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HomeMy WebLinkAbout2022-06-14 - Resolution No. 2022-16 RESOLUTION NO. 2022-16 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT AMENDING THE DISTRICT'S PURCHASING POLICY AND RESCINDING RESOLUTION NO. 2021-20 WHEREAS, from time to time it is necessary for the Board of Directors to review the Purchasing Policy and make modifications that reflect current District procedures, public policy demands, and economic conditions; and WHEREAS, the Board of Directors desires to modify the Purchasing Policy last adopted by Resolution No. 2021-20 on June 22, 2021. NOW, THEREFORE, the Board of Directors of Yorba Linda Water District does find, determine, and resolve: SECTION 1: The Yorba Linda Water District Purchasing Policy as attached hereto is hereby adopted and shall be deemed effective June 14, 2022. SECTION 2: That Resolution No. 2021-20 is hereby rescinded effective June 14, 2022. PASSED AND ADOPTED this 14th day of June 2022 by the following called vote: AYES: Directors DesRoches, Hawkins, Jones, Lindsey, and Miller NOES: None ABSTAIN: None ABSENT: None �\ J. Wa ne Miller, PhD, President Yorba Linda Water District ATTEST: Annie Alexander, Board Secretary P Yorba Linda Water District Reviewed as to form by General Counsel: Andrew B. Gage sq. Kidman Gagen Law LLP Resolution No.2022-16 Amending the District's Purchasing Policy and Rescinding Resolution No.2021-20 1 YORBA LINDA WATER DISTRICT 3010-007-POL Page 1 of 17 PURCHASING Dept/Div: Finance Approved By: Resolution No. 2022-16 Effective Date: June 14, 2022 Applicability: Districtwide Supersedes: Resolution No. 2021-20 See Also: N/A 1.0 General Policy 1.1 This Yorba Linda Water District Purchasing Policy (“Policy”) establishes policies and procedures for the District to (a) bid and purchase services, materials, equipment, and supplies (referred to collectively as “Services and/or Materials”), pursuant to Government Code Section 54201 et seq., and (b) bid and award Public Works projects. 1.2 This Policy establishes the Board of Directors’ (the “Board”) approved policies and procedures regarding the Procurement of Services and Materials and Public Works projects, including expenditure authorization and limits, competitive proposal and bidding requirements, and general Procurement procedures. All purchases of Services or Materials and Public Works projects to be paid by the District must adhere to the authority level and dollar limits of this Policy as set forth in Section 2.0, except as otherwise provided by specific terms and exceptions in this Policy. 2.0 Authorization 2.1 By adoption of this Policy, the Board is authorizing the General Manager and other designated representatives to exercise certain duties and responsibilities that are essential for the day-to-day operation of the District. 2.2 The General Manager may delegate the Procurement of Services and Materials and Public Works projects to those staff members given specific authority, consistent with the terms of this Policy. 2.3 Delegation of purchasing authority may be through the authorized use of Purchasing Cards, Purchase Orders, check requests, or other written authorization. All such purchases will be made in conformity with the policies and procedures prescribed within this Policy. 2.4 The Board-established Procurement limits and Contract signatory authorities are listed in Table 1 below. These limits are applicable on a per-expenditure/per-Contract basis, not on an aggregated basis, for unrelated activities. Table 1 Procurement Limits and Contract Signatory Authority Title Expenditures Contract Signature Authority General Manager Up to $75,000 $75,001 and over with Board Authorization; up to $75,000 without Board Authorization. Assistant General Manager Up to $50,000 Up to $50,000 Department Managers Up to $25,000 Up to $25,000 YORBA LINDA WATER DISTRICT 3010-007-POL Page 2 of 17 Procurement Limits and Contract Signatory Authority (Cont.) Title Expenditures Contract Signature Authority Budget Analyst, Customer Service Billing Administrator, Principal Engineer, Records Mgmt Administrator, Senior Accountant, Senior Engineer, Senior Executive Assistant, Senior IS Administrator, Superintendents Up to $5,000 None Administrative Personnel Up to $2,000 None 3.0 Definitions The terms referenced in this policy shall have the meanings as defined below: 3.1 Administrative Personnel – District administrative employees authorized by the General Manager to purchase miscellaneous items, food, and travel in support of District functions includes Executive Assistant, Human Resources Analyst, Operations Lead Staff, and any other administrative position as authorized by the General Manager. 3.2 Amendment – A written change or addition to a legal document which, when properly executed, has the same legal validity of the original document. 3.3 Board – The Board of Directors of Yorba Linda Water District. 3.4 Change Order – A written Amendment modifying the terms of an existing Contract or Purchase Order. 3.5 Consultant – Any person, firm, or entity that provides or offers to provide Professional Services to the District. 3.6 Contract - Written agreement authorizing a contractor, Consultant, supplier, or service provider to provide Services or Materials, or Public Works, in accordance with the material requirements, conditions, or scope of work stated in the Contract. 3.7 Contractor – Any person, firm, or entity that submits a bid, proposal, or Contract in connection with a procurement or service. This term also includes any person who conducts business as an agent or representative of the contractor. 3.8 District – Yorba Linda Water District. 3.9 Emergency – A situation in which unforeseen circumstances present an immediate risk of harm or hazard to real or personal property, the public health, safety, welfare, or District personnel or property, or threaten serious interruption of District operations. 3.10 General Manager – General Manager of the District or the person appointed by the Board to act in the capacity of the General Manager and authorized to administer this Policy on their behalf. 3.11 Invitation to Bid - A formal process for soliciting sealed bids from qualified prospective suppliers or Public Works Contractors. YORBA LINDA WATER DISTRICT 3010-007-POL Page 3 of 17 3.12 Multiple Year Contract - A Contract for the purchase of Services, Materials, or Public Works for (a) a multiple year term or (b) that may contain provisions to extend performance by exercising optional renewal periods. A Multiple Year Contract does not obligate the District beyond the initial award period and shall not provide for a cancellation payment to the Contractor if options are not exercised 3.13 Non-Discretionary Purchases – Payments to utilities, temporary employment services, insurance providers, healthcare providers and national, federal, state, or local agencies that relate to routine obligations and expenses essential to the District’s ability to provide service to customers and that have been approved in fiscal year operating or capital budgets. 3.14 Non-Professional Services – Services other than Professional Services, including, but not limited to, supply and maintenance services. 3.15 Procurement - The purchase or lease of Services or Materials, or Public Works. 3.16 Procurement Card - A form of charge card (also referred to as a P-Card or Purchasing Card) that allows for goods to be purchased without using a Purchase Order 3.17 Professional Services – Any type of special service or advice in financial, economic, accounting, engineering, legal or administrative matters by persons specially trained and experienced and competent to perform the special services required. (Gov’t Code § 53060.) Such services include but are not limited to architectural; engineering; environmental; financial; land surveying; construction management; audits; training services; legal services; preparation of planning or studies; SCADA integration; technology application development; and personnel, job classification and benefit studies. 3.18 Public Works – As defined by California Public Code Section 22002, are public projects, which include construction, reconstruction, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility. Maintenance work is not considered a public project for purposes of this definition. 3.19 Purchase Order (PO) – An authorization, under a standardized form in which the party designated as the “provider” is to provide Services and Materials for which the District agrees to pay. 3.20 Request for Proposal (RFP) - A solicitation used for the Procurement of Professional Services and Non-Professional Services. Prospective suppliers or Consultants submit proposals based on requested information and are evaluated/awarded based on pre-established criteria. 3.21 Request for Quotes (RFQ) - A solicitation used for Procurement of construction Services or Materials. 3.22 Requisition (REQ) - The procedural method by which departments may request a PO for the purchase of materials, supplies or equipment. Requisitions are entered into the District’s ERP system application. YORBA LINDA WATER DISTRICT 3010-007-POL Page 4 of 17 3.23 Single Source Purchase - Procurement where: (a) there is a compelling reason for only one source, a preferred brand, like material, homeland security goods, services, etc., to be procured; or (b) the commodity is unique, including, but not limited to, acquisition of data processing, telecommunications and word processing equipment, goods and services; or (c) the purchase of a specific brand name, make or model is necessary to match existing District equipment or facilitate effective maintenance and support; or (d) when it is in the best interest of the District to extend or renew a Contract from a previous contract period, based on satisfactory service, reasonable prices, avoidance of start-up costs, avoidance of interruptions to District business, or good business practices. Such a Procurement of $25,000 or greater must be presented to the Board of Directors at the next regular scheduled meeting. 3.24 Sole Source Purchase - Procurement where only one viable source exists. This is usually due to legal restrictions of patent rights and copyrights, a proprietary process, warranty issues, original equipment, etc. Such a Procurement of $25,000 or greater must be presented to the Board at the next regular scheduled meeting. 4.0 General Procurement Policies 4.1 Procurement practices shall comply with laws, regulations, and guidelines of the State of California and any other applicable law and provisions of grant or funding contracts, if applicable. 4.2 Any employee/individual affecting any Procurement outside of the policies and procedures established by this Policy and without General Manager or Board authorization to do so, may be subject to disciplinary action and/or termination in accordance with District policies. 4.3 Expenditures and Contract awards must be authorized by the appropriate authorization level indicated in Table 1. 4.3.1 Separating or dividing Contracts into smaller components for the purpose of bringing the cost of one or more Contracts below any specified sum to avoid a requirement in any section of this Policy or any policy incorporated herein is strictly prohibited. Contracts may be divided only to meet unique scheduling of a project or to accommodate necessary time frames. In addition, no specifications shall be drafted in such a manner as to limit competitive bidding or solicitation directly or indirectly to any one specific vendor, or any specific brand, product, thing, or service, except for those items that are approved as exempt from competitive bidding or solicitation requirements as provided in Section 7.1.3. 4.4 Purchase amounts include taxes and the cost of shipping, freight fees, and any other charges billed by the supplier or Contractor for purposes of the authorization limits under this Policy. 4.5 Purchase authorization and expenditure limits in Table 1, and competitive solicitation requirements in Table 2 and as further set forth in this Policy, are on a per purchase/per Contract basis and shall not be applied as an aggregate limit to any vendor, supplier, Contractor or Consultant. 4.6 With the exception of the General Manager, in the absence of an authorized signatory for a given request, authorization will be obtained from the next highest authority in Table 1. In the case where the next highest authority is absent, then authorization will be obtained by an authorized signatory in order of rank and availability. 4.7 The District may use electronic commerce whenever practicable or cost-effective. The District may accept electronic signatures and records in connection with the District Procurement, as permitted by applicable law. YORBA LINDA WATER DISTRICT 3010-007-POL Page 5 of 17 5.0 Procurement Methods The following methods are available to initiate a purchase request or to pay for Services and Materials or Public Works: 5.1 Requisition/Purchase Order - Staff that require Services and Materials to carry out the defined duties of their positions shall submit Requisitions, in advance, for purchases in accordance with this Policy and other applicable procedures and policies of the District. Staff will generate a Purchase Order from the Requisition. 5.1.1 Complete the Requisition form or Requisition data entry screen to request that Services or Materials are ordered. 5.1.1.1 Allow at least two (2) working days of lead time. 5.1.1.2 Provide complete name and address of selected vendor. 5.1.1.3 Indicate the purpose of the Purchase Order. 5.1.1.4 Describe the Services or Materials clearly and specifically. Include make, model, manufacturer’s part number, catalog number or vendor catalog page number, if available. Indicate color, size, or any option required. 5.1.1.5 Indicate the quantity and unit price for each Service or Material. 5.1.1.6 Note whether the Services or Materials are taxable. 5.1.1.7 Note any freight charges. 5.1.1.8 Must indicate a valid General Ledger account number(s), and correct projects number(s). 5.1.1.9 Indicate the date the Services or Materials are needed. 5.1.1.10 Attach any required price quotes and data that supports the requested purchase, if available. 5.1.1.11 Seek appropriate approvals as required in Table 1. 5.1.1.12 Purchases shall not be split to circumvent Contract signatory authorizations as set in Table 2. 5.1.1.13 Submit Purchase Order for processing. 5.1.2 Upon approval and receipt of a fully executed purchase Requisition, the Purchase Order will be systematically assigned the next consecutive number. 5.1.2.1 The original Purchase Order will be given back to the originator or sent to the vendor. 5.1.2.2 A copy of the approved Purchase Order, and any supporting documents, will be forwarded to Accounts Payable for processing. YORBA LINDA WATER DISTRICT 3010-007-POL Page 6 of 17 5.1.2.3 A copy of the approved Purchase Order will be forwarded to the Warehouse pending receipt of goods. 5.1.2.4 An electronic record of the Requisition/Purchase Order will be kept within the purchasing system for historical purposes. 5.2 Check Request - A check request can be used to initiate payment for certain limited Services or Materials without a Purchase Order. Check requests can be used to request payment for Non- Discretionary Purchases, services rendered, subscriptions, membership dues, workshop/seminar/conference registrations, use of facilities, etc. 5.3 CAL-Card and Other Procurement Cards - Designated staff may be assigned a CAL-Card for miscellaneous purchases. Purchases using the CAL-Card are subject to the terms and conditions of the District Cardholder Procurement Card Agreement and any other applicable District procurement card policies or procedures. Professional Services are not to be acquired on CAL- Cards due to lack of insurance and indemnification language associated with these services. CAL- Card limits may be increased for a specific authorized user with the approval of the General Manager subject to the authorization limits as set in Table 1. Use of all other Procurement Cards are subject to the terms of this Policy and to any set terms provided at the time of card issuance to the designated staff and any subsequent Amendments to such terms, and other applicable District policies (Refer to Exhibit A). 5.4 Contracts - Provisions shall be made, either through specifications or procedures established by the District, for verification of the references and financial responsibility of the contracting parties prior to the award of a Contract. After award, all Contracts shall be executed on behalf of the District by the appropriate authorized signatory indicated in Table 1. In no case shall any Contract be made if sufficient funds are not budgeted and appropriated and not available to make payment promptly upon delivery or completion, or in accordance with a progress payment schedule, unless otherwise authorized and approved by the Board or approved by the General Manager as provided for in Section 6.2 (Emergency). 5.4.1 Contracts for Non-Professional Services, Professional Services, and Public Works shall be executed when an expenditure exceeds $5,000 (except in the event of an Emergency). 5.4.2 Multiple Year Contracts are allowed when in the best interests of the District as determined, and executed by the General Manager. 5.4.2.1 For purposes of Procurement authorization, the dollar value of a Multiple Year Contract shall be the total Contract value, including optional renewal periods. Once initially approved in accordance with the Policy requirements, any optional renewals may then be authorized by the General Manager at the time of renewal, regardless of the dollar amount, provided the pre-priced option is consistent with the terms of the Contract as initially approved. 6.0 Exceptions to Pre-Authorization 6.1 Non-Discretionary Purchases - Do not require Board approval for payment, including those that exceed the General Manager limit of $75,000. Purchase Orders are not required for Non- Discretionary Purchases that pertain to payments to utilities, insurance providers, heath care providers, payroll, and national, federal, state or local agencies that relate to routine obligations and expenses essential to the District’s ability to provide service to customers and that have been approved in fiscal year operating budgets. YORBA LINDA WATER DISTRICT 3010-007-POL Page 7 of 17 6.2 Emergency Work/Services - The General Manager, Assistant General Manager, or the assigned Operations or Engineering Manager may authorize Emergency expenditures for work, Services, and/or Supplies where the cost exceeds $75,000 without prior Board approval. The Board shall be notified of any expenditures for Emergency work, Services and/or Supplies exceeding the General Manager’s authorization limit at the next regularly scheduled Board meeting. 6.3 Purchase Requests - Require no prior authorization or signatory approval under Table 1 to replenish the District’s warehouse inventory within established inventory re-order levels. 7.0 Competitive Selection Process 7.1 General - A competitive selection process for Procurement of Services and Materials, and for Public Works projects, is required in accordance with the limits as set forth in Table 2 below (subject to certain exceptions, qualifications or limitations as further set forth below). Table 2 Competitive Solicitation Process - Requirements Purchase Amount Solicitation Requirement $25,000 and under One Quote $25,001 - $50,000 Two Quotes $50,001 - $75,000 Three Quotes $75,001 and over RFP or RFQ or Invitation to Bid Process Required 7.1.1 Competitive Solicitation - Submission 7.1.1.1 All quotes, bids, and proposals must be in writing. An email is acceptable for expenditures of $75,000 and under. 7.1.1.2 RFP, RFQ, and Invitation to Bid submissions must be in writing and be in substantial compliance with terms in the solicitation, or as otherwise required by law, or may be disqualified. 7.1.1.3 Quotes, bids, and proposal documentation shall be retained pursuant to the District’s record retention policy. 7.1.2 Exceptions from Competitive Solicitation Process - Generally, solicitation of bids or proposals is preferable whenever practicable. In addition to the exceptions stated under Section 7.3.2, the competitive solicitation requirements established in Table 2 may be waived when any of the following criterion is applicable: 7.1.2.1 Sole Source Purchases. 7.1.2.2 Single Source Purchases. 7.1.2.3 Emergency expenditures. YORBA LINDA WATER DISTRICT 3010-007-POL Page 8 of 17 7.1.2.4 After a reasonable attempt has been made to obtain competitive quotes/ responses and it has been determined that (a) no additional suppliers/providers/Contractors/Consultants can be located; (b) the District has a lack of response from suppliers/providers/Contractors/Consultants to a competitive solicitation; or, (c) when sufficient, satisfactory bids/proposals are not received, based on the District’s sole discretion. 7.1.2.5 Purchases to replenish the District’s warehouse inventory within established inventory re- order levels. 7.1.2.6 As provided by law. 7.1.3 It shall be at the discretion of the General Manager or Assistant General Manager and the initiating Department Manager(s) to determine whether an expenditure meets a criterion listed herein to be exempt from a competitive solicitation, subject to any Board authorization. Such expenditures that meet a criterion will be presented to the Board of Directors at publicly held meeting. 7.2 Public Works - Contracts for Public Works projects shall conform to applicable requirements for Public Works Contracts under State law, including but not limited to requirements relating to (a) listing of subcontractors, (b) posting of a payment bond in an amount not less than 100% of the total Contract amount for all Public Works Contracts over $25,000, and (c) payment of prevailing wages for all Contracts for Public Works exceeding $1,000 or as otherwise required by statute. Unless specifically waived by the District with the approval of the General Manager and District’s legal counsel, the District shall require performance bonds for all Public Works Contracts in an amount not less than 100% of the total Contract amount. Public Works Contracts let by an Invitation to Bid may be awarded (a) to the lowest responsive, responsible bidder, and (b) in accordance with (i) State law, (ii) the District’s standard Public Works Contract documents, and (iii) Section 11.0 below. 7.3 Professional Services (over $75,000) - RFPs will be initiated pursuant to the limits set forth in Table 2 when the Contract is anticipated to exceed $75,000, unless the District’s needs mandate uniquely qualified services, in which case only one proposal from a qualified firm may be solicited. Professional Services may be engaged in accordance with California Government Code §4525 et seq., and on the basis of demonstrated competence and qualifications for the types of services to be performed and at fair and reasonable prices to the District. 7.3.1 Professional Engineering Services - The District may request proposals for engineering services when the Contract amount is anticipated to exceed $25,000, and up to $75,000. For engineering services anticipated to exceed $75,000, RFPs will be initiated pursuant to the limits set forth in Table 2. 7.3.2 On Call Engineering Services – The District may solicit RFPs for on-call engineering services and enter agreements for on-call engineering services. Entering into an agreement qualifies Consultant to perform services for the District on a task order basis, but it does not entitle Consultant to any compensation or a right to perform services on any scope of work or particular task order for the District. When the District needs services for task(s), it will submit a scope of work to Consultant requesting task proposals. If Consultant’s task proposal is selected by the District, Consultant represents and warrants to District that it is fully qualified and available to perform the services for, and as requested by, the District. YORBA LINDA WATER DISTRICT 3010-007-POL Page 9 of 17 7.3.3 Exceptions from Competitive Solicitation Process – Professional Services - In addition to the exception for “uniquely qualified services” set forth under Section 7.3, the following criteria shall apply as exceptions to the competitive solicitation requirements set forth under Table 2 for Professional Services where such requirements would otherwise apply: 7.3.3.1 For Professional Services estimated to cost $25,000 or less, staff may request a proposal from one (1) qualified Consultant. 7.3.3.2 For Public Works projects where the project design is scheduled in phases, the related Professional Services may be negotiated with the Consultant that performed the work for a prior phase, if (a) the Consultant performed satisfactory work on the prior phase(s) in terms of quality, schedule, and estimated design costs and (b) a satisfactory Contract can be negotiated. 7.3.3.3 For Professional Services in which it is impracticable to comply with the selection process because of the unique, exploratory, or experimental nature of the project, staff may request a proposal from one (1) qualified Consultant. 7.4 Rejecting Competitive Responses - In response to an Invitation to Bid, RFQ, or RFP, the District may reject a bid or other response which is in any way incomplete, irregular, amplified, unqualified, conditional, or otherwise not in compliance with the solicitation documents in all material respects and in accordance with law. The District may (a) waive any informality, irregularity, immaterial defects, or technicalities in any bids or other responses received; and/or (b) cancel an Invitation for Bid or RFP/RFQ, or reject all bids or responses for any other reason, which indicates the cancellation or rejection of all bids or responses is (i) in the best interest of the District, and (ii) in accordance with law. Rejection of all bids or responses or cancellation of competitive solicitations, including determinations to re-bid, or re-solicit are subject to the same level of authority which is required to award a Contract as provided under Table 1, and as required by law. 7.5 Awarding Contracts – Consistent with Section 11.0 below, the District reserves the right to award Contracts based upon the best interests of the District as determined by the District in its sole discretion. 8.0 Change Orders 8.1 Change Orders may be issued from time to time as required by changes in the specifications or conditions of a project, services performed, or materials to be issued. 8.1.1 Change Orders – PO Only - Change Orders up to 10% (to a maximum additional $1,000) of the original PO amount may be issued by the appropriate Department Manager without further approvals. A revised Purchase Order Requisition must be completed and approved at the appropriate authorization levels under Table 1 for any Change Order request exceeding the original amount by more than 10% or the $1,000 limit. 8.1.2 Change Orders – Formal Contracts and Amendments 8.1.2.1 For Contracts and/or Amendments under $75,000:  Change Orders up to 10% of the original Contract amount can be approved by the appropriate authorization levels as outlined in Table 1 up to a maximum total Contract amount of $75,000 without Board approval. YORBA LINDA WATER DISTRICT 3010-007-POL Page 10 of 17  Board approval is required for Change Order requests exceeding the original Contract amount by more than 10%, or resulting in a total Contract amount over $75,000. 8.1.2.2 For Contracts and/or Amendments $75,001 and over:  Change Orders up to 10% (to a maximum additional $75,000) of the original Contract amount can be approved by the appropriate authorization levels as outlined in Table 1 without Board approval.  Board approval is required for Change Order requests exceeding the original Contract amount by more than 10%, or resulting in a $75,000 increase. 8.1.3 Change Order Exceeding Limits A Change Order exceeding the Change Order limits set forth in this article may be authorized by the General Manager prior to Board approval if, in the General Manager’s determination, any of the following circumstances exist: 8.1.3.1 A delay in Change Order authorization could result in a negative financial impact to the District. 8.1.3.2 A delay in Change Order authorization could result in damage to or impairment of the operations of a District facility. 8.1.3.3 An Emergency exists which requires immediate work/services. The Board shall be notified of any Change Order authorization exceeding the General Manager’s authorization limit at the next regularly scheduled Board meeting. 9.0 Ethical Procurement Conflict of Interest 9.1 Board members, District officers and employees shall not be financially interested in any Contract made by them in their official capacity. (Government Code Sections 1090 and 1091.5). Board Members, District officers, and employees shall not participate in any way to influence a governmental decision in which he/she knows or has reason to know that he/she has a financial interest. (Government Code Section 87100 et seq.) 9.2 Any District employee (other than Administrative Personnel not under Designated Positions in the District’s Conflict of Interest Code) authorized under this Policy to make or enter into purchases on behalf of the District will complete a Statement of Economic Interests (Form 700) and comply with the District’s Conflict of Interest Code. 9.3 Confidential or proprietary information must be handled with due care and proper consideration of ethical and legal ramifications and governmental regulations. 9.4 Purchasing activities must be performed in accordance with all applicable laws and District policies. 9.5 Any employee/individual who violates the standards set forth in this Section may be subject to disciplinary action consistent with District personnel policies. YORBA LINDA WATER DISTRICT 3010-007-POL Page 11 of 17 10.0 Emergency Procurement Procedures 10.1 In the event that the District declares an Emergency, the District may procure the necessary equipment, Services, and Materials in response to that Emergency without following the purchasing procedures prescribed by this Policy. 10.2 General Manager Authority 10.2.1 The Board has authorized the General Manager, or their designee, to approve Emergency Procurements described in Section 10.1. 10.2.2 If the Emergency Procurement exceeds the General Manager’s approval authority, the General Manager, or their designee, shall report to the Board, at its next meeting, the reasons justifying why the Emergency did not permit time to comply with the District’s purchasing requirements and why the purchase was necessary to respond to the Emergency. 10.3 Board Ratification 10.3.1 After the District makes an Emergency Procurement, it shall make a finding based on substantial evidence set forth in the minutes of its meeting that the Emergency did not permit time to comply with the District’s purchasing requirements, and that the purchase was necessary to respond to the Emergency. 10.4 Federally Declared Emergencies; Procurement and Contracting Requirements 10.4.1 In the event of an Emergency declared by the President of the United States, the District must comply with Federal procurement standards as a condition of receiving public assistance funding from the Federal Emergency Management Agency (FEMA) for Contract costs for eligible work. FEMA funding is governed by Title 2 of the Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. 10.4.2 Federal Emergency Procurement Procedures 10.4.2.1 Micro Purchases  Purchases within the micro-purchase threshold (e.g. currently set at purchases of $3,000 or less but periodically adjusted for inflation) may be awarded without soliciting competitive quotations if the District considers, in its sole discretion, the price to be reasonable.  To the extent practicable, the District must distribute micro-purchases equitably among qualified suppliers. 10.4.2.2 Small Purchases  Purchases within the simplified acquisition threshold (e.g. currently set at purchases of $250,000 or less) shall not be required to be formally bid.  Price quotations must be received from no less than three (3) sources. YORBA LINDA WATER DISTRICT 3010-007-POL Page 12 of 17 10.4.2.3 Formal Sealed Bidding  Formal, sealed bidding is required for purchases greater than the simplified acquisition threshold, which is currently set at $250,000, or as may be adjusted by the Federal Acquisition Regulation, pursuant to 48 CFR Section 2.101.  The District must publicly advertise the invitation for Bids and publicly open all bids at the time and place prescribed in the Invitation to Bid.  Any Contracts awarded pursuant to this procedure may be to the lowest responsible bidder submitting a responsive bid and shall be for a firm fixed price. 10.4.2.4 Solicitation of Competitive Proposals  W hen the nature of a Procurement does not lend itself to formal, sealed bidding (e.g. Professional Services), the District may solicit competitive proposals.  A Request for Proposals (RFP) must be publicly advertised, and the District must solicit proposals from an adequate number of sources. The RFP must identify all evaluation factors and their relative importance; however, the numerical or percentage ratings or weight need not be disclosed.  Any Contract awarded based on the competitive proposal Procurement process cannot be based exclusively on price or price-related factors.  If a Contract is awarded, it may be to the responsible firm whose proposal is most advantageous to the District (“best value”), with price and other factors considered. 10.4.3 Federal Emergency Noncompetitive Procurements 10.4.3.1 Contracts may be procured through a noncompetitive proposal only when:  The item is only available from a single source;  The public exigency or Emergency for the requirement will not permit a delay resulting from competitive solicitation;  The District authorizes noncompetitive proposals, as otherwise permitted by the Purchasing Policy; or  Competition is deemed inadequate after the solicitation of a number of sources. 10.4.4 Federal Emergency Contracting with Small and Minority Firms, Women’s Business Enterprises, and Labor Area Surplus Firms 10.4.4.1 The District must conduct all necessary affirmative steps to ensure the use of minority businesses, women’s business enterprises, and labor surplus area firms when possible, as set forth in 2 CFR Section 200.321. YORBA LINDA WATER DISTRICT 3010-007-POL Page 13 of 17 10.4.4.2 The District has developed Contract templates that include requirements for bidders to take those affirmative steps to secure involvement by those firms, as outlined in 2 CFR Section 200.321(b). 10.4.5 Federal Emergency Cost or Price Analysis 10.4.5.1 The District shall perform a cost or price analysis in connection with every Procurement, including Contract modifications, in excess of the simplified acquisition threshold. While the method and degree of analysis depends on the facts surrounding the particular Procurement, the District must, at a minimum, make independent estimates before receiving bids or proposals. 10.4.5.2 The District shall negotiate profit as a separate element of the price for each Contract in which there is no price competition and in all cases where a cost analysis is performed as required by 2 CFR Section 200.323(b). 10.4.6 Federal Emergency Payment Procedures 10.4.6.1 Contracts entered into pursuant to this Section 10.4 shall utilize only fixed-price, cost-reimbursement, or, to a limited extent, time and materials payment methods. 10.4.6.2 Time and Materials (T&M) Contracts  T&M Contracts should be used rarely, and the use of T&M Contracts should be limited to a reasonable time period (e.g., no more than 70 hours) based on circumstances during which the District cannot define a clear scope of work.  The District shall only enter into a T&M Contract if all of the following apply: - No other Contract was suitable; - The contract has a guaranteed maximum price that the Contractor exceeds at its own risk; and - The District provides a high degree of oversight to obtain reasonable assurance that the Contractor is using efficient methods and effective cost controls.  The District must define the scope of work as soon as possible to enable Procurement of a more acceptable type of Contract (i.e., non-T&M). 10.4.6.3 Separate Invoicing  All purchases made during a proclaimed Emergency shall require separate invoicing from routine (i.e., non-Emergency related) purchases. All invoices shall state the Services or Materials provided and shall specify where the Services or Materials were delivered. All invoices shall specify the location(s) where the Services or Materials were used, if possible. Any invoice which fails to properly identify the Emergency nature of the purchase and provide details as to the date(s) and location(s), as appropriate, shall not be paid until such information is provided by the vendor and re-submitted in correct form. YORBA LINDA WATER DISTRICT 3010-007-POL Page 14 of 17 10.4.6.4 Auditing of Invoices for Debris Removal  All invoices for debris clearance and removal shall be audited prior to payment to the vendor. Vendors shall be notified of the requirement prior to award of any Contract for debris clearance and/or removal. Audits shall be in accordance with procedures for debris removal monitoring specified in FEMA’s Publication 325, Debris Management Guide. 11.0 County Water District Status The District is a County Water District and therefore is not mandated by State law to competitively bid any purchases, including those for Public Works projects and/or capital expenditures. (Associated Builders & Contractors, Golden Gate Chapter, Inc. v. Contra Costa Water District (1995) 37 Cal.App.4th 468.) The District has discretion to enter into non-bid Contracts for Public Works, to procure Services and Materials, to contract for design-build work, to utilize job-order contracting and to enter into Cooperative Purchasing arrangements for the design, construction, and maintenance of Public Works, or undertake any other form of contracting determined to be in the District’s best interest, except as otherwise expressly restricted by law. Notwithstanding this lack of legal mandate and contractual discretion, District staff shall make a good faith effort to support the Competitive Selection Process described in Section 7. 12.0 Policy Revisions This Policy will be maintained and revised by the General Manager or their designated representatives in consultation with the District’s legal counsel, subject to approval by the Board. This Policy will be reviewed regularly and revisions will occur whenever applicable Federal, State, or local regulations change or otherwise as the need arises and in the discretion of the Board. YORBA LINDA WATER DISTRICT 3010-007-POL Page 15 of 17 EXHIBIT A PROCUREMENT CARD POLICY 1.0 Purpose The Procurement Card Program was developed to allow designated full-time regular employees the capability to purchase, with predefined spending limits, certain types of items directly from the merchant thus reducing the cost associated with low-value purchasing activity. The purpose of this policy is to identify the conditions in which employees will be issue a Procurement Card and the rules for its use. 2.0 General Information Authorization to use this Card is restricted to the CARDHOLDER ONLY and MAY NOT BE USED FOR PERSONAL PURCHASES. 2.1 Employees will not use District Procurement Cards for personal expenses even if the intent is to reimburse the District later. 2.2 Procurement Cards must not be used for purchases when the cardholder has personal interest in the merchant or knowledge that a purchase would create a conflict of interest. 2.3 Before receiving a Procurement Card, employees will sign a “Cardholder Procurement Card Agreement” and receive a copy of the Policies and Procedures setting forth their obligations under this program. 2.4 The Procurement Card is supplemented to the procurement process. As with other procurement methods the following conditions must be met when using the Procurement Card: 2.4.1 The Procurement Card should be used whenever possible in lieu of petty cash or low dollar Requisitions from point of sale vendors. 2.4.2 Purchases shall not be split to circumvent transaction limits as set in Table 1 of this Procurement Policy. 2.4.3 Each single purchase may be comprised of multiple items, but the total including tax and freight cannot exceed the single purchase dollar limit on the Procurement Card. 2.4.4 Every purchase using the Procurement Card must adhere to all provisions of the Procurement Policy. 3.0 Procurement Card Role Definitions 3.1 Cardholder – The cardholder is the District employee whose name appears on the Procurement card. 3.2 Approver: The Approver is the person who is responsible for reviewing the charges for a group of cardholders to ensure that purchases are appropriate and allowed. 3.3 Program Administrator: The Program Administrator provides overall administration and oversight of the Procurement Card program. 4.0 Responsibilities 4.1 Cardholders: Cardholders Safeguard the Procurement Card, provide itemized receipts for all transactions, allocate the transactions, and sign off on the transactions in a timely basis. YORBA LINDA WATER DISTRICT 3010-007-POL Page 16 of 17 4.2 Approvers: Approvers review transactions of cardholders for adherence to policies and procedures, ensure that all transactions are properly coded, and all disputed charges are correctly reported. 4.3 The Cardholder and Approver are required to review and approve the individual cardholder transactions and submit to Accounts Payable within the established time frame specified by Finance Manager. This is critical to allow Accounts Payable to make payment within specified time limits. 4.4 Failure to meet approval deadlines can result in the following: 4.4.1 First Failure – Verbal/electronic warning. 4.4.2 Second Failure – Written warning and notification to the appropriate Department Manager and possible suspension of card privileges. 4.4.3 Third Failure – Suspension of card privileges. Restoration of card privileges requires approval by the Finance Manager. 5.0 Procurement Audits To ensure the continued success of the Procurement Card Program, periodic, random audits will be performed by the Finance Department. The purpose of the audits will be to ensure the cardholders are adhering to established policies and procedures. 6.0 Use of Procurement Card for Travel and Meals Procurement cards may be used for approved travel in accordance with the District’s travel policy. 7.0 Card Restrictions The Procurement Card is not to be used for services of any kind, leases, or repairs excluding auto when traveling, due to insurance requirements and the complexity of IRS 1099 reporting. Department Managers may apply additional restrictions on card use. It is the responsibility of the cardholder to know what their department’s restrictions are. 8.0 Misuse of a Procurement Card 8.1 The following situations are a few examples of “misuse” of a Procurement Card: 8.1.1 Purchases using the Procurement Card for personal benefit of the employee. 8.1.2 Assignment or transfer of an individual Procurement Card to an unauthorized person. 8.1.3 Purchases from family, friends or relatives where there is personal gain or a conflict of interest, perceived or real. 8.2 Any variance, misuse, and/or violation of the policy and processes set forth will be considered improper use of the card. This may result in card cancellation, disciplinary action, up to and including termination. YORBA LINDA WATER DISTRICT 3010-007-POL Page 17 of 17 9.0 Return of Merchandise In the event the cardholder determines that an item must be returned for any reason, the item and credit card receipt must be returned to the merchant/vendor as soon as possible. At no time is the cardholder allowed to accept a store gift card or cash in lieu of a credit adjustment to the Procurement Card. Cardholder is responsible for allocating and signing off on both the purchase and the credit transactions in a timely manner. 10.0 Disputes All transactions should be monitored for validity and disputed transactions must be reported to the Program Administrator. To process a dispute, consult the Program Administrator. 11.0 Lost or Stolen Cards When a Procurement Card is lost or stolen during normal business hours the Cardholder must notify their Approver and the Program Administrator immediately. If it is after hours the Cardholder must notify the issuing bank directly. 12.0 Separation, Transfer or Revocation of Card Privileges Upon leaving the District, transferring to another Department or loss of Procurement Card privileges, the Cardholder must return their Procurement Card to Human Resources. Concurrent with surrendering the card, the cardholder must deliver documentation to their supervisor of all outstanding transactions. The General Manager, Assistant General Manager, or Department Managers have absolute discretion to suspend or revoke a Cardholder’s privileges at any time and for any reason.