The purpose of this policy is to establish uniform procedures for bidding, contracting, and the procurement of all goods and services, while receiving the best possible value for the district. These guidelines are not intended to address every issue, exception, or contingency that may arise in the course of purchasing activities. The basic standard that should always prevail is to exercise good judgment in the use and stewardship of district resources, including keeping within the budget authorized by the board of directors. To ensure that Hi-Desert Water District receives the best possible value for all goods and services purchased, the district's purchasing manager will perform all purchasing activity, the only exception being where an outside consultant prepares bid packages.
(Res. 10-24 § 1020.1)
The general manager is authorized to negotiate and execute contracts for all operating, capital improvement and emergency purchases made in conformance with this purchasing policy. The policy outline herein is to be adhered to by all departments when procuring supplies, services and equipment. The general manager will establish written administrative procedures and update them as needed to conform to this policy and applicable laws.
The purchasing manager is responsible for purchasing activities; the chief financial officer is responsible for insurance assessment and finance review.
(Res. 10-24 § 1020.3)
District staff and representatives shall conduct all dealings with vendors and contractors in a professional manner. The district shall provide equal opportunity and demonstrate fairness, integrity and courtesy in all vendor relations.
(Res. 10-24 § 1020.4)
When feasible, local businesses within the Morongo Basin may be allowed a preference margin where items are available from multiple sources.
(Res. 10-24 § 1020.5)
Purchases and agreements in the amount listed below may be approved by the general manager, or his/her designee, as follows:
A. 
Fifty thousand dollars or less on items related to water or wastewater.
All other purchases and agreements exceeding the general manager's authorization amount require board approval.
(Res. 20-21)
The intention of the approval matrix is to designate the level of authorization required for purchases. It is designed so that increasing responsibility moves horizontally to the right across the columns while increasing dollar ranges go down the matrix vertically. Supervisors and management must obtain their immediate supervisor's approval for their expenses such as seminars, travel, and mileage reimbursement.
The approval requirement of purchases is based on the total amount of the purchase as follows (transactions cannot be split to get under the approval requirements):
A. 
Lead operator: $0 to $500.00.
B. 
Director district services, director public and government affairs, director of human resources and risk management, purchasing manager, construction supervisor, controller, customer service/billing manager, production foreman, chief plant operator, wastewater treatment plant supervisor: $0 to $1,000.
C. 
CFO and AGM: $0 to $10,000.
D. 
General manager: $0 to $50,000.
E. 
Board of directors: no limit.
(Res. 20-21; Res. 22-24)
The general manager has authority to sign checks up to $50,000. The AGM-operations, AGM-administration or the chief financial officer (CFO) has the authority to sign checks up to $10,000. Checks over $50,000 will require two signatures, where one of the signatures must be either the general manager or a board member, and the second signature can be the general manager, any board member, the AGM-operations, AGM-administration, and/or the CFO. In the event that the check is prepared by the AGM-administration or the CFO, the AGM-administration or the CFO should not be allowed to sign that check.
(Res. 20-21)
Since purchases over $25,000 require advertised sealed bids or sealed technical proposal for service and board approval, requisition specification must be submitted to the buyer no later than 30 working days prior to the next regular board meeting to allow time for review by the buyer and preparation for the board packet.
(Res. 10-24 § 1020.8)
A purchase requisition form must be submitted to the buyer to request the supplies, equipment, material, and service. For purchases over $500.00, a purchase order will be generated as necessary by the purchasing manager upon receipt of an approved purchase. Requisition is the responsibility of the authorizing party to verify that the funds are available in the budget.
(Res. 10-24 § 1020.9)
The purchase order is the form used to outline the legal and contractual terms for purchases. The purchase order also serves as the request for accounting department to encumber/set aside the funds for the purchase. The purchase order should contain sufficient information to fill the order in an accurate and timely fashion. The vendor's acceptance of a purchase order constitutes a contract. Purchase orders require the CFO or the general manager's approval to be valid.
A. 
In cases where purchase orders are not required, as set forth in this section, a purchase requisition shall be completed in accordance with HDWDC § 4.10.090, Purchase requisition.
B. 
Purchase orders will be used according to the following guidelines:
1. 
One Dollar to $500.00 (Quotes and Purchase Orders Are Not Required). For purchases of materials, equipment, and services less than $500.00, comparative pricing is not required.
2. 
Five Hundred One Dollars to $25,000. To purchase items costing $501.00 to $1,000, a verbal quote is required, then from $1,001 and up to $25,000 a written comparative quote shall be solicited from at least two or more sources prior to selecting a preferred supplier and processing the purchase order, unless it meets the criteria of HDWDC § 4.10.170, Sole source purchases.
When written quotations cannot be obtained, documentation will be prepared describing who, what, where, when, and why written quotation could not be obtained.
3. 
Above $25,000. Except as outlined in HDWDC § 4.10.140, Emergency purchases, purchases exceeding $25,000 require publicly advertised formal sealed bids with awards made by the board of directors. Suppliers will provide written quotes for consideration and recommendation to the board of directors for award of contract.
C. 
Purchase orders will not be required for the following:
1. 
Travel advances/reimbursements;
2. 
Prepaid travel expenses, such as registration, hotels, airfare, etc.;
3. 
Temporary labor services;
4. 
Utilities;
5. 
Contract or letter agreement approved by the general manager or board of directors;
6. 
Meal reimbursements;
7. 
Professional service contracts;
8. 
Petty cash purchases.
(Res. 10-24 § 1020.10)
Blanket purchase orders will be used when the district purchases repetitive, specified services or items, or families of items from the same vendor during the fiscal period, on a regular basis or requiring multiple shipments. Blanket purchase orders are used to obtain more favorable pricing through volume commitments, or to better control recurring vendor payments such as utilities and leases.
(Res. 10-24 § 1020.11)
Change orders are issued to correct, change, or supplement a purchase order. To process a change order, the original requestor will submit a purchase requisition to the purchasing manager referencing the purchase order that is being changed and the nature of the change.
Change orders resulting in additional expenditures are subject to the appropriate approval level identified in HDWDC § 4.10.060, Approval requirements.
(Res. 10-24 § 1020.12)
Any discrepancy between the original purchase order and the vendor invoice will be investigated by the purchasing manager.
Purchases obligated or agreements entered into by any district employee without approval from the purchasing manager, or the general manager, will not be honored for payment by the district.
(Res. 10-24 § 1020.13)
In the event of an emergency, the general manager or his/her designee may make, without restrictions, any purchase(s) necessary to alleviate the situation. An "emergency" is defined as any occurrence or situation which is posing a real and immediate hazard to public health or safety. Any purchase of this type will be fully disclosed at the next scheduled meeting of the board of directors and, if applicable, submitted to the board for consideration of approval or ratification.
(Res. 10-24 § 1020.14)
Credit card purchases, limited to $20,000 per month, may be made by the general manager. Credit card purchases, limited to $10,000 per month, may be made by the AGM, CFO, and the purchasing manager. Members of the board of directors are limited to credit card purchases for travel or travel-related expenses while in the performance of district duties or in attendance at district-related training or seminars. Director travel expenses shall be handled according to Chapter 3.100 HDWDC, Travel and Expense Policy. Notwithstanding the foregoing, members of the board of directors shall be required to comply with all applicable laws, rules and regulations regarding expenditures and reimbursements including, but not limited to, laws regarding conflicts of interest and ethical requirements.
All receipts for credit card purchases must be received by accounts payable before the credit bill is due. Purchase requisitions for a purchase order may be required for credit card purchase if the dollar amount exceeds $500.00.
No personal expenses are to be charged to the credit card at any time or for any reason whatsoever.
(Res. 20-21)
The basic premise for petty cash purchases is that it is less expensive to pay for small, nonrepetitive purchases with cash than with check. The maximum petty cash expenditure is $50.00; any request over $50.00 must be approved by the general manager. The maximum limit of petty cash fund is set at $500.00. Transactions cannot be split to utilize petty cash rather than the standard purchasing procedures.
(Res. 20-21)
Commodities and services, 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, items that have only one distributor authorized to sell in this area or a certain product has been proven to be the only product that has proven to be acceptable. All sole source purchases shall be supported by written documentation signed by the appropriate department head and forwarded to the purchasing manager. Final determination that an item is a valid sole source purchase will be made by the general manager.
(Res. 10-24 § 1020.17)
All departments are responsible for providing detailed, accurate specification when requisitioning goods and services.
A. 
Sole source specifications shall be avoided whenever possible, as they minimize or eliminate competition. The general manager may authorize sole source specifications with sufficient written justification. An example of sole source specification is where specific equipment or supplies are required in order to be compatible with existing equipment or to perform a complex or unique function. Written documentation signed by the appropriate department head shall accompany the requisition for any sole source specifications.
B. 
Use of brand names in specifications shall be for the purpose of describing the standard of quality, performance, and characteristics the district desires and not be intended to limit or restrict competition. If a brand name is incorporated into a specification, a minimum of two acceptable brands shall be listed whenever possible and shall be followed by the statement "or approved equal" unless the sole source rule applies.
C. 
Using specifications provided by a specific manufacturer should be avoided; however, if used, the name of the manufacturer, model number, etc., should be indicated. The bid document shall clearly state that the use of the manufacturer's specifications is for the sole purpose of establishing the level of quality desired. The purchasing manager reserves the right to determine and approve any product submitted as an "or equal."
D. 
There may be occasions when vendor assistance is required to develop a specification. Such specifications shall be written in general terms and the vendor shall be informed that the information they provide may be used to develop specifications for a competitive bid process. The vendor shall be allowed to submit a bid, but will not be given any preference over the other bids.
(Res. 10-24 § 1020.18)
Approved capital outlay purchases are contained in the final approved budget.
A. 
All requests to realign capital expenditures due to a change in priorities, emergencies or unforeseen expenditures will be submitted in written form to the general manager for approval.
B. 
The general manager must inform the board of directors in a memorandum when dollars are requested to be shifted between the capital outlay and operating expense budgets.
(Res. 10-24 § 1020.19)
Vehicles should be purchased through the State's Vehicle Procurement Program, unless they can be acquired at the same cost or less expensively by competitive quotation bids.
(Res. 10-24 § 1020.20)
Except in very unusual situations all items purchased by the district will be the requested item or "its equal." "No substitute" means there is only one acceptable product to perform the function required by the requesting department. No substitute items tend to reduce competition and increase cost and should be used judiciously. A justification for a no substitute item will be prepared by the requestor and attached to the purchase requisition. The buyer/purchasing manager is responsible for making the final determination on no substitute items. Vendors will not be listed as "No Substitute."
(Res. 10-24 § 1020.21)
All purchase of materials, goods and services by the district are valid only if procured with an authorized purchase order according to policies and procedures contained herein.
(Res. 10-24 § 1020.22)