Penn Valley Fire Protection District Response*

R1

PVFD's Board should have a budget subcommittee that participates fully with the Chief and the Finance Manager in producing each year's budget. AGREE - The board will take action to appoint a Finance Committee.

R2

PVFD's Board should have mandatory training about the Brown Act's requirements. AGREE – PVFPD board members and all elected officials in the State of California are mandated to attend AB1234 Ethics Training every two years. AB1234 Training includes training on the Brown Act. All PVFPD board members are in compliance.

R3

PVFD's bylaws should be available to the public on PVFD's website. AGREE - Though not mandated by any legislative body or directive, PVFPD has included a copy of the bylaws on the district website.

R4

PVFD's bylaws should clearly state the Boards duties, making clear that each Board member has a fiduciary responsibility to the District and to the stakeholders, including all residents of the District. AGREE - The board will take this recommendation into consideration during its next regular review of the bylaws.

R5

PVFD should pursue consolidation with NCC/OH in order to take advantage of economies of scale. DISAGREE - There are no economies of scale in the previously proposed consolidation, nor was the previously proposed consolidation intended to provide economies of scale. The intention, clearly demonstrated by the proposed Plan for Service and the Organization Chart (attached), was to add staff to provide better service to the consolidated district. PVFPD has been able to accomplish this intended higher level of service to constituents through our consolidation with Rough and Ready, bringing an additional ALS ambulance online to help relieve the shortfall of ambulances in Nevada County, and adding staff to respond to emergencies inside our newly expanded district, as well as in surrounding districts. No evidence has been presented that consolidation with any particular agency is necessary at this time.

R6

PVFD should consider hiring a new auditor. AGREE – We are currently under contract through the 2026 audit and will issue an RFP for future audits at the appropriate time. The board evaluates the proposals and selects the lowest responsible bid, in accordance with accepted fiduciary expectations. The district will continue requesting proposals from licensed CPA firms. Attachment /F4

R7

PVFD should consider rotating auditors every five to seven years, pursuant to the recommendation of the California State Controller's Office. AGREE – As stated in our response to R6, we will issue an RFP following the conclusion of our current contract. Although we have remained with the same auditing firm for a number of years, the lead auditor rotates every six (6) years, pursuant to AB1345. Attachment /F4 PENN VALLEY FIRE PROTECTION DISTRICT ARTICLE: SOP: 101 STANDARD SECTION: Finance OPERATING PROCEDURES SUBJECT: PURCHASING POLICY Purchasing Purpose and Scope The purpose and scope of this policy is two-fold: (a) To establish efficient procedures for the purchase of supplies and equipment and for obtaining construction and other services by Penn Valley Fire Protection District (hereafter referred to as District) which will assure the lowest cost commensurate with sound quality and in accordance with appropriate standards and specifications; to provide for positive financial control over purchases; to provide for competitive bidding; and to provide a uniform procedure and notice thereof to prospective suppliers. (b) Meet the requirements of CA Government codes §54202 and 54204. This policy is written in accordance with the following California governmental codes. Items not specifically addressed in this policy will be governed by the same. CA Civil Code ٠ CA Government Code CA Health and Safety Code CA Public Contract Code 6 Purchasing Officer The Fire Chief is the purchasing officer. The Fire Chief may delegate portions of the purchasing officer authority to subordinates. During times of leave of the Fire Chief, the On Duty Battalion Chiefs will assume the purchasing authority of the Fire Chief. The purchasing officer, or designated agent, shall have the authority, in accordance with purchasing procedures required by this policy, to: (a) Purchase or contract for work, services, supplies, and equipment: (b) Negotiate, recommend, and execute contracts for the purchase of supplies, equipment, and services: (c) Act to procure for the District optimum quality in supplies, services, and equipment to meet the needs of the District at the least expense to the District; Attachment /F4 (d) Seek to obtain as full and open competition as possible on all purchases commensurate with the needs of the District and the level of administrative effort and cost justified by the amounts in issue; and (e) Supervise and inspect all supplies and equipment purchased to ensure conformance with specifications. Purchasing Authority Budgeted and non-Budgeted Purchases (a) Board of Directors (BOD) approval of the annual budget shall constitute authorization for the purchase of equipment, goods and services specifically listed and described in such budget. (b) The purchasing officer may, without bids, quotes or prior BOD approval, make single non-budgeted purchases not to exceed Five Thousand Dollars ($5,000.00) (c) The purchasing officer may exceed the single purchasing limit ($5,000.00) for maintenance of structures and equipment, which cannot be postponed until action can be taken by the board. The purchasing officer or his/her designee shall submit a report of these transactions and present such at the next regular BOD Meeting (reference CA Public Contract Code §22050) Purchasing Limits Purchasing limits are as follows: Fire Chief Up to $10,000.00 Battalion Chief Up to $3,000.00 Captain or Lieutenant Up to $3,000.00 Up to $3,000.00 Collateral Duty Officer Purchasing Orders Purchasing limits apply to the following: (a) Purchases of $500.00 or less do not require a purchase order number. (b) Purchases of $2,500.01 to $5,000.00 requires Approval from the Fire Chief, prior to purchase. a. Purchases of $5,000.01 to $10,000.00 requires: (C) Bid from three (3) or more vendors, if three bids can be obtained. a. Approval from the Fire Chief, prior to purchase. b. Attachment /F4 (d) Purchases of $10,000.01 and over, see Bidding and Quotations Credit Card Purchases The District provides credit cards to employees of designated classifications for the preliminary purposes of emergency, travel, necessity, and expediency. This purchasing policy pertains to credit card purchasing Bidding and Quotation Procedures: Informal and Formal Competitive written bid and/or oral quotation Except as otherwise provided in this policy, hiring of work, construction, and other services, and purchases of supplies and equipment shall be by competitive bidding (the written submission of prices by individuals or firms competing for a contract, privilege, or right to do work or supply merchandise or services), or solicited oral quotation pursuant to the procedures established by this policy. Bidding shall not be required in any of the following instances: a. Emergencies: although exempt from competitive bidding, emergency purchases are subject to provisions of Purchasing Authority When the commodity can be obtained from only one vendor (sole source b. vendors) When the total amount involved is five thousand dollars ($5,000.00) or C. less. d. Purchases from other public agencies or joint purchasing authority. Informal Quotation Except as provided work, services and purchases of an estimated value of between five thousand dollars ($5,000.00) and ten thousand dollars ($10,000.00), shall be made by the purchasing officer pursuant to the procedure prescribed in this section. a. Costs of work, services, and purchases shall, whenever possible, be based upon at least three (3) independent quotations, if three quotations can be obtained, and shall be awarded to the lowest responsible party as determined by the purchasing officer. b. The purchasing officer shall solicit bids or quotations by written request, by telephone, by fax, advertising, or by notice posted on a public bulletin bord at the administrative office or by any combination of these methods. Formal contracts shall be executed as needed. Informal Quotation Except as otherwise provided in this policy, work, services, and purchases, and obtaining construction and other services, of an estimated value of ten thousand dollars ($10,000.00) or more shall be by written contract with the lowest responsible bidder pursuant to the procedures prescribed in the following manner. Reference CA Public Contract Code. Attachment /F4 Notice of inviting bids (a) Notices inviting sealed bids shall include a general description of the article(s) or services(s) to be purchased or supplied, shall state where bid forms and specifications may be obtained, and the time and place for opening bids. The notice shall specify the amount and form of bidder's security if required. The notice shall state that bids shall be submitted, and contracts awarded pursuant to the provisions of this policy and any resolution setting forth other applicable rules and regulations. The notice shall state that the board may reject any and all bids. (b) Notices inviting bids shall be published at least once in a newspaper of general circulation printed and published in the County of Nevada. A notice shall also be posted on public bulletin board at the administration office. This does not preclude, when deemed advantageous, the additional use of metropolitan newspapers and trade publications. Bidder List, Security In all transactions where sealed bids are required, the purchasing officer may (a) require the bidder's security and specify the amount and form thereof in the call for bids. District council may review any such security requirements. (b) The deposit of the successful bidder shall be held to secure the capacity, readiness, and willingness of the successful bidder to execute the contract. The deposits of the unsuccessful bidders shall be returned within ten (10) days following the bid award. The successful bidder shall forfeit the deposit of bid security upon refusal or failure to execute the contract within ten (10) days of notice of award of contract. (c) The Board may, on refusal or failure of the successful bidder to execute the contract, award the contract to the next lowest responsible bidder, the district shall apply the successful bidders security to cover the difference between the successful bid and the next lowest responsible bid; and the surplus, if any, shall be forfeited as the reasonable cost to the district of delay and/or administrative cost involved in re- letting the contract. Bid Opening Sealed bids shall be submitted as set forth in the published notice and shall be (a) identified as "bids" on the envelope and opened by the purchasing officer or a designated representative at a time and place stated in the published notice. Sealed bids shall be reviewed by the purchasing officer or a designated representative and a recommendation submitted to the board for approval withing thirty (30) days of its next regularly scheduled meeting after the date on which the bids are opened. A tabulation of all bids received shall be open for public inspection. Bids received after the closing date and time shall be returned unopened to the bidder. Bid Rejection-Re-advertisement Attachment /F4 (a) The Board may, in its discretion, reject any and all bids and may re-advertise for bids pursuant to the procedures contained in this section. Tie Bids (a) If two or more bids are received for the same total amount or unit price and all other applicable considerations are equal, the board may, in its discretion, accept either bid. Performance Bond (a) The district may require bidders to submit a performance bond in such amount as it may find reasonably necessary, as per CA Civil Code §9550, to protect the interests of the district, and the form and amount of such bond shall be specified in the notice inviting bids. Award (a) Except as otherwise provided here, a contract shall be awarded by resolution of the Board of Directors to the lowest responsible bidder as determined by the Board. Special Services and Equipment-Request for Proposals (RFP) Recognizing that acquisition of some goods and services, such as computer and/or telecommunications equipment or professional services, are of such a unique or complex nature that a structured competitive bid process based solely on lowest price would detract from the district's ability to acquire the most appropriate goods or services, the purchasing officer and/or the District Board may determine that it is in the best interest of the District to purchase such goods or services based on criteria other than lowest cost. In such cases, notwithstanding any other provision of this policy, the purchasing officer may prepare RFP's which shall establish the criteria that the District will use in selecting a provider and in purchasing the goods and services. (a) In structuring an RFP, the RFP should include, but is not limited to, the following Company or individual background a. Details of product or services b. Cost C. d. Time of delivery Dollar limits of performance bond, and/or liability insurance request, if e. required f.