Chapter 3354:2-37 Policies on Works of Improvement

3354:2-37-01 Procurement of goods and/services.

(A) Encumbering of funds

) The procurement of works of improvement, goods, and services requires prior authorization through the issuance of a purchase order or board resolution. Such issuance shall encumber funds appropriated for a purpose. Authority to obligate the college for these purchases is limited to those individuals specifically designated by the board with the authority to enter into such contracts.

(B) Competitive selection

(1) The procurement of all works of improvement where the cost is two hundred thousand dollars or more shall be awarded under requirements as established by the Ohio Revised Code to:

(a) The lowest responsive and responsible bidder pursuant to competitive bidding requirements using either the "general contracting (single-prime)" method or "multiple-prime" method; or

(b) A construction manager at risk (CMAR) or a design-build (D/B) services firm pursuant to competitive selection requirements.

(2) Additionally, responsible contracting practices for works of improvement are further defined in rule 3354:2-37-02 of the administarative code.

(3) The procurement of other goods and services (non works of improvement) where the cost is fifty thousand dollars or more shall be awarded pursuant to the College utilizing either a competitive bid or request for proposal process.

(4) Competitive selection requirements may be waived:

(a) Whenever the board or the president has determined that an emergency situation exists;

(b) For goods and services (non works of improvement), in the judgment of the purchasing department and with approval of the administrative services division head it is deemed impossible or impractical to obtain more than one bid due to the product being a used item, a single source item, or for any other sufficient economic reason;

(c) For goods and services (non works of improvement), whenever group buying contracts deemed to meet procurement requirements are utilized as a source for establishing price.

(5) In the event of tie bids or proposals, the following order of tie breaking will occur:

(a) The vendor with prior positive experience with the college including price, quality, product, service history, and delivery shall be considered the most responsible;

(b) The vendor which is located in Lake county shall be considered the most responsive;

(c) Coin toss.

(C) Professional services

Award of contract for the acquisition of professional services will be to providers determined to be appropriately qualified.

(D) Purchases requiring board approval

The purchase and/or lease of all equipment, materials, supplies, works of improvement, and services where the cost is fifty thousand dollars or more shall be presented to the Board for their approval prior to the purchase order being issued.

(E) Purchase of printed materials

The college is required to comply with law (section 3354.10 of the Ohio Revised Code) in awarding contracts for the purchase of printed materials.

Replaces: 3354:2-37-01

Effective: 5/3/2004
Promulgated Under: 111.15
Statutory Authority: 3354
Rule Amplifies: 3354
Prior Effective Dates: 1/15/1998, 3/6/2003

3354:2-37-02 Responsible contracting practices for works of improvement.

(A) The board of trustees desires to obtain quality workmanship, efficient operation, safety and timely completion of works of improvement from the lowest responsive and responsible bidder. A bidder shall be considered responsive if their proposal meets or exceeds specifications. A bidder shall be considered responsible if the bidder's experience, financial condition, performance on previous contracts, facilities and personnel to execute the contract properly are acceptable. The contract awarded will be to the lowest responsible bidder complying with conditions of the invitation to bid, provided that the bid is reasonable and it is in the interest of the district to accept it. The district, however, reserves the right to reject any and all bids or parts thereof or items therein and to waive any informality in bids received whenever such rejection or waiver is in the interest of the district. The district also reserves the right to not award a contract to the low bidder if it is determined by the district that the low bid is not in the best interest of the district.

(B) Each bidder shall supply information necessary to ascertain the pecuniary and financial responsibility, accountability, reliability, skill, capacity, judgment and past experience as set forth in paragraph (D) of this policy. In the event the apparent lowest bidder fails to furnish the requested information as set forth in paragraph (D) of this policy, any of the information provided is false, or the information provided demonstrates a lack of responsibility, the apparent lowest bidder may be rejected and disqualified and in said event the next lowest bidder shall become the apparent lowest responsive and responsible bidder.

(C) This policy shall apply to all contracts for works of improvement estimated to cost in excess of one hundred thousand Dollars

(D) Each bidder shall supply and certify to the accuracy of the following information relative to projects engaged by the bidder within the last five years:

(1) A description of its experience with projects of comparable size, complexity, and cost demonstrating the contractor's ability and capacity to perform a substantial portion of the project with their own forces;

(2) Identification and description of any projects where the contractor was determined by a public entity not to be a responsible bidder although it was the apparent lowest bidder, the reasons given by the public entity and an explanation thereof;

(3) Disclosure of any OSHA violation resulting in fines;

(4) Disclosure of any violations pertaining to unlawful intimidation or discrimination against any employee by reason of race, c reed, color, disability, sex, religion, national origin or employees civil rights or equal employment opportunities;

(5) Disclosure of any adverse judgments in an action involving a claim for personal injury or wrongful death arising from the performance of work related to any project in which it has been engaged;

(6) Disclosure of any adverse judgments for nonpayment or nonperformance;

(7) Disclosure of violations of the prevailing wage law or any other state or federal labor laws;

(8) Disclosure of any workers' compensation laws;

(9) Disclosure of any felony convictions involving the contractor, its officers, directors or owners;

(10) Disclosure of any violations of environmental and/or health laws, codes, rules and/or regulations;

(11) Disclosure and confirmation that all apprentices used by the bidder on the project are trained in a program approved by the United States department of labor or the Ohio apprenticeship council;

(12) Identification of work to be subcontracted and the value of such work, the names of all major subcontractors, and confirmation by the bidder that it has or will advise said subcontractors that they are obligated to the same levels of responsibility as the bidder/contractor.

(E) The district reserves the right to further inquire of the apparent lowest bidder to determine whether the bid contains mathematical errors, omissions and/or erroneous assumptions and whether the apparent lowest bidder has the capability to perform and complete the contract for the bid amount.

(F) The district retains the right to waive non-compliance with the best bid criteria when it is determined that non-compliance does not affect the competitive nature of the bidding process.

(G) All bid invitations, specifications, and similar requests for works of improvement shall advise all applicable prospective bidders of this policy.

Replaces: 3354:2-37-02

Effective: 5/3/2004
Promulgated Under: 111.15
Statutory Authority: 3354
Rule Amplifies: 3354
Prior Effective Dates: 3/6/2003

3354:2-37-17 Establishing and depreciation capital.

This policy on capitalization and depreciation is attributable to the district's compliance requirements with governmental accounting standards board (GASB) "Statement No. 35."

The district's capital assets include: land, land improvements, infrastructure, buildings, building improvements, construction in progress, equipment, furniture, and vehicles.

All capital assets are capitalized at no cost (or estimated historical cost) and updated for additions and reductions during the year. Donated capital assets are recorded at their fair market values as of the date received. The district maintains a five thousand dollar capitalization threshold for recognition of capital assets into the District's accounting records.

Improvements to the District's capital assets are capitalized. The costs of normal maintenance and repairs that do not add to the value of the capital asset or materially extend the capital asset's life are not capitalized. Dependent upon its materiality, interest incurred during the construction of capital assets is also capitalized.

All reported capital assets, other than land, are depreciated. Depreciation is computed using the straight-line method over the following useful lives:

Desription

Estimated Lives

Land improvements

20-30 years

Infrastructure

20-25 years

Building and building improvements

5-40 years

Equipment, furniture and vehicles

3-15 years

Software, library books and other collections

3-5 years

Replaces: 3354:2-37-17

Effective: 5/3/2004
Promulgated Under: 111.15
Statutory Authority: 3354
Rule Amplifies: 3354
Prior Effective Dates: 1/11/1996, 7/2/2002