HomeMy WebLinkAbout08-28-2013 Steering Committee Agenda Packet.pdf Wednesday, August 28, 2013
Orange County Sanitation District 5:30 P.M.
Regular Meeting of the Administration Building
Steering Committee Conference Rooms A R B
10844 Ellis Avenue
Fountain Valley, CA 92708
r,
(714) 593-7130
AGENDA
DECLARATION OF QUORUM:
PUBLIC COMMENTS: If you wish to speak, please complete a Speaker's Form and give it to the
Clerk of the Board. Speakers are requested to limit comments to three minutes.
REPORTS: The Committee Chair and the General Manager may present verbal reports on
miscellaneous matters of general interest to the Directors. These reports are for information only and
require no action by the Directors.
CONSENT CALENDAR:
1. Approve Minutes of the July 24, 2013 Steering Committee Meeting.
2. Approve Amendment No. 1 to Professional Services Agreement with Townsend
Public Affairs (Purchase Order No. 104836-OB) for State Legislative Services, to
enhance legislative assistance for the period September 1, 2013 through August
31, 2014, for an additional contractual amount of$2,500 per month.
ACTION ITEMS:
3. Direct General Manager and General Counsel to include approval authority up to
$200,000 for standing Committees in the draft purchasing and contracting
ordinance.
4. Establish a Legislative and Public Affairs Committee of the Board of Directors.
INFORMATION ITEMS:
5. Legislative Update
08/28/13 Steering Committee Agenda Page 1 of 3
CLOSED SESSION:
During the course of conducting the business set forth on this agenda as a regular meeting of the
Board, the Chair may convene the Board in closed session to consider matters of pending real estate
negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code
Sections 54956.8, 54956.9, 54957 or 54957.6, as noted.
Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation;
(c) employment actions or negotiations with employee representatives;or which are exempt from public
disclosure under the California Public Records Act, may be reviewed by the Board during a permitted
closed session and are not available for public inspection. At such time as the Board takes final action
on any of these subjects, the minutes will reflect all required disclosures of information.
Convene in closed session.
(1) CONFERENCE WITH LEGAL COUNSEL RE. EXISTING LITIGATION
(Government Code Section 54956.9(d)(1))
Number of Cases: 2
(A)Santa Ana Watershed Project Authority v. Orange County Sanitation District,
Contractual Arbitration, JAMS Reference No. 1210030062
(B)Kiewit Infrastructure West Co. v. Orange County Sanitation District, Orange
County Superior Court, Case No. 30-2012-00544245
(2) CONFERENCE WITH LEGAL COUNSEL RE. ANTICPATED LITIGATION
(Government Code Section 54956.9(d)(4))
Initiation of Litigation pursuant to 54956.9(d)(4); Number of Potential Cases: 2
(A) SAW PA Enforcement/Cost Recovery Action
(B) Disclosure of Confidential Information
(3) CONFERENCE WITH LABOR NEGOTIATORS
(Government Code Section 54957.6)
Agency Designated Representatives: James D. Herberg, General Manager, Jeff
Reed, Director of Human Resources, and James D. Ruth, Chief Negotiator
Employee Organization: Supervisor Group and Professional Group
Reconvene in regular session.
Consideration of action, if any, on matters considered in closed session.
O8/28/13 Steering Committee Agenda Page 2 of 3
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA
ITEMS, IF ANY:
ADJOURNMENT:
The next Steering Committee meeting is scheduled for Wednesday, September 25,
2013, at 5:30 p.m.
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)593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability
and the type of accommodation requested.
Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2,this agenda
has been posted outside the main gate of the Sanitation District's Administration Building located at 10844 Ellis
Avenue, Fountain Valley, California, not less than 72 hours prior to the meeting date and time above. All public
records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting
to all,or a majority of the Board of Directors,are available for public inspection in the office of the Clerk of the Board.
NOTICE TO DIRECTORS: To place items on the agenda for the Committee Meeting, items must be submitted to the
Clerk of the Board 14 days before the meeting.
Made E.Ayala
Clerk of the Board
(714)593-7130
mavalaOZocsd.com
For any questions on the agenda,Committee members may contact staff at:
General Manager Jim Herberg (714)593-7110 iherbergaocsd.com
Assistant General Manager Bob Ghirelli (714)593-7400 m1nirelli0tomd.com
Director of Engineering Nick Kanetis (714)593-7310 nkanetislolocsd.com
Director of Facility Support Services Nick Arhontes (714)593-7210 narhontes(alomd.mm
Director of Finance and Lorenzo Tyner (714)593-7550 ItynerGiloosd.com
Administrative Services
Director of Human Resources Jeff Read (714)593-7144 ireed(alocsd.com
Director of Operations&Maintenance Ed Torres 714 593-7080 etorres ocsd.com
08/28/13 Steering Committee Agenda Page 3 of 3
Item No. 1
MINUTES
STEERING COMMITTEE MEETING
Orange County Sanitation District
The Steering Committee meeting convened on Wednesday, July 24, 2013, at
5:30 p.m. in the Administration Building of the Orange County Sanitation District.
A quorum was declared present, as follows:
COMMITTEE MEMBERS STAFF PRESENT
PRESENT: Jim Herberg, General Manager
Troy Edgar, Chair Bob Ghirelli, Assistant General
John Anderson, Vice-Chair Manager
Tom Beamish, Operations Committee Nick Arhontes, Director of Facilities
Chair Support Services
Brad Reese, Administration Committee Nick Kanetis, Director of Engineering
Chair Jeff Reed, Director of Human
John Nielsen Resources
John Withers Ed Torres, Director of Operations &
Maintenance
COMMITTEE MEMBERS ABSENT: Lorenzo Tyner, Director of Finance &
Administrative Services
None. Maria Ayala, Clerk of the Board
Jennifer Cabral
Jim Colston
Dean Fisher
Norbert Gaia
Todd Haynes
Rob Thompson
OTHERS PRESENT:
Jim Ferryman, Board Member
Brad Hogin, General Counsel
Heather Stratman, Townsend Public
Affairs
Drew Kolosky
PUBLIC COMMENTS:
None.
Minutes of the Steering Committee
July 24, 2013
Page 2 of 4
COMMITTEE CHAIR REPORT:
Chair Edgar reported on today's "Cease the Grease' event in the City of Stanton.
Chair Edgar also discussed the need to develop the District's legislative and public
outreach programs.
GENERAL MANAGER REPORT:
General Manager, Jim Herberg, reported that he is working on preparing the
General Manager's Work Plan; a final version will be forthcoming in the next few
weeks. Mr. Herberg also announced the plan to hold two Board workshops that
will focus on the new Strategic Plan. The Steering Committee agreed to move
forward with the two meetings, scheduled to be held on September 11 and
October 2, after the Administration and Operations Committee meetings.
Lorenzo Tyner, Director of Finance and Administrative Services, briefly reported
on "Low Flow Rate Alternative". Mr. Tyner provided information regarding end-user
fees and how discounts would impact the District rates in the future.
CONSENT CALENDAR:
1. MOVED, SECONDED, AND DULY CARRIED: Approve Minutes of the
June 26, 2013 Steering Committee Meeting.
2. MOVED, SECONDED, AND DULY CARRIED: Approve the placement of a
Memorial Plaque at Plant No. 2, Headworks "D" facilities, in recognition of
Pamela Koester for her contributions to the Orange County Sanitation
District.
ACTION ITEMS:
Mr. Herberg gave a brief overview of the nomination process for the Honor Walk
Brick Recipients. Board Member, Jim Ferryman, spoke on behalf of Mr. Collins'
nomination.
3. A. MOVED, SECONDED, AND DULY CARRIED: Steering Committee
approved John Collins, past Board Member, as an Honor Walk Brick
Recipient for the year 2013.
B. MOVED, SECONDED, AND DULY CARRIED: Approve nominated
retired employees, Ron Wade and Mohammed Babaielivari, as
Honor Walk Brick Recipients for the year 2013.
Minutes of the Steering Committee
July 24, 2013
Page 3 of 4
The Steering Committee held discussion regarding Item 4. Mr. Herberg and Mr.
Tyner addressed questions from the Committee and provided additional
information.
4. Recommend to the Board of Directors to:
A. Declare the Orange County Sanitation District's position on the
changes to the Orange County Retirement System (OCERS)
Unfunded Actuarial Accrued Liability (UAAL) Amortization Period;
and
B. Provide direction to the General Manager on measures to be taken
in representing declared Board position.
MOVED, SECONDED, AND DULY CARRIED: Steering Committee
approved to recommend to the Board of Directors to declare that the
Orange County Sanitation District opposes any changes at this time.
Director Anderson abstained.
INFORMATION ITEMS:
2. Legislative Update
Heather Stratman, Senior Director for Townsend Public Affairs, provided a
legislative update to the Committee. Ms. Stratman will be working with the
General Manager and staff to on the District's legislative program.
CLOSED SESSION
CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE
SECTIONS: 54956.9(d)(1), 54956.9(d)(2), 54956.9(d)(4), and 54956.9(e)(3).
The Committee convened in closed session at 6:07 p.m. to discuss four items.
Confidential Minutes of the closed Session have been prepared in accordance
with the above Government Code Sections and are maintained by the Clerk of the
Board in the Official Book of Confidential Minutes of Board and Committee Closed
Meetings.
RECONVENE IN REGULAR SESSION: The Committee reconvened in regular
session at 6:28 p.m.
Minutes of the Steering Committee
July 24, 2013
Page 4 of 4
CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN
CLOSED SESSION:
None.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA
ITEMS, IF ANY:
None.
ADJOURNMENT:
The Chair declared the meeting adjourned at 6:28 p.m.
Submitted by:
Maria E. Ayala
Clerk of the Board
STEERING COMMITTEE Meeting Date To ad.of Dir.
08/28A3 --
AGENDA REPORT em Number Item Number
2
Orange County Sanitation District
FROM: Nick Kanetis, Director of Engineering
Originator: Jim Colston, Environmental Compliance Manager
SUBJECT: STATE LEGISLATIVE ASSISTANCE
GENERAL MANAGER'S RECOMMENDATION
Approve Amendment No. 1 to Professional Services Agreement with Townsend Public
Affairs (Purchase Order No. 104836-OB) for State Legislative Services, to enhance
legislative assistance for the period September 1, 2013 through August 31, 2014, for an
additional contractual amount of$2,500 per month.
SUMMARY
An amendment to the original Professional Services Agreement with Townsend Public
Affairs (TPA) is being proposed in order to assist staff with ongoing legislative activities
following the unplanned resignation of the prior Public Affairs Manager. This is a limited-
term contract amendment that will be used as a stop-gap measure to provide staff with
the necessary resources to manage the legislative program in the absence of this
essential position.
Planned activities for TPA include the following:
(1) Establish the legislative outreach program for the Board of Directors including visits
to Sacramento and with local legislators;
(2) Provide monthly and additional, as needed, updates to the Steering Committee and
members of the Board of Directors; and
(3) Provide a detailed legislative matrix of bills of interest to the Orange County
Sanitation District, including suggested bill positions, updated at least monthly.
ADDITIONAL INFORMATION
N/A
PRIOR COMMITTEE/BOARD ACTIONS
May 2013 —The Steering Committee approved a Professional Services Agreement with
Townsend Public Affairs for State Legislative Services for the period of July 1, 2013
through June 30, 2014 at a monthly rate of $5,000 per month for an annual amount not
to exceed amount of$60,000.
Page 1 of 2
October 2007 — Approved five-year agreements with state and federal legislative
advocates and approved four one-year renewals at the discretion of the Steering
Committee.
CEQA
N/A
BUDGETIDELEGATION OF AUTHORITY COMPLIANCE
N/A
ATTACHMENTS
The following attachment(s) are provided in hard copy and may also be viewed on-line at the OCSD
website(www.ocsd.coml with the complete agenda package:
. Amendment No. 1 to PSA, with Exhibit A-1 (4 pages)
JC:jb:gc
Page 2 of 2
Return to Mende Report
AMENDMENT NO. 1
PROFESSIONAL SERVICES AGREEMENT
State Legislative Services
THIS AMENDMENT TO THE AGREEMENT is made and entered into, to be effective
August 28, 2013, between Orange County Sanitation District hereinafter referred to as "OCSD"
with main offices located at 10844 Ellis Avenue, Fountain Valley, California 92708-7018 and
Townsend Public Affairs with a principal business at 2699 White Road, Suite 251, Irvine, CA
92614 (hereinafter referred to as " Service Provider") collectively referred to as the "Parties".
WHEREAS, OCSD and Service Provider executed, delivered and entered into the
Agreement between OCSD and Service Provider, the effective date of which is July 1, 2013
("the Agreement"); and
WHEREAS, the Parties wish to amend the Agreement to make certain modifications
which shall be called Amendment No. 1 ("Amendment"); and
WHEREAS, Service Provider submitted its proposal for the required modifications, dated
August 19, 2013, (attached hereto and incorporated herein as"Exhibit A-1"); and
WHEREAS, on August 28, 2013, the Board of Directors of OCSD, by minute order,
authorized execution of this Amendment between OCSD and Service Provider; and
WHEREAS, the Parties to the Agreement desire that this Amendment be incorporated
into the Agreement and become a part thereof from the beginning; and
WHEREAS, the Parties desire that the Agreement as modified by this Amendment shall
constitute the sole and entire Agreement among the Parties;
NOW, THEREFORE, in consideration of these premises and the mutual covenants
contained herein, the Parties agree to amend the Agreement as follows:
1. To name Ms. Heather Stratman to serve as the "Project Manager" and primary point of
contact for OCSD to state legislators, legislative staff and legislative committees for
POTW associations until the OCSD position is filled or the work is otherwise managed
in-house. The time period for the Project Manager position is for a minimum of six (6)
months, commencing September 1, 2013 and continuing through February 28, 2014,
unless extended (on a month-to-month basis) by OCSD. The Project Manager position
shall not extend beyond the Contract End Date of June 30, 2014; and
2. Service Provider shall, while the Project Manager position is in effect, provide a detailed
legislative matrix, including recommended positions, updated at least monthly; and
3. Service Provider shall develop and, while the Project Manager position is in effect,
maintain a Board outreach program including meetings in Sacramento and with local
legislators in their local offices; and
4. To make the following clarifications: a. Service Provider will provide written monthly
updates 2 weeks prior to Steering committee meetings, and b. Ms. Stratman will attend
each Steering committee meeting, preside over the legislative-activities portion, provide
oral updates, and make herself available to meet with the Board Chair, prior to each
Steering committee/Board meeting to plan the legislative outreach program; and
5. To increase the monthly payment, by $2,500 to $7,500, while the Project Manager
position is in effect, for a new Total Contract Amount Not to Exceed Eighty-two
Thousand Five Hundred and 00/00 Dollars ($82,500)for the Contract Period.
Amendment No.1 1 of 2 State Legislative Services
Return to Mends Rom
Except as expressly amended above, the Agreement will remain unchanged and in
full force and effect.
IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused
this Amendment No.1 to be signed by the duly authorized representatives as of the day and
year last signed below.
ORANGE COUNTY SANITATION DISTRICT
Dated: By:
Chair Board of Directors
Dated: By:
Clerk of the Board
Dated: By:
Contracts/Purchasing Manager
TOWNSEND PUBLIC AFFAIRS
Dated: By:
Print Name and Title of Officer
IRS Employer's I.D. Number
Amendment No.1 2 of 2 State Legislative Services
Return to Aaentle Report
T U W N S E N D Exhibit"A-1"
PUB
TPA
MEMO
To: Orange County Sanitation District
Bob Ghirelli,Assistant General Manager
From: Townsend Public Affairs, Inc.
Date: July 17, 2013
Subject: Legislative Staffing Services
This document is intended to serve as a supplemental proposal for Legislative Staffing services
provided by Townsend Public Affairs, Inc ('TPA') for the Orange County Sanitation District
("OCSD").
TPA proposes to provide the Project Management support to OCSD, specific to the following
activities:
• Project Manager and primary point of contact for OCSD to state legislators, legislative
staff and legislative committees for POTW associations until the OCSD position is filled
or the work is otherwise managed in-house.
• Proactive monitoring and analysis of new legislation to assist in assessing potential
impacts on the OCSD and working directly with OCSD staff to develop a
recommendation on an OCSD position
• Preparation of reports, bill summaries, a regularly updated legislative matrix and other
legislation-related communications to ensure the most current information is readily
available for OCSD Steering Committee, Board, and Staff
• Strategic consulting and advocacy regarding specific bills, amendments, parliamentary
and administrative maneuvers to achieve OCSD goals
• Assistance in preparation of testimony, correspondence and other formal OCSD
communication regarding legislative and policy matters
• Regular and active participation in the OCSD Steering Committee to provide timely
analysis on issues of interest to OCSD Board and Staff
• TPA has secured and worked legislation specific District legislation in the past and is
prepared to assist with the process again should the need arise. This would include, but
not necessarily be limited to:
o Crafting of specific bill language and monitoring of Legislative Counsel process
o Preparation of issue summaries and other communications
o Extensive engagement with legislative leadership, relevant Committee leaders
and other key legislators
Federal Once•600 Pennsylvania SE•Suite 207-Washington,DC 20003•Phone(202)54&w96•Fax(202)546 555
State Capitol Mee"925 L Street-Suite 1404•Sacramento,CA 95814•Phone(916)447-0 86•Fax(916)4 0383
Northern California Office-300 Frank Ogawa Plan•Suite 204.Oakland,CA 94612•Phone(510)835-9050•Fax(510)835-9030
Southern California Office•2699 White Road-Suite 251•Imite,CA 92614•Phone(949)399-9050-Fax(949)476-8215
Return to Mende Report
o Proactive engagement of the Governor's Administration, particularly in the
Legislative and Resources units
o In conjunction with OCSD staff and Directors, active outreach to wastewater
industry and other concerned constituencies designed to promote purpose and
benefits of legislation and mitigate potential opposition
o Aggressive process management of the legislative process including timelines,
support of the author(s) and any other tasks required to ensure progress of the
bill
Additional staffing support
• While the Project Manager position is in effect, provide a detailed legislative matrix,
including recommended positions, updated at least monthly
• Duties and assignments delegated by the General Manager and/or his designated staff
• Management and attendance for Sacramento advocacy trips, including maintaining a
Board outreach program including meetings in Sacramento and with local legislators in
their local offices
• Onsite attendance for staff meetings or other needs deemed by the General Manager
and/or his designated staff
• Meetings and/or appropriate correspondence to OCSD Board Members regarding
priority legislative issues and strategy engagement.
Budget/Cost Proposal
TPA proposes an additional monthly fee for services of $2500/month for a six-month period
from September 1, 2013 through February 28, 2013.
0 Scope of Services I Orange County Sanitation District Page 2
STEERING COMMITTEE Meeting Dare To ad.of W.
08,28,13 --
AGENDA REPORT Item Number Item Number
3
Orange County Sanitation District
FROM: James D. Herberg, General Manager
SUBJECT: APPROVAL AUTHORITY FOR COMMITTEES
GENERAL MANAGER'S RECOMMENDATION
Direct General Manager and General Counsel to include approval authority up to
$200,000 for committees in the draft purchasing and contracting ordinance.
SUMMARY
The District's current policies and procedures for the award of purchase orders and
contracts, and the delegation of authority to implement these procedures, were
established by Resolution No. OCSD 07-04 of the Board in 2007. General Counsel and
Staff are drafting an ordinance for purchase orders and contracts, and associated
policies and procedures. The draft ordinance will be presented to the Administration
Committee in September 2013 for approval.
Currently, the General Manager has authority to approve purchase orders and contracts
up to $100,000. The standing committees have authority from $100,000 to $200,000.
Purchases and contracts above $200,000 must be approved by the Board of Directors
following action by a standing Committee.
The current authority of committees to approve purchases between $100,000 and
$200,000 has been used about 10 times per year over the past two years. The main
advantages of this authority are: 1) Contracts can move forward 2-3 weeks faster
because work can commence without waiting for Board approval; and 2) Board
agendas are somewhat shorter. The main disadvantage is that the full Board does not
get the opportunity to review and debate purchase orders and contracts less than
$200,000.
PRIOR COMMITTEE/BOARD ACTIONS
December 2012 — Board adopted Resolution No. OCSD 12-17: Amending Section 4.09
Request for Procedure of Resolution No. OCSD 07-04 entitled "Establishing Policies
and Procedures for the Award of Purchasing Orders and Contracts; Award of Public
Works Project Contracts; Award of Professional Services Contracts; and Delegation of
Authority to Implement said Policies and Procedures were approved by the Board of
Directors"
Page 1 of 2
June 2007 — Board adopted Resolution No. 07-13: Establishing Policy for the Payment
of Mandatory and Statutory Fees Greater than the Limits established in Resolution No.
OCSD 07-04 and in future updates of the Delegation of Authority.
February 2007 — Board adopted Resolution No. 07-04: Establishing Policies and
Procedures for the Award of Purchasing Orders and Contracts; Award of Public Works
Project Contracts; Award of Professional Services Contracts; and Delegation of
Authority to Implement said Policies and Procedures were approved by the Board of
Directors.
BUDGET/DELEGATION OF AUTHORITY COMPLIANCE
N/A
ATTACHMENTS
The following attachmentia) maybe viewed on-line at the OCSD website (www.ocsd.com) with the
complete agenda package:
• Resolution No. OCSD 07-04
• Resolution No. OCSD 07-13 (Amending Resolution No. OCSD 07-04)
• Resolution No. OCSD 12-17 (Amending Resolution No. OCSD 07-04)
JDH/clr/kal
Page 2 of 2
Return to Agenda Reporl
AMENDED BY
j� SANjr OCSD 12-17 &
4oJN /o OCSD 07-13
¢ A
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o —
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RESOLUTION NO. OCSD 07-04
ESTABLISHING POLICIES AND PROCEDURES FOR: THE
AWARD OF PURCHASE ORDERS AND CONTRACTS: PUBLIC
WORKS PROJECT CONTRACTS: PROFESSIONAL SERVICES
CONTRACTS: AND DELEGATION OF AUTHORITY TO
IMPLEMENT SAID POLICIES AND PROCEDURES
A RESOLUTION OF THE BOARD OF DIRECTORS OF
ORANGE COUNTY SANITATION DISTRICT (DISTRICT
OR OCSD) ESTABLISHING POLICIES AND
PROCEDURES FOR THE AWARD OF PURCHASE
ORDERS AND CONTRACTS; AWARD OF PUBLIC
WORKS PROJECT CONTRACTS; AWARD OF
PROFESSIONAL SERVICES CONTRACTS; AND
DELEGATION OF AUTHORITY TO IMPLEMENT SAID
POLICIES AND PROCEDURES; AND REPEALING
RESOLUTION NO. OCSD 06-28
TABLE OF CONTENTS
ARTICLE I: RECITAL OF FINDINGS...................................................Page 1
Section 1,01: Findings: Declaration of Intent.
ARTICLE It: TERMS AND DEFINITIONS..............................................Page 2
Section 2.01: Terms and Definitions
ARTICLE III: DELEGATION OF AUTHORITY—GENERAL..................Page 5
Section 3.01: Purpose and Scope.
Section 3.02: Authorizing General Manager to Establish Rules
and Guidelines.
Section 3.03: Procedure for Delegation of Authority
➢ Approval Levels
a. Co-signatures
b. Procedural Requirements
c. Special Consideration for Extraordinary
Projects I Events
Section 3.04: Purchasing System Adoption
Section 3.05: Purchasing Division Delegated Authority
Section 3.06: Procurement Card Program
Section 3.07: Requisitions
Section 3.08: Cooperative Procurement
Section 3.08: Purchases: Emergency
Section 3.10: Purchases: Sole Sources; Standardized Prices,
Specialized Services, and Sole Sources
Section 3.11: Purchase Orders
Section 3.12: Purchases: Encumbrances of Funds
Section 3.13: Blanket Purchase Orders
Section 3.14: Surplus Supplies, Materials, and Equipment.
Section 3.15: Sale of Real Property.
Section 3.16: Recordkeeping
ARTICLE IV: OPERATIONAL SUPPLIES, MATERIALS. ....................Page 12
EQUIPMENT& SERVICES, INCLUDING
PROFESSIONAL SERVICE CONSULTANTS
(EXCLUDING PUBLIC WORKS CONTRACTS OR
PROFESSIONAL DESIGN SERVICE AGREEMENTS)
Section 4.01: Purpose and Scope.
Section 4.02: Purchases: Bidding Requirements,
Section 4.03: Bidding Procedure: Purchases Greater than
$50,000.
Section 4.04: Purchases between $50,000 and $100,000.
Section 4.05: Bidding Procedure: Purchases Less Than
$50.000.
Return b Mende Report
Section 4.06: Bidding Procedure: Purchases Less
Than$5,000.
Section 4.07: Inspection and Testing.
Section 4.08: Purchases: Negotiated Contracts.
Section 4.09: Request for Proposal Procedure.
ARTICLE V: PROFESSIONAL DESIGN SERVICE AGREEMENTS...Page 18
Section 5.01: Purpose and Scope.
Section 5.02: Retention of Professional Design Consultants.
Section 5.03: Facilities Engineering Project: Annual Budget
Approval.
Section 5.04: Facilities Engineering Project: Selection of
Consultants—Procedure.
Section 5.05: Facilities Engineering Project:Approval of Plans
and Specifications
Section 5.06: Major Capital Project: Scope of Work
a. Proposals—Notice Requesting
b. Staff Screening Committee
c. Proposal—Contents
d. Review of Proposals by Staff Screening
Committee
e. Procurement&Negotiation of Agreement
f. Continuation of Services
g. Specialized Services
In. Agreement for Services
I. Conflict of Interest
Section 5:07: Major Capital Project: Selection of Consultants—
Procedure.
Section 5.08: Major Capital Project: Engineer's Estimate;
Approval of Plans and Specifications
ARTICLE VI : PUBLIC WORKS CONSTRUCTION CONTRACTS........Page 26
Section 6.01: Purpose and Scope.
a. Notice Inviting Bids
b. Bidder's Security
c. Bid Opening Procedure
d. Rejection of Bids
e. Tie Bids
I. No Bids
g. One Bid
h. Emergencies
i. Surety Bonds
j. Cost Records
Section 6.02: Public Works: Bidding Required.
Section 6.03: Bidding Procedure: Public Works Construction
Greater than$35,000.
III
ARTICLE VII: AWARD AUTHORIZATION............................................Page 29
Section 7.01 Agreements,Amendments & Change Orders:
A. Agreements
B. Amendments & Change Orders
C. Change Orders to Existing Agreements
Section 7.02 Facilities Engineering Projects:
A. Task Orders
B. Amendments
Section 7.03 Public Works Projects:
A. Close-Out Agreements
B. Notice of Completion
C. Time Extension to Construction Contract
Agreement
ARTICLE Vlll: TRAINING, MEETINGS, AND RELATED TRAVEL
EXPENDITURES ...........................................................Page 35
Section 7.01: Purpose and Scope.
Section 7.02: General.
Section 7.03: Policies and Procedures.
ARTICLE IX: MISCELLANEOUS.........................................................Page 36
Section 8.01: Noncompliance.
Section 8.02: Severability.
Section 8.03: Effective Date.
Section 8.04: Repeal of Prior Resolution.
iv
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ARTICLE I
RECITAL OF FINDINGS
Section 1.01: Findings: Declaration of Intent.
A. California Government Code Section 54202 requires that every
local agency shall adopt policies and procedures, including bidding regulations
governing purchases of supplies, services, materials and equipment,and that purchases
of supplies, services, materials and equipment by the local agency shall be in
accordance with said duly adopted policies.
B. California Government Code Section 54204 requires that if the
local agency is other than a city,county,or city and county, policies provided for in
Section 54202 of said Code shall be adopted by means of a written rule or regulation,
copies of which shall be available for public distribution.
C. In order to establish efficient procedures for the purchase of
supplies, services, materials,and equipment,and the letting of public works contracts at
the best possible cost commensurate with quality and delivery needs, together with other
relevant factors,to exercise positive financial control over purchases,and to clearly
define authority for the purchasing function,and to establish bidding procedures,a
purchasing system for OCSD beyond what is required by said Sections of the
Government Code is desirable and in the best public interest
D. An effective, comprehensive organization needs an administrative
structure with support procedures that are logical, efficient,well documented,are
understood by the organization's employees and members of the public, and that will
enable timely and responsive administrative acquisition of supplies, services,materials,
and equipment. The organization should also appropriately delegate authority to those
persons and units having responsibility for these activities.
E. The Board of Directors has determined that a delegation of
authority structure provides for better training of employees which will result in improved
efficiency and effectiveness of OCSD's operations.
Road W OCSD Wl i of n
ARTICLE II
TERMS AND DEFINITIONS
Section 2.01: Terms and Definitions.
A. "Amendment or Change Order"shall mean written agreements
entered into and between the Professional Service Provider or Contractor and OCSD,
property executed, covering alterations, changes, additions, or deletions to the Contract
which are necessary for the proper completion of the work.
B. "Capital Facilities"shall mean those public works owned by
OCSD that are currently in existence.
C. "Capital Facilities Operational Projects"shall mean the routine,
recurring, and usual work for the preservation or protection of any public works, as well
as any minor repainting, landscape, maintenance, or work performed to keep, operate,
and maintain OCSD's water, power and wastewater disposal systems. This work shall
include modification or repair, or the replacement of parts, equipment, and facilities.
D. "Capital Improvements"shall mean those public works that are
to be newly-erected or constructed by OCSD in the future.
E. "Change Order"shall mean written agreements entered into and
between the Contractor and OCSD, for Public Works Contracts, property executed,
covering alterations, changes, additions, or deletions to the Contract, which are
necessary for the proper completion of the work.
F. "Competitive Bidding"shall mean the process and procedure
whereby OCSD, in accordance with California Public Contract Code Section 20783,
prepares Plans and Specifications for the construction of public works; publishes a
Notice Inviting Bids, and at a fixed time opens all bids received; and subsequently
awards a Construction Contract to the lowest responsive and responsible bidder.
G. "Design Agreement"shall mean a contract between OCSD and
a Professional Design Consultant who is licensed, certified, or registered by the State of
California to perform professional services. For OCSD purposes, these individuals shall
be known as "Professional Design Consultants".
H. "Facility Engineering Project"shall mean a miscellaneous
capital improvement or facility modification, replacement, or repair project, related to
plant safety, reliability and efficiency enhancements where professional consulting
services are estimated to be in an amount not to exceed $100,000 (inclusive of
amendments)for each project.
I. "Force Account"shall mean work that is performed solely by
OCSD employees which has a cost value, including labor, overhead, parts, and
supplies, in an amount not to exceed $5,000 for each Project, except as allowed in
Resolubon No.OOSD 07-04 2 or 37
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Subparagraphs(a)and (b)below. It does not mean work performed for OCSD by
persons or an entity under contract to OCSD,even when said work may be ordered by
OCSD as being outside or beyond the original contract scope of work. OCSD
employees may perform work on contracts,without limitation on amount only,for one of
the following reasons:
(a)It is an emergency and performing the work with OCSD forces
is more expedient;or,
(b)The Board of Directors has rejected all bids and by a four-fifths
vote declared that the work can be performed more economically
by day labor. A written cost effectiveness analysis must be placed
in the contract file.
This force account provision shall not apply to sewerage maintenance or repair work.
J. "Major Capital Projects"shall mean the construction, repair,
modification, or rehabilitation of OCSD's Capital Facilities, including treatment plants,
trunk sewers, pump stations, ocean ouffall,administrative and support facilities, and
other facilities related to OCSD operations,where the cost of Professional Design and
Consultant Services are estimated to be in an amount in excess of$100,000 for any
project. These projects may require Selection Committee or Board approvals.
K. "Professional Design Consultant"shall mean an individual or
firm providing engineering, architectural, environmental, land surveying, construction
management, and other similar services which are those professional services
associated with development and design for construction,alteration,or repair of public
works,as well as incidental services that members of these professions, and those in
their employ, may logically or justifiably perform, including studies, investigations,
surveys,evaluations, consultations, planning, inspections, shop drawing reviews,
sample recommendations, cost estimates, inspections, preparation of operation and
maintenance manuals,and other related services, all of which must be incidental to
OCSD awarding a contract for the construction of public works.
L. "Professional Design Service Agreement"shall mean a
Contract between OCSD and a Professional Design Consultant to provide services to
OCSD for professional engineering,architecture, environmental, land surveying, and
similar services as a non-employee of OCSD.
M. "Professional Service Consultant" shall mean an individual or
firm (other than a"Professional Design Consultant"), providing professional services to
OCSD,such as, but not limited to, accounting and financial services, information
technology,general research,evaluation of systems design related to wastewater
treatment systems, legislative evaluation and advocacy, human resources consultation
and advocacy,and miscellaneous scientific research and consultation.
N. "Professional Service Consultant Agreement"shall mean a
contract between OCSD and a Professional Consultant to provide services to OCSD as
a non-employee of the District.
Readulim M.005007-04 3001
O. `Public Works"shall mean all buildings,structures,facilities,
improvements, or works that are owned or operated by OCSD for the benefit of the
public and which were or are being constructed, altered, demolished, or repaired under
contract and paid for, in whole or in part, out of public funds.
P. "Public Works Contract"shall mean an Agreement between
OCSD and another party for the erection, construction, alteration, repair, or improvement
of any public works of any kind. Public Works projects estimated more than $35,000
must adhere to the provisions of the California Public Contract Code.
Q. "Standing Committees" shall mean the Steering Committee,
Operations Committee (Engineering, Operations& Maintenance and Technical
Services), and Administration Committee (Finance, Human Resources and Information
Technology). .
R. "Task Orders" shall mean miscellaneous technical support
authorized under a current contract. The specific task must have a defined budget and
be completed within the total budget of the existing prime contract.
Resolution No.OOSD 07-04 4 of 37
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ARTICLE III
DELEGATION OF AUTHORITY - GENERAL
Section 3.07: Purpose and Scope.
In an effort to remove barriers that prevent OCSD employees from performing
their jobs at the highest level of efficiency,a delegation of authority structure will
appropriately provide staff with information on its increased responsibility and ownership,
hence, it will contribute to the Improved efficiency and effectiveness of OCSD.
Section 3.02: Authorizing General Manager to Establish Rules and
Guidelines.
The levels of authorization to award purchase orders and contracts to acquire
services, including professional services, supplies, materials,and public works project
contracts, are as more particularly specified in Article VII herein.
The General Manager of OCSD is hereby authorized to establish rules and
guidelines to implement Board policies and to delegate to Staff,signature authority to
initiate the procurement process, as specified in Articles IV through VII herein.
Section 3.03: A. Procedure for Delegation of Authorltv.
These procedures establish the framework and boundaries within which a
delegate can operate, and also provide Management with a mechanism to evaluate
implementation and hold the delegate accountable for his/her actions.
Upon delegation of authority by the General Manager, each Department shall be
authorized to further delegate to respective employees within the Department. The
delegation shall be effective upon the Department Head setting forth, in writing,the
name of the delegated employee, the job position, and specific level of delegated
authority as Staff Level A, B,or C, respectively(as set forth in Section 7.01 A below),and
filing it with the Contracts/Purchasing Manager. The General Manager shall establish
further procedures to implement delegated authority Into the organization.
To commence the procurement process for acquisition of operational supplies,
services, materials, and equipment, public works contracts governed by state law and
professional and design service agreements, signature authority is hereby established
asset forth in Section 7.01A below. The functional authority level listed describes the
highest level of signature approval needed. Intermediate management approval
between the initiator/requestor and listed approval level must also be obtained.
The General Manager may delegate authority for all purposes under this
Resolution to a Department Head to act in the General Manager's absence.
Reeownon no.Oeso 07A1 5 of 37
B. Co-Sianatures. In addition to the signature of the
Delegated Authority:
1. To ensure that all policies and procedures governing
purchase orders and contracts are followed, all contracts and purchase orders will be
signed by the Contracts/ Purchasing Manager, or his designee upon approval of the
delegated authority specified in Section 7.01 A.
2. All purchases for computer hardware, software, copiers,
faxes, and communication equipment will be pre-approved by the Information
Technology Director, or his designee.
C. Procedural Requirements. All policies and procedures adopted
by the Board of Directors or promulgated by the General Manager governing the
procurement of supplies, materials, equipment or services, will apply, and shall be
complied with.
Budgeted funds must be available prior to the acquisition of goads or
services. Upon the Identification of goods or services needed that are not originally
budgeted, either a budget transfer request form must be completed demonstrating that
adequate funds are available to cover the acquisition, or the Board of Directors must
authorize a budget amendment, at which time, the item being acquired would fall into the
budgeted category.
D. Special Consideration for Extraordinary Protects/ Events.
The Board of Directors, at its discretion, may temporarily increase the General
Manager's purchasing approval and amendment/change order authority due to
circumstances it finds critical to the operation. In addition, the Board may also allow the
replenishment of the General Manager's amendment/change order authority, once
exhausted, back to its original level, if necessary.
Section 3.04: Purchasina System Adoption.
The procedures and authority set forth in this Resolution are intended to operate
in concert with and supplemental to the delegation of authority granted by the governing
Board of Directors in the adoption of this Resolution. Full compliance with the
provisions of all Articles in this Resolution is required.
Section 3.05: Purchasina Division Delegated Authority.
There is hereby vested in the Purchasing Division (hereinafter referred to as
"Purchasing"), under the general supervision and direction of the Director of Finance, the
authority for the purchase of supplies, services, materials, and equipment; letting of
public works contracts; and the establishment of rules, procedures, and administrative
policies relative thereto. The Director of Finance may delegate or assign any or all of
the following duties to the Contracts/ Purchasing Manager:
A. To purchase or contract for supplies, services, materials, and
equipment required by any Department or Division, in accordance with purchasing
procedures prescribed by this Resolution; such administrative regulations as Purchasing
RewluW No.OCSD 07-06 6 of 37
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shall adopt for the internal management and operation of Purchasing; and such other
rules and regulations as shall be adopted by the Board of Directors.
B. To negotiate and recommend execution of contracts for the
purchase of supplies, services, materials,and equipment;for construction of public
works projects; and for the disposition of surplus property and by-products of the sewage
treatment process.
C. To submit to General Counsel for review or approval, as
necessary, contracts, purchase orders, and other related documents. The Clerk of the
Board shall be the designated Custodian of all original executed copies of contracts,
purchase orders,and other related documents which are approved by the Board of
Directors. The Purchasing Department shall be the designated Custodian of all other
executed contracts.
D. To discourage uniform bidding and endeavor to obtain as full and
open competition as possible on all purchases and sales.
E. To prepare rules, regulations, procedures, and administrative
policies,and revisions thereto,governing the purchase of supplies, services, materials,
and equipment;for the letting of public works construction contracts in accordance with
the provisions of state law;and disposition of surplus property and by-products of the
sewage treatment process.
F. To prepare rules, regulations, procedures, and administrative
policies, and revisions thereto,governing the warehousing of inventories.
G. To keep informed of current developments in the field of
purchasing,including but not limited to prices, market conditions,and new products.
H. To prescribe and maintain such forms as are reasonably
necessary for the implementation of this Resolution and other rules and regulations of
OCSD.
I. To review and recommend specifications to establish minimum
standards for all purchases.
J. To supervise the inspection of all supplies, services, materials,
and equipment purchases to insure conformance with specifications.
K. To provide for the transfer of surplus or unused supplies and
equipment between Departments, as needed.
L. To have custodianship and control of all inventories and surplus
property.
M. To maintain a bidders' list, vendors'catalog file, and records
needed for the efficient operation of the Purchasing Division.
N. To review,approve, and maintain active insurance documents for
all OCSD procurements.
Re udon No.OCSD 07-0 7037
O. To revise all records to reflect the sale, transfer, or reorganization
of a supplier's business, or a change in the supplier's name for doing business, so long
as all other terms and conditions of the original agreement remain the same. In such
event of an assignment of the purchase order or contract by the supplier, OCSD shall
not be bound until it has given its consent in writing, which consent shall not be
unreasonably withheld. An amendment to the original agreement shall be prepared
authorizing and consenting to the assignment and shall be executed by the General
Manager, or his designee on OCSD's behalf.
P. To undertake such other and future duties as, in the Director of
Finance's discretion, are incidental and necessary to the conduct of the Division.
Q. To advertise for construction bids, set a bid date, and receive all
bids.
Section 3.06. Procurement Card Program.
OCSD has established a Procurement Card ("Procard") Program allowing
specifically authorized employees to purchase goods and services with a total dollar
value less than $1,000, thereby eliminating the purchase requisition, purchase order,
invoice, and check requirements for these purchases. Approval for use of a Procard
must first be obtained from OCSD's Procard Administrator, with the concurrence of the
Contracts/Purchasing Manager and appropriate Department Head. All employees
authorized by the Finance Department to use a Procurement Card shall do so only in
accordance with OCSD's Procurement Card Policies and Procedures.
Section 3.07: Requisitions.
All OCSD employees who need or require supplies, services, materials, or
equipment to carry out the defined duties of their positions, shall submit requisitions, in
advance, for purchases or warehouse requisitions to Purchasing, in accordance with the
adopted rules, regulations, procedures, and policies of the Purchasing Division. Usage
of OCSD's procurement cards shall be exempt from this requirement.
Section 3.08: Cooperative Procurement.
A. OCSD, through Purchasing, may participate in or sponsor,
conduct, and/or administer a Cooperative Procurement Agreement for the acquisition of
procured items or services with any other public agency purchasing unit, or public
agency alliance, in accordance with an agreement between OCSD and the other public
agency.
B. OCSD, through Purchasing, may sell to, acquire from, or use any
property(other than real property) belonging to another public agency, including the
cooperative use of supplies or services.
C. Purchasing may, at its discretion, procure from the County of
Orange Cooperative Purchasing Program, the State of California Multiple Award
Schedules Program and the Department of General Services Program, the California
Association of Public Purchasing Officers Program, the Western States Contracting
Resolution No.OCSD 07-04 8 of 37
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Alliance,the County of Los Angeles'Cooperative or Piggyback Programs, and U.S.
Communities Alliance,without obtaining bids and following procedures set forth below, if
the Contracts/Purchasing Manager determines that goods or services procured through
said Programs are cost-favorable to OCSD.
Section 3.09: Purchases: Emergencv.
Whenever an emergency arises which is, or may be,a threat to the continued
required operations of the wastewater treatment plants and facilities owned by OCSD, or
when purchases are immediately necessary for the preservation of life or property,or to
avoid a threat to the public health or safety,the Division may purchase supplies,
services, materials, or equipment required for immediate use, in an amount greater than
One Hundred Thousand($100,000) Dollars without observing the procedures set forth in
this Resolution. The General Manager or his designee, shall advise the OCSD Chair
and/or Vice Chair,as appropriate, of the action taken, and such action shall be ratified
by the Board of Directors at its next regular meeting.
Section 3.10: Purchases: Standardized Prices,Soecialized Services.
and Sole Sources.
A. The Purchasing Division may make purchases of supplies,
materials, equipment or services without observing the bidding and Board approval
procedures of Section 4.13 below when:
1. Items to be purchased have a demonstrated uniformity in
price; or
2. An emergency arises which is,or may cause,a threat to
the continued required operations of Reclamation Plant 1 or Treatment Plant 2; or
3. Purchases are immediately necessary for the preservation
of life or property,or to avoid a threat to the public health or safety; or
4. The Provider of goods or services is determined to be
uniquely qualified to provide specialized goods or perform specialized services.
5. It is determined that there is a sole source Provider that
has goods and services available immediately that might not otherwise be available at
such time purchasing procedures could be completed, and Staff determines such items
are critical to OCSD's operations;
a. For sole sources greater than$100,000, the General
Manager, or his designee, shall advise the OCSD Chair and/or Vice Chair, as
appropriate, of the action to be taken, and such action shall be rated by the Board of
Directors at its next regular meeting.
b. Sole sources between$50,000 and $100,000 shall be
approved by the General Manager and reported to the Board of Directors quarterly.
Resolution No.OCSD 07-04 9 or 37
c. All sole sources shall require pre-approval from the
requesting Department Head, the Contracts/Purchasing Manager and the Director of
Finance.
Section 3.11: Purchase Orders.
Purchases of all supplies, services, materials, or equipment shall be made by
purchase order through use of a requisition, and may also require a formal written
contract when determined necessary or appropriate by the Contracts/ Purchasing
Manager. To ensure that all policies and procedures governing purchase orders and
contracts are followed, all contracts or purchase orders will be executed by the Contracts
/ Purchasing Manager, or as delegated by the Contracts/ Purchasing Manager.
Employees requisitioning supplies and equipment shall be responsible that requisitions
are in conformity with the spirit and intent of this Resolution and that no purchase has
been broken into smaller units to evade any requirement of this Resolution.
In accordance with OCSD's Records Retention Policy, Purchasing shall retain in
its files one (1)copy of all purchase orders issued during the two (2)years preceding, on
which copy of the purchase order there shall be a list of bidders and prices bid for the
materials or equipment purchased, or if no bids or quotations were taken or received, a
full statement as to the reason therefor.
Section 3.12: Purchases: Encumbrances of Funds.
Except in cases of emergency, no purchase order shall be Issued for any
supplies, services, materials, or equipment, unless there exists a sufficient budget item
against which said purchase is to be charged, and which is not pledged towards any
other specific purchase.
Section 3.13: Blanket Purchase Orders.
The Purchasing Division may issue annual blanket purchase orders for recurring
purchases of miscellaneous supplies that:
A. Are not carried in stock in OCSD's warehouse because of
economic considerations;
B. Are stock items that have been designated as appropriate sole
source acquisitions;
C. Have been competitively bid because Purchasing determines it is
in the best interests of OCSD to issue a blanket order for inventory items; or
D. Are for miscellaneous supplies, services, materials and equipment
where such purchase may be procured from a single vendor during the budget year,
without observing the procedures prescribed in Section 4.03 below when, in the
Purchasing Division's discretion, it is determined that such blanket purchase orders are
at a cost favorable to OCSD and will result in a more efficient procurement of such
items.
Blanket purchase orders shall be in conformity with the spirit and intent of this
Resolution. The Purchasing Division shall, at the beginning of each budget year, file a
Resolutb No.OCSD 07-03 10 o137
Retum to Agenda RepoN
list of such purchase orders and the estimated annual amount with the Director of
Finance.
Section 3.14: Surplus Supplies. Materials, and EouipmeM.
All Departments and/or Divisions shall submit to Purchasing,at such times and
in such form as Purchasing shall prescribe, reports showing all supplies, materials, and/
or equipment which are no longer used or which have become obsolete or wom out.
Purchasing shall have the authority, as deemed appropriate by the Contracts/
Purchasing Manager,to sell, exchange for, or trade in on new supplies, materials, and
equipment, or dispose, as deemed appropriate,of all supplies, materials,and equipment
which cannot be used by any other Department or Division, or which have become
unsuitable for OCSD use.
Section 3.15: Sale of Real Prooerty.
No negotiations concerning the sale of real property of OCSD may be made
without prior review from the Contracts/Purchasing Manager and the General Counsel.
No real property of OCSD may be sold without prior approval of the Board of Directors
Section 3.16: Recordkeepina.
A record of all sales of surplus property and by-products shall also be maintained
by Purchasing upon or in which is maintained,the record of the bids received for the
property or by-products sold, or if bids were not taken or received, a full explanation
thereof. Such records shall be maintained in accordance with OCSD's records retention
schedule.
Resolution t .00SD 07-0 11 of 3]
ARTICLE IV
OPERATIONAL SUPPLIES, MATERIALS, EQUIPMENT &
SERVICES, INCLUDING PROFESSIONAL
SERVICE CONSULTANTS
(EXCLUDING PUBLIC WORKS CONTRACTS OR
PROFESSIONAL DESIGN SERVICE AGREEMENTS)
Section 4.01: Purpose and Scope.
In order to establish efficient procedures for the purchase of supplies, materials,
equipment and services, including Professional Service Consultants, at the best possible
cost, commensurate with quality and delivery needs and other relevant factors; to
exercise positive financial control over purchases; to clearly define authority for the
purchasing function; and to establish bidding procedures pursuant to Section 54202 of
the Government Code of the State of California, a purchasing system is deemed
necessary. This Article does not apply to Professional Design Service Agreements and
Public Works Contracts, which are defined and governed by Articles V and VI below.
Section 4.02: Purchases: Bidding Requirements.
Except as hereinafter provided, purchasing of supplies, materials, equipment or
services, including Professional Service Consultants, shall be by bid procedures as set
forth in this Article IV, when the purchase is estimated to have a value greater than Five
Thousand ($5,000) Dollars; the supplies or services may be obtained from more than
one vendor; are not standardized as to price; and no emergency exists.
Section 4.03: Bidding Procedure: Purchases Greater Than $50.000.
A. Award to Lowest Bidder. Except as otherwise provided in this
Article IV, purchases of supplies, materials, equipment or services, including
Professional Service Consultants, of an estimated value greater than $50,000 shall be
by written contract or purchase order with the lowest responsive and responsible bidder
(unless a Request for Proposal solicitation instrument is utilized), pursuant to the
procedures prescribed herein.
B. Award Approval. Purchases of supplies, materials, equipment or
services, including Professional Service Consultants, that are identified and have
appropriate not to exceed contractual pre-approvals, as outlined in each Fiscal Year's
annual budget, to Include capital equipment, shall be bid and awarded directly by the
Contracts/Purchasing Manager, or as delegated by the Contracts / Purchasing
Manager in accordance with the procedures in this Section 4.03.
Supplies, materials, equipment or services, including Professional Service
Consultants, not budgeted, or which exceed the Board or pre-approved amount, or
subsequent increases to the contract above the original amount identified and approved
in the budget year the contract was awarded (both pre-approved or Board approved), or
Resolution No.OCSD 07.04 12 of 37
Return to Mends Rem
which affect policy recommendations or ratifications, or are sole source contracts
exceeding$100,000, and all applicable public works contracts, shall require Board of
Directors'approval prior to issuance or award of a purchase order or contract, except as
provided in Section 7.01(B).
C. Notice Inviting Bids. A Notice Inviting Bids shall be published
and include a general description of the articles or services to be purchased or sold,
shall state where bid forms and specifications may be secured, and the time and place
for opening bids.
1. Published Notice. The Notice Inviting Bids shall set a dale
for the opening of bids. The publication or posting of the Notice shall be at least ten
(10)days before the date of opening the bids. Notice may be published in a newspaper
of general circulation, printed and published within OCSD's jurisdiction; or by electronic
bulletin board procedures designed to reach the industry or market of supply; or through
OCSD's Internet Web Site.
2. Bidder's List. Purchasing may also solicit sealed bids, or
receive bids electronically,from all qualified, responsible prospective suppliers whose
names are on the Bidders List maintained by OCSD,or who have requested their names
to be added thereto.
3. Bulletin Boards. Purchasing may also advertise pending
purchases or sales by a notice posted on a public bulletin board in the Purchasing
Division Office, and by electronic bulletin board, as deemed appropriate by the
Contract's Purchasing Manager.
D. Bidder's Security. When deemed necessary by Purchasing, a
bidder's security may be prescribed in the contract specifications or in the Notice Inviting
Bids. Purchasing, or those assigned by Purchasing, shall maintain said bidders
security. Bidders shall be entitled to the return of a bid security upon the full execution of
an awarded contract or Issuance of a purchase order by the successful bidder. A
successful bidder shall forfeit its bid sewrity upon refusal or failure to execute the
contract within the prescribed time after the Notice of Award of Contract has been
delivered to the bidder, unless OCSD is responsible for a delay in the prescribed time.
The Contracts/Purchasing Manager may, on refusal or failure of the successful bidder
to execute the contract, award it to the next lowest responsive, responsible bidder. If
the Contracts/Purchasing Manager awards the contract to the next lowest bidder, an
amount of the lowest bidder's security equal to the difference between the low bid and
the awarded bid shall be forfeited to OCSD, and the surplus, if any, shall be returned to
the lowest bidder.
E. Bid Opening Procedure. Sealed or electronically received bids
shall be submitted to the Contracts/Purchasing Manager and/or Secretary of the
Board of Directors, and shall be identified as a bid on the envelope or the electronic
bulletin board. Bids shall be opened in pubic by the Contracts/Purchasing Manager,or
his designated representative, at the time and place stated in the public notices. A
tabulation of all bids received shall be available for public Inspection during regular
business hours for a period of not less than thirty(30)calendar days after the bid
opening. In cases wherein the Request for Proposal ('RFP") instrument is utilized, all
ResoWboo No.OCSD 07-04 13 of 37
RFP's will be opened, and only the name of the Proposer shall be read aloud at the time
and place set forth therein.
F. Refection of Bids. At his discretion, the Contracts/ Purchasing
Manager may reject any and all bids presented and re-advertise for bids. If all bids are
rejected, the Contracts/Purchasing Manager may declare that the materials or supplies
may be acquired at a lower cost by negotiation in the open market and authorize the
purchase in that manner.
G. Tie Bids. If two or more bids received are for the same total
amount or unit price (with quality and service being equal), and if the public interest will
not be best served by a delay of re-advertising for bids, the Board of Directors or
Contracts/Purchasing Manager may accept the one it chooses or accept the lowest bid
made by negotiation with the tie bidders at the time of the award.
H. Performance Bonds. Purchasing shall have the authority to
require a Faithful Performance Bond, a Labor and Materials Bond, and/or a Warranty
Bond, before entering into a contract in an amount as it shall find reasonably necessary
to protect the best interests of OCSD. If the Purchasing Division requires any of these
Bonds, the form and amount of the Bond shall be described in the Notice Inviting Bids
and in the Contract Specifications.
Section 4.04: Purchases between $50,000 and$100,000. Purchasing
may award a contract to purchase supplies, materials, equipment or services, including
Professional Service Consultants, in an amount greater than $50,000 and less than
$100,000, without obtaining bids and following the procedures all as more particularly
set forth in Section 4.03 above when the Contracts/ Purchasing Manager determines
that:
A. By purchasing immediately, it can avoid an imminent price
increase or realize a substantial price discount that is available on a short-term basis
only; or
B. It can obtain supplies, materials, equipment or services, including
Professional Service Consultants, immediately that might not otherwise be available at
such time as purchasing procedures could be completed; or
C. Said contract for supplies, materials, equipment or services,
including Professional Service Consultants, includes Board of Directors' approval for
multiple one (1)year renewal periods at the Districts option. All such contracts shall not
exceed the prescribed limit of renewal periods as defined by the Board of Directors and
shall require the Contracts/Purchasing Manager's approval; or
D. The supplies, materials, equipment or services, including
Professional Service Consultants, are only available from a sole source; or
E. Whenever an emergency arises which is, or may cause, a threat
to the continued required operations of Reclamation Plant 1 or Treatment Plant 2, or
when purchases are immediately necessary for the preservation of life or property, or to
avoid a threat to the public health or safety.
ResolWon No,OCSD 07-04 14 of 37
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Section 4.05: Bidding Procedure: Purchases Less Than $50,000.
Purchases of supplies,materials, equipment or services, including Professional
Service Consultants,of an estimated value in the amount of$50,000 or less on which
bidding is not required by state law, may be made by Purchasing in the open market
without observing the same procedures as prescribed by Section 4.03 above. The
procedures to be used for these purchases are as follows:
A. Minimum Number of Bids. Open market purchase shall,
whenever possible, be based on at least three (3)bids and shall be awarded to the
lowest responsive and responsible bidder, and shall be by written contract or purchase
order.
B. Solicitation of Bids. Bids shall be solicited by written requests to
prospective vendors or purchasers and/or by telephone,facsimile transmission,
electronic bulletin board,and/or by public notice posted on a public bulletin board in the
Purchasing Division Offices.
C. Receipt of Bids. Bids shall be submitted to Purchasing,which
shall keep a public record of all open market orders and bids in accordance with OCSD's
records retention schedule.
D. Exceptions. Purchasing may purchase supplies,materials,
equipment or services, including Professional Service Consultants,without observing the
procedures prescribed in Subparagraphs A, B,and C above, if supplies, materials,
equipment or services, including Professional Consultant Services are only available
from a sole source. All such purchases shall be approved by the Director of Finance,
the requesting Department Head, and the Contracts/Purchasing Manager.
Section 4.06: Bidding Procedure: Purchases Less Than $5,000.
Purchasing may purchase supplies, materials, equipment or services, including
Professional Service Consultants of a value in the amount of$5,000 or less per
purchase order,without observing the procedures prescribed in Section 4.05 when, in
the Contracts/Purchasing Manager's discretion, it is determined that observing such
procedures would not result in a lower overall cost to OCSD. Record of such decision
shall be fully stated in the purchase order file as to the reason therefor.
Section 4.07: Inspection and Testing.
The supplies, materials,equipment or services delivered, including performance
or deliverables resulting from a Professional Service Contract, shall be inspected to
determine their conformance with the specifications set forth in the purchase order or
contract. Purchasing shall have the authority to request professional services,or to
require chemical and physical tests of samples submitted with bids and samples of
deliveries which are necessary to determine their quality and conformance with
specifications.
Resdubm No.OCSD 07-04 15037
Section 4.08: Purchases: Neaotiated Contracts.
Notwithstanding other provisions of this Resolution, the Board of Directors may,
when It appears in the best interests of OCSD, authorize the Staff to negotiate and
award a contract for the purchase of supplies, materials, equipment or services,
including Professional Service Consultants, without observing the procedures prescribed
In Sections 4.03,4.04 and 4.05 above.
A. When such authorization has been granted for the purchase of
supplies, materials, equipment or services, including Professional Service Consultants,
of an estimated value in the amount of$100,000 or greater, the Staff shall obtain the
concurrence of OCSD Chair and/or Vice Chair, as appropriate, prior to awarding such
purchase.
B. Whenever any contract for supplies, materials, equipment or
services, including Professional Service Consultants, has been entered into between
OCSD and a person or entity, and Purchasing determines that it is in the best interest of
OCSD to continue said contract with such person or entity, Purchasing may, in its
discretion, negotiate an extension of such contract without observing the bidding
procedures prescribed in Sections 4.03 and 4.05 above; provided, the original contract
contains provisions for subsequent extension periods; has been approved and awarded
by the Board of Directors; and /or has prior contractual pre-approval, as provided in
Section 4.03.
Section 4.09: Reauest for Proposal Procedure.
As deemed appropriate by the Contracts/ Purchasing Manager, a Request for
Proposal ("RFP") solicitation process may be employed in lieu of the competitive bidding
process. The RFP process maybe used for goods or services that prove difficult to
quantify or describe. Therefore, Proposers are offered the opportunity to offer solutions.
Award shall be based upon criteria which provide the"best value" received by OCSD,
which is not solely determined by price.
A. All Purchases—All Levels. Except as otherwise stated below, the
RFP process shall follow bidding thresholds and procedures as outlined in Sections 4.03
and 4.05 above.
B. Purchasing shall solely prescribe the Request for Proposal (RFP)
procedure and award criteria. OCSD's RFP procedure shall be on file and available
with the Contracts/Purchasing Manager or designee.
C. The Contract/Purchasing Manager shall solely prescribe and
approve all RFP Evaluations team members.
D. In order to avoid actual or perceived conflicts of interest, members
of the Board of Directors are prohibited from participating in the RFP Evaluation process,
except in those instances where the potential provider shall directly serve and report to
the Board or Its respective Committee(s)or when approved to do so by the Board Chair.
Resolution No.OCSO 07-04 16 of 37
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E. OCSD maintains a Conflict of Interest Code pursuant to California
Government Code Sections 87100 at seq.,which govems the activities and performance
of duties of its Directors,officers,employees,or agents in the conduct of project work for
OCSD.
F. No Director, officer, employee,or agent of a Professional Service
Consultant under contract with OCSD, shall solicit or accept rebates,kickbacks,favors,
or other unlawful consideration from any individual or firm on behalf of any firm that may
be potentially selected as a qualified firm to provide professional consulting services to
OCSD. Acceptance of food and refreshments of a nominal value on infrequent
occasions, and acceptance of gratuities or gifts shall not be deemed a violation of this
provision, provided that if said items exceed$340,or the amount as fixed by California
Government Code Section 89503, or Califomia Code of Regulations Title 2, Section
18940.1,in a calendar year,the Director,officer,employee, or agent may be disqualified
from participating in the decision pursuant to Article III of OCSD's Conflict of Interest
Code; and provided,further,that any Director, officer,employee,or agent,as a
designated employee under OCSD's Conflict of Interest Code, shall report any amount
of gifts on his/her annual Statement of Economic Interests, as required by said Code.
G. Any firm seeking selection under these procedures that violates
OCSD's Conflict of Interest Code shall be automatically disqualified-
H. Any firm solicited to violate the Code must report said solicitation
to the Board of Directors,or it will be automatically disqualified.
Read~W.OCSD W7 17 of 37
ARTICLE V
PROFESSIONAL DESIGN SERVICE AGREEMENTS
Section 5.01: Purpose and Scope.
OCSD, in the interest of uniformity, fairness, and cost effectiveness desires to
establish policies and procedures for the selection and procurement of professional
engineering, architectural, environmental, land surveying, and construction management
services.
Section 5.02: Retention of Professional Deslan Consultants.
This Resolution establishes a procedure to be followed in the selection and
retention of Professional Design Consultants in the areas of engineering, architecture,
environmental, land surveying, and construction management services.
Professional Design Consultants are those individuals or firms providing
engineering, architectural, environmental, or land surveying services which are those
professional services associated with research, development, design and construction,
alteration, or repair of real property, as well as incidental services that members of these
professions and those in their employ may logically or justifiably perform, Including
studies, investigations, surveys, evaluations, consultations, planning, programming,
conceptual designs, plans and specifications, cost estimates, inspections, shop drawing
reviews, sample recommendations, preparation of operation and maintenance manuals,
and other related services, all of which must be incidental to OCSD awarding a contract
for Construction or Public Works. Services for product testing are excluded.
It is recognized that no two individuals or firms have equal skills, training,or
experience, and that the qualities of such firms vary. Accordingly, Professional Design
Consultants shall be selected based upon OCSD's discretion and opinion as to which
particular Consultant is best qualified to perform the work (hereinafter referred to as the
"project") in question.
For purposes of this Resolution, "firm" shall mean any individual, firm,
partnership, corporation, association, or other legal entity permitted by law to practice
the profession of architecture, engineering, environmental services, land surveying, or
construction project management. Evaluation and selection of a consultant firm will
include, but not be limited to, the following:
A. The firm shall be of high ethical and professional standing, Its
members being of good moral character, and it shall be prepared to submit references
from persons of known repute.
B. The principal and other responsible members of the firm must be
registered in the State of California, as required by law.
Resolution No.OCSD 07.04 18 of 37
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C. A principal member of the finn's staff must have the minimum
appropriate experience in responsible charge of work of the type involved in the project.
The appropriate experience required will solely be determined by OCSD staff.
D. At least two(2)additional members of the firm's staff must have
appropriate experience in responsible charge in the field or fields required by the project.
The appropriate experience required will solely be determined by OCSD staff.
E. The firm shall be capable of performing the work within the
prescribed time limitations considering the current and planned workloads of the firth.
F. If all other factors are equal, preference shall be given to a locally
based firth when more than one fine is being considered.
G. If the project is funded,either in whole or in part, by state or
federal funds that require, as a condition of establishing or maintaining eligibility for state
or federal funds, that firms working on the project maintain an affirmative action
employment program,then the firm selected for the project must certify to having such a
program.
OCSD also recognizes that the scope of services and the qualifications of
consultants can differ significantly between major capital facilities projects and facilities
engineering projects. The criteria set forth in Paragraphs C and D above may be
waived by OCSD for Facilities Engineering Projects.
The procedures set forth in this Resolution shall govern the retention of
Professional Design Consultants.
Section 5.03: Facilities Engineering Project: Annual Budget
Approval.
Upon approval by the Board of Directors of an annual budget, OCSD's Director
of Engineering or OCSD's Contracts/Purchasing Manager, or their designees, shall be
authorized to solicit contract proposals from professional engineering, architectural,
environmental, land surveying, and construction management firms to perform the
required services for the approved Facilities Engineering Projects, as defined and
prescribed herein.
Section 5.04: Facilities Engineering Protect: Selection of
Consultants—Procedure.
A. OCSD's Staff shall compile a master pre-approved list of not less
than 5, nor more than 10 firms having the required expertise to perform the required
professional service for a Facilities Engineering Project. The master list of firms will be
selected based upon a solicitation, review of qualifications,and Board approval of the
agreements including up to two annual optional renewals. Upon selection and approval,
the Professional Design Consultant shall execute the District's Professional Design
Service Agreement. The original term of the agreement shall be for one (1)year.
Thereafter,the Director of Engineering(DOE)shall be authorized to recommend to the
General Manager, an extension of the qualified Professional Design Service Agreement
for up to two(2)additional one (1)year renewal periods, for a total of three(3)years,
Resoludm No.OCSD 07-0 19 o13r
with each of the Parties designated on the approved master list. The Professional
Design Service Agreement for each Party on the master list shall be forwarded to the
Purchasing Office. The Engineering Department Staff shall prepare the appropriate
requisition documentation to insure future payment to the consultant.
B. As a need for an individual specific Facilities Engineering Project
arises, OCSD will implement the Agreement by issuing a Task Order identifying the
specific project by name and number, and include the approved scope of work required
of the consultant for the project. There is a maximum annual fiscal year contract
limitation of$200,000 for each Professional Design Service Agreement under the
provisions of this Section 5.05.
C. The DOE shall first obtain at least two(2) price proposals from
consultants before the Task Order is awarded to a consultant. This requirement may be
waived at the discretion of the DOE,where a determination is made that the subject
work is unique such that only one (1) consultant is available to perform the work, or
where significant time constraints or emergency conditions dictate that one (1)
consultant be solicited for a price proposal. The DOE, or his designee, shall review the
proposals specifically addressing cost and ability to meet OCSO schedule requirements.
Based on the evaluations, the DOE is authorized to award the original Task Order.
D. Once the Professional Design Consultant is selected for the award
of a Facilities Engineering Project and the Task Order is executed by OCSD, the DOE
shall issue the Notice to Proceed.
Section 5.05: Facilities Enaineerina Protect: Approval of Plans and
Specifications.
The Board of Directors delegates to the Director of Engineering (DOE), as a
Professional Registered Engineer, the authority to approve the design, plans, and
specifications for the construction of a new or modified OCSD facility that is deemed a
Facilities Engineering Project, as defined in Section 5.03 above.
Section 5.06: Malor Capital Protect: Scope of Work.
A. For every project approved by the General Manager,the E &0
Committee, or the Board of Directors, and for which outside professional consulting
services are required, OCSD Staff shall develop a comprehensive scope of work.
B. The scope of work shall define the extent of the services and the
time required.
Section 5.07: Malor Capital Project: Selection of Professional Desian
Consultants — Procedure.
For the employment of any Professional Design Consultant or Professional
Service Consultant for major capital projects budgeted and approved by the Board of
Directors, the following procedures shall apply:
A. Proposals—Notice Repuesting. Staff shall prepare a Request for
Proposal ("RFP") or a Request for Qualifications ("RFQ"), for the scope of work which
Rnolvuon No.OCSD 07-04 20 of 37
Return to Mende Report
shall include a request for the firm's qualifications, personnel capability, demonstration of
firm's capabilities, identification of personnel assigned to the project, estimate of number
of hours for each aspect of the project,fee proposals,and conflict of interest disclaimer.
The Request for Qualifications' process may be used, at Staffs discretion, to narrow the
field of firms submitting proposals on the project.
OCSD shall maintain a comprehensive list of professional consultants'
demonstrated competence. Optionally, notice may be given by publication in
professional journals or publications of general circulation.
B. Staff Screening Committee. A Screening Committee of at least
two(2)Staff Members,as chosen by the Department Director, shall review all submitted
proposals and prepare a recommendation for selection of the best qualified consultant to
the E 8 O Committee as described in Paragraph D below.
In order to avoid actual or perceived conflicts of interest, members
of the Board of Directors are prohibited from participating in the RFQ Evaluation process
except in those instances where the potential provider shall directly serve and report to
the Board or its respective Committee(s)or when approved to do so by the Board Chair.
C. Proposals—Contents. Proposals submitted shall:
1. Acknowledge the scope of the project and extent of the
services required.
2. Include a description of the firm's qualifications for
performing the proposed work.
3. In the case of a proposal for construction management
services,each firm shall provide evidence that its personnel that will carry out on-site
responsibilities have expertise and experience in construction project design review and
evaluation, construction mobilization and supervision, bid evaluation, project scheduling,
cost-benefit analysis, claims review and negotiation, and general management and
administration of a construction project.
4. Include past performance records of the firm.
5. Demonstrate the firm's capabilities to complete the work
within the time allotted.
6. Identify the specific key personnel to be assigned to the
project.
7. Provide an estimate of the number of hours involved in
each aspect of the scope of work for such personnel.
8. Be accompanied by a sealed fee proposal estimate which
shall not be opened until the firm is selected as being qualified. Thereafter, it shall be
the basis for procurement negotiations. The form of the fee proposal shall be as
described in Subsections E2 and E3 below.
Reedutim Ro.OCSD 07-0 21 or T
9. Contain a conflict of interest disclaimer.
10. Provide any other information required to properly evaluate
the firm's qualifications and familiarity with the types of problems applicable to the
project.
D. Review of Proposals by Staff Screening Committee
1. The Staff Screening Committee shall review, and evaluate
proposals, negotiate fees, and determine and make recommendations to the E & 0
Committee as to which firm is deemed to be fully qualified to provide services sought by
OCSD based on the firm's demonstrated competence and qualifications.
2. The Staff Screening Committee, upon making a
determination of the fully qualified firms, shall rank the firms considered, based upon the
qualifications and in order of preference.
E. Procurement and Negotiation of Agreement. To determine the
firm to be selected and the compensation for the services sought, the following
procedures will be strictly adhered to:
1. The Staff Screening Committee will, at its discretion, invite
the firm that is considered to be the best qualified to appear before the Staff Screening
Committee.
2. The proposal for fees associated with the services, as
submitted by the selected fine, shall be presented in sufficient detail to enable the Staff
Screening Committee to adequately ascertain the level of effort associated with the
scope of work and to determine whether the firm has thoroughly Identified the efforts
associated with the services and thoroughly understands the work required.
3. The basis of the fee shall be cost plus a fixed fee with a
maximum amount; per diem rate(s)with a maximum amount; or a lump sum (fixed)fee.
4. If it is the decision of the Staff Screening Committee to use
methods for compensation other than the lump sum or cost plus a fixed fee with a
maximum, or the per diem rates with a maximum,justifications for this decision shall be
made by the Staff Screening Committee in Its recommendation to the E &O Committee
and the Board of Directors.
5. The Staff Screening Committee shall review the
compensation requested by the firm which shall be compared with the maximum fee as
previously established.
6. The final negotiated fee, as recommended to the E &0
Committee and Board of Directors, shall be certified by the Staff Screening Committee
as reasonable for the services requested and not resulting in excessive profits for the
firm.
7. If agreement is not reached, the negotiations should be
terminated and similar interviews should then follow with the next ranked firm.
Resolution No.OCSD 07-04 22 of 37
Rehm to Agenda Repod
8. All such negotiations shall be on a strictly confidential
basis,and in no case shall the compensation discussed with one firm be discussed with
another.
F. Continuation of Services.
1. In some instances when a qualified firm has satisfactorily
completed one phase in the development of a project, Staff shall, based on an outline
and recommendation of the scope of additional work,obtain Board approval to negotiate
with the same firm for additional services related to other phases of the project.
2. Continuation of services may arise when a firm has
completed a feasibility report or a preliminary engineering report, and the services for
said work are satisfactory to the Board and the procedure of examining other firms for
subsequent phases is not deemed necessary or cost effective.
3. In the event that satisfactory negotiations for price cannot
be concluded under these circumstances, negotiations should be terminated and the
provisions set forth hereinabove for selection of a firm would apply.
G. Specialized Services.
1. In the event that specialized professional services are
required,where it is determined that only one (1)qualified firm can best perform the
services for a speck project for professional fees estimated to be in an amount greater
than$50,000, the Staff Screening Committee will negotiate a Professional Design
Service Agreement or Professional Consultant Service Agreement, make
recommendations to the E&O or other Standing Committee, and upon action by such
Committee, present it to the Board of Directors for approval.
2. The basis of selection of the specialized firm or individual
under Subparagraph G(1)above, along with the negotiated fee, shall be presented to
the Board of Directors for consideration.
H. Agreement for Services.
1. Upon approval by the Board of Directors of a negotiated
agreement for professional services, a contract shall be executed in a form approved by
the General Counsel.
2. The contract shall include, but not be limited, to the
following terms:
(i) A statement on the scope of the project.
(ii) The basis and individual elements of the fees.
(ill) The basis for payment to the firm.
(iv) The time limits in which the services must be
performed.
Resolubon No.OCSD 07-04 23 of 37
(v) Provisions for fee adjustments, should there be
changes in the scope of work.
(vi) If it is determined by the Standing Committee that
OCSD may be caused to incur a penalty or liability,
or suffer a loss because of the failure of the firm to
perform the work within specified time limits, the
contract shall include a clause setting forth
penalties for such nonperformance or delayed
performance, in amounts to be determined by the
Standing Committee.
(vii) For projects exceeding $50,000 in fees or in other
cases, as determined by OCSD, errors and
omissions insurance in an amount recommended
by the General Counsel or OCSD's Risk Manager
(based upon engineering data from the Department
Director) shall be required, unless the Standing
Committee or Board of Directors, as the case may
be, waives said insurance.
(viii) For projects that involve engineering studies where
a consultant is asked to provide a report not related
or leading directly to a design project, the General
Manager (based upon engineering data from the
Department Director), in his discretion, may waive
the requirement for the consultant to provide errors
and omissions/professional liability insurance.
I. Conflict of Interest.
1. OCSD maintains a Conflict of Interest Code pursuant to
California Government Code Sections 87100 at seq.,which governs the activities and
performance of duties of its Directors, officers, employees, or agents in the conduct of
project work for OCSD.
2. No Director, officer, employee, or agent of a Professional
Design Consultant under contract with OCSD shall solicit or accept rebates, kickbacks,
favors, or other unlawful consideration from any individual or firm on behalf of any firm
that may be potentially selected as a qualified firm to provide professional consulting
services to OCSD. Acceptance of food and refreshments of a nominal value on
infrequent occasions, and acceptance of gratuities or gifts shall not be deemed a
violation of this provision, provided that if said items exceed $340, or the amount as fixed
by California Government Code Section 89503, or California Code of Regulations Title 2,
Section 18940.1, in a calendar year, the Director, officer, employee, or agent may be
disqualified from participating in the decision pursuant to Article III of OCSD's Conflict of
Interest Code; and provided further, that any Director, officer, employee, or agent, as a
designated employee under OCSD's Conflict of Interest Code, shall report any amount
of gifts on his/her annual Statement of Economic Interests, as required by said Code.
Resolution No.OCSD 07-04 24 of 37
Return b Aoenda Rem
3. Any firm seeking selection under these procedures that
violates OCSD's Conflict of Interest Code shall be automatically disqualified.
4. Any firth solicited to violate the code must report said
solicitation to the Board of Directors or it will be automatically disqualified.
Section 5.08: Major Capital Project: Engineer's Estimate: Approval
of Plans and Specifications.
A. For any project, if the engineer's estimate for the construction contract,
as provided by the Director of Engineering or OCSD's consulting design engineer, is
equal to or less than the approved construction budget for the project, Purchasing may
proceed with advertising forbids. If the engineer's estimate for the construction contract
is greater than the approved construction budget for the project, the Director of
Engineering shall submit the project to the E&O Committee for recommendation,and to
the Board of Directors for approval, before Purchasing may proceed with advertising for
bids.
B. The design plans and specifications for the construction of new or
modified Major Capital Projects shall be submitted to the Board of Directors for approval
along with the lowest responsible bid.
ReWullon W.OCSD 07-MO 25037
ARTICLE VI
PUBLIC WORKS CONSTRUCTION CONTRACTS
Section 6.01 : Puroose and Scope.
Public works contracts are herein defined as contracts with duly licensed
contractors in the State of California for the furnishing of labor, materials, equipment,
and permits, as deemed necessary for the erection, construction, alteration, repair,or
improvement of wastewater collection, treatment and disposal facilities, and any other
public building, structure, or improvement necessary to the operation of OCSD, in an
amount greater than $35,000, as per California Public Contract Code Sections 20783 et
seq.
Section 6.02: Public Works: Bidding Required.
When the expenditure required for a public works construction project exceeds
$35,000, it shall be contracted for and let to the lowest responsive and responsible
bidder, in accordance with the provisions of California Public Contract Code Section
20783.
Section 6.03: Bidding Procedure: Public Works Construction
Greater Than $35,000.
Procedures for soliciting bids and awarding contracts for public works projects for
more than $35,000 shall be in accordance with applicable provisions of California Public
Contract Code Section 20783.
A. Notice Inviting Bids. The Notice Inviting Bids shall specifically
describe the work to be performed, shall state where Bid Forms, Specifications, General
and Special Provisions may be secured, and the time and place for receiving and
opening sealed bids.
1. Published Notice. Pursuant to California Public Contract
Code Section 20783, the Notice Inviting Bids shall set a date for the opening of bids.
The first publication or posting of the Notice shall be at least ten (10) calendar days
before the date for the opening of bids. The Notice shall be published at least two (2)
times, not less than five (5)days apart, in a newspaper of general circulation, printed
and published within the jurisdictional boundaries of the District.
2. Bidders' List. The District may also solicit sealed bids
from all qualified, responsible, prospective suppliers whose names are on a Bidders' List
that may be maintained by OCSD.
B. Bidder's Security. When deemed necessary by the Purchasing
Division, a bidder's security may be prescribed in the Contract Specifications and in the
public Notice Inviting Bids. Bidders shall be entitled to the return of the bid security
upon full execution by the successful bidder of an awarded contract by OCSD. A
successful bidder may forfeit its bid security upon refusal or failure to execute the
Resolution No.OCSD 07-04 26 of 37
Rehm to Agenda Reporl
Contract within the prescribed time after the Notice of Award of Contract has been
delivered to the bidder, unless OCSD is responsible for the delay in the prescribed time.
The Board of Directors may, on the refusal or failure of the successful bidder to execute
the contract, award it to the next lowest responsive, responsible bidder. If the Board of
Directors awards the Contract to the next lowest bidder, an amount of the lowest
bidder's security equal to the difference in an amount between the low bid and the
awarded bid shall be forfeited to OCSD,and the surplus, if any,shall be returned to the
lowest bidder.
C. Bid Ocening Procedure. Sealed bids shall be submitted to the
Director of Engineering,or Contracts/Purchasing Manager, or their designee, or the
Secretary of the Board of Directors, as identified in the bid document,and shall be
identified as a bid on the envelope. Bids shall be opened In public, at the time and
place stated in the public notice. A tabulation of all bids received shall be available for
public inspection during regular business hours for a period of not less than thirty(30)
calendar days after the bid opening.
D. Bid Ecual or Less Than Construction Budget. For any project,
upon receipt of bids for construction, if the lowest responsive bid of a responsible bidder
is equal to or less than the approved construction budget for the project,the bid will be
submitted to the Board of Directors. The Board of Directors may award a contract.
E. Bid Greater Than Construction Budget. For any project,upon
receipt of bids for construction, If the lowest responsive bid of a responsible bidder is
greater than the approved construction budget for the project, Staff shall present the bid
and a recommendation to the E&O Committee for review and recommendation to the
Board of Directors.
F. Refection of Bids. In its discretion,the Board of Directors may
reject any and all bids presented and re-advertise for bids. If, after the opening of bids,
all bids are rejected, the Board of Directors, on a Resolution adopted by a four-fifths
(4/5ths)vote, may declare that the work can be performed more economically by force
account, ff in accordance with applicable provisions of California Public Contract Code,
or the materials or supplies furnished at a lower price in the open market and may have
the work done in a manner stated in the Resolution in order to take advantage of this
lower cost.
G. Tie Bids. If two(2)or more bids received are for the same total
amount or unit price(with quality and service being equal), and If the public interest will
not be best served by a delay or re-advertising for bids,the Board of Directors may
accept the one it chooses, or accept the lowest bid made by negotiation with the tie
bidders at the time of the award.
H. One Bid. When only one bid is received in response to a Notice
Inviting Bids (NIB), the bid may be considered and accepted if a determination is made
that(a)the specifications used in the NIB were not unduly restrictive, (b)the required
competition was solicited and it could have been reasonably assumed that more than
one bid would have been submitted, (c)the price is reasonable, (d)the bid is otherwise
in accordance with the NIB,and(a)all processes and procedures have been followed in
accordance with the Public Contract Code.
Reaolubw No.ocso 07-0e 270137
I. No Bids. If no bids are received, OCSD may have the work done
by force account, may re-advertise for bids pursuant to the procedures herein, or may
select a contractor by negotiation.
J. Ememencies. Whenever an emergency arises which is, or may
be, a threat to the continued operation of the wastewater facilities, support facilities, and
/or administrative facilities operated by OCSD, a Contract for the repair or replacement
of the public facility may be ordered by the General Manager without complying with the
provisions of this Resolution or the California Public Contract Code. This authority is
hereby delegated to the General Manager, or his designee, by the Board of Directors
pursuant to the authority of California Public Contract Code Section 22050. In such
event, the General Manager shall advise the OCSD Chair and/or Vice Chair, as
appropriate, of the action taken, and such action shall be confirmed by a four-fifths
(4/5ths)vote of the Board of Directors at its next regular meeting.
K. Surety Bonds. The Purchasing Division shall require a Faithful
Performance Bond and a Labor and Materials Bond. A Warranty Bond maybe required
before entering into a Contract in an amount up to one hundred (100%)percent of the
amount of the Contract, as it shall find reasonably necessary to protect the best interests
of OCSD. The form and amount of the Bond shall be described in the Notice Inviting
Bids, or in the Contract Specifications. Original Bonds for public works construction
contracts shall be kept in the official OCSD file which is maintained by the Clerk of the
Board.
L. Cost Records. Cost records shall be kept in the manner provided
in Sections 4000 to 4007 inclusive, of the Califomia Government Code.
ResduNm No.OCSD 07-04 28 of 37
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ARTICLE VII
AWARD AUTHORIZATION
7.01 AGREEMENTS AMENDMENTS & CHANGE ORDERS
A. Agreements
B. Amendments & Change Orders
C. Amendments & Change Orders to Existing
Agreements
7.02 FACILITIES ENGINEERING PROJECTS
A. Task Orders
B. Amendments
7.03 PUBLIC WORKS PROJECTS
A. Close-out Agreements
B. Notice of Completion
C. Time Extension to Public Works Contracts
Ra Woo No,OC D 07-04 29 of 37
Section 7.01: ALL PURCHASE AGREEMENTS, AMENDMENTS AND
CHANGE ORDERS
This Section 7.01 applies to all Purchase Agreements, Amendments, and
Change Orders entered into by the District.
A. Agreements
The award and execution of an Agreement on behalf of OCSD, shall be made in
accordance with the following delegations of authority:
Delegated Authorized
Authority Authorized Action
Staff Level C Authorization to approve budgeted
purchases less than or equal to$2,000.
Staff Level B Authorization to approve budgeted
purchases from $2,001 through $5,000.
Staff Level A Authorization to approve budgeted
purchases from $5,001 through $10.000.
Division Manager Authorization to approve budgeted
purchases from $10,001 through $25,000.
Department Director Authorization to approve budgeted
purchases from$25,001 through $50,000.
Assistant General Manager Authorization to review and approve
budgeted purchases between $50,001 and
an amount not to exceed $100,000. Items
to be reported to the Board of Directors on a
quarterly basis.
General Manager Authorization to review and approve
budgeted purchases between $50,001 and
an amount not to exceed $100,000. Items
to be reported to the Board of Directors on a
quarterly basis.
Rewlubw No.OOSD 07-04 30 of 37
Rehm to Agenda Reporl
Standing Committees Authorization to approve purchases over
$100,000 up to$200,000,and change
orders and amendments within a
ontingency budget to be established by
each Standing Committee for each
individual purchase agreement. In
approving each agreement, each Standing
Committee shall establish a contingency
budget in an amount up to fifty percent
(50%)of the original agreement price. The
aggregate amount of change orders and
amendments approved by staff shall not
exceed the contingency budget established
by the Standing Committee. If a Standing
Committee sets a contingency budget at
less than fifty percent(50%). it may later
increase the contingency budget; provided,
however,that the aggregate amount of
change orders and amendments shall not
exceed fifty percent(50%)of the original
agreement price.
Board of Directors Authorization to approve purchases over
$200,000. For purchases over$200,000,
the Board may establish a contingency
budget for change orders and amendments
that increase the agreement price. Any
increase in the agreement price above the
original agreement price,or the contingency
budget amount(if any),shall be approved
by the Board of Directors
B. Amendments and Change Orders:
The award and execution of amendments and change orders to Agreements,on
behalf of OCSD shall be made in accordance with the following:
Authorized Authority Authorized Action
Department Head Authorization to make recommendation to
the General Manager.
Rasdution No.OCSD 07-N 31 d 37
General Manager Review recommendation of Department
Head and approve amendments provided
that the total contract shall not exceed
$100,000 (includes original contract and all
amendments). General Manager shall be
authorized to approve all amendments for
chemical contracts, unless contract unit
price has been changed from original Board
award. If the original chemical contract
was approved in the budget pro-approval
process, a unit price increase exceeding the
unit price awarded in the budget pre-
approval year would require Board
approval.
Contracts awarded in the pre-approval
process based upon a not to exceed
amount, not unit price, may be increased up
to the amount preapproved in the budget
year the contract was awarded.
The General Manager shall manage the
expenditure of all approved contingency
funds in connection with all amendments
and change orders approved by the Board,
the standing committees, and the General
Manager.
Board of Directors Receive recommendations of General
Manager, approve all amendments and
change orders that exceed the maximum
aggregate amounts established at the time
that original Agreements are approved.
C. Change Orders to Existina Public Works Agreements
This subsection (C) shall apply to "existing public works agreements"from
January 2007 to July 1, 2007. Thereafter, existing agreements shall be governed by the
other provisions of this resolution. For purposes of this subsection (C), the term
"existing public works agreements" shall mean public works agreements approved prior
to the effective date of this resolution.
The award and execution of a Public Works Agreement Change Order
shall be made in accordance with the following delegations of authority:
Resolution No.OCSD OM4 32 of 37
Return b Aoenda Rem
Authorized Authority Authorized Action
General Manager Receive recommendation of the Department
Head and approve contract changes in an
amount up to$100,000 per Public Works
agreement. When the total combined value
of all Change Orders approved by the
General Manager, the Operations
Committee and/or Board of Directors
equals or exceeds $100,000, the General
Manager's authorization limit has been
satisfied. Note that this is the total amount
of Change Order additions (not net amount
of change order).
Total cumulative amount for all Change
Order additions not to exceed 5%of the
original contract amount or$1130,000.
whichever is less.
Operations Committee Receive recommendation of the General
Manager and approve Public Works
agreement changes from$100.001 through
$200.000 per Public Works agreement.
When the total combined value of all
Change Orders approved by the General
Manager, the Operations Committee and/
or Board of Directors equals or exceeds
$200,000,the Operations Committee's
authorization limit has been satisfied. Note
that this is the total amount of Change
Order additions(not net amount of Change
Order).
Total cumulative amount for all Change
Order additions not to exceed 10%of the
original contract amount or$200,000,
whichever is less.
Board of Directors Approve Change Order additions in
amounts over 10%of the original contract
amount,or greater than $200,000.
R"olulm No.OCSD 07-04 330137
Section 7.02: TASK ORDERS FOR FACILITIES ENGINEERING
PROJECTS:
A. Task Orders
The award and execution of a Task Order shall be made in accordance with the
following Delegation of Authority:
Authorized Authoritv Authorized Action
Director of Engineering Authorization to evaluate proposals and
execute a Task Order up to $75,000.
B. Amendments
The award and execution of an amendment to an issued Task Order shall be
made in accordance with the following Delegation of Authority:
Authorized Author!tv Authorized Action
Director of Engineering Authorization to negotiate amendments and
make recommendations to the General
Manager.
General Manager Receive recommendation of DOE and
approve each amendment to the Task
Order in an amount up to$25,000. When
the total combined value of the Task Order
and all amendments equals or exceeds
$100,000, the General Manager's
amendment authorization limit has been
satisfied.
Section 7.03: Public Works Protects
A. Close-Out Agreement.
The approval and execution of an original Close-Out Agreement shall be
made by the General Manager.
Resolubon No.OCSO 07-04 34 of 37
Return to Aaenda Report
B. Notice of Completion.
The approval and execution of an original Notice of Completion shall be
made in accordance with the following delegations of authority:
Authorized Authority Authorized Action
Director of Engineering Authority to approve and execute all or
Purchasing Notices of Completion.
C. Time Extension to Public Works Contrail.
The approval and execution of an original Time Extension to Construction
Contract shall be made in accordance with the following delegations of authority:
Authorized Authority Authorized Action
General Manager Authority to approve and execute
construction contract time extensions.
Resalr0on Ho.OCSD 0744 35 of 37
ARTICLE VIII
TRAINING. MEETINGS AND RELATED TRAVEL
EXPENDITURES
Section 8.01: Purpose and Scope.
This Article sets forth the procedures and scope of delegated authority by which
OCSD employees are authorized to incur expenses for budget-approved meetings and
training in furtherance of OCSD business.
Section 8.02: General.
A. Training or meetings exceeding $500 will be itemized, as well as
possible, in the approved budget. It is recognized that some meetings and training
cannot be pre-planned during the budget process.
B. All out-of-country travel (excluding Canada and Mexico) requires
approval by the Board of Directors.
C. Training or meetings requests exceeding $2,000 will be approved
by the Department Director.
D. Training or meetings requests less than $2,000 will be approved
by the Division Manager.
E. Established approvals must be received prior to arrangements for
meetings or training being made.
Section 8.03: Policies and Procedures.
All policies and procedures governing training or meetings, such as the use of
OCSD forms and justification, will be followed.
Resolution No.OCSD 01.03 36 of 37
Rehm to Agenda Reporl
ARTICLE IX
MISCELLANEOUS
Section 9.01: Noncompliance.
Any transaction failing to comply with this Resolution in any respect is voidable in
the discretion of the Board of Directors,and any employee willfully and knowingly
violating any provision of this Resolution may be subject to disciplinary action.
Section 9.02: Severability.
If any section,subsection, subdivision,sentence, clause,or phrase of this
Resolution is for any reason held to be unconstitutional or otherwise invalid, such
invalidity shall not affect the validity of the entire Resolution or any of the remaining
portions thereof. The Board of Directors hereby declares that it would have passed this
Resolution, and each section,subsection, subdivision, sentence,clause, and phrase
thereof, irrespective of the fact that any one or more sections, subsections, subdivisions,
sentences, clauses, or phrases be declared unconstitutional or otherwise invalid.
Section 9.03: Effective Date.
This Resolution No.OCSO 07-04 shall take effect February 28,2007, upon
adoption by the Board of Directors.
Section 9.04: Repeal of Prior Resolution.
Resolution No. OCSD 06-28 is hereby repealed in its entirety.
PASSED AND ADOPTED at a regular meeting of the Board of Directors held
February 28,2007.
CH R
ATTE$'JW g `
Clark ofthe ebard
ti `t
Rsealrion No.OCSD 07-04 37 Of 37 i ,
n
Return to Aaenda Reo.,
RESOLUTION NO. OCSD 07-13
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE
COUNTY SANITATION DISTRICT ESTABLISHING POLICY FOR THE
PAYMENT OF MANDATORY AND STATUTORY FEES GREATER THAN
THE LIMITS ESTABLISHED IN RESOLUTION NO. OCSD 07-04 AND
FUTURE UPDATES TO THE DELEGATION OF AUTHORITY
WHEREAS, the Sanitation District is responsible for collecting and treating
wastewater, and reusing or disposing of the treated wastewater and the separated
solids in accordance with all applicable federal, state and local laws and regulations;
and
WHEREAS, these regulations are established by: the Environmental Protection
Agency (EPA); the California Environmental Protection Agency (including the California
State Water Resources Control Board and the California Regional Water Quality
Control Board [CRWQCB]); and the South Coast Air Quality Management District
(SCAQMD); and
WHEREAS, the Sanitation District pays for permits to operate from these
regulatory agencies; and
WHEREAS, permit fees have consistently increased with time and the
Sanitation District's National Pollutant Discharge Permit Fee has increased to $128,500
and will possibly double in future fiscal years; and
WHEREAS, in accordance with the provisions of Ordinance No. OCSD-07-04,
the Delegation of Authority Policies and Procedures, payments over $100,000 require
Board approval.
NOW, THEREFORE, THE BOARD OF DIRECTORS OF ORANGE COUNTY
SANITATION DISTRICT DOES HEREBY RESOLVE, DETERMINE AND ORDER:
Section 1: This Board finds that:
A. Permit fees from regulatory agencies are mandatory and statutory; and
B. Such permits are required to operate collection facilities and the wastewater
treatment plants; and
C. Escalating costs of the NPDES permit have increased to $128,500 for
FY2006-07; and.
1
Return to Agenda Report
D. Other mandatory and statutory .permit fees may also increase to amounts
over$100,000; and
E. The Delegation of Authority, RESOLUTION NO. OCSD -7-04, states that
such payments require Board approval
F. The Board of Directors finds that such mandatory and statutory payments
may be paid directly to the regulatory agencies and are not subject to the
policies and procedures of RESOLUTION NO. OCSD -7-04
Section 2: This Resolution shall become effective immediately upon adoption.
PASSED AND ADOPTED at a regular meeting of the Board of Directors held
June 27, 2007.
Char
ATTEST:
zk� y,.
Clerk of the oard
M?AeptQM%15 151SSReedufi n 2WM7-13.NPDES Fee Pay entedm
2
Return to Mende Report
RESOLUTION NO. OCSD 12-17
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE
COUNTY SANITATION DISTRICT AMENDING SECTION 4.09 REQUEST FOR
PROPOSAL PROCEDURE OF RESOLUTION NO. OCSD 0744 TO EXPAND
THE REQUEST FOR PROPOSAL PROCEDURE TO INCLUDE THE
PURCHASE OF CRITICAL, ROUTINE, OR RECURRING GOODS OR
SERVICES AND TO DEFINE BEST VALUE
WHEREAS, the Orange County Sanitation District ("Districf) is a duly organized County
Sanitation District existing pursuant to the County Sanitation District Act, California Health and
Safety Code section 4700, et seq., providing for the ownership, operation, and maintenance of
wastewater collection, treatment, and disposal facilities within Orange County, California; and
WHEREAS, California Government Code section 54202 requires that every local
agency adopt policies and procedures, including bidding regulations governing purchases of
supplies, services, materials and equipment, and that purchases of supplies, services,
materials and equipment by the local agency be in accordance with said duly adopted policies;
and
WHEREAS, on February 28, 2007, the District adopted Resolution No. OCSD 07-04
entitled: "A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY
SANITATION DISTRICT (DISTRICT OR OCSD) ESTABLISHING POLICIES AND
PROCEDURES FOR THE AWARD OF PURCHASE ORDERS AND CONTRACTS; AWARD
OF PUBLIC WORKS PROJECT CONTRACTS; AWARD OF PROFESSIONAL SERVICES
CONTRACTS; AND DELEGATION OF AUTHORITY TO IMPLEMENT SAID POLICIES AND
PROCEDURES; AND REPEALING RESOLUTION NO. OCSD 06-28" (hereinafter,
"Purchasing Policy'); and
WHEREAS, Section 4.09, entitled "Request for Proposal Procedure," of the Purchasing
Policy permits the use of a Request for Proposal ("RFP") solicitation process in lieu of the
competitive bidding process for goods and services that prove difficult to quantify or describe;
and
WHEREAS, District staff has determined that there is a need to expand the use of the
RFP solicitation process for critical, routine or recurring goods or services such as, but not
limited to, the purchase of chemicals, in order to purchase such goods or services based upon
a 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, and/or other similar factors in addition to the price
in the award of these contracts.
NOW, THEREFORE, in consideration thereof, the Board of Directors of the Orange
County Sanitation District, does hereby resolve, declare, determine, and order as follows:
Section 1: All of the recitals herein contained are true and correct. '
Page 1 of 2
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Section 2: The first paragraph of Section 4.09, entitled "Request for Proposal
Procedure" is deleted in its entirety and replaced as follows:
If the Contracts / Purchasing Manager determines that the competitive
bidding process is not practical or advantageous for OCSD in a particular
case, he or she may award one or more contracts following a Request for
Proposal ("RFP") solicitation process. The RFP process may be used (i) for
goods or services that prove difficult to quantify or describe, where Proposers
may offer different approaches or solutions; and/or (ii) 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 shall be based upon criteria identified in the
solicitation which provide the best value for OCSD, wherein, best value is not
solely determined by price. "Best value" means the overall combination of
quality, price, and other elements of a proposal (or combination of several
proposals) that, when considered together, provide the greatest overall
benefit in response to the requirements described in the solicitation
documents.
Section 3: Unless specifically amended herein, the remaining provisions of the
Purchasing Policy shall continue in full force and effect. In the event of any conflict or
inconsistency between the provisions of this Resolution and any provisions of the Purchasing
Policy, the provision of this Resolution shall in all respects govern and control.
Section 4: This Resolution shall take effect immediately upon its adoption.
PASSED AND ADOPTED at a regular meeting held on December 19, 2012.
Troy Ed jar, lair
ATTEST:
Maria At ala, erk f the Board
Page 2 of 2
I
STEERING COMMITTEE Meeting Dare TO ad.of Di,
08,28,13 --
AGENDA REPORT Item Number Item Number
a
Orange County Sanitation District
FROM: Nick Kanetis, Director of Engineering
Originator: Jim Colston, Environmental Compliance Manager
SUBJECT: LEGISLATIVE AND PUBLIC AFFAIRS
GENERAL MANAGER'S RECOMMENDATION
Establish a Legislative and Public Affairs Committee of the Board of Directors.
SUMMARY
At the May 2013 meeting of the Steering Committee, several Committee Members
suggested creating a new Board Committee to oversee the legislative affairs program.
The Steering Committee may wish to consider expanding the scope of this committee to
include public affairs activities as well. This would the responsibilities of overseeing the
Sanitation District's legislative and public affairs activities under one committee.
Among the activities that could be assigned to this new committee are:
• Develop OCSD position on legislative proposals
• Recommend annual legislative platform and goals
• Travel to Sacramento and Washington, DC to meet with legislative delegations
• Confer with lobbyists and staff on legislative initiatives, grants, and appropriation
requests
• Consult with staff on public outreach opportunities
• Media relations
• Internal and external communications
• Provide direction to staff
Staff seeks direction from the Steering Committee regarding the establishment of this
new committee, the make-up of the Committee, and the frequency and time of
meetings. Resolution No. OCSD 10-06, Establishing Rules of Procedure for the
Conduct of Business of the District allows the Chairperson of the Board of Directors, or
the Chairperson of a Standing Committee, or a majority of the Directors, to appoint a
Special or Ad Hoc Committee to study and report on a current, specific matter, after
which the Ad Hoc or Special Committee will be dissolved. The Steering Committee
should consider whether it wants the Legislative and Public Affairs Committee to be a
permanent, standing committee or a temporary Ad Hoc/Special Committee.
Establishing a new standing committee would likely require a change to the Rules of
Procedure.
Page 1 of 2
ADDITIONAL INFORMATION
Prior to the decision to upgrade wastewater treatment facilities to meet the secondary
treatment requirements, the Sanitation District relied on member associations to
advocate for legislation. With the significant costs associated with new secondary
treatment facilities and the prior federal practice to provide grant funding nationwide for
these facilities, the Sanitation District hired lobbyists to seek funding for these and other
new facilities. Concurrently, the Sanitation District also became more involved in
California State legislative and grant activities.
Ultimately, a legislative staff member was hired, state and federal lobbyists were
contracted (two federal and two state lobbyists at one point), a grant writer and
administrator were contracted, and a legislative ad hoc committee of three members of
the Board of Directors was convened to strategize and execute efforts to seek funding
and influence legislation of interest to the Sanitation District. After 2007, when the
committee structure of the Board of Directors was reformed, the legislative function was
returned to the Steering Committee for future action.
Current functions of the Steering Committee related to legislation are to recommend
positions and actions on legislation; recommend an annual legislative platform and
goals; travel to Sacramento and Washington, DC by members of the Board of Directors
to meet with legislators and testify before committees; confer with lobbyists and staff on
legislative initiatives and public outreach opportunities; and give staff direction on the
legislative affairs program.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
CEQA
N/A
BUDGET / DELEGATION OF AUTHORITY COMPLIANCE
N/A
ATTACHMENTS
None
Page 2 d 2
STEERING COMMITTEE Meeting Dare To ad.of Di,
08,28,13 --
AGENDA REPORT Item Number Item Number
s
Orange County Sanitation District
FROM: Nick Kanetis, Director of Engineering
Originator: Jim Colston, Environmental Compliance Manager
SUBJECT: LEGISLATIVE UPDATE
GENERAL MANAGER'S RECOMMENDATION
Information Only.
SUMMARY
Staff and legislative consultant will provide an oral update to the Steering Committee
detailing federal and state legislative activities for the prior month. Written updates from
both the federal and state lobbyists are also provided as part of the report.
ADDITIONAL INFORMATION
N/A
PRIOR COMMITTEE/BOARD ACTIONS
N/A
CEQA
N/A
BUDGET/DELEGATION OF AUTHORITY COMPLIANCE
N/A
ATTACHMENTS
The following attachment(s) are provided in hard copy and may also be viewed on-line at the OCSD
website(www.ocsd.coml with the complete agenda package:
• Legislative Updates: State and Federal
Page 1 of 1
Return to Aaenda Repotl
L11 �V
RESOY
MEMORANDUM
TO: Jim Colston
FROM: Eric Sapirstein
DATE:J August 11,2013
SUBJECT: Washington Update
Congress spent the past month setting the stage for a busy autumn as both chambers
sought,unsuccessfully,to move a handful of spending bills for the new fiscal year that
begins October 1. Other efforts to advance legislation made limited progress,adding to
an increased workload that Congress will need to address during the remaining few
months of the session. Congress is technically scheduled to adjourn during the first
week of October,but this symbolic date will be extended because of the expected
debate surrounding increasing the nation's debt limit,which is projected to be reached
sometime in November.
The following summarizes the status of pending policy issues of interest to the District
USEPA Budget Subject to Significant Cuts and Policy Riders
Within the overall budget debate,USEPA has again become a critical element. The
House version of the agency's fiscal year spending bill seeks to impose a 33%spending
reduction on programs. For the all-important SRF program,this translates into a
commitment of just$250 million for POTW assistance,compared to a current year level
of almost$1 billion. By comparison,the Senate version would provide$1 billion in
assistance. Additionally,the House bill also provides for a series of policy riders. Some
of these riders,like the prohibition on the use of agency funds to redefine waters of the
U.S.,attracted a veto threat Other policy issues,including a mandate to rely on U.S.
manufactured iron and steel at SRF funded projects,have not attracted the
administration's ire. This mandate continues to be an issue of contention within
Congress because some Members believe that it could impose additional cost burdens
for POTW construction needs. The Senate funding bill includes a similar mandate as the
House. However,the Senate approach leaves the definition of which iron and steel
products would be subject to the mandate to USEPA definition.
ENS Resources,lnc
110114th Street N.W.,Suite 350
Washington,D.C.20005
Phone 202.466.3755frelefax 202.466.3787
Return to Aaenda Repotl
Infrastructure Financing Options
The past month saw renewed interest in jumpstarting the policy debate surrounding
the future of federal infrastructure assistance. The House,as previously noted,could
begin committee deliberations later this fall on mechanisms to address the funding
needs of POTWs through concepts like a WIFIA program and renewal of the SRF
program. One of the key policy matters involves funding levels within the overall
context of future federal spending. Some committee members and their staff are
considering an approach that would guarantee multi-year funding commitments,but at
greatly reduced authorization levels of around a billion dollars per year. Others are
seeking to return to levels closer to an average of$2 to$3 billion per year.
One option that continues to be a perennial initiative is a water trust fund akin to the
highway trust fund program. This policy approach has been significantly restructured
to a point that any trust fund's resources would be generated based upon a voluntary
contribution from industries that rely on POTWs for treatment of the influent. The
approach envisions a three-cent per bottle fee in exchange for the right to label the
bottle with a certification that the producer,a soft drink company,for example,could
exhibit,staling its commitment to improved water quality. Prospects that a voluntary
approach like this could succeed in generating significant resources are uncertain at
best. However,it is evidence that the original idea of a broad-based tax on industrial
users of POTW did not enjoy critical support in Congress.
House Committee Continues to Prepare for WRDA Rewrite
The Committee on Transportation and Infrastructure staff continues to prepare for a
markup of a renewed WRDA measure. As Congress recessed for the summer,its
chairman,Bill Shuster(R-PA),formally announced that but for a few undecided issues,
the committee was prepared to markup a bill in September. The only condition is an
ability to bring the bill to the House Boor for a vote. If he is unable to secure Floor time,
then markup would be delayed.
Because the bill appears to be headed for committee consideration,we reached out to
the District's newest delegation Member's,Alan Lowenthal,and staff to discuss the
matter of the anticipated mandate to remove riprap from the Santa Ana River. We also
discussed the matter with the Member. Staff were receptive to the District's concern
that a requirement to remove the riprap may not be an appropriate use of ratepayer
resources as well as the question surrounding responsibility for restoration of the
riverbank.We have arranged for a meeting with the staff upon Congress'return to work
in September to identify potential avenues,within a WRDA rewrite,to ensure an
equitable and appropriate restoration plan is developed,if the science dictates such
action.
USEPA Administrator Confirmed by Senate
The Senate voted 59-40 to confirm Gina McCarthy to become USEPA Administrator,
after a threat to revise Senate filibuster rules compelled Senators to agree to move
forward and vote on the long-stalled nomination. McCarthy,upon assuming the
position,announced that Acting Administrator Robert Perciasepe would return to his
prior position,Deputy Administrator,and continue in this capacity for the remainder
of the Administrations term.
ENSResoumes,lnc
110114th Street N.W.,Suite 350
Washington,D.C.20005
Phone 202.466.3755frelefax 202.466.3787
Return to Mende Report
Following up on the successful floor vote,Chairman Barbara Boxer convened the
Committee on Environment and Public Works to hear from a trio of USEPA nominees
including Kenneth Kopocis who was nominated to become the Assistant
Administrator for the Office of Water almost two years ago. Within days of the July
23 hearing,Boxer held a vote on the nominations and moved them to the Senate floor
for a final confirmation vote. The continued controversy surrounding Kopocis's
involvement in the development of new policy defining which waters of the U.S.are
subject to regulation under the Clean Water Act resulted in a hold being placed on
the nomination. Therefore,Congress recessed for the summer without taking a vote
on the nomination. The question now becomes whether Boxer and the Senate
Democratic leadership will threaten to revisit the filibuster rule to allow for a vote on
the nomination or if Kopocis decides that his nomination is captive to a policy debate
with no end and seeks to have the nomination rescinded.
Sunshine on Conflicts Act(H.R.836)
Our effort to advance the provisions of H.R.836 remain focused on the Committee on
Transportation and Infrastructure where staff have indicated a desire to address the
policy issue through legislation to renew infrastructure assistance legislation. Staff
continue to insist that they expect such legislation will be marked up later in the fall
after WRDA is addressed.
While we are hopeful that H.R.836's provisions will be incorporated into an
infrastructure bill,we continued to monitor USEPA's rulemaking efforts. The agency
continues to state that it plans to seek public comment on the existing income
restriction standard that defines conflict for purposes of water board appointments.
The agency is expected to issue a call for comments on the rule and need for revision
later this fall. At that time,the District will need to develop formal recommendations
for agency consideration. In the event that the agency moves forward on a
rulemaking,it would obviate the need for a legislative remedy.
Tax Reform and Municipal Bonds
If one policy arena enjoys bi-partisan congressional support,it is reforming the federal
tax code. Although,the definition of reform is subject to different interpretations,
based on which member of the House and Senate tax committees is discussing the
reform efforts. Without reference to the objectives of any reform initiative,it is clear
that both the House and Senate(along with the administration)are examining options
that would dramatically impact the core financing tool for POTWs and local
government in general: local tax-exempt bonds.
Central to the debate is whether such bond uses and availability should be permitted
to continue. Options that are under review target elimination of the bonds in total,
removing specific uses of the bonds,or curtailing the tax benefits of the bonds and
limiting these benefits to individuals that fall within a income tax rate bracket of 28%.
These bonds are vital to the District's long-term ability to finance the acquisition and
construction of water quality infrastructure. We continue to recommend that the
District communicate with its congressional delegation the importance of the
continued availability of tax-exempt financing remain to ensure the ability to finance
infrastructure needs created by federal mandates. We attach a recent letter related to
this priority that the District should rely upon in any discussions with the delegation.
ENSResoumes,lnc
110114th SneeL N.W.,Suite 350
Washingtnn,D.C.2D005
Phone 202.466.3755f relefex 202.466.3787
Return to Aaenda Report
TCDWNSEND
' UBLIC AFFAIRS
TPA --
MEMO
To: Orange County Sanitation District
From: Townsend Public Affairs, Inc.
Date: August 16, 2013
Subject: Monthly Status Report
The Legislature was on summer recess for the last several weeks and has returned to
session as of mid August. As we approach the end of the legislative session, there are
a few important deadlines to keep in mind.
• August 16: The last day for policy committees to meet and report on bills.
• August 30:The last day for fiscal committees to meet and report on bills.
• September 13: Final day for each house to pass bills. The legislature will recess
upon adjournment.
• October 13: Deadline for the Governor to sign or veto bills.
OCSD SPECIFIC LEGISLATION OF INTEREST
SB 691 (Hancock)
This bill is intended to narrowly target one-day violations that affect great numbers of individuals
affected by air quality violation with higher civil penalties. Senator Hancock stated that current
single-day violations of air quality regulations that affect entire communities lack adequate
financial consequences. He also stated that having adequate penalties for non-compliance is
essential to protecting public health and safety.
However, opponents of the bill stated that immensely increasing the penalties would impose a
penalty based simply on allegations of annoyance, whether or not the actual emissions are
harmful or in violation of an existing permit standard or requirement.
OCSD took an oppose position on the bill, and TPA worked extensively with OCSD staff
and Senator Hancock's office to ensure that the District's concerns were addressed.
Ultimately the bill was amended to address "toxic air substances" which alleviates the
District's opposition. CASA also removed opposition for the bill.
AB 371 (Sales)
This bill is intended to address the dumping of sewage (sludge) and its effects on the health,
safety and water quality in rural areas of Kern County. It is intended to clarify the original
legislative objective to protect the rights of local communities to adopt environmental protection
standards. According to Assembly Member Sales, "Uncontrolled dumping of sewage sludge
threatens our water and the public health of our communities. The recent court interpretation of
California law is an unacceptable outcome for the residents of Kern County".
State Capitol Office•925 L Street•Suite 1404•Sacramento.CA 95814•Phone(916)417-0 86•Fax(916)444-0383
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Conversely, according to the California Association of Sanitation Agencies, "The type of ban
which Kern County has previously sought to enforce, and which could be authorized by AB 371,
is in conflict with the Integrated Waste Management Act (IWMA), in conflict with the regional
welfare doctrine, and contrary to the overwhelming weight of scientific evidence that land
application of bio-solids is a safe and beneficial practice. This bill would circumvent the legal
process and establish a one-off rule for Kern County that has already been rejected by the
courts".
OCSD took an oppose position on the bill. The bill was heard In the Assembly Local
Government committee and was held on the suspense file. AB 371 will not be able to be
heard or modified before January 2014, and has become a two-year bill.
AB 690 (Campos)
The Assembly on Local Government Committee received overwhelming opposition to AB 690,
arguing that the bill would unfairly divert necessary property tax revenues from districts. In
response to the immense amount of opposition, the bill has now been amended to be aligned
with current law requiring local agencies' consent prior to property tax revenue diversion for the
creation of a Jobs and Infrastructure District(JID) program.
OCSD took an oppose unless amended position on the bill. The bill was set to be heard
on April 15' but was postponed. The bill will not be eligible to be heard again prior to the
legislature adjourning in September. The bill will be eligible to be taken back and/or
amended when the Legislature reconvenes in January 2014.
SB 785 (Wolk)
The bill makes three substantive changes to current law: (1) Lowering, from $2.5 million to $1
million, the value of projects that counties can construct using design-build; (2) Eliminating the
sunset dates that would have automatically repealed some statutes authorizing the use of the
design-build method; (3) Eliminates the cap on the number of projects that the state can
construct using the design-build method for specified types of projects.
According to the California Legislative Analyst's Office, this bill is intended to "...rewrite design-
build statutes to eliminate inconsistencies in existing law and consolidate state and local
agencies' statutory authority to develop projects using design-build. By consolidating statutes
and creating more uniform requirements, SB 785 makes the state laws governing the design-
build method clearer, more flexible, and easier to use".
OCSD took a support In concept position on the bill. Senator Wolk pulled the bill just
prior to the last committee hearing and placed it on the inactive file. The bill will not be
eligible to be taken back up or amended prior to January 2014. SB 785 was facing
significant opposition from the labor unions, and Senator Wolk decided to continue
working on the bill to determine if the opposition's concerns could be rectified.
SPECIFIC ACTIVITIES OF THE MONTH:
• TPA is continually monitoring legislation that could have any potential impact on the
District and TPA maintains a legislative tracking matrix for OCSD staff. Please find
attached a copy of the legislative matrix.
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• TPA met with Faviola Ochoa to discuss impending projects such as securing speakinq�
engagements for the Board and General Manager as well as OCSD's upcoming 60t
anniversary.
• TPA met with OCSD leadership to discuss education and outreach efforts related to
government affairs strategy.
• TPA worked with OCSD staff to create an outreach and education strategy document
discussing future plans for the Board and General Manager.
• TPA worked with Senator Hancock's office on SB 691 to amend the bill and remove
OCSD's opposition.
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ORANGE COUNTY SANITATION DISTRICT
Agenda
Terminology Glossary
AQMD Air Quality Management District
ASCE American Society of Civil Engineers
BOO Biochemical Oxygen Demand
CARB California Air Resources Board
CASA California Association of Sanitation Agencies
CCTV Closed Circuit Television
CEQA California Environmental Quality Act
CRWQCB California Regional Water Quality Control Board
CWA Clean Water Act
CWEA California Water Environment Association
EIR Environmental Impact Report
EMT Executive Management Team
EPA U.S. Environmental Protection Agency
FOG Fats, Oils, and Grease
FSSD Facilities Support Services Department
gpd Gallons per day
GWR System Groundwater Replenishment System (also called GWRS)
LOS Level of Service
MGD Million gallons per day
NACWA National Association of Clean Water Agencies
NPDES National Pollutant Discharge Elimination System
NWRI National Water Research Institute
O&M Operations and Maintenance
OCCOG Orange County Council of Governments
OCHCA Orange County Health Care Agency
OCSD Orange County Sanitation District
OCWD Orange County Water District
OOBS Ocean Outfall Booster Station
OSHA Occupational Safety and Health Administration
POTW Publicly Owned Treatment Works
ppm Parts per million
RFP Request For Proposal
RWQCB Regional Water Quality Control Board
SARFPA Santa Ana River Flood Protection Agency
SARI Santa Ana River Inceptor
SARWQCB Santa Ana Regional Water Quality Control Board
SAWPA Santa Ana Watershed Project Authority
SCADA Supervisory Control and Data Acquisition system
SCAP Southern California Alliance of Publicly Owned Treatment Works
SCAQMD South Coast Air Quality Management District
SOCWA South Orange County Wastewater Authority
SSMP Sanitary Sewer Management Plan
SSO Sanitary Sewer Overflow
SWRCB State Water Resources Control Board
TDS Total Dissolved Solids
TMDL Total Maximum Daily Load
TSS Total Suspended Solids
WDR Waste Discharge Requirements
WEF Water Environment Federation
WERF Water Environment Research Foundation
Activated-sludge process — A secondary biological wastewater treatment process where bacteria
reproduce at a high rate with the introduction of excess air or oxygen, and consume dissolved
nutrients in the wastewater.
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.
Biosolids — Biosolids are nutrient rich organic and highly treated solid materials produced by the
wastewater treatment process. This high-quality product can be recycled as a soil amendment on
farm land or further processed as an earth-like product for commercial and home gardens to improve
and maintain fertile soil and stimulate plant growth.
Capital Improvement Program (CIP) — Projects for repair, rehabilitation, and replacement of assets.
Also includes treatment improvements, additional capacity, and projects for the support facilities.
Coliform bacteria—A group of bacteria found in the intestines of humans and other animals, but also
occasionally found elsewhere used as indicators of sewage pollution. E. coli are the most common
bacteria in wastewater.
Collections system — In wastewater, it is the system of typically underground pipes that receive and
convey sanitary wastewater or storm water.
Certificate of Participation (COP) — A type of financing where an investor purchases a share of the
lease revenues of a program rather than the bond being secured by those revenues.
Contaminants of Potential Concern (CPC) — Pharmaceuticals, hormones, and other organic
wastewater contaminants.
Dilution to Threshold (DR) — the dilution at which the majority of the people detect the odor
becomes the D(f for that air sample.
Greenhouse gases — In the order of relative abundance water vapor, carbon dioxide, methane,
nitrous oxide, and ozone gases that are considered the cause of global warming ("greenhouse
effect').
Groundwater Replenishment (GWR) System — A joint water reclamation project that proactively
responds to Southern California's current and future water needs. This joint project between the
Orange County Water District and the Orange County Sanitation District provides 70 million gallons a
day of drinking quality water to replenish the local groundwater supply.
Levels of Service (LOS)—Goals to support environmental and public expectations for performance.
NOMA— N-Nitrosodimethylamine is an N-nitrosoamine suspected cancer-causing agent. It has been
found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide
with extra ultra-violet treatment.
National Biosolids Partnership (NBP) — An alliance of the National Association of Clean Water
Agencies (NACWA) and Water Environment Federation (WEF), with advisory support from the U.S.
Environmental Protection Agency (EPA). NBP is committed to developing and advancing
environmentally sound and sustainable biosolids management practices that go beyond regulatory
compliance and promote public participation in order to enhance the credibility of local agency
biosolids programs and improved communications that lead to public acceptance.
Plume—A visible or measurable concentration of discharge from a stationary source or fixed facility.
Publicly-owned Treatment Works (POTW)— Municipal wastewater treatment plant.
Santa Ana River Interceptor (SARI) Line — A regional brine line designed to convey 30 million
gallons per day (MGD) of non-reclaimable wastewater from the upper Santa Ana River basin to the
ocean for disposal, after treatment.
Sanitary sewer — Separate sewer systems specifically for the carrying of domestic and industrial
wastewater. Combined sewers carry both wastewater and urban run-off.
South Coast Air Quality Management District (SCAQMD) — Regional regulatory agency that
develops plans and regulations designed to achieve public health standards by reducing emissions
from business and industry.
Secondary treatment — Biological wastewater treatment, particularly the activated-sludge process,
where bacteria and other microorganisms consume dissolved nutrients in wastewater.
Sludge—Untreated solid material created by the treatment of wastewater.
Total suspended solids (TSS)—The amount of solids floating and in suspension in wastewater.
Trickling filter — A biological secondary treatment process in which bacteria and other
microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in
wastewater as it trickles over them.
Urban runoff — Water from city streets and domestic properties that carry pollutants into the storm
drains, rivers, lakes, and oceans.
Wastewater—Any water that enters the sanitary sewer.
Watershed —A land area from which water drains to a particular water body. OCSD's service area is
in the Santa Ana River Watershed.