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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 Resolution No. 721 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