§ 3.08.080. Exemptions to Bid Requirements.

A.

Exempt Purchases. Certain purchases are not readily adaptable to the open market and formal bidding process. These purchases are generally for items where the competitive bid process is not applicable and purchase orders will not be used. These allowable exceptions include:

• Specialized Legal Services.

• Bank charges and fees.

• Debt Service transactions.

• Governmental units (e.g. asphalt repair, LAFCO).

• Insurance premiums and claims.

• Postage.

• CalPERS, PARS, and CERBT payments.

• Public notices.

• Real property purchases.

• Utility bills.

• Water purchases.

• Water resource assessments.

If a vendor that provides one of these services listed above requires a purchase order to be issued for their records, a Purchasing Agent may issue a Blanket Order for the appropriate amount without recording an encumbrance.

B.

Cooperative Procurement. The District may participate in purchases and contracts established by other political jurisdictions, provided the cooperative agreement is established following a competitive bid process. The cooperative purchase may be authorized according to authorization table. Evidence of the competitive bidding process conducted by the other political jurisdiction must be obtained and kept on file to support the requisition and purchase order. The approval of the Board of Directors is required for the award of any cooperative purchase of one hundred thousand dollars ($100,000.00) or more.

C.

Sole Source. Commodities, services and equipment which can be obtained from only one vendor are exempt from competitive bidding. Sole source purchases may include proprietary items sold directly from the manufacturer, equipment which has been standardized by the District, items that have only one distributor authorized to sell in this area, agreements for maintenance of computer software the District owns or a certain product that has been proven to be the only product acceptable. All sole source purchases shall be supported by a Sole Source form (and any other relevant written documentation) signed by the appropriate Supervisor, Manager, Director, AGM, and/or GM/CEO as determined by the authorization table, and forwarded to a Purchasing Agent. Final determination that an item is a valid sole source purchase will be made by a Purchasing Agent.

D.

Emergency Purchases. Emergency purchases may be made without competitive bidding when time is of the essence, and shall be made only for the following reasons:

• to preserve or protect life, health or property; or

• upon natural disaster; or

• to forestall a shutdown of essential services.

Since emergency purchases do not normally provide the District an opportunity to obtain competitive quotes, sound judgment shall be used in keeping such orders to an absolute minimum. In addition, the following requirements shall apply:

(1)

A Purchasing Agent shall be contacted as soon as possible for an advance purchase order number, which may be given verbally, to cover the emergency transaction. If unable to contact the Purchasing Agent, place the order and contact the Purchasing Agent the next workday.

(2)

A completed purchase requisition shall be submitted within two working days, or as soon as the information is available. All purchase requisitions for emergency purchases shall be approved electronically by the appropriate Supervisor, Manager, Director, and/or AGM.

(3)

Documentation explaining the circumstances and nature of the purchase shall be submitted by the Supervisor, Manager, Director, and/or AGM as follows:

a.

Purchases less than five thousand dollars ($5,000.00): Use standard purchasing procedures.

b.

Purchases in the amount of five thousand dollars ($5,000.00)—one hundred thousand dollars ($100,000.00): Require the approval of the GM/CEO. The GM/CEO may delegate the authority to approve emergency purchases less than one hundred thousand dollars ($100,000.00) to an AGM.

(4)

If the emergency purchase causes any budget line item to exceed the approved budget, it shall be the responsibility of the department requesting the purchase to obtain subsequent Board of Directors approval for reserve funding or to make a budget transfer to cover the purchase. Approvals for a budget transfer must be given by the appropriate Supervisor, Manager, Director, and/or AGM as determined by the authorization table.

(5)

If the emergency purchase involves Force Account Work in association with a declared disaster (e.g. FEMA), detailed records of the work must be documented including: scope of work, daily staff time and equipment used. Depending on the scope of the disaster, Force Account Work may involve CIP.

( Res. No. 2015-11-6, § 1, 11-24-2015 ; Res. No. 2017-10-2 , 10-24-2017; Res. No. 2018-7-2 , § 1(Exh. A), 7-24-2018)