HomeMy WebLinkAboutItem 4.2 GHAD Purchasing AuthoritySTAFF REPORT DISTRICT CLERK
SCHAEFER RANCH File #360 -60
GEOLOGIC HAZARD
ABATEMENT DISTRICT
DATE: August 19, 2014
TO: Honorable President and Board of Directors
FROM: Christopher L. Foss, GHAD District Manager "
SUBJECT: Policy Governing Contracting and Purchasing Authority and Procedures for the
Schaefer Ranch Geologic Hazard Abatement District
Prepared By. Steven Yee, Public Works Manager
EXECUTIVE SUMMARY:
The Schaefer Ranch Geologic Hazard Abatement District (CHAD) Board of Directors will
consider adopting a resolution approving a policy governing contracting and purchasing
authority and procedures for Schaefer Ranch GHAD in the City of Dublin.
FINANCIAL IMPACT:
None.
RECOMMENDATION:
Staff recommends that the Schaefer Ranch GHAD Board adopt the Resolution Approving a
Policy Governing Contracting and Purchasing Authority and Procedures for the District.
'" Reviewed By
District Engineer
DESCRIPTION:
The Schaefer Ranch Geologic Hazard Abatement District (CHAD) is a special entity which is
established separate from the City of Dublin and applies to a specific defined area within the
City. The GHAD is formed under provisions in the California Public Resources Code which
establishes in Section 26500 that a GHAD is a political subdivision of the State and is not an
agency or instrumentality of a local agency. The purpose of the GHAD is to mitigate, prevent,
abate and repair erosion hazards that may directly affect property within the GHAD boundary.
GHAD staff's role is limited to providing support to the CHAD, coordinating activities undertaken
for the CHAD, administering the GHAD funds and coordinating purchasing and the payment of
Page 1 of 2 ITEM NO. 4.2
expenses associated with the CHAD. GHAD funding is collected as part of property tax bills.
The GHAD can perform maintenance on defined areas and can also accumulate reserves to
address major or extraordinary work such as a landslide repair.
Adopting a contract and purchasing policy for the GHAD is not a requirement, however, formal
adoption of a policy is in keeping with the best practices of GHAD maintenance and operations.
This policy mirrors Dublin Municipal Code Chapter 2.36, Contracts and Purchasing.
NOTICING REQUIREMENTS /PUBLIC OUTREACH:
None.
ATTACHMENTS: 1. Resolution of the Board of Directors of the Schaefer Ranch
Geological Hazard Abatement District Approving A Policy Governing
Contracting and Purchasing Authority and Procedures for the District
2. Exhibit A to the Resolution — Policy on Contracts and Purchasing
Procedure
Page 2 of 2
RESOLUTION NO. -14
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SCHAEFER RANCH
GEOLOGICAL HAZARD ABATEMENT DISTRICT
* * * * * * * * * * * * * * * * **
APPROVING A POLICY GOVERNING CONTRACTING AND PURCHASING
AUTHORITY AND PROCEDURES FOR THE DISTRICT
WHEREAS, the Schaefer Ranch Geological Hazard Abatement District
( "Schaefer Ranch GHAD ") was formed pursuant to California Public Resources Code
section 26500 et seq. for the purpose of preventing, mitigating, abating and controlling
geologic hazards; and
WHEREAS, pursuant to California Public Resources Code sections 26574
through 26581, the Schaefer Ranch GHAD has the authority to adopt a policy regarding
contracts and purchasing authority and procedures; and
WHEREAS, pursuant to California Public Resources Code sections 26574(d)
and 26586, the Schaefer Ranch GHAD has the authority to delegate contracting and
and purchasing authority to officers of the District; and
WHEREAS, pursuant to California Public Resources Code sections 26600 and
26574(d), the Board of Directors of the Schaefer Ranch GHAD has the authority to
establish competitive bidding procedures; and
WHEREAS, the Board of Directors desires to adopt a policy governing
contracting and purchasing authority and procedures for the Schaefer Ranch GHAD to
carry out its purpose; and
WHEREAS, the Board of Directors desires to adopt a nearly identical policy to
that which is found in Dublin Municipal Code Chapter 2.36, with necessary
amendments thereto.
NOW, THEREFORE BE IT RESOLVED that the Board of Directors of the
Schaefer Ranch GHAD adopts this Policy on Contracts and Purchasing Procedures,
attached hereto as Exhibit A.
PASSED, APPROVED AND ADOPTED this 19th day of August, 2014, by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
District Clerk
2313295.1
Board President
EXHIBIT "A" TO RESOLUTION NO. -14
GHAD Policy on Contracts and Purchasing Procedures
Sections:
1.010 Adoption of a purchasing system.
1.020 Definitions.
1.030 GHAD Board approval of contracts and
purchases.
1.040 Purchasing Agent designated.
1.050 Purchasing Agent authority for contracts and purchases —
Less than forty -five thousand dollars ($45,000).
1.060 Purchasing award — Factors to be considered for
responsiveness and responsibility.
1.070 Contracts and purchases of general services, supplies and
equipment —Less than five thousand dollars ($5,000).
1.080 Contracts and purchases of general services, supplies, and
equipment— Greater than or equal to five thousand dollars
($5,000) and less than forty -five thousand dollars ($45,000).
1.090 GHAD Board authority for contracts and
purchases— Greater than or equal to forty -five thousand
dollars ($45,000)— Competitive bidding.
1.100 Exceptions to competitive bidding.
1.110 Splitting orders prohibited.
1.120 Purchase orders.
1.130 Availability of sufficient funds.
1.140 Inspection and review.
1.150 Surplus supplies and equipment.
1.160 Public projects.
1.010 Adoption of a purchasing system.
A purchasing system is hereby adopted in order to establish efficient
procedures for the procurement of services, supplies and equipment at the lowest
possible cost commensurate with the level of quality required, to exercise financial
control over purchases, and to clearly define authority for the purchasing function.
1.020 Definitions.
For the purposes of this Policy, the words set out in this section shall have the
following meanings:
A. "CHAD" means the Fallon Village, Schaefer Ranch and Fallon
Crossing Geological Hazard Abatement District.
B. "Board" means the GHAD Board of Directors.
C. "Consultant or professional services" means the services rendered by
architects, attorneys, engineers, doctors, financial consultants, planning or
environmental consultants, investment advisors, bank or trustee officers, and other
professional or specialized consultants.
D. "Contract" means any agreement to do or not do a certain thing. For
the purposes of this Policy, "contract" and "agreement" are synonymous. The term
"contract" includes, but is not limited to, a purchase order; a contract for services; an
addendum or change order, which means a change or addendum to an executed
contract; a letter of agreement; and a memorandum of understanding.
E. "Force account" is a term used by the Uniform Construction Cost
Accounting Procedures meaning an account which is used to account for work
performed on public projects using internal resources, including but not limited to
labor, equipment, materials, supplies, and subcontracts of the public agency.
F. "Emergency" means a sudden, unexpected occurrence that poses a
clear and imminent danger, requiring immediate action to prevent or mitigate the
loss or impairment of life, health, property, or essential public services. "Emergency"
includes such occurrences as fire, flood, earthquake, or other soil or geologic
movements and hazards, as well as such occurrences as riot, accident, or sabotage.
G. "General services" means and includes any work performed or services
rendered by an independent contractor, with or without the furnishing of materials,
including, but not limited to, the following:
1. Maintenance or nonstructural repair of GHAD buildings,
structures or improvements which does not require engineering plans, specifications
or design, including, but not limited to, unscheduled replacement of broken window
panes, fire extinguisher maintenance, minor roof repairs, plumbing, elevator
maintenance, custodial services and pest control, etc.;
2. Repair, modification and maintenance of GHAD equipment and
software;
3. Cleaning, analysis, testing, moving, removal or disposal (other
than by sale) of GHAD supplies and equipment;
4. Replanting, care or maintenance of public grounds, including, but
not limited to, maintenance of trees, shrubbery, flowers, and lawns;
operations;
CHAD;
5. Providing temporary personnel services;
6. Providing other miscellaneous services to facilitate GHAD
7. Licensing software services;
8. Leasing or rental of equipment (personal property) for use by the
9. Maintenance of equipment owned or leased by the CHAD.
"General services" does not include consultant or professional services, or
work associated with a public project.
H. "Goods of a technical nature" means hardware, software, or
communications equipment, or any item that is substantially similar to the foregoing
as determined by the Purchasing Agent.
I. "Public project" shall have the meaning given that term by California
Public Contract Code Section 20161 and the Uniform Construction Cost Accounting
Procedures ( "UCCAP ") set forth in the Uniform Public Construction Cost Account
Act ( "The Act ") and referenced in Section 1.160 of this Policy.
J. "Supplies and equipment" means and includes tangible goods,
supplies, equipment, vehicles, printing, materials, and furniture and furnishings
purchased on behalf of the CHAD.
1.030 GHAD Board approval of contracts and purchases.
GHAD Board approval is required for all contracts and purchases unless
otherwise specified by this Policy or by another provision of federal or state law.
1.040 Purchasing Agent designated.
The GHAD Manager is designated as Purchasing Agent. The Purchasing
Agent may delegate all or a portion of the contracting or purchasing duties to any
GHAD staff member. The Purchasing Agent shall have the authority to:
A. Contract for or procure consultant or professional services, general
services, supplies and equipment required by the CHAD, in accordance with
purchasing procedures outlined in this Policy;
B. Negotiate and recommend execution of contracts for the purchase of
consultant or professional services, general services, supplies and equipment;
C. Act to procure for the GHAD the necessary quality in consultant or
professional services, general services, supplies and equipment at the lowest cost to
the CHAD;
D. Prepare and recommend to the GHAD Board revisions and
amendments to the purchasing rules;
E. Establish and maintain such forms as are reasonably necessary to the
operation of this Policy;
F. Supervise the inspection of all consultant or professional services,
general services, supplies and equipment purchased to ensure conformance with
specifications;
G. Pursuant to Section 1.150 of this Policy, arrange the sale or disposal of
all supplies and equipment which cannot be used by the CHAD, or which have
become unsuitable for GHAD use;
H. Maintain a bidder's list and other records necessary for the efficient
acquisition of consultant or professional services, general services, and supplies and
equipment;
I. Join with other governmental agencies in joint purchasing endeavors
where the purchasing procedures conform to the provisions of this Policy and state
law.
1.050 Purchasing Agent authority for contracts and purchases —Less
than forty -five thousand dollars ($45,000).
A. With the exception of public projects as defined in Section 1.020 of this
Policy, the Purchasing Agent is authorized to enter into a contract on behalf of the
GHAD and approve a purchase by the GHAD without the prior approval of the
GHAD Board, so long as the contract or purchase satisfies the following conditions:
1. The total cost is less than forty -five thousand dollars ($45,000);
2. The monies have been appropriated; and
3. The contract or purchase is for consultant or professional
services, general services, or supplies and equipment.
B. In an emergency the Purchasing Agent may authorize the expenditure
of any unencumbered monies in the emergency reserve fund, notwithstanding the
fact that such monies may not have been appropriated for such purpose, to the
extent that said emergency funds have not been appropriated or are otherwise
unavailable therefor.
1.060 Purchasing award — Factors to be considered for responsiveness
and responsibility.
The following factors shall be considered in determining the responsiveness
of potential contracts and purchases and the responsibility of vendors and bidders in
accordance with applicable law:
A. The amount of the contract or the purchase price;
B. The ability, capacity and skill of the bidder or vendor to perform the
contract or provide the service required;
C. The ability of the bidder or vendor to perform the contract or provide the
service promptly, or within the time specified, without delay or interference;
D. The reputation and experience of the bidder or vendor;
E. The previous experience of the GHAD with the bidder or vendor;
F. The previous and existing compliance by the bidder or vendor with the
laws and ordinances;
G. The sufficiency of the bidder's or vendor's financial resources and
ability to perform the contract or provide the service;
H. The quality, availability, and adaptability of the supplies or contractual
services to the particular use required;
I. The ability of the bidder or vendor to provide future maintenance and
service for the subject of the contract or purchase;
J. The purchase of supplies, whenever feasible, containing the highest
amount of postconsumer and recovered materials practicable. In all cases, these
products must meet reasonable performance standards, and be readily available at
a competitive price. In addition, all equipment bought, leased or rented shall,
wherever feasible, be compatible with the use of other recycled products purchased
by the CHAD;
K. Compliance with any administrative policies referencing "green fleet"
purchasing procedures;
L. In the event that two (2) or more potential contracts or bids are
received from responsible bidders or vendors for the same total amount or unit price,
quality and service being equal, preference shall be given to the local vendor, or the
GHAD Board may accept the lowest bid made by negotiation with the tie bidders
and the Purchasing Agent.
1.070 Contracts and purchases of general services, supplies and
equipment —Less than five thousand dollars ($5,000).
For purchases of general services or supplies and equipment of less than five
thousand dollars ($5,000), informal quotations should be obtained, but are not
required. Comparative pricing is expected to secure the lowest price. Negotiated
pricing is allowed and GHAD staff are strongly encouraged to solicit quotations from
Dublin -based businesses.
1.080 Contracts and purchases of general services, supplies, and
equipment— Greater than or equal to five thousand dollars
($5,000) and less than forty -five thousand dollars ($45,000).
A. Purchases of general services, supplies and equipment greater than or
equal to five thousand dollars ($5,000) and less than forty -five thousand dollars
($45,000) shall, whenever possible, be based on at least three (3) quotations. For
purchases greater than or equal to five thousand dollars ($5,000) and less than ten
thousand dollars ($10,000), the quotations may be verbal or written. For purchases
greater than or equal to ten thousand dollars ($10,000) and less than forty -five
thousand dollars ($45,000), the quotations shall be in writing, which writings may
include facsimile and electronic mail transmissions. Quotations with the required
documentation shall be submitted to the GHAD Treasurer for approval by the
Purchasing Agent. Negotiated pricing is allowed and departments are strongly
encouraged to solicit quotations from city of Dublin -based businesses. The purchase
of any general services, supplies and equipment greater than or equal to five
thousand dollars ($5,000) and less than forty -five thousand dollars ($45,000) shall
be consistent with the factors stated in Section 1.060 of this Policy and shall be
made from the vendor that submits the lowest total cost.
B. At the discretion of the Purchasing Agent, the competitive bidding
procedure set forth in Section 1.090 of this Policy may be used for any acquisition of
general services, supplies and equipment, regardless of the value.
1.090 GHAD Board authority for contracts and purchases greater than or
equal to forty -five thousand dollars ($45,000) competitive bidding.
GHAD Board approval shall be required to authorize the contract for or
purchase of any consultant or professional services, general services or supplies
and equipment with a cost greater than or equal to forty -five thousand dollars
($45,000).
GHAD Board authorization for purchases of general services and supplies
and equipment with a cost greater than or equal to forty -five thousand dollars
($45,000) shall comply with the competitive bidding procedure set forth in this
section, except as provided in Section 1.100 of this Policy. Bids should be obtained
from one (1) or more vendors located within Dublin whenever possible.
A. Notices inviting bids shall include a general description of the services
and /or articles to be purchased or sold, where bid blanks and specifications may be
obtained, the time and place for bid openings, and whether a bid deposit or bond
and a faithful performance bond will be required.
B. Notices inviting bids shall be posted in at least three (3) public places in
the GHAD that have been designated by ordinance as the place for posting public
notices, at least fourteen (14) calendar days before the date of opening the bids.
C. The Purchasing Agent shall also solicit sealed bids from all responsible
prospective suppliers whose names are on the bidder's list and may advertise the
notice inviting bids in applicable publications and websites readily accessible to the
public.
D. When deemed necessary by the Purchasing Agent or GHAD Board,
any bidder may be required to submit a bid deposit or bond in an amount
determined by the Purchasing Agent or GHAD Board. A successful bidder (and his
surety, if a bond is furnished) shall be liable for any damages upon the bidder's
failure to enter into a contract with the GHAD or upon the bidder's failure to perform
in accordance with the tenor of his or her bid.
E. When deemed necessary by the Purchasing Agent or GHAD Board,
any person or entity entering into a contract with the GHAD may be required to
furnish a faithful performance deposit or bond in an amount determined by the
Purchasing Agent or GHAD Board.
F. Bids shall be opened in public at the time and place stated in the public
notices. A tabulation of all bids received shall be open for public inspection during
regular business hours for a period of not less than thirty (30) calendar days after
the bid opening.
G. At its discretion, the GHAD Board may reject all bids presented and re-
advertise for bids.
H. Contracts shall be awarded by the GHAD Board to the lowest
responsive, responsible bidder, except as otherwise provided herein.
I. If two (2) or more bids received from responsible bidders are for the
same total amount or unit price, quality and service being equal, preference shall be
given to the local vendor, or the GHAD Board may accept the lowest bid made by
negotiation with the tie bidders and the Purchasing Agent at the time of the bid
opening.
1.100 Exceptions to competitive bidding.
A. Contracts or purchases involving the acquisition of consultant or
professional services are exempt from competitive bidding; however, the
procurement of such services shall be subject to the following:
1. Contracts or purchases involving the acquisition of consultant or
professional services greater than or equal to forty -five thousand dollars ($45,000)
will require GHAD Board approval.
2. With respect to contracts for or procurement of professional
services from private architectural, landscape architectural, engineering,
environmental, land surveying, or construction project management firms, the
Purchasing Agent shall establish administrative procedures to assure that such
services are engaged on the basis of demonstrated competence and qualifications
for the types of services to be performed and at fair and reasonable prices in
compliance with Government Code Section 4526 or its successor.
3. The Purchasing Agent may utilize a request for quotation or
request for proposal, to ensure the services are matched with the needs of the
CHAD.
B. Any request for an exception under this subsection shall identify the
nature of the contract or purchase, amount of the contract or purchase, and the
reasons why competitive bidding is not feasible and shall be subject to GHAD Board
approval. The provisions of Section 1.090 of this Policy subject to GHAD Board
approval shall not apply to the following:
1. Where the GHAD's requirements can be met solely by a single
patented article or process;
2. Situations where no bids have been received following bid
announcements conducted pursuant to the provisions of this Policy;
3. When an emergency requires that an order be placed with the
nearest source of supply;
4. When a contract or purchase involves goods of a technical
nature, where it would be difficult for a vendor to bid on a standard set of
specifications, and the Purchasing Agent undertakes a thorough review of known
products and a comparison of features which would most closely meet the GHAD's
needs at the lowest cost;
5. Public projects, pursuant to Section 1.160;
1.110 Splitting orders prohibited.
The purchasing dollar limits set forth in this Policy are determined on a per
order basis. It is unlawful to split or separate into smaller orders the contract or
purchase of general services, supplies and equipment for the purpose of evading
the competitive bidding provisions of this Policy.
1.120 Purchase orders.
Purchases greater than or equal to five thousand dollars ($5,000) shall be
documented by purchase orders prepared by the Purchasing Agent in accordance
with adopted administrative policies.
1.130 Availability of sufficient funds.
No purchase shall be transacted until it has been ascertained that the GHAD
has a sufficient appropriated balance in excess of all unpaid obligations to defray the
amount of such purchase.
1.140 Inspection and review.
The Purchasing Agent shall require the inspection of supplies and equipment
delivered, and contractual services performed, to determine their conformance with
the specifications and requirements set forth in the purchase order or contract.
1.150 Surplus supplies and equipment.
The Purchasing Agent shall establish administrative procedures for GHAD
staff to report all supplies and equipment which are no longer used or which have
become obsolete or worn out. The Purchasing Agent shall have the authority to sell,
trade, exchange, dispose of, discard or destroy all said supplies and equipment.
Such sales may be made by auction, negotiated sale, or otherwise, after receiving
bids or proposals that provide the maximum return to the CHAD, as determined by
the Purchasing Agent.
The Purchasing Agent shall have the authority to recommend to the GHAD
Board surplus supplies and equipment for donation, which donation shall be subject
to GHAD Board approval upon making the appropriate findings, including the
requisite public purpose for such donation.
At such times as determined by the Purchasing Agent, but at least annually,
reports shall be prepared and submitted to the GHAD Manager showing the
disposition of surplus supplies and equipment. The report shall contain itemized
information on the disposition of any item that had a purchase cost in excess of the
capitalization threshold established by the GHAD Manager or his or her designee for
inclusion as an asset in the GHAD financial records.
1.160 Public projects.
Public projects as defined by the Uniform Public Construction Cost
Accounting Act (Section 22000 et seq. of the California Public Contract Code) shall
follow the purchasing procedures as set forth in Section 22032 et seq. of the Public
Contract Code.
A. The purchase or contract for public projects less than forty -five
thousand dollars ($45,000) may be performed by the employees of a public agency
by force account, by negotiated contract, or by purchase order (Public Contract
Code Section 22032).
B. The purchase or contract for public projects less than one hundred
thousand dollars ($100,000) may be let to contract by informal procedures as set
forth in Section 22032 et seq. of the Public Contract Code.
1. 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.
2. Where a public project is to be performed, 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 this section, 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.
Additional contractors and /or construction trade journals may be notified; provided,
however:
a. If there is no list of qualified contractors maintained by the
GHAD 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 California
Uniform Construction Cost Accounting Commission.
b. 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.
3. All mailing of notices to contractors and construction journals
pursuant to this section shall be completed not less than fourteen (14) calendar days
before bids are due.
4. The notice inviting informal bids shall describe the project in
general terms, how to obtain more detailed information about the project, and shall
state the time and place for the submission of bids.
5. The Purchasing Agent is authorized to award informal contracts
pursuant to this section.
C. The purchase or contract for public projects greater than or equal to
one hundred thousand dollars ($100,000) shall be authorized by GHAD Board and
shall comply with the competitive bidding procedures set forth in Section 1.090 of
this Policy.
2313293.1