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HomeMy WebLinkAboutAgenda Packet - Legislative & Public Outreach Committee - 07/19/2011 (Policy Committee)East Va l l ey Water District Policy Committee (STANDING) Date: July 19, 2011 Time: 12:00 p.m. Place: 3654 E. Highland Ave, Suite 30 Highland, CA 92346 AGENDA CALL TO ORDER PLEDGE OF ALLEGIANCE 1. Public Comments 2. Discussion regarding the District's Purchasing Policy 3. Discussion regarding Sole Source Contracts 4. Discussion regarding the Policy Committee Structure ADJOURN Pursuant to Government Code Section 54954.2(a), any request for a disability - related modification or accommodation, including auxiliary aids or services, that is sought in order to participate in the above - agendized public meeting should be directed to the District's Administrative Manager at (909) 885 -4900 at least 72 hours prior to said meeting. L nEast ater District ADMINISTRATIVE PROCEDURES EAST VALLEY WATER DISTRICT APPROVAL DATE FINANCE POLICIES POLICY NO. APPROVED BY POLICY TITLE PURCHASING /PROCUREMENT EFFECTIVE DATE Page 1 of 7 PURCHASING POLICY: I \U Purpose: O The purpose of this policy is to establish uniform procedures for bidding, contracting, and the procurement of equipment, services, and supplies. Scope: This policy applies to the purchase of all equipment, services, and supplies that have been approved by the Board of Directors through the annual budget process. Responsibility: A. The District's Lead Storekeeper /Buyer is primarily responsible for the procurement of equipment, services, and supplies, and for inventory management. B. The Lead Storekeeper /Buyer will locate sources of supply and interview prospective suppliers to consider such factors as availability, lead -time, and price discounts offered. The Lead Storekeeper /Buyer will develop and maintain the vendor list and vendor's catalog file necessary for the implementation of this policy. C. The Lead Storekeeper /Buyer will ensure performance within the guidelines of the District's policies and procedures, and shall make any recommendations for the improvement of this policy. D. It is the responsibility of each Department to initiate a purchase through the use of a Purchase Order Requisition. The Storekeeper /Buyers will process the requisition by determining the procurement method, obtaining advance approvals, negotiating prices and terms, verifying validity and completion of required documents, issuing purchase orders, receiving the material, and forwarding necessary documentation to Accounting for payment. D East Valley L Water District ADMINISTRATIVE PROCEDURES EAST VALLEY WATER DISTRICT APPROVAL DATE FINANCE POLICIES POLICY NO. APPROVED BY POLICY TITLE URCHASING / PROCUREAIENT EFFECTIVE DATE Page 2 of 7 Purchasing Authorization D O The Lead Storekeeper /Buyer is authorized to: A. Solicit full and open competitive pricing in accordance with prescribed policies and procedures to obtain the best value for the District. B. Maintain vendor lists and files facilitate efficient procurement with the stipulation that all vendors, suppliers, and contractors interested in doing business with the District will be given fair, unbiased consideration. C. Manage warehouse resources, including participation in development of blanket purchase orders and equipment budgets; and work with departmental supervisors to plan large purchases of supplies and equipment; monitor orders and expedite delivery when necessary. D. Review Purchase Order Requisitions for accuracy and completeness; assist in obtaining specifications, quotations, delivery terms and costs, and recommend substitute materials where economies can be realized or delivery improved. E. Upon obtaining appropriate approvals, enter into contractual obligations on behalf of the District for the acquisition of equipment, services, and supplies necessary to support the day -to -day operation of the District. F. Coordinate receiving and control of inventory, and management of warehouse stock levels; explore industry practices and technologies related to inventory control and warehouse management. G. Explain and interpret these policies and procedures to staff needing to requisition equipment, services and supplies, and ensure compliance with District purchasing and bidding policies. 4'VEastValley ater District ADMINISTRATIVE PROCEDURES EAST VALLEY WATER DISTRICT APPROVAL DATE FrNANCE POLICIES POLICY NO. APPROVED BY POLICY TITLE EFFECTIVE DATE PURCHASING /PROCUREMENT Page 3 of 7 tt\ Others Authorized A. Department Heads may delegate to certain individuals (in writing or via job description) the responsibility for the performance of specific procurement activities. Only those persons so delegated are authorized to contractually obligate the District for the purchase of equipment, services, and supplies. B. Department heads may also delegate specific procurement authority by issuance of a Cal Card purchasing card. C. All purchases made by these specific delegations will be made in conformity with District policies and procedures. Purchase Requisition A. Purchase Order Requisitions must be authorized by the appropriate signatory level as indicated in the Authorization Table. B. In the absence of an approver for a given request, authorization will be obtained by the next highest authority in the Authorization Table. A Department Head has the authority to authorize purchases on behalf of the General Manager in his or her absence. C. Purchases of equipment, services, or supplies exceeding $100,000 shall be submitted to the Board of Directors for their review and approval. Payment of monthly bills and obligations under prior contract are excluded (e.g. - utility bills, debt service payments) D. Issuance of multiple purchase orders to circumvent the limitations included in this policy is strictly prohibited Procurement Methods Requests for Quotes (RFQ's) A. Purchases of equipment, services, or supplies in excess of $500 require at least three (3) competitive quotes. DEast Valley Water District ADMINISTRATIVE PROCEDURES EAST VALLEY WATER DISTRICT APPROVAL DATE FrNANCE POLICIES POLICY NO. APPROVED BY POLICY TITLE PURCHASING /PROCUREMENT 1. EFFECTIVE DATE Pale 4 of 7 Uv 1) Purchases between $500 and $5,000 require at least three (3) oral or written quotes. 2) Purchases in excess of $5,000 require at least three (3) written quotes. B. The Authorization Table specifies purchase amount, bid type, contract type and the approval level. C. When three (3) competitive quotes are not available, reasons therefore should be written on the Purchase Order Requisition. A Department Head must authorize sole source purchases. D. Purchase amount includes the cost for the goods or services, taxes, freight fees and any other charges billed by the supplier. Formal Bidding & Contracting A. In general, Invitations To Bid (ITB's) should be used for purchases of materials, services, and equipment that must meet District specifications. Requests for Proposals (RFP's) should be used to solicit bids for professional and technical services, where, in addition to District specifications, the personnel performing the services are named and their qualifications listed. B. Invitations To Bid (ITB's) and Requests for Proposals (RFP's) must include a statement of work to be performed, how to obtain more detailed information about the project, and the date, time, and place for the submission of bids /proposals. C. Invitations to Bid (ITB). Request for purchases of equipment or services requiring ITB's shall follow these procedures: 1) Published Notice. The requesting department shall prepare the ITB. Bid notices may be published on the District's Website, trade journals, newspapers, and other media if it is in the best interest of the District. 2) Pre -Bid Conference. A pre -bid conference may be held to clarify nEaster DiWaterDistrict ADI11NISTRATIVE PROCEDURES EAST VALLEY WATER DISTRICT APPROVAL DATE FINANCE POLICIES POLICY NO. APPROVED BY POLICY TITLE URCHASING / PROCUREMENT( lU EFFECTIVE DATE Page 5 of 7 iu items in the Notice inviting bids, answer questions, or tour applicable District facilities. If no conference is held, but questions are submitted in writing, a list of all questions and district responses should be distributed to all respondents. 3) Bid Opening. The District shall require all bids to be sealed and clearly identified on the outside of the envelope. District staff shall open the bids at the time and place stated in the ITB / RFP. 3) Awarding the Bid. A District designee shall tabulate the bids with a designee from the user department. Successful bidders will be notified by the Buyer. 4) Rejection of Bids. The awarding personnel or Board of Directors may reject any or all bids presented, without justification, and re- advertise if desired. The awarding personnel and /or the Board of Directors may waive any minor irregularities in each bid received. 5) Bid Security. Bids requiring bid bonds or other types of security will be outlined in the bid documents. D. Best Value shall mean the bidder who meets the best interests of the District as determined by the awarding personnel or the Board of Directors in their sole and absolute discretion pursuant to the criteria outlined by the District in its Request for Proposal or Invitation to Bid. E. Dividing contracts into smaller component contracts for the purpose of evading the provisions of this policy is prohibited. Contracts may be divided only to meet unique scheduling or other needs of a project such as the purchase of equipment with a long lead -time or to accommodate necessary time frames. F. Purchase orders will be created for contracts used for the procurement of equipment, materials, or supplies. G. A Master Services Agreement will be signed with all new vendors who will be performing services on District facilities. EastValley Water District ADMINISTRATIVE PROCEDURES EAST VALLEY WATER DISTRICT APPROVAL DATE FINANCE POLICIES POLICY 'NO. APPROVED BY POLICY TITLE URCIIASING / PROCUREMENT EFFECTIVE DATE Page 6 of 7 Authorization Table on AO Purchase Amount Bid Type Contract Type Approval Level 0-$500 N/A N/A Supervisor 501 - $2,000 RFQ Purchase Order Supervisor 2,001 - $5,000 RFQ Purchase Order Superintendent 5,001 - $25,000 RFQ Purchase Order Department Head 25,001 - $100,000 ITB, RFP Purchase Order or Contract General Manager 100,001 -+ ITB, RFP Purchase Order or Contract Board of Directors Purchase Order and Contract Amendments A. Amendments increasing the purchase amount of a purchase order require the appropriate authorization as outlined in the Authorization Table. B. Changes to contracts or purchase orders where the scope of work or dollar amount is amended must be authorized by the District and the party fulfilling the contract. Emergency Purchases: A. An emergency purchase includes any immediate need for supplies or services wherein following normal procurement procedures could threaten District operations, property, or public health and safety. B. Emergency purchases shall be subject to the approval of the General Manager, or his designee. Board approval and /or notification will be within 30 days of an emergency expenditure that exceeds $25,000. IEast Valley Water District ADMINISTRATIVE PROCEDURES EAST VALLEY WATER DISTRICT APPROVAL DATE FINANCE POLICIES POLICY N0, APPROVED BY POLICY TITLE URCHASING / PROCUREMENT EFFECTIVE DATE Pale 4f 7 Disposition of Obsolete /Surplus Property I OS [ b T u D A. The Lead Storekeeper /Buyer is responsible to recommend and carryout the disposition of surplus supplies, materials, and scrap metal; the Lead Mechanic will recommend disposition of surplus vehicles and equipment. B. Surplus items may be exchanged or traded -in on new goods, sold using competitive procedures similar to standard acquisition practices, sold at public auction, or eliminated as scrap if there is no resale or trade -in value. Surplus items with a resale or market value in excess of $500 shall have the written approval of the General Manager prior to disposition. Budget Transfer Authority A. Budget transfers (between accounts and /or capital projects) less than $10,000 are subject to the approval of an Executive Officer. B. Budget transfers greater than $10,000, not using reserve funds, is subject to the approval of the General Manager. C. Budget transfers less than $25,000, with the use of reserve funds, are subject to the approval of the General Manager and retroactive approval by the Board of Directors. D. Budget transfers greater than $25,000, with the use of reserve funds, are subject to the prior approval of the Board of Directors. Federal Financial Assistance (Grants) A. All required levels of authorization and methods of allocating costs used for expenditure of District funds apply to the expenditure of Federal funds. B. All persons responsible for giving any level of approval for expenditure of federal funds will be issued a copy of, and should be familiar with, OMB Circular A -87 — Cost Principles For State, Local, and Indian Tribal Government.