Report 2022-120 Recommendation 2 Responses

Report 2022-120: Orange County Power Authority: Increased Board Oversight Is Needed to Improve Its Operations (Release Date: February 2023)

Recommendation #2 To: Orange County Power Authority

To ensure that OCPA acts in its customers' best interests when contracting for services, by September 2023 OCPA's board should strengthen its procurement processes by reminding staff to follow its policy that all new contracts of more than $50,000 should be reported at the next regular board meeting and that all contracts of more than $125,000 should be approved by the board before their execution.

60-Day Agency Response

Since October 2022, all contracts between $50,000 and $125,000 have been reported to the Board. All active contracts exceeding $125,000 have received Board approval. Going forward, staff will continue to seek Board's approval before executing any contracts above $125,000.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

On June 21, 2023, OCPA's board approved a revised version of OCPA's procurement policy. In doing so, it reaffirmed the requirement to report contracts with values above $50,000 to the board at the next regular board meeting. At the same time, the board revised its existing policy to require that all contracts valued at more than $100,000 receive board approval.

All Recommendations in 2022-120

Agency responses received are posted verbatim.