HomeMy WebLinkAboutNot Applicable - 2013-09-03 (2)AJ
Dept. ID 13-007 Page 1 of 2
Meeting Date: 9/3/2013
CITY OF HUNTING ON BEACH
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 9/3/2013
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Lori Ann Farrell, Director of Finance
SUBJECT: Approve for introduction Ordinance No. 3989 amending Huntington Beach
Municipal Code Chapter 3.03 to allow for the approval of Professional Services
contracts beyond a three-year term, on a case -by -case basis, not to exceed five
vears
Statement of Issue:
The Huntington Beach Municipal Code Chapter 3.03 sets forth the procedures for entering into
Professional Services contracts. Currently, professional service agreements may not extend
beyond a term of three years from receipt of the original Request for Proposal (RFP). The
proposed amendment will authorize the City Manager to execute amendments to extend contracts
beyond a three-year term, for a period not to exceed five years, on a case -by -case basis.
Financial Impact:
Not Applicable.
Recommended Action:
Approve for introduction Ordinance No. 3989, "An Ordinance of the City of Huntington Beach
Amending Section 3.03.120 of the Huntington Beach Municipal Code Relating to Existing
Agreements."
Alternative Action(s):
Do not adopt Ordinance No. 3989 and direct staff accordingly.
Analysis:
Huntington Beach Municipal Code Section 3.03.120 governing professional services contracts
prohibits existing agreements from being extended beyond three years without rebidding the
project. Under the existing process, a maximum three-year contract term results in the rebidding of
contracts virtually every two years. It often takes up to six months to update the previous RFP, re-
issue the RFP, establish a panel to review the responses, answer questions posed by the potential
responders, review the responses to the RFP, and select a new vendor. In the event the RFP
process results in a change in vendors, this also impacts the timeline to ensure a smooth and
effective transition between the previous and the new vendor.
This amendment provides the following additional benefits to the City:
• Ensures smooth and efficient continuity of services which would be disrupted by a potential
change in vendors every three years. Extending the contract term may allow for increased
quality of services provided to the City, as vendors gain familiarity with the City's processes;
HB -487- Item 14. - 1
Dept. ID 13-007 Page 2 of 2
Meeting Date: 9/3/2013
• Reduces the amount of time spent issuing new RFPs (in instances where the City is
satisfied with the performance of the current vendor and the pricing is favorable) instead of
re -issuing RFPs every two years to be prepared for the third year expiration;
• Cost savings for the vendor may increase the available pool of qualified bidders, allowing
smaller firms to compete for bids which would otherwise be limited to larger firms.
Increasing the length of contracts such as Architectural Services would be helpful due to
the length of the projects. For example the City uses these services to obtain grants which
typically are programmed for the following year. The design, submittal for permits, bidding
of the contract and services provided during the construction of the contract can take a
couple of years. The ability to extend the contract for certain cases would be beneficial for
expediting these types of contracts and finishing projects with one firm.
Please note that all contracts originally approved by the City Council will still require City Council
approval for any proposed contract amendments, as will any amendments where the revised
contract value will exceed $100,000. The Finance Department will examine Departmental requests
for contract extensions on a case -by -case basis to promote savings and cost efficiencies to the
greatest extent possible.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Improve Long Term Financial Sustainability
Attachment(s):
1. Ordinance No. 3989, "An Ordinance of the City of Huntington Beach Amending Section
3.03.120 of.the Huntington Beach Municipal Code Relating to Existing Agreements."
Item 14. - 2 xB -488-
ATIIACHMENT #1
ORDINANCE NO. ?989
AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH
AMENDING SECTION 3.03.120 OF THE HUNTINGTON BEACH MUNICIPAL
CODE RELATING TO EXISTING AGREEMENTS
The City Council of the City of Huntington Beach does hereby ordain as follows:
SECTION 1. Section 3.03.120 of the Huntington Beach Municipal Code is hereby
amended to read as follows:
3.03.120 Existing agreements. The terms and conditions of any existing professional services
agreement may be modified so as to increase or decrease the term, compensation, scope of work
or otherwise, by mutual agreement of the City and the consultant selected. The City Manager
may authorize, in writing, that professional service agreements be amended to extend an
agreement beyond three years from receipt of the original request for proposals, not to exceed
four years, without compliance with the bid procedure established by Huntington Beach
Municipal Code Section 3.03.060. Any amendments as provided herein must comply with all
other requirements of the City Charter, this Chapter, Administrative Regulations and municipal
corporation contracting laws.
SECTION 2. This ordinance shall become effective 30 days after its adoption.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 16th day of September , 2013.
ATTEST:
LA-ity Clerk
REVIE41 DIAND APPROVED:
ny. panager
APpPROVEP AS TO FORM:
11 It
7,or3
City Attorney
Finance Director
13-3794/97690
Ord. No. 3989
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS:
CITY OF HUNTINGTON BEACH )
I, JOAN L. FLYNN, the duly elected, qualified City Clerk of the City of
Huntington Beach,. and ex-officio Clerk of the City Council of said City, do hereby
certify that the whole number of members of the City Council of the City of Huntington
Beach is seven; that the foregoing ordinance was read to said City Council at a Regular
meeting thereof held on September 3, 2013, and was again read to said City Council at a
Regular meeting thereof held on September 16, 2013, and was passed and adopted by
the affirmative vote of at least a majority of all the members of said City Council.
AYES: Sullivan, Hardy, Harper, Boardman, Carchio, Shaw, Katapodis
NOES: None
ABSENT: None
ABSTAIN: None
I, Joan L. Flynn, CITY CLERK of the City of Huntington
Beach and ex-officio Clerk of the City Council, do hereby
certify that a synopsis of this ordinance has been
published in the Huntington Beach Fountain Valley
Independent on September 26, 2013.
In accordance with the City Charter of said City
Joan L. Flynn, City Clerk
Senior Deputy City Clerk
CitClerk and ex-officio CUrk
of the City Council of the City
of Huntington Beach, California
Ordinance No. 3989
LEGISLATIVE DRAFT
CHAPTER 3.03
PROFESSIONAL SERVICES
(2047-5/76, 2464-12/80, 2590-1 /83, 2945-7/88, 3097-4/91, 3375-11 /97, 3511-10/01, 3604-06/03, 3734-05/06, 3853-2/10,
3878-5/10, 3914-6/11)
Sections:
3.03.010 (Repealed, 3 511-10/01)
3.03.020 Definitions
3.03.030 (Repealed, 2590-1/83)
3.03.040 Selection guidelines
3.03.050 (Repealed, 2590-1/83)
3.03.060 Procedure
3.03.070 (Repealed, 2590-1/83)
3.03.080 Exempt and emergency procedures
3.03.090 (Repealed, 3 511 A 0/01)
3.03.100 Authorization by Department Directors
3.03.110 (Repealed, 3 511-10/01)
3.03.120 Existing agreements
3.03.020 Definitions.
(a) "Consultant" means any provider of services under this Chapter as an individual,
partnership, corporation or otherwise. (2047-5/76, 2590-1/83)
(b) "Director" means the Department Head or his/her designee as approved by City Council
resolution, vested with the authority to administer the provisions of this Chapter with
respect to contracting for services. (2047-5/76, 2590-1 /83, 3511-10/01, 3604-6/03)
(c) "Professional Services" means those services, which involve the exercise of professional
discretion and independent judgment based on an advanced or specialized knowledge,
expertise or training gained by formal studies or experience or services which are not readily
or efficiently procured by competitive bidding pursuant to Huntington Beach Municipal Code
Section 3.02. Such services shall include but not be limited to those services provided by
appraisers, architects, attorneys, engineers, instructors, insurance advisors, physicians and
other specialized consultants. (2047-5/76, 2590-1 /83, 3375-1 1 /97, 351 1-10/01)
3.03.040 Selection guidelines. In all cases, the final selection of a consultant shall include
consideration of the following factors:
(a) Actual capability to complete the project in conformance with the specifications,
conditions and other requirements of the City of Huntington Beach;
(b) Demonstrated ability to prepare professional, accurate and timely -finished products
irrespective of unusual or difficult circumstances.
(c) A reasonable contract price in relation to the size, quality and time restraints of the proposed
project with due consideration of competitive proposals. (2047-5/76)
(d) Consultant status will be verified through State and Federal registries to identify
debarment, suspension, ineligibility or voluntary exclusion actions. (3878-5/10)
Huntington Beach Municipal Code Chapter 3.03 Page 1 of 3
6/15/11
(e) Businesses within the City of Huntington Beach will receive up to five (5) extra
points on a 100-point scale when scoring proposals pursuant to this Chapter, as local
vendor preference. (3914-6/11)
3.03.060 Procedure. The procedure for the contracting of services is as follows:
(a) The Director of the department primarily responsible for the particular project shall prepare a
written statement defining the necessity and scope of the project, and submit it to the Director
of Finance. Upon approval by the City Administrator and the Director of Finance, the
Director shall prepare a written statement of the specifications, conditions and other
requirements for the requested services and provide a copy to consultants who may wish to
perform the service. (3734-05/06, 3853-2/10)
(b) Except as identified in Section 3.03.080, the Director, or his/her designee, shall request
written proposals from not less than three (3) available qualified consultants. He shall
thereafter conduct discussions with them regarding the project if such discussions are
indicated by the complexity of the project, and based upon the selection guidelines
established in section 3.03.040 and the criteria established by him/her, select the consultant
from the responsible proposals submitted to him, deemed to be the most highly qualified to
provide the services required. (3734-05/06, 3853-2/10)
(c) If the procurement has been budgeted, contractual agreement shall be negotiated with the
consultant subject to final approval as to form by the City Attorney, and as to content by the
City Administrator. (3375-11/97, 3511-10/01)
(d) If the procurement has not been budgeted, then the Director shall prepare a request for
appropriation for the City Administrator to submit to the City Council in the usual prescribed
manner.
(e) The City Attorney shall counsel and advise City officials in the implementation of this
Chapter. (2047-5/76, 2590-1/83)
3.03.080 Exempt and emer$!ency procedures. The need for certain budgeted and emergency
and exempted procurements are recognized.
(a) An emergency shall be deemed to exist if:
1. There is a great public calamity; (3511-10/01)
2. There is immediate need to prepare for national or local defense; (3511-10/01)
3. There is a breakdown in machinery or an essential service which requires the immediate
attention of a professional in order to protect the public health, safety or welfare;
(3511-10/01)
4. An essential, departmental operation affecting the public health, safety or welfare would
be greatly hampered if the prescribed procedure would cause an undue delay in the
procurement of the needed services. (2047-5/76, 3511-10/01)
In the case of an emergency which requires the immediate retention of a professional consultant,
the City Administrator may authorize the Department Director to secure by the open -market
procedure, at the lowest obtainable price consistent with professional standards, any professional
service regardless of the amount of the expenditure. (3511-10/01)
(b) Other interagency Agreements. Procurements utilizing contractual agreements
maintained by other public agencies for the provision of professional services to such
Huntington Beach Municipal Code Chapter 3.03 Page 2 of 3
6/15/11
agencies are exempt from the requirements of this Chapter except that the provisions of
Section 3.03.060(c) shall apply in every case and so long as such other agency complied
with its own professional services contract requirements as approved by the Department
Director. (3375-11/97, 3511-10/01)
(c) All contracts for performance of professional services for the City which exceed $30,000
shall be awarded in accordance with the procedures of this code. All contracts for
professional services which do not exceed $30,000, with prior approval of the Director of
Finance or his/her designee, may be let without competitive bidding or negotiation.
(3734-05/06, 3853-2/10)
3.03.100 Authorization by Department Directors. The Director of any department for which
such services are required may contract directly for any professional services when procurement
of such services has been budgeted and there are sufficient unencumbered appropriated funds
available, or wherein the cost of which will be fully paid or reimbursed to the City. The annual
budget for the fiscal year in which the agreement is entered into shall provide a general
description of the work to be performed. (2047-5/76, 2945-7/88, 3375-11/97, 3511-10/01)
The complete original of the executed agreement and the names of the consultants who submitted
proposals shall be forwarded to the City Clerk. A complete copy of all approved insurance
certificates and subsequent renewals shall be filed with the Risk Manager. (3511-10/01)
3.03.120 Existing agreements. The terms and conditions of any existing professional services
agreement may be modified so as to increase or decrease the term, compensation, scope of work
or otherwise, by mutual agreement of the City and the consultant selected. 14owevef, at Be time
shall The City Manager may authorize, in writing, that professional service agreements be
amended to extend an agreement beyond three years from receipt of the original request for
proposals, not to exceed four years, without compliance with the bid procedure established by
Huntington Beach Municipal Code Section 3.03.060. Any amendments -as -provided herein must
(2390-9/79, 3511-10/01)
Huntington Beach Municipal Code Chapter 3.03 Page 3 of 3
6/15/11
ORDINANCE NO. 3989
AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH
AMENDING SECTION 3.03.120 OF THE HUNTINGTON BEACH MUNICIPAL
CODE RELATING TO EXISTING AGREEMENTS
The City Council of the City of Huntington Beach does hereby ordain,as follows:
SECTION 1. Section 3.03.120 of the Huntington Beach Municipal Code is hereby
amended to read as follows:
3.03.120 Existing agreements. The terms and conditions of any existing professional services j
agreement may be modified so as to increase or decrease the term, compensation, scope of work
or otherwise, by mutual agreement of the City and the consultant selected. The City Manager
may authorize, in writing, that professional service agreements be amended to extend an
agreement beyond three years from receipt of the original request for proposals, not to exceed
five'years, without compliance with the bid procedure established by Huntington Beach
Municipal Code Section 3.03.060. Any amendments as provided herein must comply with all
other requirements of the City Charter, this Chapter, Ad inistrative Regulations and municipal
corporation contracting laws.
SECTION 2. This ordinance shall become effective 30 days after its adoption.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the / day of , 2013.
ATTEST:
City Clerk
REVIEWED AND APPR
City Manager
Mayor
PPROVED AS TO FO
,0—� --)�4
\Ij
City Attorney
INIT ATED AND APPROVED: v
Finance Director
' U0.
13-3794/97690
Ordinance No. 3989
LEGISLATIVE DRAFT
CHAPTER 3.03
PROFESSIONAL SERVICES
(2047-5176, 2464-12/80, 2590-1/83, 2945-7/88, 3097-4/91, 3375-11/97, 3511-10/01, 3604-06/03, 3734-05/06, 3853-2/10,
3878-5/10, 3914-6/11)
Sections:
3.03.010
(Repealed, 3511-10/01)
3.03.020
Definitions
3.03.030
(Repealed, 2590-1/83)
3.03.040
Selection guidelines
3.03.050
(Repealed, 2590-1/83)
3.03.060
Procedure
3.03.070
(Repealed, 2590-1/83)
3.03.080
Exempt and emergency procedures
3.03.090
(Repealed, 3 511-10/01)
3.03.100
Authorization by Department Directors
3.03.110
(Repealed, 3 511-10/01)
3.03.120
Existing agreements
3.03.020 Definitions.
(a) "Consultant" means any provider of services under this Chapter as an individual,
partnership, corporation or otherwise. (2047-5/76, 2590-1/83)
(b) "Director" means the Department Head or his/her designee as approved by City Council
resolution, vested with the authority to administer the provisions of this Chapter with
respect to contracting for services. (2047-5/76, 2590-1 /83, 3511-10/01, 3604-6/03)
(c) 'Professional Services" means those services, which involve the exercise of professional
discretion and independent judgment based on an advanced or specialized knowledge,
expertise or training gained by formal studies or experience or services which are not readily
or efficiently procured by competitive bidding pursuant to Huntington Beach Municipal Code
Section 3.02. Such services shall include but not be limited to those services provided by
appraisers, architects, attorneys, engineers, instructors, insurance advisors, physicians and
other specialized consultants. (2047-5/76, 2590-1/83, 3375-11/97, 3511-10/01)
3.03.040 Selection guidelines. In all cases, the final selection of a consultant shall include
consideration of the following factors:
(a) Actual capability to complete the project in conformance with the specifications,
conditions and other requirements of the City of Huntington Beach;
(b) Demonstrated ability to prepare professional, accurate and timely -finished products
irrespective of unusual or difficult circumstances.
(c) A reasonable contract price in relation to the size, quality and time restraints of the proposed
project with due consideration of competitive proposals. (2047-5/76)
(d) Consultant status will be verified through State and Federal registries to identify
debarment, suspension, ineligibility or voluntary exclusion actions. (3878-5/10)
Huntington Beach Municipal Code Chapter 3.03 Page 1 of 3
6/15/11
(e) Businesses within the City of Huntington Beach will receive up to five (5) extra
points on a 100-point scale when scoring proposals pursuant to this Chapter, as local
vendor preference. (3914-6/11)
3.03.060 Procedure. The procedure for the contracting of services is as follows:
(a) The Director of the department primarily responsible for the particular project shall prepare a
written statement defining the necessity and scope of the project, and submit it to the Director
of Finance. Upon approval by the City Administrator and the Director of Finance, the
Director shall prepare a written statement of the specifications, conditions and other
requirements for the requested services and provide a copy to consultants who may wish to
perform the service. (3734-05/06, 3853-2/10)
(b) Except as identified in Section 3.03.080, the Director, or his/her designee, shall request
written proposals from not less than three (3) available qualified consultants. He shall
thereafter conduct discussions with them regarding the project if such discussions are
indicated by the complexity of the project, and based upon the selection guidelines
established in section 3.03.040 and the criteria established by him/her, select the consultant
from the responsible proposals submitted to him, deemed to be the most highly qualified to
provide the services required. (3734-05/06, 3853-2/10)
(c) If the procurement has been budgeted, contractual agreement shall be negotiated with the
consultant subject to final approval as to form by the City Attorney, and as to content by the
City Administrator. (3375-11/97, 3511-10/01)
(d) If the procurement has not been budgeted, then the Director shall prepare a request for
appropriation for the City Administrator to submit to the City Council in the usual prescribed
manner.
(e) The City Attorney shall counsel and advise City officials in the implementation of this
Chapter. (2047-5/76, 2590-1/83)
3.03.080 Exempt and emergency procedures. The need for certain budgeted and emergency
and exempted procurements are recognized. y,
A C
(a) An emergency shall be deemed to exist if: JI
1. There is a great public calamity; (3511-10/01) A
2. There is immediate need to prepare for national or local defense; (3511-10/01)
There is a breakdown in machinery or an essential service which requires the immediate
attention of a professional in order to protect the public health, safety or welfare;
(3511-10/01)
4. An essential, departmental operation affecting the public health, safety or welfare would
be greatly hampered if the prescribed procedure would cause an undue delay in the
procurement of the needed services. (2047-5176, 3511-10/01)
In the case of an emergency which requires the immediate retention of a professional consultant,
the City Administrator may authorize the Department Director to secure by the open -market
procedure, at the lowest obtainable price consistent with professional standards, any professional
service regardless of the amount of the expenditure. (3511-10/01)
(b) Other interagency Agreements. Procurements utilizing contractual agreements
maintained by other public agencies for the provision of professional services to such
Huntington Beach Municipal Code Chapter 3.03 Page 2 of 3
6/15/11
agencies are exempt from the requirements of this Chapter except that the provisions of
Section 3.03.060(c) shall apply in every case and so long as such other agency complied
with its own professional services contract requirements as approved by the Department
Director. (3375-11/97, 3511-10/01)
(c) All contracts for performance of professional services for the City which exceed $30,000
shall be awarded in accordance with the procedures of this code. All contracts for
professional services which do not exceed $30,000, with prior approval of the Director of
Finance or his/her designee, may be let without competitive bidding or negotiation.
(3734-05/06, 3853-2/10)
3.03.100 Authorization by Department Directors. The Director of any department for which
such services are required may contract directly for any professional services when procurement
of such services has been budgeted and there are sufficient unencumbered appropriated funds
available, or wherein the cost of which will be fully paid or reimbursed to the City. The annual
budget for the fiscal year in which the agreement is entered into shall provide a general
description of the work to be performed. (2047-5/76, 2945-7/88, 3375-11/97, 3511-10/01)
The complete original of the executed agreement and the names of the consultants who submitted
proposals shall be forwarded to the City Clerk. A complete copy of all approved insurance
certificates and subsequent renewals shall be filed with the Risk Manager. (3511-10/01)
3.03.120 Existing agreements. The terms and conditions of any existing professional services
agreement may be modified so as to increase or decrease the term, compensation, scope of work
or otherwise, by mutual agreement of the City and the consultant selected. He Pei=ef, atnet
shall The City Manager may authorize, in writing, that professional service agreements be
amended to extend an agreement beyond three years from receipt of the original request for
proposals, not to exceed five years, without compliance with the bid procedure established by
Huntington Beach Municipal Code Section 3.03.060. Any amendments as provided herein must
comply with all other requirements of the City Charter. this Chapter. Administrative Regulations
and municipal corporation contracting laws. (2390-9/79, 3511-10/01)
W 1
AN
Huntington Beach Municipal Code Chapter 3.03 Page 3 of 3
6/15/11