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HomeMy WebLinkAbout04-14-2021 Administration Committee Meeting Complete Agenda Packet 4-7-21 ORANGE COUNTY SANITATION DISTRICT SPECIAL NOTICE REGARDING CORONAVIRUS (COVID-19) AND ATTENDANCE AT PUBLIC MEETINGS On March 4, 2020, Governor Newsom proclaimed a State of Emergency in California as a result of the threat of COVID-19. On March 12, 2020 and March 18, 2020, Governor Newsom issued Executive Order N-25-20 and Executive Order N-29-20, which temporarily suspend portions of the Brown Act which addresses the conduct of public meetings. The General Manager and the Chairman of the Board of Directors have determined that due to the size of the Orange County Sanitation District’s Board of Directors (25), and the health and safety of the members, the Board of Directors will be participating in meetings of the Board telephonically and via Internet accessibility. PUBLIC PARTICIPATION Your participation is always welcome. The Administration Committee meeting will be available to the public online at: https://ocsd.legistar.com/Calendar.aspx You may submit your comments and questions in writing for the Administration Committee’s consideration in advance of the meeting by using the eComment feature available via the webpage above or sending them to OCSanClerk@ocsd.com with the subject line “PUBLIC COMMENT ITEM # (insert the item number relevant to your comment)” or “PUBLIC COMMENT NON-AGENDA ITEM”. Submit your written comments by 5:00 p.m. on Tuesday, April 13, 2021. You may also submit comments and questions for the Administration Committee’s consideration during the meeting by using the eComment feature that will be available via the webpage above for the duration of the meeting. All public comments will be provided to the Administration Committee and may be read into the record or compiled as part of the record. Thank you. OC ~SAN ORANGE COUNTY SANITATION DISTRICT April 7, 2021 NOTICE OF MEETING ADMINISTRATION COMMITTEE ORANGE COUNTY SANITATION DISTRICT Wednesday, April 14, 2021 – 5:00 P.M. ACCESSIBILITY FOR THE GENERAL PUBLIC Due to the spread of COVID-19, the Orange County Sanitation District will be holding all upcoming Board and Committee meetings by teleconferencing and Internet accessibility. This meeting will be available to the public online at: https://ocsd.legistar.com/Calendar.aspx A regular meeting of the Administration Committee of the Orange County Sanitation District will be held in the manner indicated herein on Wednesday, April 14, 2021 at 5:00 p.m. 0 ~SAN 10844 Ellis Avenue Fountain Valley, CA 92708 714.962.2411 ORANGE COUNTY SANITATION DISTRICT www.ocsan.gov Our Mission: To protect public health and the environment by providing effective wastewater collection, treatment, and recycling. Serving: Anaheim Brea Buena Park Cypress Fountain Valley Fullerton Garden Grove Huntington Beach Irvine La Habra La Palma Los Alamitos Newport Beach Orange Placentia Santa Ana Seal Beach Stanton Tustin Villa Park County of Orange Costa Mesa Sanitary District Midway City Sanitary District Irvine Ranch Water District Yorba Linda Water District ADMINISTRATION COMMITTEE MEETING DATE BOARD MEETING DATE 04/14/21 04/28/21 05/12/21 05/26/21 06/09/21 06/23/21 07/14/21 07/28/21 AUGUST DARK 08/25/21 09/08/21 09/22/21 10/13/21 10/27/21 11/10/21 11/17/21 * 12/08/21 12/15/21 * JANUARY DARK 01/26/22 02/09/22 02/23/22 03/09/22 03/23/22 * Meeting will be held on the third Wednesday of the month ROLL CALL ADMINISTRATION COMMITTEE Finance, Information Technology, Environmental Services and Human Resources Meeting Date: April 14, 2021 Time: 5:00 p.m. Adjourn: COMMITTEE MEMBERS (13) Chad Wanke, Chair Glenn Parker, Vice-Chair Brad Avery Art Brown Kim Carr Mark Chirco Rose Espinoza Marshall Goodman Patrick Harper Anthony Kuo Andrew Nguyen David Shawver (Board Chair) John Withers (Board Vice-Chair) OTHERS Brad Hogin, General Counsel STAFF Jim Herberg, General Manager Rob Thompson, Assistant General Manager Lorenzo Tyner, Assistant General Manager Celia Chandler, Director of Human Resources Kathy Millea, Director of Engineering Lan Wiborg, Director of Environmental Services Kelly Lore, Clerk of the Board ORANGE COUNTY SANITATION DISTRICT Effective 2/9/2021 BOARD OF DIRECTORS Complete Roster AGENCY/CITIES ACTIVE DIRECTOR ALTERNATE DIRECTOR Anaheim Stephen Faessel Jose Diaz Brea Glenn Parker Steven Vargas Buena Park Art Brown Connor Traut Cypress Stacy Berry Anne Hertz Fountain Valley Patrick Harper Glenn Grandis Fullerton Jesus J. Silva Nick Dunlap Garden Grove Steve Jones John O’Neill Huntington Beach Kim Carr Dan Kalmick Irvine Anthony Kuo Farrah N. Khan La Habra Rose Espinoza Jose Medrano La Palma Marshall Goodman Nitesh Patel Los Alamitos Mark A. Chirco Ron Bates Newport Beach Brad Avery Joy Brenner Orange Kim Nichols Chip Monaco Placentia Chad Wanke Ward Smith Santa Ana Johnathan Ryan Hernandez Nelida Mendoza Seal Beach Sandra Massa-Lavitt Schelly Sustarsic Stanton David Shawver Carol Warren Tustin Ryan Gallagher Austin Lumbard Villa Park Chad Zimmerman Robert Collacott Sanitary/Water Districts Costa Mesa Sanitary District Bob Ooten Art Perry Midway City Sanitary District Andrew Nguyen Sergio Contreras Irvine Ranch Water District John Withers Douglas Reinhart Yorba Linda Water District Brooke Jones Phil Hawkins County Areas Board of Supervisors Doug Chaffee Donald P. Wagner ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, April 14, 2021 - 5:00 PM Board Room Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 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, and on the Sanitation District’s website at www.ocsd.com not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all, or a majority of the Board of Directors, are available for public inspection in the office of the Clerk of the Board. AGENDA DESCRIPTION: The agenda provides a brief general description of each item of business to be considered or discussed. The recommended action does not indicate what action will be taken. The Board of Directors may take any action which is deemed appropriate. MEETING AUDIO: An audio recording of this meeting is available within 24 hours after adjournment of the meeting. Please contact the Clerk of the Board's office at (714) 593-7433 to request the audio file. NOTICE TO DIRECTORS: To place items on the agenda for a Committee or Board Meeting, the item must be submitted in writing to the Clerk of the Board: Kelly A. Lore, MMC, (714) 593-7433 / klore@ocsd.com at least 14 days before the meeting. FOR ANY QUESTIONS ON THE AGENDA, BOARD MEMBERS MAY CONTACT STAFF AT: General Manager: Jim Herberg, jherberg@ocsd.com / (714) 593-7300 Asst. General Manager: Lorenzo Tyner, ltyner@ocsd.com / (714) 593-7550 Asst. General Manager: Rob Thompson, rthompson@ocsd.com / (714) 593-7310 Director of Human Resources: Celia Chandler, cchandler@ocsd.com / (714) 593-7202 Director of Engineering: Kathy Millea, kmillea@ocsd.com / (714) 593-7365 Director of Environmental Services: Lan Wiborg, lwiborg@ocsd.com / (714) 593-7450 OC ~SAN ORANGE COUNTY SANITATION DISTRICT ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, April 14, 2021 CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL AND DECLARATION OF QUORUM: Clerk of the Board PUBLIC COMMENTS: Your participation is always welcome. The Administration Committee meeting will be available to the public online at: https://ocsd.legistar.com/Calendar.aspx. You may submit your comments and questions in writing for theAdministration Committee’s consideration in advance of the meeting by using the eComment feature available via the webpage above or sending them to OCSanClerk@ocsd.com with the subject line “PUBLIC COMMENT ITEM # (insert the item number relevant to your comment)” or “PUBLIC COMMENT NON-AGENDA ITEM”. Submit your written comments by 5:00 p.m. on April 13, 2021. You may also submit comments and questions for the Administration Committee’s consideration during the meeting by using the eComment feature that will be available via the webpage above for the duration of the meeting. All public comments will be provided to the Administration Committee and may be read into the record or compiled as part of the record. REPORTS: The Committee Chairperson 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: Consent Calendar Items are considered to be routine and will be enacted, by the Committee, after one motion, without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 1.2021-1567APPROVAL OF MINUTES RECOMMENDATION: Approve Minutes of the Regular Meeting of the Administration Committee held March 10, 2021. Originator:Kelly Lore Agenda Report 03-10-2021 Administration Committee Minutes Attachments: Page 1 of 4 ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, April 14, 2021 2.2021-1568PURCHASE OF A FOURIER TRANSFORM INFRARED MICROSCOPE RECOMMENDATION: Approve a Sole Source purchase to Thermo Electron/Thermo Fisher for a Fourier Transform Infrared Microscope (FTIM) for an amount not to exceed $109,713, including estimated tax and shipping. Originator:Lan Wiborg Agenda ReportAttachments: NON-CONSENT: 3.2021-1526PROPOSED ADOPTION OF ORDINANCE NO. OC SAN-XX UPDATING ELECTRONIC REQUIREMENTS FOR THE PRESENTATION OF CLAIMS OR DEMANDS FOR PAYMENT RECOMMENDATION: Recommend to the Board of Directors to: A. Introduce Ordinance No. OC SAN-XX, entitled: “An Ordinance of the Board of Directors of the Orange County Sanitation District Establishing Requirements for the Presentation of Claims or Demands for Payment; and Repealing Ordinance No. OCSD-17”; B. Motion to read Ordinance No. OC SAN-XX by title only and waive reading of said entire Ordinance on April 28, 2021; C. Set May 26, 2021, as the date for the second reading and adoption of Ordinance No. OC SAN-XX; and D. Direct the Clerk of the Board to publish summaries of the Ordinance as required by law. Originator:Lorenzo Tyner Agenda Report Ordinance No. OC SAN-XX Claims for Demand and Payment (Redline) Ordinance No. OC SAN-XX Claims for Demand and Payment (Clean) Attachments: 4.2021-1570PROPOSED ADOPTION OF ORDINANCE NO. OC SAN-XX UPDATING THE PURCHASING ORDINANCE RECOMMENDATION: Recommend to the Board of Directors to: A. Introduce Ordinance No. OC SAN-XX, entitled: “An Ordinance of the Board of Directors of the Orange County Sanitation District Establishing Requirements Page 2 of 4 ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, April 14, 2021 and Procedures for the Purchase of Goods, Services, and Public Works Projects; and Repealing Ordinance No. OCSD-52”; B. Motion to read Ordinance No. OC SAN-XX by title only and waive reading of said entire Ordinance on April 28, 2021; C. Set May 26, 2021, as the date for the second reading and adoption of Ordinance No. OC SAN-XX; and D. Direct the Clerk of the Board to publish summaries of the Ordinance as required by law. Originator:Lorenzo Tyner Agenda Report OC SAN-XX Purchasing Ordinance - Redline OC SAN-XX Purchasing Ordinance - Clean Attachments: INFORMATION ITEMS: 5.2021-1554FY 2021-22 OPERATING BUDGET UPDATE RECOMMENDATION: Information Item. Originator:Lorenzo Tyner Agenda ReportAttachments: 6.2021-1578ORANGE COUNTY SANITATION DISTRICT COLLECTION SYSTEM RECOMMENDATION: Information Item. Originator:Rob Thompson Agenda Report Item 6 Presentation Attachments: DEPARTMENT HEAD REPORTS: CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: Page 3 of 4 ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, April 14, 2021 BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: At this time Directors may request staff to place an item on a future agenda. ADJOURNMENT: The next Administration Committee meeting is scheduled for Wednesday, May 12, 2021 at 5:00 p.m. Page 4 of 4 ADMINISTRATION COMMITTEE Agenda Report Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 File #:2021-1567 Agenda Date:4/14/2021 Agenda Item No:1. FROM:James D. Herberg, General Manager Originator: Kelly A. Lore, Clerk of the Board SUBJECT: APPROVAL OF MINUTES GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Approve Minutes of the Regular Meeting of the Administration Committee held March 10, 2021. BACKGROUND In accordance with the Board of Directors Rules of Procedure, an accurate record of each meeting will be provided to the Directors for subsequent approval at the following meeting. RELEVANT STANDARDS ·Resolution No. OC SAN 21-04 ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: ·Minutes of the Administration Committee meeting held March 10, 2021 Orange County Sanitation District Printed on 4/6/2021Page 1 of 1 powered by Legistar™ OC6SAN ORANGE COUNTY SANITATION DISTRICT Orange County Sanitation District Minutes for the ADMINISTRATION COMMITTEE Wednesday, March 10, 2021 5:00 PM Board Room Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 CALL TO ORDER A regular meeting of the Administration Committee was called to order by Committee Chair Chad Wanke on Wednesday, March 10, 2021 at 5:01 p.m. in the Administration Building of the Orange County Sanitation District. Director Andrew Nguyen led the flag salute. Clerk of the Board Kelly Lore stated that the meeting was being held telephonically and via audio/video teleconferencing in accordance with the Governor's Executive Order No. N-29-20, due to the Coronavirus Pandemic (COVID-19). The Clerk of the Board announced the teleconference meeting guidelines. ROLL CALL AND DECLARATION OF QUORUM: Roll call was taken and a quorum was declared present, as follows: PRESENT:Chad Wanke, Glenn Parker, Brad Avery, Art Brown, Kim Carr, Mark Chirco, Rose Espinoza, Marshall Goodman, Patrick Harper, Andrew Nguyen, Anthony Kuo, David Shawver and John Withers ABSENT:None STAFF PRESENT: Kelly Lore, Clerk of the Board, and Joshua Martinez were present in the Board Room. Jim Herberg, General Manager; Rob Thompson, Assistant General Manager; Lorenzo Tyner, Assistant General Manager; Celia Chandler, Director of Human Resources; Kathy Millea, Director of Engineering; Lan Wiborg, Director of Environmental Services; Mortimer Caparas; Brian Engeln; John Frattali; Tina Knapp; Wally Ritchie; and Thomas Vu were in attendance telephonically. OTHERS PRESENT: Brad Hogin, General Counsel, and Ed Soong, Public Resource Advisory Group, were in attendance telephonically. PUBLIC COMMENTS: None. REPORTS: None. CONSENT CALENDAR: 1. APPROVAL OF MINUTES 2021-1512 Originator: Kelly Lore Page 1 of 5 OC ~SAN ORANGE COUNTY SANITATION DISTRICT ADMINISTRATION COMMITTEE Minutes March 10, 2021 MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the Regular Meeting of the Administration Committee held February 10, 2021. AYES:Chad Wanke, Glenn Parker, Art Brown, Kim Carr, Mark Chirco, Marshall Goodman, Patrick Harper, Andrew Nguyen, Anthony Kuo, David Shawver and John Withers NOES:None ABSENT:Brad Avery and Rose Espinoza ABSTENTIONS:None 2.RECORDS MANAGEMENT IMPLEMENTATION - TRUSTED SYSTEM 2021-1401 Originator: Lorenzo Tyner MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a Professional Consultant Services Agreement with ECS Imaging, Inc. to provide implementation services for a Records Management System, Specification No. CS-2020-1199BD, for an amount not to exceed $150,949; B. Approve a contingency of $ 22,642 (15%); and C. Approve four (4) optional one-year maintenance renewals of $14,164 per year. AYES:Chad Wanke, Glenn Parker, Art Brown, Kim Carr, Mark Chirco, Marshall Goodman, Patrick Harper, Andrew Nguyen, Anthony Kuo, David Shawver and John Withers NOES:None ABSENT:Brad Avery and Rose Espinoza ABSTENTIONS:None NON-CONSENT: Director Rose Espinoza joined the meeting prior to the vote taken for Item No. 3. Board Chair Shawver appeared to be away during the vote taken for Item No . 3. 3.SETTLEMENT OF CLAIMS, COLLECTION OF DELINQUENT ACCOUNTS, AND WORKERS’ COMPENSATION ACTIONS 2021-1468 Originator: Lorenzo Tyner Assistant General Manager Lorenzo Tyner introduced Controller Wally Ritchie who provided a brief introduction to the item and explained the cleanup of language due to organizational and operational changes that have occurred over the last 10 years. Mr. Page 2 of 5 ADMINISTRATION COMMITTEE Minutes March 10, 2021 Tyner and Mr. Ritchie explained the request to change the approval threshold from $10K to $25K for claims approval. A request was made to establish an annual detailed report with a summary of claims settled under staff's authority. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Adopt Resolution No. OC SAN 21-XX entitled, “A Resolution of the Board of Directors of Orange County Sanitation District Adopting Procedures for Settlement of Claims Made Against the Orange County Sanitation District; Settlement of Claims Made By the Orange County Sanitation District; Collection of Delinquent Accounts Owing to the Orange County Sanitation District; Settlement of Civil or Administrative Enforcement Actions; and Settlement of Workers’ Compensation Actions; and repealing Resolution No. OCSD 11-04”. AYES:Chad Wanke, Glenn Parker, Art Brown, Kim Carr, Mark Chirco, Rose Espinoza, Marshall Goodman, Patrick Harper, Andrew Nguyen, Anthony Kuo, David Shawver and John Withers NOES:None ABSENT:Brad Avery ABSTENTIONS:None 4.WASTEWATER REFUNDING REVENUE OBLIGATIONS, SERIES 2021A 2021-1469 Originator: Lorenzo Tyner Mr. Tyner provided a brief introduction to the item and Mr. Ritchie explained the details of the obligations and the refunding opportunities. Mr. Ed Soong, Public Resource Advisory Group, provided the cost to refund at approximately $750K. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Authorize the General Manager to issue new fixed rate Certificates of Participation, to be referred to as Wastewater Refunding Revenue Obligations, in (1) an amount sufficient to refund $102,200,000 of Revenue Refunding Certificate Anticipation Notes, Series 2018A maturing on August 15, 2021 and (2) an additional amount sufficient to refund, subject to market conditions, up to $61,575,000 of Wastewater Refunding Revenue Obligations, Series 2011A. AYES:Chad Wanke, Glenn Parker, Art Brown, Kim Carr, Mark Chirco, Rose Espinoza, Marshall Goodman, Patrick Harper, Andrew Nguyen, Anthony Kuo, David Shawver and John Withers NOES:None ABSENT:Brad Avery ABSTENTIONS:None Page 3 of 5 ADMINISTRATION COMMITTEE Minutes March 10, 2021 INFORMATION ITEMS: 5.OVERVIEW OF PROPERTY - LIABILITY INSURANCE 2021-1511 Originator: Lorenzo Tyner Mr. Ritchie provided a PowerPoint presentation which included the coverage, policy limits, and retentions of Excess General Liability, Workers' Compensation, Property Insurance, Earthquake, and Marine Vessel. Our Broker is currently working on our renewal quotations and will provide the information at a future meeting. In response to a question regarding a backup policy for Workers' compensation, Mr. Tyner and Mr. Ritchie stated that there are reserves in place for claims, and additional coverage may be found under other policies. ITEM RECEIVED AS AN: Information Item. Director Brad Avery joined the meeting at approximately 5:28 p.m. during the presentation of Item No. 5. 6.FY 2021-22 ORANGE COUNTY SANITATION DISTRICT BUDGET UPDATE REVENUE OVERVIEW 2021-1501 Originator: Lorenzo Tyner Mr. Ritchie provided a PowerPoint presentation that explained the four major and largest revenue categories, fees and charges, general user fees, top 10 industrial users, property taxes and interest, other interagency fees, debt proceeds to support the CIP program, Reserve Policy summary, seven reserve criteria, and discretionary reserve criteria. ITEM RECEIVED AS AN: Information Item. 7.OPERATIONS & MAINTENANCE: WASTEWATER 101 2021-1519 Originator: Rob Thompson Assistant General Manager Rob Thompson provided a PowerPoint presentation regarding the Water Reclamation Process including: Metering and Diversion structure, Primary and Secondary treatment, effectiveness of water treatment, solids recovery process, dewatering operation, truck loading, central generation engines, and annual operating costs. ITEM RECEIVED AS AN: Information Item. Page 4 of 5 ADMINISTRATION COMMITTEE Minutes March 10, 2021 DEPARTMENT HEAD REPORTS: None. CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: Board Chair Shawver requested a report of energy cost savings costs due to the processes implemented at OC San. ADJOURNMENT: Chair Wanke declared the meeting adjourned at 6:13 p.m. to the Regular meeting to be held on Wednesday, April 14, 2021 at 5:00 p.m. Submitted by: __________________ Kelly A. Lore, MMC Clerk of the Board Page 5 of 5 ADMINISTRATION COMMITTEE Agenda Report Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 File #:2021-1568 Agenda Date:4/14/2021 Agenda Item No:2. FROM:James D. Herberg, General Manager Originator: Lan C. Wiborg, Director of Environmental Services SUBJECT: PURCHASE OF A FOURIER TRANSFORM INFRARED MICROSCOPE GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Approve a Sole Source purchase to Thermo Electron/Thermo Fisher for a Fourier Transform Infrared Microscope (FTIM) for an amount not to exceed $109,713, including estimated tax and shipping. BACKGROUND This purchase is for a new Fourier Transform Infrared Microscope (FTIM). A FTIM is being requested primarily as a tool to support the investigation and tracking of microparticles, including microplastics, at Orange County Sanitation District (OC San). The FTIM is an analytical instrument that identifies the chemical fingerprint of a substance by measuring its response to infrared light. This allows the user to determine the identity and chemical properties of unknown materials. This instrument will be used by staff at OC San to accurately characterize and quantify suspected microplastics and microfibers in OC San’s wastewater treatment plants. Staff will be able to use it to understand the potential sources, properties, and fate of microparticles throughout the wastewater treatment train. The FTIM may be used for any matrix including influent, grit, biosolids, offshore sediments, and fish tissues. The FTIM will become an important tool as the efforts to monitor and regulate microplastics in wastewater expand. The FTIM has become the industry standard for measuring suspected microplastics in wastewater and is regarded as the best available technology. RELEVANT STANDARDS ·Ensure that investment proposals and decisions are based on clearly defined standards ·Ensure the public’s money is wisely spent ·Comply with environmental permit requirements ·Listen to and seriously consider community input on environmental concerns ·Maintain influential legislative advocacy and a public outreach program ·Maintain collaborative and cooperative relationships with regulators, stakeholders, and neighboring communities Orange County Sanitation District Printed on 4/7/2021Page 1 of 3 powered by Legistar™ OC6SAN ORANGE COUNTY SANITATION DISTRICT File #:2021-1568 Agenda Date:4/14/2021 Agenda Item No:2. TIMING CONCERNS OC San is required to conduct several Strategic Process Studies (SPS)by its National Pollutant Discharge Elimination System Permit (NPDES Permit).One of the SPS studies has been jointly developed by OC San and regulatory agencies to characterize microplastics in wastewater. Timely procurement will provide staff with the necessary time to analyze samples and adhere to the SPS timeline that has been approved by the regulatory agencies.Timely procurement will also enable staff to participate in the ongoing statewide microplastic analytical method development and standardization effort. RAMIFICATIONS OF NOT TAKING ACTION Failure to obtain the FTIM would prevent OC San from meeting the SPS requirement in OC San’s NPDES permit and would also prevent OC San from participating in the ongoing statewide microplastics method development and standardization effort. The budget for the FTIM would be forfeited if not purchased and delivered by June 30,2021.There is an approximate 6-8-week delivery period for the FTIM.The allocated funds would not roll over to the Fiscal Year 2021-2022. ADDITIONAL INFORMATION OC San requested quotes from scientific equipment supply company VWR pursuant to the terms and conditions of the National Association of State Procurement Officials (NASPO),Value Point Master Agreement No. MA16000234-2. VWR provided two quotes for comparable FTIM system,one from PerkinElmer for $118,883,and the other from Thermo Electron for $126,700. The direct quote from Thermo Electron is $109,713 for the same FTIM system offered through VWR. Summary information on the quotes received for the purchase of a FTIM is as follows: Vendor Quote Amount Thermo Electron (Nicolet iN10 MX FTIM)$ 109,713 VWR (Perkin Elmer - Spotlight 400 FTIM)$ 118,883 VWR (Thermo Electron - Nicolet iN10 MX FTIM)$ 126,700 FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance.(FY 2020-2021 Budget:Section 8,Page 100).The cost for the FTIM has been budgeted as capital equipment for fiscal year 2020-2021.The quoted amount includes $100,792 for the equipment,sales tax estimated to be $8,571, and shipping estimated at $350 for a total of $109,713. Orange County Sanitation District Printed on 4/7/2021Page 2 of 3 powered by Legistar™ File #:2021-1568 Agenda Date:4/14/2021 Agenda Item No:2. Date of Approval Contract Amount Contingency 04/14/2021 $109,713 ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: N/A Orange County Sanitation District Printed on 4/7/2021Page 3 of 3 powered by Legistar™ ADMINISTRATION COMMITTEE Agenda Report Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 File #:2021-1526 Agenda Date:4/14/2021 Agenda Item No:3. FROM:James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: PROPOSED ADOPTION OF ORDINANCE NO. OC SAN-XX UPDATING ELECTRONIC REQUIREMENTS FOR THE PRESENTATION OF CLAIMS OR DEMANDS FOR PAYMENT GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: A. Introduce Ordinance No. OC SAN-XX, entitled: “An Ordinance of the Board of Directors of the Orange County Sanitation District Establishing Requirements for the Presentation of Claims or Demands for Payment; and Repealing Ordinance No. OCSD-17”; B. Motion to read Ordinance No. OC SAN-XX by title only and waive reading of said entire Ordinance on April 28, 2021; C. Set May 26, 2021, as the date for the second reading and adoption of Ordinance No. OC SAN -XX; and D. Direct the Clerk of the Board to publish summaries of the Ordinance as required by law. BACKGROUND Under the Government Claims Act, California Government Code Sections 800, et seq., most claims for money or damages against a public agency must be presented to the agency first before a lawsuit is filed against the agency. In 2001, the Orange County Sanitation District (OC San) adopted Ordinance No. OCSD-17 which established the requirements for the presentation of such claims or demands for payment to OC San. RELEVANT STANDARDS ·Ordinance No. OCSD-17 ·SB 1473 Local Government Omnibus Act of 2020 Chapter 371 Orange County Sanitation District Printed on 4/6/2021Page 1 of 2 powered by Legistar™ OC6SAN ORANGE COUNTY SANITATION DISTRICT File #:2021-1526 Agenda Date:4/14/2021 Agenda Item No:3. PROBLEM A new law effective January 1,2021 allows a claimant to submit a claim to a public agency electronically if the agency has adopted an ordinance or resolution authorizing the electronic submission of claims. Ordinance No.OCSD-17 does not authorize the electronic submission of claims.Allowing the electronic submission of claims would benefit both claimants and OC San by providing the convenience of electronic transmission and storage of claims. PROPOSED SOLUTION Modify OC San’s Ordinance No.OCSD-17 to include that all claims or demands may be presented, and all OC San responses provided, in either physical or electronic format. TIMING CONCERNS The current change to state law took effect January 1,2021.In light of the current pandemic and OC San’s efforts to adopt a paperless environment,we are requesting this change take place as soon as possible. RAMIFICATIONS OF NOT TAKING ACTION OC San would be unable to accept claims or demands electronically. PRIOR COMMITTEE/BOARD ACTIONS December 2001 -Adopted Ordinance No.OCSD-17,entitled:“An Ordinance of the Board of Directors of Orange County Sanitation District Establishing Requirements for the Presentation of Claims or Demand for Payment”. ADDITIONAL INFORMATION Minor changes in staff position titles during reorganization,considered housekeeping,are also included in this update. ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Draft Ordinance OC SAN-XX (redline) ·Draft Ordinance OC SAN-XX (clean) Orange County Sanitation District Printed on 4/6/2021Page 2 of 2 powered by Legistar™ ORDINANCE NO. OCSD-17OC SAN-XX AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT ESTABLISHING REQUIREMENTS FOR THE PRESENTATION OF CLAIMS OR DEMANDS FOR PAYMENT; AND REPEALING ORDINANCE NO. OCSD-17 NOW, THEREFORE, the Board of Directors of the Orange County Sanitation Ddistrict does hereby ORDAIN as follows: Section 1: Claims for Money or Damages. As a prerequisite to bringing suit against the District or any officer, employee, Department or Committee of the Orange County Sanitation District, any claim for money or damages, including claims which would otherwise be expected by Sections 905 and 935 of the Government Code of the State of California, which are not governed by any other statutes or regulations expressly relating thereto, shall be presented and acted upon in accordance with Title 1, Division 3.6, Part 3, Chapter 1 (commencing with Section 900) and Chapter 2 (commencing with Section 910) of the Government Code of the State of California. This Section relates only to bringing of suit upon a claim and shall not be deemed to apply to the authority of the Assistant General Manager/Director of Finance and the Board of Directors to process and pay, in the ordinary course of business, just obligations of the Orange County Sanitation District, such as routine salaries and wages, principal and interest on bonds, payments for purchases, and other like expenditures where there is no dispute as to the obligation and amount being payable. Section 2: Filing of Claims. All claims against the Orange County Sanitation District, as described in Section 1 of this Ordinance, shall be filed with the Board SecretaryClerk of the Board. Section 3. Audit and Approval of Demands. A. Except for claims described in Section 1 of this Ordinance, every demand, invoice, or claim for purchases, supplies, or services (hereinafter “demand”), shall be presented in writing to and approved in writing by the receiving Department Head or officer, who shall certify to the actual delivery or rendition of the supplies, materials, property, or service for which payment is claimed; that the quality and prices correspond with the original specifications in the contract or purchase order upon which the demand is based; that the demand in all other respects is proper and valid and shall further indicate the budgetary account to which such demand is to be changed. A.B. All demands may be presented, and all Orange County Sanitation District responses provided, in either physical or electronic format. B.C. All demands approved by the receiving Department or officer shall be presented to the Assistant General Manager/Director of Finance, who shall satisfy himself or herself as to whether: 1. The amount is legally due and owing by the Orange County Sanitation District; 2. There are budgeted or otherwise appropriated funds available to pay the claim or invoice; 3. The demand conforms to a valid requisition, contract, or purchase order; 4. The prices and computations shown on the demand are verified; and 5. The demand contains the approval of other Departments and officials, as required. C.D. Payroll warrants and checks, and warrants and checks drawn for payment of demands that have been certified by the Assistant General Manager/Director of Finance or the General Manager as conforming to a budget approved by the Board of Directors, need not be approved by the Board of Directors prior to payment. Except for payroll warrants or checks, demands certified by the Assistant General Manager/Director of Finance and paid prior to presentation to the Board of Directors shall be presented to the Board of Directors for inspection and ratification at its first meeting after delivery of warrants or checks. Should the Assistant General Manager/Director of Finance fail to certify a demand as in conformance with the Orange County Sanitation District’s budget, no check or warrant shall be issued until the Board of Directors has approved the demand for payment. D.E. Department Heads shall certify or approve Departmental payrolls or attendance records for employees in their Departments. The General Manager or designee(s) shall certify or approve payrolls or attendance records of other officers or employees. E.F. Budgeted expenses shall be presented to the Board of Directors for ratification in the form of an audited comprehensive annual financial report prepared by the Assistant General Manager/Director of Finance or his or her designee. F.G. Following audit of the demands, as set forth in Subsection B of this Section 3, the Assistant General Manager/Director of Finance shall prepare a register of demands showing the claimant’s name, the amount of the demand, and if paid, the warrant or check number and date thereof, and shall transmit the register to the Board of Directors with an affidavit stating that: 1. “In accordance with California Government Code Section 37208, the Assistant General Manager/Director of Finance hereby certifies that the attached demand register has been found to conform to the approved budget, expect as noted, and has been paid. These demands are hereby submitted for Board of Directors’ inspection and ratification.” 2. “In accordance with California Government Code Section 37202, the Assistant General Manager/Director of Finance certifies to the accuracy of the attached register of demands and to the availability of monies for payment thereof. These demands are hereby submitted to the Board of Directors for approval of payment.” G.H. An annual audit shall be prepared by and independent certified public accountant and submitted to the Board of Directors for review. Section 4: Checks and Warrants. No check, order, or warrant upon the Orange County Sanitation District treasury shall be drawn unless there are sufficient monies in the fund upon which it is drawn. All checks, orders, and warrants upon the Orange County Sanitation District treasury of any money shall bear the signature of the persons authorized by the Board of Directors. Section 5: The Secretary Clerk of the Board shall certify to the adoption of this Ordinance and shall cause a summary to be published in a newspaper of general circulation, as required by law. PASSED AND ADOPTED by the Board of Directors of the Orange County Sanitation District at a regular meeting held December 19, 2001May 26, 2021. ____________________________ David John Shawver Chair, Board of Directors Orange County Sanitation District ATTEST: ______________________________ Kelly A. Lore, MMC Secretary Clerk of the Board of Directors Orange County Sanitation District ______________________________ Thomas L. WoodruffBradley R. Hogin, General Counsel Orange County Sanitation District STATE OF CALIFORNIA ) ) ss COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OC SAN-XX was introduced for first reading at a regular meeting of said Board on the 28th day of April 2021, and passed and adopted at a regular meeting of said Board on the 24th 26th day of March May 2021, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 24th xx day of March 2021xx. Kelly A. Lore, MMC Clerk of the Board of Directors Orange County Sanitation District OC SAN-XX-1 ORDINANCE NO. OC SAN-XX AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT ESTABLISHING REQUIREMENTS FOR THE PRESENTATION OF CLAIMS OR DEMANDS FOR PAYMENT; AND REPEALING ORDINANCE NO. OCSD-17 NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District does hereby ORDAIN as follows: Section 1: Claims for Money or Damages. As a prerequisite to bringing suit against the District or any officer, employee, Department or Committee of the Orange County Sanitation District, any claim for money or damages, including claims which would otherwise be expected by Sections 905 and 935 of the Government Code of the State of California, which are not governed by any other statutes or regulations expressly relating thereto, shall be presented and acted upon in accordance with Title 1, Division 3.6, Part 3, Chapter 1 (commencing with Section 900) and Chapter 2 (commencing with Section 910) of the Government Code of the State of California. This Section relates only to bringing of suit upon a claim and shall not be deemed to apply to the authority of the Assistant General Manager/Director of Finance and the Board of Directors to process and pay, in the ordinary course of business, just obligations of the Orange County Sanitation District, such as routine salaries and wages, principal and interest on bonds, payments for purchases, and other like expenditures where there is no dispute as to the obligation and amount being payable. Section 2: Filing of Claims. All claims against the Orange County Sanitation District, as described in Section 1 of this Ordinance, shall be filed with the Clerk of the Board. Section 3. Audit and Approval of Demands. A. Except for claims described in Section 1 of this Ordinance, every demand, invoice, or claim for purchases, supplies, or services (hereinafter “demand”), shall be presented in writing to and approved in writing by the receiving Department Head or officer, who shall certify to the actual delivery or rendition of the supplies, materials, property, or service for which payment is claimed; that the quality and prices correspond with the original specifications in the contract or purchase order upon which the demand is based; that the demand in all other respects is proper and valid and shall further indicate the budgetary account to which such demand is to be changed. B. All demands may be presented, and all Orange County Sanitation District responses provided, in either physical or electronic format. OC SAN-XX-2 C. All demands approved by the receiving Department or officer shall be presented to the Assistant General Manager/Director of Finance, who shall satisfy himself or herself as to whether: 1. The amount is legally due and owing by the Orange County Sanitation District; 2. There are budgeted or otherwise appropriated funds available to pay the claim or invoice; 3. The demand conforms to a valid requisition, contract, or purchase order; 4. The prices and computations shown on the demand are verified; and 5. The demand contains the approval of other Departments and officials, as required. D. Payroll warrants and checks and warrants and checks drawn for payment of demands that have been certified by the Assistant General Manager/Director of Finance or the General Manager as conforming to a budget approved by the Board of Directors, need not be approved by the Board of Directors prior to payment. Except for payroll warrants or checks, demands certified by the Assistant General Manager/Director of Finance and paid prior to presentation to the Board of Directors shall be presented to the Board of Directors for inspection and ratification at its first meeting after delivery of warrants or checks. Should the Assistant General Manager/Director of Finance fail to certify a demand as in conformance with the Orange County Sanitation District’s budget, no check or warrant shall be issued until the Board of Directors has approved the demand for payment. E. Department Heads shall certify or approve Departmental payrolls or attendance records for employees in their Departments. The General Manager or designee(s) shall certify or approve payrolls or attendance records of other officers or employees. F. Budgeted expenses shall be presented to the Board of Directors for ratification in the form of an audited comprehensive annual financial report prepared by the Assistant General Manager/Director of Finance or his or her designee. G. Following audit of the demands, as set forth in Subsection B of this Section 3, the Assistant General Manager/Director of Finance shall prepare a register of demands showing the claimant’s name, the amount of the demand, and if paid, the warrant or check number and date thereof, and shall transmit the register to the Board of Directors with an affidavit stating that: OC SAN-XX-3 1. “In accordance with California Government Code Section 37208, the Assistant General Manager/Director of Finance hereby certifies that the attached demand register has been found to conform to the approved budget, expect as noted, and has been paid. These demands are hereby submitted for Board of Directors’ inspection and ratification.” 2. “In accordance with California Government Code Section 37202, the Assistant General Manager/Director of Finance certifies to the accuracy of the attached register of demands and to the availability of monies for payment thereof. These demands are hereby submitted to the Board of Directors for approval of payment.” H. An annual audit shall be prepared by and independent certified public accountant and submitted to the Board of Directors for review. Section 4: Checks and Warrants. No check, order, or warrant upon the Orange County Sanitation District treasury shall be drawn unless there are sufficient monies in the fund upon which it is drawn. All checks, orders, and warrants upon the Orange County Sanitation District treasury of any money shall bear the signature of the persons authorized by the Board of Directors. Section 5: The Clerk of the Board shall certify to the adoption of this Ordinance and shall cause a summary to be published in a newspaper of general circulation, as required by law. PASSED AND ADOPTED by the Board of Directors of the Orange County Sanitation District at a regular meeting held May 26, 2021. ____________________________ David John Shawver Chair, Board of Directors Orange County Sanitation District ATTEST: ______________________________ Kelly A. Lore, MMC Clerk of the Board of Directors Orange County Sanitation District ______________________________ Bradley R. Hogin, General Counsel Orange County Sanitation District OC SAN-XX-4 STATE OF CALIFORNIA ) ) ss COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OC SAN-XX was introduced for first reading at a regular meeting of said Board on the 28th day of April 2021, and passed and adopted at a regular meeting of said Board on the 26th day of May 2021, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this xx day of xx. Kelly A. Lore, MMC Clerk of the Board of Directors Orange County Sanitation District ADMINISTRATION COMMITTEE Agenda Report Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 File #:2021-1570 Agenda Date:4/14/2021 Agenda Item No:4. FROM:James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: PROPOSED ADOPTION OF ORDINANCE NO. OC SAN-XX UPDATING THE PURCHASING ORDINANCE GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: A. Introduce Ordinance No. OC SAN-XX, entitled: “An Ordinance of the Board of Directors of the Orange County Sanitation District Establishing Requirements and Procedures for the Purchase of Goods, Services, and Public Works Projects; and Repealing Ordinance No. OCSD-52”; B. Motion to read Ordinance No. OC SAN-XX by title only and waive reading of said entire Ordinance on April 28, 2021; C. Set May 26, 2021, as the date for the second reading and adoption of Ordinance No. OC SAN -XX; and D. Direct the Clerk of the Board to publish summaries of the Ordinance as required by law. BACKGROUND The proposed Purchasing Ordinance sets forth the requirements that apply to the Orange County Sanitation District's (OC San) purchase of goods and services. These requirements are currently set forth in Ordinance No. OCSD-52. The proposed Ordinance updates the requirements set forth in Ordinance No. OCSD-52 and clarifies several individual requirements and procedures. The Ordinance, for example, modifies procedures whereby bids can be accepted electronically, and local preference shall be made when awarding a bid with equal lowest bidders. RELEVANT STANDARDS ·CA Public Contract Code Section 20783 ·CA Government Code Section 4526; 54202 ·Ensure the public’s money is wisely spent Orange County Sanitation District Printed on 4/7/2021Page 1 of 3 powered by Legistar™ OC6SAN ORANGE COUNTY SANITATION DISTRICT File #:2021-1570 Agenda Date:4/14/2021 Agenda Item No:4. PROBLEM OC San last updated its Purchasing Ordinance in 2018 and now requires amendments to the existing requirements to improve its efficiency to purchase goods and services required by OC San. PROPOSED SOLUTION Adopt an Ordinance with the new proposed purchasing requirements and authority based on OC San’s staff thorough review and analysis of the limitations of the existing Ordinance. TIMING CONCERNS April 2021 - Introduction of the Ordinance to Administration Committee. April 2021 - Introduction and first reading of the Ordinance to the Board of Directors. May 2021 - Second Reading and Adoption of the Ordinance. June 26, 2021 - Ordinance takes effect. RAMIFICATIONS OF NOT TAKING ACTION The existing Purchasing Ordinance will remain in effect without modifications. PRIOR COMMITTEE/BOARD ACTIONS May 2018 -Adopted Ordinance No.OCSD-52,entitled:“An Ordinance of the Board of Directors of the Orange County Sanitation District Establishing Requirements and Procedures for the Purchase of Goods, Services, and Public Works Projects; and Repealing Ordinance No. OCSD-47”. ADDITIONAL INFORMATION Under Government Code Section 54202,OC San must adopt policies and procedures governing the purchase of supplies and equipment. Government Code Section 4526 applies to the purchase of professional services from private architects,landscape architects,engineers,environmental professionals,land surveyors,and construction managers.Under Section 4526,OC San must select the specified professionals based on demonstrated competence and the professional qualifications necessary for the satisfactory performance of the services required.Section 4526 allows OC San to adopt,by Ordinance, procedures ensuring that the specified services are engaged based on demonstrated competence and professional qualifications at fair and reasonable prices. Under Public Contract Code Section 20783,OC San must award contracts for public works construction worth more than $35,000 to the lowest responsive,responsible bidder.Public Contract Code also imposes a variety of requirements on the award of public works construction contracts. Orange County Sanitation District Printed on 4/7/2021Page 2 of 3 powered by Legistar™ File #:2021-1570 Agenda Date:4/14/2021 Agenda Item No:4. ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Draft Ordinance OC SAN-XX (redline) ·Draft Ordinance OC SAN-XX (clean) Orange County Sanitation District Printed on 4/7/2021Page 3 of 3 powered by Legistar™ 1288720.1 ORDINANCE NO. OC SAND-XX52 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT ESTABLISHING REQUIREMENTS AND PROCEDURES FOR THE PURCHASE OF GOODS, SERVICES, AND PUBLIC WORKS PROJECTS; AND REPEALING ORDINANCE NO. OCSD-5247 OCSD-52OC SAN-XX-2 CONTENTS ARTICLE 1. GENERAL PROVISIONS……… ............................................................. .6.5 Section 1.01. Purpose and Scope .................................................................... 6 ........................................................................................................................... 5 A. Purpose ............................................................................................... 65 B. Scope ................................................................................................... 65 Section 1.02. Title ............................................................................................. 65 Section 1.03. Definitions ................................................................................... 65 Section 1.04. Rules and Guidelines .................................................................. 65 Section 1.05. Budgeted Funds .......................................................................... 76 Section 1.06. The Purchasing Manager ............................................................ 76 A. Duties .................................................................................................. 76 B. Requests for Procurement...............................................................76 Section 1.07. Exceptions to Competitive Selection ..........................................76 A. Sole Source Procurement. ............................................................. 76 B. Emergency Procurement……………………………………………… 87 Section 1.08. Evaluation Committees…………………………………………… ...........................................................................................................................…. 97 Section 1.09. Severability…………………………………………………………… .............................................................................................................................9 7 ARTICLE 2. GOODS AND SERVICES ........................................................................... 97 Section 2.01. Purpose and Scope…………………………………………………...97 A. Purpose. .......................................................................................... 97 B. Scope. .............................................................................................98 Section 2.02. Selection Process…………………………………………………… 10 8 A. Competitive Sealed Bids ................................................................ ........................................................................................................ 108 B. Equal Bids --------- OCSD-52OC SAN-XX-3 ........................................................................................................ 108 C. Multi-Step Sealed Bidding ........................................................................................................ 108 D. Request for Proposals ........................................................................................................ 11 9 Section 2.03. Exceptions .......................................................................................................................... 11 9 A. Small Procurements ........................................................................................................ 11 9 B. Cooperative Purchases ................................................................... ......................................................................................................... 10 11 C. Critical Time-Sensitive Procurements ......................................................................................................... 120 D. Renewals……………………………………………………………….. 120 E.D. F.E. Sole Source and Emergency Procurements ............................... 120 G.F. Master Contracts; Maintenance and Repair Services Less Than or Equal to $300,000 .......................................................... 120 ARTICLE 3. PROFESSIONAL SERVICES ............................................................. 132 Section 3.01. Purpose and Scope ................................................................. 132 A. Purpose ....................................................................................... 132 B. Scope ....................................................................................... 132 Section 3.02. Selection Process .................................................................... 142 A. Request for Proposals ................................................................. 142 B. Evaluation and Ranking of Proposals .......................................... 142 C. Negotiation of Contract. ............................................................... 143 Section 3.03. Exceptions ............................................................................... 153 A. Sole Source and Emergency Procurements ............................... 153 B. Contractors Reporting to the Board ............................................. 153 C. Procurements of $10,000 or less ................................................ 153 OCSD-52OC SAN-XX-4 D. Master Contracts; Professional Services Less Than or Equal to $100,000 .................................................................................. 153 E. Master Contracts: Professional Services Qualified Lists .............. 153 ARTICLE 4. PROFESSIONAL DESIGN SERVICES .............................................. 175 Section 4.01. Purpose and Scope ................................................................. 175 A. Purpose ....................................................................................... 175 B. Scope ....................................................................................... 175 Section 4.02. Selection Process ................................................................... 175 A. Competitive Selection .................................................................. 175 B. Professional Design Services Greater Than $300,000 ............... 175 C. Master Contracts: Professional Design Services Less Than or Equal to $300,000 ................................................................... 197 Section 4.03. Exceptions ............................................................................... 219 A. Sole Source and Emergency Procurements ............................. 2119 B. Continuation ofAdditional Services ............................................ 2119 C. Procurements of $10,000 or less ............................................... 2119 ARTICLE 5. PUBLIC WORKS PROJECTS ............................................................. 220 Section 5.01. Purpose and Scope................................................................. 220 A. Purpose ....................................................................................... 220 B. Scope……………………………………….………………………. .................................................................................................... 22 0 Section 5.02. Selection Process…………………………………………………… .......................................................................................................................... …220 A. Design-Bid-Build .............................................................................. 220 B. Design-Build .................................................................................... 224 C. Prequalification ................................................................................... 242 Section 5.03. Exceptions ..........................................................................................................................253 A. A. .................................................................. Emergencies and Calamities ....................................................................................................... 253 B. B. ............................................... Specification of Brand or Trade Name ................................................................................................... 264 ARTICLE 6. PROTESTS OCSD-52OC SAN-XX-5 264 Section 6.01. Solicitation Protests ......................................................................................................................... 264 Section 6.02. Award Protests ......................................................................................................................... 275 Section 6.03. Delay in Award ......................................................................................................................... 275 Section 6.04. Remedies ................................................................................... 285 Section 6.05. Public Documents ....................................................................... 286 ARTICLE 7. DELEGATION OF AUTHORITY TO AWARD CONTRACTS ................... 286 Section 7.01. Award Authorization .................................................................... 286 A. Delegation by General Manager ..................................................... 286 B. Original Contracts and Contingencies ............................................. 297 C. Amendments, Change Orders, Renewals, Time Extensions & Assignments .................................................................................. 297 Section 7.02. Contingency Release ......................................................................................................................... 3028 Section 7.03. Task Orders ......................................................................................................................... 3129 ARTICLE 8. ETHICS .......................................................................................................... 320 Section 8.01. Unlawful Consideration Prohibited ................................................. 320 Section 8.02. Conflicts of Interest. .................................................................... 330 A. Compliance with the Political Reform Act. ....................................... 330 B. Compliance with Government Code § 1090 ................................... 331 C. Requirements Applicable to Consultants ......................................... 331 ARTICLE 9. DEFINITIONS ............................................................................................... 331 ARTICLE 10. MISCELLANEOUS ................................................................................ 375 Section 10.01. Noncompliance ............................................................................... 375 Section 10.02. Effective Date ........................................................................... 375 Section 10.03. Repeal of Ordinance No. OCSD-427 ..................................... 375 Section 10.04. Certification and Publication .................................................. 375 OCSD-52OC SAN-XX-6 NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District does hereby ORDAIN: ARTICLE 1. GENERAL PROVISIONS Section 1.01. Purpose and Scope A. Purpose. This Ordinance is intended to: (1) Comply with certain provisions of State law requiring the Sanitation District to adopt written purchasing procedures; (2) Ensure that the Sanitation District complies with State law governing the award of Contracts for Goods, Services, and Public Works Projects; (3) Establish procedures to ensure that the Sanitation District obtains quality goods and competent services at the best price and/or the best value; (4) Delegate certain spending authority to Sanitation District employees in the interest of efficient administration; (5) Ensure that purchasing decisions are transparent for the public; and (6) Ensure that Contracts are awarded through a process that is fair to prospective Contractors and in the best interests of the Sanitation District. B. Scope. This Ordinance governs the purchase of Goods, Services and the award of Contracts for Public Works Projects. Section 1.02. Title This Ordinance may be referred to as the Sanitation District's "Purchasing Ordinance." Section 1.03. Definitions As used throughout this Ordinance, the terms set forth in Article 9 shall have the meanings as defined therein, unless the context in which they are used clearly requires a different meaning, or a different definition is prescribed for a particular Article or provision. Section 1.04. Rules and Guidelines The General Manager shall implement the requirements of this Ordinance through policies, rules, and guidelines governing the purchase of Goods and Services, and the award of Contracts for Public Works Projects. OCSD-52OC SAN-XX-7 Section 1.05. Budgeted Funds No Contract for the purchase of Goods, Services, or Public Works Projects shall be awarded unless and until the General Manager identifies funds in the current budget that are allocated to the purchase. Section 1.06. The Purchasing Manager A. Duties. Consistent with the provisions of this Ordinance, the Purchasing Manager shall: (1) Conduct the procurement of all Goods, Services, and Public Works Projects purchased by the Sanitation District; and receive from Contractor all bids, proposals or other solicitation results; (2) Supervise and control inventories of supplies and materials. (3) Determine the type of procurement, term of the contract including number of renewals and any other contractual provisions necessary and in the best interest of the Sanitation District. B. Requests for Procurement. When a Department desires to procure Goods and/or Services, the Department Director shall file a written Requisition, in advance of a procurement process, with the Purchasing Manager. The Requisition shall describe the Goods and/or Services to be acquired. Public Works procurements require a complete Engineering Budget Approval Form or equivalent document. Section 1.07. Exceptions to Competitive Selection Depending on the nature of the Contract and/or the circumstances, certain provisions of this Ordinance require that Contracts for Goods and/or Services be awarded based on Competitive Sealed Bids or Competitive Sealed Proposals. This Section 1.07 establishes certain general exceptions to competitive selection requirements for the procurement of Goods and Services. The exceptions set forth in this Section 1.07 do not apply to the award of Contracts for the construction of Public Works Projects. A. Sole Source Procurement. Notwithstanding any other provision of this Ordinance, a Contract for Goods and/or Services may be awarded based on Sole Source Procurement, without soliciting bids or proposals as might otherwise be required, if the General Manager or his designee determines in writing that it is in the best interest of the Sanitation District to award the Contract because the Goods and/or Services are (1) of a unique nature based on their quality, durability, availability, fitness or qualifications for a particular use; or (2) only available from one source. OCSD-52OC SAN-XX-8 B. Emergency Procurement. Notwithstanding any other provision of this Ordinance, a Contract for Goods and/or Services may be awarded through Negotiated Procurement, without soliciting bids or proposals as might otherwise be required, if the General Manager or his designee determines in writing that the Sanitation District urgently needs the Goods and/or Services in order to respond effectively to an emergency. For purposes of this Section 1.07, emergency procurements are those purchases that are required to prevent immediate interruption or cessation of necessary services or to safeguard life, property, or the public health and welfare. In addition, emergency procurements as used in this Section also include critical time sensitive purchases where time is of the essence, and the Sanitation District does not have sufficient time to solicit bids or proposals. For emergency procurements greater than $100,000, the General Manager shall obtain the concurrence of the Chair of the Sanitation District's Board of Directors or, if the Chair is unavailable, the Vice Chair, and such action shall be ratified by the Board of Directors at its next regular meeting. OCSD-52OC SAN-XX-9 Section 1.08. Evaluation Committees Evaluation committees convened in connection with procurements under this Ordinance shall generally be composed of full-time Sanitation District employees. In exceptional circumstances, however, the General Manager may appoint one or more persons not employed by the Sanitation District to an evaluation committee if the General Manager determines that (1) evaluating proposals in connection with a particular procurement requires specialized expertise not available among Sanitation District employees; (2) the procurement will impact another agency, and that agency desires to place a representative on the evaluation committee; or (3) it is otherwise in the Sanitation District's interest to do so. Section 1.09. Severability If any provision of this Ordinance, or any application thereof to any person or circumstance, is held invalid, such invalidity shall not affect any other provision of this Ordinance or application to any person or circumstance which can be given effect without the invalid provision or application. The provisions of this Ordinance are declared to be severable. ARTICLE 2. GOODS AND SERVICES Section 2.01. Purpose and Scope A. Purpose. California Government Code Sections 54202 et seq. requires the Sanitation District to adopt written policies and procedures, including bidding requirements, governing the purchase of Goods and Services. This Article is intended to comply with Section 54202. B. Scope. The provisions of this Article 2 apply to Contracts for the purchase of Goods and Services other than Contracts for Professional Services (governed by Article 3) Professional Design Services (governed by Article 4), and Contracts for Public Works Projects (governed by Article 5). Section 2.02. Selection Process Subject to the exceptions set forth in Section 2.03, the award of Contracts for the OCSD-52OC SAN-XX-10 purchase of Goods and Services shall be based on the competitive procurement methods set forth below. A. Competitive Sealed Bids. For each procurement, the Purchasing Manager shall: (1) Publish a Notice Inviting Bids that contains (a) a description of the Goods and/or Services required, (b) a description of the selection process, (c) bidder's security requirement, if applicable, (d) performance bond requirements, if applicable, and (e) such provisions, renewals, terms, and conditions, consistent with this Ordinance, that the Purchasing Manager determines are necessary, desirable, and/or advantageous to the Sanitation District; (2) Receive the Competitive Sealed Bids publicly at the time and place designated in the Notice Inviting Bids, and record the amount of each bid; and (3) Determine whether the bids are responsive to the Notice Inviting Bids. (4) Award: After the bids are opened, take one of the following actions: (a) Award the Contract to the lowest Responsive and Responsible Bidder; (b) Reject any and all bids presented and/or re-advertise the bid; or (c) Declare that the Goods and/or Services may be acquired at a lower cost by negotiation in the open market and authorize the procurement in that manner. B. Equal Bids. If two or more Responsible Bidders submit the same lowest bid, the District may, in its discretion, accept either bid or a lower bid, if any, as may be obtained from one of the bidders through negotiation.If the Sanitation District determines that there has been a tie for lowest responsive bid between two or more bids received, which are for the same total amount or unit price and in all other respects equal, then the Sanitation District may award the bid based on Local Preference. If neither or both bidders are Local Businesses, the Sanitation District shall award the bid based on the drawing of lots. C. Multi-Step Sealed Bidding. The Purchasing Manager may determine that a prequalification process is necessary and desirable for a particular procurement. The multi-step sealed bidding process requires the Purchasing Manager to (1) issue a Request for Qualifications requesting the submission of qualifications; and (2) issue a subsequent Notice Inviting Bids for priced offers from those Contractors whose initial submissions were deemed qualified under the criteria set forth in the initial OCSD-52OC SAN-XX-11 Request for Qualifications. Award under this process shall be based on the lowest Responsive and Responsible Bidder. D. Request for Proposals. If the Purchasing Manager determines in writing that the Competitive Sealed Bids procedure is not practical and/or not advantageous for the Sanitation District in a particular case, one or more Contracts subject to this Article may be awarded based on Competitive Sealed Proposals. The Request for Proposals process may be used (1) for Goods and/or Services that prove difficult to quantify or describe, where proposers are provided the opportunity to offer different approaches or solutions; and/or (2) for critical, routine or recurring goods or services that require consideration of the broadest possible range of competing services, products and materials available, fitness of purpose, performance reliability, standardization, life cycle costs, delivery timetables, reliable supply, support logistics, diversification of available sources and/or other similar factors in addition to the price in the award of these contracts. Award under this process shall be based upon criteria that provide the best value for the Sanitation District, wherein best value is not solely determined by price. Section 2.03. Exceptions A. Small Procurements. (1) Procurements of $10,000 or Less. Contracts subject to this Article 2 with an estimated value of $10,000 or less may be awarded without Competitive Sealed Bids if the Purchasing Manager determines that a Competitive Sealed Bids process would not result in a lower overall cost to the Sanitation District. (2) Procurements of $50,000 or Less. Contracts subject to this Article 2 with an estimated value of $50,000 or less may be awarded by (a) soliciting at least three bids from identified vendors, and (b) awarding the Contract to the lowest Responsive and Responsible Bidder. If the Purchasing Manager cannot obtain at least three bids, the Contract may be awarded to the lowest Responsive and Responsible Bidder as long as the Purchasing Manager determines that the bid amount is fair and reasonable. (3) Piecemealing Prohibited. Procurements shall not be artificially divided into different individual Contracts so as to keep each Contract amount below one of the monetary thresholds set forth in this Part A. (4)(3) B. Cooperative Purchases. OCSD-52OC SAN-XX-12 When another public agency or government purchasing cooperative organization has awarded a Contract for Goods and/or Services based on Competitive Sealed Bids or Competitive Sealed Proposals, and the agency or organization followed a process substantially similar to the process described in Section 2.02, the Sanitation District may acquire Goods and/or Services under that Contract without obtaining Competitive Sealed Bids or Competitive Sealed Proposals. The Sanitation District may enter into Contracts with other public agencies, government purchasing cooperative organizations within the United States, and/or Contractors for this purpose. C. Critical Time-Sensitive Procurements. The Purchasing Manager may purchase Goods and/or Services through Negotiated Procurement if the Purchasing Manager determines that time is of the essence in the purchase of the Goods and/or Services. For critical time- sensitive procurements valued at more than $100,000, the General Manager shall obtain the concurrence of the Chair of the Sanitation District's Board of Directors or, if the Chair is unavailable, the Vice Chair. D. Renewals. The Purchasing Manager may exercise any options to renew as may be included in existing Contracts without observing the bidding procedures prescribed in Section 2.02 and Section 2.03 E. Sole Source and Emergency Procurements. A Contract for the purchase of Goods and/or Services may be awarded without soliciting competitive bids if any of the exceptions set forth in Section 1.07 apply. F. Master Contracts; Maintenance and Repair Services Less Than or Equal to $300,000. The Purchasing Manager may purchase maintenance and repair Services estimated to cost less than or equal to $300,000 through the master contract procedures set forth below. (1) Request for Qualifications. If a master contract is let for maintenance and repair Services, then at least once every three (3) years, the Purchasing Manager shall prepare and distribute a Request for Qualifications for the maintenance and repair Services required by the Sanitation District. Each Request for Qualifications shall describe the selection criteria that will be used to determine whether suppliers or firms are eligible for the prequalified list. The Request for Qualifications shall require the following information, at a minimum, from proposers: (a) The firm's demonstrated competence and specialized expertise OCSD-52OC SAN-XX-13 necessary to perform the type of Service needed; (b) The experience, training, and skills of the key personnel that will perform and manage the work for the Sanitation District; (c) The firm's capacity and resources to perform the Services required within the specified period of time. The firm must demonstrate that it will provide a sufficient number of qualified staff, equipment, and facilities as applicable. (2) Evaluation Committee. The Purchasing Manager shall convene an evaluation committee to evaluate the responses to each Request for Qualifications. The Purchasing Manager shall chair the committee, and the Director of the Department requesting the Procurement shall appoint the remaining members. Each evaluation committee shall determine whether each supplier or firm has the demonstrated competence and qualifications to provide the Services necessary for the satisfactory performance of the Services required. (3) Lists. Based on the recommendations of the evaluation committee, with the concurrence of the Department Director, the Purchasing Manager shall establish a list of at least three (3) prequalified Contractors. If the Sanitation District uses its best efforts to outreach to potential Contractors, and cannot obtain the minimum of three (3) prequalified Contractors, the Purchasing Manager shall document the outreach and responses received. The Sanitation District may then proceed with award to fewer than three (3) prequalified firms. Each list shall be used for a maximum of three (3) years. No later than three (3) years after establishing a prequalified list, the Purchasing Manager must issue a new Request for Qualifications and establish a new list, iflist if such goods and/or services are required. (4) Master Contract. Master Contracts with firms on the prequalified list shall be awarded by the Board of Directors in the amount not to exceed the program budget approved by the Board of Directors. The original term of such Contracts shall be for one (1) year, with an option to renew each Contract for up to two (2) additional one-year renewal periods. (5) Task Orders. The Department Director shall notify the Purchasing Manager when Services subject to this subsection 2.03(F) are required for a maintenance or repair project. Proposals shall be solicited from all the firms on the prequalified list and one of the firms shall be selected pursuant to the process set forth in Section 2.02. Individual Task Orders in an amount not to exceed $300,000 will be awarded for each project. ARTICLE 3. PROFESSIONAL SERVICES OCSD-52OC SAN-XX-14 Section 3.01. Purpose and Scope A. Purpose. This Article 3 is intended to ensure that the Sanitation District retains obtains Professional Services at fair and reasonable prices based on demonstrated competence and the professional qualifications necessary for the satisfactory performance of the services required. B. Scope. The provisions of this Article 3 apply to the award of Contracts for Professional Services and incidental services that members of a Professional Service firm, and those in their employ, may logically perform. The provisions of this Article 3 do not apply to the award of Contracts for Professional Design Services (governed by Article 4). Section 3.02. Selection Process Contracts for Professional Services shall be awarded pursuant to the following procedures: A. Request for Proposals. The Purchasing Manager shall prepare a Request for Proposals in consultation with the Director of the Department requesting the Procurement. The Purchasing Manager, with the concurrence of the Director of the Department requesting the Procurement, may select a limited number of Professional Service firms to receive the Request for Proposals. The Purchasing Manager may issue a Request for Qualifications to prospective Contractors as a means of identifying prospective recipients. The Purchasing Manager may publish notice of the Request for Proposals or Request for Qualifications. B. Evaluation and Ranking of Proposals. All responsive proposals shall be evaluated and ranked, from most qualified to least qualified, based on each firm's demonstrated competence and professional qualifications necessary for the satisfactory performance of the services required. The Purchasing Manager may establish a committee to conduct the evaluation. The Purchasing Manager or evaluation committee, if any, may discuss each proposalcommunicate with its a propsal’sproposal’s author to seek clarification or otherwise obtain relevant information. C. Negotiation of Contract. OCSD-52OC SAN-XX-15 The Purchasing Manager shall negotiate a Contract with the firm deemed to be most qualified at a price that the Purchasing Manager, with the concurrence of the Director of the Department requesting the Procurement, deems to be fair and reasonable. If the Purchasing Manager determines that it is in the best interest of the Sanitation District to enter into Contracts with two or more firms, the Purchasing Manager shall negotiate with the desired number of firms starting with the most qualified. The Purchasing Manager shall proceed down the list from most to least qualified until he or she has concluded negotiations with the desired number of firms at fair and reasonable prices. The Sanitation District may, in its sole discretion, reject all proposals. Section 3.03. Exceptions A. Sole Source and Emergency Procurements. A Contract for Professional Services may be awarded without soliciting Competitive Sealed Proposals if the Purchasing Manager makes one of the determinations set forth in Section 1.07. B. Contractors Reporting to the Board. The provisions of this Article 3 shall not apply to the retention of Professional Service firms or individuals that are selected by the Board and report directly to the Board. For such Contracts, the Board shall determine the method of selection, consistent with the requirements of applicable law. C. Procurements of $10,000 or less. Contracts subject to this Article 3 with an estimated value of $10,000 or less may be awarded without following the Request for Proposal/Request for Qualifications process if the Purchasing Manager determines that an RFP/RFQ process would not result in a lower overall cost to the Sanitation District. D. Master Contracts; Professional Services Less Than or Equal to $100,000. The Purchasing Manager may purchase Professional Services estimated to cost less than or equal to $100,000 through the master contract procedures set forth in Section 2.03(F), provided that individual task orders shall not exceed $100,000 for each project. E. Master Contracts: Professional Services Qualified Lists. The Purchasing Manager may establish qualified lists of Professional Services OCSD-52OC SAN-XX-16 through the master contract procedures set forth below. (1) Request for Qualifications. If a master contract is let for Professional Services, the Purchasing Manager shall prepare and distribute a Request for Qualifications for the Professional Services required by the Sanitation District. Each Request for Qualifications shall describe the selection criteria that will be used to determine whether firms are eligible for the qualified list. The Request for Qualifications shall require the following information, at a minimum, from proposersfirms: (a) The firm's demonstrated competence and specialized expertise necessary to perform the type of Service needed; (b) The experience, training, and skills of the key personnel that will perform and manage the work for the Sanitation District; (c) The firm's capacity and resources to perform the Services required within the specified period of time. The firm must demonstrate that it will provide a sufficient number of qualified staff, equipment, facilities or other requirements as applicable. (2) Evaluation Committee. The Purchasing Manager shall convene an evaluation committee to evaluate the responses to each Request for Qualifications. The Purchasing Manager shall chair the committee, and the Director of the Department requesting the Procurement shall appoint the remaining members. Each evaluation committee shall determine whether each firm has the demonstrated competence and qualifications to provide the Services necessary for the satisfactory performance of the Services required. (3) Lists. The Purchasing Manager in conjunction with the Department Director shall determine the number of firms needed on the list based on anticipated work. If the Sanitation District uses its best efforts to outreach to potential Contractors, and cannot obtain the minimum number of firms specified in the RFQ, the Purchasing Manager shall document the outreach efforts and responses to the procurement file. The Sanitation District may proceed with award to fewer firms. No later than three five (53) years after establishing a qualified list, the Purchasing Manager must issue a new Request for QualificationsRFQ and establish a new list, if such services are still required. (4) Master Contract. Master Contracts with firms on the qualified list shall be awarded by the Board of Directors in the amount not to exceed the program budget approved by the Board of Directors. The original term of such Contracts shall be for one three (31) years, with an option to renew each Contract for up to two (2) additional one-year renewal periods. (5) Task Orders. The Department Director shall notify the Purchasing Manager when Services are subject to this subsection 3.03(E). The Purchasing Manager shall follow a competitive selection process or cycle through on a rotation basis to one firm at a time. The Request for Qualifications shall specify any competitive process and/or rotation selection process, including selection of a single firm due to a unique qualification or circumstance, subject --- -- OCSD-52OC SAN-XX-17 to the best interests of the Sanitation District in any particular case. F. Renewals. The Purchasing Manager may exercise any options to renew as may be included in existing Contracts without initiating the procurement procedures prescribed in Section 3.02 and Section 3.03. ARTICLE 4. PROFESSIONAL DESIGN SERVICES Section 4.01. Purpose and Scope A. Purpose. This Article 4 is intended to ensure that the Sanitation District retains obtains Professional Design Services at fair and reasonable prices based on demonstrated competence and the professional qualifications necessary for the satisfactory performance of the services required. B. Scope. This Article 4 applies to the selection of Contractors for Professional Design Services. Section 4.02. Selection Process A. Competitive Selection. All Professional Design Services estimated to be greater than $300,000 shall be awarded based on Competitive Sealed Proposals. All Professional Design Services with an estimated value of $300,000 or less shall have a separate selection process based upon a master contract procedure whereby the Sanitation District shall solicit Competitive Sealed ProposalsStatements of Qualifications and award one or more master contracts not to exceed $600,000 per year. B. Professional Design Services Greater Than $300,000. The requirements set forth in this subsection 4.02(B) shall apply to the purchase of OCSD-52OC SAN-XX-18 Professional Design Services estimated to cost more than $300,000. (1) Annual List. Each Director of a Department that utilizes Professional Design Services shallmay file annually with the Purchasing Manager a list of specific disciplines for which Professional Design Services may be required. The Purchasing Manager may from time to time prepare and distribute a Request for Qualifications for the professional disciplines or project design services required by the Sanitation District subject to this Part B. For each Request for Qualifications issued, the Purchasing Manager shall evaluate the responses, identify qualified firms, and maintain the responses of the qualified firms on file to be used in the Request for Proposals process described below. (2) Request for Proposals. The Purchasing Manager, in consultation with the Director of Engineering, shall issue a Request for Proposals for the Professional Design Services requested. Multiple projects may be bundled into one Request for Proposals such that multiple Contract awards may result from one Request for Proposals and selection may be based upon specialized services. (3) Content of Request for Proposals. Each Request for Proposals shall describe the Professional Design Services required and the selection process. Each Request for Proposals shall also set forth such provisions, terms, and conditions, consistent with this Ordinance, that the Purchasing Manager, in consultation with the Director of Engineering, determines are necessary, desirable, and/or advantageous to the Sanitation District. Each Request for Proposals shall require that proposals contain, at a minimum, the following information: (a) The firm's qualifications for performing the proposed work. (b) The firm's relevant experience and performance on similar projects. (c) The firm's ability to complete the work within the time allotted. (d) The personnel that will be assigned to the project. (e) The estimated number of hours that each member of the team will spend on the project. (f) A statement that the firm's engagement for the project would not create a conflict of interest. (g) Any other information required to properly evaluate the firm's qualifications and experience with similar projects. (h) Proposals for construction management services shall demonstrate that the designated personnel have expertise and experience in construction project design review and evaluation, construction mobilization and supervision, bid evaluation, project scheduling, cost- benefit analysis, OCSD-52OC SAN-XX-19 claims review and negotiation, and general management and administration of a construction project. (i) A fee proposal, based on the method of compensation specified in the Request for Proposal, and an estimate of total fees, enclosed in a separately sealed envelope. Commonly used methods of compensation for Professional Design Service Contracts include (i) cost plus fixed fee with a maximum amount; (ii) per diem rate(s) with a maximum amount; (iii) a lump sum (fixed) fee; and (iv) cost of time and materials. (4) Publication of Request for Proposals. The Sanitation District shall publicize publish each Request for Proposals by two or more of the following methods: (a) Advertising in print or electronic media; and/or (b) Mailing the Request for Proposals to each Contractor firm that has been identified as a qualified firm as set forth in subsection 4.02(B)(1)who has submitted a Statement of Qualifications; and/or (c) Mailing the Request for Proposals to each vendor registered in the applicable category, based on the services identified in the Request for Proposals, in the Sanitation District's on-line vendor database. (5) Staff Evaluation Committee. The Purchasing Manager shall convene an evaluation committee to evaluate the proposals. (a) Management and Composition. The Purchasing Manager shall serve as chair of the evaluation committee. The Director of Engineering shall appoint the other members of the committee. (b) Ranking of Firms. All proposals shall be evaluated and ranked, from most qualified to least qualified, based on each firm's demonstrated competence and professional qualifications necessary for the satisfactory performance of the services required. (c) Interviews. At its discretion, the evaluation committee may interview one or more of the firms that have submitted proposals. (d) Report. The evaluation committee shall prepare a written report for the Purchasing Manager and the Director of Engineering setting forth, at a minimum, the ranking of firms from most qualified to least qualified. (6) Negotiations. The Purchasing Manager and the Director of Engineering shall negotiate a Contract with the firm that the evaluation committee deems to be most qualified. Fee proposals shall not be opened until the most qualified highest ranked proposer is identified. Only the highest rankedmost qualified proposer's fee proposal will be opened. If those negotiations fail, the OCSD-52OC SAN-XX-20 Purchasing Manager shall negotiate with the second most qualified firm, and so on, until an agreement is reached. The Purchasing Manager shall proceed down the list from most to least qualified until he or she has concluded negotiations with the desired number of firms at fair and reasonable prices. The Director of Engineering shall make a written determination that the negotiated fee is fair and reasonable. All unopened price proposals will be returned to the firm that submitted it. The Sanitation District may, in its sole discretion, reject all proposals. C. Master Contracts; Professional Design Services Less Than or Equal to $300,000. The requirements set forth in this subsection 4.02(C) shall apply to the purchase of Professional Design Services estimated to cost less than or equal to $300,000 for each individual project. (1) Request for Qualifications. At least once every fivethree (53) years, the Purchasing Manager shall prepare and distribute a Request for Qualifications for each professional discipline or project design service required by the Sanitation District subject to this subsection. Each Request for Qualifications shall describe the selection criteria that will be used to determine whether firms are eligible for the prequalified list. The Request for Qualifications shall require the following information, at a minimum, from proposersfirms: (a) The firm's demonstrated competence and specialized expertise necessary to perform the type of services needed; (b) The education, experience, training, and skills of the key personnel that will perform and manage the work for the Sanitation District; (c) The firm's capacity and resources to deliver the services required within the specified period of time, including but not limited to a sufficient number of qualified staff, computer hardware, computer software, special equipment and facilities as applicable; and (d) The proximity of the firm's office(s) to the Sanitation District, the specific location of key personnel, and the firm's experience and familiarity with the operation of local government. (2) Evaluation Committee. The Purchasing Manager shall convene an evaluation committee to evaluate the responses to each Request for Qualifications. The Purchasing Manager shall chair the committee, and the Director of Engineering shall appoint the remaining members. Each evaluation committee shall determine whether each firm has the demonstrated competence and professional qualifications necessary for the satisfactory performance of the services required. (3) Lists. Based on the recommendations of the evaluation committee, with the concurrence of the Director of Engineering, the Purchasing Manager shall OCSD-52OC SAN-XX-21 establish a list of prequalified Contractors within each discipline/category. The RFQ will identify the number of anticipated firms on the prequalified list. The Purchasing Manager in conjunction with the Director of Engineering shall determine the number of firms needed on the list based on anticipated work. If the Sanitation District cannot obtain the minimum number of firms specified in the RFQ, the Purchasing Manager shall record the outreach efforts and responses to the procurement file. The Sanitation District may proceed with award to fewer firms. Each list shall be used for a maximum of 5 (five)3 years. No later than 5 (five)3 years after establishing a prequalified list for each service, the Purchasing Manager shall issue a new Request for Qualifications and establish a new list if such services are still required. (4) Master Contract. Master Contracts with firms on the prequalified list shall be awarded by the Board of Directors in an amount not to exceed $600,000 per year. The original term of such Contracts shall be for one 3 (three) years, with an option to extend each Contract for up to two (2) additional one-year renewal periods. (5) Task Orders. The Director of Engineering shall notify the Purchasing Manager when Professional Design Services subject to this subsection are required for a project. Proposals shall be solicited, with price proposals submitted in a separate sealed envelope, from at least two firms on the prequalified list and one of the firms shall be selected pursuant to the process set forth in subsections 4.02(B)(5) and 4.02(B)(6). In determining which firms will be invited to submit proposals, the Purchasing Manager shall follow the selection or rotation process, if any, set forth in the Request for QualificationsProposals, subject to the best interests of the Sanitation District in any particular case. Individual Task Orders in an amount not to exceed $300,000 will be awarded for each project. The Director of Engineering shall make a written determination that the negotiated fee is fair and reasonable for the task. For Task Orders estimated to cost $25,000 or less, the Director of Engineering, with concurrence of the Purchasing Manager, may solicit a proposal from 1 (one) firm on the prequalified list. The price proposal shall be submitted in a separate sealed envelope. The Director of Engineering shall issue a written determination that (i) identifies the basis for selection, including but not limited to the specialized qualifications of the 1 (one) firm, and (ii) states that the negotiated price is fair and reasonable. Individual Task Orders in an amount not to exceed $300,000 will be awarded for each project. The Director of Engineering shall make a written determination that the negotiated fee is fair and reasonable for the task. Section 4.03. Exceptions A. Sole Source and Emergency Procurements. Contracts for Professional Design Services may be awarded without soliciting Competitive Sealed Proposals if the Purchasing Manager makes one of the determinations set forth in Section 1.07. OCSD-52OC SAN-XX-22 B. Continuation ofAdditional Services. A new contract for additional services related to work already performed under an existing Contract for Professional Design Services may be awarded without observing the bidding procurement procedures prescribed in subsection 4.02(B) or subsection 4.02(C), as applicable. In connection with any such new contract, the Director of Engineering shall determine in writing that (1) it is in the Sanitation District's best interests to have the original firm perform additional, related services, and (2) the negotiated price is fair and reasonable. C. Procurements of $10,000 or less. Contracts subject to this Article 4 with an estimated value of $10,000 or less may be awarded without following the Request for Proposal/Request for Qualifications process if the Purchasing Manager determines that an RFP/RFQ process would not result in a lower overall cost to the Sanitation District. ARTICLE 5. PUBLIC WORKS PROJECTS Section 5.01. Purpose and Scope A. Purpose. This Article 5 is intended to implement state statutes that govern the Sanitation District's award of construction Contracts for Public Works Projects. B. Scope. This Article 5 applies to the Sanitation District's award of Contracts for the construction of Public Works Projects exceeding $35,000 other than sewerage maintenance or repair projects pursuant to Public Contract Code section 20783 (Projects estimated at $35,000 or less, and sewerage maintenance or repair projects, may be processed pursuant to Article 2). Section 5.02. Selection Process A. Design-Bid-Build. (1) Competitive Sealed Bids. For projects subject to Public Contracts Code section 20783, the Sanitation District shall select firms for Public Works OCSD-52OC SAN-XX-23 Projects pursuant to the process described in this subsection 5.02(A). (a) Notice Inviting Bids. For each prospective Contract, the Purchasing Manager shall publish a nNotice iInviting bBids as required by Public Contract Code Section 20783. (i) Manner of Publication. Each nNotice iInviting bBids shall be published in a newspaper of general circulation at least 10 days before the date for the opening of bids consistent with the requirements set forth in Public Contracts Code section 20783, as may be amended or superseded from time to time. Additionally, the Sanitation District may publish each notice inviting bids , on industry bulletin boards, the Sanitation District’s on-line vendor database, and/or on the Sanitation District's website. at least 10 days before the date for the opening of bids consistent with the requirements set forth in Public Contracts Code section 20783, as may be amended or superseded from time to time. (i) (ii) Contents. Each Notice Inviting Bids shall: 1. Establish a deadline for the receipt of bids that is at least 10 calendar days after the first publication of the Notice Inviting Bids. 1. 2. Provide that the Sanitation District, in its sole discretion, may reject any and all bids; 3. Set forth a procedure that shall be followed in the event of a tie between the lowest Responsive and Responsible bidders; 4. Require bidders to post a bidder's security; 5. State that if a Contract is awarded to the bidder, a payment bond is required pursuant to Civil Code section 9550, as well as a performance bond; 5. 6. Contain detailed plans and specifications for the project. Subject to the exceptions set forth in subsection 5.03(B), the specifications shall not call for a designated material, product, thing, or service by specific brand or trade name unless the Sanitation District complies with the requirements under California Public Contract Code section 3400 et seq.; and OCSD-52OC SAN-XX-24 7. Contain whatever provisions, consistent with this Ordinance, the Purchasing Manager determines are necessary, desirable, and/or advantageous to the Sanitation District. (b) Bid Opening. The Purchasing Manager shall open the bids publicly in the presence of one or more witnesses at the time and place designated in the Notice Inviting Bids. A web-based system may be used in lieu of in person bid opening. The Purchasing Manager shall record the amount of each bid together with the name of each bidder. This record, and each bid, shall be considered public records and shall be available to the public at the point in time specified in the Notice Inviting Bids and consistent with the Public Records Act. (c) Rejection of Bids. The Sanitation District may reject all bids received for a particular project and: (i) Re-advertise for bids; or (ii) Authorize construction of the project through a Negotiated Procurement of day labor and/or materials or supplies, if the Board adopts a resolution by a four-fifths vote declaring that (i) the work can be performed more economically by day labor, and/or (ii) the materials or supplies can be obtained at a lower price in the open market. (d) No Bids. If the Sanitation District does not receive any responsive and responsible bids for a particular project, the Sanitation District's Board of Directors may authorize the Purchasing Manager to conduct a Negotiated Procurement, and present his or her recommendation to the Board for approval. (e) Award to Lowest Responsive and Responsible Bidder. Unless the Sanitation District rejects all bids, the Contract shall be awarded to the lowest Responsive and Responsible Bidder. If two or more Responsible Bidders submit the same lowest bid, the District may, in its discretion, accept either bid or a lower bid, if any, as may be obtained from one of the lowest bidders through negotiation. If the Sanitation District determines that there has been a tie for lowest responsive bid between two or more bids received, which are for the same total amount or unit price and in all other respects equal, then the Sanitation District may award the bid based on Local Preference. If neither or both bidders are Local Businesses, the Sanitation District shall award the bid based on the drawing of lots. If the lowest Responsive and Responsible Bidder refuses to enter into a Contract, then the lowest Responsive and Responsible Bidder shall forfeit its bidder's security, and the Contract shall be awarded to the next lowest Responsive and Responsible Bidder. OCSD-52OC SAN-XX-25 B. Design-Build. As may be authorized by the Public Contract Code or other statute, the Sanitation District may utilize a design-build selection process for the award of Public Works Contracts. C. Prequalification. The Purchasing Manager may limit the field of prospective bidders for Public Works Contracts by prequalifying Contractors pursuant to California Public Contract Code Section 20101 and the requirements of this subsection 5.02(C). Prequalification shall only be required when the Purchasing Manager or the Director of Engineering determines that prequalification is necessary or desirable. The Purchasing Manager may (i) prequalify a list of Contractors for the right to bid on any specific Public Works Project, and/or (ii) prequalify lists of Contractors for the right to bid on unspecified projects of a certain type or size pursuant to Public Contracts Code section 20101(c). If the Purchasing Manager elects to prequalify lists of Contractors for the right to bid on unspecified projects of a certain type or size, he or she shall conduct a prequalification process quarterly, and all qualifications shall be valid for one year. For each prequalified list of either type, the Purchasing Manager shall evaluate and prequalify Contractors pursuant to the following procedures: (1) Questionnaires and Rating Criteria. The Purchasing Manager shall develop a questionnaire and rating criteria for each prequalification. All criteria shall be relevant and objective. The Purchasing Manager may rely on the Department of Industrial Relations model guidelines, questionnaires, and forms, and/or establish additional or modified criteria. (2) Statements of Qualifications. The Purchasing Manager shall solicit Statements of Qualifications from prospective bidders. (3) Evaluation Committee. The Purchasing Manager shall convene an evaluation committee to evaluate each Statement of Qualifications. The Purchasing Manager shall chair the committee, and the Director of Engineering shall appoint the remaining committee members. The evaluation committee shall review each Statement of Qualifications, rate the Contractors according to their qualifications and objective criteria, and determine which Contractors are qualified and which Contractors are not qualified. (3) (4) Notice of Determination. When the evaluation committee completes its review, the Purchasing Manager shall send each Contractor written notice (4) of the committee's determinations regarding that Contractor. If the evaluation committee determines that a Contractor is not qualified, the written notice shall also set forth the basis for that determination and any relevant supporting evidence that the evaluation committee considered. OCSD-52OC SAN-XX-26 (5) Appeal Process. (a) Notice of Appeal. Any Contractor may appeal to the General Manager any determination of the evaluation committee, including any rating assigned to the Contractor and any decision to disqualify the Contractor, by filing a written notice of appeal within seven (7) working days after the Purchasing Manager mails the notice described in subsection 5.02(C)(4). (b) Hearing. Within five (5) working days of the receipt of an appeal, the General Manager, or a designee of the General Manager who has not been involved in the evaluation of qualifications of Contractors for the project, shall conduct a hearing on the appeal. During the hearing, the affected Contractor or subcontractor shall have the opportunity to rebut any evidence used as a basis for disqualification and to present evidence to the General Manager or the General Manager's designee as to why the prospective bidder should be found qualified. (c) Decision. Within five (5) working days of the conclusion of the hearing, the General Manager or the General Manager's designee shall issue a written decision on the appeal. The decision of the General Manager or the General Manager's designee shall be final. Section 5.03. Exceptions A. Emergencies and Calamities. (1) The provisions of this subsection 5.03(A) apply in the event of an emergency or calamity involving a sudden, unexpected occurrence that poses a clear and imminent danger requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services. In the event of such an emergency or calamity, the Sanitation District may, through Negotiated Procurement, award Contracts to repair or replace facilities, take any directly related and immediate action required by the emergency or calamity, and procure the necessary equipment, services, and supplies for those purposes. (2) The General Manager may take the actions described in subdivision (1) above, with the concurrence of the Chair of the Board of Directors and/or the Vice Chair, without obtaining prior approval of the Sanitation District's Board of Directors. In taking any such action, the General Manager shall follow the procedures set forth in Public Contracts Code Section 22050. (3) In the alternative, the Sanitation District's Board of Directors may, by resolution adopted by a four-fifths vote, take the actions described in subdivision (3) above. In taking any such action, the Sanitation District shall follow the procedures set forth in Public Contracts Code 22050. OCSD-52OC SAN-XX-27 B. Specification of Brand or Trade Name. Notwithstanding subsection 5.02(A)(1)(a)(ii)(6), the specifications for a Public Works Contract may call for a designated material, product, thing, or service by specific brand or trade name without inserting the words "or equal" if the Sanitation District complies with the requirements of the California Public Contract Code section 3400 et seq. The General Manager is authorized to make the findings required under California Public Contract Code section 3400 et seq. The Notice Inviting Bids or Request for Proposals shall state that a particular material, product, thing, or service is necessary or desirable for any of the following purposes: (1) In order that a field test or experiment may be made to determine the product's suitability for future use; (2) In order to match other products in use on a particular public improvement either completed or in the course of completion; (3) In order to obtain a necessary item that is only available from one source; (4) In order to respond to an emergency declared by the Sanitation District, but only if the declaration is approved by a four-fifths vote of the Sanitation District's Board of Directors; or (5) In order to respond to an emergency declared by the state, a state agency, or political subdivision of the state, but only if the facts setting forth the reasons for the finding of the emergency are contained in the public records of the Sanitation District. ARTICLE 6. PROTESTS The Sanitation District shall afford Interested Parties an opportunity to protest the solicitation of bids and proposals and the award of contracts as set forth in this Article 6. The General Manager shall adopt detailed protest procedures consistent with this Article 6. The protest procedures governing any particular procurement shall be set forth in the Notice Inviting Bids or the Request for Proposals, as applicable. Section 6.01. Solicitation Protests A. Interested Parties may file a Solicitation Protest Statement with the Purchasing Manager on the grounds that a free and open competition has not taken place, or cannot take place, and/or that a particular specification or requirement is impractical, unduly restrictive, or ambiguous. Each Notice Inviting Bids/Invitation for Bids and Request for Proposals shall identify the date and time that the Solicitation Protest Statement is due, the information required to be included in the Solicitation Protest Statement, the evaluation process, and the types of remedies available. OCSD-52OC SAN-XX-28 B. The Purchasing Manager shall evaluate each Solicitation Protest Statement and determine what actions, if any, will be taken to remedy any deficiency. The decision of the Purchasing Manager shall be final. Section 6.02. Award Protests A. In connection with any competitive selection process, any Interested Party may file an Award Protest Statement with the Purchasing Manager on the ground that a free and open competition has not taken place in connection with the award recommendation. The Purchasing Manager shall not, however, consider any protest based on a finding that a bid or proposal is not responsive. B. Each Notice Inviting Bids and Request for Proposals shall identify the deadline for Award Protest Statements and describe the information required to be included in any Award Protest Statement, the evaluation process, the appeal process, and the types of remedies available. C. The Purchasing Manager shall evaluate each Award Protest Statement and determine what actions, if any, will be taken to remedy any deficiency. D. If the Protestor wishes to appeal, the Purchasing Manager's decision on an Award Protest Statement, the appeal shall be submitted to the Director of Finance and Administrative Services and the Director of the Department requesting the Procurement. The Director of Finance and Administrative Services and the Director of the Department requesting the Procurement shall evaluate each Award Protest Statement and determine whether to uphold or reject the Purchasing Manager's determination. For Contracts to be awarded by Sanitation District staff, the decision of the Director of Finance and the Director of the Department requesting the Procurement shall be final. For Contracts to be awarded by the Board of Directors, the Board may consider any Award Protest Statements in connection with its consideration of the Contract. Section 6.03. Delay in Award A. Execution of any proposed contract shall be delayed pending resolution of any protests unless one or more of the following conditions is present: (1) The items or services being procured are urgently required; (2) Delivery or performance will be unduly delayed by failure to make an award promptly; or (3) Failure to make prompt award will otherwise cause undue harm to the Sanitation District. (3) Section 6.04. Remedies OCSD-52OC SAN-XX-29 A. If the final decision maker determines that the award or proposed award was not made in accordance with applicable statutes, regulations, policies and/or procedure, the Sanitation District, in its sole discretion, may grant any of the following remedies or any other remedy it deems appropriate: (1) Prior to award, the Sanitation District may issue a new solicitation, make a new selection/award recommendation, or award a contract consistent with applicable statutes, regulations, policies and procedures; (2) Take no further action; or (3) Take any other action that is permitted by law to promote compliance with applicable statutes, regulations, policies and/or procedure. B. In determining the appropriate remedy, if any, the Sanitation District shall consider all the circumstances surrounding the Notice Inviting Bids/Invitation for Bids or Requests for Proposal and/or award, including, but not limited to: (1) The seriousness of any deficiency found to exist in the contracting process; (2) The effect of the action on the competitive process; (3) Any urgency surrounding the contract requirement; and (4) The effect that implementing the remedy will have on the Sanitation District. C. Nothing contained herein shall be construed to act as a limitation on the Sanitation District's choice of remedies or confer any right upon any Interested Party or affected party to a remedy. C. Section 6.05. Public Documents Solicitation Protest Statements and Award Protest Statements are public documents. The Sanitation District will notify the affected parties when a protest has been submitted, and will provide copies of the Protest Statements to the affected parties upon written request. ARTICLE 7. DELEGATION OF AUTHORITY TO AWARD CONTRACTS This Article 7 applies to all Contracts for Goods, Services, and Public Works Projects entered into by the Sanitation District. Section 7.01. Award Authorization A. Delegation by General Manager. The General Manager shall establish written procedures governing the delegation of authority to the Purchasing Manager to award and execute OCSD-52OC SAN-XX-30 Contracts, Amendments, Change Orders, Renewals, Time Extensions and Assignments consistent with this Ordinance. Upon delegation of authority by the General Manager each Department Director may further delegate authority to initiate a written Requisition consistent with the General Manager's written procedures. B. Original Contracts, Contingencies and Renewals The Board of Directors hereby delegates the authority to award Contracts within specified limits as follows: Delegated Authority Authorized Action General Manager/ Assistant General Manager (1) Authorization to approve and execute Contracts and applicable Renewals for budgeted procurements less than or equal to $100,000. (2) All new procurements between $50,000 and $100,000 are to be reported to the Board of Directors on a quarterly basis. Standing Committees (1) Authorization to approve and execute Contracts and applicable Renewals for budgeted procurements greater than $100,000 and up to or equal to $200,000. (2) Authorization to approve Contingency up to 50%, for a total spending authority of up to $300,000 for each Contract. Board of Directors Authorization to approve and execute Contracts and applicable Renewals for budgeted procurements up to or greater than $200,000, including Contingency. C. Amendments, Change Orders, Renewals, Time Extensions and Assignments The Board of Directors hereby delegates the authority to approve Amendments, Change Orders, Renewals, Time Extensions and Assignments in any amount as follows: Delegated Authority Authorized Action OCSD-52OC SAN-XX-31 General Manager/ Assistant General Manager (1) Authorization to approve and execute Amendments and Change Orders as long as the Amendment or Change Order is recommended by the applicable Department Director, and (a) the Amendment or Change Order does not change the contract price or the new contract price is within the delegated authority, or (b) the Amendment or Change Order is within the approved contingency. (2) Authorization to approve and execute any Renewals that were originally approved by the General Manager, Standing Committee and/or Board of Directors. (3) Authorization to approve and execute Amendments and Change Orders for Contract Time Extensions (a) without any increase in Contract price; or (b) with an increase in Contract price within the approved Contingency originally approved by the General Manager, Standing Committee and/or Board of Directors. (4) Authorization to approve and execute all Assignments unless determined by the General Manager that the assignment contains material changes and requires approval of the awarding authority. (5) Authorization to approve and execute Amendments to chemical Contracts unless the Contract unit price has increased beyond the unit price contingency approved by the Sanitation District’s Standing Committee and/or Board of Directors. (6) Authorization to approve and execute chemical contract Renewals including changes to the unit price, increases or decreases to the estimated annual / or specified term amount. Increases that cause the contract amount to exceed the General Manager’s delegated authority shall be approved by the Standing Committee and/or Board of Directors. OCSD-52OC SAN-XX-32 Section 7.02. Contingency Release The General Manager/Assistant General Manager shall manage the release of all contingency funds for use in all amendments and change orders within the approved contingency amounts. Section 7.03. Task Orders The Board of Directors hereby delegates the authority to award Task Orders within specified limits as follows: Delegated Authority Authorized Action General Manager/ Assistant General Manager (1) For Task Orders covered under Article 2. Goods and Services, authorization to approve and execute Task Orders and/or Amendments to the Task Orders provided the cumulative total of the Task Order and Amendments thereto does not exceed $300,000, upon the recommendation of the Department Director (2) For Task Orders covered under Article 2. Goods and Services, all new Task Order procurements between $50,000 and $300,000 are to be reported to the Board of Directors on a quarterly basis, in arrears. (3) For Task Orders covered under Article 3. Professional Services of this Ordinance, authorization to approve and execute Task Orders and/or Amendments to the Task Orders provided the cumulative total of the Task Order and Amendments thereto does not exceed $100,000, upon the recommendation of the Department Director. (4) For Task Orders covered under Article 4. Professional Design Services, authorization to approve and execute Task Orders and/or Amendments to the Task Orders provided the cumulative total of the Task Order and Amendments thereto does not exceed OCSD-52OC SAN-XX-33 $300,000, upon the recommendation of the Department Director. (5) For Task Orders covered solely under Article 4, Professional Design Services of this Ordinance, the General Manager may delegate authorization to approve and execute Professional Design Service mMaster cContract Task Orders up to or equal to $100,000, which is inclusive of amendments to Task Orders, to the Director of Engineering. This authorization may not be sub delegated further. This authorization does not apply to mMaster cContracts covered under Article 2 or Article 3 of this Ordinance. Standing Committees (1) For Task Orders covered under Article 3. Professional Services of this Ordinance, authorization to approve Amendments to the Task Orders where the cumulative value exceeds $100,000 provided the cumulative total of the Task Order and Amendments does not exceed $200,000, upon the recommendation of the General Manager/Assistant General Manager. Board of Directors (1) For Task Orders covered under Article 2. Goods and Services, all Task Orders and/or amendments where the cumulative value exceeds $300,000 shall be approved by the Board of Directors. (2) For Task Orders covered under Article 3. Professional Services, all Task Orders and/or amendments that exceed $200,000 shall be approved by the Board of Directors. (3) For Task Orders covered under Article 4. Professional Design Services, all Task Orders and/or Amendments that exceed $300,000 shall be approved by the Board of Directors. ARTICLE 8. ETHICS Section 8.01. Unlawful Consideration Prohibited Sanitation District Officials shall neither solicit nor receive bribes, rebates, kickbacks, and/or any other unlawful consideration from any contracting party, or any party seeking a Contract with the Sanitation District, in exchange for favorable treatment OCSD-52OC SAN-XX-34 or any other action. Section 8.02. Conflicts of Interest A. Compliance with the Political Reform Act. Sanitation District Officials shall not make any Contracts, participate in the making of any Contracts, or in any way attempt to use their official positions to influence any decision on any Contracts, in violation of Government Code Sections 87100 et seq. B. Compliance with Government Code § 1090. Without limiting the requirements of Part A above, no Sanitation District Official shall make any Contract, participate in the making of any Contract, or in any way attempt to use his or her official position to influence any decision on a Contract, in violation of California Government Code Section 1090. C. Requirements Applicable to Consultants. Consultants designated by the Sanitation District's Conflict of Interest Code shall comply in all respects with Government Code Section 87100 et seq., and it's implementing regulations. ARTICLE 9. DEFINITIONS Amendment means a properly executed written agreement entered into and between the Sanitation District and the Contractor, or issued by the Sanitation District, covering modifications to the original Contract and which may result in adjustments to provisions of the Contract, including, but not limited to, terms, scope of work, compensation, and/or period of performance. Assignment means to revise Contracts and related records to reflect changes such as the sale, transfer, or reorganization of a Contractor’s business, or a change in the Contractor’s name for doing business, as long as all other terms and conditions of the original Contract remain the same. Award Protest Statement shall mean a written objection to the award recommendation prior to final action to award the contract, which shall be submitted after receipt of sealed bids/proposals, but before award of a contract, as specified herein. Best value means the overall combination of quality, price, and other elements of a proposal/bid (or combination of several proposals/bids) that, when considered together, provide the greatest overall benefit in response to the requirements described in the OCSD-52OC SAN-XX-35 solicitation documents. Change Order means a properly executed written agreement entered into and between the Sanitation District and the Contractor, or unilaterally issued by the Sanitation District, covering modifications to the original Contract, and which may result in adjustments to the provisions of the Contract, including, but not limited to, terms, scope of work, cost and/or period of performance. Competitive Sealed Bids means a selection process whereby prospective Contractors submit sealed bids and the Contract is awarded to the lowest Responsive and Responsible Bidder. Competitive Sealed Proposals means a selection process whereby prospective Contractors submit sealed proposals and the Contract is awarded to the proposal that best meets the criteria specified in the Request for Proposals. Contingency means an amount above the original Contract price, as awarded by the delegated authority, established at the time of Contract award, as may be amended thereafter, to be used for Contract changes. Contract means any type of agreement for the purchase of Goods, Services, and/or Public Works Projects. Contracts may be labeled in various different ways, including, but not limited to, "contract," "agreement," "purchase order," and "task order." Contractor means any person or entity that has a Contract with the Sanitation District. Department means one of the Sanitation District's designated departments. Design-Bid-Build means a selection process for the award of Public Works Contracts involving three basic steps: (1) the Sanitation District hires a design professional to prepare detailed plans and specifications or the Sanitation District prepares detailed plans and specifications; (2) the Sanitation District solicits bids from construction firms based on the detailed plans and specifications; and (3) the Sanitation District awards the Contract to the lowest Responsive and Responsible Bidder. Design-Build means a selection process for the award of Public Works Contracts involving two basic steps: (1) the agency solicits proposals from pre-qualified firms to design and construct a project; and (2) depending on the award criteria set forth in the Request for Proposals, the agency awards the Contract to either (a) the lowest Responsive and Responsible Bidder, or (b) the proposal that presents the "best value." Designee means a person selected or authorized to temporarily manage the duty or role of another employee. Director means a director of one of the Sanitation District's designated departments, or his or her designee(s). OCSD-52OC SAN-XX-36 Director of Engineering means the Sanitation District's Director of Engineering or his or her designee(s). District means the Orange County Sanitation District. District Board or Board means the Board of Directors of the Orange County Sanitation District. District Official means any member of the District's Board of Directors, any District employee, and any District consultant that is designated under the District's Conflict of Interest Code. General Manager means the General Manager of the Sanitation District, or his or her designee(s). Goods means fixed, movable, disposable, and/or reusable products, commodities, equipment, materials, supplies or items used by the Sanitation District, and excludes land or any interest in real property. Interested Party shall mean: (1) on solicitation, all bidders or proposers, and prospective bidders or proposers; (2) on award, the unsuccessful bidder or proposer with a direct economic interest in the outcome of their protest. Local Business shall mean a business that has a principal business office, or a satellite office with at least one full-time employee, that is located within the Sanitation District service area. Local Preference shall mean a preference for a Local Business over a business that is not a Local Business. Mailing means transmission by United States Postal Service, electronic mail, or facsimile. Negotiated Procurement means a selection process whereby the Purchasing Manager identifies one or more prospective Contractors of his or her choice, negotiates with one or more of them, and awards the Contract to one of them based on the best interest of the Sanitation District. Notice Inviting Bids/Invitation for Bids means all documents, whether attached or incorporated by reference, utilized for soliciting bids. Procurement means buying, purchasing, renting, leasing, or otherwise acquiring any goods, services, construction, construction services, or professional services, including professional design services. It also includes all functions that pertain to the obtaining of any goods, services, or construction, including description of requirements, OCSD-52OC SAN-XX-37 election and solicitation of sources, preparation and award of contract, and all phases of contract administration. Professional Services means (i) services provided by professionals that involve specialized judgment, skill, and expertise, and (ii) incidental services that professionals, and those in their employ, may logically or justifiably perform. Professional Services include, but are not limited to, services provided by accounting, financial, information technology, human resources consultation and advocacy, legislative advocacy, and scientific research/consulting firms. Professional Design Services means architectural, landscape architectural, engineering, environmental, land surveying, construction project management, planning and other miscellaneous engineering related services retained by the Sanitation District in connection with, but not limited to, construction, alteration, and/or repair projects. Public Works/Public Works Project means a project involving the construction, erection, or alteration of any type of structure, building, or improvement other than sewerage maintenance or repair projects. Purchasing Manager means the Sanitation District's Contracts, Purchasing and Materials Management Manager, or his or her designee(s). Purchasing Manager designee means an employee residing under Contracts, Purchasing and Materials Management Division whose job duties include contracting and procurement execution and administration. Renewal means a mechanism within an approved contract to provide the same goods/services for an additional period of time, at the specified price under the same terms and conditions. The number of renewals, the price, and any contingencies are approved at the time of award. Renewals may or may not increase the contract price. The contract price per term does not accumulate for purposes of approval thresholds. A Renewal may be exercised fewer times or for a shorter duration than the approved number or term, but any remaining time cannot be transferred to an additional renewal. Renewals cannot be added nor entered into for longer than the approved number or term at the time of award. Request for Proposals means all documents, whether attached or incorporated by reference, utilized for soliciting proposals. Request for Qualifications means a request for detailed information concerning the qualifications of prospective Contractors. Requisition means an approved written document making a request for Goods and Services in advance of initiating a procurement process as well as a later request to amend, change, renew, cancel or extend time to a non-public works contract. Responsible Bidder means a bidder who has demonstrated the attribute of trustworthiness, as well as quality, fitness, capacity, and e xperience to satisfactorily perform the requested services or project. OCSD-52OC SAN-XX-38 Responsive Bidder/Proposer means a bidder/proposer who has submitted a bid/proposal which conforms in all material respects to the Notice Inviting Bids/Invitation for Bids/Request for Proposals. Sanitation District means the Orange County Sanitation District. Sanitation District Board or Board means the Board of Directors of the Orange County Sanitation District. Sanitation District Official means any member of the Sanitation District's Board of Directors, any Sanitation District employee, and any Sanitation District consultant that is designated under the Sanitation District's Conflict of Interest Code. Services means the furnishing of materials, labor, time, or effort by a Contractor. Services include both general services janitorial, landscape, repair, maintenance, etc.) professional services, and professional design services, unless otherwise specified. Sealed (Bids or Proposals) means the submittal of bids or proposals, either in paper or electronic format, whereby the bid or proposal documents are opened at a specific time and not before. Sole Source Procurement means the acquisition of Goods and/or Services from a single source. Solicitation Protest Statement shall mean a written objection during the solicitation phase of the procurement, which shall be submitted prior to the bid/proposal due date as specified herein. Standing Committee means one of the permanent committees designated by the Board of Directors as "Standing Committees." Task Order means a written document pursuant to a Contract issued by the Purchasing Manager which provides for the issuance of orders, containing a defined budget, scope of services, and schedule, and authorizes a Contractor to incur a specified amount for the performance of tasks. Time Extension means an increase to the period of performance specified by the original contract only, as may be amended. ARTICLE 10. MISCELLANEOUS Section 10.01. Noncompliance Any Contract entered into which fails in any respect to comply with the provisions of this Ordinance may be voided by the Board of Directors in its sole and absolute discretion. Any employee who willfully and knowingly violates any provision of this OCSD-52OC SAN-XX-39 Ordinance may be subject to disciplinary action. Section 10.02. Effective Date This Ordinance No. OCSD-52 SAN-XX shall take effect June 263, 202118, upon adoption by the Board of Directors. Section 10.03. Repeal of Ordinance No. OCSD-5247 Ordinance No. OCSD-5247, entitled "An Ordinance of the Board of Directors of the Orange County Sanitation District Establishing Requirements and Procedures for the Purchase of Goods, Services, and Public Works Projects; and repealing Ordinance No. OCSD-47" is hereby repealed in its entirety. Section 10.04. Certification and Publication. The Clerk of the Board shall certify to the adoption of this Ordinance, and shall cause a summary to be published in a newspaper of general circulation within 15 days as required by law. OCSD-52OC SAN-XX-40 PASSED AND ADOPTED by a majority of the Board of Directors of the Orange County Sanitation District at a Regular Meeting held on May 2623, 202118. ATTEST: Kelly A. Lore, MMC Clerk of the Board APPROVED AS TO FORM: Bradley R. Hogin General Counsel Gregory C. Sebourn, PLSDavid John Shawver Chairman of the Board of Directors 1288720.1 STATE OF CALIFORNIA ) ) SS COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of Orange County Sanitation District, do hereby certify that the above and foregoing Ordinance No. OC SAN-XXSD-52 was introduced for first reading at a regular meeting of said Board on the 285th day of April 202118, and passed and adopted at a regular meeting of said Board on the 26th3rd day of May 202118, by the following vote, to wit: AYES: Barnes; Bernstein; Berry (Alternate); Collacott; Deaton; Ferryman; B. Jones (Alternate); Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter; Sebourn; Shaw; Shawver; F. Smith; T. Smith; Steel; Tinajero; Wagner; Wanke; and Withers NOES: None ABSTENTIONS: None ABSENT: S. Jones and Peterson IN WITNESS WHEREOF, I have hereunto set my hand this 28th3rd day of May 202118. Kelly A. Lore, MMC Clerk of the Board Orange County Sanitation District 1288720.1 ORDINANCE NO. OC SAN-XX AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT ESTABLISHING REQUIREMENTS AND PROCEDURES FOR THE PURCHASE OF GOODS, SERVICES, AND PUBLIC WORKS PROJECTS; AND REPEALING ORDINANCE NO. OCSD-52 OC SAN-XX-2 CONTENTS ARTICLE 1. GENERAL PROVISIONS……… ............................................................. .6 Section 1.01. Purpose and Scope .................................................................... 6 A. Purpose ............................................................................................... 6 B. Scope ................................................................................................... 6 Section 1.02. Title ............................................................................................. 6 Section 1.03. Definitions ................................................................................... 6 Section 1.04. Rules and Guidelines .................................................................. 6 Section 1.05. Budgeted Funds .......................................................................... 7 Section 1.06. The Purchasing Manager ............................................................ 7 A. Duties .................................................................................................. 7 B. Requests for Procurement...............................................................7 Section 1.07. Exceptions to Competitive Selection ..........................................7 A. Sole Source Procurement. ............................................................. 7 B. Emergency Procurement……………………………………………… 8 Section 1.08. Evaluation Committees…………………………………………… ..9 Section 1.09. Severability…………………………………………………………… 9 ARTICLE 2. GOODS AND SERVICES ....................................................................... 9 Section 2.01. Purpose and Scope………………………………………………….9 A. Purpose. .......................................................................................... 9 B. Scope. .............................................................................................9 Section 2.02. Selection Process……………………………………………………10 A. Competitive Sealed Bids ................................................................ 10 B. Equal Bids ....................................................................................... 10 C. Multi-Step Sealed Bidding ............................................................... 10 D. Request for Proposals .................................................................... 11 Section 2.03. Exceptions.................................................................................. 11 A. Small Procurements ....................................................................... 11 B. Cooperative Purchases ................................................................... 11 C. Critical Time-Sensitive Procurements ............................................. 12 D. Renewals……………………………………………………………….. 12 E. Sole Source and Emergency Procurements ................................. 12 OC SAN-XX-3 F. Master Contracts; Maintenance and Repair Services Less Than or Equal to $300,000 ............................................................ 12 ARTICLE 3. PROFESSIONAL SERVICES ............................................................... 13 Section 3.01. Purpose and Scope ................................................................... 13 A. Purpose ......................................................................................... 13 B. Scope ......................................................................................... 13 Section 3.02. Selection Process ...................................................................... 14 A. Request for Proposals ................................................................... 14 B. Evaluation of Proposals ................................................................. 14 C. Negotiation of Contract. ................................................................. 14 Section 3.03. Exceptions ................................................................................. 15 A. Sole Source and Emergency Procurements ................................. 15 B. Contractors Reporting to the Board ............................................... 15 C. Procurements of $10,000 or less .................................................. 15 D. Master Contracts; Professional Services Less Than or Equal to $100,000 .................................................................................... 15 E. Master Contracts: Professional Services Qualified Lists ................ 15 ARTICLE 4. PROFESSIONAL DESIGN SERVICES ................................................ 17 Section 4.01. Purpose and Scope ................................................................... 17 A. Purpose ......................................................................................... 17 B. Scope ......................................................................................... 17 Section 4.02. Selection Process ..................................................................... 17 A. Competitive Selection .................................................................... 17 B. Professional Design Services Greater Than $300,000 ................. 17 C. Master Contracts: Professional Design Services Less Than or Equal to $300,000 ..................................................................... 19 Section 4.03. Exceptions ................................................................................. 21 A. Sole Source and Emergency Procurements ................................. 21 B. Additional Services ........................................................................ 21 C. Procurements of $10,000 or less ................................................... 21 ARTICLE 5. PUBLIC WORKS PROJECTS ............................................................... 22 Section 5.01. Purpose and Scope................................................................... 22 A. Purpose ......................................................................................... 22 B. Scope……………………………………….………………………. . 22 OC SAN-XX-4 Section 5.02. Selection Process…………………………………………………… . 22 A. Design-Bid-Build ................................................................................ 22 B. Design-Build ...................................................................................... 24 C. Prequalification ..................................................................................... 24 Section 5.03. Exceptions ...................................................................................25 A. Emergencies and Calamities ............................................................ 25 B. Specification of Brand or Trade Name ............................................. 26 ARTICLE 6. PROTESTS .................................................................................................... 26 Section 6.01. Solicitation Protests ..................................................................... 26 Section 6.02. Award Protests ............................................................................ 27 Section 6.03. Delay in Award ............................................................................ 27 Section 6.04. Remedies ................................................................................... 28 Section 6.05. Public Documents ....................................................................... 28 ARTICLE 7. DELEGATION OF AUTHORITY TO AWARD CONTRACTS ................... 28 Section 7.01. Award Authorization .................................................................... 28 A. Delegation by General Manager ..................................................... 28 B. Original Contracts and Contingencies ............................................. 29 C. Amendments, Change Orders, Renewals, Time Extensions & Assignments .................................................................................. 29 Section 7.02. Contingency Release .................................................................. 30 Section 7.03. Task Orders ................................................................................ 31 ARTICLE 8. ETHICS .......................................................................................................... 32 Section 8.01. Unlawful Consideration Prohibited ................................................. 32 Section 8.02. Conflicts of Interest. .................................................................... 33 A. Compliance with the Political Reform Act. ....................................... 33 B. Compliance with Government Code § 1090 ................................... 33 C. Requirements Applicable to Consultants ......................................... 33 ARTICLE 9. DEFINITIONS ............................................................................................... 33 ARTICLE 10. MISCELLANEOUS ................................................................................ 37 Section 10.01. Noncompliance ............................................................................... 37 Section 10.02. Effective Date ........................................................................... 37 Section 10.03. Repeal of Ordinance No. OCSD-42 ......................................... 37 Section 10.04. Certification and Publication .................................................... 37 OC SAN-XX-5 NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District does hereby ORDAIN: ARTICLE 1. GENERAL PROVISIONS Section 1.01. Purpose and Scope A. Purpose. This Ordinance is intended to: (1) Comply with certain provisions of State law requiring the Sanitation District to adopt written purchasing procedures; (2) Ensure that the Sanitation District complies with State law governing the award of Contracts for Goods, Services, and Public Works Projects; (3) Establish procedures to ensure that the Sanitation District obtains quality goods and competent services at the best price and/or the best value; (4) Delegate certain spending authority to Sanitation District employees in the interest of efficient administration; (5) Ensure that purchasing decisions are transparent for the public; and (6) Ensure that Contracts are awarded through a process that is fair to prospective Contractors and in the best interests of the Sanitation District. B. Scope. This Ordinance governs the purchase of Goods, Services and the award of Contracts for Public Works Projects. Section 1.02. Title This Ordinance may be referred to as the Sanitation District's "Purchasing Ordinance." Section 1.03. Definitions As used throughout this Ordinance, the terms set forth in Article 9 shall have the meanings as defined therein, unless the context in which they are used clearly requires a different meaning, or a different definition is prescribed for a particular Article or provision. Section 1.04. Rules and Guidelines The General Manager shall implement the requirements of this Ordinance through policies, rules, and guidelines governing the purchase of Goods and Services, and the award of Contracts for Public Works Projects. OC SAN-XX-6 Section 1.05. Budgeted Funds No Contract for the purchase of Goods, Services, or Public Works Projects shall be awarded unless and until the General Manager identifies funds in the current budget that are allocated to the purchase. Section 1.06. The Purchasing Manager A. Duties. Consistent with the provisions of this Ordinance, the Purchasing Manager shall: (1) Conduct the procurement of all Goods, Services, and Public Works Projects purchased by the Sanitation District; and receive from Contractor all bids, proposals or other solicitation results; (2) Supervise and control inventories of supplies and materials. (3) Determine the type of procurement, term of the contract including number of renewals and any other contractual provisions necessary and in the best interest of the Sanitation District. B. Requests for Procurement. When a Department desires to procure Goods and/or Services, the Department Director shall file a written Requisition, in advance of a procurement process, with the Purchasing Manager. The Requisition shall describe the Goods and/or Services to be acquired. Public Works procurements require a complete Engineering Budget Approval Form or equivalent document. Section 1.07. Exceptions to Competitive Selection Depending on the nature of the Contract and/or the circumstances, certain provisions of this Ordinance require that Contracts for Goods and/or Services be awarded based on Competitive Sealed Bids or Competitive Sealed Proposals. This Section 1.07 establishes certain general exceptions to competitive selection requirements for the procurement of Goods and Services. The exceptions set forth in this Section 1.07 do not apply to the award of Contracts for the construction of Public Works Projects. A. Sole Source Procurement. Notwithstanding any other provision of this Ordinance, a Contract for Goods and/or Services may be awarded based on Sole Source Procurement, without soliciting bids or proposals as might otherwise be required, if the General Manager or his designee determines in writing that it is in the best interest of the Sanitation District to award the Contract because the Goods and/or Services are (1) of a unique nature based on their quality, durability, availability, fitness or qualifications for a particular use; or (2) only available from one source. OC SAN-XX-7 B. Emergency Procurement. Notwithstanding any other provision of this Ordinance, a Contract for Goods and/or Services may be awarded through Negotiated Procurement, without soliciting bids or proposals as might otherwise be required, if the General Manager or his designee determines in writing that the Sanitation District urgently needs the Goods and/or Services in order to respond effectively to an emergency. For purposes of this Section 1.07, emergency procurements are those purchases that are required to prevent immediate interruption or cessation of necessary services or to safeguard life, property, or the public health and welfare. In addition, emergency procurements as used in this Section also include critical time sensitive purchases where time is of the essence, and the Sanitation District does not have sufficient time to solicit bids or proposals. For emergency procurements greater than $100,000, the General Manager shall obtain the concurrence of the Chair of the Sanitation District's Board of Directors or, if the Chair is unavailable, the Vice Chair, and such action shall be ratified by the Board of Directors at its next regular meeting. OC SAN-XX-8 Section 1.08. Evaluation Committees Evaluation committees convened in connection with procurements under this Ordinance shall generally be composed of full-time Sanitation District employees. In exceptional circumstances, however, the General Manager may appoint one or more persons not employed by the Sanitation District to an evaluation committee if the General Manager determines that (1) evaluating proposals in connection with a particular procurement requires specialized expertise not available among Sanitation District employees; (2) the procurement will impact another agency, and that agency desires to place a representative on the evaluation committee; or (3) it is otherwise in the Sanitation District's interest to do so. Section 1.09. Severability If any provision of this Ordinance, or any application thereof to any person or circumstance, is held invalid, such invalidity shall not affect any other provision of this Ordinance or application to any person or circumstance which can be given effect without the invalid provision or application. The provisions of this Ordinance are declared to be severable. ARTICLE 2. GOODS AND SERVICES Section 2.01. Purpose and Scope A. Purpose. California Government Code Sections 54202 et seq. requires the Sanitation District to adopt written policies and procedures, including bidding requirements, governing the purchase of Goods and Services. This Article is intended to comply with Section 54202. B. Scope. The provisions of this Article 2 apply to Contracts for the purchase of Goods and Services other than Contracts for Professional Services (governed by Article 3) Professional Design Services (governed by Article 4), and Contracts for Public Works Projects (governed by Article 5). Section 2.02. Selection Process Subject to the exceptions set forth in Section 2.03, the award of Contracts for the purchase of Goods and Services shall be based on the competitive procurement methods set forth below. OC SAN-XX-9 A. Competitive Sealed Bids. For each procurement, the Purchasing Manager shall: (1) Publish a Notice Inviting Bids that contains (a) a description of the Goods and/or Services required, (b) a description of the selection process, (c) bidder's security requirement, if applicable, (d) performance bond requirements, if applicable, and (e) such provisions, renewals, terms, and conditions, consistent with this Ordinance, that the Purchasing Manager determines are necessary, desirable, and/or advantageous to the Sanitation District; (2) Receive the Competitive Sealed Bids publicly at the time and place designated in the Notice Inviting Bids, and record the amount of each bid; and (3) Determine whether the bids are responsive to the Notice Inviting Bids. (4) Award: After the bids are opened, take one of the following actions: (a) Award the Contract to the lowest Responsive and Responsible Bidder; (b) Reject any and all bids presented and/or re-advertise the bid; or (c) Declare that the Goods and/or Services may be acquired at a lower cost by negotiation in the open market and authorize the procurement in that manner. B. Equal Bids. If the Sanitation District determines that there has been a tie for lowest responsive bid between two or more bids received, which are for the same total amount or unit price and in all other respects equal, then the Sanitation District may award the bid based on Local Preference. If neither or both bidders are Local Businesses, the Sanitation District shall award the bid based on the drawing of lots. C. Multi-Step Sealed Bidding. The Purchasing Manager may determine that a prequalification process is necessary and desirable for a particular procurement. The multi-step sealed bidding process requires the Purchasing Manager to (1) issue a Request for Qualifications requesting the submission of qualifications; and (2) issue a subsequent Notice Inviting Bids for priced offers from those Contractors whose initial submissions were deemed qualified under the criteria set forth in the initial Request for Qualifications. Award under this process shall be based on the lowest Responsive and Responsible Bidder. D. Request for Proposals. OC SAN-XX-10 If the Purchasing Manager determines in writing that the Competitive Sealed Bids procedure is not practical and/or not advantageous for the Sanitation District in a particular case, one or more Contracts subject to this Article may be awarded based on Competitive Sealed Proposals. The Request for Proposals process may be used (1) for Goods and/or Services that prove difficult to quantify or describe, where proposers are provided the opportunity to offer different approaches or solutions; and/or (2) for critical, routine or recurring goods or services that require consideration of the broadest possible range of competing services, products and materials available, fitness of purpose, performance reliability, standardization, life cycle costs, delivery timetables, reliable supply, support logistics, diversification of available sources and/or other similar factors in addition to the price in the award of these contracts. Award under this process shall be based upon criteria that provide the best value for the Sanitation District, wherein best value is not solely determined by price. Section 2.03. Exceptions A. Small Procurements. (1) Procurements of $10,000 or Less. Contracts subject to this Article 2 with an estimated value of $10,000 or less may be awarded without Competitive Sealed Bids if the Purchasing Manager determines that a Competitive Sealed Bids process would not result in a lower overall cost to the Sanitation District. (2) Procurements of $50,000 or Less. Contracts subject to this Article 2 with an estimated value of $50,000 or less may be awarded by (a) soliciting at least three bids from identified vendors, and (b) awarding the Contract to the lowest Responsive and Responsible Bidder. If the Purchasing Manager cannot obtain at least three bids, the Contract may be awarded to the lowest Responsive and Responsible Bidder as long as the Purchasing Manager determines that the bid amount is fair and reasonable. (3) Piecemealing Prohibited. Procurements shall not be artificially divided into different individual Contracts so as to keep each Contract amount below one of the monetary thresholds set forth in this Part A. B. Cooperative Purchases. When another public agency or government purchasing cooperative organization has awarded a Contract for Goods and/or Services based on Competitive Sealed Bids or Competitive Sealed Proposals, and the agency or organization followed a process substantially similar to the process described in Section 2.02, the Sanitation District may acquire Goods and/or Services under that Contract without obtaining Competitive Sealed Bids or Competitive Sealed Proposals. The Sanitation District may enter into Contracts with other public agencies, government purchasing cooperative organizations within the United States, OC SAN-XX-11 and/or Contractors for this purpose. C. Critical Time-Sensitive Procurements. The Purchasing Manager may purchase Goods and/or Services through Negotiated Procurement if the Purchasing Manager determines that time is of the essence in the purchase of the Goods and/or Services. For critical time- sensitive procurements valued at more than $100,000, the General Manager shall obtain the concurrence of the Chair of the Sanitation District's Board of Directors or, if the Chair is unavailable, the Vice Chair. D. Renewals. The Purchasing Manager may exercise any options to renew as may be included in existing Contracts without observing the bidding procedures prescribed in Section 2.02 and Section 2.03 E. Sole Source and Emergency Procurements. A Contract for the purchase of Goods and/or Services may be awarded without soliciting competitive bids if any of the exceptions set forth in Section 1.07 apply. F. Master Contracts; Maintenance and Repair Services Less Than or Equal to $300,000. The Purchasing Manager may purchase maintenance and repair Services estimated to cost less than or equal to $300,000 through the master contract procedures set forth below. (1) Request for Qualifications. If a master contract is let for maintenance and repair Services, then at least once every three (3) years, the Purchasing Manager shall prepare and distribute a Request for Qualifications for the maintenance and repair Services required by the Sanitation District. Each Request for Qualifications shall describe the selection criteria that will be used to determine whether suppliers or firms are eligible for the prequalified list. The Request for Qualifications shall require the following information, at a minimum, from proposers: (a) The firm's demonstrated competence and specialized expertise necessary to perform the type of Service needed; (b) The experience, training, and skills of the key personnel that will perform and manage the work for the Sanitation District; (c) The firm's capacity and resources to perform the Services required within the specified period of time. The firm must demonstrate that it will provide a sufficient number of qualified staff, equipment, and facilities as applicable. (2) Evaluation Committee. The Purchasing Manager shall convene an OC SAN-XX-12 evaluation committee to evaluate the responses to each Request for Qualifications. The Purchasing Manager shall chair the committee, and the Director of the Department requesting the Procurement shall appoint the remaining members. Each evaluation committee shall determine whether each supplier or firm has the demonstrated competence and qualifications to provide the Services necessary for the satisfactory performance of the Services required. (3) Lists. Based on the recommendations of the evaluation committee, with the concurrence of the Department Director, the Purchasing Manager shall establish a list of at least three (3) prequalified Contractors. If the Sanitation District uses its best efforts to outreach to potential Contractors, and cannot obtain the minimum of three (3) prequalified Contractors, the Purchasing Manager shall document the outreach and responses received. The Sanitation District may then proceed with award to fewer than three (3) prequalified firms. Each list shall be used for a maximum of three (3) years. No later than three (3) years after establishing a prequalified list, the Purchasing Manager must issue a new Request for Qualifications and establish a new list if such goods and/or services are required. (4) Master Contract. Master Contracts with firms on the prequalified list shall be awarded by the Board of Directors in the amount not to exceed the program budget approved by the Board of Directors. The original term of such Contracts shall be for one (1) year, with an option to renew each Contract for up to two (2) additional one-year renewal periods. (5) Task Orders. The Department Director shall notify the Purchasing Manager when Services subject to this subsection 2.03(F) are required for a maintenance or repair project. Proposals shall be solicited from all the firms on the prequalified list and one of the firms shall be selected pursuant to the process set forth in Section 2.02. Individual Task Orders in an amount not to exceed $300,000 will be awarded for each project. ARTICLE 3. PROFESSIONAL SERVICES Section 3.01. Purpose and Scope A. Purpose. This Article 3 is intended to ensure that the Sanitation District obtains Professional Services at fair and reasonable prices based on demonstrated competence and the professional qualifications necessary for the satisfactory performance of the services required. B. Scope. The provisions of this Article 3 apply to the award of Contracts for Professional OC SAN-XX-13 Services and incidental services that members of a Professional Service firm, and those in their employ, may logically perform. The provisions of this Article 3 do not apply to the award of Contracts for Professional Design Services (governed by Article 4). Section 3.02. Selection Process Contracts for Professional Services shall be awarded pursuant to the following procedures: A. Request for Proposals. The Purchasing Manager shall prepare a Request for Proposals in consultation with the Director of the Department requesting the Procurement. The Purchasing Manager, with the concurrence of the Director of the Department requesting the Procurement, may select a limited number of Professional Service firms to receive the Request for Proposals. The Purchasing Manager may issue a Request for Qualifications to prospective Contractors as a means of identifying prospective recipients. The Purchasing Manager may publish notice of the Request for Proposals or Request for Qualifications. B. Evaluation and Ranking of Proposals. All responsive proposals shall be evaluated and ranked, from most qualified to least qualified, based on each firm's demonstrated competence and professional qualifications necessary for the satisfactory performance of the services required. The Purchasing Manager may establish a committee to conduct the evaluation. The Purchasing Manager or evaluation committee, if any, may communicate with a proposal’s author to seek clarification or otherwise obtain relevant information. C. Negotiation of Contract. The Purchasing Manager shall negotiate a Contract with the firm deemed to be most qualified at a price that the Purchasing Manager, with the concurrence of the Director of the Department requesting the Procurement, deems to be fair and reasonable. If the Purchasing Manager determines that it is in the best interest of the Sanitation District to enter into Contracts with two or more firms, the Purchasing Manager shall negotiate with the desired number of firms starting with the most qualified. The Purchasing Manager shall proceed down the list from most to least qualified until he or she has concluded negotiations with the desired number of firms at fair and reasonable prices. The Sanitation District may, in its sole discretion, reject all proposals. OC SAN-XX-14 Section 3.03. Exceptions A. Sole Source and Emergency Procurements. A Contract for Professional Services may be awarded without soliciting Competitive Sealed Proposals if the Purchasing Manager makes one of the determinations set forth in Section 1.07. B. Contractors Reporting to the Board. The provisions of this Article 3 shall not apply to the retention of Professional Service firms or individuals that are selected by the Board and report directly to the Board. For such Contracts, the Board shall determine the method of selection, consistent with the requirements of applicable law. C. Procurements of $10,000 or less. Contracts subject to this Article 3 with an estimated value of $10,000 or less may be awarded without following the Request for Proposal/Request for Qualifications process if the Purchasing Manager determines that an RFP/RFQ process would not result in a lower overall cost to the Sanitation District. D. Master Contracts; Professional Services Less Than or Equal to $100,000. The Purchasing Manager may purchase Professional Services estimated to cost less than or equal to $100,000 through the master contract procedures set forth in Section 2.03(F), provided that individual task orders shall not exceed $100,000 for each project. E. Master Contracts: Professional Services Qualified Lists. The Purchasing Manager may establish qualified lists of Professional Services through the master contract procedures set forth below. (1) Request for Qualifications. If a master contract is let for Professional Services, the Purchasing Manager shall prepare and distribute a Request for Qualifications for the Professional Services required by the Sanitation District. Each Request for Qualifications shall describe the selection criteria that will be used to determine whether firms are eligible for the qualified list. The Request for Qualifications shall require the following information, at a minimum, from firms: (a) The firm's demonstrated competence and specialized expertise necessary to perform the type of Service needed; (b) The experience, training, and skills of the key personnel that will perform and manage the work for the Sanitation District; (c) The firm's capacity and resources to perform the Services required within the specified period of time. The firm must demonstrate that it will OC SAN-XX-15 provide a sufficient number of qualified staff, equipment, facilities or other requirements as applicable. (2) Evaluation Committee. The Purchasing Manager shall convene an evaluation committee to evaluate the responses to each Request for Qualifications. The Purchasing Manager shall chair the committee, and the Director of the Department requesting the Procurement shall appoint the remaining members. Each evaluation committee shall determine whether each firm has the demonstrated competence and qualifications to provide the Services necessary for the satisfactory performance of the Services required. (3) Lists. The Purchasing Manager in conjunction with the Department Director shall determine the number of firms needed on the list based on anticipated work. If the Sanitation District uses its best efforts to outreach to potential Contractors, and cannot obtain the minimum number of firms specified in the RFQ, the Purchasing Manager shall document the outreach efforts and responses to the procurement file. The Sanitation District may proceed with award to fewer firms. No later than five (5) years after establishing a qualified list, the Purchasing Manager must issue a new RFQ and establish a new list, if such services are still required. (4) Master Contract. Master Contracts with firms on the qualified list shall be awarded by the Board of Directors in the amount not to exceed the program budget approved by the Board of Directors. The original term of such Contracts shall be for three (3) years, with an option to renew each Contract for up to two (2) additional one-year renewal periods. (5) Task Orders. The Department Director shall notify the Purchasing Manager when Services are subject to this subsection 3.03(E). The Purchasing Manager shall follow a competitive selection process or cycle through on a rotation basis to one firm at a time. The Request for Qualifications shall specify any competitive process and/or rotation selection process, including selection of a single firm due to a unique qualification or circumstance, subject to the best interests of the Sanitation District in any particular case. F. Renewals. The Purchasing Manager may exercise any options to renew as may be included in existing Contracts without initiating the procurement procedures prescribed in Section 3.02 and Section 3.03. OC SAN-XX-16 ARTICLE 4. PROFESSIONAL DESIGN SERVICES Section 4.01. Purpose and Scope A. Purpose. This Article 4 is intended to ensure that the Sanitation District obtains Professional Design Services at fair and reasonable prices based on demonstrated competence and the professional qualifications necessary for the satisfactory performance of the services required. B. Scope. This Article 4 applies to the selection of Contractors for Professional Design Services. Section 4.02. Selection Process A. Competitive Selection. All Professional Design Services estimated to be greater than $300,000 shall be awarded based on Competitive Sealed Proposals. All Professional Design Services with an estimated value of $300,000 or less shall have a separate selection process based upon a master contract procedure whereby the Sanitation District shall solicit Statements of Qualifications and award one or more master contracts not to exceed $600,000 per year. B. Professional Design Services Greater Than $300,000. The requirements set forth in this subsection 4.02(B) shall apply to the purchase of Professional Design Services estimated to cost more than $300,000. (1) Annual List. Each Director of a Department that utilizes Professional Design Services may file annually with the Purchasing Manager a list of specific disciplines for which Professional Design Services may be required. The Purchasing Manager may from time to time prepare and distribute a Request for Qualifications for the professional disciplines or project design services required by the Sanitation District subject to this Part B. For each Request for Qualifications issued, the Purchasing Manager shall evaluate the responses, identify qualified firms, and maintain the responses of the qualified firms on file to be used in the Request for Proposals process described below. (2) Request for Proposals. The Purchasing Manager, in consultation with the Director of Engineering, shall issue a Request for Proposals for the Professional Design Services requested. Multiple projects may be bundled into one Request for Proposals such that multiple Contract awards may result from one Request for Proposals and selection may be based upon specialized services. OC SAN-XX-17 (3) Content of Request for Proposals. Each Request for Proposals shall describe the Professional Design Services required and the selection process. Each Request for Proposals shall also set forth such provisions, terms, and conditions, consistent with this Ordinance, that the Purchasing Manager, in consultation with the Director of Engineering, determines are necessary, desirable, and/or advantageous to the Sanitation District. Each Request for Proposals shall require that proposals contain, at a minimum, the following information: (a) The firm's qualifications for performing the proposed work. (b) The firm's relevant experience and performance on similar projects. (c) The firm's ability to complete the work within the time allotted. (d) The personnel that will be assigned to the project. (e) The estimated number of hours that each member of the team will spend on the project. (f) A statement that the firm's engagement for the project would not create a conflict of interest. (g) Any other information required to properly evaluate the firm's qualifications and experience with similar projects. (h) Proposals for construction management services shall demonstrate that the designated personnel have expertise and experience in construction project design review and evaluation, construction mobilization and supervision, bid evaluation, project scheduling, cost- benefit analysis, claims review and negotiation, and general management and administration of a construction project. (i) A fee proposal, based on the method of compensation specified in the Request for Proposal, and an estimate of total fees, enclosed in a separately sealed envelope. Commonly used methods of compensation for Professional Design Service Contracts include (i) cost plus fixed fee with a maximum amount; (ii) per diem rate(s) with a maximum amount; (iii) a lump sum (fixed) fee; and (iv) cost of time and materials. (4) Publication of Request for Proposals. The Sanitation District shall publish each Request for Proposals by two or more of the following methods: (a) Advertising in print or electronic media; and/or (b) Mailing the Request for Proposals to each firm that has been identified as a qualified firm as set forth in subsection 4.02(B)(1); and/or OC SAN-XX-18 (c) Mailing the Request for Proposals to each vendor registered in the applicable category, based on the services identified in the Request for Proposals, in the Sanitation District's on-line vendor database. (5) Staff Evaluation Committee. The Purchasing Manager shall convene an evaluation committee to evaluate the proposals. (a) Management and Composition. The Purchasing Manager shall serve as chair of the evaluation committee. The Director of Engineering shall appoint the other members of the committee. (b) Ranking of Firms. All proposals shall be evaluated and ranked, from most qualified to least qualified, based on each firm's demonstrated competence and professional qualifications necessary for the satisfactory performance of the services required. (c) Interviews. At its discretion, the evaluation committee may interview one or more of the firms that have submitted proposals. (d) Report. The evaluation committee shall prepare a written report for the Purchasing Manager and the Director of Engineering setting forth, at a minimum, the ranking of firms from most qualified to least qualified. (6) Negotiations. The Purchasing Manager and the Director of Engineering shall negotiate a Contract with the firm that the evaluation committee deems to be most qualified. Fee proposals shall not be opened until the most qualified proposer is identified. Only the most qualified proposer's fee proposal will be opened. If those negotiations fail, the Purchasing Manager shall negotiate with the second most qualified firm, and so on, until an agreement is reached. The Purchasing Manager shall proceed down the list from most to least qualified until he or she has concluded negotiations with the desired number of firms at fair and reasonable prices. The Director of Engineering shall make a written determination that the negotiated fee is fair and reasonable. The Sanitation District may, in its sole discretion, reject all proposals. C. Master Contracts; Professional Design Services Less Than or Equal to $300,000. The requirements set forth in this subsection 4.02(C) shall apply to the purchase of Professional Design Services estimated to cost less than or equal to $300,000 for each individual project. (1) Request for Qualifications. At least once every five (5) years, the Purchasing Manager shall prepare and distribute a Request for Qualifications for each professional discipline or project design service required by the Sanitation District subject to this subsection. Each Request for Qualifications shall describe the selection criteria that will be used to determine whether firms are eligible for the prequalified list. The Request for Qualifications shall require OC SAN-XX-19 the following information, at a minimum, from firms: (a) The firm's demonstrated competence and specialized expertise necessary to perform the type of services needed; (b) The education, experience, training, and skills of the key personnel that will perform and manage the work for the Sanitation District; (c) The firm's capacity and resources to deliver the services required within the specified period of time, including but not limited to a sufficient number of qualified staff, computer hardware, computer software, special equipment and facilities as applicable; and (d) The proximity of the firm's office(s) to the Sanitation District, the specific location of key personnel, and the firm's experience and familiarity with the operation of local government. (2) Evaluation Committee. The Purchasing Manager shall convene an evaluation committee to evaluate the responses to each Request for Qualifications. The Purchasing Manager shall chair the committee, and the Director of Engineering shall appoint the remaining members. Each evaluation committee shall determine whether each firm has the demonstrated competence and professional qualifications necessary for the satisfactory performance of the services required. (3) Lists. Based on the recommendations of the evaluation committee, with the concurrence of the Director of Engineering, the Purchasing Manager shall establish a list of prequalified Contractors within each discipline/category. The RFQ will identify the number of anticipated firms on the prequalified list. The Purchasing Manager in conjunction with the Director of Engineering shall determine the number of firms needed on the list based on anticipated work. If the Sanitation District cannot obtain the minimum number of firms specified in the RFQ, the Purchasing Manager shall record the outreach efforts and responses to the procurement file. The Sanitation District may proceed with award to fewer firms. Each list shall be used for a maximum of 5 (five) years. No later than 5 (five) years after establishing a prequalified list for each service, the Purchasing Manager shall issue a new Request for Qualifications and establish a new list if such services are still required. (4) Master Contract. Master Contracts with firms on the prequalified list shall be awarded by the Board of Directors in an amount not to exceed $600,000 per year. The original term of such Contracts shall be for 3 (three) years, with an option to extend each Contract for up to two (2) additional one-year renewal periods. (5) Task Orders. The Director of Engineering shall notify the Purchasing Manager when Professional Design Services subject to this subsection are required for a project. Proposals shall be solicited, with price proposals OC SAN-XX-20 submitted in a separate sealed envelope, from at least two firms on the prequalified list and one of the firms shall be selected pursuant to the process set forth in subsections 4.02(B)(5) and 4.02(B)(6). In determining which firms will be invited to submit proposals, the Purchasing Manager shall follow the selection or rotation process, if any, set forth in the Request for Proposals, subject to the best interests of the Sanitation District in any particular case. Individual Task Orders in an amount not to exceed $300,000 will be awarded for each project. The Director of Engineering shall make a written determination that the negotiated fee is fair and reasonable for the task. For Task Orders estimated to cost $25,000 or less, the Director of Engineering, with concurrence of the Purchasing Manager, may solicit a proposal from 1 (one) firm on the prequalified list. The price proposal shall be submitted in a separate sealed envelope. The Director of Engineering shall issue a written determination that (i) identifies the basis for selection, including but not limited to the specialized qualifications of the 1 (one) firm, and (ii) states that the negotiated price is fair and reasonable. Section 4.03. Exceptions A. Sole Source and Emergency Procurements. Contracts for Professional Design Services may be awarded without soliciting Competitive Sealed Proposals if the Purchasing Manager makes one of the determinations set forth in Section 1.07. B. Additional Services. A new contract for additional services related to work already performed under an existing Contract for Professional Design Services may be awarded without observing the procurement procedures prescribed in subsection 4.02(B) or subsection 4.02(C), as applicable. In connection with any such new contract, the Director of Engineering shall determine in writing that (1) it is in the Sanitation District's best interests to have the original firm perform additional, related services, and (2) the negotiated price is fair and reasonable. C. Procurements of $10,000 or less. Contracts subject to this Article 4 with an estimated value of $10,000 or less may be awarded without following the Request for Proposal/Request for Qualifications process if the Purchasing Manager determines that an RFP/RFQ process would not result in a lower overall cost to the Sanitation District. OC SAN-XX-21 ARTICLE 5. PUBLIC WORKS PROJECTS Section 5.01. Purpose and Scope A. Purpose. This Article 5 is intended to implement state statutes that govern the Sanitation District's award of construction Contracts for Public Works Projects. B. Scope. This Article 5 applies to the Sanitation District's award of Contracts for the construction of Public Works Projects exceeding $35,000 other than sewerage maintenance or repair projects pursuant to Public Contract Code section 20783 (Projects estimated at $35,000 or less, and sewerage maintenance or repair projects, may be processed pursuant to Article 2). Section 5.02. Selection Process A. Design-Bid-Build. (1) Competitive Sealed Bids. For projects subject to Public Contracts Code section 20783, the Sanitation District shall select firms for Public Works Projects pursuant to the process described in this subsection 5.02(A). (a) Notice Inviting Bids. For each prospective Contract, the Purchasing Manager shall publish a notice inviting bids as required by Public Contract Code Section 20783. (i) Manner of Publication. Each notice inviting bids shall be published in a newspaper of general circulation at least 10 days before the date for the opening of bids consistent with the requirements set forth in Public Contracts Code section 20783, as may be amended or superseded from time to time. Additionally, the Sanitation District may publish each notice inviting bids on industry bulletin boards, the Sanitation District’s on-line vendor database, and/or on the Sanitation District's website. (ii) Contents. Each Notice Inviting Bids shall: 1. Establish a deadline for the receipt of bids that is at least 10 calendar days after the first publication of the Notice Inviting Bids. 2. Provide that the Sanitation District, in its sole discretion, may reject any and all bids; OC SAN-XX-22 3. Set forth a procedure that shall be followed in the event of a tie between the lowest Responsive and Responsible bidders; 4. Require bidders to post a bidder's security; 5. State that if a Contract is awarded to the bidder, a payment bond is required pursuant to Civil Code section 9550, as well as a performance bond; 6. Contain detailed plans and specifications for the project. Subject to the exceptions set forth in subsection 5.03(B), the specifications shall not call for a designated material, product, thing, or service by specific brand or trade name unless the Sanitation District complies with the requirements under California Public Contract Code section 3400 et seq.; and 7. Contain whatever provisions, consistent with this Ordinance, the Purchasing Manager determines are necessary, desirable, and/or advantageous to the Sanitation District. (b) Bid Opening. The Purchasing Manager shall open the bids publicly in the presence of one or more witnesses at the time and place designated in the Notice Inviting Bids. A web-based system may be used in lieu of in person bid opening. The Purchasing Manager shall record the amount of each bid together with the name of each bidder. This record, and each bid, shall be considered public records and shall be available to the public at the point in time specified in the Notice Inviting Bids and consistent with the Public Records Act. (c) Rejection of Bids. The Sanitation District may reject all bids received for a particular project and: (i) Re-advertise for bids; or (ii) Authorize construction of the project through a Negotiated Procurement of day labor and/or materials or supplies, if the Board adopts a resolution by a four-fifths vote declaring that (i) the work can be performed more economically by day labor, and/or (ii) the materials or supplies can be obtained at a lower price in the open market. (d) No Bids. If the Sanitation District does not receive any responsive and responsible bids for a particular project, the Sanitation District's Board of Directors may authorize the Purchasing Manager to conduct a Negotiated Procurement, and present his or her recommendation to the Board for approval. OC SAN-XX-23 (e) Award to Lowest Responsive and Responsible Bidder. Unless the Sanitation District rejects all bids, the Contract shall be awarded to the lowest Responsive and Responsible Bidder. . If the Sanitation District determines that there has been a tie for lowest responsive bid between two or more bids received, which are for the same total amount or unit price and in all other respects equal, then the Sanitation District may award the bid based on Local Preference. If neither or both bidders are Local Businesses, the Sanitation District shall award the bid based on the drawing of lots. If the lowest Responsive and Responsible Bidder refuses to enter into a Contract, then the lowest Responsive and Responsible Bidder shall forfeit its bidder's security, and the Contract shall be awarded to the next lowest Responsive and Responsible Bidder. B. Design-Build. As may be authorized by the Public Contract Code or other statute, the Sanitation District may utilize a design-build selection process for the award of Public Works Contracts. C. Prequalification. The Purchasing Manager may limit the field of prospective bidders for Public Works Contracts by prequalifying Contractors pursuant to California Public Contract Code Section 20101 and the requirements of this subsection 5.02(C). Prequalification shall only be required when the Purchasing Manager or the Director of Engineering determines that prequalification is necessary or desirable. The Purchasing Manager may (i) prequalify a list of Contractors for the right to bid on any specific Public Works Project, and/or (ii) prequalify lists of Contractors for the right to bid on unspecified projects of a certain type or size pursuant to Public Contracts Code section 20101(c). If the Purchasing Manager elects to prequalify lists of Contractors for the right to bid on unspecified projects of a certain type or size, he or she shall conduct a prequalification process quarterly, and all qualifications shall be valid for one year. For each prequalified list of either type, the Purchasing Manager shall evaluate and prequalify Contractors pursuant to the following procedures: (1) Questionnaires and Rating Criteria. The Purchasing Manager shall develop a questionnaire and rating criteria for each prequalification. All criteria shall be relevant and objective. The Purchasing Manager may rely on the Department of Industrial Relations model guidelines, questionnaires, and forms, and/or establish additional or modified criteria. (2) Statements of Qualifications. The Purchasing Manager shall solicit Statements of Qualifications from prospective bidders. (3) Evaluation Committee. The Purchasing Manager shall convene an evaluation committee to evaluate each Statement of Qualifications. The Purchasing Manager shall chair the committee, and the Director of OC SAN-XX-24 Engineering shall appoint the remaining committee members. The evaluation committee shall review each Statement of Qualifications, rate the Contractors according to their qualifications and objective criteria, and determine which Contractors are qualified and which Contractors are not qualified. (4) Notice of Determination. When the evaluation committee completes its review, the Purchasing Manager shall send each Contractor written notice of the committee's determinations regarding that Contractor. If the evaluation committee determines that a Contractor is not qualified, the written notice shall also set forth the basis for that determination and any relevant supporting evidence that the evaluation committee considered. (5) Appeal Process. (a) Notice of Appeal. Any Contractor may appeal to the General Manager any determination of the evaluation committee, including any rating assigned to the Contractor and any decision to disqualify the Contractor, by filing a written notice of appeal within seven (7) working days after the Purchasing Manager mails the notice described in subsection 5.02(C)(4). (b) Hearing. Within five (5) working days of the receipt of an appeal, the General Manager, or a designee of the General Manager who has not been involved in the evaluation of qualifications of Contractors for the project, shall conduct a hearing on the appeal. During the hearing, the affected Contractor or subcontractor shall have the opportunity to rebut any evidence used as a basis for disqualification and to present evidence to the General Manager or the General Manager's designee as to why the prospective bidder should be found qualified. (c) Decision. Within five (5) working days of the conclusion of the hearing, the General Manager or the General Manager's designee shall issue a written decision on the appeal. The decision of the General Manager or the General Manager's designee shall be final. Section 5.03. Exceptions A. Emergencies and Calamities. (1) The provisions of this subsection 5.03(A) apply in the event of an emergency or calamity involving a sudden, unexpected occurrence that poses a clear and imminent danger requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services. In the event of such an emergency or calamity, the Sanitation District may, through Negotiated Procurement, award Contracts to repair or replace facilities, take any directly related and immediate action required by the emergency or calamity, and procure the necessary equipment, OC SAN-XX-25 services, and supplies for those purposes. (2) The General Manager may take the actions described in subdivision (1) above, with the concurrence of the Chair of the Board of Directors and/or the Vice Chair, without obtaining prior approval of the Sanitation District's Board of Directors. In taking any such action, the General Manager shall follow the procedures set forth in Public Contracts Code Section 22050. (3) In the alternative, the Sanitation District's Board of Directors may, by resolution adopted by a four-fifths vote, take the actions described in subdivision above. In taking any such action, the Sanitation District shall follow the procedures set forth in Public Contracts Code 22050. B. Specification of Brand or Trade Name. Notwithstanding subsection 5.02(A)(1)(a)(ii)(6), the specifications for a Public Works Contract may call for a designated material, product, thing, or service by specific brand or trade name without inserting the words "or equal" if the Sanitation District complies with the requirements of the California Public Contract Code section 3400 et seq. The General Manager is authorized to make the findings required under California Public Contract Code section 3400 et seq. The Notice Inviting Bids or Request for Proposals shall state that a particular material, product, thing, or service is necessary or desirable for any of the following purposes: (1) In order that a field test or experiment may be made to determine the product's suitability for future use; (2) In order to match other products in use on a particular public improvement either completed or in the course of completion; (3) In order to obtain a necessary item that is only available from one source; (4) In order to respond to an emergency declared by the Sanitation District, but only if the declaration is approved by a four-fifths vote of the Sanitation District's Board of Directors; or (5) In order to respond to an emergency declared by the state, a state agency, or political subdivision of the state, but only if the facts setting forth the reasons for the finding of the emergency are contained in the public records of the Sanitation District. ARTICLE 6. PROTESTS The Sanitation District shall afford Interested Parties an opportunity to protest the solicitation of bids and proposals and the award of contracts as set forth in this Article 6. The General Manager shall adopt detailed protest procedures consistent with this Article 6. The protest procedures governing any particular procurement shall be set forth in the Notice Inviting Bids or the Request for Proposals, as applicable. OC SAN-XX-26 Section 6.01. Solicitation Protests A. Interested Parties may file a Solicitation Protest Statement with the Purchasing Manager on the grounds that a free and open competition has not taken place, or cannot take place, and/or that a particular specification or requirement is impractical, unduly restrictive, or ambiguous. Each Notice Inviting Bids/Invitation for Bids and Request for Proposals shall identify the date and time that the Solicitation Protest Statement is due, the information required to be included in the Solicitation Protest Statement, the evaluation process, and the types of remedies available. B. The Purchasing Manager shall evaluate each Solicitation Protest Statement and determine what actions, if any, will be taken to remedy any deficiency. The decision of the Purchasing Manager shall be final. Section 6.02. Award Protests A. In connection with any competitive selection process, any Interested Party may file an Award Protest Statement with the Purchasing Manager on the ground that a free and open competition has not taken place in connection with the award recommendation. The Purchasing Manager shall not, however, consider any protest based on a finding that a bid or proposal is not responsive. B. Each Notice Inviting Bids and Request for Proposals shall identify the deadline for Award Protest Statements and describe the information required to be included in any Award Protest Statement, the evaluation process, the appeal process, and the types of remedies available. C. The Purchasing Manager shall evaluate each Award Protest Statement and determine what actions, if any, will be taken to remedy any deficiency. D. If the Protestor wishes to appeal, the Purchasing Manager's decision on an Award Protest Statement, the appeal shall be submitted to the Director of Finance and Administrative Services and the Director of the Department requesting the Procurement. The Director of Finance and Administrative Services and the Director of the Department requesting the Procurement shall evaluate each Award Protest Statement and determine whether to uphold or reject the Purchasing Manager's determination. For Contracts to be awarded by Sanitation District staff, the decision of the Director of Finance and the Director of the Department requesting the Procurement shall be final. For Contracts to be awarded by the Board of Directors, the Board may consider any Award Protest Statements in connection with its consideration of the Contract. Section 6.03. Delay in Award A. Execution of any proposed contract shall be delayed pending resolution of any protests unless one or more of the following conditions is present: OC SAN-XX-27 (1) The items or services being procured are urgently required; (2) Delivery or performance will be unduly delayed by failure to make an award promptly; or (3) Failure to make prompt award will otherwise cause undue harm to the Sanitation District. Section 6.04. Remedies A. If the final decision maker determines that the award or proposed award was not made in accordance with applicable statutes, regulations, policies and/or procedure, the Sanitation District, in its sole discretion, may grant any of the following remedies or any other remedy it deems appropriate: (1) Prior to award, the Sanitation District may issue a new solicitation, make a new selection/award recommendation, or award a contract consistent with applicable statutes, regulations, policies and procedures; (2) Take no further action; or (3) Take any other action that is permitted by law to promote compliance with applicable statutes, regulations, policies and/or procedure. B. In determining the appropriate remedy, if any, the Sanitation District shall consider all the circumstances surrounding the Notice Inviting Bids/Invitation for Bids or Requests for Proposal and/or award, including, but not limited to: (1) The seriousness of any deficiency found to exist in the contracting process; (2) The effect of the action on the competitive process; (3) Any urgency surrounding the contract requirement; and (4) The effect that implementing the remedy will have on the Sanitation District. C. Nothing contained herein shall be construed to act as a limitation on the Sanitation District's choice of remedies or confer any right upon any Interested Party or affected party to a remedy. Section 6.05. Public Documents Solicitation Protest Statements and Award Protest Statements are public documents. The Sanitation District will notify the affected parties when a protest has been submitted, and will provide copies of the Protest Statements to the affected parties upon written request. ARTICLE 7. DELEGATION OF AUTHORITY TO AWARD CONTRACTS OC SAN-XX-28 This Article 7 applies to all Contracts for Goods, Services, and Public Works Projects entered into by the Sanitation District. Section 7.01. Award Authorization A. Delegation by General Manager. The General Manager shall establish written procedures governing the delegation of authority to the Purchasing Manager to award and execute Contracts, Amendments, Change Orders, Renewals, Time Extensions and Assignments consistent with this Ordinance. Upon delegation of authority by the General Manager each Department Director may further delegate authority to initiate a written Requisition consistent with the General Manager's written procedures. B. Original Contracts, Contingencies and Renewals The Board of Directors hereby delegates the authority to award Contracts within specified limits as follows: Delegated Authority Authorized Action General Manager/ Assistant General Manager (1) Authorization to approve and execute Contracts and applicable Renewals for budgeted procurements less than or equal to $100,000. (2) All new procurements between $50,000 and $100,000 are to be reported to the Board of Directors on a quarterly basis. Standing Committees (1) Authorization to approve and execute Contracts and applicable Renewals for budgeted procurements greater than $100,000 and up to or equal to $200,000. (2) Authorization to approve Contingency up to 50%, for a total spending authority of up to $300,000 for each Contract. Board of Directors Authorization to approve and execute Contracts and applicable Renewals for budgeted procurements up to or greater than $200,000, including Contingency. C. Amendments, Change Orders, Renewals, Time Extensions and Assignments OC SAN-XX-29 The Board of Directors hereby delegates the authority to approve Amendments, Change Orders, Renewals, Time Extensions and Assignments in any amount as follows: Delegated Authority Authorized Action General Manager/ Assistant General Manager (1) Authorization to approve and execute Amendments and Change Orders as long as the Amendment or Change Order is recommended by the applicable Department Director, and (a) the Amendment or Change Order does not change the contract price or the new contract price is within the delegated authority, or (b) the Amendment or Change Order is within the approved contingency. (2) Authorization to approve and execute any Renewals that were originally approved by the General Manager, Standing Committee and/or Board of Directors. (3) Authorization to approve and execute Amendments and Change Orders for Contract Time Extensions (a) without any increase in Contract price; or (b) with an increase in Contract price within the approved Contingency originally approved by the General Manager, Standing Committee and/or Board of Directors. (4) Authorization to approve and execute all Assignments unless determined by the General Manager that the assignment contains material changes and requires approval of the awarding authority. (5) Authorization to approve and execute Amendments to chemical Contracts unless the Contract unit price has increased beyond the unit price contingency approved by the Sanitation District’s Standing Committee and/or Board of Directors. (6) Authorization to approve and execute chemical contract Renewals including changes to the unit price, increases or decreases to the estimated annual / or specified term amount. Increases that cause OC SAN-XX-30 the contract amount to exceed the General Manager’s delegated authority shall be approved by the Standing Committee and/or Board of Directors. Section 7.02. Contingency Release The General Manager/Assistant General Manager shall manage the release of all contingency funds for use in all amendments and change orders within the approved contingency amounts. Section 7.03. Task Orders The Board of Directors hereby delegates the authority to award Task Orders within specified limits as follows: Delegated Authority Authorized Action General Manager/ Assistant General Manager (1) For Task Orders covered under Article 2. Goods and Services, authorization to approve and execute Task Orders and/or Amendments to the Task Orders provided the cumulative total of the Task Order and Amendments thereto does not exceed $300,000, upon the recommendation of the Department Director (2) For Task Orders covered under Article 2. Goods and Services, all new Task Order procurements between $50,000 and $300,000 are to be reported to the Board of Directors on a quarterly basis, in arrears. (3) For Task Orders covered under Article 3. Professional Services of this Ordinance, authorization to approve and execute Task Orders and/or Amendments to the Task Orders provided the cumulative total of the Task Order and Amendments thereto does not exceed $100,000, upon the recommendation of the Department Director. (4) For Task Orders covered under Article 4. Professional Design Services, authorization to approve and execute Task Orders and/or Amendments to the Task Orders provided the cumulative total of the Task Order and OC SAN-XX-31 Amendments thereto does not exceed $300,000, upon the recommendation of the Department Director. (5) For Task Orders covered solely under Article 4, Professional Design Services of this Ordinance, the General Manager may delegate authorization to approve and execute Professional Design Service master contract Task Orders up to or equal to $100,000, which is inclusive of amendments to Task Orders, to the Director of Engineering. This authorization may not be sub delegated further. This authorization does not apply to master contracts covered under Article 2 or Article 3 of this Ordinance. Standing Committees (1) For Task Orders covered under Article 3. Professional Services of this Ordinance, authorization to approve Amendments to the Task Orders where the cumulative value exceeds $100,000 provided the cumulative total of the Task Order and Amendments does not exceed $200,000, upon the recommendation of the General Manager/Assistant General Manager. Board of Directors (1) For Task Orders covered under Article 2. Goods and Services, all Task Orders and/or amendments where the cumulative value exceeds $300,000 shall be approved by the Board of Directors. (2) For Task Orders covered under Article 3. Professional Services, all Task Orders and/or amendments that exceed $200,000 shall be approved by the Board of Directors. (3) For Task Orders covered under Article 4. Professional Design Services, all Task Orders and/or Amendments that exceed $300,000 shall be approved by the Board of Directors. ARTICLE 8. ETHICS Section 8.01. Unlawful Consideration Prohibited Sanitation District Officials shall neither solicit nor receive bribes, rebates, kickbacks, and/or any other unlawful consideration from any contracting party, or any party OC SAN-XX-32 seeking a Contract with the Sanitation District, in exchange for favorable treatment or any other action. Section 8.02. Conflicts of Interest A. Compliance with the Political Reform Act. Sanitation District Officials shall not make any Contracts, participate in the making of any Contracts, or in any way attempt to use their official positions to influence any decision on any Contracts, in violation of Government Code Sections 87100 et seq. B. Compliance with Government Code § 1090. Without limiting the requirements of Part A above, no Sanitation District Official shall make any Contract, participate in the making of any Contract, or in any way attempt to use his or her official position to influence any decision on a Contract, in violation of California Government Code Section 1090. C. Requirements Applicable to Consultants. Consultants designated by the Sanitation District's Conflict of Interest Code shall comply in all respects with Government Code Section 87100 et seq., and it's implementing regulations. ARTICLE 9. DEFINITIONS Amendment means a properly executed written agreement entered into and between the Sanitation District and the Contractor, or issued by the Sanitation District, covering modifications to the original Contract and which may result in adjustments to provisions of the Contract, including, but not limited to, terms, scope of work, compensation, and/or period of performance. Assignment means to revise Contracts and related records to reflect changes such as the sale, transfer, or reorganization of a Contractor’s business, or a change in the Contractor’s name for doing business, as long as all other terms and conditions of the original Contract remain the same. Award Protest Statement shall mean a written objection to the award recommendation prior to final action to award the contract, which shall be submitted after receipt of sealed bids/proposals, but before award of a contract, as specified herein. Best value means the overall combination of quality, price, and other elements of a proposal/bid (or combination of several proposals/bids) that, when considered together, OC SAN-XX-33 provide the greatest overall benefit in response to the requirements described in the solicitation documents. Change Order means a properly executed written agreement entered into and between the Sanitation District and the Contractor, or unilaterally issued by the Sanitation District, covering modifications to the original Contract, and which may result in adjustments to the provisions of the Contract, including, but not limited to, terms, scope of work, cost and/or period of performance. Competitive Sealed Bids means a selection process whereby prospective Contractors submit sealed bids and the Contract is awarded to the lowest Responsive and Responsible Bidder. Competitive Sealed Proposals means a selection process whereby prospective Contractors submit sealed proposals and the Contract is awarded to the proposal that best meets the criteria specified in the Request for Proposals. Contingency means an amount above the original Contract price, as awarded by the delegated authority, established at the time of Contract award, as may be amended thereafter, to be used for Contract changes. Contract means any type of agreement for the purchase of Goods, Services, and/or Public Works Projects. Contracts may be labeled in various different ways, including, but not limited to, "contract," "agreement," "purchase order," and "task order." Contractor means any person or entity that has a Contract with the Sanitation District. Department means one of the Sanitation District's designated departments. Design-Bid-Build means a selection process for the award of Public Works Contracts involving three basic steps: (1) the Sanitation District hires a design professional to prepare detailed plans and specifications or the Sanitation District prepares detailed plans and specifications; (2) the Sanitation District solicits bids from construction firms based on the detailed plans and specifications; and (3) the Sanitation District awards the Contract to the lowest Responsive and Responsible Bidder. Design-Build means a selection process for the award of Public Works Contracts involving two basic steps: (1) the agency solicits proposals from pre-qualified firms to design and construct a project; and (2) depending on the award criteria set forth in the Request for Proposals, the agency awards the Contract to either (a) the lowest Responsive and Responsible Bidder, or (b) the proposal that presents the "best value." Designee means a person selected or authorized to temporarily manage the duty or role of another employee. Director means a director of one of the Sanitation District's designated departments, or his or her designee(s). OC SAN-XX-34 Director of Engineering means the Sanitation District's Director of Engineering or his or her designee(s). General Manager means the General Manager of the Sanitation District, or his or her designee(s). Goods means fixed, movable, disposable, and/or reusable products, commodities, equipment, materials, supplies or items used by the Sanitation District, and excludes land or any interest in real property. Interested Party shall mean: (1) on solicitation, all bidders or proposers, and prospective bidders or proposers; (2) on award, the unsuccessful bidder or proposer with a direct economic interest in the outcome of their protest. Local Business shall mean a business that has a principal business office, or a satellite office with at least one full-time employee, that is located within the Sanitation District service area. Local Preference shall mean a preference for a Local Business over a business that is not a Local Business. Mailing means transmission by United States Postal Service, electronic mail, or facsimile. Negotiated Procurement means a selection process whereby the Purchasing Manager identifies one or more prospective Contractors of his or her choice, negotiates with one or more of them, and awards the Contract to one of them based on the best interest of the Sanitation District. Notice Inviting Bids means all documents, whether attached or incorporated by reference, utilized for soliciting bids. Procurement means buying, purchasing, renting, leasing, or otherwise acquiring any goods, services, construction, construction services, or professional services, including professional design services. It also includes all functions that pertain to the obtaining of any goods, services, or construction, including description of requirements, election and solicitation of sources, preparation and award of contract, and all phases of contract administration. Professional Services means (i) services provided by professionals that involve specialized judgment, skill, and expertise, and (ii) incidental services that professionals, and those in their employ, may logically or justifiably perform. Professional Services include, but are not limited to, services provided by accounting, financial, information technology, human resources consultation and advocacy, legislative advocacy, and scientific research/consulting firms. OC SAN-XX-35 Professional Design Services means architectural, landscape architectural, engineering, environmental, land surveying, construction project management, planning and other miscellaneous engineering related services retained by the Sanitation District in connection with, but not limited to, construction, alteration, and/or repair projects. Public Works/Public Works Project means a project involving the construction, erection, or alteration of any type of structure, building, or improvement other than sewerage maintenance or repair projects. Purchasing Manager means the Sanitation District's Contracts, Purchasing and Materials Management Manager, or his or her designee(s). Purchasing Manager designee means an employee residing under Contracts, Purchasing and Materials Management Division whose job duties include contracting and procurement execution and administration. Renewal means a mechanism within an approved contract to provide the same goods/services for an additional period of time, at the specified price under the same terms and conditions. The number of renewals, the price, and any contingencies are approved at the time of award. Renewals may or may not increase the contract price. The contract price per term does not accumulate for purposes of approval thresholds. A Renewal may be exercised fewer times or for a shorter duration than the approved number or term, but any remaining time cannot be transferred to an additional renewal. Renewals cannot be added nor entered into for longer than the approved number or term at the time of award. Request for Proposals means all documents, whether attached or incorporated by reference, utilized for soliciting proposals. Request for Qualifications means a request for detailed information concerning the qualifications of prospective Contractors. Requisition means an approved written document making a request for Goods and Services in advance of initiating a procurement process as well as a later request to amend, change, renew, cancel or extend time to a non-public works contract. Responsible Bidder means a bidder who has demonstrated the attribute of trustworthiness, as well as quality, fitness, capacity, and e xperience to satisfactorily perform the requested services or project. Responsive Bidder/Proposer means a bidder/proposer who has submitted a bid/proposal which conforms in all material respects to the Notice Inviting Bids/Invitation for Bids/Request for Proposals. Sanitation District means the Orange County Sanitation District. Sanitation District Board or Board means the Board of Directors of the Orange County Sanitation District. OC SAN-XX-36 Sanitation District Official means any member of the Sanitation District's Board of Directors, any Sanitation District employee, and any Sanitation District consultant that is designated under the Sanitation District's Conflict of Interest Code. Services means the furnishing of materials, labor, time, or effort by a Contractor. Services include both general services janitorial, landscape, repair, maintenance, etc.) professional services, and professional design services, unless otherwise specified. Sealed (Bids or Proposals) means the submittal of bids or proposals, either in paper or electronic format, whereby the bid or proposal documents are opened at a specific time and not before. Sole Source Procurement means the acquisition of Goods and/or Services from a single source. Solicitation Protest Statement shall mean a written objection during the solicitation phase of the procurement, which shall be submitted prior to the bid/proposal due date as specified herein. Standing Committee means one of the permanent committees designated by the Board of Directors as "Standing Committees." Task Order means a written document pursuant to a Contract issued by the Purchasing Manager which provides for the issuance of orders, containing a defined budget, scope of services, and schedule, and authorizes a Contractor to incur a specified amount for the performance of tasks. Time Extension means an increase to the period of performance specified by the original contract only, as may be amended. ARTICLE 10. MISCELLANEOUS Section 10.01. Noncompliance Any Contract entered into which fails in any respect to comply with the provisions of this Ordinance may be voided by the Board of Directors in its sole and absolute discretion. Any employee who willfully and knowingly violates any provision of this Ordinance may be subject to disciplinary action. Section 10.02. Effective Date This Ordinance No. OC SAN-XX shall take effect June 26, 2021, upon adoption by the Board of Directors. Section 10.03. Repeal of Ordinance No. OCSD-52 Ordinance No. OCSD-52, entitled "An Ordinance of the Board of Directors of the OC SAN-XX-37 Orange County Sanitation District Establishing Requirements and Procedures for the Purchase of Goods, Services, and Public Works Projects; and repealing Ordinance No. OCSD-47" is hereby repealed in its entirety. Section 10.04. Certification and Publication. The Clerk of the Board shall certify to the adoption of this Ordinance, and shall cause a summary to be published in a newspaper of general circulation within 15 days as required by law. OC SAN-XX-38 PASSED AND ADOPTED by a majority of the Board of Directors of the Orange County Sanitation District at a Regular Meeting held on May 26, 2021. ATTEST: Kelly A. Lore, MMC Clerk of the Board APPROVED AS TO FORM: Bradley R. Hogin General Counsel David John Shawver Chairman of the Board of Directors 1288720.1 STATE OF CALIFORNIA ) ) SS COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of Orange County Sanitation District, do hereby certify that the above and foregoing Ordinance No. OC SAN-XX was introduced for first reading at a regular meeting of said Board on the 28th day of April 2021, and passed and adopted at a regular meeting of said Board on the 26th day of May 2021, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand this 28th day of May 2021. Kelly A. Lore, MMC Clerk of the Board Orange County Sanitation District ADMINISTRATION COMMITTEE Agenda Report Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 File #:2021-1554 Agenda Date:4/14/2021 Agenda Item No:5. FROM:James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: FY 2021-22 OPERATING BUDGET UPDATE GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Information Item. BACKGROUND Discussion of the Orange County Sanitation District (OC San) FY 2021-22 Budget Update was initiated at the February 10, 2021 Administration Committee meeting. During this process, staff provides presentations to the Administration and Operations Committees focusing on various areas of the budget. Staff will make a brief presentation on the expenditure details of the Operating Budget at the Committee meeting. The Budget Update, effective July 1 of this year, will be presented for adoption at the June 23, 2021 Board meeting. RELEVANT STANDARDS ·Produce Operating and CIP budgets every two years with annual update ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: N/A Orange County Sanitation District Printed on 4/7/2021Page 1 of 1 powered by Legistar™ OC6SAN ORANGE COUNTY SANITATION DISTRICT ADMINISTRATION COMMITTEE Agenda Report Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 File #:2021-1578 Agenda Date:4/14/2021 Agenda Item No:6. FROM:James D. Herberg, General Manager Originator: Rob Thompson, Assistant General Manager SUBJECT: ORANGE COUNTY SANITATION DISTRICT COLLECTION SYSTEM GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Information Item. BACKGROUND Each month, staff provides an informational presentation on topics of interest to the Board of Directors. This month’s topic: Orange County Sanitation District Collection System. RELEVANT STANDARDS ·24/7/365 treatment plant reliability ·Maintain a culture of improving efficiency to reduce the cost to provide the current service level or standard ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: ·Presentation Orange County Sanitation District Printed on 4/6/2021Page 1 of 1 powered by Legistar™ OC6SAN ORANGE COUNTY SANITATION DISTRICT 4/6/2021 1 Wastewater Collection System Robert Thompson, Assistant General  Manager Administration  Committee April 14, 2021 388   miles of sewers 480 square miles 189 million gallons per day 2.6 million population 20 cities, 4 special districts 15 pump stations 2treatment plants Our Service Area 2 1 2 • • 4/6/2021 2 Wastewater Collection System City  Local SewerManhole Private Lateral OC San Regional Trunkline Ocean OutfallOC San Treatment Plants City  Manhole To Orange County Water District 3 • OC San relevant standard – 2.1 sewer spills per 100 miles. • Collections’ goal – 0 spills Our Goal ‐Prevent Sewer Spills 4 3 4 W R S ~• G '""~"· •• Oll)uNow'.UtaD,,_~ 4/6/2021 3 • Various pipe materials • Trunks, interconnections, reliefs • Inverted siphons • Diversions Gravity Systems 5 • Flush work • Grit removal • Spill prevention • Tire cleaning • Grit removal • Spill prevention • Line proofing Line Cleaning Types 6 5 6 ;, 5 -I IU.:>11 VVVI I'- • Grit removal • Spill prevention • Tire cleaning • Grit removal • Spill prevention • Line proofing 4/6/2021 4 Line Flushing 7 8 Mechanical Cleaning ‐Tire Tire cleaning • Grit removal • Spill prevention • Line proofing 7 8 8 4/6/2021 5 9 Mechanical Cleaning ‐Tire • Mechanical cleaning means employed by OC San • Pump stations - 15 • Force mains - 20 miles Pressure Systems 10 9 10 4/6/2021 6 • Operational rounds • Pump maintenance • Wet well cleaning • Controls/calibration • Electrical maintenance • Bypass contingency Pump Station Maintenance 11 • Bypass pumping • Emergency response • Critical maintenance • Assessments • Bypass pumping design • Unique to each station • Agile and quick assembly Pump Station Resiliency 12 11 12 4/6/2021 7 • State enforcement • Damage prevention • Other entity request • Centralized system through state: Dig-Alert system • Field locating and marking Underground Line Locating 13 Regional Odor Control 14 13 14 Liquid Treatment Chemical Tanks • Ferroos Chloride (5) • Calcium Nitrate (4) • Magnesium Hydroxkle (4) • In Con~truct,on / In Progre.u (3) Trunk Lines Continuous Liquid-Treatment Baker-Main Euclid Knott Miller-Holder Newport 36 Caustic Batching Manholes ;::-.;:::,~:~:::~::• (PQP) Yorba Linda / ,ur,,~ TO AUNDA OdorControlStatlon H•1•r-Paclflcm P'LAC TIA O Siphon Treatment BueN P•tk f lu,; A. SARI Vapor Scrubber LA "" •Goodman Industrial Center (GIC) 10 8• O.mollsh•d .. , ' ~'""'.r.l~ .. , "YP'II:£ s w.u. LOI TANlON OltANO;AltK AµMTOI SO CIAltD City of SB e ifffany PS'o Adolfo Lopez PS •-IJ.,1 i, N5n In Con,tructlon • SeilUl~~C~.J Mid ay City u.NTA Pump Station Sanltiry Dlstrlct·HA IUCM I Crystal Cove Pump Station N A Re,111~ 4/6/2021 8 • Magnesium Hydroxide• Raises pH to keep 𝐻𝑆ି in solution • Ferrous Chloride (Ferric Salts)• Oxidize sulfide to sulfur • Precipitates sulfide as ferric sulfide • Calcium Nitrate (Bioxide)• Naturally occurring bacteria biochemically oxidize dissolved sulfide in the presence of nitrate • Sodium Hydroxide• Sloughs off slime layer Odor Control Chemicals 15 • Proactive outreach • Investigate • GIS tracking of “Hot Spots” • Received AAEES award and patent for approach Regional Odor Control Efforts 16 15 16 SO ,· + organic matt~r s·+ 2w ___ - anaerobic bacteria H,S S"+H,O+CO, 4/6/2021 9 • Asset inspection • Structural degradation and cleaning • Project scoping • Spill prevention CCTV 17 • Assisted Costa Mesa Sanitary District (CMSD) and East Orange County Water District (EOCWD) with SSO response • Assisted Irvine Ranch Water District (IRWD) with cleaning Agency Assistance 18 17 18 I ~ : 74.6 ... Roots Medium Joint Position: 7 To 1 Severity: None Percent: 10 Joint Maint Weight: 3 4/6/2021 10 Questions ? 19 19 ORANGE COUNTY SANITATION DISTRICT COMMON ACRONYMS ACWA Association of California Water Agencies LOS Level Of Service RFP Request For Proposal APWA American Public Works Association MGD Million Gallons Per Day RWQCB Regional Water Quality Control Board AQMD Air Quality Management District MOU Memorandum of Understanding SARFPA Santa Ana River Flood Protection Agency ASCE American Society of Civil Engineers NACWA National Association of Clean Water Agencies SARI Santa Ana River Interceptor BOD Biochemical Oxygen Demand NEPA National Environmental Policy Act SARWQCB Santa Ana Regional Water Quality Control Board CARB California Air Resources Board NGOs Non-Governmental Organizations SAWPA Santa Ana Watershed Project Authority CASA California Association of Sanitation Agencies NPDES National Pollutant Discharge Elimination System SCADA Supervisory Control And Data Acquisition CCTV Closed Circuit Television NWRI National Water Research Institute SCAP Southern California Alliance of Publicly Owned Treatment Works CEQA California Environmental Quality Act O & M Operations & Maintenance SCAQMD South Coast Air Quality Management District CIP Capital Improvement Program OCCOG Orange County Council of Governments SOCWA South Orange County Wastewater Authority CRWQCB California Regional Water Quality Control Board OCHCA Orange County Health Care Agency SRF Clean Water State Revolving Fund CWA Clean Water Act OCSD Orange County Sanitation District SSMP Sewer System Management Plan CWEA California Water Environment Association OCWD Orange County Water District SSO Sanitary Sewer Overflow EIR Environmental Impact Report OOBS Ocean Outfall Booster Station SWRCB State Water Resources Control Board EMT Executive Management Team OSHA Occupational Safety and Health Administration TDS Total Dissolved Solids EPA US Environmental Protection Agency PCSA Professional Consultant/Construction Services Agreement TMDL Total Maximum Daily Load FOG Fats, Oils, and Grease PDSA Professional Design Services Agreement TSS Total Suspended Solids gpd gallons per day PFAS Per- and Polyfluoroalkyl Substances WDR Waste Discharge Requirements GWRS Groundwater Replenishment System PFOA Perfluorooctanoic Acid WEF Water Environment Federation ICS Incident Command System PFOS Perfluorooctanesulfonic Acid WERF Water Environment & Reuse Foundation IERP Integrated Emergency Response Plan POTW Publicly Owned Treatment Works WIFIA Water Infrastructure Finance and Innovation Act JPA Joint Powers Authority ppm parts per million WIIN Water Infrastructure Improvements for the Nation Act LAFCO Local Agency Formation Commission PSA Professional Services Agreement WRDA Water Resources Development Act ORANGE COUNTY SANITATION DISTRICT GLOSSARY OF TERMS ACTIVATED SLUDGE PROCESS – A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen and consume dissolved nutrients in the wastewater. BENTHOS – The community of organisms, such as sea stars, worms, and shrimp, which live on, in, or near the seabed, also known as the benthic zone. BIOCHEMICAL OXYGEN DEMAND (BOD) – The amount of oxygen used when organic matter undergoes decomposition by microorganisms. Testing for BOD is done to assess the amount of organic matter in water. BIOGAS – A gas that is produced by the action of anaerobic bacteria on organic waste matter in a digester tank that can be used as a fuel. BIOSOLIDS – Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high-quality product can be recycled as a soil amendment on farmland or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. CAPITAL IMPROVEMENT PROGRAM (CIP) – Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities. COLIFORM BACTERIA – A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere, used as indicators of sewage pollution. E. coli are the most common bacteria in wastewater. COLLECTIONS SYSTEM – In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. CERTIFICATE OF PARTICIPATION (COP) – A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. CONTAMINANTS OF POTENTIAL CONCERN (CPC) – Pharmaceuticals, hormones, and other organic wastewater contaminants. DILUTION TO THRESHOLD (D/T) – The dilution at which the majority of people detect the odor becomes the D/T for that air sample. GREENHOUSE GASES (GHG) – In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming (“greenhouse effect”). GROUNDWATER REPLENISHMENT SYSTEM (GWRS) – A joint water reclamation project that proactively responds to Southern California’s current and future water needs. This joint project between the Orange County Water District and OCSD provides 70 million gallons per day of drinking quality water to replenish the local groundwater supply. LEVEL OF SERVICE (LOS) – Goals to support environmental and public expectations for performance. N-NITROSODIMETHYLAMINE (NDMA) – A N-nitrosamine suspected cancer-causing agent. It has been found in the GWRS process and is eliminated using hydrogen peroxide with extra ultra-violet treatment. NATIONAL BIOSOLIDS PARTNERSHIP (NBP) – An alliance of the NACWA and WEF, with advisory support from the EPA. NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. PER- AND POLYFLUOROALKYL SUBSTANCES (PFAS) – A large group (over 6,000) of human-made compounds that are resistant to heat, water, and oil and used for a variety of applications including firefighting foam, stain and water-resistant clothing, cosmetics, and food packaging. Two PFAS compounds, perfluorooctanesulfonic acid (PFOS) and perfluorooctanoic acid (PFOA) have been the focus of increasing regulatory scrutiny in drinking water and may result in adverse health effects including developmental effects to fetuses during pregnancy, cancer, liver damage, immunosuppression, thyroid effects, and other effects. PERFLUOROOCTANOIC ACID (PFOA) – An ingredient for several industrial applications including carpeting, upholstery, apparel, floor wax, textiles, sealants, food packaging, and cookware (Teflon). PERFLUOROOCTANESULFONIC ACID (PFOS) – A key ingredient in Scotchgard, a fabric protector made by 3M, and used in numerous stain repellents. PLUME – A visible or measurable concentration of discharge from a stationary source or fixed facility. PUBLICLY OWNED TREATMENT WORKS (POTW) – A municipal wastewater treatment plant. SANTA ANA RIVER INTERCEPTOR (SARI) LINE – A regional brine line designed to convey 30 million gallons per day of non-reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal, after treatment. SANITARY SEWER – Separate sewer systems specifically for the carrying of domestic and industrial wastewater. 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. ORANGE COUNTY SANITATION DISTRICT GLOSSARY OF TERMS 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.