Reso 1576 08/2020RESOLUTION NO. 1576
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE VALLECITOS WATER DISTRICT
ESTABLISHING PURCHASING POLICIES AND PROCEDURES
FOR THE DISTRICT AND REPEALING AND REPLACING RESOLUTION NO. 1529
WHEREAS, the Board reviews and approves an annual budget authorizing the
purchase of materials, supplies, equipment and inventory; funding for capital items and
projects; professional services and the general operation of the District's water and
wastewater systems; and
WHEREAS, the Board of Directors recognizes that the efficient operation of the
District requires the execution of contracts for services; the purchase of materials, supplies,
equipment, inventory and the need to supply and re -stock inventory; and
WHEREAS, said Board reviews and approves all purchases of non -emergency
unbudgeted capital items prior to their purchase; and
WHEREAS, in times of emergency, purchases are made and contracts approved by
staff and post -approved by the Board of Directors; and
WHEREAS, the Board of Directors of the Vallecitos Water District desires to
establish formal purchasing policies and procedures; and
NOW, THEREFORE, BE IT RESOLVED THAT the Board of Directors of the
Vallecitos Water District does hereby enact as follows:
Section 1: General Provisions
Section 1.1: All purchases of materials, supplies, equipment, inventory, and
services shall follow the best practices and procedures established for the asset
management and finance systems.
Section 1.2: Purchases up to $1,500 for materials, supplies and equipment shall be
made at the discretion of the Department Supervisor without the need for a competitive bid
process. Purchases should be made from local suppliers and businesses if the cost and
quality of material or service to be provided are equal to those from other areas, and should
be in the best interest of the District. Random vendors and or purchases in this category
shall be chosen periodically for internal review as follows:
1.2a: Selected purchases shall be reviewed for sufficient detail
demonstrating why a vendor or service was chosen and may consider price,
availability, responsiveness, quality and past purchase relationships
1.2b: Selected purchases shall also be reviewed for frequency of purchase
from a single vendor and compared to other venders supplying the same or
substantially the same products or services
Section 1.3: Purchases between $1,500 and $25,000 for materials, supplies and
equipment shall be made through the use of a competitive bid process when practical.
Three bids or proposals shall be obtained when possible and practical. Purchases should
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be made from local suppliers and businesses if the cost and quality of material or service to
be provided are equal to those from other areas.
Section 1.4: Purchases over $25,000 for materials, supplies and equipment shall
be procured through a competitive bid process, including, but not limited to, the preparation
and circulation of a request for a proposal to qualified sources, as determined in the
discretion of the General Manager or designee, to permit reasonable competition consistent
with the nature and requirements of the proposed acquisition.
Section 1.5: Purchases are not to be made unless sufficient funds are authorized in
the budget, or by separate Board action, consistent with this policy.
Section 1.6: The Senior Purchasing Specialist shall coordinate the purchase of
materials, supplies, equipment, inventory, and services after receipt of purchase requisitions
approved by the requesting department's supervisor.
Section 1.7: Purchases made to replace broken or lost small tools where the District
has established credit accounts (i.e., Home Depot) are to be approved, in writing, by the
requesting department's supervisor prior to the purchase and are not to exceed $50 per
single item and $250 in total including tax.
Section 1.8: The General Manager shall execute all contracts on behalf of the
District with the exception of routine annual maintenance and service contracts such as
office equipment and facilities maintenance which may be executed by the Senior
Purchasing Specialist within the authorization limits of Section 2.
Section 1.9: Materials and supplies and/or outside services which can be obtained
from only one vendor are exempt from competitive bidding. Sole -source purchases may
include proprietary items sold directly from a manufacturer, items that have only one
distributor authorized to sell in this area or a certain product has been proven to be the only
product acceptable or in use by the District. All sole -source purchases shall be supported by
written documentation signed by the appropriate department Manager and forwarded and
maintained in a project or accounts payable file. Final authorization of a sole -source
purchase will be approved according to authorization limits in Section 2.
Section 1.10: Vendors supplying annual services or materials in an amount of
$100,000 or greater in any one fiscal year are required to provide a bid for similar services
or materials no Tess than once every five subsequent fiscal years.
Section 2: Authorization Limits:
Section 2.1: Purchases of materials, supplies, equipment, inventory and capital
items up to $5,000 shall be submitted by department supervisors and may be approved by
the Senior Purchasing Specialist, Accounting Supervisor, or Finance Manager.
Section 2.2: Purchases of materials, supplies, equipment, inventory, capital items
and professional services or construction between $5,000 and $10,000 may be approved by
the appropriate department manager.
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Section 2.3: Purchases of materials, supplies, equipment, inventory, capital items
and professional services or construction between $10,000 and $50,000 may be submitted
by a department supervisor or manager and shall be approved by the Assistant General
Manager and General Manager.
Section 2.4: Purchases of materials, equipment, inventory, capital items,
professional services or construction above $50,000 shall be presented to the Board of
Directors for approval.
Section 3: Purchase Orders
orders.
Section 3.1: The Senior Purchasing Specialist shall control and issue purchase
Section 3.2: A contract for outside services, signed by the General Manager or
approved by the Board of Directors, shall serve as a purchase order and an additional
purchase order is not necessary.
Section 3.3: Vendors requiring "open purchase orders" for items such as office
supplies or auto parts for a specific period of time, not more than annually and within the
same budget year, shall be made on purchase orders approved by the General Manager.
Section 4: General Inventory and Supplies
Section 4.1: The Senior Purchasing Specialist is authorized to purchase materials
which are primarily stored as inventory and supplies for operating and maintenance and
general District use such as office supplies. When practical, a minimum of three (3)
quotations should be obtained for all purchases unless the Board has approved the material
as a "standardized item," such as meters. In order to eliminate obsolete material or
supplies, there shall be regular review of all stock, and the District shall maintain only a
reasonable quantity and generally limited to one year's expected requirements.
Section 5: Contracts for Consulting Services and Construction
Section 5.1: For all consultants and contractors providing "as needed" consulting
services or construction for various projects or to offer assistance in -lieu of increasing staff,
a review and approval process shall include, but not be limited to, experience, expertise,
availability of consultant's or contractor's staff, completeness and responsiveness of
proposal, and cost to ensure the consultant's or contractor's experience and expertise in the
area of the service being provided or construction being performed. Consultants and
contractors will be required to enter into contracts at fixed rates valid for up to a two year
term and provide proof of all necessary insurances to the satisfaction of the District.
Section 5.2: Contracts for consulting services up to $50,000; an existing "as needed"
consultant may be selected to provide a proposal. If existing "as needed" consultants do not
have sufficient experience, up to three (3) proposals must be obtained from experienced
and reputable professionals in the particular field. Approval criteria shall include, but not be
limited to, experience, expertise, availability of consultants staff, completeness and
responsiveness of proposal, and cost. The requesting department's manager shall make a
recommendation for final approval by the General Manager.
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Section 5.3: Contracts for consulting services between $50,000 and $150,000; a
minimum of three (3) proposals must be obtained and may include existing "as needed"
consultants. Interviews of consultants may be conducted at the discretion of the requesting
department's manager. Approval criteria shall include, but not be limited to, experience,
expertise, availability of consultants staff, completeness and responsiveness of proposal,
and cost. The requesting department's manager shall recommend the most qualified
proposal to the General Manager for Board consideration and approval.
Section 5.4: Contracts for consulting services in excess of $150,000; a minimum of
three (3) proposals must be obtained from experienced and reputable professionals in the
particular field. Interviews of the consultants may be conducted at the discretion of the
requesting department's manager. Approval criteria shall include, but not be limited to,
experience, expertise, availability of consultants' staff, completeness and responsiveness of
proposal, and cost. The requesting department's manager shall recommend the most
qualified proposal to the General Manager for Board consideration and approval.
Section 5.5: Construction contracts up to $50,000; a review and approval process
shall include, but not be limited to, cost, experience, expertise, availability of contractor staff,
completeness and responsiveness of proposal to ensure the contractors experience and
expertise in the area of the service being provided. Contractors will be required to enter into
contracts and provide proof of all necessary insurances to the satisfaction of the District.
Section 5.6: Construction contracts between $50,000 and $500,000; a minimum of
three (3) bids must be obtained with a review and approval process of the bids including,
but not be limited to, cost, experience, expertise, availability of contractor staff,
completeness and responsiveness of proposal to ensure the contractors experience and
expertise in the area of the service being provided. The requesting department's manager
shall recommend the most responsive and responsible bidder to the General Manager for
Board approval.
Section 5.7: Construction contracts in excess of $500,000 shall be publicly
advertised a minimum of 48 hours at various construction plan rooms sufficient to reach
qualified contractors. A review and approval process of the bids shall include, but not be
limited to, cost, experience, expertise, availability of contractor staff, completeness and
responsiveness of proposal to ensure the contractors experience and expertise in the area
of the service being provided. The requesting department's manager shall recommend the
most responsive and responsible bidder to the General Manager for Board approval.
Section 6: Petty Cash
Section 6.1: Occasionally, purchases will be required from vendors or businesses
that require cash payment. Such purchases may be authorized from petty cash funds by
the Department Supervisor or Manager and shall be limited to individual purchases not
exceeding $150.
Section 7: Payment
Section 7.1: Prior to rendering payment, all appropriate documentation including
invoice, packing slip and purchase order information shall be reviewed and approved by the
Senior Purchasing Specialist or, the appropriate department supervisor and the Accounting
Supervisor, or Finance Manager.
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Section 7.2: Unless otherwise approved, all payments shall be made by warrant or
Automated Clearing House (ACH) upon approval of the disbursements by the Board of
Directors at a regular Board meeting.
Section 7.3: In special cases, upon approval of the General Manager, the District
may provide partial up -front payments for materials, supplies, and equipment, inventory or
capital items, not to exceed 50% of the quoted material costs.
Section 8: Emergency Purchases
Section 8.1: Notwithstanding the foregoing provisions, the General Manager, or
designee, may make emergency purchases, approve service or construction contracts
without compliance with the preceding sections, upon a determination that such purchase is
required for the health, safety and welfare of the customers of the District, for the protection
of the District's property, or if there is an immediate need or emergency which could not be
reasonably foreseen. All emergency purchases and contracts shall be reported to the
Board President as soon as feasible, and shall be reported to and approved by the Board at
its next Board meeting.
Any and all other Resolutions, Articles or Sections of Resolutions, or Amendments in
conflict herewith are hereby rescinded.
PASSED AND ADOPTED by the Board of Directors of the Vallecitos Water District
at a regular meeting held on the 19th day of August 2020, by the following roll call vote:
AYES: ELITHARP, HERNANDEZ, MARTIN, SANNELLA, EVANS
NOES:
ABSTAIN:
ABSENT:
Betty 9. Evans, President
Board of Directors
Vallecitos Water District
ATTEST:
Glenn Pruim, Secretary
Board of Directors
Vallecitos Water District