Reso 0721-04/1985 RESOLUTION NO. 721
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
SAN MARCOS COUNTY WATER DISTRICT
ESTABLISHING PURCHASING POLICIES AND PROCEDURES
FOR THE DISTRICT
WHEREAS, the Board of Directors of the San Marcos County Water
District recognizes that the ongoing operation of the District requires the
purchase of materials, supplies, equipment and inventory; and
WHEREAS, it is necessary to purchase these items on a regular basis
to carry on the day-to-day operation of the District as well as to supply and
resupply inventory; and
WHEREAS, said Board reviews and approves all purchases of budgeted
and unbudgeted items prior to their purchase; and
WHEREAS, in times of emergency, purchases are made by Staff and
post-approved by the Board of Directors; and
WHEREAS, the Board of Directors of the San Marcos County Water
District desires to establish formal purchasing policies and procedures for
implementation by District Staff.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE SAN
MARCOS COUNTY WATER DISTRICT AS FOLLOWS:
SECTION 1. General Provisions.
Section 1.1. Purchases shall be made to provide the District
with maximun banefits with minimun expenditures. Purchases shall be made in
economical quantities, with uniform bidding by supplier wherever possible.
Purchases should be made from local concerns if cost and quality of material
are equal to those in other areas.
Section 1.2. Purchases are not to be made unless sufficient
funds are available to make payment promptly upon delivery.
SECTION 2. Purchase Orders
Section 2.1. All purchases shall be made on purchase orders
signed by the General Manager, or in the General Manager's absence, the
General Manager' s designate.
Section 2.2. A purchase order must indicate the name of the
vendor, and the exact description and price of each item. All requests shall
be reviewed by the appropriate department head or the department head ' s
designate. The request will then be reviewed and signed by the General
Manager or the General Manager's designate.
Resolution No. 721
Page 2
SECTION 3. Capital Expenditures
Expenditures in excess of $500 for items classified as capital assets
sball be approved by the Board in the District Budget, and may be purchased on
individual orders, after quotations are secured. Any capital improvements, or
increase in capital assets, in excess of $500 and not approved in the Budget,
shall be suhnitted to the Board for prior approval.
SECTION 4. Inventory and Supplies
The purchasing Agent is authorized, without specific approval from
the Board, to buy materials which are primarily stored as inventory and
unless the Board ve the material as a z , such as
meters. In order to eliminate obsolete material, there shall be regular
review of all stock, and the District shall maintain only a reasonable
quantity in line with future needs. Generally, purchases shall be limited to
expected requirements not exceeding one year.
SECTION 5. Other Purcbases
All purchases, other than for capital assets or for inventory and
supplies, may be purchased on individual orders not to exceed $7,500 without
Board approval. Wbere practical, three quotations shall be obtained on all
purchases, unless the price is controlled by an official rate-making body,
such as is the case with telephone, gas or electric service. Expenditures
over $7,500 must be ap roved by the Board, unless purchased under a contract
previously approved by ~e Board or is in the current District Budget.
SECTION 6. Petty Cash
Occasionally, purchases will be required from vendors who require
cash payment. Such purchases may be authorized from petty cash funds by the
General Manager or the General Manager's designate. A designate shall be
limited to approving purchases not to exceed $300.
SECTION 7. Items in Excess of $25,000
Materials, supplies, and equipment with an estimated cost in excess
of $25,000, shall be procured from the lowest responsible bidder after
advertising for bids in a newspaper of general circulation in the District at
least five days prior to the opening of bids. A canvas of all bids received
shall be presented by the General Manager to the Board, together with a
were received shall not h after a bid has been approved by
the Board.
SECTION 8. Emergency Purchases
Notwithstanding the foregoing provisions, the General Manager may
make emergency purchases without compliance with the preceding section, upon a
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Page 3
determination that such purchase is required for the health, safety, and
welfare of the people of the District, or for the protection of the District's
property, or that there is a present, immediate and existing emergency which
could not be reasonably foreseen. All emergency purchases shall be reported
to the Board President as soon as feasible, and shall be reported to and
approved by the Board at its next regular meeting.
PASSED, ADOPTED AND APPROVED at a Regular Meeting of the Board of
Directors of the San Marcos County Water District held this 1st
day of April , 1985, by the following roll call vote:
AYES: Directors: Newport, Rutherford, Mason, Mahr, Ferguson
NOES: Directors: None
ABSTAIN: Directors: None
ABSENT: Directors: No ne
Board of ~'recttgrs t
San Marcos County Water District
ATFEST:
Board of Directors
San Marcos County Water District