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HomeMy WebLinkAbout14. Consider adopting revisions or maintaining status quo to Sec. 11 of Board Policy No. BP 037, GM Delegation of Authority Page 1 of 17 Item 14. Algi CENTRAL SAN BOARD OF DIRECTORS WE VS.101 M POSITION PAPER MEETING DATE: JUNE 17, 2021 SUBJECT: CONSIDER ADOPTING REVISIONS OR MAINTAINING THE STATUS QUO RELATED TO SECTION 11. CONTRACTS FOR GOODS AND SERVICES OF BOARD POLI CY NO. BP 037 - GENERAL MANAGER DELEGATION OF AUTHORITY SUBMITTED BY: INITIATING DEPARTMENT: STEPHANIE KING, PURCHASINGAND ADMINISTRATION-PURCHASING AND MATERIALS SERVICES DIVISION MANAGER MATERIALS SERVICES PHILIP LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION K_ Roger S. Bailey Kenton L. Alm General Manager District Counsel ISSUE Revisions to Board policies require Board approval. BACKGROUND Board Policy No. BP 035 — Purchasing was adopted in 2018. This policy along with two other Board policies: BP 036— Informal Bidding, and BP 037— Delegation of Authority to General Manager address various protocols about how goods and services are procured at Central San. Past and current policies have provided that the General Manager may procure goods and services without specific dollar limitations, except that such procurements may not result in spending exceeding the Operations and Maintenance or Capital Improvement budgets. "Goods and services" does not include professional services, which have a $200,000 limit per contract without requiring Board approval, and BP 037 (as well as BP 036) also provides for limitations of$200,000 for public works informal bidding in accordance with the Uniform Public Construction Cost Accounting Act (UPCCAA). As such, District Projects above $200,000 require formal June 17, 2021 Regular Board Meeting Agenda Packet- Page 97 of 168 Page 2 of 17 bidding and approval by the Board of Directors. The language in BP 037 related to goods and services procurements currently reads: 11. Contracts for Goods and Services a. Limited byAnnual Operating Budget. The General Manager and Purchasing and Materials Manager are authorized to award and enter into contracts and purchase orders for goods and services that are not "professional services" or"public works contracts," such as utilities, maintenance services, equipment, chemicals and supplies so long as overall spending does not exceed the Board's annual adopted operating budget, provided purchasing policy and procedures are adhered to. This provision merits consideration and, potentially, modification. In the experience of District Counsel, and the Director of Finance and Administration, this provision appears to be somewhat of an outlier in special district and municipal practice. That said, this policy, while not widespread, is considered a best practice by the National Procurement Institute (NPI) and the National Institute of Governmental Purchasing (NIGP). The NPI established the Achievement of Excellence in Procurement (AEP)Award as a national program to benchmark organizational excellence in procurement. Central San has received this award for the past 10 consecutive years. The Purchasing Manager contacted the NPI to obtain information about how widespread this practice is. Attachment 1, entitled "Criterion 17 AEP Stats," details the required authority for the Chief Procurement Official to qualify as well as a list of all agencies who met this criterion. This list includes 36 agencies (19%) out of 188 agencies that received the award. Ten (24%) of these agencies were in California out of 42 agencies in California that received the award. In light of these facts, potential alternatives to provide more Board involvement or oversight over goods and services procurements are summarized below, listed in order of"most restrictive"to "least restrictive:" 1. Contracting for goods and services above $200,000 would require Board approval. This would align the procurement practice for goods and services with current delegated authority for Professional Services and District Projects, where contracts above $200,000 require Board approval. Pros: • Fuller transparency of all procurements taking place at Central San. • More comparable practice to peer agencies. Cons: • Additional volume of procurements would require Board approval, with impacts on staff and Board. Additional staff workload in preparing Position Papers. Additional Board review of position papers and potentially longer board meetings may result. • Would need to specify how the $200,000 limit is enforced. Options for triggering Board approval include: a. Any individual purchase order(PO) and contract above $200,000 for the term of the contract. b.Any individual PO and contract above $200,000 for a given year. c. Cumulative purchase orders and contracts to a particular vendor above $200,000 in a given year. District Counsel noted that Central San historically had several contracts that cumulatively amounted to relatively large amounts and the periodic competitive procurements were not as frequent as good practice would have commended. However, the June 17, 2021 Regular Board Meeting Agenda Packet- Page 98 of 168 Page 3 of 17 Purchasing Division has prioritized bidding contracts that exceeded five years through extensions. • Should define and provide for exceptions in the event of critical procurements that cannot wait until the next Board meeting, such as:. a. "The General Manager may issue purchase orders for goods and services in excess of the above thresholds in such situations where a delay would represent a significant threat to operations, health and safety, or finances of Central San. In such a situation, the General Manager will timely report such procurements at a subsequent Board meeting." • Would need to consider when Board approval would be required for amendments, change orders or renewals to these purchase orders and contracts. Language to effectuate such a change is shown below(with additions underlined): 11. Contracts for Goods and Services a. Goods and Services Limit. The General Manager and Purchasing and Materials Manager are authorized to award and enter into contracts and purchase orders for goods and services that are not "professional services" or"public works contracts," such as utilities, maintenance services, equipment, chemicals and supplies that do not exceed $200,000. The General Manager may also issue purchase orders and contracts for goods and services in excess of the above threshold in such situations where, in the General Manager's written opinion, a delay would represent a significant threat to operations, health and safety, or finances of Central San. In such a situation. the General Manager will timely report such procurements at a subsequent Board meeting_ 2. Continue current practice while tightening budgetary control around specific Budgetary Control Levels (BCLs). The General Manager and Purchasing and Materials Manager would retain contracting authority for procurements that are not District Projects or Professional and Consulting Services "as long as the anticipated annual expenditure does not result in an anticipated overage in the relevant budgetary control levels (BCLs)". Such BCLs could beset at the following level of granularity, which are the categories used for non-labor related costs in the Operating and Maintenance Budget: 1. Purchased Property Services (Repairs and Maintenance, Hauling and Disposal, Security, Rentals, Cleaning) 2. Other Services (Professional, Technical, Other) 3. Supplies and Materials (Utilities and Fuel, Chemicals, General Supplies) 4. Other Expenses (Insurance, Memberships, Training and Meetings, Miscellaneous/Other) As a variation, the BCL levels could be set instead as the Departments (Administration, Operations, and Engineering and Technical Services). Pro: • Would provide some additional level of Board oversight/approval if expenditures were anticipated to exceed the overall levels specified in the BCL. Cons: • Could potentially delay procurement of important goods and services. • Some additional staff work needed for Board communication. • Would need to be configured to provide necessary tracking in the Oracle Enterprise Resource Planning (ERP) system. June 17, 2021 Regular Board Meeting Agenda Packet- Page 99 of 168 Page 4 of 17 Language to effectuate such a change is shown below(with additions underlined): 11. Contracts for Goods and Services a. Limited byAnnual Operating Budget. The General Manager and Purchasing and Materials Manager are authorized to award and enter into contracts and purchase orders for goods and services that are not "professional services" or"public works contracts," such as utilities, maintenance services, equipment, chemicals and supplies so long as purchasing policy and procedures are adhered to, and overall spending does not exceed the Board's annual adopted operating budget and annual budgetary limits by major expense type category (Purchased Property Services, Other Services. Supplies & Materials. Other Expenses) are not exceeded. 3. After-the-fact reporting to the Board on transactions. Authority remains for the General Manager and Purchasing and Materials Manager to procure goods and services within the overall budget, but the Board would receive an after-the-fact report on items that exceed certain limits, such as: a. Any individual purchase order, contract or change order that exceeds the General Manager authority limit ($200,000). b. Cumulative contracted amount above the General Manager authority limit. Pros: • Would provide transparency of purchases of goods and services above $200,000. The specific format of the report is yet to be determined, but staff would work with the Oracle ERP system implementer to develop a suitable report if this option is selected. • Would not delay procurements due to the need for Board pre-approval. • Continued maintenance of a "best practice" per NPI and NIGP. Con: • To the extent the Board wanted to approve in advance such procurements and potentially decline to approve or modify such procurements, this option would not facilitate that. The Board could still inquire about the transaction from the periodic reporting, and direct changes in subsequent procurements. 11. Contracts for Goods and Services a. Limited byAnnual Operating Budget. The General Manager and Purchasing and Materials Manager are authorized to award and enter into contracts and purchase orders for goods and services that are not"professional services" or"public works contracts," such as utilities, maintenance services, equipment, chemicals and supplies so long as overall spending does not exceed the Board's annual adopted operating budget, provided purchasing policy and procedures are adhered to. The Board shall be provided with a quarterly announcement of procurements of goods and services in excess of$200,000. The report will specify the criteria used to define transactions above this limit. 4. Status quo. Authority remains for the General Manager and Purchasing and Materials Manager to procure goods and services within the overall budget and within policies and procedures. Pros: • Wouldn't require staff and Board resources in developing and reviewing a report for procurements that are within staff authority. • Would not delay procurements due to the need for Board pre-approval. June 17, 2021 Regular Board Meeting Agenda Packet- Page 100 of 168 Page 5 of 17 Continued maintenance of a "best practice" per NPI and NIGP. Con: • To the extent the Board wanted to approve in advance such procurements and potentially decline to approve or modify such procurements, this option would not facilitate that. • After the fact reporting on transactions under this authority is not provided. This option would not require any change to the language in Section 11. Contracts for Goods and Services of Board Policy No. BP 037 - General Manager Delegation ofAuthority Staff recommends Alternatives 3 or 4. If, after a period of time (i.e., one year), the Board would prefer to move toward a stricter control on contracting, then Alternative 1 or 2 could be adopted. ALT ERNAT IVES/CONSIDERAT IONS There are four alternatives for consideration. Staff recommends the third or fourth alternatives, providing after-the-fact reporting regarding procurements exceeding $200,000, or maintaining the status quo. The Board could choose any of the four alternatives, or provide some other direction to staff. FINANCIAL IMPACTS There are no direct fiscal impacts anticipated from adopting the revisions for the third alternative, apart from some minor staff time related to reporting. This reporting would be developed and generated by the Oracle ERP system, and provided as part of the quarterly financial report. There would be no fiscal impacts for maintaining the status quo, the fourth alternative. COMMITTEE RECOMMENDATION Staff presented these proposed revisions to the Administration Committee on May 4, 2021. One Committee Member was of the view that no changes from the status quo were necessary given other compensating controls and practices, which include: (1) Finance Committee review of expenditures; (2) significant Committee and Board review of the annual budget document; (3) progress in reducing the number of long-standing un-bid contracts (only two such small contracts outstanding); (4) availability of internal audit to review contracts (one such audit took place in 2019). The other Committee Member indicated they supported Option 3, but also did not see a strong need to change from the status quo. As a result of the Committee's feedback, staff added an explicit "Option 4" to maintain the status quo. RECOMMENDED BOARD ACTION Consider adopting revisions or maintaining the status quo related to Section 11. Contracts for Goods and Services of Board Policy No. BP 037 - General Manager Delegation ofAuthority. Strategic Plan Tie-In GOAL THREE: Fiscal Responsibility Strategy 2—Ensure integrity and transparency in financial management June 17, 2021 Regular Board Meeting Agenda Packet- Page 101 of 168 Page 6 of 17 ATTACHMENTS: 1. Criterion 17 AEP Stats 2. Current Board Policy No. BP 037 June 17, 2021 Regular Board Meeting Agenda Packet- Page 102 of 168 Page 7 of 17 Achievement of t'ATrocurement@ <202710 Award Winner>* Criterion 17. Authority of the Chief Procurement Official to Solicit and Award Contracts The purpose of this criterion is to demonstrate that an elected body cannot overturn the professional judgment of the Chief Procurement Official. The agency has enacted a procurement code, directive or policy to allow the Chief Procurement Official to solicit and award all competitively bid contracts for goods and non-professional (non- Architecture/Engineering) services without limits for items that have been approved in the adopted budget, without agency governing body(e.g. Mayor and Council, Board of Supervisors, School Board, etc.) approval for specific contract award (source selection).This criterion covers those procurements that have competitive specifications, multiple sources and formal bidding processes. If it is not clearly demonstrated in your submittal that your Chief Procurement Official has unlimited authority to award contracts,you will not receive points for this criterion. Below is a list of agencies that received credit for this criterion, California agencies highlighted in blue: First Name Last Name Email Agency Boyd Donavon boyd.donavon@ventura.org Ventura County Brian Cotham bcotham@csufresno.edu CSU Fresno Carla Ozgunduz carla.ozgunduz@sdcounty.ca.gov San Diego County Carrie Mathes Carrie.Mathes@ocfl.net Chelseya Molner chelseya@mesc.org Clara Vega clarav@iadb.org Dan Howell howelld@emwd.org Eastern Municipal Water District Daniel Garza daniel.garza@cityofconcord.org City of Concord Diana Wilson diana.wilson@longmontcolorado.gov Donna Ginter dginter@gwu.edu Douglas McClement doug.mcclement@unlv.edu Dru Zachmeyer dzachmey@calpoly.edu Cal Poly State University Duane Tucker duane.tucker@cu.edu Gerald Plummer gplummer@isd.lacounty.gov Los Angeles County Gina Encallado EncalladoGL@co.monterey.ca.us County of Monterey Heather Moore heather.moore@ogs.ny.gov June 17, 2021 Regular Board Meeting Agenda Packet- Page 103 of 168 Page 8 of 17 Jackie Lee Macchiusi jackie.macchiusi@vaughan.ca Jana Vargas jvargas@san.org San Diego County Regional Airport Authority Karen Frank kfrank@ufl.edu Kim Austin kim.austin@njpacoop.org laura jestings laura.jestings@tucsonaz.gov Lori Peterson Ipeterson@dsdmail.net Lorie Sheppard Iorie.sheppard@asu.edu Mark Neihart mneihart@orovalleyaz.gov Mike Sheets william.m.sheets@wv.gov Nicole Brewer nbrewer@wmata.com Priscilla Kung pkung@howardcountymd.gov Ray Hooper rhooper@seminolecountyfl.gov Rebecca Kee rkee@vbgov.com Renee Funk renee-funk@uiowa.edu Rosey Murton rmurton@fsu.edu Roxann Parker Roxann.parker@state.de.us Shari Powell shari@uoregon.edu Stephanie King sking@centralsan.org Central Contra Costa Sanitary District Susan Levey slevey@panynj.gov Treasa McLean tmclean@floridapoly.edu June 17, 2021 Regular Board Meeting Agenda Packet- Page 104 of 168 Page 9 of 17 Attachment 2 Number: BP 037 Authority: Board of Directors Adopted: 8/16/2018 Revised: 01/17/2020, 01/21/2021 Reviewed: Initiating Dept./Div.: Board of Directors/ .CENTRAL SAW Secretary of the District BOARD POLICY DELEGATION OF AUTHORITY TO GENERAL MANAGER PURPOSE The proper functioning of the Central Contra Costa Sanitary District ("Central San") 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 Central San. With the exception of the Board's delegation of authority and limitations on staff authority through the approval and adoption of the Central San Budget as well as Board Policy No. BP 036 — Informal Bidding, this policy consolidates and clarifies the Board's delegation of authority to the General Manager and his or her designee and helps to ensure the efficient operation of Central San. POLICY The General Manager and his or her designee shall have the authority to carry out the functions of Central San as follows: 1. General Authorization The General Manager is authorized to execute all deeds, contracts, warrants, releases, receipts and similar documents for and on behalf of Central San in accordance with California Health and Safety Code §6487, including all documents prepared and circulated as part of the public competitive bidding process. Nothing in this Section 1 is intended to alter or eliminate any other statutory or District Code procedural requirements which may exist. 2. Emergency Powers Pursuant to California Public Contract Code (PCC) §22050(b)(1), the Board has delegated to the General Manager via Resolution No. 2020-002 the authority to order any emergency action pursuant to PCC §22050(a)(1) as follows: a. Immediate Action in Emergencies. The General Manager has the power to take any directly-related and immediate action required by an emergency, as defined in PCC §1102, and to procure the necessary June 17, 2021 Regular Board Meeting Agenda Packet- Page 105 of 168 Page 10 of 17 Number: BP 037 DELEGATION OF AUTHORITY TO GENERAL MANAGER Page 2 of 9 equipment, services, and supplies for those purposes, when the anticipated expenditures may exceed the lower limit of the threshold requiring bidding for a project under the amount specified by PCC §22032(a) (currently $60,000), without giving notice for bids to let contracts. b. Reporting to the Board. In the event of an emergency, as defined, the General Manager shall report to the Board not later than 7 days after the action, or at its regularly scheduled meeting if that meeting will not occur later than 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. Regular Review Required. In the event of an emergency, as defined, the Board shall initially review the emergency action as set forth in paragraph b. above, 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. Termination of Emergency. 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. 3. Emergency Operations Plan a. Director of Emergency Services. The General Manager is delegated the authority to appoint a Director of Emergency Services and has the authority set forth in Resolution No. 2020-003, or as set forth in Central San's most recently adopted Emergency Operations Plan resolution or as amended by state law. b. Proclamation of Local Emergency. Under emergency conditions in which immediate action must be taken to protect lives and property, respond to emergencies, and to restore essential services for the public health and safety, the Director of Emergency Services may activate the District's Emergency Operations Plan and proclaim a local emergency. C. Managinq Emergency Operations. Upon proclamation of a local emergency, the Director of Emergency Services will direct and manage all emergency operations and make decisions to allocate resources and expend funds as necessary to meet the needs of the emergency. June 17, 2021 Regular Board Meeting Agenda Packet- Page 106 of 168 Page 11 of 17 Number: BP 037 DELEGATION OF AUTHORITY TO GENERAL MANAGER Page 3 of 9 d. Ratification of Proclamation of Local Emergency. The Board shall meet within seven (7) days of proclamation of the local emergency to ratify the proclamation by resolution and authorize continued emergency operations and recovery actions. e. Duration of Proclamation. The proclamation of local emergency shall remain in effect for fourteen (14) days from the date of ratification, unless terminated or extended by the Board. f. Modifications to Emergency Operations Plan. The Director of Emergency Services shall be authorized to make modifications to the Emergency Operations Plan and modify practices and procedures to maintain compliance with the California Emergency Services Act (CESA). 4. Use of Small Claims Court The General Manager is authorized to pursue civil remedies against persons or entities in California Small Claims Court, including seeking judgments and any other remedies available within its jurisdiction. 5. Claims Handling a. Reiection of Claims. The General Manager is authorized to act on behalf of the Board pursuant to Government Code §§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 Central San. b. Settlement/Payment of Claims. Pursuant to Government Code §935.4 and Resolution No. 2020-004, the Board delegates the authority to the General Manager to allow, compromise or settle claims against Central San not exceeding $50,000, and to authorize payment of any such claims up to the stated limit. The term "claims" excludes District expenses, including emergency response costs, incurred as part of the claims adjusting process. C. Reportinq of Settlements. All settlements greater than $25,000 and less than $50,000 will be reported promptly to the Board as informational items at a publicly-noticed Board meeting. 6. Easement Acquisitions and Leasing Property a. Acquisition of Easements. The General Manager is authorized to negotiate for grants of easements or offers of dedication and, where required, purchase easements and offers of dedication in favor of Central San. This delegation is limited to easement acquisitions or exchanges in amounts up to $200,000 each when easement acquisitions are included in project budgets. Easement acquisitions or exchanges valued in excess of June 17, 2021 Regular Board Meeting Agenda Packet- Page 107 of 168 Page 12 of 17 Number: BP 037 DELEGATION OF AUTHORITY TO GENERAL MANAGER Page 4 of 9 $200,000 require separate Board action. The General Manager shall also be authorized to 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 acquisition of said easements and offers of dedication. The General Manager will provide periodic reports to the Board on such purchases and expenditures. However, the Board shall retain the sole power to accept by resolution any and all easements and offers of dedication received by Central San. After acceptance of an easement or dedication by the Board, the General Manager shall have the authority to record said easements and offers of dedication for the purpose of providing legal notice of Central San's acceptance and the property rights contained therein. b. Rights of Entry, Etc. The General Manager is authorized to purchase or otherwise obtain rights of entry and approve restoration agreements, encroachment permits, real property agreements and similar documents affecting access to or use of real property deemed necessary or prudent for the carrying out of Central San activities. If recording of any such documents is required to create permanent rights and legal notice with regard to such real property matters, such documents will require Board approval for formal acceptance and authorization to record. C. Real Property Agreements. Pursuant to Resolution No. 2021-008, the General Manager is authorized to approve, execute and record with the County Recorder's Office real property agreements intended to address any existing and/or proposed Class One encroachments as well as existing known and unknown Class Two encroachments as defined by District Code 7.15.010. However, the Board has retained the sole power to approve, execute and authorize the recording of any real property agreements related to new Class Two encroachments, as defined by District Code 7.15.010. Any such proposed new Class Two encroachments shall continue to be presented to the Board for consideration. d. Fundin . The General Manager is authorized to fund the purchase of easements, offers of dedication and similar real property-related rights, provided adequate funding is included in Central San's Board-approved Capital Improvement Budget. e. Lease Agreements. The General Manager, in accordance with the provisions of Chapter 7.08 of the District Code, is authorized to execute agreements relating to the leasing out of Central San property which has been declared by the Board after a public hearing as not needed for Central San's operations for the period covered by the lease term. June 17, 2021 Regular Board Meeting Agenda Packet- Page 108 of 168 Page 13 of 17 Number: BP 037 DELEGATION OF AUTHORITY TO GENERAL MANAGER Page 5 of 9 7. Joint Powers Agreements a. Board-approved Construction Projects. The General Manager is authorized to execute Joint Powers Agreements and similar cooperative 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 $200,000. b. Other Construction Activities. The General Manager, or his or her designee, is authorized to execute Joint Powers Agreements under Board- approved projects designated to exchange funds related to construction activities, such as raising manhole covers, where the funds exchanged in the agreement do not exceed $200,000. 8. Contracts for District Projects Not Exceeding the General Manager Public Works Delegation Limit Pursuant to PCC §22034 (c), the General Manager's Public Works Delegation Limit is $200,000 or the amount of the informal bid limit as established periodically by the State of California through Statute (PCC §22032(b)) related to the Uniform Public Construction Cost Accounting Act (UPCCAA). The General Manager is authorized to take such actions as are statutorily provided to the Awarding Body for contracts for District Projects of not more than the General Manager's Public Works Delegation Limit provided legally appropriate bidding or procurement procedures have been undertaken. See Exhibit A. 9. Professional Consulting, Technical Consulting and Professional Engineering Services Agreements a. New Agreement Authorization Limit. The General Manager is authorized to approve and execute services agreements for Professional Consulting, Technical Consulting and Professional Engineering that do not exceed $200,000 in total cost. b. Agreement Amendments. The General Manager is authorized to amend services agreements for Professional Consulting, Technical Consulting and Professional Engineering as follows: 1) Current Agreement - $2 Million or Less. For agreements with a current amount of$2 million or less, the amendments shall not exceed $100,000. June 17, 2021 Regular Board Meeting Agenda Packet- Page 109 of 168 Page 14 of 17 Number: BP 037 DELEGATION OF AUTHORITY TO GENERAL MANAGER Page 6 of 9 2) Current Agreement— More than $2 Million. For agreements with an original amount of more than $2 million, the amendments shall not exceed $200,000. 3) Amendments Causing Agreement Total to Exceed$200,000. Board approval is required to amend any agreement originally signed by the General Manager under this delegation of authority if the initial agreement and amendment(s) combined exceed $200,000. The above limits are cumulative. C. Reporting Requirement. Any professional consulting agreements entered into by the General Manager between $50,000 and $200,000 will be periodically included in an informational announcement to the Board. See Exhibit A. 10. District Projects and Capital Improvement Program a. Capital Improvement Program Authorization Limits. The General Manager is authorized to expend funds available within the Capital Improvement Budget as set forth and limited by the amounts and other limitations set forth in Exhibit A. b. Change Orders. The General Manager is authorized to approve change orders (cumulatively) up to the construction contract contingency budget determined at time of award on all District Projects, limited by the authorizations defined in Exhibit A. As a guideline, typically the contract contingency shall not exceed 10 percent of the award amount. The percentage may be adjusted to a lower figure for larger projects or may be increased on projects where special circumstances are present. Such lower or higher contingency amount will be evaluated on a case-by-case basis. C. Increase to Contract Contingency. Board authorization is required to increase the contract contingency budget amount on contracts awarded by the Board after time of award. See Exhibit A. 11. Contracts for Goods and Services a. Limited by Annual Operating Budget. The General Manager and Purchasing and Materials Manager are authorized to award and enter into contracts and purchase orders for goods and services that are not "professional services" or "public works contracts," such as utilities, maintenance services, equipment, June 17, 2021 Regular Board Meeting Agenda Packet- Page 110 of 168 Page 15 of 17 Number: BP 037 DELEGATION OF AUTHORITY TO GENERAL MANAGER Page 7 of 9 chemicals and supplies so long as overall spending does not exceed the Board's annual adopted operating budget, provided purchasing policy and procedures are adhered to. 12. Procurement Cards The General Manager is authorized on behalf of Central San to enter into credit card agreements and administer the credit card program on behalf of Central San. 13. Personnel Actions Otherwise Reserved to Board pursuant to District Code Chapter 4 The General Manager is authorized to take the following personnel actions which are otherwise reserved to the Board pursuant to Chapter 4 of the District Code: a. Adds/Cancels. The addition or deletion of any permanent positions approved in the annual budget (Section 4.04.020 of the District Code). These deletions and additions may not exceed the number of authorized positions and result in an increase in Central San's annual budgeted labor costs. b. Classifications. The establishment of new classifications and assignment of pay grade within the existing salary schedule, as well as any amendments to or the abolition of classification descriptions. These actions may not result in an increase of Central San's annual budgeted labor costs (Sections 4.12.010 and 4.12.040 of the District Code). C. Manager Appointments. The appointment of management-level positions (Section 4.16.070(a) of the District Code). 14. Other Personnel Actions The General Manager is authorized to take the following actions without Board approval: a. Transitional Positions: Authorize up to five (5) General Manager "transitional positions" at any given time for up to 24 months to backfill positions vacated due to an extended leave of absence or as necessary to properly address succession planning. General Manager "transitional positions" are positions not necessarily authorized in the annual budget. The cost associated with these appointments cannot result in an increase in Central San's annual budget. b. Appointments/Disciplinary Actions. Make appointments and promotions, take disciplinary actions and take such other actions as required for the proper operation of Central San, provided such actions are consistent with June 17, 2021 Regular Board Meeting Agenda Packet- Page 111 of 168 Page 16 of 17 Number: BP 037 DELEGATION OF AUTHORITY TO GENERAL MANAGER Page 8 of 9 the then current Central San personnel rules and procedures, Memoranda of Understanding (MOU) and Board Policies. C. Employee Recognition. Grant administrative leave for employee recognition purposes, such as for safety awards or similar special recognitions for undertaking Central San responsibilities outside of the employee's existing job function. The granting of such leave will be evaluated by the General Manager on a case-by-case basis. d. Other Actions. Take any other actions as set forth in the Board approved MOUs with Central San's bargaining units. 15. Records Management Program a. Records Retention Schedules. Pursuant to Resolution No. 2019-051, the General Manager is authorized, in conjunction with District Counsel, to approve all revisions to Central San's Records Retention Schedules involving the following: changes in state law, changes in record keeping practices or operational needs, lengthening of retention periods, and changes determined by District Counsel to be of a ministerial nature. Board approval is required by resolution for changes to the Records Retention Schedules involving the following: shortening of retention periods, and changes determined by District Counsel to be substantive. [Original retained by the Secretary of the District] June 17, 2021 Regular Board Meeting Agenda Packet- Page 112 of 168 Page 17 of 17 Number: BP 037 DELEGATION OF AUTHORITY TO GENERAL MANAGER Page 9 of 9 EXHIBIT A Capital Improvement Program Authorization Limits Action General Manager Board Approve Capital Improvement Plan and Budget None No limit (CIPICIB) Transfer funds to individual project budgets $500,000 or less Greater than$500,000 Professional Consulting Services Enter into Technical Consulting Services $200,000 or less Greater than$200,000 Agreements Professional Engineering Services Amend Amend Agreements<_$2 million $100,000 or less 2 Greater than$100,000 Agreements Amend Agreements>$2 million $200,000 or less 2 Greater than$200,000 Transfer funds from CIB contingency account to $200,000*or less per Greater than$200,000* projects not included in the CIB project 3 Authorize purchase of individual equipment Not to exceed the limit of the No limit items Equipment Budget Authorize supplemental funds to program budgets None No limit and contingency account Award construction contracts 4 $200,000*or less Greater than$200,000* Authorize Additive $200,000*or less Greater than$200,000* Construction No limit; if greater than$200,000, Change Orders Deductive informational announcement to Not applicable Board Authorize subcontractor substitutions All substitutions unless protested Substitutions protested by by subcontractor subcontractor Accept construction projects All projects Informational announcement to Board Close out projects All projects Memo provided to Board at fiscal yearend Acquire easements $200,000 or less Greater than$200,000 Limited by the remaining balances of the applicable program and contingency account. 2 This limit is cumulative. 3 Limited by the remaining balance of the applicable contingency account. 4 Bid protests and rejection of all bids must go to Board with the exception of those under$200,000 and which fall under the provisions of the Uniform Public Construction Cost Accounting Act(UPCCAA)(California Public Contract Code§§22042 and 22042.5). *These limits shall be raised concurrently with changes to the UPCCAA(California Public Contract Code§22032(a), representing the threshold above which formal bidding is required. June 17, 2021 Regular Board Meeting Agenda Packet- Page 113 of 168