Loading...
HomeMy WebLinkAboutApprove for introduction Ordinance No. 4080 amending the Hun Dept ID FN16-001 Page 1 of 3 Meeting Date 6/20/2016 CITY OF HUNTINGTON BEACH ,r3.,, . REQUEST FOR CITY COUNCIL ACTION r 1 MEETING DATE: 6/20/2016 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A Wilson, City Manager PREPARED BY: Lori Ann Farrell Harrison, Chief Financial Officer SUBJECT: Approve for introduction Ordinance No 4080 amending the Huntington Beach Municipal Code (HBMC) by adding Chapter 8 61 regarding procurement during a declared or proclaimed Emergency or Disaster to ensure compliance with Federal Regulations Statement of Issue City Council authorization is requested to adopt Chapter 8 61 of the Municipal Code related to disaster and emergency purchasing to help ensure the City of Huntington Beach complies with Federal regulations for disaster and emergency cost recovery Financial Impact This policy will help the City to comply with Federal regulations in an effort to maximize reimbursement for costs incurred during an emergency, if eligible Recommended Action Approve for Introduction Ordinance No 4080, "An Ordinance of the City of Huntington Beach Amending the Huntington Beach Municipal Code by Adding New Chapter 8 61 Thereto Related to Purchasing During a Proclaimed Emergency or Disaster " Alternative Action(s) Do not approve the recommended action and direct staff accordingly Analysis The City's standard purchasing policies are outlined in Municipal Code Chapters 3 02 and 3 03 These policies provide direction on the requirements of noticing, formal and informal bids, and awards During normal operations, purchasing needs are typically non-urgent and known in advance and the standard purchasing process is adequate and appropriate to meet such needs The proposed ordinance will modify the City Code to strengthen procurement procedures, improve controls to the procurement process, and better align purchasing procedures during a declared emergency or disaster with Federal regulations By reviewing and updating our procedures we can improve alignment with the most recent updates to federal regulations and help ensure reimbursement of costs by the Federal Emergency Management Administration (FEMA) ' The proposed ordinance will only be utilized during an officially declared or proclaimed disaster Providing definition to what constitutes an emergency is the first step in the development of a disaster ordinance An emergency can be declared Federally, by the State, or by the City Council If the City Council is not available, the City Manager as the Director of Emergency Management HB -595- Item 20. - 1 Dept ID FN16-001 Page 2 of 3 Meeting Date 6/20/2016 may proclaim an emergency as stated in HBMC 8 60 070 A The City Manager's proclamation must be ratified by the City Council within seven days thereafter or it shall have no further effect These requirements are not altered by the proposed ordinance The proposed ordinance will trigger the requirement for the City to adhere to the emergency purchasing procedures LIMITS It is important to establish emergency procurement and purchasing policies prior to an emergency to ensure that procurement costs are reasonable, well documented and comply with FEMA regulations FEMA requires that any procurement made by the City during a declared or proclaimed emergency or disaster be conducted in accordance with federal, state, and local procurement procedures, whichever is stricter This would require the City to adhere to its current procurement policy, yet the City's current procurement procedures are not well suited for dealing with emergency situations A review of the emergency procurement policies of other agencies, such as the County of Los Angeles, the City of San Francisco, and the City of Oakland, show that during an emergency their administration is allowed to purchase any urgently needed good or service without regard to dollar amount or prior approval by a governing body The City of Long Beach recently approved a disaster ordinance that sets approval authority at a maximum of $1 million during a declared or proclaimed emergency The City of Huntington Beach's proposed ordinance includes emergency purchasing limits that are higher than those during normal city operations, but are also capped The proposed ordinance will establish procurement procedures with alternative dollar limits that will only be utilized during a declared or proclaimed emergency or disaster, thus establishing limits in addition to providing improved coordination with the updated federal guidelines During normal operations, acquisition of new items is limited to the specific items included in the approved budget The City Manager may authorize changes to the procurement of specific items as long as the total appropriation for any department, fund or agency is not exceeded The City Manager, or designee, has general emergency powers to obtain vital goods and services needed for the protection of life and property during an emergency The proposed ordinance would provide additional detail to those powers by giving the City Manager, or designee, immediate authority to make purchases related to a declared or proclaimed emergency up to $500,000 Any purchase that exceeds $500,000 will require the approval of the Mayor, the Mayor Pro Tern or, in their absence, another City Councilmember The proposed ordinance also delegates purchasing authority to the Chief Financial Officer or designee up to the Federal Simplified Acquisition Threshold currently $150,000 as defined by FEMA The proposed policy changes to the delegation of authority and increased dollar thresholds will strengthen the City's procurement policy while minimizing delays in procuring of critically needed equipment and other items during an emergency or disaster (e g heavy equipment or machinery for extensive debris removal, etc) The ordinance will also strengthen the City's response capability and provide the necessary flexibility to swiftly initiate disaster related purchases to protect life, property, and critical infrastructure such as the City's extensive network of water mains, sewer lines and road infrastructure The thresholds will apply only to purchases related to an officially declared or proclaimed emergency pursuant to FEMA guidelines The proposed ordinance will also help ensure that Federal funds are not de-obligated due to the City's unintentional non-compliance with Federal procurement guidelines during a disaster or emergency PURCHASING BID REQUIREMENTS The proposed ordinance will allow for stronger procurement procedures and include better controls to the procurement processes during a disaster The proposed ordinance allows for expedited procurement procedures in an emergency During an emergency it may not be possible or practical Item 20. - 2 FIB -596- Dept ID FN16-001 Page 3 of 3 Meeting Date 6/20/2016 to follow the City's standard bidding or RFP requirements The ordinance allows shortened timeframes and modified requirements related to competitive procurements consistent with Federal guidelines Competitive procurements will still be required for certain purchases made under this ordinance In most cases, Departments will still be required to obtain three or more quotes to ensure competitive pricing or sealed bids above the Federal Simplified Acquisition Threshold and shall be conducted in accordance with the City's standard procurement process Any purchases that do not meet the standard of being necessary for responding to an Immediate threat to public health, life safety or Improved property shall follow the City's standard procurement process When a noncompetitive procurement is used due to Public Exigency or Emergency, the procurement shall be limited to that portion of the work that must be performed immediately Procurement for any additional work shall be conducted through competitive procurement procedures The proposed ordinance will require the City Manager to present a report summarizing all expenditures made and contracts executed in response to the emergency Periodic reports shall be generated at the direction of the City Council until the emergency has concluded It is imperative that procedures specific to emergencies be added to the city's procurement process The proposed ordinance will strengthen procedures and align them with federal regulations which will help ensure reimbursement of costs by FEMA In the event of an emergency or disaster, the City most certainly will encounter immediate threats to safety, health, and property The purchasing needs of the City may also be met with increased volatility and exigency over normal operations A swift response will help mitigate these threats and allow the City to quickly restore itself normal operations The City needs to establish effective alternative purchasing procedures to appropriately respond to these urgent unanticipated needs that may threaten the public, the City's infrastructure, and our response capabilities Environmental Status Not Applicable Strategic Plan Goal Improve Quality of Life Strengthen Economic and Financial Sustainability Enhance and Maintain Public Safety Attachment(s) 1 Ordinance No 4080, "An Ordinance of the City of Huntington Beach Amending the Huntington Beach Municipal Code by Adding New Chapter 8 61 Thereto Related to Purchasing During a Proclaimed Emergency or Disaster" 2 Legislative Draft xB -597- Item 20. - 3 ORDINANCE NO 40,80 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH AMENDING THE HUNTINGTON BEACH MUNICIPAL CODE BY ADDING NEW CHAPTER 8 61 THERETO RELATED TO PURCHASING DURING A PROCLAIMED EMERGENCY OR DISASTER The City Council of the City of Huntington Beach does hereby ordain as follows SECTION 1. The Huntington Beach Municipal Code is hereby amended to add new Chaptei 8 61 entitled "Purchasing Duiing a Pioclaimed Emeigency of Disaster" to read as follows 8 61 010 Purpose 8 61 020 Definitions 8 61 030 Delegations of Purchasing Authority in Exigent Circumstances 8 61 040 Procuiernent Procedures in Exigent Circumstances 8 61 050 Notification and Ratification u 8 61 010 Purpose This ordinance is created to modify the City's regular purchasing practices to assure that the City is able to acquire necessary goods and services while maintaining a purchasing process in compliance with applicable purchasing laws when an Emeigency of Disaster is proclaimed This otdrnance assures that if the City is included in a Fedetal Emergency or Disaster as declared by the President of the United States, the City piocutements comply with Federal regulations applicable to FEMA disaster grant reimbursement 8 61.020 Definitions A "Proclaimed Emetgency or Disaster" as defined in this Section means 1 The President or Goveinot has declared of proclaimed a State of Emeigency for an area that includes the geographic teniitoiy of the City, or 2 The City Council, the City Managet, of the Ditector of Emetgency Management (as defined in the Huntington Beach Municipal Code) of the City has proclaimed an emeigency in the City B "Exigent Circumstances" as defined in this Section means. 1 An Emeigency on Disaster has been proclaimed by local, State, of Federal authotities, and 16-5260/136856/PD 1 urainauc-C 1.... ---- 2 The City's immediate need foi goods of services to address imminent threats to public health, life safety, or improved piopeity will not permit competitive bidding C "Simplified Acquisition Threshold" as defined in this Section means 1 The dollar amount below which a non-Fedeia] entity may put chase goods of services using small purchase methods, as set forth in Title 2 of the Code of Fedetal Regulations, Part 200, as it may be amended fiom time to time 8 61 030 Delegation of Purchasing Authority in the event of Exigent Circumstances A If the City Managet determines that goods and services must be procured before the City Council is able to meet and approve purchases, the City Manager has authority, subject to the ]imitations set forth in this chapter, to contract for, purchase or rent of lease any equipment, supplies, services or other items necessary to respond to an immediate tlueat to health, r safety, or property B The City Manager has the authority to delegate to the Chief Financial Officer, or his/her designee, the authority to rent, lease, or purchase any equipment, supplies, services, or other items necessary to respond to an immediate threat to health, safety, or improved property, up to a maximum of The Simplified Acquisition Threshold, following procedures in Section 8 61 040 C The City Manager of his of her designee has the authority to approve Purchases up to five hundred thousand dollars ($500,000, following the procedures in Section 8 61 040 D Purchases that exceed five hundred thousand dollars ($500,000) requie the approval of the Mayor, the Mayor Pro Tem or, in their absence, another City Councilmembet E Admimstiative Procedures and Repoiting Requirements 1 As soon as possible after purchases are made under this section 8 61 030, the City Managet, or authorized Department Head shall submit to the Chief Financial Officer or designee a requisition and a notation that the commodity has been ordered on an Emergency basis fiorn the vendor designated 2 The Chief Financial Officer or designee will inform the City Manager and the City Council of any individual purchase under this Section with a contract amount greater than The Simplified 16-5260/136856/PD 2 Acquisition Tleshold, and also whenever the aggregate of purchases under this Section is gieatei than $1,000,000 3 The Chief Financial Officer of designee will expedite the verification of funds available and complete the piepaiation of the purchase order 8 61 040 Procurement procedures during a Proclaimed or Declaied Emergency of Disaster A The regulations in Title 2 of the Code of Federal Regulations, pact 200, as it may be amended from time to time, aie incorporated herein by reference B Procedures foi Competitive Piocuiements 1 Competitive piocuienients foi Purchases below the Simplified Acquisition Threshold shall not be requited to be formally bid 2. Competitive piocuiements foi Purchases equal to or exceeding the Simplified Acquisition Tleshold shall be conducted in accordance with the City's standard procurement process. C Piocedwes foi Non-Competitive Piocuiements 1 Noncompetitive procui ements may be used when one of moi e of the following circumstances exist a Public Exigency of Emergency will not permit a delay iesulting from competitive procuienient, b The item is available only fiom a single source, c Aftei solicitation of a number of sources, competition is deteimmed inadequate, or d The Federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request fiom the non-Federal entity 2 The authorized purchasei shall document the justification foi noncompetitive procurement in accordance with established procedures 16-5260/136856/PD 3 VLU_LUa UU Phu. 4uou 3 When a noncompetitive procurement is used due to Public Exigency or Emeigency, the procuiement shall be limited to that portion of the work that must be peifoimed immediately Procurement for any additional work shall be conducted through competitive pi ocur ement procedui es 8 61 050 Notification and Ratification A Posting of Contract Awaids Under this Section, all contracts awarded that exceed The Simplified Acquisition Threshold shall be presented to the City Council at the next practicable opportunity for ratification and theieaftei shall be publicly posted within sixty (60) days of the award B Authority to Cancel Emergency Procuiements As a provision of this Ordinance, the City Managei is delegated the authority to rescind a contract for non-performance within 24 hours when a contractor or vendor, once awarded a contract, is unable to peifoim under the terms of the coati act and the i esulting delay on non-performance presents an immediate threat to life, safety or improved property C Requirement for Sepaiate Invoicing All purchases rentals, on leases made during a Declared or Proclaimed Emeigency on Disastei conditions shall requne separate invoicing fiom noutme (non-disaster or non-emergency related) purchases All invoices shall state the goods, services, or equipment provided and shall specify where the goods or services were delivered D Auditing of Invoices foi Debris Cleaiance Prior to Payment All invoices foi debris clearance and removal shall be audited by the City prior to payment to the vendor Vendors shall be notified of this requitement piioi to the awarding of any contract for debits clearance and/or removal Audits shall be in accordance with procedures foi debris removal monitoring specified in FEMA's Publication 325, Debi is Management Guide E Limitations of Ploclanmed Emelgency or Disaster Purchasing Policy Any purchases that do not meet the standard of being necessary for nespondrng to an immediate threat to public health, life safety or improved property shall follow the Cnty's regular purchasing provisions F Within the procedures and limits set forth in this ordinance for purchasing during a proclaimed emergency or disaster, whenever possible, contracts for dollar amounts in excess of The Simplified Acquisition Threshold shall be, when feasible, broken into a contract for the immediately required work to meet the emergency conditions, and a separate contract 16-5260/136856/PD 4 VL LL111 Q11�.0 aw.. FVOV foi any amount exceeding The Simplified Acquisition Tlueshold, when that portion of the work exceeding The Simplified Acquisition Threshold is not required to meet the emergency conditions which present an imminent threat to life safety, the public health of improved property That portion of the contract in excess of The Simplified Acquisition Threshold and not immediately needed to meet the emei gency conditions shall be procured following the City's normal purchasing policy and the Federal procurement regulations to Title 2 of the Code of Federal Regulations, Part 200, which iequiie sealed bids or proposals for contracts in excess of The Simplified Acquisition Thieshold SECTION 2. That this Oidinance shall become effective thirty (30) days after its adoption PASSED AND ADOPTED by the City Council of the City of Huntington Beacli at a iegulai meeting thereof held on July 05 , 2016 6 0-6 4ow�* May ATTEST ) APPROVE O FORM Ci Clerk it Attoiney Atl REVIEW APPROVED INWATED AND APPROVED City ma er Chief Financial Office 16-5260/136856/PD 5 Ord. No. 4080 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS: CITY OF HUNTINGTON BEACH ) I, ROBIN ESTANISLAU, the duly appointed, 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 June 20, 2016, and was again read to said City Council at a Regular meeting thereof held on July 5,2016, and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council AYES: Posey, O'Connell, Sullivan, Katapodis, Hardy, Delgleize, Peterson NOES: None ABSENT: None ABSTAIN: None I,Robin Estanislau,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 Wave on July 14,2016 In accordance with the City Charter of said City V Robin Estanislau, City Clerk City Clerk and ex-officio Clerk Senior Deputy City Clerk of the City Council of the City of Huntington Beach, California Ordinance No. 4080 LEGISLATIVE DRAFT Chanter 8.61 61 Puichasin During a Proclaimed Emergency or Disaster 8 61.010 Pur1Le 8.61020 Definitions 8 61 030 Delegations of Purchasing Autho rtv in Exigent Circumstances 8 61.040 Procurement Piocedwes in Exigent Circumstances 8 61 050 Notification and Ratification 61.010 Pwpose This ordinance is created to modify the City's regular pulchasing practices to assure that the City is able to acquire necessary goods and services while maintaining a purchasing piocess in compliance with applicable purchasing laws when an meigency or Disaster is proclaimed This ordinance assures that if the Crtv is included in a Federal Emergency of Disastei as declared by the President of the United States, the City pi ocui ements comply with Fedei al_i eg_u_lations_applicable to FEMA disaster gr ant reimbui sement 8 61.020 Definitions. A. 'Proclaimed Emergency or Disaster" as defined in this Section means- 1. The President or Governoi has declared or proclaimed a State of Emergency for an area that includes the geographic tenitory of the Crt r 2 The City Council, the Crtv Manager, or the Duector of Emergency Management (as defined in the Huntington Beach Municipal-Code of the Crtv has proclaimed an emergency in the City B "Exigent Circiunistances" as defined in this Section means 1 An Emergency or Disastei has been proclaimed by local, State, or Federal authorities, and 2 The City's inunediate need for goods or services to address rnumnent threats to public health, life safety, or improved propeity will not permit competitive bidding C "Simplified Acquisition Threshold" as defined in this Section means 1 The dollar amount below which a non-Federal entity may purchase goods or services using small purchase methods, as set forth in 16-5260/136857/PD 1 Title 2 of the Code of Federal Regulations, Part 200, as rt may be amended from time to time 61.030 Delegation of Purchasing Authority in the event of Exigent Circumstances A If the City Managei determines that goods and services must be procured efoie the City Council is able to meet and approve purcha e . the City Managei has authority, subject to the limitations set forth in the chanter. o contract for, purchase or rent or lease any equipment, supplies, service r other items necessary to respond to an immediate tlueat to health. afety, or property. B The City Manager has the authonty to delegate to the Chief Financial Officer, or his/hei designee, the authority to lent, lease, or purchase any equipment, supplies, services, of other items necessaiv to respond to an immediate tlueat to health safety, or unproved property, up to a maximum of The Simplified Acquisition Tleshold, following roceduies rn ection 40 C The City Manages or his of hen designee has the_authonty to approve Purchases up to five hundred thousand dollars($500.000. _following the procedures in Section 8.61.040 D Purchases that exceed five hundred thousand dollar ( 500 000) ieauire the approval of the Mayor. the Mayor Pio Tern oi, in their absence, another Crtv Councilmember E Administrative Procedures and Reporting Reauuements 1 As soon as possible aftei purchases aie made under this ection 8 61030, the City Manages, of authorized Depaitment Head shall submit to the Cluef Financial Offices of designee a requisition and a notation that the commodity has been ordered on an Emergency basis from the vendor desrZrnated 2 The Chief Financial Officei or designee will inform the Crtv Managei and the Crtv Council of any individual purchase under this Section with a contract amount greater than The Simple red Acquisition Threshold, and also whenever the aggi_egate of purchases under this Section is greater than $1,000,000 3. The Chief Financial Offices or designee will expedite the verification of funds available and complete the preparation of the purchase order 16-5260/136857/PD 2 8 61.040 Procuiement procedwes during a Pioclaimed or Declared Emergency of isa ter A The regulations in Title 2 of the Code of Federal Regulations, wait 200, as it may be amended fiom time to time, are incorporated herein by i efei ence B Procedures foi Competitive Procurements 1 Competitive procurements for Purchases below the Si Acquisition Tleshold shall not be ieauired to be fomnally bid. 2 Competitive procurements for Purchases equal to or exceeding the Simplified Acquisition Threshold shall be conducted in accordance with the City's standard piocurement process C Piocedwes foi Non-Competitive Procurements 1 Noncompetitive procurements may be used when one or mole of the following circumstances exist, a Public Exigency of Emei gencv will not permit a delay resulting from competitive procurement, b The item is available only from a single source, c Aftei solicitation of a number of sowces, competition is determined inadequate, of d The Federal awaiding agency of pass-tluough entity expiessly authoiizes noncompetitive proposals in response to a written ieguest fiom the non-Federal entity 2 The authoiized purchases shall document the justification for noncompetitive procurement in accordance with established procedures 3 When a noncompetitive piocuiement is used due to Public Exigency of Emergency, the procurement shall be limited to that portion of the work that must be peifoimed immediately. Procwement foi any additional work shall be conducted tluough competitive procuiement procedures 16-5260/136857/PD 3 8 61.050 Notification and Ratification A Posting of Contract Awards Under this Section, all contracts awarded that exceed The Simplified Acquisition Threshold shall be presented to the City Council at the next practicable opnortumty for ratification and thereafter shall be publicly posted within sixty (601 days of the award B Authority to Cancel Emergency Procurements. As a piovi ion of this rdinance, the City Manages is delegated the authority-to rescind a contract for non-performance within 24 houis when a contractor or vendor, once awarded a contract, is unable to perform under the terms of the contract and the resultmg delay or non-perfoi7nance presents an immediate tlueat to life, safety or improved property. C. Requirement for Separate Invoicing All purchases rentals or leases made during a Declared or Proclaimed Emergency or Disastei conditions shall ieguire separate invoicing from routine (non-disaster or non-emergency related) pus chases All invoices shall state the goods, services, or equipment provided and shall specify where the goods or services were delivei ed. D. Auditing of Invoices for Debiis Clearance Piioi to Payment All invoices for debris clemanu and removal shall be audited_y the City prloi tQ payment to the vendor. Vendors shall be notified of this requirement prior to the awarding of any contract for debris clearance and/or removal Au hits shall be in accordance with procedures for debris removal monitoring specified in FEMA's Publication 325 Debris Management Guide _ E Limitations of Proclaimed Emergency or Disaster Purchasing Policy Any purchases that do not meet the standard of being necessary for respondirng to an rnumedrate threat to public health, life safety or improved property shall follow the City's regular purchasing provisions F Within the procedures and limits set forth in this ordinance for purchasing during a proclaimed emergency or disaster, whenever possible, contracts for dollar amounts in excess of The Simplified Acquisition Tl eshold shall be, when feasible, broken into a contract for the rrmrmediately r eaurred work to meet the emergency conditions, and a separate contract for any amount exceeding The Simplified Acquisition Threshold. when that portion of the work exceeding The Simplified Acquisition Threshold is not reguned to meet the emergency conditions which present an imminent anent threat to life safety, the public health or improved property 16-5260/136857/PD 4 That portion of the contract in excess of The Simplified Acquisition Threshold and not nrnnediately needed to meet the erneigency conditions hall be procured following the City's normal purchasing policy and the Federal piocurement regulations in Title 2 of the Code of Federal Regulations, Part 200 which ieguiie ealed bids of vioposals for contracts in excess of The Simplified Acquisition Threshold 16-5260/136857/PD 5