Ord 2010-780 ORDINANCE NO. 78
AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE COSTA MESA
SANITARY DISTRICT REPEALING CHAPTER 4.05 IN ITS ENTIRETY FROM THE
OPERATIONS CODE AND ESTABLISHING A NEW ORDINANCE FOR
COMPETITIVE BIDDING AND PURCHASING
WHEREAS, the District currently adheres to the California Public Contract Code,
Section 20800 -20806 for sanitary districts; and
WHEREAS, in 1983 the Uniform Public Construction Accounting Act was
adopted that amended the California Public Contract Code to give public agencies more
flexibility in competitive bidding and purchasing; and
WHEREAS, it is the desire of the District to establish a uniform system for
competitive bidding and purchasing that will provide for the fair and equitable treatment
of all persons involved in the purchasing process and to obtain the highest possible
value in exchange for public funds; and
WHEREAS, it is the desire of the District to repeal Chapter 4.05 in its entirety
from the Operations Code and establishing a new ordinance for competitive bidding and
purchasing.
NOW, THEREFORE, the Board of Directors of the Costa Mesa Sanitary District
.does hereby ORDAIN as follows:
Section 1. This Ordinance repeals Chapter 4.05 in its entirety from the Costa
Mesa Sanitary District Operations Code and hereby replaces it to read as follows:
"Chapter 4.05
Purchasing
Section 4.05.010. Title. This chapter shall be known and may be cited and
referred to as the "Purchasing Ordinance of the Costa Mesa Sanitary District."
Section 4.05.020. 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 4.05.030. Definitions.
(a). Unless otherwise indicated, the following definitions shall apply to
all provisions of this chapter:
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1. "Act" means the Uniform Public Construction Cost Accounting Act found in
Public Contract Code Section 22000 et seq.
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. "Direct bidding procedure" means quotes shall be obtained, if applicable
for purchases more than five thousand dollars ($5,000) and less than thirty thousand
dollars ($30,000) and a Pricing Quote Sheet completed. The general manager shall
approve final selection
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8. "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.
9. "Formal bidding procedure" means a procedure which. meets the
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.
10. "Informal bidding procedure" means that at least three (3) bids shall be
obtained from a predetermined vendor list for purchases of more than thirty thousand
dollars ($30,000) and less than one hundred twenty five thousand dollars ($125,000)
and the general manager shall approve final selection.
11. "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.
12. "Negotiated contract" shall mean a written agreement which details terms
and conditions of the purchase.
13. "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.
14. "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:
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a. Construction, I reconstruction, erection, alteration, renovation,
improvement, demolition involving any publicly owned, leased, or operated facility.
15. "Purchasing officer" means the general manager or his or her designee(s)
as provided in Section 4.05.040. Pursuant to Section 4.05.040, the general manager
may change his or her designation at any time
Section 4.05.040. Purchasing Officer. The purchasing officer shall be the general
manager or his or her designee(s). If the general manager designates one or more
persons to act in this role, the purchasing officer(s) shall serve at the pleasure of the
general manager. The duties of the purchasing officer may be combined with those of
any other officer(s) or position(s).
Section 4.05.050. Purchasing Officer - Powers and duties.
(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 4.05.060. Purchasing Polices 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.
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(b). The District shall secure professional and maintenance services based on
Best Value and subject to any limitations imposed by state law.
(c). In purchasing, supplies, services and equipment, the District shall make
use of competitive bidding, either direct, formal or informal, whenever 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 4.05.110(A) of this chapter.
(e). Change Orders. The general manager shall have authority to approve
change orders up to the cumulative amount of ten percent of the original contract. The
Board of Directors shall have the authority to approve any change order in an amount
exceeding ten percent of the original contract amount.
Section 4.05.070. Bidding, Purchasing and Contracting.
(a). $5,000 or less: Any purchase of $5,000 or less may be awarded by the
general manager or his or her designee(s) responsible for the project by any direct
bidding procedure as defined herein.
(b). $5,001 - $125,000: Any purchase of more than five thousand dollars
• ($5,000), but less than or equal to one hundred twenty -five thousand dollars ($125,000)
may be awarded by the general manager pursuant to the informal bidding procedure set
forth in Section 4.05.100.
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(c). $125,001 or more: Any purchase of more than one hundred twenty -five
thousand dollars ($125,000) shall be awarded by the Board of Directors pursuant to the
formal bidding procedure set forth in Section 4.05.110.
(d). District Engineer Approval. The district engineer shall review and approve
the working details, drawings, plans, and specifications prepared for public projects.
(e). Purchasing Officer Approval: The purchasing officer, or his or her
designee, shall review and approve all contracts of five thousand dollars ($5,000) or
more.
(f). Five -Year Term Limitation: No agreement or contract shall extend for a
period of more than five (5) years, including any authorized extensions. Excepted 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 Engineer, District Counsel and District Treasurer.
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Section 4.05.080. No Bidding Requirement. In purchasing, supplies, services
and equipment that will cost $5,000 or less no bids are required. The District shall
negotiate the best price for the District and issue a purchase order.
Section 4.05.090. Direct Bidding Procedure.
(a) Direct bidding procedures shall be used for purchases between $5,001
and $30,000.
(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 4.05.100. Informal Biddinq Procedure.
(a). Informal bidding procedures shall be used for purchases between $30,001
and $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 4.05.100(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.
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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 that will cost between
$30,001 and $125,000 shall be evaluated 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 or 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 general manager may
award the contract by any alternative purchasing procedure.
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Section 4.05.110. Formal Bidding Procedure.
(a). This formal bidding procedure shall be used for purchases greater than
$125,000 or whenever formal bidding purchasing is otherwise 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 that will cost more than
$125,000 shall be evaluated 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 4.05.120. Usinq 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 manager 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 manage 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.
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(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 4.05.130. Debarment. The District shall not do business with any person,
firm, corporation, or any other entity convicted of any felony.
Section 4.05.140. 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 General Manager or person formally authorized by the
Board by resolution to sign on behalf of the District. Purchase orders and contracts
$5,000 or less may be signed by the General Manager or person designated to sign by
the General Manager."
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 remain in full force and effect and the Board of Directors of the Costa
Mesa Sanitary District 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 validity 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 Section 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 -,%At day of 2010.
Secr Lary
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President
is
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF COSTA MESA )
I, JOAN REVAK, Clerk of the Costa Mesa Sanitary District, hereby certify that the above
and foregoing Ordinance No. 78 was duly and regularly passed and adopted by said Board of
Directors at a regular meeting thereof, held on the 261h day of August 2010 by the following
vote:
AYES: Arlene Schafer, Robert Ooten, Gary Monahan, James Ferryman, Art Perry
NOES:
ABSENT:
ABSTAI N:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Costa
Mesa Sanitary District, this 26th day of August 2010.
Clerk of t e Costa Mesa Sanitary District
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