HomeMy WebLinkAbout07.a. Approve changes to General Manager authoritiesCentral Contra Costa Sanitary District
' BOARD OF DIRECTORS , Q.
POSITION PAPER
Board Meeting Date: December 15, 2011
Subject: RESOLUTION SETTING FORTH AND DELEGATING CERTAIN
AUTHORITIES TO THE GENERAL MANAGER, AND RESCINDING
PRIOR RESOLUTION
Submitted By: Elaine R. Boehme Initiating Dept./Div.: Administration
Secretary of the District
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
coaxo4� . / t �- A-�) 04-kl
E. Boehme �,KlAfi An Ve rrell m M. Kelly,
Deputy erall Mgrl eral Manager
Direcf Eng.
ISSUE: Revisions to the General Manager authority are recommended to increase
certain authority limits and other minor changes.
RECOMMENDATION: Adopt Resolution 2011 -065 (attached) and rescind the prior
General Manager Authority Resolution 2010 -090.
FINANCIAL IMPACTS: None.
ALTERNATIVES /CONSIDERATIONS: The Board may decide it does not wish to
adopt an updated resolution, or may wish to change proposed General Manager
authority.
BACKGROUND: On November 19, 2009 the Board adopted Resolution 2009 -106,
consolidating and clarifying General Manager authority which was contained in various
historical resolutions and documents, and rescinding prior resolutions.
On October 10, 2010, Resolution 2009 -106 was rescinded and replaced with
Resolution 2010 -090, which amended the General Manager authority by stating that his
or her authority regarding the District's Emergency Operations Plan is contained
separately within Resolution 2010 -089 and the Plan document itself.
Staff is proposing several changes to the current resolution, summarized below.
Section 6 — Claims Handling Authority
Staff is recommending revising the General Manager's claims settlement
authority to allow, compromise or settle claims against the District from the
current $25,000 to $50,000, with the understanding that settlements between
$25,000 and $50,000 would be reported to the Board as information items at a
Page 1 of 3
POSITION PAPER
Board Meeting Date: December 15, 2011
Subject. RESOLUTION SETTING FORTH AND DELEGATING CERTAIN
AUTHORITIES TO THE GENERAL MANAGER, AND RESCINDING
PRIOR RESOLUTION
following Board meeting, and all settlements reported to the Budget and Finance
Committee.
It is also proposed that the Board delegate to the General Manager the authority
to act on its behalf pursuant to Government Code Sections 910, et seq. to reject,
return as insufficient, or return as untimely any claims against it, and to provide
any notices authorized under those statutes on behalf of the District
These proposed revisions have been reviewed by the Budget and Finance
Committee, which recommends approval. The Budget and Finance Committee
will continue to see all claims and claim settlements.
Section 7 — Execution of Joint Powers Agreements
The authority to sign Joint Powers Agreements is proposed to increase from
$50,000 to $100,000.
Section 8 - Delegation of Authority to Award Contracts for "District Projects" Not
Exceeding $100,000
The General Manager is authorized to award contracts for District Projects of a
value greater than $15,000 and not more than $100,000, provided that a formal
bid process is conducted in accordance with Public Contracts Code Section
20801, et seq.
Section 9 — Additional Delegations and Limitations on Authority
This section refers to authorities for Capital Improvement Budget and Purchasing
and Policies and Procedures. It is proposed to increase General Manager
approval authority to a consistent $100,000 for all types of consultant
agreements and amendments, construction projects and construction project
change orders and equipment purchases.
A revised Table 3 of the 2011 -12 Capital Budget is attached showing proposed
changes in strikeout.
A revised Chapter 3 entitled "Approvals and Authorizations" and a revised
Chapter 12 entitled "District Projects" of the District's Purchasing Policy and
Procedures are enclosed with proposed changes shown in strikeout.
Page 2 of 3
POSITION PAPER
Board Meeting Date: December 15, 2011
Subject RESOLUTION SETTING FORTH AND DELEGATING CERTAIN
AUTHORITIES TO THE GENERAL MANAGER, AND RESCINDING
PRIOR RESOLUTION
These proposed revisions have been reviewed by the Capital Projects
Committee, which recommends approval.
A copy of the proposed amended Resolution 2011 -065 incorporating the above
changes is attached in strikeout.
To be adopted, this resolution must be passed by a four -fifths vote of the Board of
Directors (as required by the Public Contract Code Section 22050(b)(1)). If this
resolution is approved, there will be some minor District Code revisions proposed to
codify certain portions of the General Manager authority.
RECOMMENDED BOARD ACTION:
(1) Adopt Resolution 2011 -065 revising General Manager authority as
recommended and rescinding Resolution 2010 -090;
(2) Authorize revision to Table 3, "Capital Improvement Program Authorization
Limits ", of the 2011 -12 Capital Improvement Budget as recommended; and
(3) Authorize revision to Chapters 3 and 12 entitled "Approvals and Authorizations"
and "District Projects" of the District's Purchasing Policy and Procedures Manual
as recommended.
Attachments: Attachment 1: Resolution 2011 -065
Attachment 2: Resolution 2011 -065 in strikeout
Attachment 3: Table 3, Capital Projects Budget, in strikeout
Attachment 4: Chapter 3, District Purchasing Policies and Procedures, in strikeout
Attachment 5: Chapter 12, District Purchasing Policies and Procedures, in strikeout
Page 3 of 3
ATTACHMENT 1
RESOLUTION NO. 2011 -065
A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT
SETTING FORTH AND DELEGATING CERTAIN AUTHORITIES
TO THE GENERAL MANAGER AND RESCINDING RESOLUTION 2010 -090
WHEREAS, the proper functioning of the Central Contra Costa Sanitary District
( "District ") requires that the General Manager and his or her staff have adequate
authority to carry out both the routine and reoccurring functions as well as the
emergency functions of the District; and
WHEREAS, in past years the District Board of Directors ( "Board ") has provided for
delegation of certain authority to prior General Managers and staff to carry out a variety
of necessary functions of the District; and
WHEREAS, the Board has also provided and continues to provide both delegation of
authority and limitations on staff authority through the approval and adoption of certain
other documents, such as the District Purchasing Policy and Procedures and the
Capital Budget; and
WHEREAS, adopting a resolution which consolidates the delegation authorized in prior
resolutions and other documents will clarify the authority of the General Manager and
his or her designee and help to ensure the efficient operation of the District.
THEREFORE, the Board hereby resolves that the General Manager and his or her
designee shall have the authority to carry out the functions of the District as follows:
Section 1: General Authorization - The General Manager is authorized to execute all
deeds, contracts, warrants, releases, receipts and similar documents for and on behalf
of the District in accordance with California Health and Safety Code Section 6487,
including all documents prepared and circulated as part of the public competitive
bidding process, with the exception of financial transactions as defined in Government
Code Section 53995.
Section 2: Emergency Power Authorization
a. Pursuant to Public Contract Code Section 22050(b)(1), the Board delegates its
power to the General Manager to take any directly - related and immediate action
required by an emergency, as defined in Public Contract Code Section 1102, and
to procure the necessary equipment, services, and supplies for those purposes,
when the expenditures exceed $15,000, without giving notice for bids to let
contracts.
b. In the event of an emergency, as defined, the General Manager shall report to
the Board not later than seven (7) days after the action, or at its regularly
Resolution 2011 -065
Page 2 of 4
scheduled meeting if that meeting will not occur later than fourteen (14) days
after the action, the reasons justifying why the emergency will not permit a delay
resulting from a competitive solicitation for bids and why the action is necessary
to respond to the emergency.
C. In the event of an emergency, as defined, the Board shall initially review the
emergency action not later than seven days after the action, and at least at every
regularly scheduled meeting thereafter until the action is terminated, to
determine, by a four -fifths (4/5) vote, that there is a need to continue the
emergency action, unless the General Manager has terminated that action prior
to the Board's review of that action.
d. Upon its review of the emergency action, the Board shall terminate that action at
the earliest possible date that conditions warrant so that the remainder of the
emergency action necessitated by the emergency may be completed by giving
notice for bids to let contracts.
Section 3: District Emergency Operations Plan
The General Manager is designated as the Director of Emergency Services and has the
authority set forth in Resolution 2010 -089, or as set forth in the most recently adopted
Emergency Operations Plan resolution or as amended by State law.
Section 4: Authorization for Easements Acquisitions
a. The General Manager is authorized to purchase easements and offers of
dedication in favor of the District and prepare the documentation as may be
required for recording the property rights with the County Recorder's Office, and
to take other such action as may be required to implement the purposes of the
District in acquiring said easements and offers of dedication.
b. The Board shall retain the sole power to accept by resolution, any and all
easements and offers of dedication received by the District. After acceptance of
an easement or dedication by the Board, the General Manager shall have the
authority to record said easements and offers of dedications for purposes of
giving notice to subsequent property owners.
The General Manager is authorized to purchase or otherwise obtain rights of
entry, approve restoration agreements, encroachment permits and similar
agreements affecting access to or use of real property deemed necessary or
prudent for the carrying out of District activities.
C. The funding for the purchase of easements, offers of dedication and similar rights
of entry-type agreements delegated to the General Manager will be included in
the District's Capital Improvement Budget, which the Board approves each year.
Resolution 2011 -065
Page 3 of 4
Section 5: Authorization for Use of Small Claims Court
a. The General Manager is authorized to file suit in Small Claims Court without
additional specific authorization by the Board to pursue civil remedies against
persons or entities for claims within the general subject matter areas enumerated
below and where the amount of the District's claim (amount in controversy) does
not exceed the monetary limits of the jurisdiction of California Small Claims
Court. This power includes the power to seek judgments and any other remedies
available within the jurisdiction of Small Claims Court, and to take other
administrative actions necessary to pursue appropriate remedies in Small Claims
Court, including appearing on behalf of the District.
1. Failure to obtain a District permit or violation of any District permit
condition;
2. Failure to perform work in conformance with the District's Standard
Specifications, either on District facilities or facilities which are or will be
connected to the District sewerage system;
3. Failure to comply with inspection requirements of the District with regard
to either private or public sewer facilities;
4. Failure to timely pay fees, lease payments, and charges of the District,
including penalties and interest that may accrue as a result of the
delinquent payments;
5. Damage to, or obstruction of, District facilities, equipment, or property; or
6. Violation of the District Code or failure to comply with any other lawful
resolution or order of the Board .
Section 6: Claims Handling Authority — The Board delegates to the General Manager
the authority to act on its behalf pursuant to Government Code Sections 910, et seq. to
reject, return as insufficient, or return as untimely any claims against it, and to provide
any notices authorized under those statutes on behalf of the District.
Pursuant to Government Code Section 935.4, the Board delegates the authority to the
General Manager to allow, compromise or settle claims against the District not
exceeding $50,000 with the understanding that settlements between $25,000 and
$50,000 would be reported to the Board as information items at a following Board
meeting.
Section 7: Execution of Joint Powers Agreements — The General Manager is
authorized to execute Joint Powers Agreements with cities, counties, special districts
and other government entities relating to Board - approved construction projects, such as
paving or landscaping, where the funds exchanged in the agreement do not exceed
$100,000.
Section 8: Delegation of Authority to Award Contracts for District Projects Not
Exceeding $100,000 — The General Manager is delegated the authority to award
contracts for District Projects of a value greater than $15,000 and not more than
$100,000, provided that a formal bid process is conducted in accordance with Public
Resolution 2011 -065
Page 4 of 4
Contracts Code section 20801, et seq., and sealed bids are solicited and opened by the
Secretary of the District in a public place at a predetermined time. The award shall be
made to the lowest responsible bidder whose bid is responsive to the specifications
issued by the District.
Section 9: Additional Delegations and Limitations on Authority - The General Manager
has the authorizations set forth in the most recent Capital Improvement Budget
(approved by the Board each year), the authorizations set forth in the chapters entitled
"Approvals and Authorizations" and "District Projects" of the District's Purchasing Policy
and Procedures (adopted by the Board), and the authorizations set forth in District Code
Section 2.08.030 to execute all contracts, warrants, releases, receipts, and similar
documents for and on behalf of the District in accordance with California Health and
Safety Code Section 6487, and such authority is incorporated herein by reference,
including any subsequent amendments to any of the above documents as approved by
the Board or as required by law.
Section 10: Rescission of Prior Resolutions - As of the effective date of this resolution,
the existing District Resolution 2010 -090 is rescinded.
PASSED AND ADOPTED this 15th day of December, 2011, by the Board of Directors
of the Central Contra Costa Sanitary District by the following vote:
AYES:
Members:
NOES:
Members:
ABSENT:
Members:
Barbara D. Hockett
President of the Board of Directors
Central Contra Costa Sanitary District
County of Contra Costa, State of California
COUNTERSIGNED:
Elaine R. Boehme, CIVIC
Secretary of the District
Central Contra Costa Sanitary District
County of Contra Costa, State of California
Approved as to form:
Kenton L. Alm, Esq.
Counsel for the District
ATTACHMENT 2
RESOLUTION NO. 2011 -065 t
A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT
SETTING FORTH AND DELEGATING CERTAIN AUTHORITIES
TO THE GENERAL MANAGER AND RESCINDING RESOLUTION 2010 -090
WHEREAS, the proper functioning of the Central Contra Costa Sanitary District
( "District ") requires that the General Manager and his or her staff have adequate
authority to carry out both the routine and reoccurring functions as well as the
emergency functions of the District; and
WHEREAS, in past years the District Board of Directors "Board" has provided for
delegation of certain authority to prior General Managers and staff to carry out a variety
of necessary functions of the District; and
WHEREAS, the Board has also provided and continues to provide both delegation of
authority and limitations on staff authority through the approval and adoption of certain
other documents, such as the District Purchasing Policy and Procedures and and the
Capital Budget; and
WHEREAS, adopting a resolution which consolidates
the delegation authorized in prior resolutions and other documents will clarify the
authority of the General Manager and his or her designee and help to ensure the
efficient operation of the District.
THEREFORE, the Board of DoreGtOrc of the nic+ +r;,,+ hereby resolves that the General
Manager and his or her designee shall have the authority to carry out the functions of
the District as follows:
Section 1: General Authorization - The General Manager is authorized to execute all
deeds, contracts, warrants, releases, receipts and similar documents for and on behalf
of the District in accordance with California Health and Safety Code Section 6487,
including all documents prepared and circulated as part of the public competitive
bidding process, with the exception of financial transactions as defined &et4-G4#+ in
Government Code Section 53995.
Section 2: Emergency Power Authorization
a. Pursuant to Public Contract Code Section 22050(b)(1), the Board delegates its
power to the General Manager to take any directly - related and immediate action
required by an emergency, as defined in Public Contract Code Section 1102, and
to procure the necessary equipment, services, and supplies for those purposes,
when the expenditures exceed $15,000, without giving notice for bids to let
contracts.
Resolution 20101 - 065050
Page 2 of 5
b. In the event of an emergency, as defined, the General Manager shall report to
the s+striEt Board not later than seven (7) days after the action, or at its regularly
scheduled meeting if that meeting will not occur later than fourteen (14) days
after the action, the reasons justifying why the emergency will not permit a delay
resulting from a competitive solicitation forbids and why the action is necessary
to respond to the emergency.
C. In the event of an emergency, as defined, the District Board shall initially review
the emergency action not later than seven days after the action, and at least at
every regularly scheduled meeting thereafter until the action is terminated, to
determine, by a four - fifths (4/5) vote, that there is a need to continue the
emergency action, unless the General Manager has terminated that action prior
to the D+StFiGt Board's review of that action.
d. Upon its review of the emergency action, the Ddstr;Ct Board shall terminate that
action at the earliest possible date that conditions warrant so that the remainder
of the emergency action necessitated by the emergency may be completed by
giving notice for bids to let contracts.
Section 3: District Emergency Operations Plan
The General Manager is designated as the Director of Emergency Services and has the
authority set forth in Resolution 2010 -089, or as set forth in the most recently adopted
Emergency Operations Plan resolution or as amended by State law.
Section 4: Authorization for Easements Acquisitions
a. The General Manager is authorized to purchase easements and offers of
dedication in favor of the District and prepare the documentation as may be
required for recording the property rights with the County Recorder's Office, and
to take other such action as may be required to implement the purposes of the
District in acquiring said easements and offers of dedication.
b. The Board shall retain the sole power to accept by resolution, any and all
easements and offers of dedication received by the District. After acceptance of
an easement or dedication by the Board, the General Manager shall have the
authority to record said easements and offers of dedications for purposes of
giving notice to subsequent property owners.
The General Manager is authorized to purchase or otherwise obtain rights of
entry, approve restoration agreements, encroachment permits and similar
agreements affecting access to or use of real property deemed necessary or
prudent for the carrying out of District activities.
C. The funding for the purchase of easements, offers of dedication and similar rights
of entry-type agreements delegated to the General Manager will be included in
Resolution 20181 - 065898
Page 3of5
the District's Capital Improvement Budget, which the DistriGt Board approves
each year.
Section 5: Authorization for Use of Small Claims Court
a. The General Manager is authorized to file suit in Small Claims Court without
additional specific authorization by the DistriGt Board to pursue civil remedies
against persons or entities for claims within the general subject matter areas
enumerated below and where the amount of the District's claim (amount in
controversy) does not exceed the monetary limits of the jurisdiction of California
Small Claims Court. This power includes the power to seek judgments and any
other remedies available within the jurisdiction of Small Claims Court, and to take
other administrative actions necessary to pursue appropriate remedies in Small
Claims Court, including appearing on behalf of the District.
1. Failure to obtain a District permit or violation of any District permit
condition;
2. Failure to perform work in conformance with the District's Standard
Specifications, either on District facilities or facilities which are or will be
connected to the District sewerage system;
3. Failure to comply with inspection requirements of the District with regard
to either private or public sewer facilities;
4. Failure to timely pay fees, lease payments, and charges of the District,
including penalties and interest that may accrue as a result of the
delinquent payments;
5. Damage to, or obstruction of, District facilities, equipment, or property; or
6. Violation of the District Code or failure to comply with any other lawful
resolution or order of the D Board of no, �rs.
Section 6: Claims Handlings° } +L — , Authority -= The Board delegates to the General
Manager the authority to act on its behalf pursuant to Government Code Sections 910
et seq. to reject, return as insufficient, or return as untimely any claims against it and to
provide any notices authorized under those statutes on behalf of the District.
Pursuant to Government Code Section 935.4, the Board delegates the authority to the
General Manager to allow, compromise or settle claims against the District not
exceeding $25,000_$50 000 with the understanding that settlements between $1 0,000
$25,000 and $25,000_$50 000 would be reported to the nit Board as information
items at a following Dos#r!Gt -Board meeting.
Section 7: Execution of Joint Powers Agreements – The General Manager is
authorized to execute Joint Powers Agreements with cities, counties, special districts
and other government entities relating to Board - approved construction projects, such as
paving or landscaping, where the funds exchanged in the agreement do not exceed
$50;000 100 000..
Resolution 20101 - 065999
Page 4of5
Section 8: Delegation of Authority to Award Contracts for District Projects Not
Exceeding $100,000 — The General Manager is delegated the authority to award
contracts for District Projects of a value greater than $15,000 and not more than
$100,000, provided that a formal bid process is conducted in accordance with Public
Contracts Code section 20801, et seq., and sealed bids are solicited and opened by the
Secretary of the District in a public place at a predetermined time. The award shall be
made to the lowest responsible bidder whose bid is responsive to the specifications
issued by the District.
Section -99: Additional Delegations and Limitations on Authority - The General Manager
has the authorizations set forth in the most recent Capital Improvement Budget
(approved by the Board each year), the authorizations set forth in the Cchapters 0
entitled; "Approvals and Authorizations" and the chapter �n "District Projects" of
the District's Purchasing Policy+es and Procedures (adopted by the Board), and the
authorizations set forth in District Code Section 2.08.030 to execute all contracts,
warrants, releases, receipts, and similar documents for and on behalf of the District in
accordance with California Health and Safety Code Section 6487, and such authority is
incorporated herein by reference, including any subsequent amendments to any of the
above documents as approved by the Board or as required by law.
Section 910: Rescission of Prior Resolutions - As of the effective date of this resolution,
the existing District Resolution 200910 - 4-06090 is rescinded.
PASSED AND ADOPTED this 15th74h day of DecemberOEteber, 20101, by the Board
of Directors of the Central Contra Costa Sanitary District by the following vote:
AYES: Members: HGGket+ i MGRGE;.n* Neje ly IVIGG811
NOES: Members: Ike
ABSENT: Members: NGRe
n Gae R. MGGi11�Barbara D. Hockett
President of the Board of Directors
Central Contra Costa Sanitary District
County of Contra Costa, State of California
COUNTERSIGNED:
Elaine R. Boehme, CIVIC
Secretary of the District
- Central Contra Costa Sanitary District
County of Contra Costa, State of California
Approved as to form:
Kenton L. Alm, Esq.
Counsel for the District
Resolution 20181 - 065898
Page 5of5
ATTACHMENT 3
TABLE 3: CAPITAL IMPROVEMENT PROGRAM AUTHORIZATION LIMITS
Revised November 9, 2011
ACTION
Approve Capital Plan
Authorize Capital Program budgets
Allocate funds to individual project budgets
Professional Consulting Services
Authorize
Consultant Technical Consulting Services
Contracts
Professional Engineering Services
Allocate funds from program contingency accounts to
proiects not included in the CIB
Individual equipment items and equipment contingency
Authorize supplemental funds to program budgets/
contingencv accounts
Allocate funds for project budget overruns
Award construction contracts4
Authorize Additive
construction
change orders Deductive
Subcontractor substitutions
Construction project acceptance
Close out project
GENERAL
MANAGER
None
None
Total program budget
plus contingency'
$50,000 $100,000 or
less
$50,000 $100,000 or
less
$50,000 $100,000 or
less
$000 $100,000 or
less per project
$500 $100,000 or
less
Not applicable
15% of final project
$1000 $100,000 or
less
$50,000 $100,000 or
less
No limit
All substitutions unless
protested by
subcontractor
All projects
All projects
BOARD OF
DIRECTORS
ITRE
R•7�ini
No Board authorization
required
Greater than $50,000
$100,000
Greater than $50,000
$100,000
Greater than $50,000
$100,000
Greater than $25,000
$100,000
Greater than $000
$100,000
Sewer Construction
Fund balance
Greater than 15% of
final project budget3
Greater than $000
$100,000
Greater than $50,000
$100,000
No Board authorization
required
Substitutions protested
by subcontractor
Informational
announcement to the
Board
Informational memo
provided to the Board
at end of fiscal vear
1 Limited by the remaining balances of the applicable program budget and contingency account.
2 Limited by the remaining balance of the applicable program contingency account.
3 Final project budget is established at time of award of construction contract.
4 Bid protests and rejection of all bids must go to Board regardless of dollar amount.
Previous auth„r;+„ Limit Revised authority limit or item.
CHAPTER THREE
APPROVALS AND AUTHORIZATIONS
3.1 Purpose
ATTACHMENT 4
To define authority for signing requisitions, agreements, contracts, invoices,
change orders and other such documents.
3.2 Policy
All signature authority must be delegated in writing and approved by the
Department Director, the District's Controller and the General Manager.
3.3 General Requirements
Designated District employees have been delegated approval authority for
specified District documents within stipulated maximum limits. The delegated
authority is subject to the scope of authority defined by the Board of Directors or
the General Manager. Those documents include, but are not limited to:
a. Contractor Progress Payments
b. Contracts and Agreements
c. Contract Change Orders
d. Agreement Amendments
e. Invoices
f. Requisitions
g. Payment Authorizations
h. Petty Cash Authorizations
i. Procurement Card
i. Blanket Purchase Orders
Approval authority is granted by means of an Authorized Signature List and
Approval Limits Form. The form requires a sample signature of the employee
and is approved by the Department Director, the General Manager and the
Controller. The Authorized Signature List and Approval Limits Form is used by
Finance, Accounting and Purchasing to verify that documents bear proper
approval.
The Board of Directors requires that contracts and amendments return to the
Board for approval at certain specified levels. Procedures for processing the
Authorized Signature List and Approval Limits Form, as well as Contract and
Contract Amendment limits, are included in this chapter.
3.4 Authorized Signature List and Approval Limits Form
a. Department Directors and Managers will initiate a separate Authorized
Signature List and Approval Limits Form for each employee and forward
the form, bearing their approvals, to the Controller for review.
b. The Controller will review the form for general consistency with maximum
approval limits and forward the form to the General Manager for approval.
c. Upon approval by the General Manager, the Controller will retain the
original form for use in Finance and Accounting and forward a copy of the
approved form to the Department Manager, the Purchasing Manager and
the employee.
d. When a manager or supervisor will be absent from the District for twenty -
four hours or more, signature authority will be automatically transferred to
another manager or supervisor, or other designated employee based on
the Automatic Delegation of Authority matrix maintained by the Accounting
Division. Managers or supervisors who will be absent from the District on
planned leave may choose to prepare a delegation of authority memo that
amends the automatic signature authority listed in the matrix.
e. The Controller will initiate an annual review of the Authorized Signature
List and Approval Limits to ensure accuracy.
3.5 Approval of Agreements and Agreement Amendments
3.5.1 Types of Agreements. Generally, there are three types of agreements:
Professional Consulting Services, Technical Consulting Services and
Professional Engineering Services. Each is defined below.
a. Professional Consulting Services Agreement (PCS): Used to contract
for needed services of a non - engineering nature wherein the collection,
analysis and /or translating of information is the consultant's primary
function with the end product being a written document, training and /or
recommendation. For example, auditors, trainers, professional
psychologists, attorneys and financial advisors.
b. Technical Consulting Services Agreement (TCS): Used to contract for
needed services when physical work is being performed such as
surveying and soils investigation. Note: If soils investigation data is being
interpreted, a Professional Engineering Services contract is required.
c. Professional Engineering Services Agreement (PES): Used to
contract for needed services when professional engineering, planning,
design, construction management, construction inspection and /or
architectural services are being performed.
3.5.2 Approval of Agreements. Approval of agreements and amendments to
agreements shall conform to the following approval matrices.
FIGURE 3.A
Staff Authorization Limit for the Approval of Professional Consulting
Agreements, Technical Consulting Agreements
and Professional Engineering Agreements
Authorization Limits*
IF-0
& M 11
Pro'ect/CIB
Professional Consulting Services
$25100,000
$50100,000
Technical Consulting Services
$50100,000
$58100,000
Professional Engineering Services
$50100,000 j
$50100,000
*Note: The amounts listed are the maximum amounts for which staff has been
delegated authority. Individual staff members, based on their position, may have
a lower authority limit. Agreements in an amount greater than the limits listed in
the table above require Board approval of the agreement prior to authorization
and commencement of work.
3.5.3 Amendments to Agreements. Board approval is required for
amendments to Professional Consulting, Technical Consulting and Professional
Engineering Agreements under the following conditions:
a. The amendment is greater than 15% of the original agreement amount-or
$10,000, whiGhever - is greater. -. Note: For agreements in an amount
less than the staff authority limits listed above, staff can make
amendments up to the staff authority limits without applying the 15% er
$10-, 000 criteria.
b. The amendment will cause the agreement to exceed agreement
authorization limit (see table above) and the original agreement did not have
prior Board approval because it fell below the listed authorization limits.
3.6 Approval of Contracts and Contract Change Orders
All contracts and contract change orders that are not professional services as
defined by Government Code Section 4535 (see 3.5 above) and are not District
Projects as defined by Public Contract Code 20801 are within staff authority to
approve and award regardless of the dollar amount. These contracts must be
approved by the General Manager or the Purchasing Manager, or designee,
ee,
however staff reserves the right to bring these to the Board when appropriate.-
District Project contracts that exceed $100,000 require Board approval of the
contract prior to authorization and commencement of work. District Project
contracts less than or equal to $100,000 may be approved by staff members
based on their authority limits as long as the contract is let to the lowest
responsible bidder.
For all District Proiects, regardless of dollar amount, the Board, in its discretion
may reject any bids presented and readvertise. In addition, if two or more bids
are the same and the lowest, the Board may accept the one it chooses. If no
bids are received, the Board may have the project done without further complying
with the formal bid requirements.
The General Manager or his /her designee can approve individual contract
change orders of up to $50100,000 for District Projects. The Board of Directors
must approve individual change orders where the amount is greater than
$50100,000 for District Projects.
3.7 Equipment Budget Expenditures
The General Manager approves equipment budget items of up to $100,000 per
item. The Board of Directors must approves equipment budget items over
100 000 for each fionol year Overruns for the equipment budget are addressed
in a similar fashion to all other capital projects. As long as there are sufficient
funds remaining in the General Improvement Program of the Capital Budget, the
General Manager can approve an equipment purchase of less than $100,000,
even if it causes the total equipment budget to exceed the figure approved in the
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CHAPTER TWELVE
DISTRICT PROJECTS
12.1 Purpose
ATTACHMENT 5
To provide a uniform procedure for obtaining quotations or bids for District
Projects.
12.2 Policy
District Projects of $15,000 or less do not require that a formal sealed bid
process be initiated. However, a minimum of two written quotes will be obtained
when the estimated value of the procurement is greater than $3,500.
In accordance with the California Public Contract Code, District Projects with a
value greater than $15,000 require that a formal sealed bid process be initiated.
Any District Project that includes contractor - provided labor requires that the
prevailing rate of per diem wages be paid for work valued at more than $1,000.
12.3 General Requirements
Note: Most of the projects classified as District Projects of a value greater than
$15,000 are managed by the Engineering Department. As such, the Purchasing
Division does not as a general rule issue the Invitations to Bid, also known as a
Bid Request, or Requests for Proposals for these projects. However, Purchasing
is always available to assist with these projects or to serve as a resource to the
department.
The title "Project Manager" shall be used in place of the title "Purchasing
Manager" when the project is managed by the Engineering or Operations
Departments. See the Engineering Department Project Procedures Manual for
specific procedures for projects managed by the Engineering Department.
12.3.1 Definition of District Project. According to the Public Contract Code,
Section 20801 — 20806, a District Project is defined as "any construction,
reconstruction, alteration, enlargement, renewal or replacement of sewer facilities
which the District is authorized to do, including, but not limited to, the furnishing
of supplies or materials for any such work." The definition of a District Project
includes repairs to District sewer facilities.
12.3.2 Definition of Sewer Facility. Sewer Facility is defined as any plant,
building, permanent structure, ground facility, sewer line or appurtenance, pump
station or other portion of the collection and treatment works, including in -place
machinery and electronics.
12.3.3 Definition of Repair. A repair shall be considered a District Project
when the primary reason for the work undertaken constitutes an improvement to
a sewer facility, or when the work is not of a usual, routine and recurring nature
associated with maintenance and would ordinarily be capitalized under District
policies on capitalization of expenditures.
12.3.4 Definition of Maintenance. Work that is considered maintenance, i.e.,
that which is routine, recurring and usual for the preservation or protection of any
publicly owned or publicly operated facility for its intended purposes, is exempted
from the requirement to formally bid. Maintenance work includes the following:
a. Minor Repainting.
b. Landscape Maintenance including mowing, watering, trimming, pruning,
planting, replacement of plants and the servicing of irrigation and sprinkler
systems.
c. Work performed to keep, operate and maintain the District's sewage
collection and treatment systems.
12.3.5 Annual Contracts. The establishment of Annual Contracts through unit
price bidding is an acceptable means of complying with the bidding requirements
set forth in this policy regarding District Projects, so long as the initial unit price
contract is bid in compliance with the formal provisions of this policy. Unit price
bidding refers to letting a contract for the purchase of goods or services at a set
price over a designated period of time, without specifying the exact amount of
goods or services to be purchased. Annual Contracts are generally established
for a period not to exceed one year, with a specified number of one -year contract
renewals. Extensions or renewals are granted only in the event the original bid
request specifically provides for such extensions or renewals.
12.3.6 Lease and Rental of Goods and Authorizations for Services. Lease
and rental of goods and authorizations for services are not excluded from the
formal bidding process related to District Projects merely because there is no
purchase. Lease or rental of goods, as well as service authorizations, are
subject to the same formal bidding requirements as purchases and construction
when the lease, rental or service is related to a specific District Project.
Additionally, lease or rental costs of equipment or services to be used for a
particular District Project must be included in the cost of that project when
determining whether the District Project meets the monetary limit for formal
competitive bidding.
In determining the estimated lease or rental cost for a District Project, the total
amount of the entire lease or service period, if fixed, shall be included. In the
event the contract is for an undetermined period, then the estimated cost shall be
based on the reasonably anticipated length of the required rental or service.
Leases, rental contracts and authorizations for services subject to formal bidding
shall not be extended for periods of time for which the total estimated cost of the
extension exceeds the $15,000 limit amount, without adherence to the formal
competitive bidding process. Provisions for potential extensions may be included
in the initial bid request in order to eliminate the necessity of a formal competitive
bid for subsequent extensions or renewals.
12.3.7 Segmenting of District Projects into Multiple Units. A District Project
may not be split, divided or separated into small work orders or projects
segmented into separate phases for the purpose of evading the competitive
bidding requirements. However, nothing herein shall prevent District
undertakings from being divided into manageable units that are otherwise
appropriate and advantageous to the carrying on of District operations. The
issue of whether formal competitive bidding is required must be incidental and
unrelated to the discretion used in determining the scope, phasing or segmenting
of any District undertaking.
The granting of extensions on District annual contracts and on rentals or leases
cannot be intentionally phased so as to permit a series of extensions, which
individually are fifteen thousand dollars ($15,000) or less and cumulatively are in
excess of that amount, in order to avoid a need for formal competitive bidding of
the contract or lease extension.
12.3.8 Use of District Force Account Labor. District Force Account Labor is
defined as work undertaken by District employees, rather than by an independent
consultant or employees of an independent contractor.
District Force Account Labor may be used on a District Project under any of the
following circumstances:
a. In the case where anticipated expenditure is fifteen thousand dollars
($15,000) or less as calculated using direct labor costs (including labor
wages, project supervisor wages and directly attributable overhead), costs
of materials and costs of equipment purchased or rented specifically for
the project. General administrative, use charges for District -owned
equipment and materials previously purchased by competitive bidding
may be excluded from the project cost for purposes of this provision.
Engineering and administration costs, which would not have been
included in the construction contract if it had been let by competitive
bidding, may also be excluded.
b. In the case where the anticipated number of hours required to be
expended by District employees does not exceed four hundred (400) man -
hours. This alternative may be used under circumstances where the
equipment to be used is District property, or has otherwise been acquired
in accordance with formal competitive bidding requirements and the
materials have been previously purchased through a formal competitive
bid.
c. In the case of an emergency due to a failure or threat of failure of any
sewer collection or treatment facility or portion thereof.
d. In the case of an emergency due to damage to a District -owned building
or District -owned property, for work and remedial measures which are
required immediately, when such emergency is occasioned by an act of
Nature including, but not limited to, damage by storm, flood, fire or
earthquake.
e. In the case of maintenance of District property.
f. In the case where a District project has been awarded to an independent
contractor, however portions of the work to be performed required
interfacing with District personnel including, but not limited to,
circumstances including:
1. Safety interfaces.
2. Instrumentation, electrical or control interfaces.
3. Significant or sophisticated interfacing required with existing
operating systems.
4. Circumstances where District personnel have specialized expertise
required to efficiently complete the work.
g. If, at any time after approval of the plans, specifications and estimates of
costs, the General Manager or his /her designee deems that the
advertising or awarding of a contract or the acceptance of a bid or the
acceptance of any further bids after the rejection of all submitted bids, is
not in the best interest of the District, District forces may then be used to
undertake the project. Where plans and specifications have been
prepared for a District project for formal bid, and subsequently, the District
elects to perform the work with District Force Account Labor, the District
shall perform the work in accordance with the plans and specifications.
Revisions of the plans and specifications may only be made after the
General Manager has approved a justification, detailing the specific
reasons for the change or changes.
h. In the case of unique circumstances where it is in the best interest of the
District to have District employees undertake the work.
12.3.9 Change Orders. Change orders made subsequent to the execution of a
contract originally subject to the competitive bidding procedures may be
negotiated without complying with the formal competitive bidding process under
the following circumstances:
a. When the change order relates to an increase in the amount of units on a
unit price bid and the prospective bidders on the original contract should
have reasonably known the potential of such increase.
b. When the change order is due to a change of circumstances or physical
conditions not specifically taken into account in the District specifications,
and the change order work is incidental to the carrying out of the original
scope of work.
c. Where the change order relates to work reasonably within the general
scope of work in the original contract; however, the necessity of such extra
work only becomes known to the District, for whatever reason, after the
execution of the original contract and the impossibility or impracticality of
contracting with a different contractor, not party to the original contract,
would make competitive bidding of such work impractical and not in the
public's interest.
d. Where the original contract and /or specifications contain provisions for the
potential performance of such extra work and furnishing of materials by
the contractor as the District may require for the proper completion or
construction of the whole or that which was originally contemplated.
The General Manager or his /her designee can approve individual change orders
of up to $58100,000 for District Projects. The Board of Directors must approve
individual change orders where the amount is greater than $50100,000 for
District Projects.
12.3.10 Preference for Materials. District personnel shall not draft or cause to
be drafted, specifications for bids in connection with construction, alteration or
repair of public works in such a manner as to limit the bidding, directly or
indirectly, to any one specific concern unless the specification lists at least two
brands or trade names of comparable quality or utility and is followed by the word
"or equal" so that bidders may furnish any equal material, product or thing or
service. In those cases involving a unique or novel product application required
to be used in the public's interest, or where the District knows of only one brand
or trade name, it may list only one. The requestor that specifies a preference for
a specific material shall substantiate the need and the justification of the
preference. Specifications shall provide a period of time of at least thirty -five (35)
days after the award of the contract for submission of data substantiating a
request for a substitution of an "or equal" item.
12.3.11 Pre - Qualification and Other Alternative Bidding Procedures. The
District may devise and use a system to ease the administrative burden of
determining the responsiveness of bidders to specifications on significant
equipment purchases. A pre - qualification procedure compliant with the Local
Agency Public Construction Act (California Public Contracts Code Section 20100
et Seq.) may be used which would provide for advertisement of the pre -
qualification proceedings similar to the advertising required for formal competitive
bidding. The pre - qualification procedure shall require the preparation of an
informational pre - qualification package which shall be delivered to each potential
bidder responding to the advertisement or otherwise known to the District.
Pre - qualification submittals pursuant to the Local Agency Public Construction Act
may be required from the responding potential bidders and. such submittals shall
be evaluated by staff and /or District consultants for the purpose of determining
whether or not each of the responding potential bidders may be a
responsive /responsible bidder. This initial determination shall be based on the
District's specifications set forth in the District's informational qualification
package. The District's initial determination during this pre - qualification process
that a prospective bidder is a responsible bidder shall not be an irrevocable
determination binding the District during subsequent procurement procedures.
The District may devise and use such other systems as may be available by law
that may serve to ease the administrative burden of determining the
responsiveness of bidders and /or the suitability of products for District use.
These systems may include, but are not limited to, forms of evaluative bidding
and bidding based on estimated life cycle costs of the goods sought and are
frequently accomplished through the use of Requests for Proposals.
12.4 District Projects Less than or Equal to $15,000
District Projects of $15,000 or less do not require that a formal bid process be
initiated. However, in accordance with the State of California Labor Code
Section 1771, any District Project that includes contractor - provided labor requires
that the prevailing rate of per diem wages be paid for work valued at more than
$1,000.
The Purchasing Manager or Project Manager will contact contractors or suppliers
for price quotes by e-mail, telephone or facsimile or by written invitation. If a
department obtains quotes for the work, copies of the quotes should be
forwarded to Purchasing. A job walk may be held in order to allow the contractor
or supplier an opportunity to view the proposed work. The number of contractors
or suppliers contacted will vary depending on the dollar amount of the purchase,
the number of available contractors or suppliers and the time available to
complete the purchase. Normally, a minimum of two contractors or suppliers is
contacted. Award is made to the supplier who provides the lowest responsive
and responsible quote for the specified item or service.
12.5 District Proiects Greater than $15,000
12.5.1 In accordance with Public Contracts Code 20801 et Seq., District
Projects with a value greater than $15,000 require that a formal bid process be
initiated and prevailing rates of wages be paid. As a part of the formal bid
process, potential bidders are notified a minimum of ten (10) days prior to bid
opening by advertisement in the District designated newspaper, trade journals
and other media. The Notice Inviting Bids must be published at least twice, not
less than five days apart and at least ten days prior to the bid opening.
Written bids are solicited for purchases in this range and known contractors or
suppliers providing the required item will be sent a bid package. The bid
documents include a standard form on which contractors or suppliers must
respond with their bid, or offer to provide the requested goods or services. In
addition, any District Project that includes contractor - provided labor requires that
the prevailing rate of per diem wages be paid for work valued at more than
$1,000.
Bids are submitted to the District under sealed cover and are opened by the
Secretary of the District, or her designee, in a public place and at a pre-
determined time. The Board ef DoreGtorsDistrict then makes the award to the
contractor or supplier submitting the lowest bid — assuming the bid is responsive
to the specifications and is made by a responsible bidder. District Project
contracts that exceed $100,000 require Board approval of the contract prior to
authorization and commencement of work. District Project contracts less than or
equal to $100,000 may be approved by the General Manager staff mem be-r&
based on their autheretY44PA& as long as the contract is let to the lowest
responsible bidder.
For all District Proiects, regardless of dollar amount, the Board, in its discretion
may reject any bids presented and readvertise. Staff does not have the authority
to reject bids without going to the Board for approval. In addition, if two or more
bids are the same and the lowest, the Board may accept the one it chooses. If
no bids are received, the Board may have the project done without further
complying with the formal bid requirements.
Bids are "take it or leave it" propositions and as a general rule, negotiations do
not occur.
12.5.2 Invitation to Bid /Bid Request. An Invitation to Bid, also known as a Bid
Request, is utilized when the District is able to fully state its requirements through
the inclusion of specifications and drawings within the bid document. Formal bids
include complete specifications and contractual terms and conditions applicable
to the procurement, including, but not limited to, the place, date and time of the
bid opening. The contract is awarded to the lowest responsive, responsible
bidder. The following conditions apply to the formal bid process known as the
Invitation to Bid.
12.5.3 Requisition. Using the District's Financial Management System, the
requesting department must issue a requisition to the Purchasing Division.
Note: A requisition is necessary to issue a contract for work, except in the case
of contracts developed and issued by the Engineering Department for
construction of District Projects.
12.5.4 Specifications. The requesting department is to develop and provide
specifications and /or drawings or work with the Purchasing Division to develop
the specifications. If the specifications are developed solely by the department,
Purchasing will review the specifications to insure that the specifications are
open and non - proprietary, thus ensuring competition.
Unless otherwise specifically provided in the bid, reference to any equipment,
material or supplies by trade name, make or catalog number shall be regarded
as establishing a standard of quality and shall not be construed as limiting
competition. Specifications contained in the bid will, where practical, be
nonrestrictive so as to provide an equal basis for competition and participation by
an optimum number of qualified bidders.
Note: Purchasing does not review specifications or bid packages for District
Projects managed by the Engineering Department. An architect or Registered
Engineer shall prepare all specifications and /or drawings for formal construction
projects.
12.5.5 Advertisement. Notify the General Manager of the intent to advertise
via a memo and a Project Approval to Advertise form. Prior to advertising, the
General Manager shall notify the Board of Directors of the District's intent to
advertise. The Notice Inviting Bids (Notice to Bidders) shall be signed by the
Secretary of the District and shall be advertised at least twice, not less than five
(5) days apart in the District - designated newspaper at least ten (10) days prior to
bid opening. Such Notice shall be provided to various Builders' Exchanges, a list
of which is maintained by the Engineering Department. The Notice may also be
published in trade publications or other printed matter of general circulation. The
public notice shall state the bid item and the place, date and time of the bid
opening. As a practical matter, three to four weeks are allowed between the time
bids are advertised and opened. Tear sheets or other proof of publication shall
be requested of the newspaper and such proof shall become a part of the
bid /project file.
12.5.6 Pre -Bid Conference. Pre -bid conferences and job walks contribute to a
climate of competition and provide the forum to discuss the District's needs and
purposes and the specific requirements of the solicitation. Consideration will be
given to conducting a pre -bid conference and /or job walk with potential suppliers
or contractors if the specifications are complex or unique, or if the nature and the
size of the project warrant a pre -bid conference or job walk. It shall be the
Project Manager's decision as to whether or not a pre -bid conference and /or job
walk is held, however, prior adequate notification of the pre -bid conference
and /or job walk must be provided to contractors. A record of all attendees should
be made and retained in the project /bid file. Detailed minutes of the pre -bid
conference and /or job walk should be taken to assist in the preparation of an
addendum, if necessary, and for file documentation.
12.5.7 Addenda. Changes to the bid are issued in the form of an addendum to
everyone who received the original bid documents. Addenda are issued to: (1)
provide prospective bidders answers to questions concerning bid documents (2)
clarify or correct ambiguous, incomplete or erroneous information contained in
the bid documents (3) address issues or concerns that arise a s a result of a
pre -bid conference and /or job walk or throughout the bidding process. Addenda
should not be used to finalize designs as all design review activities are to be
completed prior to the printing of the bid documents. Addenda shall be mailed no
later than five (5) calendar days prior to bid opening. Receipt of the addenda
should be acknowledged by the contractor on the bid proposal sheet.
12.5.8 Form of Bid. To receive consideration, bids shall be made on the forms
provided by the District. All bids must be in ink or typewritten. All changes must
be initialed in ink. An authorized representative of the contractor or supplier must
sign the bid. In addition, in accordance with Public Contract Code Section 3300,
the bidder must possess at the time of award a valid and current contractor's
license. The right is reserved by the District to waive any informality or
irregularity in the bids.
12.5.9 Receipt and Control of Bids. Bids may be submitted by hand, by
courier or by U.S. Mail. Delivery of bids shall be made at the office specified in
the Notice Inviting Bids (Notice to Bidders). Bids are received, logged and kept
unopened in a secure location until the time of bid opening. Prior to bid opening,
the Project Manager shall check with the Warehouse to ensure that there are no
bids waiting to be delivered by the Warehouse.
12.5.10 Late Bids. Late bids will not be considered and shall be returned
unopened to the bidder. The District's official time clock for the purposes of
accepting bids is located at the Receptionist desk in the District's Headquarters
Office Building. The District shall not be responsible for any delays in mail or by
common carriers or for bids delivered to other than the site designated in the
Notice Inviting Bids nor for mistaken delivery. Deliveries made before the date
and time due, but to the wrong District office, will be considered non - responsive
unless re- delivery is made to the office specified before the date and time due
specified in the Notice Inviting Bids (Notice to Bidders).
12.5.11 Bid Opening. Bids shall be opened publicly and read aloud in the
presence of attendees, if any, at the time and place designated in the bid. The
amount of each bid and other relevant information deemed appropriate, together
with the name of each bidder, shall be recorded; the record of bid prices as well
as each bid shall be open to public inspection at the bid opening and after an
award decision has been made. However, bid information will not be available
for public review until the District has verified bid content and accuracy.
12.5.12 Insufficient Number of Bid Copies. If it is in the District's best interest,
the District may accept a bid from a bidder who has not submitted the proper
number of copies of the bid. A bidder who does not submit the proper number of
copies as designated in the bid, may be allowed one (1) working day from the
time of the bid opening, or sufficient time as deemed necessary by the District, to
supply the proper number of copies.
12.5.13 Bid Acceptance and Bid Evaluation. Bids shall be unconditionally
accepted without alteration or correction, except as authorized in this chapter.
Bids shall be evaluated based on the requirements set forth in the bid, which may
include criteria to determine acceptability such as inspection, testing, quality,
workmanship, delivery, and suitability to a particular purpose. Those criteria that
will affect the bid price and will be considered in evaluation for award shall be
objectively measurable, such as discounts, transportation costs and total or life
cycle costs.
All contracts shall be based strictly upon the face value of the bids received. No
secret rebates and other considerations can be accepted. Award shall be made
to the lowest responsive and responsible bidder based upon the criteria set forth
in the bid such as:
a. The cost, including the effect of term discounts (not less than twenty (20)
calendar days after receipt of goods or after receipt of correct invoices,
whichever is later) and taxes. Prices may be determined by life cycle
costing.
b. Compliance with bid requirements, terms and conditions.
c. The ability, capacity and skill of the bidder to perform the contract or
provide the services required.
d. The character, integrity, reputation, judgment, experience and efficiency of
the bidder.
e. Whether the bidder can perform the contract within the time specified.
f. The quality of performance of previous contracts.
g. The previous and existing compliance by the bidder with the laws relating
to the contract or services.
h. Safety record of the contractor.
i. Servicing resources, capability and capacity.
j. Uniformity or interchangeability, if such factors are important.
k. Other information required by the bid that has a bearing on the decision to
award the contract.
An Invitation to Bid sets forth the specific requirements of the District and the
method by which the bids will be evaluated. The evaluation and selection
process shall consist of determining which bidder meets the specifications at the
lowest responsive, responsible level. For each specific requirement, a basic
"yes" or "no" answer is required. There is no "fully ", "barely ", "almost" or
"exceeded" level of evaluation.
12.5.14 Mistakes in Bid Detected Prior to Bid Opening. Mistakes in the bid
detected prior to bid opening may be corrected by the bidder by withdrawing the
original bid and submitting a corrected bid before the date and time set for bid
opening. The request to withdraw the original bid must be made by written notice
or by the personal presentation of the person signing the bid. The notice must be
received by the Secretary of the District prior to the time set for bid opening. If
there is not sufficient time prior to bid opening to withdraw the original bid and
submit a corrected bid, the bidder or an authorized representative may correct
the mistake on the face of the original bid, provided that the official opening time
has not yet been reached. A corrected bid must be time - stamped upon re-
submission.
Mistakes discovered before the bid opening may only be modified or withdrawn.
12.5.15 Mistakes in Bid Detected after Bid Opening. After bids have been
opened, corrections in bids shall be permitted only to the extent of resolving
arithmetic discrepancies and conflicts in the bid as follows:
a. In the event of discrepancies between unit price and extended price, the
unit price will govern and be used to correct the extension of the extended
price.
b. Apparent errors in the addition of lump sum and extended prices will be
corrected.
c. If no monetary symbol is entered with a unit price, lump sum or extension,
a dollar sign will be assumed to be the bidder's intent.
d. In the event that there is a discrepancy in the bid between the lump -sum
price or unit price written in words and those indicated in figures, the price
written in words shall govern.
e. No changes in bid prices or other provisions of bids prejudicial to the
interest of the District or fair competition shall be permitted.
12.5.16 Relief of Bidders. In accordance with California Public Contract Code
Section 5103, if the bidder submits evidence in writing to the Secretary of the
District that a mistake has been made by the bidder in the calculation of his /her
bid, the District may allow the bid to be withdrawn, provided the claim of mistake
and the evidence in support thereof is made and provided within five (5) calendar
days after the bid has been opened. Compliance with this section, within the
specified time limit, may relieve the bidder of forfeiture of the bid bond.
The District Board of Directors shall make final determination of relief of
bidders.for bids that exceed $100,000. The General Manger shall make final
determination of relief of bidders for bids of $100,000 or less. — Should the
District Board of Directors or General Manager accept the bidder's claim for
relief, the bidder will be released from all obligations and further requirements
and its bid security will be returned as applicable.
12.5.17 Minor Informalities and Irregularities in Bids. A minor informality or
irregularity is one which is merely a matter of form or is some immaterial variation
from the exact requirements of the Invitation for Bids having no effect or merely a
trivial or negligible effect on total bid price, quality, quantity or delivery of supplies
or performance of the contract, and the correction or waiver of which would not
affect the relative standing of, or be otherwise prejudicial to, bidders.
The District shall either give the bidder an opportunity to cure any deficiency
resulting from the minor informality or irregularity in a bid or waive any such
deficiency when it is to the advantage of the District. Examples of minor
informalities include, but are not limited to:
a. Failure of a bidder to return the number of copies of the signed bids
required by solicitation.
b. Failure of a bidder to furnish the required information concerning the
number of the bidder's employees or failure to make a representation
concerning its size.
c. Failure of bidder to sign its bid, but only if the firm submitting the bid has
formally adopted or authorized the execution of the documents by
typewritten, printed or rubber stamped signature and submits evidence of
such authorization, and the bid carries such a signature or the unsigned
bid is accompanied by other such material indicating the bidder's intention
to be bound by the unsigned document, such as the submission of a bid
guarantee with the bid or a letter signed by the bidder with the bid referring
to and identifying the bid itself.
d. Failure of a bidder to acknowledge receipt of an addendum to a
solicitation, but only if the bid received indicates in some way that the
bidder received the addendum or the addendum has no effect or merely a
trivial or negligible effect on price, quality, quantity, delivery or the relative
standing of bidders, such as an amendment correcting a typographical
mistake.
e. Failure of a bidder to furnish an affidavit concerning affiliates.
f. Failure of a bidder to furnish cut sheets or product literature.
g. Failure of a bidder to furnish financial statements.
h. Failure of a bidder to furnish references.
12.5.19 Background Review of Contractors. The District reserves the right to
conduct a background review of potential contractors. It shall be the
responsibility of any District official authorized to execute contracts or to enter
into agreements on behalf of the District, to identify contracts that shall require a
background review as an element to be included in Requests for Proposals,
Invitations to Bid, Bid Request or contracts.
Such officials, as indicated above, shall evaluate each contract to determine the
appropriateness of a Background Review using the following criteria: the amount
of contract, the term of contract, the extent of potential District liability related to
the contract and the technical complexity of the services or item being
purchased. When deemed appropriate, the following language shall be included
in an Invitation to Bid, Request for Proposal or Contract:
"The District reserves the right to conduct a background inquiry of each
proposer /bidder that may include collection of appropriate criminal history
information, contractual and business associations and practices,
including prompt payment of subcontractors and material suppliers,
employment histories and reputation in the business community. By
submitting a proposal /bid to the District, the proposer /bidder consents to
such an inquiry and agrees to make available to the District such books
and records the District deems necessary to conduct the inquiry. "
The above clause, or a clause that substantially mirrors the above clause, is
required for all construction contracts issued by the Engineering Department. In
addition, the potential contractor will then be required to respond to questions
concerning criminal history, contractual or business practices and pending civil
litigation.
12.5.20 Partial Award. As applicable to the purchase of goods, materials and
supplies, Purchasing shall have the discretion to award on an "all -or- nothing"
basis or to accept any portion of the items bid, excluding others unless the bidder
stipulates "all -or- nothing" on his /her bid.
12.5.21 Tie Bids. If two or more bids are the same and the lowest, the District
Board may accept the one it chooses.
12.5.22 Exception to Award to Lowest Responsive Responsible Bidder.
Whenever there is a reason to believe that the lowest acceptable bid is not the
best price obtainable, the District Board in its discretion may reject any bids
presented and re- advertise.
12.5.23 Cancellation of Bid or Rejection of All Bids. The District reserves the
right to reject all bids or to cancel a bid. However, every effort will be made to
guard against such an occurrence. Examples of reasons for cancellation of a bid
or rejection of all bids are:
a. Inadequate or ambiguous specification.
b. Specifications have been revised.
c. Supplies or services being processed are no longer required.
d. Change in District requirements.
e. All bids are deemed unreasonable.
f. Bids were not independently arrived at or were submitted in bad faith.
g. A determination has been made that all the necessary requirements of the
bid process have not been met.
h. Insufficient competition.
i. For reasons that indicate the cancellation or rejection of all bids is clearly
in the best interest of the District.
The District may reject any or all bids presented and may, at its discretion, re-
advertise for other bids. If, at any time after approval of the plans, specifications
and estimates of costs, the General Manager or his /her designee deems the
advertising or awarding of a contract, the acceptance of a bid or the acceptance
of any further bids after the rejection of all submitted bids, is not in the best
interests of the District, District forces may be used to undertake the project.
Where plans and specifications have been prepared for a District project for
formal bid, and subsequently, the District elects to perform the work with District
Force Account Labor, the District shall perform the work in accordance with the
plans and specifications. Revisions of the plans and specifications may only be
made after the General Manager has approved a written justification, detailing
the specific reasons for the change or changes.
12.5.24 Notice of Cancellation or Rejection of Bids. In the event of a
cancellation of the bid, all participating bidders will be notified. If all bids are
rejected, the reason(s) will be documented in the bid or project file.
12.5.25 Disclosure of Bid Results. After award, the bids of all bidders shall be
open to public inspection by appointment, during normal business hours.
However, the District will not make public any confidential information submitted
by bidders. The District assumes no responsibility for the confidentiality of
information offered in a bid.
Note: Bids managed by the Engineering Department are maintained by that
Department. All information, questions and requests related to those bids
managed by the Engineering Department shall be directed to the Engineering
Department and the associated Project Manager.
12.5.26 Award of Contract. The contract shall be awarded with reasonable
promptness by appropriate written notice. Award shall be made to the most
responsive, responsible bidder whose bid meets the requirements and criteria set
forth in the Invitation to Bid and whose bid is determined to be the most
advantageous to the District. A responsible bidder is one who has the capability,
financial capacity and integrity to perform the contract and meets the District's
safety requirements, i.e., safety record. A responsive bidder is one who commits
to all of the material terms (e.g., price, quantity, quality and delivery) of the
Invitation to Bid. The contract file shall contain a written explanation of the award
decision in the form of a spreadsheet and notes to the file. If the bid requires
award by the District's Board of Directors, a position paper will be prepared and a
copy of the position paper will be inserted into the bid file. Any contract for a
District Project in an amount greater than $15100,000 requires Board of
Director approval.
12.5.27 Bid Bonds and Contract Bonds. When deemed necessary by the
District or to meet the requirements of the Public Contract Code, a bidder's
security payable to the District may be required. Such a requirement will be
included as a part of the Notice Inviting Bids. The Bid Security may be in the
form of a certified check, cashiers check or surety bond payable to the District, in
an amount not less than ten percent (10 %) of the bid total. The bid security will
be retained by the District until the related contract is executed. A successful
bidder shall forfeit their bid security upon refusal or failure to execute the contract
within ten (10) days after receipt of the notice of award. If the successful bidder
fails to enter into the contract when offered, the proceeds of the bond will be paid
to the District as liquidated damages. The District may also require the
contractor to supply the District with bonds covering faithful performance and
labor and materials. In accordance with the State of California Civil Code Section
3247, a labor and materials bond is required for all public works involving an
expenditure in excess of $25,000. See Chapter Seventeen - Insurance and
Bonds for more details.
12.5.28 Appeals. Because it is essential that bidders, offerors and contractors
have confidence in the procurement procedures for soliciting and awarding
contracts, it is the policy of the District to offer all bidders, offerors and
contractors the opportunity to appeal award of purchases or contracts.
The following procedures shall apply in regard to appeals by prospective bidders,
offerors or contractors:
a. Any actual or prospective bidder, offeror or contractor who is aggrieved in
connection with the solicitation or award of a contract may protest to the
Secretary of the District. Appeals must be submitted in writing within forty -
eight (48) hours of bid opening. If the forty -eight (48) hour deadline falls
on a Saturday or Sunday or District - recognized holiday, then the written
appeal must be submitted by the close of business on the following
business day.
b. Appeals shall be submitted to the Central Contra Costa Sanitary District,
Attention: Secretary of the District, 5019 Imhoff Place, Martinez, CA
94553 -4392. Appeals should address only areas regarding bid
contradictions, procurement errors, quotation rating discrepancies, legality
of procurement context, conflict of interest in rating process and
inappropriate or unfair competitive procurement grievance regarding the
bid process.
c. The District's Purchasing Manager (Project Manager) or Department
Director (Administrative, Engineering or Operations) shall have the
authority to settle and resolve a protest of an aggrieved bidder, offeror or
contractor, actual or prospective, concerning the solicitation or award of
contract. The Purchasing Manager (Project Manager) will provide a
written response to the complainant within three (3) working days of
receipt of complaint unless the complainant is notified that more time is
required.
d. If the protest cannot be resolved by mutual agreement, or if the protesting
bidder is not satisfied with the decision of the Purchasing Manager
(Project Manager) and /or Department Director (Administrative,
Engineering or Operations) he /she shall have the right to appeal to the
District's General Manager within three (3) business days after notification
of the Purchasing Manager's (Project Manager's) decision. The decision
of the General Manager shall be a final determination of appeal.
e. If the protesting bidder is not satisfied with the decision of the District's
General Manager, the supplier may address the District's Board of
Directors at a regularly scheduled meeting by providing written notification
to the District.
In general, the filing of a protest should cause the solicitation proceedings, which
are subject to protest, to be halted until the appeal is resolved. In order to allow
essential District functions to continue, the District may proceed with the
solicitation or award of contract, despite the protest, upon an adequate
determination in writing by the District's Purchasing Manager (Project Manager)
or Department Director (Administration, Engineering or Operations), with
subsequent concurrence by District Counsel, that such action is necessary. It is
expected that such determination will occur only in those few circumstances
where it is necessary to protect a substantial interest of the District.
In an effort to limit frivolous protests, protesters who file two (2) protests within
twelve (12) calendar months, whose protests are not resolved in their favor, may
be debarred pursuant to Chapter Seven — Supplier Relations and Supplier
Performance.
12.6 Inspection of Plant and Audit of Records
12.6.1 Right to Inspect Plant. The District may at reasonable times, inspect
the part of the plant or place of business of a contractor or any subcontractor that
is related to the performance of any contract awarded or to be awarded by the
District.
12.6.2 Audit of Cost or Pricing Data. The District may, at reasonable times
and places, audit the accounting records of any person who has submitted cost
or pricing data to the extent that such books and records relate to such cost or
pricing data. Any person who received a contract, change order or contract
modification for which cost or pricing data is required shall maintain such books
and records that relate to such cost or pricing data for three (3) years from the
date of final payment under the contract unless a shorter period is otherwise
authorized in writing.
12.6.3 Contract Audit. The District shall be entitled to audit the books and
records of a contractor or any 'subcontractor under any negotiated contract or
subcontract, other than a firm fixed -price contract, to the extent that such books
and records relate to the performance of such contract or subcontract. The
contractor shall maintain such books and records for a period of three (3) years
from the date of final payment under the prime contract and by the subcontractor
for a period of three (3) years from the date of final payment under the
subcontract unless a shorter period is otherwise authorized in writing.
12.7 Exemptions to Competitive Bidding
Specific circumstances may make formal competitive bidding impractical and to
the detriment of the District as well as the public's interest. Accordingly, certain
District expenditures do not require formal competitive bidding and the
circumstances which do not require formal competitive bidding are set forth as
follows:
a. Emergency Purchases. In accordance with California Public Contract
Code Section 20806, when goods or services are immediately necessary
for the preservation of public health, welfare or safety or the protection of
District property and /or personnel. In accordance with the Code, the
District Board must pass a resolution by a four -fifth (4/5) vote declaring
that an emergency exists to eliminate the necessity for competitively
bidding such emergency contracts or purchases under circumstances
where such purchases or contracts would otherwise require competitive
bidding. However, in accordance with Public Contract Code Section
22050(b)(1), the Board has delegated to the District's General Manager,
through Board Resolution 96 -107, the authority to take any directly related
and immediate action required by an emergency to procure the necessary
equipment, services and supplies, without giving notice for bids to let
contracts.
b. Extraordinary Circumstances. In unusual or extraordinary
circumstances, the District's Board of Directors or General Manager may
determine that the best interests of the District would not be served by
securing competitive bids or issuing a request for proposal.
c. Best Interest of the District. When, in exceptional factual
circumstances, the competitive pricing process works an incongruity or
does not produce an advantage and is unavailing as affecting the final
result or where it is practically impossible to obtain what is required by
observing such formality.
d. Governmental Agencies. When the contract is with a Federal, State or
local government entity. This includes the purchase of goods from the
California Department of Corrections, Division of Prison Industries or
services that can be provided by sheltered workshops or disabled
industries in accordance with Section 19404 of the State of California
Welfare and Institutions Code.
e. Cooperative and "Piggyback" Purchases. Cooperative and "piggyback
purchasing provides a means for the District to join with other public
agencies for the purpose of collectively preparing specifications, and
requesting and receiving bids, quotations or proposals, or utilizing the
quotations and bids obtained by other governmental agencies. The
advantages of cooperative purchasing are greater economy and
efficiency, leading to lower unit costs. Examples of cooperative or
piggyback purchasing include, but are not limited to, purchases made
using another agency's contract, joint buying within a metropolitan area,
participation in the State of California CMAS and statewide commodity
contracts and the utilization of contracts negotiated by municipal leagues
or organizations such as the National Association of Counties and the US
Communities Purchasing Program. Under certain circumstances, it may
be necessary to create a Joint Powers Agreement between the
participating agencies. As such, with the exception of those District
Projects managed by the Engineering Department, any effort to purchase
cooperatively or "piggyback" another agency's bid or quotation should be
coordinated through the Purchasing Division.
f. Unique Goods and Sole Source Purchases. When a single source is
deemed to be the only one practicably available and advertising would be
pointless, or when a product, good or service is unique, competitive
bidding may be waived. In order for an item to be recognized as unique,
there must be no equivalent product or service available. The unique
status must be based on material differences in the function and
usefulness of the product. Departments shall be required to justify, in
writing, the need for a sole source procurement.
g. Standardization. In some instances, the District may elect to standardize
the equipment, supplies or materials that it purchases. Standardization is
a process whereby agreement has been established on the quality, design
and composition of the materials and equipment to be purchased by the
District. Standardization is generally undertaken in an effort to increase
savings through productivity, lower maintenance costs, training issues,
safety issues, volume discounts, etc. Departmental requests to
standardize are to be supported with documentation that demonstrates the
justification and need to standardize. Once an item has been
standardized the purchase of nonstandard items will require a justification
from the requestor indicating why the standard item is not suitable for the
purpose intended.
h. Proprietary Source. When competition can be obtained, as a practical
matter, only on the basis of specification of a good or service produced or
marketed by one having an exclusive legal right. Multiple suppliers may
be authorized to sell a product or service, and all should be permitted to
compete. This method is often used in cases where the District has
standardized on a specific product or item.
i. Trade or Brand Name Item to Match Existing Items. When a brand
name is necessary due to the project goods being designed to match
other goods already in use or already purchased in the course of
completion of a District project, provided the product is only available
through a sole source. Every attempt should be made to obtain
competitive pricing when trade name items are available from multiple
suppliers.
j. Purchase for Field Test or Pilot Test. Expenditures for (1) the purchase
of a particular material or service which has been designated by the Board
of Directors or the General Manager as a purchase for experimental
purposes or (2) for trial use of the specific product or (3) a demonstration
project for new construction techniques, do not require application of
competitive pricing procedures.
k. Purchase of Replacement Parts. When a component or replacement
part for a product that is already in use and for which there is no adequate
substitute, provided the product is only available through a sole source.
Every attempt should be made to obtain competitive pricing when trade
name items are available from multiple suppliers.
I. Purchases and Leases of Real Property. The law generally regards
parcels of real property as unique, and, therefore, competitive pricing
procedures would not normally apply. Advice of District Counsel should
be sought in regard to both acquisitions and sales of real property.
m. Utility Services. The purchase of utility services, such as Internet service
providers, telephone, water, gas and electricity do not require formal
competitive bidding.