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    7.    
Tres Hermanos Conservation Authority
Meeting Date: 11/08/2023  

Recommendation:

Adopt the following resolutions entitled:
  1. A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TRES HERMANOS CONSERVATION AUTHORITY, ESTABLISHING THE EXECUTIVE DIRECTOR’S SIGNING AUTHORITY IN AN AMOUNT UP TO AND INCLUDING $50,000 ANNUALLY OR PER PROJECT
     
  2. A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TRES HERMANOS CONSERVATION AUTHORITY, IN THE MATTER OF UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING PROCEDURES
     
  3. A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TRES HERMANOS CONSERVATION AUTHORITY, DELEGATING AUTHORITY TO THE EXECUTIVE DIRECTOR TO AWARD INFORMAL PUBLIC CONTRACTS IN AN AMOUNT OF $200,000 OR LESS AND DELEGATING THE AUTHORITY TO NEGOTIATE CONTRACTS, AWARD PURCHASE ORDERS OR PERFORM WORK BY EMPLOYEES OF THE MEMBER AGENCIES BY FORCE ACCOUNT ON PUBLIC PROJECTS IN AN AMOUNT OF $60,000 OR LESS
     
  4. A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TRES HERMANOS CONSERVATION AUTHORITY, ADOPTING THE PROCUREMENT MANUAL
Background/Analysis:

Pursuant to the Amended and Restated Tres Hermanos Conservation Authority (Authority) Joint Powers Agreement Section 4.5, Purchasing Policy, the Authority shall initially follow the purchasing policies of Chino Hills and applicable provisions of the Public Contract Code when procuring goods, services, and public works contracts. The Executive Director was also authorized to approve purchases and execute contracts authorized by the budget with a value of up to $15,000 per fiscal year. Purchases and contracts with a value exceeding $15,000 per fiscal year were to be approved by the Board of Directors (Board). The Board is able to alter such authority by Resolution.

On October 25, 2021, the Board authorized the Executive Director to make purchases and enter into contracts authorized by the budget with a value up to and including $25,000 per fiscal year.  It is now recommended to increase the Executive Director’s authority to $50,000 annually or per project to more closely align to the member agency thresholds. 

The California Uniform Public Construction Cost Accounting Act ("CUPCCA") provides for the following alternative bidding procedures when an agency performs public work by contract: 
  • Public projects of $60,000 or less may be performed by the employees of a public agency by force account, by negotiated contract, or by purchase order;
  • Public projects of $200,000 or less may be let to contract by informal procedures; and
  • Public projects of more than $200,000 shall be let to contract by formal bidding procedure.
Staff recommends adopting the uniform public construction cost accounting (UPCCA) procedures in the performance of or in the contracting of public projects.  A resolution is also being presented to delegate the Executive Director with the authority to award informal contracts in accordance with the Public Contract Code.
 
In addition, a Procurement Manual has been developed for the Authority which consists of separate policies for (1) Contract Compliance, (2) Purchasing, (3) Federal Purchasing, (4) Bid Protest Process, and (5) Credit Card.  Some highlights from each policy are listed below:
 
1. Contract Compliance Policy
This policy was developed to ensure that contracts are being executed in a timely, efficient, and cost-effective manner and to implement the California Public Contract Code (PCC).
  • Procurement Methods
    • For services over $10,000 and up to $50,000 annually or per project, the informal Request For Proposal (RFP) process must be followed whereby at least three written proposals must be obtained.
       
    • For services over $50,000 annually or per project, the formal RFP process must be followed whereby a standard RFP form including a written description of the project or scope of work must be prepared. The formal RFP must be posted on the Authority’s website.
       
  • Exceptions to competitive bidding include the following:
    • Services $10,000 or under
    • Sole Source
    • Emergency
    • Professional and Consultant Services - when waived by Executive Director
    • Urgent Services
    • Cooperative Services
    • Interagency Agreements
    • Combined Goods and Services
    • Waiver - all others by the Board
       
  • Competitive Bidding for Public Projects
    • Projects $60,000 or less - Projects may be performed by force account, by negotiated contract, or by purchase order.
    • Projects over $60,000 and up to $200,000 - Informal bidding process must be followed.
    • Projects over $200,000 - Formal bidding process must be followed.
2. Purchasing Policy
To ensure that procurements are being accomplished in a timely, efficient manner at the most economical cost.
  • Procurement Methods
    • Open Market - for purchases up to and including $10,000
       
    • Informal Bidding - for purchases over $10,000 and up to and including $50,000, a reasonable attempt must be made to obtain three written competitive quotes
       
    • Formal Bidding - for purchases with an estimated value of over $50,000
       
  • Exceptions to competitive bidding include the following:
    • Under $10,000
    • Sole Source
    • Brand Name
    • Less than three quotes obtained
    • Emergency
    • Urgent
    • Cooperative Purchasing
    • Interagency Purchases
    • Waiver by the Board
3. Federal Purchasing Policy
The purpose of this policy is to supplement the Purchasing Policy and outline the contract provision requirements for using federal funds to purchase materials, products, or services. 
  • Procurement Methods
    • Micro-Purchases:  The acquisition of supplies, services, or equipment wherein the aggregate dollar amount does not exceed $10,000.  For purchases $10,000 or less, use your own judgment in identifying potential suppliers.  Purchase orders are required. 
       
    • Simplified Acquisition:  The acquisition of supplies, services, or equipment in the range of $10,001 to $250,000.  Price or rate quotations must be obtained from an adequate number of qualified sources prior to making a purchase.  For purchases between $10,001 and $250,000, the requestor will need to submit a purchase order documenting at least three price quotes and the basis for vendor selection prior to making a purchase. 
       
    • Sealed Bids:  For construction projects costing more than $250,000, bids are publicly solicited and a firm fixed price contract is awarded to the responsible bidder whose bid is the lowest price.
       
    • Competitive Proposals:  For fixed price or cost reimbursement contracts costing more than $250,000, competitive proposals are normally conducted with more than one source submitting an offer.  
       
    • Noncompetitive Proposals:  Procurement through solicitation of a RFP from only one source.  A waiver must be granted in writing by the Executive Director. 
4. Bid Protest Process Policy
To formalize procedures when dealing with protests to proposed awards of public construction contracts.

5. Credit Card Policy
To establish policies and procedures for using credit cards for purchases of minor supplies and services on behalf of the Authority.
Fiscal Impact:
There is no fiscal impact with this item.
Reviewed by Others:
This item has been reviewed by the Authority's General Counsel.
Attachments
Resolution - Signing Authority
Resolution - Uniform Public Construction Cost
Resolution - Public Contracts Authority
Resolution - Procurement Manual
Exhibit A - Procurement Manual

  

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