Ord 2023-137Ordinance No. 137
AN ORDINANCE OF THE COSTA MESA SANITARY DISTRICT CHANGING THE
AUTHORITY TO AWARD CONTRACTS AND MAKING OTHER CLARIFICATIONS
AND REVISING CHAPTERS 4.04 AND 4.06
WHEREAS, on August 26, 2010, the Board adopted Chapter 4.04 of the
Operations Code pertaining to Purchasing; and
WHEREAS, on March 28, 2019, the Board adopted Chapter 4.06 of the
Operations Code pertaining to Refunds and Dispositions of Surplus Property; and
WHEREAS, the Board does hereby desire to amend Chapters 4.04 and 4.06 to
provide increased authority for purchasing and issuing refunds.
NOW, THEREFORE, The Board of Directors of the Costa Mesa Sanitary District
does hereby ORDAIN as follows:
Section 1. That Chapter 4.04 of the Costa Mesa Sanitary District Operations Code
is hereby revised to read:
"Chapter 4.04 - Purchasing
Section 4.04.010. Ti le. This chapter shall be known and may be cited and
referred to as the "Purchasing Ordinance of the Costa Mesa Sanitary District."
Section 4.04.020. General Purpose. The purpose of this chapter is to define a
uniform system for the purchase of supplies, services and equipment by the District, to
provide for the fair and equitable treatment of all persons involved in the purchasing
process, to obtain the highest possible value in exchange for public funds and to
safeguard the quality and integrity of the purchasing system.
Section 4.04.030. Definitions.
(a) Unless otherwise indicated,
provisions of this chapter:
the following definitions shall apply to all
1. "Act" means the Uniform Public Construction Cost Accounting Act found in
Public Contract Code Section 22000 et sea.
2. "Alternative purchasing procedure" means purchasing supplies, services or
equipment when any of the following situations exist: an emergency; no competitive
market; competitive bidding already completed; state purchases; or no bids received.
3. "Best value" means the best value to the District based on all factors that
may include, but not limited to the following:
A. Cost;
B. The ability, capacity, and skill of a contractor to perform a contract or
provide the supplies, services or equipment required;
C. The ability of a contractor to provide the supplies, services, or
equipment promptly, or within the time specified, without delay or interferences;
D. The character, integrity, reputation, judgment, experience and
efficiency of a contractor;
E. The quality of a contractor's performance on previous
purchases/services with the District; and
F. The ability of a contractor to provide future maintenance, repairs, parts
and services for the use of the goods and services purchased.
4. "Authorized contracting party" means the District official or body provided
with authority under this chapter to approve a contract or to make a purchase.
5. "General Manager" means the general manager or person designated by
the general manager to perform all or some of the duties prescribed in this chapter.
6. "Commission" means the California Uniform Construction Cost Accounting
Commission created by Division 2, Part 3, Chapter 2, Article 2 of the California Public
Contracts Code (commencing at Section 22000).
7. "No bidding required" procedure means that bids are not specifically required
for goods, services, and/or materials that are less than $15,000 in value. Any method may
be used to obtain a quote, or quotes.
8. "Direct bidding procedure" means quotes shall be obtained, if applicable, for
purchases of fifteen thousand dollars ($15,000) and less than sixty thousand dollars
(<$60,000) and a Pricing Quote Sheet completed. The general manager will approve the
final selection. A scope of work, specification, and/or bidding document(s) should be
developed and used to solicit bids.
9. "Emergency" for purposes of public projects shall have that meaning
provided in Public Contract Code Sections 22035 and 22050. Emergency for all other
purchasing purposes means a situation which makes competitive bidding, either formal
or informal, impractical or not in the best interests of the District.
10. "Formal bidding procedure" means a procedure which meets the
[2
requirements of state and local law, including the Act, this chapter and any policies and
procedures approved by the general manager consistent with this chapter.
11. 'Informal bidding procedure" means that at least three (3) bids shall be
obtained from a predetermined vendor list, for purchases of sixty thousand dollars
($60,000) and less than one hundred twenty-five thousand dollars ($125,000). The general
manager will approve final selection. A scope of work, specification, and/or bidding
document(s) should be developed and used to solicit bids. Informal requests for bids may
also be advertised.
12. "Maintenance work" shall have that meaning provided in Section 22002(d)
of the Act, as that Section may be amended from time to time. In accordance with the Act,
maintenance work shall include, but shall not be limited to, all of the following:
A. Routine, recurring, and usual work for the preservation or protection
of any publicly owned or publicly operated facility for its intended purposes.
B. Minor painting.
C. Sewer maintenance, including videotaping, cleaning, manhole
restoration and pump station maintenance are repairs.
D. Maintenance of facilities, including roof repairs, heating and air
conditioning repairs, and electric repairs.
E. Vehicle and equipment maintenance and repairs.
13. "Negotiated contract' shall mean a written agreement which details terms
and conditions of the purchase.
14. "Professional services" means all services performed by persons in a
professional occupation, including, but not limited to, consulting and performance services
for accounting, auditing, computer hardware and software support, engineering,
architectural, planning, financial, legal, management, environmental, communication and
other similar professional functions which may be necessary for the operation of the
District.
15. "Public project' shall have that meaning provided in Section 22002(c) of the
Act, as that Section may be amended from time to time. In accordance with the Act, public
project shall not include maintenance work. In addition, public project shall include, but
shall not be limited to the following:
A. Construction, reconstruction, erection, alteration, renovation,
improvement, demolition involving any publicly owned, leased, or operated facility.
Section 4.04.040. Purchasing Officer. The purchasing officer shall be the
general manager or other person designated by resolution of the Board of Directors. The
duties of the purchasing officer may be combined with those of any other officer(s) or
position(s).
[3
Section 4.04.050. Purchasina Officerw d D (a) The
purchasing officer, in accordance with the policies set forth in this chapter and in any
written procedures approved by the general manager consistent with this chapter, shall
have the power to:
1. Purchase or contract for supplies, services and equipment required
by the District.
2. Negotiate and recommend to the Board of Directors execution of
contracts for the purchase of supplies, services and equipment.
3. Prepare and implement policies and procedures governing the
bidding, contracting, purchasing, storing, distribution and disposal of supplies,
services and equipment for the District.
4. Prescribe and maintain such forms as may be reasonably necessary
to the implementation of this chapter and any other policies and procedures
approved by the general manager consistent with this chapter.
5. Sell any supplies and equipment not needed for public use or that may
become unsuitable for their intended use.
6. Develop and maintain any bidder's list, contractor's list or vendor's
catalog file necessary to the operation of this chapter and any other policies and
procedures approved by the general manager consistent with this chapter.
Section 4.04.060. Purchasing Policies and Procedures.
(a) The District shall secure supplies, public projects and equipment at the
lowest cost commensurate with the quality and scope needed, and subject to any
limitations imposed by state law.
(b) The District shall secure professional and maintenance services based on
Best Value, as defined in Section 4.04.030, subsection (a)(3), and subject to any
limitations imposed by state law.
(c) In purchasing supplies, services and equipment, the District shall make use of
a competitive bidding method based on dollar value and type of services, materials, or
equipment being procured, and as required by law, this chapter, or any policies and
procedures approved by the general manager consistent with this chapter.
(d) Direct, formal, or informal competitive bidding is not required, for instance,
when an "emergency" is declared pursuant to Section 4.04.120(a) of this chapter. These
methods may be used in conjunction with the Best Value method for procuring
professional services or for procuring maintenance services.
(e) Change Orders. The district engineer has the authority to approve
contractual time extensions. The general manager has the authority to approve change
orders up to the cumulative amount of ten percent of the original contract orfifteen thousand
[4
dollars ($15,000), whichever is greater. Only the Board of Directors has the authority to
approve any change order exceeding those amount(s). (Ord. 92, 2012)
Section 4.04.070. Biddina. Purchasing and Contracting
(a) Less than $15,000: Any purchase less than $15,000 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, including the No Bidding Requirement, as defined herein.
(b) $15,000 to less than $60,000: Any purchase fifteen thousand ($15,000) to
less than sixty thousand dollars (<$60,000) may be awarded by the Purchasing Officer via
the direct bidding method, pursuant to Section 4.04.090.
(c) $60,000 to less than $125,000. Any purchase of 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 4.04.100.
(d) $125,000 ormore: 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 4.04.110.
(e) District Engineer Approval: The district engineer shall review and approve the
working details, drawings, plans, and specifications prepared for public projects.
(f) Purchasing Officer Approval.. The purchasing officer, or their designee, shall
review and approve all contracts or purchases less than $125,000.
(g) 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.
(h) 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 4.04.080. No Bidding Required. In purchasing, supplies, services,
and equipment that will cost less than $15,000, no bids are required. The District shall
negotiate the best price for the District, or obtain quotes, and will issue a purchase order.
Section 4.04.090. Direct Bidding Procedure.
(a) Direct bidding procedures shall be used for purchases between $15,000
and less than $60,000. Professional Services contracts may be evaluated, selected, and
[5
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 4.04.100. Informal Bidding Procedure.
(a) Informal bidding procedures shall be used for purchases between $60,000,
or more, and less than $125,000.
(b) Public projects, as defined by the Act and in accordance with the limits listed
in Section 22032 of the Public Contract Code, may be let to contract by informal
procedures as set forth in Section 22032, et seq., of the Public Contract Code.
(c) A list of contractors shall be developed and maintained in accordance with
the provisions of Section 22034 of the Public Contract Code and criteria promulgated from
time to time by the California Uniform Construction Cost Accounting Commission.
(d) Notice Inviting Informal Bids. Where a public project is to be performed
which is subject to the provisions of this chapter, a notice inviting informal bids shall be
mailed to all contractors for the category of work to be bid, as shown on the list developed
in accordance with Section 4.04.100(b), and to all construction trade journals as specified
by the California Uniform Construction Cost Accounting Commission in accordance with
Section 22036 of the Public Contract Code. The notice shall describe the project in general
terms and how to obtain more detailed information about the project and state a time and
place for submission of the bids. Additional contractors and/or construction trade journals
may be notified at the discretion of the District soliciting bids, provided however:
1. If there is no list of qualified contractors maintained by the District for
the particular category of work to be performed, the notice inviting bids shall be sent
only to the construction trade journals specified by the Commission.
2. If the product or service is proprietary in nature such that it can be
obtained only from a certain contractor or contractors, the notice inviting informal
bids may be sent exclusively to such contractor or contractors.
(e) Professional services and maintenance work may be evaluated, selected, and
awarded using the Best Value method.
1. If practicable, at least three (3) vendors or contractors shall be
asked to submit informal bids, and the District shall endeavor to receive informal
bids from at least three (3) vendors or contractors.
(f) Proprietary Projects or Products: If the general manager certifies that, to the
best of his or her knowledge, the product �oor service is proprietary in nature and can be
obtained only from a limited number of contractors, and that no equivalent products or
services are available, the notice inviting informal bids may be sent exclusively to such
vendor(s) or contractor(s).
(g) District's Authority: The District may reject any or all bids received and may
waive any minor irregularities in each bid received.
(h) Proposal Submittal: Contractors shall submit their proposals in writing.
(i) No Bids Received: If no bids are received, the Purchasing Officer may
award the contract by any alternative purchasing procedure.
Section 4.04.110. Formal Bidding Procedure.
(a) This formal bidding procedure shall be used for purchases of
$125,000 or more. The formal bidding purchasing will also be used when required by this
chapter.
(b) The formal bidding procedure shall comply with all aspects of state and local
law governing formal bidding, including, but not limited to, the Public Contract Code,
Government Code, Labor Code, resolutions of the Board of Directors as may be adopted
from time to time, and policies and procedures as the general manager may approve from
time to time.
(c) The notice inviting formal bids shall comply with Section 22037 of the Act,
as such section may be amended from time to time. For public projects only, the notice
inviting formal bids shall be published at least 14 days before the date of opening a
newspaper of general circulation as defined in Section 22037 of the Act. The notice shall
also be sent to all construction trade journals specified in Section 22036 of the Act at least
thirty (30) calendar days before the date of bid opening. Any other notice as may be
deemed proper may also be given for any particular project.
(d) The Board shall adopt plans, specifications and working details for projects
subject to formal bidding.
(e) Professional services and maintenance work may be evaluated, selected,
and awarded using the Best Value method.
(f) District's Authority: The District may reject any or all bids received and may
waive any minor irregularities in each bid received.
(g) Proposal Submittal: Contractors shall submit their proposals in writing.
(h) No Bids Received: If no bids are received, the authorized contracting party
may award the contract by any alternative purchasing procedure.
Section 4.04.120. Using Alternative Purchasing Procedures For non -Public
Projects and other situations provided in this section, an alternative purchasing procedure
which results in a negotiated contract, force account, purchase order or any other
procedure determined by the general maps ger to be in the best interests of the District
and in compliance with the District's policies and procedures may be used.
(a) Emergencies: In situations determined by the general manager to constitute
an emergency for a public project pursuant to Section 22035 of the Act and Public
Contract Code Section 22050. The Board of Directors hereby delegates to the general
manager the power to declare a public emergency and take any directly related and
immediate action required by the emergency. Work shall be performed without the benefit
of competitive bidding, either formal or informal, only so long as necessary under those
sections. The general manager shall report to the Board at successive regular meetings
stating the justification for continuing with the emergency work.
(b) Competitive Bidding Already Completed: When the authorized contracting
party determines that a competitive bid procedure has been conducted by another public
agency (e.g. through California Multiple Award Schedules or U.S. General Services
Administration) and the price to the District is equal to or better than the price to that public
agency.
(c) State Purchase: When the purchase is made on behalf of the District by the
State Department of General Services.
(d) No Bids Received: When no bids are received pursuant to either the public
project informal bidding procedure or the formal bidding procedure.
(e) No Competitive Market: When the general manager determines that a
competitive market does not exist, such as, but not limited to, with memberships in certain
professional organizations, meetings, conventions, some forms of travel, legal advertising
and when the needed supplies, services and equipment are proprietary and can only be
provided by one source.
(f) Best Interests of the District: When the Board of Directors, on
recommendation of the general manager, determines that an alternative procedure will be
in the best interests of the District and the policies set forth in this chapter.
Section 4.04.130. Debarment. The District shall not do business with any person,
firm, corporation, or any other entity convicted of any felony. (Reso. 94-541, 1994)
Section 4.04.140. Signature. In accordance with the Health and Safety Code
Section 6487, all contracts must generally be signed by the President and countersigned
by the Secretary. Purchases orders and contracts for purchases of goods or services or
public works below One Hundred Twenty -Five Thousand Dollars ($125,000) may be
signed by the Purchasing Officer or person formally authorized by the Board by resolution
to sign on behalf of the District."
IL
Section 2. That Chapter 4.06 is amended to read:
"Chapter 4.06 — Refunds and Dispositions of Surplus Property
Section 4.06.010. Refunds. The General Manager shall have the authority to
authorize refunds of payments made to the District when the amount is Fifteen Thousand
Dollars ($15,000) or less, provided all other legal requirements have been met. Such
authority shall include, but not be limited to, sewer and trash refunds.
Section 4.06.020. Disoosition of Surplus Property.
(a) At such times as the General Manager or designee shall determine, an
inventory shall be prepared of supplies and equipment that are no longer used or which
have become obsolete or worn out. Such property may be used as a trade-in for other
supplies or equipment or may be disposed of by auction house or other method that
ensures the best interests of the District.
(b) To prevent conflict of interest issues, employees and officers of the District
shall not participate in such purchases unless approved in writing by the General Manager.
(c) The Board shall approve of any disposition of property reasonably valued in excess
of Fifteen Thousand Dollars. The General Manager shall have authority to approve of
dispositions of property reasonably valued at Fifteen Thousand Dollars or less. (Ord. 124,
2019) "
Section 3. 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 4. 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.
PASSED and ADOPTED this 24th day of July, 2023
Secretary Presid nt
[9
APPROVED AS TO FORM:
District Counsel
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. 137 was duly and regularly passed and
adopted by said Board of Directors at a regular meeting thereof, held on the 24th day of
July, 2023 by the following votes:
AYES: c'Q ..G]�X Sona r QeYv� I O��eVi, C��9
NOES: ww .
ABSENT: *,S,\)Q'
ABSTAIN: Nb�.,
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Costa
Mesa Sanitary District, this 24'h day of July, 2023.
of the (:�bsTa'Me$)i Sanitary District
[10