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Home My WebLink AboutCAPITAL PROJECTS AGENDA 12-17-13Jl Central Contra Costa Sanitary District Protecting public health and the environment SPECIAL MEETING OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT CAPITAL PROJECTS COMMITTEE Chair Pilecki Member Causey Tuesday, December 17, 2013 2:00 p.m. 2nd Floor Conference Room 5019 Imhoff Place Martinez, California INFORMATION FOR THE PUBLIC ADDRESSING THE COMMITTEE ON AN ITEM ON THE AGENDA BOARD OF DIRECTORS: JAMES A. NEJEDLY President DA V7D R. YVILLIAMS President Pro Tem PA UL H. CA USEY MICHAEL R. MCGILL TAD J. PILECKI PHONE: (925) 228 -9500 FAX.- (925) 676 -7211 www.centralsan.org Anyone wishing to address the Committee on an item listed on the agenda will be heard when the Committee Chair calls for comments from the audience. The Chair may specify the number of minutes each person will be permitted to speak based on the number of persons wishing to speak and the time available. After the public has commented, the item is closed to further public comment and brought to the Committee for discussion. There is no further comment permitted from the audience unless invited by the Committee. ADDRESSING THE COMMITTEE ON AN ITEM NOT ON THE AGENDA In accordance with state law, the Committee is prohibited from discussing items not calendared on the agenda. You may address the Committee on any items not listed on the agenda, and which are within its jurisdiction, under PUBLIC COMMENTS. Matters brought up which are not on the agenda may be referred to staff for action or calendared on a future agenda. AGENDA REPORTS Supporting materials on Committee agenda items are available for public review at the Reception Desk, 5019 Imhoff Place, Martinez, and on the District's website at www.centralsan.org. Not every agenda item is accompanied by written supporting material. Reports and information relating to agenda items distributed within 72 hours of the meeting to a majority of the Committee are also available for public inspection at the Reception Desk. During the meeting, information and supporting materials are available in the meeting room. AMERICANS WITH DISABILITIES ACT In accordance with the Americans With Disabilities Act and state law, it is the policy of the Central Contra Costa Sanitary District to offer its public meetings in a manner that is readily accessible to everyone, including those with disabilities. If you are disabled and require special accommodations to participate, please contact the Secretary of the District at least 48 hours in advance of the meeting at (925) 229 -7303. Capital Projects Committee December 17, 2013 Page 2 1. Call Meeting to Order 2. Public Comments *3. Discuss project prioritization process used in development of CIB Staff Recommendation: Discuss and provide input to staff if needed. *4. Discuss the existing CIP Authorization Limits table and project variance procedures Staff Recommendation: Discuss and provide input to staff if needed. 5. Discuss streamlining the CIB /CIP process Staff Recommendation: Discuss and provide input to staff if needed. 6. Announcements 7. Suggestions for future agenda items 8. Adjournment * Attachment S Item 6.) Project Prioritization Process in Development of Capital Improvements Budget Andrew Antkowiak Capital Projects Committee Meeting December 10, 2013 Central Contra Costa Sanitary District Collection System (CS) Renovation Program • Prioritize /select pipe for renovation based on N inspection score and detailed evaluation • For detailed evaluation use various other factors to select the most critical lines: - Prior Overflows /stoppages - Maintenance History - Capacity Issues - CSMP - City's Paving Program /Other Agency projects - Location - creek crossing, easement, street - Social Impact - repair adjacent pipe segments 1 r Proposed Ten -Year Capital Improvement Program T..8..1 PI. 1 $ 15 M - Cogeneration Replacement/Alternative Energy $ 6 M - Nitrification $ 4.5 M - Contaminated Soils Remediation $ 7 M l- Com I.nwJPlnnln . SUOM 49W 925,000 1,35,000 425.000 129,000 13000 MI.000 9.390.008 15.064000 32,821,008 2.0_77m. Rm.v.tl.n 8,103,OOD 5,328.000 11,361,000 8.621,000 4954000 3,655,000 2,060,000 580.000 277,000 1200,000 47,173,000 3.F. rdny Rrnowtlon 804000 3,170,00 2,550,000 1,660.000 448D,0W 5,460.000 1,924000 3,120.000 1,870.000 710,00 30,098,000 4• ExWfn 54000 100,000 11400D 590,000 Tnntln.m P1Wd3Ub1 W 9,471,000 9,187,000 11 OW 11,316,000 11,415,000 9.610,00 1.431.000 7.921,000 11,837,00 17,174000 110.662,000 C.R.don S d.rrl T•IMnovtlJ.n 8,166,000 12,701,000 14,651,000 11,101.000 15,611,000 14,501.000 4761,000 9.851,000 9,804000 11.200,000 117,634000 2 - ft C.m IantWMningrS. 600. 000 575.000 390,000 710.000 2M,000 240.000 140.000 140,000 110.000 110.000 2.894000 3 - on 1,101,000 1301,000 1,301,00 1306,000 1,501,000 2,002,000 11,502,00 6,352,000 6,371,000 6,798,000 42,835.000 4 • Ppm In 56tlom 150,000 140,00 350,000 2,84000 1510,000 435,00 634000 1,595,000 2,194000 1,094000 14185.000 fib2 /.ctlon 5 Su6toW 13.317,000 11717.000 148/2000 18.127000 IMAM 17,178,000 SAM= 17,938,00 14506.000 142U000 M551 ow G..ral Im W"MMt1 I - Mid. B ul m.t 501,W0 501,000 501, 000 501. 000 600, 000 MO.= 500,000 500,00 500,00 500.000 5,001,000 2•Bluu .IWormdlon5 m. 1,/54000 WOOD SW,000 6W,000 SW.Om 5W,000 5W,000 5W,W0 6W,W SmmD 5.954000 3 •Pro mmu 470, 000 4K000 854000 480.000 400,00 480.000 460,OOD 48D,ODD 480,000 5.185.000 GNWdknpWftSuh1VWj 240000 1.471,W0 184000 1.BS4W0 1,400,00 1,400,000 1 1,480,000 1,490,000 1,480,000 1 1.480,000 14134000 I.d Wdv R J.d Wds SubbW1 662000 M.WO I 127.0W 580.000 I Sm.000 1 560.000 1 WOOD I 5%.MDI 500.000 1 514000 S.M1.0W C&p1W ram Total] 25.889.000 24862000 34Q1,OW 31,099.000 327/0.000 247QmD 24WAD 27,0/.000 32187.000 34703.W0 $306 Million Ten Year Plan Is a Responsible One That Funds.... • Treatment Plant - Primary Sedimentation Renovation $ 15 M - Cogeneration Replacement/Alternative Energy $ 6 M - Nitrification $ 4.5 M - Contaminated Soils Remediation $ 7 M - Incinerator /Solids Handling Improvements $ 6.2 M - Alternative Energy Facility $ 6.3 M - Screenings Removal $ 10M • Collection System - Identified Renovation Needs $ 118 M - Identified Capacity Needs $ 30 M - Pumping Station Renovation $ 10.2 M - CAD's and Developer Sewers $ 13 M • General Improvements and Treatment Plant - Seismic Improvements $ 9 M 2 Proposed FY 2014 -15 Capital Improvement Budget T FY 2014 -15 CIB Program Total Cost Treatment Plant $ 9.5 million (36.7 %) Collection System $13.3 million (51.4 %) General Improvements $ 2.5 million (9.6 %) ANNUAL EXPENSE Recycled Water $ 0.6 million (2.3 %) Treatment Plant Planning $ 375,000 Total $25.9 million (100 %) One Time Renovation Primary Treatment Renovation $ 6,200,000 FY 2014 -15 TREATMENT PLANT PROGRAM CATEGORY PROJECT ANNUAL EXPENSE Reg. Compliance /Planning Treatment Plant Planning $ 375,000 One Time Renovation Primary Treatment Renovation $ 6,200,000 DAF Tank Renovation $ 400,000 Centrifuge and Cake Pump Upgrades $ 1,100,000 Recurring Renovation Piping Renovation Phase 8 $ 150,000 Asset Management $ 500,000 $ 749,000 All Other _ Total $ 9,474,000 Treatment Plant Renovation Needs Continue to be Identified with Condition Assessments - Determine the likelihood of failure and /or the remaining life of the asset. - Completed Assessments: -Concrete - Asphalt Paving - Protective Coatings - Transformers - Buildings re Seismic - Presence of Hazardous Materials - Critical Piping (Aeration) - Elevators - Electrical Switchgear -TP replacement value -- $660M- - Reinvestment rate @ 1.8% -$12M ' Not incl. land value , GI, CS or RW A— Pn., Pmp FM won 6'WttlM OO,wwC a,1-s, WN,•w- f -:.a,. M wiab,w n, ae.. P,aw w..w P.n w,rwlb-. ant an] utl M1, la Photo 13: Bay 1 • Detail of Exposed Aggregate Above Wator Line tTypical) Using Asset Management Techniques to Scope Treatment Plant Renovation Projects Assets Condition Assessment Business Risk Exposure (BRE) - Remaining useful life? - Consequences of failure (criticality)? - Deficiencies? I I - Likelihood of failure? Determine Projects & Group Appropriately - by Location "Primary Renovation" or by Asset Type "Piping Renovation Incorporate in 10 yr CIP 4 $15.0 M Primary Sedimentation Tank Renovations Incorporates Condition Assessment Findings and Improves Efficiency • Proposed Renovations — Replace Scum Collection System — Replace Chain Drives — Rehabilitate Concrete — Replace water and air supply piping — Replace Scum Skimmers and Thickener — Construct New Grit Handling Facilities — Upgrade /Renovate Electrical Conduits /Equipment Scum Spray System Requires Renovation to Improve Performance 5 Tank Baffles Will Improve Solids Capture /Reduce Load on Secondary Treatment and Save Energy Grit Handling Facilities are Odorous and at End of Useful Life E DAF Tank Renovation o Emergency Repaired of DAF Tank No. 1 after arms failure. • Inspected all DAF Tanks. • The DAF Tanks Renovation project will replace the arms in other tanks, recoat exposed steel, and make additional repairs. • Budgeted $400,000. J Centrifuge and Cake Pump Upgrades • Replace old, at the end of useful life, equipment • Improve reliability and performance of the sludge dewatering equipment • Budgeted $1.1 million in FY 2014 -15 7 Piping Renovation • Ongoing program to identify and replace deteriorated piping and equipment throughout the treatment plant. Treatment Plant Planning • NPDES Permit Adopted April 1, 2012 Requires • Submit Report to RWQCB by 2/28/14 • Ammonia Removal Optimization Study • Alternative Ammonia (Nutrient) Removal Technologies • Site Characterization Study • Nutrient removal Technologies update - Board Presentation on 12/19/13 E? Nutrient Facility Plan & Site Characterization II Element' . II I Plant Optimization (near term w /existing facilities) 11 Primary Baffle Study 11 11 BioWin Configuration 11 Plant Optimization for Ammonia Removal Element 2: Nutrient Visioning Plan (long term w /new facilities) Total Nitrification Study (2010 HDR) Nitrification Rate Tests I yanide Removal Options; Evaluation Element 3: Site Characterization (contaminated soil disposal/treatment for new facilities) Cost of Contaminated Soil Remediation is a Consideration in Choosing Future Treatment • Cost depends on Waste Class (estimated 150,000 cy) - Non Hazardous — landfill - $18.9 Million (Haul to Keller Canyon Landfill) - Non- RCRA — Hazardous - $18.5 - 27.6 Million (Rail transport to Utah) - RCRA Hazardous - $42.7 - $145.8 Million (Rail transport to Idaho) - On -site treatment - $27 — 39.5 Million (Stabilization /Solidification) • Characterization study underway • Assume $7 Million for planning purposes in year 2023 D Seismic Retrofit Program Project 201410 -YR CIP CONSTRUCTION Pump & Blower $ 3,400,000 FY 2017 -18 POB Office Area $ 1,400,000 FY 2018 -19 TP Warehouse $ 980,000 FY 2019 -20 Laboratory $ 277,000 FY 2023 -24 SCB1 $ 1,200,000 FY 2023 -24 Total $ 7,227,000 Seismic Retrofit of SCB is estimated at $7 -8 Million for construction; does not include bracing furnaces Budgeted outside 10 year plan in anticipation of potential change in solids handling method. 10 FY 2014 -15 COLLECTION SYSTEM PROGRAM CATEGORY PROJECT ANNUAL EXPENSE Renovation program North Orinda 5, Walnut $ 8,166,000 Creek 10, TV inspection and others Capacity /Renovations Grayson Creek Trunk in $ 3,100,000 Pleasant Hill Pumping Stations Pump Station piping and $ 150,000 equipment Replacement, Safety Improvements Developer services Developer Services $ 800,000 Contractual Current CADS $ 500,000 Assessment Districts All others $ 601,000 Total $ 13,317,000 Collection System Asset Management Program • Condition Assessment of all lines through TV program allows prioritization of repairs • Points given for structural defects, sags, frequent overflows, root mass etc. • Use actual data, not predictive model • Renovation Program prioritizes by point score and schedules renovation by grouping geographically i.e Lafayette, Orinda, Walnut Creek • First round of TV program completed in November 2010.....currently continuing second round of TV program 11 Pipe Renovated to Date Miles of pipe (6, 8 &10 Inch) renovated to date. FISCAL YEAR PIPE RENOVATED 2005/07 8.1 Miles 2007/08 5.6 Miles 2008/09 6.3 Miles _ 2009/10 7.5 Miles 2010/11 2.6 Miles 2011/12 6.8 Miles _ 2012/13 _ _ 5.3 Miles_ 4.5 Miles 2013/14 TOTALi Completed Renovation 46.7 Miles 12 Renovation Program (6, 8 & 10 inch) Achieves 100% Completion of all known defects by FY 23/24 Total miles of pipe to be renovated - 82.8 miles* Miles of pipe renovated to date - 46.7 miles Remaining miles to renovate - 36.1 miles 10 Yr Budget Miles of Percent of for Pipe Known Renovation Renov. in Defects (millions )** Next 10 Renov. in Yrs * ** 10 Yrs $107.6 63.2 100 %+ * Based on TV inspection of 99 percent of 6, Band 10 inch mains ** Provides $7.2 million for lines currently not identified by TV program * ** Estimated at $320/ft SSO Downward Trend Has Been Significant Since Start of Renovation Program Running 12 -Month Overflow Totals 2003 to present VV 50 60 00 50 11 �O ryo ryo �y0 n0 ryo No ryo ir0 No 1S m m 12 -Month Total at Month -End 13 SSO Downward Trend Has Been Significant Since Start of Renovation Program Capacity Program Pleasant MITI - PleasarN MIIVOrayaon Creek, 'a•rI - 10 year plan includes Latayeaa- ° $30M for high priority Pleasant MITI Road toW In FY 2011/12) capacity projects • $ w w •, r•'}.. a. K:�..:. /1C Walnut Creak- •Y Walnut Blvd raa t ae n-G' t Morage - Moraga Way L+.1 Legend San Ramon - C pp ity O"--y omup Pere, nt Full Plpe Capaeny San Ramon SChaduN C O 1 t]0 {0 oe-pnwnt. & y , avant) a 1 No M.P. of IrMn Ow MS. .100 %tu .100% rls 14 ... . # -. . .... ......MM .....EC MM ........... .........__- ......_M110 , ....•...l• � MMM %WW; Capacity Program Pleasant MITI - PleasarN MIIVOrayaon Creek, 'a•rI - 10 year plan includes Latayeaa- ° $30M for high priority Pleasant MITI Road toW In FY 2011/12) capacity projects • $ w w •, r•'}.. a. K:�..:. /1C Walnut Creak- •Y Walnut Blvd raa t ae n-G' t Morage - Moraga Way L+.1 Legend San Ramon - C pp ity O"--y omup Pere, nt Full Plpe Capaeny San Ramon SChaduN C O 1 t]0 {0 oe-pnwnt. & y , avant) a 1 No M.P. of IrMn Ow MS. .100 %tu .100% rls 14 FY 2014 -15 GENERAL IMPROVEMENTS PROGRAM PROJECT ANNUAL EXPENSE Vehicles and Equipment $ 500,000 Information Technology $ 1,000,000 GDI Treatment Plant and SMMS Replacement $ 450,000 All Other $ 496,000 Total j l��` �ti�- � r1w�� .•c' s.a..;�''1 �� "y..as.��f3.C-'��`� ,�y�a,�.;j ?'. �a3 . n{�`�1L�'!S''tTy��3�N��+�w�'�' ;'��t��•F r"371 .Y .� I�� :�` F Fa` •9 �� w + .- . , r�" r,r,.r v' �..0 •.-- nr._'� —1 ` � i „ J.�rr.- • ", _) �i r� �:•�,..�� r_3+, ( , f�.� ^jigs �� r. .. I Itr.•�! SS � G.w'F Igo -Zt. ' c 6I( IM IT PLEASANT HILL GRAYSON CREEK CAPACITY PROJECT FY 2014 -15 GENERAL IMPROVEMENTS PROGRAM PROJECT ANNUAL EXPENSE Vehicles and Equipment $ 500,000 Information Technology $ 1,000,000 GDI Treatment Plant and SMMS Replacement $ 450,000 All Other $ 496,000 Total j $ 2,446,000 15 GDI & SMMS Replacement F ESG Dau DI&Wd and DaVsloper Jobs Mapping GeoMedia Collection system Plan and p1oNe drawings AutoCAD r o � ColdFuslon (Reports) MapGuide (Spatial) Gp WM Svw nWMaw NpJ SvrvAS a o) SGL Swv 2045 SDL-05 CCCSDLFB IUaerOClal FY 2014 -15 RECYCLED WATER PROGRAM PROJECT ANNUAL EXPENSE $ 202,000 Sul4 wOWLOW SEE IOMAL DIAGRAM a SGL Sarvar 2W5 Planning Concord Landscape — Customer $ 450,000 IBM AS'�00 Server SGL 6vvv 2pQ5 Total ESGSDL Fl1E tWEB_GIS Di CSO-02 (eMauasl ESG oxa tm r o � ColdFuslon (Reports) MapGuide (Spatial) Gp WM Svw nWMaw NpJ SvrvAS a o) SGL Swv 2045 SDL-05 CCCSDLFB IUaerOClal FY 2014 -15 RECYCLED WATER PROGRAM PROJECT ANNUAL EXPENSE $ 202,000 Pleasant Hill Zone 1, Martinez Refineries and other REW Planning Concord Landscape — Customer $ 450,000 Connections $ 652,000 Total 16 Customer Connections Up to 34 New Customers to s A,, Budgeted $450,000 _ Bid in spring 2014 t� t vmpa iw 1 17 FY 2014 -15 Capital Improvement Budget Recommendations FY 2014 -15 CIB Program Total Cost Treatment Plant $ 9.5 million (36.7 %) Critical Funding Program Collection System $13.3 million (51.4 %) BUDGETED General Improvements $ 2.5 million (9.6 %) Facility Capacity Fees Recycled Water $ 0.6 million (2.3 %) Pumped Zone Fees Total $25.9 million (100 %) Sewer Service Charge is Source for Capital Critical Funding Program FY 2013 -14 CAPITAL REVENUES BUDGETED Facility Capacity Fees $4,790,000 Pumped Zone Fees $755,000 Interest Sewer Construction Fund $193,000 Property Taxes (Net after debt paid) _ _ $8,102,000 Sewer Service Charge ($40 capital component) Reimbursements from Others $6,628,000 City of Concord Recycled Water Sales (Net after O &M) Developer Fees/Other TOTAL _ $4,277,000 _ _ $6_3,000 $435,000 _ $25,243,000 18 Current Year Program Sets Beginning SCF Balance for Ten Year Plan FY 2013 -14 CAPITAL PROGRAM Total Expenditures BUDGETED $29.6 million Total Revenue $25.2 million Variance -$4.3 million Beginning SCF Balance 6/30/13 Funds Required for Cash Flow $40.8 million $36 -39 million Capital Program has been deficit spending for many years $700 Capital Program Has Been Deficit Spentil"ng Since FY 2004 -05 530 M Net Bantl 5600 5569 5573 - 555.2— _ Sewn tonetruetron Nna�.B 5518 551.7 ss2 1 $500 $ISA $163 540.0 .6 _ _ S450 5608 535 3 6 7 o Annual Expense 5700 535.3 5300 ' Sid °52a.B -. 5 521 �65fg 26 5 5218 21 9 525 Y 5 9 5200 - Annual Rerenua 5214 52 9B 1T 37,7 ° $1 0 $100 - $00 - 1999 2004 20,7 2002 21 00 O1 02 m Amual Rwenua 5216 $ 1B.9 6110 _ 527 5 5� ay�Annual E�en9e 5208 628.2 6311 _ 5251 5 SCF BIYnn y 556.9 6078 5113 $4514 11 a 2004 2005 2004 2007• 2008- 200? 2014 2011. 201} 2013• 2014 4 OS O6 07 OB 09 10 11 12 13 14 15 1 PMon i.I 530.0 521.8 5763 5353 + 529.4 $219 1 S161 1 8217 1 8223 $252 1 5214 2.B 528.5 527 7 579.6 5331 536.7 3291 528.0 821 B S26 B 829 6 526.5 1.B 567 7 555.2 551 B 5517 S45 0 565 6 $52151° 3 TI 510 9 + 536 4 15313 SFC Balance is not strictly governed by checkbook accounting and may not strictly represent the sum of prior year balance and current year vanance 19 Sewer Service Charge Revenue Diverted from Capital Program to Balance O &M Budget Total Sewer Service Charge per RUE and the Operations and Capital Components $500 $450 $439 $405 $400 Total Charge per RUE $a71 $341 $396 - $350 - $311 $311 s311 $344 $365 $289 $300 $300 $212 $280 $280 $302 $246 $292 $300 $250 $224 $260 $200 $234 $242 $200 $204 $207 $218 $204 $213 rrCrahons Component $150 $185 $100 $76 $58 Capital Program Component $41 $50 $15 0 $54 $76 S48 9 $11 539 0 $43 $0 _- 200001 2001-02 2002-03 200304 2004-05. 200506 200607 2001-08 200609 200910 281011 201112 201213 201314 201415 fthm Preliminary Ten Year Plan Findings - 2014 Service Charge Increase is Needed to Fully Fund Capital + O &M Fiscal SSC Ops SSC Cap Total SSC Total Est Year Compnt Compnt Capital Revenue Budget $365 $40 $405 $25.2 2013 -14 million Prelim $396 $43 $439 $24.4 2014 -15 1 1 million Board Role in Capital Program is Ongoing • Set Initial Capital Funding Levels in December • Confirm Capital Funding Levels in Jan /February as part of overall District Ten Year Financial Plan • Board Workshop Focused on CIB /CIP Projects April • Authorize CIB /Program Budgets and O &M Budget in June • Authorize Supplemental Program Funds when needed • Award Construction Projects > $100,000 • Authorize Construction Change Orders >$100,000 • Authorize Consultant Contracts > $100,000 Questions or Comments? 21 46 Table 4: Capital Improvement Program Authorization Limits' I General Manager authority was revised by Board Resolution on December 15, 2011 2 Limited by the remaining balances of the applicable program budget and contingency account 3 Limited by the remaining balance of the applicable program contingency account 4 Final project budget is established at time of award of construction contract 5 Reduced by project overrun allocations previously made by Department Managers 2013 -14 CIB Introduction Page 10 Department General Board of Action Director Manager Directors Approve Capital Plan None None No limit Authorize Capital Program budgets None None No limit Allocate funds to individual project $25,000 or less Total program No Board authorization budgets budget plus required contin enc 2 Authorize Professional Consulting $35,000 or less $100,000 or less Greater than $100,000 Consultant Services Contracts Technical Consulting $35,000 or less $100,000 or less Greater than $100,000 Services. Professional Eng. $35,000 or less $100,000 or less Greater than $100,000 Services. Allocate funds from program $10,000 $100,000 or less Greater than $100,000 contingency accounts to projects not per project included in the CIB Individual equipment items and None $100,000 or less Greater than $100,000 equipment contin enc Authorize supplemental funds to Not applicable Not applicable Sewer Construction program budgets/ contingency Fund balance accounts Allocate funds for project budget 5% of final project 15% of final project Greater than 15% of overruns budget° or a budget2.3 final project budget2,3 maximum of $10,000 Award construction contracts None $100,000 or less Greater than $100,000 Authorize Additive $35,000 or less $100,000 or less Greater than $100,000 construction Deductive More than ($50,000) No limit No Board authorization change orders required Subcontractor substitutions None All substitutions Substitutions protested unless protested by by subcontractor subcontractor Construction project acceptance None All projects Informational announcement to the Board Close out project None All projects Memo provided to the Board at end of FY I General Manager authority was revised by Board Resolution on December 15, 2011 2 Limited by the remaining balances of the applicable program budget and contingency account 3 Limited by the remaining balance of the applicable program contingency account 4 Final project budget is established at time of award of construction contract 5 Reduced by project overrun allocations previously made by Department Managers 2013 -14 CIB Introduction Page 10 Table 3: Capital Improvement Program Authorization Limits ACTION DEPARTMENT GENERAL BOARD OF DIRECTOR MANAGER DIRECTORS Approve Capital Plan None None No limit Authorize Capital Program None None No limit budgets Allocate funds to individual $25,000 or less Total program budget No authorization project budgets plus contin enc 2 required Authorize consultant contracts /amendments $35,000 or less $50,000 or less Greater than $50,000 Award construction contracts None $15,000 or less Greater than $15,000 Authorize Additive $35,000 or less $50,000 or less Greater than $50,000 construction change orders Deductive More than ($50,000) NA NA Allocate funds from program $25,000 or less per contingency accounts to $10,000 project' Greater than $25,000 projects not included in the CIB Individual equipment items and None $15,000 or less Greater than $15,000 equipment contin enc s Authorize supplemental funds Sewer Construction to program budgets/ Not applicable Not applicable Fund balance contingency accounts Allocate funds for project 5% of final project budget4 or a 15°x6 of final project Greater than 15% of budget overruns maximum of $10,000 budget3,4,5 final budget Projects which have not Projects which have Close out project None required prior Board had prior Board action (informational Position action Paper required) I Treatment Plant, Collection System, General Improvements, and Recycled Water Programs 2 Limited by the remaining balances of the applicable program budget and contingency account 3 Limited by the remaining balance of the applicable program contingency account 4 Final project budget is established at time of award of construction contract 5 Reduced by project overrun allocations previously made by Department Managers a Equipment budget authority limits for the General Manager raised to $15,000 from $5,000 in FY 2010 -11 FY 2011 -12 CIS Intro-9 Central Contra Costa Sanitary District 4900 MILM i BOARD OF DIRECTORS , e POSITION PAPER Board we ang Dace: - December 15, 2011 subject: RESOLUTION SETTING FORTH AND.DELEGATING CERTAIN AUTHORITIES TO THE GENERAL MANAGER, AND RESCINDING PRIOR RESOLUTION sub►mwed By: Elaine R. Boehme IMaaang b?epwiv.: Administration Secretary of the District REVIEWED AND RECOMMENDED FOR BOARD ACTION., E 9oehme i M. Kelly, Deputy erw Mgr/ erw Manager of Erg. ISSUE: Revisions to the General Manager authority are recommended to increase certain authority limits and other minor changes. RECONIVENDATION; Adopt Resolution 2011 -065 (attached) and rescind the prior General Manager Authority Resolution 2010-090. FIN, ANCIAL 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, cpmpromise 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 9oard Meeting vats. 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, at 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. 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. on 9 — Additional Delegations end Limitations on Auth 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 sukwr 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. JCQ,MMCNQED 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, tfie proper funatl6h1hg ofihe Central -Confa 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 cant' 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 A,uthodzadon 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 -085 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 Ememencv 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: Amt iodWon for Easements Acauisitions 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. Resolutlon 2011-065 Page 3 of 4 Section 5: Authorization for Use of Small Claims !,ou t 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 Cailifomia Small Claims Court. This power includes the power Jo 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. Ssdon 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,PQum 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 Autho ft to Award Contracts for District Projects Not Exceeding $100.0 — 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 -085 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 : -Additional-Delegations and Limitations gn 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 19: Bagiselao of edpr ftoiUlgnq - 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 Qf 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. Boshme, 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 -065X v X 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 Ord 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 -4 DiFeGIOFS of the Qstfist 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 Caldomia Health and Safety Code Section 6487, including all documents prepared find circulated as part of the public competitive bidding process, with the exception of financial transactions as defined set#e44 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. I Resolution 201() 1 - 065( -, Page 2of5 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 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 OJ 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 k .: , Board's review of that action. d. Upon its review of the emergency action, the r,; 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 20101 -065 Page 3 of S the District's Capital Improvement Budget, which the ! is : + 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 i r _ .: 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 Califomia 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 G4- D4ecters. Section 6. Claims HandIIngSe*erm Authority = The Board delegates to the General Manager the authority to act on its behalf imsuant to Government Code Sections 910 et seq. to reiect. 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 Goverment Code Section 935.4, the Board delegates the authority to the General Manager to allow, compromise or settle claims against the District not exceeding $26,0W_$59,000 with the understanding that settlements between $10;890 $25,000 and $2000 50 000 would be reported to the Board as information items at a following DisliFirm 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 $60.000$100,000.. Resolution 201 o 1 -065, )> } Page 4 of 5 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. ectio 9E: Additional Delectations 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 j ;chapters entitled "Approvals and Authorizations" and theme entitled "District Proiects" 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, Includin4 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 200810406090 is rescinded. PASSED AND ADOPTED this 15th7tb day of DecemberOGteber, 20101, by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: AYES: Members: Hersketi, LuGey, Menesi Nefed►y, MGGil NOES: Members: None ABSENT: Members: None A -R -tc-G4 P € 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 ISecretary 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 201 1 -065 Page 5 of ATTACHMENT 4 CHAPTER THREE APPROVALS AND AUTHORIZATIONS 3.1 Purpose To define authority for signing requisitions, agreements, contracts, invoices, change orders and other such documents. 3.2 Pollcv 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 Reauirements 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 j. 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. 14 Authorized Signature List and Avnrova/ 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 A2RMva1 of Agreements and &Mgment 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 Enalneerina Aareements Authorization Limits" O&M Pro ect/C/B Professional Consulting Services X100 000 $60100,000 Technical Consulting Services $50100,000 $50100,000 Professional Engineering Services $50100,000 $50100 000 T '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,..,; $1&,808; *4evef +6 9featef— _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% o7 $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 Avcroval 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 Proiects 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 however staff reserves the right to bring these to the Board when appropriate. District Proiect contracts that exceed $100,000 require Board approval of the contract prior to authorization and commencement of worts. District Prol ct contracts less than or equal to $100,000 may be approved by staff members based on their authority limits as Iona as the contract is let to the lowest responsible bidder. For all District Projects, 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 Proiect 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 $ &0100,000 for District Projects. The Board of Directors must approve individual change orders where the amount Is greater than $&C 100,000 for District Proiects. 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 fef each -46ca4 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 Capital Budget, lf} addit+ee, -a lip SUM detiaaf -af KKN440r G,04A96RGY fURd #ef unaf}t+s� +seeds 4alse feved- rl,;-- sentingef+sy fUP44& sed #o -the depa#FPeat6by feq+fest Aa tha&er3efatW. —fie Gene fal Maf}agef +R+st appfeve axpee44ufe6 #fete 4he- GantingeFicy -#eft -Nit" va4ie e# $&,000 or less. T#e BeaFd 01 DIFeMeFs west #left+ the rsoRtingeRr,)�-#jAd with a value greatef than $ -OW. 37— €quipme ♦Lf,t ,�, ReFA Overrun.- �Alhe�h fk, ,asteai corA ,,.., � fFt - 4& mare #ha f f4,a k-4--f—A. . - Gbse a -4 the eveaun does fiet exreed$5,080or -#�O , ate in the dep-aFtmeRt-!&E-qu4A4iePA -GGV6f th�OVeFFL+f?, . A&} the GePAK,& A aeagef to keep himA4eF awaFe -49414a ~budge! Yafianres. -A copy e# l shasifig*he wig -reseed with t phase eRse the FneFAG +s Feseived b4. A#e -GV8FFUn aXseeds -fie- abeVe GFitefia; 4epad ent-& fr►a fequest-� use 66RtiRgeR6y1 fU Rdstesave 44&se6t eveFfMR anda GGRtiRgeF;ry tee+ ef- position may be appFeved--6y tie- GeR2Fa� aRage . it #ie 9vaFFum- positieRpapef and BeaFd appFeval wilt ba Few+ ed. -- Subs#iMiG -- QSeas+oRal �L44 fURGtieRally dFttefeAt EqUupFneRl Budge! 4em: -T-he General Ma-RageF ot.aage6 to, -of- s w4utions a#, ega+pment 'R the- amount e# X99 toss -des $b,9At3 Fepaice a iRg the GhaRgefr subst+ti#+ees. T#e #eliewiRgpresedere should be ellewed_ a- .W4efe a sebsti#etieR -is ReGe66ary, but theAetal does not exseedt4e aat#®dzed Equipment Budget -a �#, a- rAe+-e- wilt be sent to -tie GeReral - Maf+agef detailing#ie-seed#ef b:tt-t#e aR unantiGipat GGSt iRGFea W4 Fesatt4A -!he pafshase eXGeeding " authefized - -ELqNipn)ef}t Budget -&f oust --byf $6;00 -ef -Iasis, - 6®RtiRQBfisjf m6ffle 6hoHid b,& £entia#ie- Genefai ManaW 4ou iiflifg#ta Reed tof sub6titutieR andlef "add+ti@Ral amount tfo4R fiend ---- -v fBQtl+ fed to fl4aLem t#e pUFGhase. eft -ledge par#ases t4at a eed $5; -8A9 tee heard. s.C)RCe ##e Geeefat Manager or4he Beard laas approved the sub stRutleR a eepy a 4he— meme of Are- -&ubfRitted -to -Ri fo#asiRg aed P u r,.- ha6lRg -will WoGeed Ali toe- pf66flFe M6 Pt: 12.1 Pumos ATTACHMENT 6 CHAPTER TWELVE DISTRICT PROJECTS 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 Reguimnents 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, Le., 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 pollcy 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 altemative 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 $68100,000 for District Projects. The Board of Directors must approve individual change orders where the amount is greater than $68100,000 for District Proiects. 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 specifles 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- Oualification 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- qualffication 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 Proiects Less than or Eoual 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 Califomla Labor Code Section 1771, any District Project that Includes contractor - provided labor requires that the prevailing rate of per them 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 Projects 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 them 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 BeaFd 4 P+reGtersDistdct 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 Proiect contracts that exceed $100,000 require Board approval of the contract prior to authorization and commencement of work. District Proiect contracts less than or equal to $100.000 may be approved by the General Manager sta#- bees based on f#eif allth0fitY iim" 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 reiect any bids presented and readvertise. Staff does not have the authority to reiect 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 proiect 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 terns 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. 12.6.5 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 -bld conference and/or job walk is held, however, prior adequate notification of the pre -bld 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 -bld 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 off lee 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 alteratlon 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 bldder meets the specifications at the lowest responsive, responsible level. For each specific requirement, a basic ayes" 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 bldder by withdrawing the original bid and submitting a corrected bld 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 bld. The notice must be received by the Secretary of the District prior to the time set for bld opening. If there Is not sufficient time prior to bid opening to withdraw the original bid and submit a corrected bld, the bldder 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- submisslon. Mistakes discovered before the bld 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 extenslon 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 Califomla 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 fumish 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 bldder to fumish 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 tern 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 proposenbidder 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 $45100.000 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 certifled 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 falls 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 (Adminlstration, 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 Perfionnanee. 126 Inspection of Plant and Audit of Re 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. 1. 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. ATTACHMENT 3 TABLE 3: CAPITAL IMPROVEMENT PROGRAM AUTHORIZATION LIMITS Revised November 9, 2011 ACTION GENERAL BOARD OF MANAGER DIRECTORS Approve Capital Plan None No limit Authorize Capital Program budgets None No limit Allocate funds to individual project budgets Total program budget No Board authorization plus contingency' required Professional Consulting Services $100,000 or Greater than 550,060 less $100,000 Authorize Consultant Technical Consulting Services $5&;QOO $100,000 or Greater than $- 59;980 Contracts less $100,000 Professional Engineering Services X54, $100,000 or Greater than %4-,Wo less $100,000 Allocate funds from program contingency accounts to x,000 $100,000 or Greater than K- -5;900 projects not Included In the CIB less per project $100,000 Individual equipment items and equipment contingency F, �- $100,000 or Greater than $1 -5,Q90 less $100,000 Authorize supplemental funds to program budgets/ Not applicable Sewer Construction contingency accounts Fund balance Allocate funds for project budget overruns 15% of final project Greater than 15% of bud et -3 final project bud eta Award construction contracts4 $ X5,88 $100,000 or Greater than $t 5, less $100,000 Authorize Additive WX,190 $100,000 or Greater than $50;998 less $100,000 construction No Board authorization change orders Deductive No limit required All substitutions unless Substitutions protested Subcontractor substitutions protested by by subcontractor subcontractor Informational Construction project acceptance All projects announcement to the Board Informational memo Close out project All projects provided to the Board at end of fiscal ear 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. Pfewou&a lher+ly Revised authority limit or item.