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Ord 2025-141 ORDINANCE NO. 141 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT INCREASING THE CONTRACTING AUTHORITY FOR THE GENERAL MANAGER AND MAKING NUMBERING CHANGES TO THE CODE WHEREAS, the Board of Directors has adopted purchasing and procurement provisions as part of its Operations Code; WHEREAS, the Board has determined to increase the contracting authority of the General Manager, so that he may contract for up to $25,000 without complying with any particular bidding or procurement method; and WHEREAS, the Board has also determined to make other "housekeeping" corrections to its Operations Code. NOW, THEREFORE, the Board of Directors does hereby ORDAIN that the District's Operations Code is amended to read: Section 1. That Sections 4.04.060-4.04.100 of the District's Operations Code are amended to read, and Section 4.04.110 is added to the Operations Code to read as follows: "Section 4.04.060. Bidding, Purchasing and Contracting. (a) Less than $25,000:Any purchase less than$25,000 may be awarded by the Purchasing Officer or persons formally designated by the General Manager responsible for the project by any bidding procedure or procurement method, that serves the best interest of the District. A purchase order may be used as the contract. (b) $25,000 to less than $60,000: Any purchase for twenty-five thousand ($25,000) to less than sixty thousand dollars ($60,000) may be awarded by the Purchasing Officer via the direct bidding method, pursuant to Section 4.04.070. (c) $60,000 to less than $125,000: Any purchase for sixty thousand dollars ($60,000), but less than one hundred twenty-five thousand dollars ($125,000) may be awarded by the Purchasing Officer. Informal bidding procedures may be used, pursuant to the bidding procedure set forth in Section 4.04.080. (d) $125,000 or more: Any purchase of one hundred twenty-five thousand dollars ($125,000), or more, shall be awarded by the Board of Directors pursuant to the formal bidding procedure set forth in Section 4.04.090. (e) Purchasing Officer Approval: The purchasing officer, or other person designated by the Board of Directors, shall review, and approve, all contracts or purchases less than $125,000. (f) Five-Year Term Limitation: No agreement or contract shall extend for a period of more than five (5) years, including any authorized extensions. Exempted from the foregoing limitation shall be the trash and recycling contracts and the professional services contracts for those persons serving as District Officers including General Manager, District Counsel, and District Treasurer. Also exempted from the bidding limitations shall be firms providing highly specialized or technical services that the Board or General Manager have determined require familiarity and/or continuity due to specialized knowledge of the system, specialized expertise not obtainable by utilizing the bidding process, or other unique factors that would make bidding meaningless. Nothing herein is meant to prevent new agreements with the same contracting party after a new competitive bid process is undertaken. (f) Trash and Recycling Contracts: Agreement shall be ten years with the option of extending the contract for an additional two (2) five-year options upon mutual agreement of the parties. (Ord. 135, 2022). Section 4.04.070. Direct Bidding Procedure. (a) Direct bidding procedures shall be used for purchases of goods and equipment between $25,000 and less than $60,000. Professional Services and other service contracts may be evaluated, selected, and awarded using the Best Value method. (b) If practical, at least three (3) vendors or contractors shall be contacted to provide informal quotes. (c) Quotes received will be documented on the District "Quote Sheet." (d) District's Authority:The District may reject any or all bids received and may waive any minor irregularities in each bid received. Section 4.04.080 Informal Bidding Procedure. (a) For purchases of goods, equipment and services that cost $60,000 or more but less than $125,000, informal bidding may be used. This procedure requires a document, similar to a bid specification, so that competitive bids can be received. The bidding documents shall be provided to prospective bidders, and an outreach process shall be utilized that promotes competitive bids. Sufficient time, usually 10 days, shall be provided bidders to submit bids or proposals. At least three bids shall be sought, unless impractical. (b) Professional and other service contracts may be obtained using the Best Value method. (c) Bids or proposals shall be in writing. A record shall be maintained of how the bidder was chosen. Section 4.04.090 Formal Bidding. For the purchase of goods, equipment, or services of $125,00 or more, the formal bidding procedure shall be used. This includes more detailed bidding specifications, if appropriate, and more extensive outreach. Any method designed to obtain competitive bids shall be used, and a sealed bid procedure shall be used which utilizes at least 14 days for bid submittal. Criteria for ranking bidders shall be used and formalized scoring of the bids shall be required. A record of the bid process shall be maintained. Professional and other service contracts may be awarded using the Best Value method. Section 4.04.100 Exceptions and Alternative Bidding Procedures. In certain circumstances, the above rules need not be followed: a) Emergencies. In an emergency, bidding may be dispensed with, and purchases will be made in the best interest of the district, which shall be documented. b) Competitive bidding is already completed. When another government agency has already engaged in a competitive bid that would make District bidding unnecessary, the District may rely on the other government agency's bid process when applicable to the District's needs This includes, but is not limited to, the U.S or State Government Services Agency. c) No bids received. The District may contract with a party when no bids are received by using any process that promotes the best interest of the District. d) No competitive market. When the general manager determines that a competitive market does not exist, such as when conventions and hotels are limited to professional organizations, or make competitive choice impractical, the District may contract with any party using any process that promotes the best interest of the District. A record of the process engaged in shall be kept. e) Best interests of the District. In any other circumstance in which the best interest of the District shall be served by not engaging in the bidding process, a record shall be kept of the reasons, and the Board shall be advised. Section 4.04.110. Change Orders. The general manager shall have the authority to approve change orders up to the cumulative amount of ten percent of the original contract or fifteen thousand dollars ($15,000), whichever is greater. The Board of Directors shall have the authority to approve any change order exceeding that amount. (Ord. 92, 2012)" Section 2. Should any part, clause or section of this Ordinance be declared by any Court of competent jurisdiction to be invalid, the remaining provisions of this Ordinance shall nevertheless be and remain in full force and effect and the Board of Directors of the Costa Mesa Sanitary District of Orange County, California, hereby declares that each and every section, clause, provision or part of this Ordinance would have been adopted and made a part of this Ordinance without the adoption of any portion thereof and that the invalidity of any part or provision hereof shall not in any way affect the validity or enforcement of the remaining provisions of this Ordinance that may stand on their own. Section 3. Pursuant to Health and Safety Code Sections 6490 and 6491.3, the Clerk shall cause this ordinance or a summary thereof to be published in a newspaper of general circulation printed and published in the District according to law. crunDe PASSED and ADOPTED this l' day of 025. Secretary resident STATE OF CALIFORNIA) COUNTY OF ORANGE) SS STATE OF CALIFORNIA) COUNTY OF ORANGE) SS CITY OF COSTA MESA) I, Noelani Middenway, Clerk of the Costa Mesa Sanitary District, hereby certify that the above and foregoing Ordinance No. 141 was duly and regularly passed and adopted by said Board of Directors at a regular meeting thereof, held on the 15 day of December, 2025 by the following votes: AYES: Scheafer, Ooten, Perry, Wiltshire, Wright NOES: None ABSENT: None ABSTAIN: None IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Costa Mesa Sanitary District, this 15 day of December, 2025. .713 Clerk of the bosta Mesa unitary District