Article XXIII — DEPARTMENT OF PURCHASING AND CONTRACTING

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*Note -- Title amended to read from “Purchasing Agent” to “Department of Purchasing and Contracting” by Ord. No. 6526 (N.S.), effective 3-10-83; article repealed by Ord. No. 8443 (N.S.), § 1, effective 9-15-94; new Article XXIII, "Department of Purchasing and Contracting", added by Ord. No. 9297 (N.S.), effective 2-22-01.

Cross reference(s) -- Definitions, § 20 et seq.; general rules, § 50 et seq.; chief administrative officer, § 120 et seq.; powers and duties of officers, boards, and commissions, § 51; appointment and removal, § 52.

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SEC. 400. RECOGNITION OF DEPARTMENT.

There is in the County a Department of Purchasing and Contracting under the supervision of the Chief Administrative Officer.

(Added by Ord. No. 9297 (N.S.), effective 2-22-01; amended by Ord. No. 10950 (N.S.), effective 9-25-25)

CONTRACTING.

There is in the County and in the Department of Purchasing and Contracting, the position of Director of Purchasing and Contracting, hereafter in this Article referred to as the Director, or the Purchasing Agent. The Director shall ex officio be the Purchasing Agent of the County. The position shall be in the Unclassified Service of the County and shall be filled by appointment by the Chief Administrative Officer in accordance with the County Charter, Rules of the Civil Service Commission and County ordinance.

The Director of Purchasing and Contracting may delegate to other appropriate Purchasing and Contracting staff, the performance of duties and responsibilities related to the functions of the Purchasing Agent.

(Added by Ord. No. 9297 (N.S.), effective 2-22-01; amended by Ord. No. 10950 (N.S.), effective 9-25-25)

SEC. 401. PROCUREMENT.

(a) Except in the case of emergency as provided in Section 402, below, or as otherwise provided by State or federal law, County ordinance, or Board Policy, the Director of Purchasing and Contracting shall have exclusive authority to take the actions described in this section on behalf of the County.

(b) The Director of Purchasing and Contracting has authority to enter into contracts to purchase, rent, license, or lease all personal property for the County, including any insurance, supplies, materials, furnishings, equipment, computer hardware and software systems, and licenses to use intellectual property, and engage independent contractors to perform services for the County, with or without the furnishing of material ("Service Contracts"). The Director of Purchasing and Contracting may enter into the following Service Contracts without obtaining the approval of the Board of Supervisors (Board), except as set forth in Board Policy and as otherwise provided for in this Code of Administrative Ordinances:

(1) Service Contracts where the annual aggregate cost does not exceed the amount set forth in Government Code

section 25502.5, or successor statute; and

(2) Service Contracts where the annual value does not exceed the limits set forth in Board policy where awarded

pursuant to a "competitive negotiated procurement" or "qualifications based selection" procedure, as defined in Board Policy.

(3) Service Contracts, with no maximum limitation on contract value, where:

a. The Service Contract is awarded pursuant to a "formal bidding" or "reverse auction" procedure, as defined in

Board Policy, or

b. The Service Contract is awarded based upon contracts competitively awarded by other government agencies or

cooperative of agencies; or

c. The Board has excepted or exempted the category of goods or services provided under the Service Contract from

competitive procurement requirements pursuant to Board Policy; or

d. The Board has specifically authorized the Director of Purchasing and Contracting, subject to any conditions

specified by the Board.

(c) The Director of Purchasing and Contracting may amend any contract without obtaining approval of the Board provided that the contract value remains within the authorities stated in this Section 401 or, for contracts awarded pursuant to subdivision (b)(2) of this Section 401, the amendment does not increase the annual value to more than twenty-five percent (25%) above such stated authority.

(1) The Director of Purchasing and Contracting has authority to negotiate and amend a contract or contracts where the Board has specifically authorized the Director to do so, in accordance with any conditions specified by the Board.

(d) The Director of Purchasing and Contracting is authorized to enter into Service Contracts for public works (public works contracts as described in section 20121 of the Public Contract Code) without obtaining the approval of the Board as follows:

(1) The estimated cost of the work is less than the amounts prescribed by the Public Contract Code.

(2) The work is performed by an entity that State or federal law has excepted from the bidding requirements of the

Public Contract Code or applicable federal law.

(e) The Director of Purchasing and Contracting is authorized to enter into Service Contracts for highways (as described in section 20390 et seq. of the Public Contract Code) or a bridge or a subway (pursuant to Article 26 of the Public Contract Code) or for a project under the Improvement Act of 1911 (pursuant to Article 27 of the Public Contract Code) or under the County Sanitation District Act (pursuant to Article 50 of the Public Contract Code) or for construction by the San Diego County Flood Control District (pursuant to Article 120 of the Public Contract Code). The Director of Purchasing and Contracting may enter into these contracts, without obtaining approval of the Board of Supervisors, if:

(1) The Director, Department of Public Works, estimates the cost at less than the amount prescribed by the Public

Contract below which threshold the requirements of the Public Contract Code for contracting are inapplicable.

(2) The work is performed by an entity that the State or federal law has excepted from the bidding requirements of the

Public Contract Code or applicable federal law.

(f) The Department of Purchasing and Contracting is authorized to procure the professional services defined in Government Code section 4525 or successor statutes ("Professional Services") through a qualifications-based selection. When procurement Professional Services, the Director of Purchasing and Contracting shall comply with all mandatory provisions of Government Code sections 4525 through 4529.5 and procedures set forth in Board Policy.

(g) Where the Board of Supervisors authorizes a contract with a specified term, such term shall not limit the performance of obligations that survive the contract's expiration or termination, including disentanglement services.

(Added by Ord. No. 9297 (N.S.), effective 2-22-01; amended by Ord. No. 9836 (N.S.), effective 4-12-07; amended by Ord. No. 10158 (N.S.), effective 8-11-11; amended by Ord. No. 10243 (N.S.), effective 2-7-13; amended by Ord. No. 10283 (N.S.), effective 10-10-13; amended by Ord. No. 10406 (N.S.), effective 2-4-16; amended by Ord. No. 10950 (N.S.), effective 9-25-25)

SEC. 402. EMERGENCY PURCHASES.

(a) An "emergency" means conditions that require immediate action to contain or control an immediate danger or threat of danger to the health, safety, or welfare of the public or to persons in the care or custody of the County, as determined by department heads or elected officials in accordance with County ordinances, Board Policy, and State or federal law or regulation.

(b) The Director of Purchasing and Contracting may in cases of emergency, issue contracts or extend or modify existing (emergency or non-emergency) contracts in any amount.

(c) Department heads or elected officials may, in cases of emergency, take necessary emergency procurement actions where authorized by County ordinance, Board policy, or State or federal law or regulations, or where purchasing through the Director of Purchasing and Contracting is infeasible under the circumstances of the emergency. For public works emergencies, the appropriate department head may take all actions authorized under the applicable provisions of the Public Contract Code. All officials taking emergency procurement actions shall promptly report such actions and submit sufficient and proper documentation to the Director of Purchasing and Contracting.

(d) The Director of Purchasing and Contracting is authorized to ratify emergency procurement actions taken by other department heads or elected officials that are within the Director of Purchasing and Contracting's authorities set forth in County ordinance, Board Policy, or State or federal law. Emergency procurements that exceed the Director of Purchasing and Contracting's authorities set forth in County ordinance, Board Policy, or State or federal law or regulation shall be ratified by the appropriate authority, including reporting to or approval by the Board of Supervisors when required.

(Added by Ord. No. 9297 (N.S.), effective 2-22-01; amended by Ord. No. 9836 (N.S.), effective 4-12-07; amended by Ord. No. 10406 (N.S.), effective 2-4-16; amended by Ord. No. 10950 (N.S.), effective 9-25-25)

SEC. 403. EFFECT OF AUTHORIZATION BY BOARD OF SUPERVISORS TO CONTRACT FOR PUBLIC WORKS AND RELATED PROJECTS.

(a) Any action by the Board of Supervisors to authorize contracting for a public works project (pursuant to Article 3.5 in Part 3 of the Public Contract Code) or a highway (pursuant to Article 25 of the Public Contract Code) or a bridge or a subway (pursuant to Article 26 of the Public Contract Code) or for a project under the Improvement Act of 1911 (pursuant to Article 27 of the Public Contract Code) or under the County Sanitation District Act (pursuant to Article 50 of the Public Contract Code) or for construction by the San Diego County Flood Control District (pursuant to Article 120 of the Public

Contract Code) shall be deemed to include approval of contract documents; adoption of plans and specifications; authority to advertise for bids, or ratification of advertising; authority to award to the lowest responsible bidder; and any other actions the Director of Purchasing and Contracting needs to award the contract and to take necessary administrative actions, up to and including, terminating the contract.

(b) Any action referred to in Subsection (a) shall be deemed to authorize the Director of Purchasing and Contracting to (1) modify the plans and specifications, if doing so will not increase the cost or cause a significant change in the project; (2) waive, in consultation with the County Counsel, minor irregularities in a bid, if doing so will not confer a competitive advantage on the bidder; (3) cancel solicitations when in the best interest of the County or district; (4) reject all bids, if the Director of Purchasing and Contracting determines that the bids are unreasonable or if the Director of Purchasing and Contracting determines for any other reason that doing so is clearly in the best interests of the County or district; (5) re- advertise and award, if the Director of Purchasing and Contracting has rejected all bids; and (6) issue termination notices and terminate contracts.

(Added by Ord. No. 9297 (N.S.), effective 2-22-01; amended by Ord. No. 9836 (N.S.), effective 4-12-07; amended by Ord. No. 10950 (N.S.), effective 9-25-25)

SEC. 404. ORDERS BY BOARD OF SUPERVISORS UNDER UNIT PRICE CONTRACTS.

Approval by the Board of Supervisors of departmental budgets, or of appropriation transfers or of appropriations of unanticipated or over-realized revenues, which include repair or remodeling costs shall be deemed an order of the Board for purposes of Public Contract Code section 20128.5 and shall authorize the Director of Purchasing and Contracting to direct that the work be done according to unit prices in any contract awarded under that provision. The Director of Purchasing and Contracting may issue work-orders or a work-order under the unit price contract to the full value of that contract.

(Added by Ord. No. 9297 (N.S.), effective 2-22-01; amended by Ord. No. 10158 (N.S.), effective 8-11-11; amended by Ord. No. 10406 (N.S.), effective 2-4-16; amended by Ord. No. 10950 (N.S.), effective 9-25-25)

The provisions of Articles 25, 26 and 27, Chapters 1 and 2, Part 3, Division 2 of the Public Contract Code, as are applicable to the County of San Diego, shall apply to contracts awarded by the Director of Purchasing and Contracting for subject construction work.

(Added by Ord. No. 9297 (N.S.), effective 2-22-01; amended by Ord. No. 10950 (N.S.), effective 9-25-25)

SEC. 405. LOCAL BUSINESS PREFERENCE PROGRAM.

(a) The Department of Purchasing and Contracting shall give preference to any Local Business that is also a Small Business ("Small-Local Business") in the evaluation of a bid or proposal as required by this Section 405. The terms Local Business, Small Business, and Small-Local Business shall have the meanings set forth in Board Policy.

(b) In any procurement where this Section 405 requires that a preference be applied, fifteen percent (15%) shall be subtracted from any Small-Local Business's bid or proposed price being evaluated for award, in accordance with procedures set forth in Board Policy. The amount subtracted shall not exceed one-hundred-fifty thousand dollars ($150,000.00).

(c) This Section 405 shall not apply to procurements where prohibited by funding source requirements or state or federal law or regulation, or where the County leads or participates in a cooperative procurement with another public entity or entities. The Director of Purchasing and Contracting shall have full authority and discretion to implement this Section 405 to the maximum extent practicable where relevant authority or the specific circumstances of the procurement limits the implementation of some, but not all, of its provisions.

(d) This section shall apply to procurements and resulting contracts issued on or after September 25, 2025.

(Added by Ord. No. 9297 (N.S.), effective 2-22-01; amended by Ord. No. 10406 (N.S.), effective 2-4-16; amended by Ord. No. 10625 (N.S.), effective 1-1-20; amended by Ord. No. 10950 (N.S.), effective 9-25-25)

SEC. 406. STOREROOMS AND WAREHOUSES.

The Board may authorize and approve in writing and the Director may establish and maintain after receiving such written authorization and approval, storerooms or warehouses or other facilities for storing and issuing County supplies.

(Added by Ord. No. 9297 (N.S.), effective 2-22-01)

SEC. 407. CONTRACTING PROCESS.

The Director shall coordinate efforts to improve the County‘s contracting process, including but not limited to the development of standard procedures for the selection of contractors, standard contract provisions, standardized and

simplified review procedures, and standardized contract administration practices. The Director shall monitor and evaluate procedures and provide assistance to the various County departments in respect to contracting. The Chief Administrative Officer shall assign personnel with necessary technical expertise to work with the Director of Purchasing and Contracting in improving the contract process and providing contract review on a consolidated basis.

(Added by Ord. No. 9297 (N.S.), effective 2-22-01)

SEC. 408. THE DIRECTOR TO PURCHASE OFFICIAL BADGES.

The Director shall purchase at the expense of the County and upon proper requisition therefore, all official badges and necessary official equipment for detectives and investigators of the District Attorney, for deputy sheriffs of the Sheriff, for motorcycle officers or motor police of the County, and all other insignia of law or other enforcement officers that may be necessary in order to properly carry on the business of the County.

(Added by Ord. No. 9297 (N.S.), effective 2-22-01)

SEC. 409. RECORDS MANAGEMENT.

The Department of Purchasing and Contracting will perform the following records management functions:

(a) Administer a uniform Records Management Program encompassing all County departments and offices;

(b) Manage Countywide agreements for off-site records storage, scanning services, and duplicating services; and

(c) Provide for records storage and retrieval of historical documents maintained in the County's vault(s).

(Added by Ord. No. 9297 (N.S.), effective 2-22-01; repealed by Ord. No. 9545 (N.S.), effective 5-8-03; new section added by Ord. No. 9601 (N.S.), effective 10-30-03; amended by Ord. No. 9836 (N.S.), effective 4-12-07; amended by Ord. No. 10406 (N.S.), effective 2-4-16)

SEC. 410. PURCHASING AND CONTRACTING PETTY CASH FUND.

(a) There is established for use of the Director a Petty Cash Revolving Fund. The amount of such fund will be established by resolution of the Board.

(b) The Petty Cash Revolving Fund may be used for such miscellaneous purchases as the Director may require. The Auditor & Controller shall draw a warrant to reimburse said Petty Cash Revolving Fund upon receipt of a properly documented statement of disbursements from the fund.

(Added by Ord. No. 9297 (N.S.), effective 2-22-01)

SEC. 411. FORMS OF REQUISITION TO BE DESIGNATED AND SUPPLIED BY DIRECTOR OF PURCHASING AND CONTRACTING.

The Director, upon receipt of a proper requisition, shall supply the heads of the various offices, departments and institutions of the County with forms of requisitions and shall prescribe the manner of transmission and the number of copies of such completed forms to be submitted to Purchasing and Contracting. Requisitions may be transmitted and approvals obtained electronically, provided that proper procedures and safeguards are approved by the Auditor & Controller.

(Added by Ord. No. 9297 (N.S.), effective 2-22-01)

SEC. 412. PERSONS AUTHORIZED TO REQUISITION.

Authority to draw requisitions is hereby vested in the heads of the office, departments and institutions of the County. Such head may delegate this authority to any of his or her deputies, officers or employees through electronic or written authorization.

(Added by Ord. No. 9297 (N.S.), effective 2-22-01; amended by Ord. No. 10406 (N.S.), effective 2-4-16)

SEC. 413. REQUISITIONS REQUIRING APPROVAL OF DIRECTOR.

The Chief Administrative Officer may require that any requisition or requisitions be submitted to that office for approval. The Director has discretionary authority to submit any requisitions to the Chief Administrative Officer for approval.

(Added by Ord. No. 9297 (N.S.), effective 2-22-01)

SEC. 414. APPROVAL OR DISAPPROVAL OF PURCHASING AND CONTRACTING.

The Chief Administrative Officer shall promptly approve or disapprove all requisitions submitted for review and, if approving the requisition, shall transmit the same promptly to the Director. If the Chief Administrative Officer disapproves the requisition, the reasons shall be transmitted in writing to the requisitioner.

(Added by Ord. No. 9297 (N.S.), effective 2-22-01)

SEC. 415. INTERNAL SERVICE FUNDS.

The Department of Purchasing and Contracting shall administer Internal Service Funds for Document Services, in accordance with the following procedures.

(a) The Internal Service Funds may finance (1) equipment, (2) materials, (3) supplies, (4) services, (5) labor expenses, and (6) all other expenses incurred in establishing and operating the service activities.

(b) The Director may provide for the fixing and collection of charges from the recipients of activities financed by the Internal Service funds, and such charges may include all expenses in providing the service activity, including operational costs, depreciation and acquisition of new and replacement equipment.

The Internal Service funds shall be accounted for as prescribed by the Auditor and Controller.

(Added by Ord. No. 9297 (N.S.), effective 2-22-01; repealed by Ord. No. 9545 (N.S.), effective 5-8-03; new section added by Ord. No. 9601 (N.S.), effective 10-30-03)

SEC. 416. PREPARATION OF PURCHASE ORDER AND SUBMISSION TO AUDITOR & CONTROLLER FOR APPROVAL.

Where requisitioned articles are to be procured, the Director shall prepare a purchase order on forms or electronic media and as many copies thereof as may be necessary and transmit the necessary copies thereof to the Auditor & Controller for proper budgeting and certification as to the availability of money to meet the cost of the articles proposed to be purchased. After the Director has determined that there is sufficient money in the proper funds to pay for the purchase, the Director shall be authorized to sign on the original or on the copies or approve electronically the purchase order and issue it to the vendor.

(Added by Ord. No. 9297 (N.S.), effective 2-22-01; amended by Ord. No. 9836 (N.S.), effective 4-12-07)

SEC. 417. [RESERVED].

(Added by Ord. No. 9297 (N.S.), effective 2-22-01; repealed by Ord. No. 9545 (N.S.), effective 5-8-03)

SEC. 418. DISAPPROVAL OF PURCHASE ORDER OR REQUISITION BY THE DIRECTOR OF PURCHASING AND CONTRACTING FOR INSUFFICIENT FUNDS.

Should the Director determine that there are not sufficient funds available to meet the cost of the articles requisitioned, the Director of Purchasing and Contracting shall not purchase or furnish the articles requisitioned, but shall immediately notify the requisitioning office, department or institution of the insufficiency of the funds wherewith to pay for the articles requisitioned.

(Added by Ord. No. 9297 (N.S.), effective 2-22-01)

SEC. 419. TRANSFER AND SALE OF EQUIPMENT AND SUPPLIES BETWEEN COUNTY DEPARTMENTS AND THE PROVISION OF SERVICES BY ONE COUNTY DEPARTMENT TO ANOTHER.

Whenever any office, department or institution requires equipment, materials, supplies or services which another office, department or institution is able to furnish, a suitable request shall be prepared and distributed in the manner prescribed by the Director of Purchasing and Contracting. Transfers between departments of equipment, materials, or supplies shall be accomplished utilizing the forms or electronic media prescribed by the Director. Transfer of equipment, materials, or supplies shall be made between departments on a non-reimbursable basis provided the transfer is between the very same fund. Transfer between different funds, capital outlay funds excepted, shall be processed as a sale on a form and in the manner prescribed by the Auditor & Controller with appropriate charges and credits being made to the respective financial accounts of the office, department or institution affected by such sale. Applicable changes to the property account (capital assets) shall also be made by the Auditor & Controller. Where the request is for the transfer of vehicles, materials, equipment or supplies purchased from capital outlay funds or is for the services involving an expenditure of capital outlay funds, it shall be submitted to the Chief Administrative Officer for approval. If the Chief Administrative Officer disapproves such a request, he shall set forth the reasons in writing to the office, department or institution making the request. After such suitable request has been prepared and transmitted in the manner prescribed by the Auditor & Controller and, when

necessary, approved by the Chief Administrative Officer or the board, the materials, equipment, supplies or services may be transferred or provided. In such cases, appropriate charges and credits to the respective accounts of the offices, departments and institutions affected by such transfer and applicable changes to the property account (capital asset) records shall be made by the Director.

(Added by Ord. No. 9297 (N.S.), effective 2-22-01; amended by Ord. No. 10243 (N.S.), effective 2-7-13)

SEC. 420. REPORT OF PERSONAL PROPERTY NO LONGER NEEDED BY A COUNTY DEPARTMENT.

Whenever any items of personal property, except items for which disposition processes are otherwise covered under law, regulation or code are no longer needed by the office, department or institution having possession thereof, such item shall be reported for redistribution or sale, or trade-in on new acquisition in the manner prescribed by the Director of Purchasing and Contracting.

(Added by Ord. No. 9297 (N.S.), effective 2-22-01; amended by Ord. No. 10243 (N.S.), effective 2-7-13; amended by Ord. No. 10406 (N.S.), effective 2-4-16)

SEC. 421. ACQUISITION OF EXCESS PROPERTY FROM DIRECTOR OF PURCHASING AND CONTRACTING.

Whenever an office, department or institution has need for an article which has been reported as surplus personal property, such office, department or institution may acquire the article by submitting a properly drawn request. Transfers between departments of personal property shall be accomplished utilizing the form(s) or electronic media prescribed by the Director. Transfer shall be made between departments on a non-reimbursable basis provided the transfer is between the very same fund. Transfer between different funds, capital outlay funds excepted, shall be processed as a sale on a form or electronic media and in the manner prescribed by the Director of Purchasing and Contracting with appropriate charges and credits being made to the respective financial accounts of the office, department or institution affected by such sale. Applicable changes to the property account (capital assets) shall also be made in the manner prescribed by the Director of Purchasing and Contracting. Surplus personal property shall be released to the requesting office, department or institution upon receipt of a request prepared and distributed in a manner prescribed by the Director.

(Added by Ord. No. 9297 (N.S.), effective 2-22-01; amended by Ord. No. 10243 (N.S.), effective 2-7-13; amended by Ord. No. 10406 (N.S.), effective 2-4-16)

SEC. 422. DISPOSAL OF PERSONAL PROPERTY NO LONGER NEEDED BY COUNTY.

Whenever the head of any County department, office or institution determines that any items of personal property are no longer needed by that department, office or institution and determines that such items are no longer needed by the County in the manner prescribed by the Director of Purchasing and Contracting, the Director may sell or otherwise dispose of such items in accordance with Sections 25503 through 25507, inclusive, plus 25372 and 26227 of the Government Code unless otherwise directed by the Board.

(Added by Ord. No. 9297 (N.S.), effective 2-22-01; amended by Ord. No. 9836 (N.S.), effective 4-12-07; amended by Ord. No. 10406 (N.S.), effective 2-4-16)

SEC. 423. STANDARDS COMMITTEE.

Upon the recommendation of the Director to the Chief Administrative Officer that a Standards Committee is needed to establish standards with respect to the type, design quality, or brand of a certain article or a group of related articles purchased the County, the Chief Administrative Officer shall forthwith establish such a Standards Committee by appointing the members of the Committee. The membership of any such committee shall be the Director, who shall be the Chairman of the Committee, and the head of each County office, department or institution that is a primary user of the article or group of related articles for which standards are to be established. Any member of such a committee may act through an appointed representative.

(Added by Ord. No. 9297 (N.S.), effective 2-22-01)

SEC. 424. PREPARATION AND DISPOSITION CONTRACT.

Where the Director enters into contracts on behalf of the County, the contracts, including purchase orders, shall be prepared, issued, distributed, and filed in the manner and on forms or electronic systems prescribed by the Director.

(Added by Ord. No. 9297 (N.S.), effective 2-22-01; amended by Ord. No. 10406 (N.S.), effective 2-4-16)

SEC. 425. [RESERVED.]

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(Added by Ord. No. 9297 (N.S.), effective 2-22-01; repealed by Ord. No. 9836 (N.S.), effective 4-12-07)

SEC. 426. RULES AND REGULATIONS.

The Director is authorized to prepare rules, regulations, and procedures implementing and supplementing the applicable statutes, provisions of this Code and Board Policies relating to the performance of Purchasing and Contracting functions. A copy of such rules and regulations and of any and all amendments thereto shall be posted on the County's Internet site.

(Added by Ord. No. 9297 (N.S.), effective 2-22-01; amended by Ord. No. 9836 (N.S.), effective 4-12-07; amended by Ord. No. 10406 (N.S.), effective 2-4-16)

SEC. 427. SERVICES PROVIDED TO OR IN COOPERATION WITH OTHER PUBLIC ENTITIES.

The Director may permit, subject to requirements of this section and subject to such terms and conditions that the Director may prescribe, any public entity including any municipal corporation, school or other special district to participate in procurements or contracts entered into by the Director of Purchasing and Contracting to participate in surplus personal property sales.

1. The public agency shall file with the Director a certified copy of the legal authority or resolution of its governing body requesting that it be authorized to participate in such contracts or periodic sales.

2. The public agency shall:

(a) Make all purchases or sales in its own name and for public purposes only.

(b) Be responsible for payments directly to the vendor in the case of purchases, and be liable for all sales, excise and

other taxes incident to the purchase or sale.

(c) Agree that it will be bound by the requirements of this section and such terms and conditions that the Director of

Purchasing and Contracting may prescribe.

(d) Not have under consideration at the time it makes its request any bids or quotations from other vendors for like

purchases or sales.

3. Appropriate surcharges may be collected from other public entities listed above to offset the pro rata costs for sales administered by the County; administration of contracts for agencies utilizing but not a joint named participant in a cooperative contract; and the procurement and inventory management of stores items.

(Added by Ord. No. 9297 (N.S.), effective 2-22-01; amended by Ord. No. 10406 (N.S.), effective 2-4-16)

SEC. 428. PROHIBITION ON USE OF PROJECT LABOR AGREEMENTS.

(a) For the purposes of this Section, the following definitions shall apply:

(1) "Contractor" shall mean and include a contractor, subcontractor, material supplier, carrier or other person or firm engaged in the completion of a construction project.

(2) "Construction project" shall mean and include any project for the construction, rehabilitation, alteration, conversion, extension, maintenance, repair, or improvement of any structures or real property.

(3) "Project labor agreement" shall mean any pre-hire, collective bargaining or similar type of agreement entered into with one or more labor organizations, employees or employee representatives that establishes the terms and conditions of employment on a construction project.

(b) Except as otherwise required by State or federal law as a contracting or procurement obligation or as a condition of the receipt of State or federal funds, the County shall not require a contractor on a construction project to execute or otherwise become a party to a project labor agreement as a condition of bidding, negotiating, award or performance of a contract.

(c) Nothing in this Section shall be construed as prohibiting private parties that may perform work on County construction projects from entering into project labor agreements or engaging in activity protected by law.

(Added by Ord. No. 10038 (N.S.), effective 4-1-10)

SEC. 429. DEBARMENT AND SUSPENSION.

(a) In order to promote integrity in the County's contracting processes and to protect the public interest, the County shall only do business with responsible persons who do not have recurring non- performance or other egregious behavior.

(b) Sections 429 through 429.15 set forth the grounds for suspension and/or debarment of a person contracting or

seeking to contract with the County.

(Added by Ord. No. 10626 (N.S.), effective 11-14-19)

For purposes of Sections 429 through 429.15:

"Adequate Evidence" means information sufficient to support the reasonable belief that a particular act or omission has occurred.

"Affiliate" means:

(a) the assignee, successor, subsidiary, or parent company, of another person; or,

(b) a controlling stockholder of a person; or,

(c) a person who has the same or similar management of the debarred corporate or other legal entity; or,

(d) a person who directly or indirectly controls, or has the power to control, another person, or is directly or indirectly controlled by another person. Indicators of control include interlocking management or ownership, identity of interests among relatives, shared facilities and equipment, and common use of employees; or,

(e) a business entity that has the same or similar management, ownership or principal employees as the contractor that was debarred, suspended or proposed for debarment, or the debarred person or the business entity operates in a manner designed to evade the application of Sections 429 through 429.15 or to defeat the purpose of these sections.

"Contract" means any written agreement between the County and a person for public works, goods, services, or franchise.

"Contractor" means a person who: contracts or has contracted with the County to provide public works, goods, services, or franchise; directly or indirectly, such as through an affiliate, submits or may be reasonably expected to submit offers, bids, proposals, information, or qualifications for a contract or subcontract under a contract; is awarded a contract; conducts business or reasonably may be expected to conduct business with the County as an agent or representative of another person; or otherwise seeks award of a County contract. The term contractor includes a subcontractor, vendor, franchisee, consultant, or any of their respective officers, directors, shareholders, partners, managers, employees, or other individuals associated with the contractor, subcontractor, consultant, or vendor.

"Controlling Stockholder" means a stockholder who:

(a) owns more than 25% of the voting stock of a corporation; or,

(b) notwithstanding the number of shares that the stockholder owns, has the power to direct or control the direction of the management or policies of a corporation.

"Debar" or "Debarment" means an action taken by the County or other public entity that results in a contractor being prohibited from any of the following: bidding on, proposing on, or otherwise offering to perform work on a contract; being awarded a contract; or performing work on a contract for a defined period of time. A contractor subject to such prohibition is debarred.

"Department" means a County department acting through the department director or designee.

"Director of the Department of Purchasing and Contracting" means the County of San Diego Director of the Department of Purchasing and Contracting or his or her designee.

"Independent Hearing Officer" means a person who has been appointed as a County Hearing Officer pursuant to Article XXXIII of the San Diego County Code of Administrative Ordinances.

"Management" means the officers, partners, owners, foremen, or other individuals responsible for a corporate or other legal entity's financial and operational policies and practices.

"Person" means a natural person as well as a body of persons or an entity (such as a corporation) considered as having many of the rights and responsibilities of a natural person and including but not limited to the capacity to sue and be sued. In addition, if a person is a corporate or other legal entity, it includes individuals who constitute the person's management.

"Preponderance of the Evidence" means proof by information that, compared with that opposing it, leads to the conclusion that the fact at issue is more probably true than not.

"Prime Contractor" means a person who enters into a contract directly with the County.

"Relative" means:

(a) an individual related by consanguinity within the third degree as determined by the common law; or,

(b) a spouse; or,

(c) an individual related to a spouse within the third degree as determined by the common law; or,

(d) an individual in an adoptive relationship within the third degree as determined by the common law; or

(e) any individual considered to be "family" in commonly used and understood terms of the word.

"Subcontractor" means:

(a) a person who contracts directly with a prime contractor but not directly with the County; or,

(b) any person under contract with a prime contractor or another subcontractor to provide any form or type of public work, good, service, and/or franchise to the County.

"Suspend(ed)" or "Suspension" means the debarment of a contractor for a temporary period of time pending the completion of an investigation and any proceedings before an Independent Hearing Officer and any appeals therefrom.

The term "state" shall mean any state that is a part of the United States of America and the District of Columbia.

(Added by Ord. No. 10626 (N.S.), effective 11-14-19)

(a) Sections 429 through 429.15 establish procedures for determining whether a contractor is to be debarred, suspended, or both, and set forth the grounds for debarment and suspension.

(b) Sections 429 through 429.15 provide that a list of debarred and suspended persons is to be created and maintained by the Department of Purchasing and Contracting. It further delineates the consequences of a person's debarment and suspension.

(c) The Director of the Department of Purchasing and Contracting shall adopt procedures and processes to implement Sections 429 through 429.15, including procedures for the conduct of debarment hearings, suspension meetings, and appeals.

(Added by Ord. No. 10626 (N.S.), effective 11-14-19)

PENDING

(a) The Director of the Department of Purchasing and Contracting may suspend a contractor pending a debarment decision if the Director of the Department of Purchasing and Contracting determines that adequate evidence of one of the grounds for debarment listed in Section 429.5 exists.

(b) The Director of the Department of Purchasing and Contracting shall, within three business days' of issuing a notice of suspension, provide a suspended contractor with an opportunity to appeal the suspension at an informal meeting.

(c) The Director of the Department of Purchasing and Contracting shall notify the contractor of the suspension in accordance with Section 429.4.

(d) The suspension is effective until the Independent Hearing Office makes a final decision on the proposed debarment.

(Added by Ord. No. 10626 (N.S.), effective 11-14-19)

(a) Notice shall be by any of the following methods:

(1) Personal delivery with service effective on the date of delivery; or,

(2) Certified mail to the address provided by the contractor, postage prepaid, return receipt requested. Simultaneously, the same notice may be sent by regular mail. If a notice that is sent by certified mail is returned unsigned, then service shall be deemed effective five calendar days after mailing by regular mail, provided the notice that was sent by regular mail is not returned.

(b) Proof of delivery of notice shall be made by the certificate of any officer or employee of the County or by declaration under penalty of perjury of any person over the age of eighteen years. The proof of delivery shall show that delivery was accomplished in conformity with this section.

(c) The failure of any person to receive any notice served in accordance with this section shall not affect the validity of any debarment proceedings.

(Added by Ord. No. 10626 (N.S.), effective 11-14-19)

(a) Grounds for permanent debarment.

(1) A judgment, settlement, stipulation, plea agreement, final conviction, including a plea of nolo contendere, or final unappealable civil judgment, on any of the grounds listed below, constitutes grounds for permanent debarment of the contractor, or the affiliate of the contractor, who is subject to the judgment, settlement, stipulation, plea agreement, final conviction, or final unappealable civil judgment:

(A) under any local, state, or federal law or regulation for embezzlement, theft, bid rigging, perjury, forgery, bribery,

falsification or destruction of records, conspiracy, collusion, misappropriation of public money, false claims, or receiving stolen property; or,

(B) any offense, action, or inaction indicating a lack of business integrity or business honesty; or,

(C) for commission of a criminal offense arising out of obtaining or attempting to obtain a public or private contract or

subcontract, or in the performance of such contract or subcontract.

(2) A Fair Political Practices Commission enforcement order against a contractor, either following a hearing or by stipulation, imposing a penalty for a violation of California Government Code sections 84300(c) or 84301.

(3) The contractor has engaged in any corrupt practice in bidding, award, administration, or performance of a contract.

(4) The person has committed an act or omission so serious or compelling in nature that it affects the present responsibility of the contractor to be awarded a contract or to participate as a subcontractor.

(b) The following are grounds for debarment for a period of no less than two years:

(1) The contractor forfeited a surety bond, bid bond, performance bond, or any surety contract bond, or a surety or insurance provider was required to perform all or a portion of the contractor's work.

(2) Violation of a local, state, or federal law or regulation applicable to a contract other than those identified in Section 429.5(a)(1).

(3) The contractor used substandard materials, or has failed to furnish or install materials in accordance with contract requirements, even if the discovery of the defect is subsequent to acceptance of the work and expiration of the warranty, if such defect is because of intentionally deficient or grossly negligent performance of the contract.

(4) The contractor represents or submits materially false information to the County pertaining to:

(A) the contractor's qualifications or certifications as a local business, small business, veteran owned business, or

disabled veteran business;

(B) the contractor's qualifications or certifications to perform the specified work;

(C) County's prequalification or eligibility process;

(D) the contractor's statement of gross income submitted as part of the procurement process; or

(E) an application for payment or invoices for services.

(5) The contractor has been found by a court of competent jurisdiction, arbitrator, or through a settlement agreement to have engaged in unlawful discrimination in employment.

(6) The contractor violates a material provision of any settlement or agreement in lieu of a County debarment action.

(c) The following are grounds for debarment for a period of no less than one year:

(1) The contractor made two or more claims to seek relief from its bid based on computational or other errors in a bid to the County within a two-year period.

(2) The contractor, on at least two instances within the immediately preceding three years prior to the date on which the County initiates the debarment proceeding, did not meet the standard of care or performance standards in an awarded contract(s).

(3) The contractor, on at least two instances within the immediately preceding three years prior to the date on which the County initiates the debarment proceeding, did not complete work within the time prescribed in an awarded contract(s).

(Added by Ord. No. 10626 (N.S.), effective 11-14-19)

HEARING OFFICER.

(a) Upon recommendation for debarment of a contractor from a department, with the concurrence from the Director of the Department of Purchasing and Contracting, the Clerk of the Board of Supervisors shall appoint an Independent Hearing Officer consistent with and in the same manner as set forth in Section 16.103 of the San Diego County Code of Regulatory Ordinances.

(b) The Independent Hearing Officer shall hear all recommendations that include one or more grounds for debarment and/or suspension.

(c) The Independent Hearing Officer shall determine by a preponderance of the evidence whether there are sufficient grounds for debarment and the length of time of the debarment. Based on the evidence presented by all parties, the Independent Hearing Officer may increase, decrease, or accept the Department's recommendation regarding the length of debarment. The Independent Hearing Officer, however, may not reduce the length of a permanent debarment if the hearing officer determines a violation identified in Section 429.5(a) occurred, or impose less than the length of debarment specified in Section 429.5(b) and (c).

(d) The Independent Hearing Officer shall have the authority set forth in Section 16.104(a) and (b), will conduct the hearing consistent with the provisions set forth in Section 16.105, and will render a decision following the procedures set forth in Section 16.106(a), (c), (d), and (e), of the San Diego County Code of Regulatory Ordinances.

(e) The Independent Hearing Officer decision on debarment shall be in writing and is final pursuant to Section 16.106 of the San Diego County Code of Regulatory Ordinances.

(f) The failure of a person recommended for debarment to appear at a debarment hearing after notice under Section 429.4 may constitute a waiver of that person's right to contest the debarment recommendation. If the Independent Hearing Officer determines that the person has waived the right to contest the debarment under this subsection the Department's recommendation shall become final.

(Added by Ord. No. 10626 (N.S.), effective 11-14-19)

(a) The fraudulent, criminal, or other serious misconduct of any officer, director, shareholder, partner, employee, or other individuals associated with a contractor may be imputed to the contractor when the conduct occurred in connection with the individual's performance of duties for, or on behalf of, the contractor, or with the contractor knowledge, approval, or acquiescence. Acceptance of the benefits derived from the conduct shall be evidence of such knowledge, approval, or acquiescence.

(b) The fraudulent, criminal, or other serious misconduct of a contractor may be imputed to any officer, director, shareholder, partner, employee, or other individual associated with the contractor who participated in, knew of, or had reason to know of, the contractor's conduct.

(c) The fraudulent, criminal, or other serious misconduct of one contractor participating in a joint venture or similar arrangement may be imputed to other participating contractors if the conduct occurred for, on approval of, or acquiescence of, these contractors. Acceptance of the benefits derived from the conduct shall be evidence of such knowledge, approval, or acquiescence.

(Added by Ord. No. 10626 (N.S.), effective 11-14-19)

The procedure for judicial review of a final debarment decision shall be governed by California Code of Civil Procedure

(Added by Ord. No. 10626 (N.S.), effective 11-14-19)

CONTRACTORS.

Director of the Department of Purchasing and Contracting shall create, maintain, and make publicly available a list of the names, addresses, and applicable debarment or suspension commencement and expiration dates of all debarred or suspended contractors.

(Added by Ord. No. 10626 (N.S.), effective 11-14-19)

(a) Contractors who have been debarred or suspended are excluded from submitting bids; submitting responses to requests for proposal, statement of qualifications, quotes or information; receiving contract awards; executing contracts; or participating in the forgoing as a subcontractor, employee, agent or representative of another contractor.

(b) The County shall not award or approve the award of a contract or execute a contract under which a debarred or suspended contractor is intended to participate as a subcontractor or supplier.

(c) A prime contractor shall not employ, subcontract with, or purchase materials or services from a debarred or suspended contractor in support of or for use on a County contract.

(d) The Director of the Department of Purchasing and Contracting shall report, as required by law, debarments under this Division to the appropriate local, state, and federal agencies and authorities.

(Added by Ord. No. 10626 (N.S.), effective 11-14-19)

(a) Affiliates that are debarred or suspended shall be subject to the same effects as stated for a debarred or suspended contractor.

(b) An affiliate may appeal the County's determination that it is an affiliate of the contractor pursuant to the same hearing process for debarments before an Independent Hearing Officer.

An affiliate may not appeal the debarment of any other contractor underlying the affiliate's debarment.

(Added by Ord. No. 10626 (N.S.), effective 11-14-19)

AGENCY.

The Director of the Department of Purchasing and Contracting may debar a contractor who has been debarred by another governmental agency. The debarment would last until the term of the debarment by the other governmental agency expires. The decision of the Director of the Department of Purchasing and Contracting under this section shall be final, and not subject to a hearing before the Independent Hearing Officer.

(Added by Ord. No. 10626 (N.S.), effective 11-14-19)

Any contractor who enters into a contract, either directly as a prime contractor or indirectly as a subcontractor, during a period of suspension or debarment imposed upon that contractor, shall be liable to the County for increased costs incurred as a result of replacing the debarred or suspended contractor.

(Added by Ord. No. 10626 (N.S.), effective 11-14-19)

CONTRACTS.

The County shall not renew or otherwise extend the duration of current contracts with debarred or suspended contractors, unless the Director of the Department of Purchasing and Contracting states in writing compelling reasons for such renewal or extension.

(Added by Ord. No. 10626 (N.S.), effective 11-14-19)

OF DEBARMENT OR SUSPENSION

(a) The Director of the Department of Purchasing and Contracting may offer a contractor the opportunity to execute a written agreement not to bid or submit proposals or perform any work on contracts in lieu of the County pursuing debarment or suspension.

(b) This agreement not to bid or submit proposals for contracts in lieu of the County pursuing debarment or suspension does not constitute a debarment.

(Added by Ord. No. 10626 (N.S.), effective 11-14-19)