) will thereafter verify the completion of the filing statements. If the District’s Filing Officer receives any statements of economic interests by other means, the Filing Officer shall make and retain a copy and forward the original of these statements to the Clerk of the Orange County Board of Supervisors. Statements for all other designated employees will be retained by the District’s Filing Officer. 1228173.1 OCSD 17-03-18-XX-6 EXHIBIT A ORANGE COUNTY SANITATION DISTRICT LIST OF DESIGNATED POSITIONS CONFLICT OF INTEREST CODE Designated Positions Disclosure Categories Accounting Supervisor OC-05 Assistant General Manager OC-01 Buyer OC-05 Capital Improvement Program Project Manager OC-41 Chief Plant Operator OC-05 Clerk of the Board OC-05 Construction Inspection Supervisor OC-05 Construction Inspector OC-10 Consultant OC-30 Contracts & Purchasing Manager OC-05 Contracts Administrator OC-05 Contracts Supervisor OC-05 Controller OC-05 Deputy Clerk of the Board OC-05 Director of Engineering OC-41 Director of Environmental Services OC-41 Director of Finance & Administrative Services OC-41 Director of Human Resources OC-41 Director of Operations & Maintenance OC-41 Engineer OC-29, OC-41 Engineering Manager OC-05 Engineering Supervisor OC-05 Environmental Laboratory & Ocean Monitoring Manager OC-05 Environmental Supervisor OC-29 Facilities Manager OC-05 General Counsel OC-01 General Manager OC-01 Human Resources & Risk Manager OC-11 Human Resources Supervisor OC-11 Information Technology Manager OC-08 Information Technology Supervisor OC-08 Information Technology Systems & Operations Manager OC-08 Laboratory Supervisor OC-21 Maintenance Manager OC-05 Maintenance Superintendent OC-05 1228173.1 OCSD 17-03-18-XX-7 Maintenance Supervisor OC-05 Materials Control Supervisor OC-05 Operations Manager OC-05 Operations Supervisor OC-05 Orange County Sanitation District Financing Corporation Board of Directors OC-01 Principal Accountant OC-41 Principal Contracts Administrator OC-05 Principal Financial Analyst (deletion) (reclassified as Principal Staff Analyst) OC-12 Principal Human Resources Analyst OC-11 *Principal Staff Analyst (addition) OC-05; OC-12 Public Affairs Supervisor OC-05 Purchasing Supervisor OC-05 Safety & Health Supervisor OC-05 Secretary of the Orange County Financing Corporation OC-05 Senior Buyer OC-05 Senior Construction Inspection Supervisor OC-05 Senior Construction Inspector OC-10 Senior Contracts Administrator OC-05 Senior Engineer OC-05 Senior Scientist OC-21 Source Control Supervisor OC-29 Treasurer of the Orange County Financing Corporation OC-41 *The following amendments are made: Principal Staff Analyst (OC-05; OC-12) ADDITION Principal Financial Analyst (OC-12) DELETE (Reclassified to Principal Staff Analyst) 1228173.1 OCSD 17-03-18-XX-8 EXHIBIT B ORANGE COUNTY SANITATION DISTRICT DISCLOSURE CATEGORIES CONFLICT OF INTEREST CODE Disclosure Category Disclosure Description OC-01 All interests in real property in Orange County or the District, as well as investments, business positions and sources of income (including gifts, loans and travel payments). OC-05 All investments in, business positions with and income (including gifts, loans and travel payments) from sources that provide services, supplies, materials, machinery, equipment (including training and consulting services) used by the department or District, as applicable. OC-08 All investments in, business positions with and income (including gifts, loans and travel payments) from sources that develop or provide computer hardware/software, voice data communications, or data processing goods, supplies, equipment, or services (including training and consulting services) used by the department or District, as applicable. OC-10 All investments in, business positions with and income (including gifts, loans and travel payments) from sources that are engaged in any real estate activity including, but not limited to real estate appraisal, development, construction, planning/architectural design, engineering, sales, brokerage, leasing, lending, insurance, rights of way, and/or studies; and/or property or facilities management/maintenance/custodial and utility services as used by the department or provides capital for the purchase of property used or sold by Orange County or the District. OC-11 All interests in real property in Orange County or located entirely or partly within District boundaries, as well as investments in, business positions with and income (including gifts, loans and travel payments) from sources that are engaged in the supply of equipment related to (i) recruitment, employment search & marketing, classification, training, or negotiation with personnel; (ii) employee benefits; and (iii) health and welfare benefits. OC-12 All interests in real property in Orange County, as well as investments in, business positions with and income (including gifts, loans and travel payments) from sources that invest funds or engage in the business of insurance including, but not limited to insurance companies, carriers, holding companies, underwriters, brokers, solicitors, agents, adjusters, claims managers and actuaries; from financial institutions including but not limited to, banks, savings & loan associations and credit unions or sources that have filed a claim, or have a claim pending, against Orange County. 1228173.1 OCSD 17-03-18-XX-9 EXHIBIT B ORANGE COUNTY SANITATION DISTRICT DISCLOSURE CATEGORIES CONFLICT OF INTEREST CODE Disclosure Category Disclosure Description OC-21 All investments in, business positions with and income (including gifts, loans and travel payments) from sources that provide laboratory or chemical – related goods, supplies, equipment, or services (including training and consulting services). OC-29 All investments in, business positions with and income (including gifts, loans and travel payments) from sources that are subject to inspection or regulation by the department. OC-30 Consultants shall be included in the list of designated employees and shall disclose pursuant to the broadest category in the code subject to the following limitation: The Department Head/Director/General Manager/Superintendent/etc. may determine that a particular consultant, although a “designated position,” is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements in this section. Such written determination shall include a description of the consultant’s duties and, based upon that description, a statement of the extent of disclosure required. The determination of disclosure is a public record and shall be filed with the Form 700 and retained by the Filing Officer for public inspection. OC-41 All interests in real property in Orange County or the District, as applicable, as well as investments in, business positions with and income (including gifts, loans and travel payments) from sources that provide services, supplies, materials, machinery, vehicles, or equipment (including training and consulting services) used by the department or District, as applicable. Page 1 of 4 1297377.1 ADMINISTRATION COMMITTEE Meeting Date 04/11/18 To Bd. of Dir. 04/25/18 AGENDA REPORT Item Number 3 Item Number Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance & Administrative Services SUBJECT: PROPOSED PURCHASING ORDINANCE NO. OCSD-XX GENERAL MANAGER'S RECOMMENDATION Recommend to the Board of Directors to: A. Introduce Ordinance No. OCSD-XX, 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; and Repealing Ordinance No. OCSD-47”; B. Motion to read Ordinance No. OCSD-XX by title only and waive reading of said entire Ordinance on April 25, 2018; C. Set May 23, 2018 as the date for the second reading and adoption of Ordinance No. OCSD-XX; and D. Direct the Clerk of the Board to publish summaries of the Ordinance as required by law. BACKGROUND The proposed Purchasing Ordinance sets forth the requirements that apply to the Orange County Sanitation District's (Sanitation District) purchase of goods and services. These requirements are currently set forth in Ordinance No. OCSD-47. The proposed Ordinance updates and reorganizes the requirements set forth in Ordinance No. OCSD-47 and clarifies several individual requirements and procedures. The Ordinance, for example, modifies procedures whereby an aggrieved bidder or proposer may protest the solicitation process and/or the award of a contract and permits the Sanitation District more flexibility to award master contracts best suited to the Sanitation District’s needs. Purpose. The Ordinance is designed to ensure that (1) the Sanitation District complies with state law requirements governing procurement; (2) the Sanitation District obtains quality goods and services at the lowest price and/or the best overall value; (3) purchasing decisions are transparent for the public; and (4) the procurement process is fair to prospective contractors while serving the interests of the Sanitation District's ratepayers. The Ordinance also delegates spending authority to the Standing Committees and the General Manager within specified limits. Page 2 of 4 1297377.1 Competitive Selection in General. Depending on the nature of the procurement, the Ordinance generally requires the Sanitation District to select contractors based on either competitive bids or competitive proposals. Under a competitive bid process, the Sanitation District issues a notice inviting bids. Prospective contractors then submit sealed bids and the Sanitation District awards the contract to the lowest responsive, responsible bidder. Under a competitive proposal process, the Sanitation District issues a request for proposals. Prospective contractors then submit sealed proposals and the Sanitation District awards the contract to the proposal that best meets the criteria specified in the request for proposals. The winning proposal may or may not be the proposal that offered the lowest price. Exceptions to Competitive Selection. In exceptional circumstances, the Ordinance allows the Sanitation District to select contractors without any competitive process. The Ordinance allows the Sanitation District, for example, to award a contract on a "sole source" basis when the goods or services in question are unique or only available from one source. The Ordinance also allows the Sanitation District to award contracts without any competitive process as may be necessary to respond to an emergency. Types of Procurements. The Ordinance sets forth different requirements for four types of procurements: (1) goods and services (other than professional services); (2) professional services (other than professional design services); (3) professional design services; and (4) public works construction. The Ordinance generally requires the Sanitation District to purchase goods and services, other than professional design services, based on the lowest price. In contrast, however, the Ordinance generally requires the Sanitation District to award professional design service contracts to the most qualified firm, so long as the proposed price is fair and reasonable. Finally, pursuant to State law, the Ordinance generally requires the Sanitation District to award contracts for public works construction to the lowest responsive, responsible bidder. Master Contracts. The Ordinance revises the procedures to award master contracts to pre-qualified firms to allow the Sanitation District increased flexibility to identify a variety of disciplines and categories of services required and enable the Sanitation District to select a single firm due to a unique qualification or circumstance, subject to the best interests of the Sanitation District. This Ordinance also increases the task order dollar limits to maximize the effectiveness of this procurement tool and establishes a lower threshold of $25,000 below which the Director of Engineering may solicit a proposal from a single firm for low cost and/or specialized work. Bid Protests. The Ordinance requires procedures whereby a bidder or proposer may challenge the Sanitation District's solicitation process and/or the proposed award of a contract. A bidder or proposer may challenge the solicitation process 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. A bidder or proposer may also challenge the proposed award of a contract on the grounds that a free and open competition has not taken place. Delegation of Spending Authority. In the interest of efficiency, the Ordinance delegates specified spending authority to the General Manager for task orders. The Ordinance Page 3 of 4 1297377.1 increases the threshold at which the General Manager may approve task orders to $300,000, including contingencies. General Manager Policies and Procedures. Under the proposed Ordinance, the General Manager will continue to adopt detailed policies and procedures governing procurement in order to implement the requirements of the Ordinance. The proposed revisions to the existing policies and procedures are also provided for the Board’s review. RELEVANT STANDARDS • CA Public Contract Code Section 20783 • CA Government Code Section 4526; 54202 • Ensure the public’s money is wisely spent PROBLEM The Sanitation District last updated its Purchasing Ordinance in 2015 and now requires amendments to the existing requirements to improve its efficiency to purchase goods and services required by the Sanitation District. PROPOSED SOLUTION Adopt an Ordinance with the new proposed purchasing requirements and authority based on Sanitation District’s staff thorough review and analysis of the limitations of the existing ordinance. TIMING CONCERNS April 2018 - Presentation to Operations Committee. April 2018 - Introduction of the Ordinance to Administration Committee. April 2018 - Introduction and first reading of the Ordinance to the Board of Directors. May 2018 - Second Reading and Adoption of the Ordinance. June 23, 2018 - Ordinance takes effect. RAMIFICATIONS OF NOT TAKING ACTION Existing Purchasing Ordinance will remain in effect without modifications. PRIOR COMMITTEE/BOARD ACTIONS April 2018 - Informational presentation to Operations Committee. ADDITIONAL INFORMATION Under Government Code Section 54202, the Sanitation District must adopt policies and procedures governing the purchase of supplies and equipment. Government Code Section 4526 applies to the purchase of professional services from private architects, landscape architects, engineers, environmental professionals, land surveyors, and Page 4 of 4 1297377.1 construction managers. Under Section 4526, the Sanitation District must select the specified professionals based on demonstrated competence and the professional qualifications necessary for the satisfactory performance of the services required. Section 4526 allows the Sanitation District to adopt, by Ordinance, procedures ensuring that the specified services are engaged based on demonstrated competence and professional qualifications at fair and reasonable prices. Under Public Contract Code Section 20783, the Sanitation District must award contracts for public works construction worth more than $35,000 to the lowest responsive, responsible bidder. The Public Contract Code otherwise imposes a variety of requirements on the award of public works construction contracts. CEQA Adoption of the Ordinance is not a "project" subject to CEQA because it constitutes general policy and procedure making that will not result in any physical impact on the environment. FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Draft Ordinance No. OCSD-XX (redline & clean) • Ordinance Matrix OCSD-47XX-1 1042653.2 1288720.1 ORDINANCE NO. OCSD-47XX 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-44-47 OCSD-47XX-2 1042653.2 1288720.1 CONTENTS Article 1. General Provisions .......................................................................................... 5 Section 1.01. Purpose and Scope .......................................................................... 5 A. Purpose .............................................................................................. 5 B. Scope ................................................................................................. 5 Section 1.02. 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-47XX-3 1042653.2 1288720.1 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 8. Evaluation and Ranking of Proposals .............................................. 12 C. Negotiation of Contract. ................................................................... 12 Section 3.03. Exceptions ...................................................................................... 12 A. Sole Source and Emergency Procurements .................................... 12 8. 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 8. Scope ........................................................................................... 13 Section 4.02. Selection Process ........................................................................... 13 A. Competitive Selection ...................................................................... 13 8. Professional Design Services Greater Than $200,000 .................... 13 C. Master Contracts; Professional Design Services Less Than or Equal to $200,000 ........................................................................ 16 Section 4.03. 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 8. Scope ........................................................................................... 18 OCSD-47XX-4 1042653.2 1288720.1 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 Article 6. 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 Article 8. Ethics ................................................................................................................. 26 Section 8.01. Unlawful Consideration Prohibited ................................................. 26 Section 8.02. Conflicts of lnterest. ..................................................................... 26 A. Compliance with the Political Reform Act. ..................................... 26 B. Compliance with Government Code § 1090 .................................. 27 C. Requirements Applicable to Consultants ....................................... 27 Article 9. Definitions .......................................................................................................... 27 Article 10. Miscellaneous ............................................................................................. 30 Section 10.01. Noncompliance......................................................................... 30 Section 10.02. Effective Date ..................................................................... 30 Section 10.03. Section 10.04. Repeal of Ordinance No. OCSD-47 ................................... 30 Certification and Publication .............................................. 31 OCSD-47XX-5 1042653.2 1288720.1 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 Sstate law requiring the District to adopt written purchasing procedures; (2) Ensure that the District complies with Sstate 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 District's "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-47XX-6 1042653.2 1288720.1 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) Conduct or supervise the procurement of, all Goods, Services, and Public Works Projects purchased by the District; and obtainreceive from Contractor all bids, proposals or other solicitation results; (2) Supervise and control inventories of supplies and materials. (1)(3) For each procurement, the Purchasing Manager shall determine Determine the type of procurement, term of the contract including number of renewals and any other contractual provisions necessary and in the best interest of the District. B. Requests for Procurement. When a Department desires to procure Goods and/or Services, the Department Director shall file a written Requisition, in advance of a procurement process, with the Purchasing Manager. The Requisition shall describe the Goods and/or Services to be acquired. Public Works procurements do not require a written Requisition, but will require the appropriate written approvals documented through a completen Engineering Capital Project Charter Budget Approval Form or an equivalent document. 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. OCSD-47XX-7 1042653.2 1288720.1 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-47XX-8 1042653.2 1288720.1 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) Professional Design Services (governed by Article 4), and Contracts for Public Works Projects (governed by Article 5). Section 2.02. Selection Process C. 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 Bidsthe competitive procurement methods set forth below. For each procurement, the Purchasing Manager shall OCSD-47XX-9 1042653.2 1288720.1 determine the type of procurement, term of the contract including number of renewals and any other contractual provisions necessary and in the best interest of the District. 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 (e) such provisions, renewals, terms, and conditions, consistent with this Ordinance, that the Purchasing Manager determines are necessary, desirable, and/or advantageous to the District; Open Receive the Competitive (2) Sealed Bbids 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.: (4) After the bids are opened, take one of the following actions may be taken: (1)i. Award the Contract to the lowest Responsive and Responsible Bidder; (2)ii. Reject any and all bids presented and/or re-advertise the bid; or (3)iii. 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.B. 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. 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 utilizedThe Purchasing Manager may determines that a prequalification process is necessary and desirable for a particular procurement. The multi-step sealed bidding process requires the Purchasing Manager to involves (1) issueing a Request for Qualifications n Invitation for Bids requesting the submission of un-priced offersqualifications; and (2) issueing a subsequent InvitationNotice Inviting for Bids for priced offers from those vendors Contractors whose initial un-priced offerssubmissions were OCSD-47XX-10 1042653.2 1288720.1 deemed qualified under the criteria set forth in the initial InvitationRequest for Qualifications for Bids. Award under this process shall be based on the lowest Responsive and Responsible Bidder. D. Competitive SealedRequest for 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 SealedRequest for 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 upon criteria that provide the best value for the District, wherein best value is not solely determined by price. Section 2.03. Exceptions A. For this Section 2.03, the award of Contracts for the purchase of Goods and Services shall be based on the procurement methods set forth below. For each procurement, the Purchasing Manager shall determine the type of procurement, term of the contract including number of renewals and any other contractual provisions necessary and in the best interest of the District B.A. Small Procurements. (1) Procurements of $5,.000 $10,000 or Less. Contracts subject to this Article 2 with an estimated value of $5,000 $10,000 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. (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) (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. OCSD-47XX-11 1042653.2 1288720.1 C.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. E.C. 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, t 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.D. 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 and Section 2.03. G.E. 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. F. Master Contracts; Maintenance and Repair Services Less Than or Equal to $300,000. $100,000. The Purchasing Manager may purchase maintenance and repair Services estimated to cost less than or equal to $100,000 $300,000 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: OCSD-47XX-12 1042653.2 1288720.1 (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-47XX-13 1042653.2 1288720.1 (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. If the District uses its best efforts to outreach to potential Contractors, and cannot obtain the minimum of 3 prequalified Contractors, the Purchasing Manager shall document circumstances in a memorandum to the procurement filethe outreach and responses received. The District may then proceed with award to fewer than 3 prequalified firms. Each list shall be used for a maximum of 3 years. No later than 3 years after establishing a prequalified list, the Purchasing Manager mustay issue a new Request for Qualifications and establish a new list, if such goods and/or services are required. (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 renew 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(HF) 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 $300,000 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. OCSD-47XX-14 1042653.2 1288720.1 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-47XX-15 1042653.2 1288720.1 Section 3.02. Selection Process For this Section 3.02, the award of Contracts for the purchase of Professional Services shall be based on the procurement method set forth below. For each procurement, the Purchasing Manager shall determine the type of procurement, term of the contract including renewals and any other contractual provisions necessary and in the best interest of the District. 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 For this Section 3.03, the award of Contracts for the purchase of Professional Services shall be based on the procurement method set forth below. For each procurement, the Purchasing Manager shall determine the type of procurement, term of the contract including renewals and any other contractual provisions necessary and in the best interest of the District. OCSD-47XX-16 1042653.2 1288720.1 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-47XX-17 1042653.2 1288720.1 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 $105.,000 or less. Contracts subject to this Article 3 with an estimated value of $105,000 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(FH), provided that individual task orders shall not exceed $100,000 for each project. E. Master Contracts: Professional Services Qualified Lists The Purchasing Manager may establish qualified lists of Professional Services through the master contract procedures set forth below. (1) Request for Qualifications. If a master contract is let for Professional Services, the Purchasing Manager shall prepare and distribute a Request for Qualifications for the Professional Services required by the District. Each Request for Qualifications shall describe the selection criteria that will be used to determine whether firms are eligible for the qualified 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, facilities or other requirements as applicable. (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 firm has the demonstrated competence and qualifications to provide the Services necessary OCSD-47XX-18 1042653.2 1288720.1 for the satisfactory performance of the Services required. (3) Lists. The Purchasing Manager in conjunction with the Department Director shall determine the number of firms needed on the list based on anticipated work. If the District uses its best efforts to outreach to potential Contractors, and cannot obtain the minimum number of firms specified in the RFQ, the Purchasing Manager shall document circumstances in a memorandumthe outreach efforts and responses to the procurement file. The District may proceed with award to fewer firms. No later than 3 years after establishing a qualified list, the Purchasing Manager mayust issue a new Request for Qualifications and establish a new list, if such services are still required. (4) Master Contract. Master Contracts with firms on the qualified 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 renew 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 3.03(E). The Purchasing Manager shall follow a competitive selection process or cycle through on a rotation basis to one firm at a time. The Request for Qualifications shall specify any competitive process and/or rotation selection process, including selection of a single firm due to a unique qualification or circumstance, subject to the best interests of the District in any particular case. F. Renewals. The Purchasing Manager may exercise any options to renew as may be included in existing Contracts without observinginitiating the procurement procedures prescribed in Section 3.02 and Section 3.03. 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. OCSD-47XX-19 1042653.2 1288720.1 Section 4.02. Selection Process A. Competitive Selection. All Professional Design Services estimated to be greater than $200,000 $300,000 shall be awarded based on Competitive Sealed Proposals. All Professional Design Services with an estimated value of $200,000 $300,000 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 $4050,000 $600,000 per year. B. Professional Design Services Greater Than $200.000$300,000. OCSD-47XX-20 1042653.2 1288720.1 The requirements set forth in this subsection 4.02(8B) shall apply to the purchase of Professional Design Services estimated to cost more than $200,000$300,000. (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. (a) (b) The firm's relevant experience and performance on similar projects. (b) (c) The firm's ability to complete the work within the time allotted. (c) (d) The personnel that will be assigned to the project. (d) (e) The estimated number of hours that each member of the team will spend on the project. (e) (f) A statement that the firm's engagement for the project would not create a conflict of interest. OCSD-47XX-21 1042653.2 1288720.1 (f) (f) Any other information required to properly evaluate the firm's qualifications and experience with similar projects. (g) (g) Proposals for construction management services shall demonstrate that the designated personnel have expertise and experience in construction project design review and evaluation, construction OCSD-47XX-22 1042653.2 1288720.1 mobilization and supervision, bid evaluation, project scheduling, cost- benefit analysis, claims review and negotiation, and general management and administration of a construction project. (h) (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. (i) (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 proposer's fee proposal will be opened. If those negotiations fail, the e OCSD-47XX-23 1042653.2 1288720.1 (7)(6) 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 $3200,000 $300,000. 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 $3200,000 $300,000 for each individual project. (1) Request 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 office(s) 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-47XX-24 1042653.2 1288720.1 (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/category. The RFQ will identify the number of anticipated firms on the prequalified list. The Purchasing Manager in conjunction with the Director of Engineering shall determine the number of firms needed on the list based on anticipated work. If the District uses its best efforts to outreach to potential Contractors, and cannot obtain the minimum number of firms specified in the RFQ, the Purchasing Manager shall record the outreach efforts and responsesdocument circumstances in a memorandum to the procurement file. The District may proceed with award to fewer firms. Each list shall be used for a maximum of 3 years. No later than 3 years after establishing a prequalified list for each discipline/categoryservice, the Purchasing Manager shall issue a new Request for Qualifications and establish a new list if such services are still required. (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 $6004500,000 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. For Task Orders estimated to cost $25,000 or less, the Director of Engineering, with concurrence of the Purchasing Manager, may solicit a proposal from 1 (one) firm on the prequalified list. The price proposal shall be submitted in a separate sealed envelope. The Director of Engineering shall issue a written determination that (i) identifies the basis for selection, including but not limited to the specialized qualifications of the 1 (one) firm, and (ii) states that the negotiated price is fair and reasonable. Individual Task Orders in an amount not to exceed $300,000 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 OCSD-47XX-25 1042653.2 1288720.1 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 $105,.000 or less. Contracts subject to this Article 4 with an estimated value of $510,000 or less may be awarded without following the Request for Proposal/Request for Qualifications s OCSD-47XX-26 1042653.2 1288720.1 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, as may be amended or superseded from time to time. (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.; 1. 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-47XX- 1042653.2 1288720.1 4. Require bidders to post a bidder's security; 4. 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(8B), 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 et 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) Rejection 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. (d)(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. OCSD-47XX- 1042653.2 1288720.1 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 t he 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 OCSD-47XX- 1042653.2 1288720.1 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-47XX- 1042653.2 1288720.1 (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 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 to be included in the Solicitation Protest Statement, the evaluation process, and the types of remedies available. OCSD-47XX- 1042653.2 1288720.1 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. If the Protestor wishes to appeal, the Purchasing Manager's decision on an Award Protest Statement, the appeal shall be submitted 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 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 OCSD-47XX- 1042653.2 1288720.1 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. A Delegation by General Manager. The General Manager shall establish written procedures governing the delegation of authority to the Purchasing Manager to award and execute Contracts, Amendments, Change Orders, Renewals, and Time Extensions and Assignments 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. B. Original Contracts, and Contingencies and Renewals. OCSD-47XX- 1042653.2 1288720.1 ' ' I I The Board of Directors hereby delegates the authority to award Contracts within specified limits as follows: I I Delegated Authority Authorized Action This section is not in tracked changes to the existing Ordinance. General Manager/ Assistant General Manager (1) Authorization to approve and execute Contracts and applicable Renewals for budgeted procurements less than or equal to $100,000. , including any Ccontingency or Renewals. All new procurements and/or renewals overbetween $50,000 and $100,000 are to be reported to the Board of Directors on a quarterly basis. (2) Authorization to approve and execute Contracts with specified Renewals where no single Renewal exceeds $100,000. All procurements over $50,000 are to be reported to the Board of Directors on a quarterly basis. Standing Committees (1) Authorization to approve and execute Contracts and applicable Renewals for budgeted procurements greater than $100,000 and up to or equal to $200,000,. (2) Authorization to approve plusincluding a Ccontingency or Renewals. Committee contingency is of up to 50%, for a total spending authority of up to $300,000 for each Contract. Authorization to approve and execute Contracts with specified Renewals where no single Renewal exceeds $200,000. Board of Directors Authorization to approve and execute Contracts and applicable Renewals for budgeted procurements up to or greater than $200,000, to approveincluding Ccontingency. and Renewals.ls., and to approve specified Renewals. j Delegated Authority j Authorized Action 'r·----------------------------------- ·-·'r·---------------------------------------------------------------------- i General Manager/ ! Authorization to approve and execute Contracts i Assistant General i for budgeted procurements up to $100,000, j Manager j including any contingency. Authorization to approve and execute Contracts with specified Renewals where no single Renewal exceeds $100,000. All procurements over $50,000 are to be reported to the Board of Directors on a quarterly basis. ,-------------------------------------- ----------------------------------------------------------------------- j Standing Committees I I I I I Authorization to approve and execute Contracts for budgeted 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. OCSD-47XX- 1042653.2 1288720.1 Authorization to approve and execute Contracts with specified Renewals where no single Renewal exceeds $200,000.,I ---------------------------------------, ----------------------------------------------------------------------------1 ! Board of Directors ! Authorization to approve and execute Contracts for budgeted procurements over $200,000, to approve contingency, and to approve specified Renewals. All original Contracts for procurements that ! I I I ! ! exceed the limits of the Standing Committees shall ! ! i be approved by the Board of Directors. i --------------------------------------- ----------------------------------------------------------------------- C. Amendments, and Change Orders, and Renewals, and Time Extensions and Assignments. The Board of Directors hereby delegates the authority to approve Amendments, and Change Orders an,d Renewals, and Time Extensions and Assignments in any amount as follows: Delegated Authority Authorized Action Ditto – this is not tracked changes to the existing Ordinance. General Manager/ Assistant General Manager (1) Authorization to approve and execute Amendments and s, Change Orders and Renewals as long as the Amendment or, Change Order or Renewal is recommended by the applicable Department Director, and (a1) the Amendment or , Change Order or Renewal does not change the contract price or the new contract price is within the delegated authority, or (2b) the aAmendment or cChange oOrder is within the approved contingency. I (2) Authorization to approve and execute any Renewals that were originally approved by the General Manager, Standing Committee and/or Board of Directors. Renewals are not cumulative. (3) Authorization to approve and execute Amendments and Change Orders for Contract Time Extensions that do not(a) without involve any increase in compensationContract price; or (b) with an increase in Contract price within over the approved Contingency originally approved by the General Manager, Standing Committee and/or Board of Directors. (4) Authorization to approve and execute all Assignments unless determined by the General Manager that the assignment contains material changes and requires approval of the awarding authority. (5) Authorization to approve and execute Amendments and Renewals to chemical Contracts , unless the Contract unit price has increased frombeyond the the unit price OCSD-47XX- 1042653.2 1288720.1 contingency approved by the District’s Standing Committee and/or Board of Directors.District's Board of Directors . Unit price increases in chemical Contracts require Board of Directors approval. Authorization to approve and execute chemical contract Renewals including changes to the unit price, increases or decreases to the estimated annual / or specified periodterm amount. Increases that cause the contract amount to exceed the General Manager’s delegated authority shall be approved by the Standing Committee and/or Board of Directors. (6) Authorization to approve unit price increases for chemical contracts unless the increase causes the contract amount to exceed the General Manager’s delegated authority. Section 7.02. Contingency Release The General Manager/Assistant General Manager shall manage the release of all approved contingency funds for use in in connection with all amendments and change orders within the approved contingency amounts. approved by the Board, the standing committees, and the General Manager. r·-----------------------------------, --------------------------------------------------------------------------, ! Delegated Authority ! Authorized Action ! ------------------------------------J _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ J I ! General Manager/ ! Assistant General ! Manager I I I I I I (1) Authorization to approve and execute Amendments and Change OrdersR as long as (1) the Amendment or Change OrderR is recommended by the applicable Department Director, and (2) the Amendment or Change OrderR does not change the I 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 i approved by the District's Board of Directors. Unit i price increases in chemical Contracts require Board j of Directors approval. 'L------------------------------------j-' ------------------------------------------------------------------------- Section 7.023. Task Orders OCSD-47XX- 1042653.2 1288720.1 The Board of Directors hereby delegates the authority to award Task Orders within specified limits as follows: Delegated Authority Authorized Action Ditto General Manager/ Assistant General Manager (1) For Task Orders covered under Article 2. Goods and Services, Aauthorization to approve and execute Task Orders and/or Amendments to the Task Orders provided the cumulative total of the Task Order and Amendments thereto does not exceed $100,000 $300,000, upon the recommendation of the Department Director (2) For Task Orders covered under Article 2. Goods and Services, all new Task Order procurements between $5100,000 and $300,000 are to be reported to the Board of Directors on a quarterly basis, in arrears. (3) For Task Orders covered under Article 3. Professional Services of this Ordinance, authorization to approve and execute Task Orders and/or Amendments to the Task Orders provided the cumulative total of the Task Order and Amendments thereto does not exceed $100,000, upon the recommendation of the Department Director. For Task Orders covered under Article 4. Professional Design Services, authorization to approve and execute Task Orders and/or Amendments to the Task Orders provided the cumulative total of the Task Order and Amendments thereto does not exceed $300,000, upon the recommendation of the Department Director. (4) OCSD-47XX- 1042653.2 1288720.1 I (5) For Task Orders covered solely under Article 4, Professional Design Services of this Ordinance, the General Manager may delegate authorization to approve and execute Professional Design Service Master Contract Task Orders up to or equal to $100,000, which is inclusive of amendments to Task Orders, to the Director of Engineering. This authorization may not be subdelegatedsub delegated further. This authorization does not apply to Master Contracts covered under Article 2 or Article 3 of this Ordinance. Standing Committees (1) For Task Orders covered under Article 3. Professional Services of this Ordinance, Aauthorization to approve upon the recommendation of the General Manager/Assistant General Manager, Amendments to the Task Orders where the cumulative value exceeds $100,000 provided the cumulative total of the Task Order and Amendments does not exceed $200,000, upon the recommendation of the General Manager/Assistant General Manager., Board of Directors (1) For Task Orders covered under Article 2. Goods and Services, aAll Task Orders and/or amendments where the cumulative value exceeds $300,000 shall be approved by the Board of Directors. $200,000 shall be approved by the Board of (1) Directors. (2) For Task Orders covered under Article 3. Professional Services, all Task Orders and/or amendments that exceed $200,000 shall be approved by the Board of Directors. (3) For Task Orders covered under Article 4. Professional Design Services, all Task Orders and/or Amendments that exceed $300,000 shall be approved by the Board of Directors. I Delegated Authority ! Authorized Action General Manager/ 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. 1 OCSD-47XX- 1042653.2 1288720.1 1 Standing Committees ! 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-47XX- 1042653.2 1288720.1 Board of Directors ! All Task Orders and/or amendments that exceed I ! $200,000 shall be approved by the Board of Section 7.043. 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. Requirements 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. Assignment means to revise Contracts and related records to reflect changes such as the sale, transfer, or reorganization of a Contractor’s business, or a change in the Contractor’s name for doing business, as long as all other terms and conditions of the original Contract remain the same. OCSD-47XX- 1042653.2 1288720.1 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-47XX- 1042653.2 1288720.1 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." Designee means a person selected or authorized to initiate a procurement process.temporarily manage the duty or role of another employee. 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; (2) on award, the unsuccessful bidder or OCSD-47XX- 1042653.2 1288720.1 proposer with a direct economic interest in the outcome of their protest. OCSD-47XX- 1042653.2 1288720.1 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, planning and other miscellaneous engineering related 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). Purchasing Manager designee means an employee residing under Contracts, Purchasing and Materials Management Division whose job duties include contracting and procurement execution and administration. Purchasing Manager Designees are employees residing under Contracts, Purchasing and Materials Management Division whose job duties include contracting and procurement execution and administration. Renewal means a exercising a mechanism within an approved contract to performprovide the same goods/servicesservices for an additional period of time, at the specified price under the same terms and conditions. Both theThe number of renewals theof renewals, along with the price, and any contingencies meansare adding a specified and approved at the time of award. OCSD-47XX- 1042653.2 1288720.1 along with the associated funding, including contingency if applicable. increment of time with or without corresponding specified funding that may or may not be exercised by the District. Renewals may or may not increase thes contract areamountsprice are . The contract price per term does but are not accumulate for purposes of approval thresholds. and do not increase the Contract value. Renewals Renewals are not guaranteed. By mutual agreement the parties may enter into a renewal period of less than the specified term, but in no event may the parties enter into a renewal period longer than the specified period. specified and approved at the time of contract award. Further approval is not needed for a renewal unless the stand alone renewal exceeds the authority of the original awarding body.A Renewal may be exercised for lessfewer times or for a shorter duration than the specifiedapproved dates/periodnumber or term, by mutual agreement of the partiesbut anythe remaining time cannot be transferred to an additional renewalother period. Any renewals that are not for the full specified period count as one of the specified renewals. Renewals cannot be added nor entered into for longer than the specified dates/periodapproved number or term at the time of awardas approved at the time of award. 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. Requisition means an approved written document making a request for Goods and Services in advance of initiating a procurement process as well as a later request to and to amend, change, renew, cancel or extend time to a non-public works contract. OCSD-47-30 1042653.2 1288720.1 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 G 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. Time Extension means an increase to the period of performance specified by the original contract only, as may be amended. Time 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 XX shall take effect June _____ 251, 20158, upon adoption by the Board of Directors. OCSD-47-30 1042653.2 1288720.1 Section 10.03. Repeal of Ordinance No. OCSD-474. OCSD-47-31 1042653.2 1288720.1 Ordinance No. OCSD-474, 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 May 25, 2018. ATTEST: Kelly A. Lore Clerk of the Board APPROVED AS TO FORM: Bradley R. Hogin General Counsel Gregory C. Sebourn, PLS Chairman of the Board of Directors 1288720.1 STATE OF CALIFORNIA ) )SS. COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of Orange County Sanitation District, do hereby certify that the above and foregoing Ordinance No. OCSD-47 XX was introduced for first reading at a regular meeting of said Board on the 25th 28th day of April, 20185, and passed and adopted at a regular meeting of said Board on the 22nd 25th day of May, 20185, by the following vote, to wit: AYES : NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand this 25th day of May, 20185 . Kelly A. Lore, MMC Clerk of the Board Orange County Sanitatoin District OCSD-47-32 1042653 .2 1288720.1 ORDINANCE NO. OCSD-XX 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-47 1288720.1 OCSD-XX-2 CONTENTS Article 1. General Provisions ..................................................................................... 5 Section 1.01. Purpose and Scope ..................................................................... 5 A. Purpose .......................................................................................... 5 B. Scope ............................................................................................. 5 Section 1.02. 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. ..............................................................7 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. Equal Bids ....................................................................................... 8 C. Multi-Step Sealed Bidding............................................................... 8 D. Request for Proposals .................................................................... 9 Section 2.03. Exceptions .................................................................................... 9 A. Small Procurements ....................................................................... 9 B. Cooperative Purchases .................................................................. 9 C. Critical Time-Sensitive Procurements ............................................ 10 D. Renewals……………………………………………………………….. 10 1288720.1 OCSD-XX-3 E. Sole Source and Emergency Procurements ............................... 10 F. Master Contracts; Maintenance and Repair Services Less Than or Equal to $300,000 .......................................................... 10 Article 3. Professional Services ............................................................................... 11 Section 3.01. Purpose and Scope ................................................................... 11 A. Purpose ....................................................................................... 11 B. Scope ....................................................................................... 12 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 $10,000 or less ................................................ 13 D. Master Contracts; Professional Services Less Than or Equal to $100,000 .................................................................................. 13 E. Master Contracts: Professional Services Qualified Lists .............. 13 Article 4. Professional Design Services ................................................................... 14 Section 4.01. Purpose and Scope ................................................................... 14 A. Purpose ........................................................................................ 14 B. Scope ........................................................................................ 15 Section 4.02. Selection Process ...................................................................... 15 A. Competitive Selection .................................................................. 15 B. Professional Design Services Greater Than $300,000 ............... 15 C. Master Contracts: Professional Design Services Less Than or Equal to $300,000 .................................................................... 17 Section 4.03. Exceptions .................................................................................. 18 A. Sole Source and Emergency Procurements ................................ 18 B. Continuation of Services .............................................................. 18 C. Procurements of $10,000 or less ................................................. 19 Article 5. Public Works Projects ............................................................................... 19 Section 5.01. Purpose and Scope ................................................................... 19 A. Purpose ........................................................................................ 19 1288720.1 OCSD-XX-4 B. Scope Section 5.02. Selection Process .......................................................................... 19 A. Design-Bid-Build .................................................................................. 19 B. Design-Build ........................................................................................21 C. Prequalification ....................................................................................21 Section 5.03. Exceptions ...................................................................................22 A. Emergencies and Calamities ............................................................. 22 B. Specification of Brand or Trade Name .......................................... 23 Article 6. Protests ............................................................................................................. 23 Section 6.01. Solicitation Protests ..................................................................... 23 Section 6.02. Award Protests ............................................................................ 24 Section 6.03. Delay in Award ............................................................................ 24 Section 6.04. Remedies .................................................................................... 25 Section 6.05. Public Documents ........................................................................ 25 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, Change Orders, Renewals, Time Extensions & Assignments ................................................................................. 27 Section 7.02. Contingency Release .................................................................. 27 Section 7.03. Task Orders ................................................................................. 27 Article 8. Ethics ................................................................................................................. 29 Section 8.01. Unlawful Consideration Prohibited ................................................. 29 Section 8.02. Conflicts of Interest. ..................................................................... 29 A. Compliance with the Political Reform Act. ..................................... 29 B. Compliance with Government Code § 1090 .................................. 29 C. Requirements Applicable to Consultants ....................................... 30 Article 9. Definitions .......................................................................................................... 30 Article 10. Miscellaneous ............................................................................................. 34 Section 10.01. Noncompliance ................................................................................ 34 Section 10.02. Effective Date ............................................................................ 34 Section 10.03. Repeal of Ordinance No. OCSD-47 .......................................... 34 Section 10.04. Certification and Publication ...................................................... 34 1288720.1 OCSD-XX-5 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 District's "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-XX-6 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) Conduct the procurement of all Goods, Services, and Public Works Projects purchased by the District; and receive from Contractor all bids, proposals or other solicitation results; (2) Supervise and control inventories of supplies and materials. (3) Determine the type of procurement, term of the contract including number of renewals and any other contractual provisions necessary and in the best interest of the District. B. Requests for Procurement. When a Department desires to procure Goods and/or Services, the Department Director shall file a written Requisition, in advance of a procurement process, with the Purchasing Manager. The Requisition shall describe the Goods and/or Services to be acquired. Public Works procurements require a complete Engineering Budget Approval Form or equivalent document. 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 OCSD-XX-7 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 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. OCSD-XX-8 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) Professional Design Services (governed by Article 4), and Contracts for Public Works Projects (governed by Article 5). Section 2.02. Selection Process 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 the competitive procurement methods set forth below. A. 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, renewals, terms, and conditions, consistent with this Ordinance, that the Purchasing Manager determines are necessary, desirable, and/or advantageous to the District; (2) Receive the Competitive Sealed 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. (4) Award: After the bids are opened, take one of the following actions: i. Award the Contract to the lowest Responsive and Responsible Bidder; ii. Reject any and all bids presented and/or re-advertise the bid; or iii. 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. OCSD-XX-9 B. 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. C. Multi-Step Sealed Bidding. The Purchasing Manager may determine that a prequalification process is necessary and desirable for a particular procurement. The multi-step sealed bidding process requires the Purchasing Manager to (1) issue a Request for Qualifications requesting the submission of qualifications; and (2) issue a subsequent Notice Inviting Bids for priced offers from those Contractors whose initial submissions were deemed qualified under the criteria set forth in the initial Request for Qualifications. Award under this process shall be based on the lowest Responsive and Responsible Bidder. D. Request for 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 Request for 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 upon criteria that provide the best value for the District, wherein best value is not solely determined by price. Section 2.03. Exceptions A. Small Procurements. (1) Procurements of $10,000 or Less. Contracts subject to this Article 2 with an estimated value of $10,000 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. (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 OCSD-XX-10 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. Critical Time-Sensitive Procurements. The Purchasing Manager may purchase Goods and/or Services through Negotiated Procurement if the Purchasing Manager determines 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, t he 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. D. 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 and Section 2.03 E. 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. F. Master Contracts; Maintenance and Repair Services Less Than or Equal to $300,000. The Purchasing Manager may purchase maintenance and repair Services estimated to cost less than or equal to $300,000 through the master contract procedures set forth below. OCSD-XX-11 (1) Request for Qualifications. If a master contract is let for maintenance and repair Services, then at least once every three (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. (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 three (3) prequalified Contractors. If the District uses its best efforts to outreach to potential Contractors, and cannot obtain the minimum of three (3) prequalified Contractors, the Purchasing Manager shall document the outreach and responses received. The District may then proceed with award to fewer than three (3) prequalified firms. Each list shall be used for a maximum of three (3) years. No later than three (3) years after establishing a prequalified list, the Purchasing Manager must issue a new Request for Qualifications and establish a new list, if such goods and/or services are required. (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 one (1) year, with an option to renew each Contract for up to two (2) additional one-year renewal periods. (5) Task Orders. The Department Director shall notify the Purchasing Manager when Services subject to this subsection 2.03(F) are required OCSD-XX-12 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 $300,000 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). 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. OCSD-XX-13 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. 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 $10,000 or less. Contracts subject to this Article 3 with an estimated value of $10,000 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(F), provided that individual task orders shall not exceed $100,000 for each project. OCSD-XX-14 E. Master Contracts: Professional Services Qualified Lists The Purchasing Manager may establish qualified lists of Professional Services through the master contract procedures set forth below. (1) Request for Qualifications. If a master contract is let for Professional Services, the Purchasing Manager shall prepare and distribute a Request for Qualifications for the Professional Services required by the District. Each Request for Qualifications shall describe the selection criteria that will be used to determine whether firms are eligible for the qualified 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, facilities or other requirements as applicable. (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 firm has the demonstrated competence and qualifications to provide the Services necessary for the satisfactory performance of the Services required. (3) Lists. The Purchasing Manager in conjunction with the Department Director shall determine the number of firms needed on the list based on anticipated work. If the District uses its best efforts to outreach to potential Contractors, and cannot obtain the minimum number of firms specified in the RFQ, the Purchasing Manager shall document the outreach efforts and responses to the procurement file. The District may proceed with award to fewer firms. No later than three (3) years after establishing a qualified list, the Purchasing Manager must issue a new Request for Qualifications and establish a new list, if such services are still required. (4) Master Contract. Master Contracts with firms on the qualified 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 one (1) year, with an option to renew each Contract for up to two (2) additional one-year renewal periods. (5) Task Orders. The Department Director shall notify the Purchasing Manager when Services subject to this subsection 3.03(E). The Purchasing Manager shall follow a competitive selection process or cycle OCSD-XX-15 through on a rotation basis to one firm at a time. The Request for Qualifications shall specify any competitive process and/or rotation selection process, including selection of a single firm due to a unique qualification or circumstance, subject to the best interests of the District in any particular case. F. Renewals. The Purchasing Manager may exercise any options to renew as may be included in existing Contracts without initiating the procurement procedures prescribed in Section 3.02 and Section 3.03. 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 $300,000 shall be awarded based on Competitive Sealed Proposals. All Professional Design Services with an estimated value of $300,000 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 $600,000 per year. B. Professional Design Services Greater Than $300,000. The requirements set forth in this subsection 4.02(B) shall apply to the purchase of Professional Design Services estimated to cost more than $300,000. (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 OCSD-XX-16 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. (e) 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 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 OCSD-XX-17 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 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. OCSD-XX-18 C. Master Contracts; Professional Design Services Less Than or Equal to $300,000. 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 $300,000 for each individual project. (1) Request for Qualifications. At least once every three (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 office(s) 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 prequalified Contractors within each discipline/category. The RFQ will identify the number of anticipated firms on the prequalified list. The Purchasing Manager in conjunction with the Director of Engineering shall determine the number of firms needed on the list based on anticipated work. If the District cannot obtain the minimum number of firms specified in the RFQ, the Purchasing Manager shall record the outreach efforts and responses to the procurement file. The District may proceed with award to fewer firms. Each list shall be used for a maximum of 3 years. No later than 3 years after establishing a prequalified list for each service, the Purchasing Manager shall OCSD-XX-19 issue a new Request for Qualifications and establish a new list if such services are still required. (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 $600,000 per year. The original term of such Contracts shall be for one year, with an option to extend each Contract for up to two (2) additional one-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 two 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. For Task Orders estimated to cost $25,000 or less, the Director of Engineering, with concurrence of the Purchasing Manager, may solicit a proposal from 1 (one) firm on the prequalified list. The price proposal shall be submitted in a separate sealed envelope. The Director of Engineering shall issue a written determination that (i) identifies the basis for selection, including but not limited to the specialized qualifications of the 1 (one) firm, and (ii) states that the negotiated price is fair and reasonable. Individual Task Orders in an amount not to exceed $300,000 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. OCSD-XX-20 C. Procurements of $10,000 or less. Contracts subject to this Article 4 with an estimated value of $10,000 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 $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, as may be amended or superseded from time to time. (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. OCSD-XX-21 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 et 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) Rejection 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. (e) Award to Lowest Responsive and Responsible Bidder. Unless the OCSD-XX-22 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 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 OCSD-XX-23 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 (7) working days after the Purchasing Manager mails the notice described in subsection 5.02(C)(4). (b) Hearing. Within five (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 five (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. OCSD-XX-24 (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 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 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. OCSD-XX-25 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. If the Protestor wishes to appeal, the Purchasing Manager's decision on an Award Protest Statement, the appeal shall be submitted 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. OCSD-XX-26 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. 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. OCSD-XX-27 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 the Purchasing Manager to award and execute Contracts, Amendments, Change Orders, Renewals, Time Extensions and Assignments 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. B. Original Contracts, Contingencies and Renewals The Board of Directors hereby delegates the authority to award Contracts within specified limits as follows: Delegated Authority Authorized Action General Manager/ Assistant General Manager (1) Authorization to approve and execute Contracts and applicable Renewals for budgeted procurements less than or equal to $100,000. (2) All new procurements between $50,000 and $100,000 are to be reported to the Board of Directors on a quarterly basis. Standing Committees (1) Authorization to approve and execute Contracts and applicable Renewals for budgeted procurements greater than $100,000 and up to or equal to $200,000. (2) Authorization to approve Contingency up to 50%, for a total spending authority of up to $300,000 for each Contract. Board of Directors Authorization to approve and execute Contracts and applicable Renewals for budgeted procurements up to or greater than $200,000, including Contingency. C. Amendments, Change Orders, Renewals, Time Extensions and Assignments The Board of Directors hereby delegates the authority to approve Amendments, Change Orders, Renewals, Time Extensions and Assignments in any amount as follows: OCSD-XX-28 Delegated Authority Authorized Action General Manager/ Assistant General Manager (1) Authorization to approve and execute Amendments and Change Orders as long as the Amendment or Change Order is recommended by the applicable Department Director, and (a) the Amendment or Change Order does not change the contract price or the new contract price is within the delegated authority, or (b) the Amendment or Change Order is within the approved contingency. I (2) Authorization to approve and execute any Renewals that were originally approved by the General Manager, Standing Committee and/or Board of Directors. (3) Authorization to approve and execute Amendments and Change Orders for Contract Time Extensions (a) without any increase in Contract price; or (b) with an increase in Contract price within the approved Contingency originally approved by the General Manager, Standing Committee and/or Board of Directors. (4) Authorization to approve and execute all Assignments unless determined by the General Manager that the assignment contains material changes and requires approval of the awarding authority. (5) Authorization to approve and execute Amendments to chemical Contracts unless the Contract unit price has increased beyond the unit price contingency approved by the District’s Standing Committee and/or Board of Directors. (6) Authorization to approve and execute chemical contract Renewals including changes to the unit price, increases or decreases to the estimated annual / or specified term amount. Increases that cause the contract amount to exceed the General Manager’s delegated authority shall be approved by the Standing Committee and/or Board of Directors. Section 7.02. Contingency Release The General Manager/Assistant General Manager shall manage the release of all contingency funds for use in all amendments and change orders within the approved contingency amounts. OCSD-XX-29 Section 7.03. Task Orders The Board of Directors hereby delegates the authority to award Task Orders within specified limits as follows: Delegated Authority Authorized Action General Manager/ Assistant General Manager (1) For Task Orders covered under Article 2. Goods and Services, authorization to approve and execute Task Orders and/or Amendments to the Task Orders provided the cumulative total of the Task Order and Amendments thereto does not exceed $300,000, upon the recommendation of the Department Director (2) For Task Orders covered under Article 2. Goods and Services, all new Task Order procurements between $50,000 and $300,000 are to be reported to the Board of Directors on a quarterly basis, in arrears. (3) For Task Orders covered under Article 3. Professional Services of this Ordinance, authorization to approve and execute Task Orders and/or Amendments to the Task Orders provided the cumulative total of the Task Order and Amendments thereto does not exceed $100,000, upon the recommendation of the Department Director. (4) For Task Orders covered under Article 4. Professional Design Services, authorization to approve and execute Task Orders and/or Amendments to the Task Orders provided the cumulative total of the Task Order and Amendments thereto does not exceed $300,000, upon the recommendation of the Department Director. (5) For Task Orders covered solely under Article 4, Professional Design Services of this Ordinance, the General Manager may delegate authorization to approve and execute Professional Design Service Master Contract Task Orders up to or equal to $100,000, which is inclusive of amendments to Task Orders, to the Director of Engineering. This authorization may not be sub delegated further. This authorization does not apply to Master Contracts covered under Article 2 or Article 3 of this Ordinance. OCSD-XX-30 Standing Committees (1) For Task Orders covered under Article 3. Professional Services of this Ordinance, authorization to approve Amendments to the Task Orders where the cumulative value exceeds $100,000 provided the cumulative total of the Task Order and Amendments does not exceed $200,000, upon the recommendation of the General Manager/Assistant General Manager. Board of Directors (1) For Task Orders covered under Article 2. Goods and Services, all Task Orders and/or amendments where the cumulative value exceeds $300,000 shall be approved by the Board of Directors. (2) For Task Orders covered under Article 3. Professional Services, all Task Orders and/or amendments that exceed $200,000 shall be approved by the Board of Directors. (3) For Task Orders covered under Article 4. Professional Design Services, all Task Orders and/or Amendments that exceed $300,000 shall be approved by the Board of Directors. 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. OCSD-XX-31 C. Requirements 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. Assignment means to revise Contracts and related records to reflect changes such as the sale, transfer, or reorganization of a Contractor’s business, or a change in the Contractor’s name for doing business, as long as all other terms and conditions of the original Contract remain the same. 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. 1288720.1 OCSD-XX-32 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." Designee means a person selected or authorized to temporarily manage the duty or role of another employee. 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. 1288720.1 OCSD-XX-33 Interested Party 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. 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, construction project management, planning and other miscellaneous engineering related 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). Purchasing Manager designee means an employee residing under Contracts, Purchasing and Materials Management Division whose job duties include contracting and procurement execution and administration. Renewal means a mechanism within an approved contract to provide the same goods/services for an additional period of time, at the specified price under the same 1288720.1 OCSD-XX-34 terms and conditions. The number of renewals, the price, and any contingencies are approved at the time of award. Renewals may or may not increase the contract price. The contract price per term does not accumulate for purposes of approval thresholds. A Renewal may be exercised fewer times or for a shorter duration than the approved number or term, but any remaining time cannot be transferred to an additional renewal. Renewals cannot be added nor entered into for longer than the approved number or term at the time of award. 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. Requisition means an approved written document making a request for Goods and Services in advance of initiating a procurement process as well as a later request to amend, change, renew, cancel or extend time to a non-public works contract. Responsible Bidder means a bidder who has demonstrated the attribute of trustworthiness, as well as quality, fitness, capacity, and e xperience 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 1288720.1 OCSD-XX-35 defined budget, scope of services, and schedule, and authorizes a Contractor to incur a specified amount for the performance of tasks. Time Extension means an increase to the period of performance specified by the original contract only, as may be amended. 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-XX shall take effect June 23, 2018, upon adoption by the Board of Directors. Section 10.03. Repeal of Ordinance No. OCSD-47 Ordinance No. OCSD-47, 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. 1288720.1 OCSD-XX-36 PASSED AND ADOPTED by a majority of the Board of Directors of the Orange County Sanitation District at a Regular Meeting held on May 23, 2018. ATTEST: Kelly A. Lore, MMC Clerk of the Board APPROVED AS TO FORM: Bradley R. Hogin General Counsel Gregory C. Sebourn, PLS Chairman of the Board of Directors 1288720.1 STATE OF CALIFORNIA ) )SS COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of Orange County Sanitation District, do hereby certify that the above and foregoing Ordinance No. OCSD-XX was introduced for first reading at a regular meeting of said Board on the 25th day of April, 2018, and passed and adopted at a regular meeting of said Board on the 23rd day of May, 2018, by the following vote, to wit: AYES : NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand this 23rd day of May 2018. Kelly A. Lore, MMC Clerk of the Board Orange County Sanitatoin District PURCHASING ORDINANCE – CHANGE MATRIX 1 | Page 2/21/18 SECTION REASON FOR CHANGE RECOMMENDED LANGUAGE VER 2.0 CURRENT LANGUAGE VER 1.0 Threshold Changes 2.03 A – Small Procurements Increased bidding threshold from $5,000 to $10,000. Procurements of $10,000 or Less. Contracts subject to this Article 2 with an estimated value of $10,000 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. 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. 2.03 F – Master Contractors for Maintenance & Repair Services (Intro paragraph & subsection 5 – Task Orders). Increased Task Order limit from $100,000 to $300,000 Approved by GM & Board Chair. The Purchasing Manager may purchase maintenance and repair Services estimated to cost less than or equal to $300,000 through the master contract procedures set forth below. 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. 4.02 A – Master Contracts Professional Design Competitive Selection Proposing increase to Master Contract Total Amount to allow Engineering to process engineering services on behalf of O&M for repairs. The increase will ensure Engineering does not experience a reduction of contract availability. All Professional Design Services estimated to be greater than $300,000 shall be awarded based on Competitive Sealed Proposals. All Professional Design Services with an estimated value of $300,000 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 $600,000 per year. *Approved by GM 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. PURCHASING ORDINANCE – CHANGE MATRIX 2 | Page 2/21/18 SECTION REASON FOR CHANGE RECOMMENDED LANGUAGE VER 2.0 CURRENT LANGUAGE VER 1.0 Informational Changes 2.03 F (3) – Lists Current Ordinance specifies that the Master Contract must be awarded to a minimum of three firms. Proposed language offers the District the ability to award less than three since a minimum of 3 may not be obtainable. 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. If the District uses its best efforts to outreach to potential Contractors, and cannot obtain the minimum of 3 prequalified Contractors, the Purchasing Manager shall document the outreach and responses received. The District may then proceed with award to fewer than 3 prequalified firms. Each list shall be used for a maximum of 3 years. No later than 3 years after establishing a prequalified list, the Purchasing Manager must issue a new Request for Qualifications and establish a new list if such goods and/or services are required. 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. 3.03 E – Exceptions – Master Contracts: Professional Services Qualified Lists Allowed for establishment of lists of qualified contractors for staff to choose either on a rotational basis or selection, a Contractor to perform the service needed for the task. Ex: Investigative Services or Temporary Employment Agency Services (4) Master Contract. Master Contracts with firms on the qualified 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 renew 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 3.03(E). The Purchasing Manager shall follow a competitive selection process or cycle through on a rotation basis to one firm at a time. The Request for Qualifications shall specify any competitive process and/or rotation selection process, including selection of a single firm due to a unique qualification or circumstance, subject to the best interests of the District in any particular case. See Ordinance Final Draft for complete section. 3.03 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. PURCHASING ORDINANCE – CHANGE MATRIX 3 | Page 2/21/18 SECTION REASON FOR CHANGE RECOMMENDED LANGUAGE VER 2.0 CURRENT LANGUAGE VER 1.0 4.02 C (3) – Lists – Master Contracts Professional Design Services Less than or Equal to $300,000 – Lists Identified a mechanism to establish maximum number of firms and Current Ordinance specifies that the Master Contract must be awarded to a minimum of five firms. The change allows for the minimum number of awardees to be determined based on the District’s forecast business needs at the time of solicitation. Based on the recommendations of the evaluation committee, with the concurrence of the Director of Engineering, the Purchasing Manager shall establish a list of prequalified Contractors within each discipline/category. The RFQ will identify the number of anticipated firms on the prequalified list. The Purchasing Manager in conjunction with the Director of Engineering shall determine the number of firms needed on the list based on anticipated work. If the District cannot obtain the minimum number of firms specified in the RFQ, the Purchasing Manager shall record the outreach efforts and responses to the procurement file. The District may proceed with award to fewer firms. Each list shall be used for a maximum of 3 years. No later than 3 years after establishing a prequalified list for each service, the Purchasing Manager shall issue a new Request for Qualifications and establish a new list if such services are still required. 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. PURCHASING ORDINANCE – CHANGE MATRIX 4 | Page 2/21/18 SECTION REASON FOR CHANGE RECOMMENDED LANGUAGE VER 2.0 CURRENT LANGUAGE VER 1.0 4.02 C (5) – Task Orders – Master Contracts Professional Design Services Less than or Equal to $300,000 Added in language that allows Engineering to issue a Task Order to one firm if less than $25,000 for specialized qualifications which streamlines the procurement process and creates a more cost-effective and efficient way of doing business for both parties. 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. For Task Orders estimated to cost $25,000 or less, the Director of Engineering, with concurrence of the Purchasing Manager, may solicit a proposal from 1 (one) firm on the prequalified list. The price proposal shall be submitted in a separate sealed envelope. The Director of Engineering shall issue a written determination that (i) identifies the basis for selection, including but not limited to the specialized qualifications of the 1 (one) firm, and (ii) states that the negotiated price is fair and reasonable. Individual Task Orders in an amount not to exceed $300,000 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. 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 $300,000 will be awarded for each project. The Director of Engineering shall make a written determination 7.01 A – Delegation by General Manager Added in specific language that states the GM written procedures would delegate authority to the Purchasing Manager for award and execution of various types of procurements. Current language is vague on award and execution of procurements. A. Delegation by General Manager. The General Manager shall establish written procedures governing the delegation of authority to the Purchasing Manager to award and execute Contracts, Amendments, Change Orders, Renewals, Time Extensions and Assignments 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. 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. PURCHASING ORDINANCE – CHANGE MATRIX 5 | Page 2/21/18 SECTION REASON FOR CHANGE RECOMMENDED LANGUAGE VER 2.0 CURRENT LANGUAGE VER 1.0 7.01 C – Amendments and Change Orders Changed title and content to include Renewals, Time Extensions and Assignments. The Ordinance was silent on all renewals, all assignments and time extensions outside of Public Works. General Manager - (1) Authorization to approve and execute Amendments and Change Orders as long as the Amendment or Change Order is recommended by the applicable Department Director, and (a) the Amendment or Change Order does not change the contract price or the new contract price is within the delegated authority, or (b) the amendment or change order is within the approved contingency. (2) Authorization to approve and execute any Renewals that were originally approved by the General Manager, Standing Committee and/or Board of Directors. (3) Authorization to approve and execute Amendments and Change Orders for Contract Time Extensions (a) without any increase in Contract price; (b) with an increase in Contract price within the approved Contingency originally approved by the General Manager, Standing Committee and/or Board of Directors. (4) Authorization to approve and execute all Assignments unless determined by the General Manager that the assignment contains material changes and requires approval of the awarding authority. (5) Authorization to approve and execute Amendments to chemical Contracts unless the Contract unit price has increased beyond the unit price contingency approved by the District’s Standing Committee and/or Board of Directors. (6) Authorization to approve and execute chemical contract Renewals including changes to the unit price, increases or decreases to the estimated annual / or General Manager – (1) Authorization to approve and execute Amendments and Change Orders as long as (1) the 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 priced approved by the District’s Board of Directors. Unit price increases in chemical Contracts required Board of Directors approval. PURCHASING ORDINANCE – CHANGE MATRIX 6 | Page 2/21/18 SECTION REASON FOR CHANGE RECOMMENDED LANGUAGE VER 2.0 CURRENT LANGUAGE VER 1.0 specified term amount. Increases that cause the contract amount to exceed the General Manager’s delegated authority shall be approved by the Standing Committee and/or Board of Directors. 7.03 – Task Orders Clarified award delegation of authority for all types of Task Orders mentioned in Ordinance. General Manager - (1) For Task Orders covered under Article 2. Goods and Services, authorization to approve and execute Task Orders and/or Amendments to the Task Orders provided the cumulative total of the Task Order and Amendments thereto does not exceed $300,000, upon the recommendation of the Department Director (2) For Task Orders covered under Article 2. Goods and Services, all new Task Order procurements between $50,000 and $300,000 are to be reported to the Board of Directors on a quarterly basis, in arrears. (3) For Task Orders covered under Article 3. Professional Services of this Ordinance, authorization to approve and execute Task Orders and/or Amendments to the Task Orders provided the cumulative total of the Task Order and Amendments thereto does not exceed $100,000, upon the recommendation of the Department Director. (4) For Task Orders covered under Article 4. Professional Design Services, authorization to approve and execute Task Orders and/or Amendments to the Task Orders provided the cumulative total of the Task Order and Amendments thereto does not exceed $300,000, upon the recommendation of the Department Director. (5) For Task Orders covered solely under Article 4, Professional Design Services of this Ordinance, the General Manager may delegate authorization to approve and execute Professional Design Service General Manager - Authorization to approve, upon the 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 Amendment thereto do not exceed $100,000. Standing Committees - Authorization to approve, upon the recommendation of the General Manager/Assistant General Manager, Task Orders and/or Amendments to the Task Orders and/or Amendment to the Task Orders over $100,000 provided the cumulative total of the Task Order and Amendments do not exceed $200,000. Board of Directors – All Task Orders and/or amendments that exceed $200,000 shall be approved by the Board of Directors. PURCHASING ORDINANCE – CHANGE MATRIX 7 | Page 2/21/18 SECTION REASON FOR CHANGE RECOMMENDED LANGUAGE VER 2.0 CURRENT LANGUAGE VER 1.0 Master Contract Task Orders up to or equal to $100,000, which is inclusive of amendments to Task Orders, to the Director of Engineering. This authorization may not be sub delegated further. This authorization does not apply to Master Contracts covered under Article 2 or Article 3 of this Ordinance. Standing Committee – (1) For Task Orders covered under Article 3. Professional Services of this Ordinance, authorization to approve Amendments to the Task Orders where the cumulative value exceeds $100,000 provided the cumulative total of the Task Order and Amendments does not exceed $200,000, upon the recommendation of the General Manager/Assistant General Manager. Board of Directors - (1) For Task Orders covered under Article 2. Goods and Services, all Task Orders and/or amendments where the cumulative value exceeds $300,000 shall be approved by the Board of Directors. (2) For Task Orders covered under Article 3. Professional Services, all Task Orders and/or amendments that exceed $200,000 shall be approved by the Board of Directors. (3) For Task Orders covered under Article 4. Professional Design Services, all Task Orders and/or Amendments that exceed $300,000 shall be approved by the Board of Directors. 7.02 – Contingency Release Adding specific section to Ordinance clarifying the GM’s contingency release authority. The General Manager shall manage the release of all contingency funds for use in all amendments and change orders within the approved contingency amounts. Did not exist in Ordinance. Taken in its entirety from GM P&Ps. Page 1 of 3 ADMINISTRATION COMMITTEE Meeting Date 04/11/18 To Bd. of Dir. -- AGENDA REPORT Item Number 4 Item Number -- Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Celia Chandler, Director of Human Resources SUBJECT: STATUS OF 2018-19 PROPERTY-LIABILITY INSURANCE RENEWALS GENERAL MANAGER'S RECOMMENDATION Information Only. BACKGROUND The Risk Management Division of Human Resources (Risk Management) provides the Administration Committee an annual status update regarding the upcoming annual renewals of the Orange County Sanitation District’s (Sanitation District) major insurance policies for the upcoming year. Risk Management and the 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’s budget provides funds for the renewal of the following four major insurances for Sanitation District operations: 1) Excess General Liability Insurance 2) Excess Workers’ Compensation 3) All-Risk Property and Flood insurance (includes Boiler & Machinery insurance) 4) Earthquake Insurance The Sanitation District’s operational insurance broker will be present at the Committee meeting to give a short informational presentation about this year’s insurance outlook. RELEVANT STANDARDS • Protection of Orange County Sanitation District assets TIMING CONCERNS Current insurance expires June 30, 2018. RAMIFICATIONS OF NOT TAKING ACTION None at this time because this is informational only; however, action must be taken before June 30, 2018 or the Sanitation District’s insurance will lapse. Page 2 of 3 PRIOR COMMITTEE/BOARD ACTIONS May 2017 - The Board approved renewal of the above policies for the period July 1, 2017 through June 30, 2018. 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. This program currently provides the Sanitation District with a $40 million dollar 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 dollar coverage has a self-insured deductible of $500,000. Since 1997, the Employment Practices portion of coverage has been enhanced from a $2 million dollar sub-limit to the full policy limit of $40 million dollars. The premium cost, approved by the Board (May 2017), for the current fiscal year, July 2017 - June 2018, was not to exceed $445,639. 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. The Excess Workers’ Compensation program currently provides “Statutory” (unlimited) coverage with a self-insured retention (SIR), or deductible, of $1 million dollars. The use of Excess Workers’ Compensation Insurance dates back to the late 1980’s. The renewal of the Excess Workers’ Compensation Insurance for the period July 1, 2017 through June 30, 2018 was approved by the Board (May 2017) and was at an estimated premium of $208,000 based on the estimated 2017-18 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. 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. Page 3 of 3 Current Property Insurance limits are $1 billion dollars for most perils other than flood and earthquakes, and $300 million dollars for flood, with many sub-limits for various situations. In order to reach $1 billion dollars 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 Boiler & Machinery insurance program, part of the property insurance, 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 of $100 million dollars 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 All-Risk Property and Flood Insurance (including Boiler & Machinery) for the period July 1, 2017 through June 30, 2018 was approved by the Board (May 2017) at a premium not to exceed $677,628. 4) Earthquake Insurance The Sanitation District previously carried earthquake insurance as part of its Property Insurance, but in the last 15 years earthquake insurance proved difficult to obtain or not cost-effective. The Sanitation District asked its insurance broker each year to survey the market to see if rates have changed. Finally, in 2015 a plan was created to insure several key Sanitation District structures identified by Engineering, thus keeping the cost in line. The insurance is a high deductible plan with a limit of $25 million dollars in total. The cost of the Earthquake Insurance was approved by the Board (May 2017) for fiscal year 2017-18 for 15 key structures at a premium not to exceed $78,062 dollars. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: N/A ORANGE COUNTY SANITATION DISTRICT COMMON ACRONYMS ACWA Association of California Water Agencies LAFCO Local Agency Formation Commission SARFPA Santa Ana River Flood Protection Agency APWA American Public Works Association LOS Level Of Service SARI Santa Ana River Interceptor AQMD Air Quality Management District MGD Million Gallons Per Day SARWQCB Santa Ana Regional Water Quality Control Board ASCE American Society of Civil Engineers MOU Memorandum of Understanding SAWPA Santa Ana Watershed Project Authority BOD Biochemical Oxygen Demand NACWA National Association of Clean Water Agencies SCADA Supervisory Control And Data Acquisition CARB California Air Resources Board NGOs Non-Governmental Organizations SCAP Southern California Alliance of Publicly Owned Treatment Works CASA California Association of Sanitation Agencies NPDES National Pollutant Discharge Elimination System SCAQMD South Coast Air Quality Management District CCTV Closed Circuit Television NWRI National Water Research Institute SOCWA South Orange County Wastewater Authority CEQA California Environmental Quality Act O & M Operations & Maintenance SRF Clean Water State Revolving Fund CIP Capital Improvement Program OCCOG Orange County Council of Governments SSMP Sewer System Management Plan CRWQCB California Regional Water Quality Control Board OCHCA Orange County Health Care Agency SSO Sanitary Sewer Overflow CWA Clean Water Act OCSD Orange County Sanitation District SWRCB State Water Resources Control Board CWEA California Water Environment Association OCWD Orange County Water District TDS Total Dissolved Solids EIR Environmental Impact Report OOBS Ocean Outfall Booster Station TMDL Total Maximum Daily Load EMT Executive Management Team OSHA Occupational Safety and Health Administration TSS Total Suspended Solids EPA US Environmental Protection Agency PCSA Professional Consultant/Construction Services Agreement WDR Waste Discharge Requirements FOG Fats, Oils, and Grease PDSA Professional Design Services Agreement WEF Water Environment Federation gpd gallons per day POTW Publicly Owned Treatment Works WERF Water Environment & Reuse Foundation GWRS Groundwater Replenishment System ppm parts per million WIFIA Water Infrastructure Finance and Innovation Act ICS Incident Command System PSA Professional Services Agreement WIIN Water Infrastructure Improvements for the Nation Act IERP Integrated Emergency Response Plan RFP Request For Proposal WRDA Water Resources Development Act JPA Joint Powers Authority RWQCB Regional Water Quality Control Board ORANGE COUNTY SANITATION DISTRICT GLOSSARY OF TERMS 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 known as the benthic zone. BIOCHEMICAL OXYGEN DEMAND (BOD) – The amount of oxygen used when organic matter undergoes decomposition by microorganisms. Testing for BOD is done to assess the amount of organic matter in water. BIOGAS – A gas that is produced by the action of anaerobic bacteria on organic waste matter in a digester tank that can be used as a fuel. 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 farmland 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. CONTAMINANTS OF POTENTIAL CONCERN (CPC) – Pharmaceuticals, hormones, and other organic wastewater contaminants. DILUTION TO THRESHOLD (D/T) – The dilution at which the majority of people detect the odor becomes the D/T for that air sample. GREENHOUSE GASES (GHG) – 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 SYSTEM (GWRS) – 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 per day of drinking quality water to replenish the local groundwater supply. LEVEL OF SERVICE (LOS) – Goals to support environmental and public expectations for performance. N-NITROSODIMETHYLAMINE (NDMA) – A N-nitrosamine 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 and Water Environment Federation, with advisory support from the US Environmental Protection Agency. NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation 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) – A municipal wastewater treatment plant. SANTA ANA RIVER INTERCEPTOR (SARI) LINE – A regional brine line designed to convey 30 million gallons per day 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 runoff. 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. 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. The Orange County Sanitation District’s service area is in the Santa Ana River Watershed.