HomeMy WebLinkAboutOrdinance 3510 and Ordinance 3511 Amends HBMC Chapters 3.02 (2) (a (Y OF HUNTINGTON BEAC. "
MEETING DATE: April 21, 2003 DEPARTMENT ID NUMBER: 03-08
Council/Agency Meeting Held: U 3
Deferre Continued_t
❑ Approved ❑ Conditionally Approved ❑ Denied City Clerk's Sj nature
Council Meeting Date: April 21, 2003 Department ID Number: Q3-08
o®�v -�• CITY OF HUNTINGTON BEACH
REQUEST FOR ACTION
SUBMITTED TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL,'
SUBMITTED BY: RAY SILVER, CITY ADMINISTRATOR42W
PREPARED BY: PETER GRANT, PRINCIPAL ADMINISTRATIVE ANALY,-TO�4&
SUBJECT: ADOPT ORDINANCE 3Z�0'7Z AMENDING MUNICIPAL CODE
SECTION 3.03 RELATING TO PROFESSIONAL SERVICES
Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s)
Statement of Issue:
Should the City Council adopt Ordinance No. amending Municipal Code section
3.03.020 relating to professional services?
Funding Source:
N/A
Recommended Action:
Motion to:
1. Adopt Ordinance No. 3 dad, an ordinance of the City of Huntington Beach
amending Municipal Code section 3.03.020 relating to professional services.
Alternative Action(s):
The City Council may make the following alternative motion(s):
1. Do not adopt the ordinance and provide staff with appropriate direction.
G:\Organizational Effectiveness\Misc RCAs\Signature Delegation Ordinance MC Change RCA 2003.doc
4/1/2003 11:04 AM
REQUEST FOR ACTION
MEETING DATE: April 21, 2003 DEPARTMENT ID NUMBER: 03-08
Analysis:
Sections 3.02 and 3.03 of the city's Municipal Code allow department heads and other
authorized officers of the city to enter into contracts for the purchase of professional services
and other goods and services. The ordinance included with this report clarifies department
head's authority to delegate the ability to enter into contracts to other positions with the City
Council's approval.
The positions to which department heads may delegate signature authority are set by City
Council resolution. An update to the existing resolution is also included as a consent item on
the April 21, 2003 City Council agenda.
Environmental Status:
N/A
Attachment(s):
Cie.rk's
Page Number N6. Description
Ci
1 Ordinance No. _-3 b , a n o rdinance o f the C ity C ouncil o f t he
City of Huntington Beach amending Municipal Code section 3.03.020
relating to professional services.
RCA Author: Grant
G:\Organizational Effectiveness\Misc RCAs\Signature Delegation Ordinance MC Change RCA 2003.doc ; -
4/1/2003 11:04 AM
Attachment 1
_�
ORDINANCE NO. 3604
AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH
AMENDING THE HUNTINGTON BEACH MUNICIPAL CODE BY AMENDING
SECTION 3.03.020 RELATING TO PROFESSIONAL. SERVICES
WHEREAS.the City Council desires to amend the Huntington Beach Municipal
Code related to the provision of professional services,
NOW, THEREFORE, the City Council of the City of Huntington Beach does
hereby ordain as follows:
SECTION 1. That Section 3.03.020 of the Huntington Beach Municipal Code is
hereby amended to read as follows:
3.03.020 Definitions.
(a) "Consultant" means any provider of services under this Chapter as an
individual,partnership, corporation or otherwise.
(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.
(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
Gode 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.
SECTION 2. That this ordinance shall become effective thirty(30) days after its
adoption.
1
PDA:2003 ord:amend 3.03
RLS 2003-0099
PASSED AND ADOPTED by the City Council of the City of Huntington Beach
at a regular meeting thereof held on May 19 , 2003.
Mayor
ATTEST: APPROVED AS TO FORM:
City Clerk City Attorney L9 y'7
INITIATED, REVIEWED AND APPROVED:
City Adreilnistrator
2
PDA:2003 ord:amend 3.03
RLS 2003-0099
Ord. No. 3604
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, CONNIE BROCKWAY, 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 the 5th day of April, 2003, and was again read to said
City Council at a re ular meeting thereof held on the 191h day of May, 2003, and was
passed and adopted by the affirmative vote of at least a majority of all the members of
said City Council.
AYES: Sullivan, Coerper, Green,Boardman, Cook, Houchen, Hardy
NOES: None
ABSENT: None
ABSTAIN: None
I,Connie Brockway,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 q /;
M��y .12003. LL�C�F�W
In accordance with the CityCharter of said City
ry
Connie Brockway.City Clerk City Clerk and ex-officio Clerk
V' W a, kIL , Deputy City Clerk of the City Council of the City
of Huntington Beach, California
LEGISLATIVE DRAFT
3.03.020 Definitions.
(a) "Consultant" means any provider of services under this Chapter as an
individual,partnership, corporation or otherwise.
(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.
(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.
3
PDA:2003 ord:amend 3.03
RLS 2003-0099
H. _. INDEPENDEl`4 0-.1
PUBLISH DATE: 57QD2003
CITY OF HUNTINGTON BEACH
LEGAL NOTICE
ORDINANCE NO. 3604
Adopted by the City Council on 5 i 2003
"AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH AMENDING THE HUNTINGTON BEACH
MUNICIPAL CODE BY AMENDING SECTION 3.03.20 RELATING TO PROFESSIONAL SERVICES"
(Sections 3.02 and 3.03 of the city's Municipal Code allow department heads and other authorized officers
of the city to enter into contracts for the purchase of professional services and other goods and services.
The ordinance included with this report clarifies department head's authority to delegate the ability to enter
into contracts to other positions with the City Council's approval.)
FULL TEXT:
Ordinance No. 3604 amends the Huntington Beach Municipal Code relating to the provision of
professional services.
THE FULL TEXT OF THE ORDINANCE 3604 IS AS FOLLOWS.
Section 1. The Section 3.03.020 of the Huntington Beach Municipal Code is hereby amended to
read as follows:
3.03.020 Definitions.
(a)"Consultant" means any provider of services under this Chapter as an individual, partnership,
corporation or otherwise.
(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.
(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.
g1synopsis/draftsyn
COPIES OF THIS ORDINANCE ARE AVAILABLE IN THE CITY CLERK'S OFFICE.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting held
y the following roll call vote:
AYES: Sullivan, Coerper, Green, Boardman, Cook, Houchen, Hardy
NOES: None
ABSENT: None
This ordinance is effective 30 days after adoption.
CITY OF HUNTINGTON BEACH
2000 MAIN STREET
HUNTINGTON BEACH, CA 92648
714-536-5227
CONNIE BROCKWAY, CITY CLERK
glsynopsis/draftsyn
t ti y-f 7-03 }'ui 1?e T?41,r0Se1s 04udJ(
sqf '=1 .
ADMINISTRATIVE REGULATION
� Office of the City Administrator
Number: 228
Sections: 1-6
Effective Date: 12/01/01
SUBJECT: Professional Service Contracts
1. Purpose: To establish the process for entering into professional service contracts.
2. Authority: Municipal Code Section 3.03
3. Application: All departments.
4. Definitions: Refer to Municipal Code Section 3.03
5. Policy:
5.1. This Administrative Regulation establishes the procedures departments are to follow
when entering into professional service agreements.
5.2. Municipal Code Section 3.03 authorizes department heads to contract directly for any
professional service when:
• Procurement of such services has been budgeted;
• Sufficient unencumbered appropriated funds are available in the budget, or the
cost of the contract will be fully paid or reimbursed to the city; and
• The agreement has been generally described in the budget.
5.3. If all these criteria are not met, the contract must be approved by the City Council
whatever the value.
6. Procedures:
6.1. City Council Approval of the List of Professional Service Contracts
6.1.1. As part of the city's budget process, departments will submit a list of the
professional service contracts contained in their proposed budget to the Director
of Administrative Services. The list will generally describe the purpose and
amount of the contract and identify the account number (fund, department, and
business unit)where the contract is budgeted.
6.1.2. During the budget process, the City Council will review the list of professional
service contracts. Upon adoption of the budget, contracts that are included on
Administrative Regulation Page 2
Office of the City Administrator
the list will not require any further approval from the City Council unless the City
Council directs otherwise and except as required by this regulation.
6.2. Consultation with the City Attorney's Office & Purchasing Manager for
Agreements with Design Professionals
6.2.1. Agreements with design professionals pose significant liability and litigation risks
for the city. As such, departments shall consult with both the City Attorney's
office and the Purchasing Manager during negotiations with a design
professional relating to the scope of work and payment schedule.
6.2.2. Departments shall submit a Request for Legal Services requesting a
preparation of an agreement and review of the proposed scope of work and
payment schedule prior to presenting an agreement to the consultant for
signature.
6.2.3. Design professionals are defined as professional service consultants providing
engineering and/or architectural services, including but not limited to,
consultants performing services under a design-build agreement.
6.3. Certification by Purchasing Manager
6.3.1. Upon completing negotiations with the consultant, and prior to submitting a
professional service contract to the City Attorney's office for approval, the
department will submit the executed agreement to the Purchasing Manager to
confirm that it has complied with the requirements of Municipal Code Section
3.03.
6.3.2. The department's submission to the Purchasing Manager will contain:
• Proof that the department requested informal written proposals from at least
three qualified consultants (this requirement may be fulfilled by selecting a
consultant from a pre-qualified list maintained by the Purchasing Manager);
• The consultant's scope of work;
• The payment schedule; and
• Any other information required by the Purchasing Manager.
6.3.3. If the department is utilizing exempt or emergency purchasing procedures, as
defined in Municipal Code Section 3.03, those procedures supercede this
regulation.
6.3.4. If the department is utilizing another agency's agreement, the department will
provide the Purchasing Manager:
• Evidence that the other agency adhered to its own professional service
contract requirements, as defined in Municipal Code Section 3.03;
• The consultant's scope of work; and
• The payment schedule.
Administrative Regulation
Administrative Regulation Page 3
Office of the City Administrator
6.3.5. Upon completing the review of materials submitted by the department, the
Purchasing Manager will certify the selection process. The Purchasing
Manager will provide the department with a signed form indicating that the
requirements of Municipal Code Section 3.03 have been fulfilled.
6.4. Contract Preparation and Approval by the City Attorney's Office
6.4.1. Upon receiving certification from the Purchasing Manager, the department will
submit a "Request for Legal Services" to the City Attorney's office containing the
following information:
• A completed, signed standard contract (as required in section 6.11);
• The consultant's scope of work (as Exhibit A of the contract);
• The payment schedule (as Exhibit B of the contract);
• Appropriate proofs of insurance or approved insurance/indemnification
waivers; and
• The Purchasing Manager's signed certification.
6.5. Approval of Contracts Less Than $50,000
6.5.1. Professional service contracts less than $50,000 may be entered into directly by
department heads if:
• Procurement of such services has been budgeted;
• Sufficient unencumbered appropriated funds are available in the budget, or
the cost of the contract will be fully paid or reimbursed to the city;
• The agreement has been generally described in the annual budget;
• All the requirements of Municipal Code Section 3.03 have been met and
certified by the Purchasing Manager;
• All insurance and indemnification requirements have been met or waived;
• The final agreement has been approved as to form by the City Attorney's
office;
• The amount of the contract is no more than 25 percent or $25,000
(whichever is less) larger than the amount identified on the list the City
Council approved as part of the budget; and
• The City Administrator has not directed the contract be presented to the City
Council, or that the City Council participate in selecting the consultant.
6.6. Approval of Contracts Greater Than or Equal To $50,000
6.6.1. Professional service contracts greater than or equal to $50,000 may be entered
into by the City Administrator if:
• Procurement of such services has been budgeted;
• Sufficient unencumbered appropriated funds are available in the budget, or
the cost of the contract will be fully paid or reimbursed to the city;
• The agreement has been generally described in the annual budget;
Administrative Regulation
Administrative Regulation Page 4
Office of the City Administrator
• All the requirements of Municipal Code Section 3.03 have been met and
certified by the Purchasing Manager;
• All insurance and indemnification requirements have been met or waived;
• The final agreement has been approved as to form by the City Attorney's
office;
• The amount of the contract is no more than 25 percent or $25,000
(whichever is less) larger than the amount identified on the list the City
Council approved as part of the budget; and
• The City Administrator has not directed the contract be presented to the City
Council, or that the City Council participate in selecting the consultant.
6.7. Filing with the City Clerk
6.7.1. Upon signature by the department head or City Administrator, the complete
original executed agreement, a copy of all approved insurance certificates or
waivers, and the names of consultants who submitted proposals shall be filed
with the City Clerk.
6.8. Filing with Risk Management
6.8.1. Upon signature by the department head or City Administrator, the original
approved insurance certificates or waivers and subsequent renewals shall be
filed with the Risk Manager.
6.9. Length of Professional Service Contracts
6.9.1. An existing contract may be amended pursuant to Municipal Code Sections
3.02 and 3.03 and sections 6.5 and 6.6 of this regulation.
6.9.2. Agreements may not be extended beyond three years.
6.9.3. Amendments that do not extend the contract beyond three years should be
processed by submitting a Request for Legal Services to the City Attorney's
office.
6.9.4. Purchasing Manager certification is not required to process an amendment that
does not extend the agreement beyond three years.
6.10. Delegation of Signature Authority
6.10.1. Department heads may only delegate their signature authority to positions in
their department that are listed on the signature delegation resolution adopted
by the City Council.
6.10.2. The City Administrator or Assistant City Administrator must also sign
agreements signed by department head delegates regardless of their value.
Administrative Regulation
Administrative Regulation Page 5
Office of the City Administrator
6.11. Acceptable Contractor Signatures
The City Attorney has established the following standards for signatures of
contracts:
6.11.1. CORPORATIONS (including a limited liability company or not-for-profit):
• Two officers of the corporation (on the Board of Directors) must sign the
contract. One officer from column A and one from column B must sign.
_A B
Chairman of the Board Secretary
President Any Assistant Secretary
Any Vice President Chief Financial Officer
Any Assistant Treasurer
• If the corporation cannot provide the above signatures, it may have one officer
sign, but must provide a resolution from its Board of Directors authorizing the
sole signature.
6.11.2. GENERAL PARTNERSHIPS
• The signature of any general partner is sufficient
6.11.3. LIMITED PARTNERSHIPS
• The signature of the general or managing partner is sufficient
6.11.4. SOLE PROPRIETORSHIPS
• The signature of the owner is sufficient.
6.11.5. TRUSTS
• The trustee may sign and must provide a copy of the trust document
evidencing authority to sell.
Ray Silver
City Administrator
Administrative Regulation
' ' ` PROFESSIONAL SERVICE CONTRACTS
p
t PREPARATION CHECKLIST
1. Is the contract is included on the list of professional service contracts
approved by the City Council?
2. Is the contract no more than $25,000 or 25 percent more than the amount
identified on the list of professional service contracts approved by the City
Council?
3. Do sufficient unencumbered funds exist in your budget?
4. Did you request at least three informal written proposals? If this contract
involves a design professional (architects, engineer, etc.) consult with
Purchasing and City Attorney's office before soliciting proposals.
5. Are all the blanks in the contract filled in and is the standard contract
unchanged?
6. Did you receive certification from the Purchasing Manager?
7. Do you have the necessary insurance certificates and/or waivers?
8. Has the contract been properly signed (see A/R) by the consultant?
9. Did you prepare a RLS containing:
a. A properly executed contract?
b. The scope of work?
c. The payment schedule?
d. All insurances/waivers?
e. The Purchasing Manager's certification?
10.Has the agreement been signed by the department head (<$50,000)
and/or City Administrator/Assistant City Administrator (>_ $50,000 or if the
agreement is signed by an authorized department head delegate)?
11.Did you submit the original executed agreement, copies of all
insurances/waivers, and list of consultants who submitted proposals to the
City Clerk?
12.Did you submit the original insurances/waivers to Risk Management?
Work may begin.
JTY OF HUNTINGTON BEAt 4 ADOIN
I
MEETING DATE: September 17, 2001 DEPARTMENT ID NUMBER:
Council/Agency Meeting Held:
Deferred/Continued to:
Approved ❑ Conditionally Approved ❑ Denied _
pp d 3 - i k i g natwre a Cal _ (7-0��
Council Meeting Date: September 17, 2001 Department ID Number:
on _ 0S - 3s)0 3 5t) —0— - l�u
CITY OF HUNTINGTON BEACH �=
REQUEST FOR COUNCIL ACTION
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
SUBMITTED BY: RAY SILVER, City Administratoraz4-1/
AIL HUTTON, City Attorney `T '� � '
�f , �
PREPARED BY: PETER GRANT, Senior Administrative Analys#/ �
SUBJECT: Adopt Resolution revising Insurance and Indemnity Requirements and
amending Municipal Code Sections Regarding Purchasing Practices
Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s)
Statement of Issue:
Should the City Council adopt revisions to the city's insurance and indemnity requirements
and amend Municipal Code Sections 3.02 and 3.03 regarding purchasing practices?
Funding Source:
None required.
Recommended Action (Motion to):
1. Adopt Resolution Number ?Q0/ a resolution revising Resolution 97-20
establishing insurance and indemnity requirements; and
2, Adopt Ordinance Number 35IL amending Huntington Beach Municipal Code
Chapter 3.02 relating to the purchase of goods and services, and
3. Adopt Ordinance Number 3 5}/ amending Huntington Beach Municipal Code
Chapter 3.03 relating to the contracting of professional services.
RCA Approving Contract&Insurance Revisions -2- 9/6/01 4:37 PM
QUEST FOR COUNCIL ACl N
MEETING DATE: September 17, 2001 DEPARTMENT ID NUMBER:
Alternative Action(s):
1. Do not adopt Resolution Number ,> ;
2. Do not adopt Ordinance Number 3-5/b ;
3. Do not adopt Ordinance Number/ ; and
4. Direct staff as appropriate.
Analysis:
Review by Legal Affairs Subcommittee of the CitV Council
The City Council's Legal Affairs Subcommittee has reviewed and approved the
recommended changes to the bidding/contract process and insurance requirements.
Background
In February 2000, staff launched an effort to improve the city's bidding/contracting process
and refine its insurance requirements. A process improvement team was drawn from the
City Administrator's office, the City Attorney's office, and the Administrative Services
department and charged with ensuring city's bidding/contracting process and insurance
requirements reflect industry best practices.
While there were a number of reasons for selecting the bidding/contracting process and
insurance requirements for improvement, staff identified two primary concerns with the
existing practices:
1. Staff in both the Administrative Services department and its client departments feel
the bidding/contracting process and the insurance requirements are inefficient and
present barriers to engaging the best possible contractor/consultant in the least
amount of time.
2. The economic expansion of the late 1990s resulted in a marked increase in the
demand for consultant services: High demand has allowed consultants to pick and
choose their employers. As a result, consultants are charging high fees and often
refusing to work for cities with onerous bidding/contracting processes or rigid
insurance requirements.
Staff believes that improvements recommended for the city's bidding/contracting process
will enable the city to better compete for the services of top contractors and consulting
firms.
In developing its recommendations, the improvement team solicited input from all city
departments, conducted a 15-agency benchmarking study, and reviewed materials from
insurance and consulting industry associations.
Contract Process Revisions .7- 9/6101 4:17 PM
2
.QUEST FOR COUNCIL ACl N
MEETING DATE: September 17, 2001 DEPARTMENT ID NUMBER:
Recommendations
1. Staff is recommending the following modifications to the city's standard Insurance
and Indemnification Requirements:
A. Reduce indemnification obligations for consultants not providing engineering
and/or architectural services.
B. Clarify indemnification obligations for all parties contracting with the city.
C. Create a streamlined process for insurance and indemnification waivers
involving the Risk Manager, City Attorney, and City Administrator.
D. Reduce general liability insurance requirements for professional service
providers.
E. Require automobile liability insurance from contractors and permittees.
2. Staff is recommending the following modifications to Huntington Beach Municipal
Code Section 3.02:
A. Clarify terms and staff responsibilities.
B. Create a modified bid process for small procurements (less than $30,000).
C. Clarify bid process, requirements, and exemptions.
D. Establish a local business preference.
3. Staff is recommending the following modifications to Huntington Beach Municipal
Code Section 3.03:
A. Establish emergency procedures for the procurement of professional
services.
B. Permit department heads to contract directly for services when the
procurement has been budgeted and there are sufficient unencumbered
funds available.
C. Permit amendment of existing agreements for a term not to exceed three
years.
Adopting staffs recommendations will accomplish three goals:
1. Create a process that protects the city from liability and is fair to third parties;
2. Model best practices from other municipal governments and standardizes the city's
requirements with its industry; and
3. Streamline the bidding/contracting process.
The recommendations detailed in this report have been reviewed by every city department
and have the City Administrator's and City Attorney's full support.
Contract Process Revisions -4- 9/6/01 4:17 PM
3
_QUEST FOR COUNCIL ACl N
MEETING DATE: September 17, 2001 DEPARTMENT ID NUMBER:
The City Administrator's office would like to thank the following individuals for their work on
this project: Rick Amadril, Purchasing Manager, Karen Foster, Risk Manager, and Jennifer
McGrath, Deputy City Attorney.
Environmental Status: N/A
Attachment(s):
1. Resolution Number establishing insurance and
indemnity requirements � xhdfs
2. Ordinance Number amending Huntington Beach
Municipal Code Chapter 3.02 relating to purchasing practices
and authority
3. Legislative draft— Chapter 3.02
4. Ordinance Number amending amending Huntington Beach
Municipal Code Chapter 3.03 relating to the contracting of
professional services
5. Legislative Draft— Chapter 3.03
6. Benchmarking Survey Results
RCA Author: Grant
Contract Process Revisions 4- 9/6/01 4:17 PM
ATTACHMENT # 1
RESOLUTION NO. 2001-65
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HUNTINGTON BEACH REVISING RESOLUTION NO. 97-20
ESTABLISHING INSURANCE AND INDEMNITY REQUIREMENTS
WHEREAS, there are persons and organizations who are engaged in various
activities in the City, thereby subjecting the City to substantial risk of liability for damage to
property and injury to persons; and,
The City desires to establish insurance and indemnification requirements; and, in
appropriate cases, a procedure for the waiver thereof; and,
The City desires to establish internal staff responsibility for the administration of the
insurance required by this Resolution and delineate the authority to make adjustments to
requirements based upon unique and unusual circumstances.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Huntington Beach that the insurance coverage and indemnity requirements shall be as
follows:
SECTION I. DEFINITIONS AND FORMS REQUIRED
A. Definitions:
1. "Contractors" are any persons or entities who contract with the City and/or
provide services to the City which are readily available and efficiently
procured by competitive bidding.
2. "Design Professionals" are professional services contractors who contract
with the City and/or provide architectural and/or engineering services to the
City.
3. "Licensees/Lessees" are any persons or entities who contract with the City
for the use of public property.
4. "Permittees" are any persons or entities who make application to the City for
any use of or encroachment upon any public street, waterway, pier, or City
property.
5. "Professional Services" are as defined by Huntington Beach Municipal Code
section 3.03.
6. "Vendors" are any persons or entities who transfers property or goods to the
City which may or may not involve delivery and/or installation.
B. Indemnity and Insurance Coverage Requirements Defined
1
01 reso/ins4/8/29/01
Res. No. 2001-65
1. General Liability: Combined single limit bodily injury and property damage:
Minimum limits of$1,000,000 per occurrence.
a. Coverage must include completed operations liability and blanket
contractual liability and, where products are furnished, products
liability.
b. If coverage is provided under a form which includes a designated
general aggregate limit, the aggregate limit must be no less than
$1,000,000 and the policy holder shall submit written notice of any
known depletion of limits to City attached to the proof of insurance.
C. Claims made policies are not acceptable, except that claims made
insurance for pollution liability shall be acceptable.
d. All deductibles, self-insured retentions, or alternative forms of
providing coverage must be approved through the Waiver Procedure
set forth in Section III to this Resolution.
e. The City, its, officers, elected or appointed officials, employees,
agents and volunteers are to be covered as additional insureds by
separate attached endorsement(s) as respects liability arising out of
action performed by or on behalf of the contractor, products and
completed operations of the contractor, premises owned, occupied or
used by the contractor; or automobiles owned, leased or borrowed by
the contractor. The coverage shall contain no special limitations on
the scope of protection afforded to the City, its agents, officers and
employees.
f. For any claims related to the project, the contractor's insurance
coverage shall be primary insurance as respects the City, its agents,
officers, and employees. Any insurance or self-insurance maintained
by the City, its agents, officers, and employees shall be excess of the
contractor's insurance and shall not contribute with it.
g. Any failure to comply with reporting or other provisions of the policies
including breaches of warranties shall not affect coverage provided to
the City, its agents, officers and employees.
h. The contractor's insurance shall apply separately to each insured
against whom claim is made or suit is brought, except with respect to
the limits of the insurer's liability.
2. Workers Compensation and-Employers' Liability: In accordance with the
applicable state statutes with limits in the case of workers' compensation and
employers' liability in amounts not less than the.State statutory limits.
2
01 reso/ins4/8/29/01
Res. No. 2001-65
Alternatively, a signed declaration of non-employee status shall be filed. A
certificate or consent to self-insure issued by the California Director of
Industrial Relations is also.acceptable.
3. Professional Liability Insurance: Coverage must be provided at a minimum
of$1,000,000 per occurrence and in the aggregate.
a. Claims made policies are acceptable if the policy further provides that:
1. The policy retroactive date coincides with or precedes the
professional services contractor's start of work (including
subsequent policies purchased as renewals or replacements).
2. The professional services contractor will make every effort to
maintain similar insurance during the required extended period
of coverage following project completion, including the
requirement of adding all additional insureds.
3. If insurance is terminated for any reason, professional services
contractor agrees to purchase an extended reporting provision
of at least two (2) years to report claims arising from work
performed in connection with this agreement or permit.
4. The reporting of circumstances or incidents that might give rise
to future claims.
4. Automobile Liability Coverage must be provided at a minimum of
$1,000,000 per occurrence.
a. If coverage is provided under a form which includes a designated general
aggregate limit, the aggregate limit must be no less than $1,000,000 and the
policy holder shall submit written notice of any known depletion of limits to
City attached to the proof of insurance.
b. All deductibles, self-insured retentions, or alternative forms of providing
coverage must be approved through the Waiver Procedure set forth in
Section III to this Resolution.
C. The City, its officers, elected or appointed officials, employees, agents and
volunteers are to be covered as additional insureds by separate attached
endorsement(s). The coverage shall contain no special limitations on the
scope.of protection afforded to the City, its agents, officers and employees.
d. For any claims related to the project, the contractor's insurance coverage
shall be primary insurance as respects the City, its agents, officers, and
employees. Any insurance or self-insurance maintained by the City, its
agents, officers, and employees shall be excess of the contractor's
insurance and shall not contribute with it.
3
01 reso/ins4/8/29/01
Res. No. 2001-65
C. Certificate of Insurance Requirements Defined
1. Form. Evidence of insurance coverage and limits as required by the City
shall be furnished to the City as a certificate holder on the "Acord' or similar
form approved by the City Attorney. (See samples attached herein as Exhibit
«A„
a. Each insurance policy required by this Resolution shall be endorsed
to state that coverage.shall not be suspended, voided or canceled by
either party, reduced in coverage or in limits except after thirty days
prior written notice; however, ten days prior written notice in the event
of cancellation for nonpayment of premium is acceptable for all
persons or organizations, except as required by the Standard
Specifications for Public Works Construction.
b. The description of work to be performed, the City department involved
in the performance, and the City staff contact person must be clearly
identified on the "Acord" or similar form evidencing insurance
coverage.
C. All forms of insurance shall identify the City of Huntington Beach, its
officers, elected or appointed officials, employees, agents and
volunteers as an additional insured by separate attached
endorsement with respect to general liability and automobile liability
coverages.
d. Contractors shall include all subcontractors as insureds under its
policies or shall furnish separate certificates and endorsements for
each subcontractor. All coverages for subcontractors shall be subject
to all of the requirements stated herein.
2. Approval of Certificate Insurance certificates must be approved by the
City Attorney prior to commencement of any performance under a contract
or issuance of any permit, as authorized by the City Charter.
3. Acceptability of Insurers Insurance must be placed with insurer with a
Best's rating of no less than A: VII and insurer must be a California admitted
carrier.
SECTION II INSURANCE AND INDEMNIFICATION REQUIREMENTS
A. INSURANCE
1. Contractors and Permittees must meet the requirements as set forth in
Exhibit "B" incorporated by reference and attached herein.
4
01 reso/ins4/8/29/01
es. No. 2001-65
2. Professional Services providers must meet the requirements as set forth in
Exhibit "C" incorporated by reference and attached hereto.
3. Licensees/Lessees must meet the requirements as set forth in Exhibit "D"
incorporated by reference and attached hereto.
4. Vendors
a. Vendors supplying goods including delivery, service and/or installation
must meet the requirements of Exhibit "B".
b. Vendors supplying goods only without delivery, service and/or
installation are required to provide products liability coverage only.
5. The insurance requirements of persons or organizations not identified herein
shall be as designated by the agreement. All certificates of insurance
designated must conform to the requirements of this Resolution.
6. Exceptions.
a. Public entities are exempt from the requirements of this resolution.
Any insurance and indemnity requirements of a public entity shall be
pursuant to Section II(A)(5).
b. Persons providing judicial or quasi-judicial services as independent
contractors, such as judges, arbitrators, hearing officers, expert
witnesses, and court reporters shall be exempt from all insurance
coverage requirements. Any insurance and indemnity requirements
shall be pursuant to Section II(A)(5).
C. Each person making application for a permit for private property
construction, alteration, improvement, demolition, or repair of any
building or structure shall sign a declaration under penalty of perjury
verifying workers' compensation coverage or exemption from
coverage, as required by Section 19825 of the Health and Safety
Code-and, at the time of permit issuance, contractors shall show their
valid workers' compensation insurance certificate.
d. Persons contacting with the City under subdivision agreements are
exempt from providing evidence of workers' compensation.
e. Oil operators as regulated by Huntington Beach Municipal Code
Section 15.16 and pipeline franchises as regulated by Huntington
Beach.Municipal Code Section 3.44 are exempt from the
requirements of this resolution.
5
01 reso/ins4/8/29/01
Res. No. 2001-65
f. Taxica bsNeh icles-for-h ire as regulated by Huntington Beach
Municipal Code Section 5.50 are exempt from the requirements of this
resolution.
g. Trucking companies, including those regulated under Huntington
Beach Municipal Code Section 10.32, are exempt from the minimum
insurance requirements of this resolution but must submit proof of
workers' compensation insurance and general liability insurance in
accordance with the requirements of the Public Utilities Commission
(PUC) regulations which include: 1)the general liability insurance
requirements are $600,000 combined single limit or $250,000' bodily
injury or death of one person and $500,000 protection against total
liability for bodily injury or death of more than one person from any
one accident. 2) this is subject to the same $250,000 limitation for
each person and $100,000 protection for accidental damage or
destruction of property other than property being transported. 3) the
City of Huntington Beach must be named as certificate holder but
does not need to be named as additional insured.
7. Indemnity
a. Contractors and Permittees shall be required to indemnify City,
pursuant to the indemnity provision attached hereto and incorporated
herein by this reference as Exhibit "E".
b. All design professionals shall be required to indemnify City pursuant
to the indemnity provision attached hereto and incorporated herein by
this reference as Exhibit "F".
C. All other persons or organizations, including but not limited to
professional service providers other than Design Professionals as
defined by this Resolution, shall be required to indemnify City,
pursuant to the indemnity provision attached hereto and incorporated
by reference as Exhibit "G".
SECTION III. WAIVER OR MODIFICATION PROCEDURE
A. Waivers or Modification Request Form.
A department Request for Waiver or Modification, Exhibit "H" attached, shall be completed
and forwarded to the Risk Manager for all requests for waiver or modifications of the
minimum indemnification and insurance requirements.
B. Waiver or Modification Authority.
The Risk Manager and the City Attorney may approve any waiver or modification of the
insurance and indemnification requirements, including requests for indemnification of third
parties. A denial. may be appealed to the City Administrator.
6
01 reso/ins4/8/29/01
Res. No. 2001-65
C Waiver Criteria.
The criteria to evaluate any requests for waiver shall include the following:
a. The type of waiver or modification requested;
b. The reason for the waiver or modification;
C. The nature of the scope of work;
d. The cost of the contract;
e. The liability exposure of the City;
f. The cost and availability of the coverage requested;
g. The claim history of the requesting party;
h. The past experience of the City with the requesting party; and
i. The past experience of the City with other contracting parties of a
similar nature.
SECTION IV.Resolution 9720 and all other resolutions in conflict herewith are
hereby repealed.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting held 17th day of September 2001.
ATTEST: Mayor
City Clerk APPROVED AS TO FORM:
- I I A4-,l
WIIJ City Attorney I0�
REVIEWED, CO-INITIATED AND APPROVED:
I I/ d:�C��
Y 36 01 City Attorney
� 2Ab I
REVIEWED, CO-INITIATED AND APPROVED:
City AdmRstrator
7
01 reso/ins4/8/29/01
Res.No.2001-65
AC0RD� � RT1 AT
.. �. a .
PROOUCER THIS CERTIFICATE '^ ISSUED AS A MATTER OF IN€--ORr.iAT1,
ONLY AND CON NO RIGHTS 1Ar?SON fiERTIFICA
HOLDER. THIS CL FICATE DOES NOT A�-1 , EXTEND t
ALTER THE COVERAGE AFFORDED BY THE POLICIES BELO
COMPANIES AFFORDING COVERAGE
I COMPANY
A
INSURED I COMPANY
B
COMPANY
I COMPANY
i D
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIC
INDICATED,NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTFLACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THI
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE T=FiM
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CL AIIMS.
I
1 POLICY EFFECTIVE POLICY EXPIRATION:COT 1 TYPE OF INSURANCE POLICY NUMBER i OATE(MI,1100" GATE(M&VOO" LIMITS
GENERAL LIABILITYI I GENERALAGGP.EGATE Is
A I 1 COMMERCIAL GENERAL LIABILITY 1 ! I �PAn' -S•COMPIOP AGG IS
CLAIMS MADE IJ OCCUR I I .6 ACV INJURY is
OWNER'S 3 CONTRACTOR'S PROT I lCCVRRENCE Is
AS DAMAGE(A-ny one fire) 15
I I I MED EXP(Any one oersen) Is
AUTOMOBILE LIABILITY 1
! _ i COMBIN=O SINGLE LIMIT 5
_I ANY AUTO j
:__j ALL CYINEO AUTOS I 1500tLY INJURY is
SCHEOULEO AUTOS I (Per person)
!
HIRED AUTOS ( SOOILY INJURY I S
NON•CV:NED AUTOS \. I t(Ter acciCenQ
PROP'cRTY DA.V.AGE ( S
GARAGE LIABILITY I •• .. AUTO ONLY-EA ACCICENT I S
^I ANY AUTO I } ! OTHERS T}'.AN AUTO ONLY: e';
I I EACH ACC105NT S
`_ _
I t ATE I S
EXCESS LIABILITY S
UMEA_L:.FOR`A I !AGGREGATE_ i S
OTHER THAN UMBRELLA F,•JH I is
.WORKERS COMPENSATION AI •� : �'lCSLA:U• :C-H•.-:':i _
( !TOnY LIuITe: =R
EMPLOYERS'LIABILITY i EL EACH ACCIOENT is
I
THE PR07nIETGR/ � I INCL EL DISEASE•POLICY Uti!tT- Is
PARTNE.=SEXECUTIVE
0=FICEF.S ARE I EXCL 1 1 EL DISEASE•EA=:7_OY=_I S
OTHER
i
t I 1
I I I
CESCRIPTICH OF OPERATIONSILOCATIONSYEHICLESISPECtAL ITEMS
CERTIFICATECAt1C �E 4T'
SHOULD ANY OF THE ABOVE DESCRIBEO POLICIES 5E CANCELLED BEFOF
C1tV O1 Hl1I1t1IljtOn BedCn EX7:RAT:CN OATE THEREOF, THE ISSUING COMPANY WILL SS ,
Risk Management Division 30 CAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO TH
2000 Main Street ex �`Cc3 �x` b� +c 'czL' L� �
Huntington Beach, CA 926=3 -
AUTHORIZE3 REPRESENTATIVE
1
s(��� ,,. ,. . ;;con�:coi�;?o��r:
EXHIBIT A p-lof3 -
POLICY NUMBER: COMh-,_ ..:IAL GENERAL
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
ADDITIONAL INSURED-OWNERS, LESSEES OR
CONTRACTORS (Form B)
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY
SCHEDULE
Name of Person or organization; THE CITY OF HUNTINGTON BEACH
2000 Main Street
Huntington Beach, CA 92648
(if no entry appears above, information required to complete this endorsement will be shown in the
Declarations as applicable to this endorsement.)
WHO 1S AN INSURED (Section Il) is amended to include as an insured the person or organization
shown in the Schedule, but only with respect to liability arising out of"your work' for that insured by
or for you
RE; ALL OPERATIONS OF THE NAMED INSURED FOR THE CERTIFICATE HOLDER.
City of Huntington Beach, its elected or appointed officials, agents, officers, employees and
volunteers
t
CG 20 10 11 85 Copyright. Insurance Services Office, Inc., 1984
EXHIBIT A p;2 or 3
STATE P.O. BOX 420807,SAN FRANCISCO,CA 94142-0807 Res.No.2001-65
COMPENSATION
Ir4SURANCE
�ERTIFICATE OF WORKERS'COMPENSATION.INSURANCE
POLICY NUMBER
CERTIFICATE EXPIRES
w
F
CITY OF HUNTINGTON BEACH
RISK MANAGEMENT s
2000 MAIN STREET _..
HUNTINGTON BEACH" CA 92648
L
This is to certify that we have issued a valid Workers'Compensation insurance policy in a form approved by the California
Insurance Commissioner to the employer named below for the policy period indicated.
This policy is not subject to cancellation by the Fund except upon t 3XVays'advance written notice to the employer.
30
We will also give you TRO days'advance notice should this policy be cancelled prior to its normal expiration.
This certificate of insurance is not an insurance policy and does not amend, extend or alter the coverage afforded by the
policies listed herein. Notwithstanding any requirement, term, or condition of any contract or other document with
respect to which:this'certificate of:::insurance may. be'issued;or may pertain; the insurance afforded :by the policies
described herein is subject to all the ferms:exclusions and conditions of such policies
AUTHORIZED REPRESENTATIVE PRESIDENT
EMPLOYER'S LIABILITY.:LIMIT INCLUDING DEFENSE COSTS: $1,000:i FtR OCCURRENCE.
ENDORSEMENT ##2065 ENTITLED CERTIFICATE HOLDERS' NOTICE EFFECTIVE
07/01/00 IS ATTACHED TO AND FORMS A PART OF THIS POLICY.
EMPLOYER
L EXHIBIT A Pg 3 of 3
EXH IBI T
B
Res.No.2001-65
EXHIBIT B
INSURANCE REQUIREMENTS FOR CONTRACTORS,AND PERMITTEES
PLEASE GIVE THESE INSURANCE REQUIREMENTS TO YOUR INSURANCE AGENT
Minimum Limits of Insurance
City Council Resolution_2001-65 requires submittal of certificates of insurance evidencing the following minimum limits
with a California admitted carrier with a current A.M.Best's Rating of no less than A:VII:
1. General Liability: $1,000,000 per occurrence for bodily injury,personal injury and property damage. If
Commercial General Liability Insurance or other form with a general aggregate limit is used,either the general
aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the
required occurrence limit. "Claims made"designation is only acceptable for professional or pollution liability
insurance.
The City of Huntington Beach,its officers,elected or appointed officials,employees,agents and volunteers must
be named as certificate holder and as additional insured by separate attached endorsement. (This wording must be
exact).
j 2. Workers'Compensation and Employer's Liability: State statutory limits of$250,000 bodily injury by disease,
policy limit,and$100,000 bodily injury each employee for accident or disease per occurrence. If you have no
employees,you must sign a Declaration of Non-employee Status form available from the City. In lieu of a
certificate of insurance,a certificate of consent to self-insure issued by the California Director of Industrial
Relations is also acceptable.
3. Automobile liability of$1,000,000 per occurrence for bodily injury,personal injury and property damages. The
City of Huntington Beach, its officers,elected or appointed officials,employees,agents and volunteers must be.
named as certificate holder and as additional insured by separate attached endorsement. (This wording must be
exact).
Deductibles, Self-Insured Retentions,or Similar Forms of Coverage Limitations or Modifications
Any deductibles, self-insured retentions or similar forms of coverage limitations or modifications,must be declared to and
approved by the City of Huntington Beach.
Subcontractors
I
Contractor shall include all subcontractors as insured under its policies or shall furnish separate certificates and
endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated
herein.
Description of Work to be Performed
The staff contact-and purpose of the evidence of coverage must be identified.
Notice of cancellation requirements
The City requires 30-day notice of cancellation The words"endeavor to"and"failure to mail such notice shall impose no
obligation nor liability of any kind upon the company,its agents or representatives"must be removed or stricken out if they
appear on a certificate. An exception for notice of cancellation of 10 days for non-payment of premium or non-reporting of
payroll is acceptable, except in contracts subject to the Green Book'specifications.
AGAIN, PLEASE FOR iVARD THIS NOTICE TO YOUR INSURANCE AGENT,
FOR ASSISTANCE, PLEASE CONTACT RISK MANAGEMENT
01reso'insreq/8/28/01
11
Res.No.2001-65
Res.No.2001-65
EXHIBIT C
INSURANCE REQUIREMENTS]PROFESSIONAL
SERVICE CONTRACTORS
PLEASE GIVE THESE INSURANCE REQUIREMENTS TO YOUR INSURANCE AGENT
Minimum Limits of Insurance
City Council Resolution No. 2001-65 requires submittal of certificates of insurance evidencing the
following minimum limits with a California admitted carrier with a current A.M.Best's Rating of no
less than A:VII :
Errors and Omissions liability: $1,000,000 per occurrence.
Deductibles, Self-Insured Retentions or Similar Forms of Coverage Limitations or Modifications
Any deductibles, self-insured retentions or similar forms of coverage limitations or modifications,must
be declared to and approved by the City of Huntington Beach.
Description of Work to be Performed
The staff contact and purpose of the evidence of coverage must be identified.
Notice of cancellation requirements
The City requires 30-day notice of cancellation The words"endeavor to"and"failure to mail such
notice shall impose no obligation nor liability of any kind upon the company, its agents or
representatives"must be removed or stricken out if they appear on a certificate. An exception for
notice of cancellation of 10 days for non-payment of premium or non-reporting of payroll is acceptable,
except in contracts subject to the Green Book specifications.
01reso insreq/8/28/01
12
Res.No.2001-65
Res.No.2001-65
EXHIBIT D
INSURANCE REQUIREMENTS FOR LESSEES/LICENSEES
PLEASE GIVE THESE INSURANCE REQUIREMENTS TO YOUR INSURANCE AGENT
Minimum Limits of Insurance
City Council Resolution 97-20 requires submittal of certificates of insurance pursuant to the-form set forth in
Resolution No.2001--65 evidencing the following minimum limits with a California admitted carrier-with a
current A.M.Best's Rating of no less than A:VII:
1. General Liability: $1,000,000 per occurrence for bodily injury,personal injury and property damage.
If Commercial General Liability Insurance or other form with a general aggregate limit is used, either
the general aggregate limit shall apply separately to this project/location or the general aggregate limit
shall be twice the required occurrence limit. "Claims made"designation is only acceptable for professional or
pollution liability insurance.
For general liability certificate holder,the City of Huntington Beach,its elected or appointed officials,agents,
officers,employees,and volunteers must be named as certificate holder and as additional insured by separate
attached endorsement. (This wording must be exact).
2. Workers Compensation and Employer's Liability: State statutory limits of$250,000 bodily injury by disease,
policy limit,and$100,000 bodily injury each employee for accident or disease per occurrence. If you have no
employees,you must sign a Declaration of Non-employee Status form available from the City. In lieu of a
certificate of insurance,a certificate of consent to self-insure issued by the California Director of Industrial
Relations is also acceptable..
3. Property Insurance: Full replacement cost with no coinsurance penalty provision.
Deductibles, Self-Insured Retentions, or Similar Forms of Coverage Limitations or Modifications
Any deductibles, self-insured retentions or similar forms of coverage limitations or modifications,must be
declared to and approved by the City of Huntington Beach.
Description of Work to be Performed
The staff contact and purpose of the evidence of coverage must be identified.
Notice of cancellation requirements
The City requires 30-day notice of cancellation The words"endeavor to"and "failure to mail such notice shall
impose no obligation nor liability of any kind upon the company, its agents or representatives"must be removed
or stricken out if they appear on a certificate. An exception for notice of cancellation of 10 days for non-
payment of premium or non-reporting of payroll is acceptable, except in contracts subject to the Green Book
specifications.
AGAIN, PLEASE FORWARD THIS NOTICE TO YOUR INSURANCE AGENT,
FOR ASSISTANCE, PLEASE CONTACT RISK MANAGEMENT
EXHIBIT D
O 1 reso/insreq/8/28/01
13
Res.No.2001-65
Res.No.2001-65
EXHIBIT E
TO RESOLUTION NO. 200145
CONTRACTOR'S INDEMNIFICATION. DEFENSE HOLD HARMLESS
Contractor hereby agrees to protect, defend, indemnify and hold harmless City, its officers, elected or
appointed officials, employees, agents, and volunteers from and against any and all, claims, damages,
losses, expenses,judgments, demands defense costs, and consequential damage or liability of any kind
or nature,however caused, including those resulting from death or injury to Contractor's employees
and damage to Contractor's property, arising directly or indirectly out of the obligations or operations
herein undertaken by Contractor, caused in whole or in part by any negligent act or omission of the
Contractor, any subcontractors, anyone directly or indirectly employed by any of them or anyone for
whose acts any of them may be liable, including but not limited to concurrent active or passive
negligence, except where caused by the active negligence, sole negligence, or willful misconduct of the .
City. Contractor will conduct all defense at its sole cost and expense and City shall approve selection
of contractor's counsel. City shall be reimbursed for all costs and attorney's fees incurred by City in
enforcing this obligation. This indemnity shall apply to all claims and liability regardless&whether
any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of
indemnification to be provided by Contractor.
01 reso/insreq/S/2S'01
S
Res.No.2001-66
Res.No.2001-65
EXHIBIT F
TO RESOLUTION NO. 2001-65
INDEMNIFICATION,DEFENSE,AND HOLD HARMLESS
CONSULTANT hereby agrees to protect, defend, indemnify and hold harmless CITY, its
officers, elected or appointed officials, employees, agents and volunteers from and against any and all
claims, damages, losses, expenses, demands, and defense costs (including without limitation, costs and
fees of litigation of every nature or liability of any kind or nature) arising out of or,in connection with
CONSULTANT's performance of this Agreement or its failure to comply with any of its obligations
contained in this Agreement by CONSULTANT, its officers, agents or employees except such loss or
damage which was caused by the sole negligence or willful misconduct of CITY. CITY shall be
reimbursed by CONSULTANT for all costs and attorney's fees incurred by CITY in enforcing this
obligation. CONSULTANT will conduct all defense at its sole cost and expense, and the CITY shall
approve selection of CONSULTANT's counsel. This indemnity shall apply to all claims and liability
regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation
upon the amount of indemnification to be provided by the CONSULTANT.
O1 reso'insreq 8/28/01
9
Res.No.2001-65
Res.No.2001-65
EXHIBIT G
TO RESOLUTION NO. 2001-65
INDEMNIFICATION, DEFENSE, AND HOLD HARMLESS
CONSULTANT hereby agrees to protect, defend, indemnify and hold harmless CITY, its
officers, elected or appointed officials, employees, agents and volunteers from and against any and all
claims, damages, losses, expenses,judgments, demands and defense costs (including,without
limitation, costs and fees of litigation of every nature or liability of any kind or nature) arising out of or
in connection with-CONSULTANT's (or CONSULTANT's subcontractors, if any)negligent
performance of this Agreement or its failure to comply with any of its obligations contained in this
Agreement by CONSULTANT, its officers, agents or employees except such loss or damage which
was caused by the sole negligence or willful misconduct of CITY. CITY shall be reimbursed by
CONSULTANT for all costs and attorney's fees incurred by CITY in enforcing this obligation.
CONSULTANT will conduct all defense at its sole cost and expense and the CITY shall approve
selection of CONSULTANTT's counsel. This indemnity shall apply to all claims and liability regardless
of whether any insurance policies are applicable. The policy limits do not act as limitation upon the
amount of indemnification to be provided by the CONSULTANT.
01 reso/insreq/8/28i01
10
Res.No.2001-66
Res.No.2001-66
EXHIBIT H
CITY OF HUNTINGTON BEACH
APPLICATION FOR INSURANCE REQUIREMENTS WAIVER OR MODIFICATION
1. Name/Title/Department of Requesting Staff Member
2. Date of Request
3. Name of Contractor/Pernuttee
4. Description of work to be performed
5. Value of Contract
6. Length of Contract
7. Type of Waiver or Modification Requested:
8. Reason for Request for Waiver or Reduction of Limits
9. Identify the risks to the City if this request for waiver or modifications granted
Department Head Signature
RECOMMENDATION
RISK MANAGER
Approve Deny Signature/Date
CITY ATTORNTEY
Approve Deny Signature/Date
City Administrator approval is required for this waiver. (This form must be submitted to the City Administrator.)
CITY ADMINISTRATOR
Approve Deny Signature/Date
01 reso/insreq/8/28/01
14
Res. No. 2001-65
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, CONNIE. BROCKWAY, 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 resolution was
passed and adopted by the affirmative vote of at least a majority of all the
members of said City Council at a regular meeting thereof held on the 17th
day of September, 2001 by the following vote:
AYES: Green, Boardman, Cook, Julien Houchen, Garofalo, Dettloff,
Bauer
NOES: None
ABSENT: None
ABSTAIN: None
City Clerk and ex-officio Clerk of the
City Council of the City of
Huntington Beach, California
ATTACHMENT #2
ORDINANCE NO. 3510
AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH
AMENDING CHAPTER 3.02 OF THE HUNTINGTON BEACH MUNICIPAL
CODE RELATING TO THE PURCHASE OF GOODS AND SERVICES
The City Council of the City of Huntington Beach does hereby ordain as follows:
SECTION 1. The title of this Chapter shall be "Purchases of Goods and Services."
SECTION 2. Section 3.02.10 of the Huntington Beach Municipal Code is hereby
amended to read as follows:
3.02.010 Established. The Central Services Division of the Administrative Services Department
is.established for the purpose of providing for centralized purchasing of all supplies, services and
equipment for the various agencies of the City.
SECTION 3. Section 3.02.015 is hereby added to Chapter 3.02 of the Huntington Beach
Municipal Code, and reads as follows:
3.02.015 Purpose. This chapter is adopted in order to provide a uniform procedure for
contracting for goods and services by the City of Huntington Beach, to provide for fair and
equitable treatment of all persons involved, to obtain the highest possible value in exchange for
public funds, and to safeguard the quality and integrity of the purchasing and contract process.
SECTION 4. Section 3.02.020 of the Huntington Beach Municipal Code is hereby
amended to read as follows:
3.02.020 Officer--Duties. The Director of Administrative Services shall direct the activities of
the Central Services Division. The Purchasing Officer shall be responsible to the Director of
Administrative Services.
SECTION 5. Section 3.02.025 is hereby added to Chapter 3.02 of the Huntington Beach
Municipal Code, and reads as follows:
3.02.025 Definitions. For the purposes of this chapter, the following definitions apply:
(a) Bid or Proposal Documents. The documents, including their attachments and addenda,
which'set forth instructions to bidders or proposers, and are disseminated for the purpose of
soliciting bids or proposals.
(b) City Administrator shall mean City Administrator or his/her designee.
(c) City Employee. An individual who performs services for the City in the capacity of an
elected or appointed official, or as a compensated employee of the City or of a temporary
Olord/jmp/3-02 ord/9/5,'01 1
)rd. No. 3510
services agency retained by the City. "City employee" does not include independent
contractors.
(d) Contract. Agreements, regardless of what they may be labeled,between the City and one
or more other parties for the purchase or disposition of goods and/or services.
(e) Contractor/Vendor/Supplier. Any person who has entered into an agreement with the City
for the provision or disposition of goods and/or services.
(f) Director of Administrative Services shall mean the Director of Administrative Services or
his/her designee.
(g) Financial Interest.
(1) Ownership of any interest or involvement in any relationship from which, or as
a result of which, a person has received compensation within the past year, or is
entitled to, or is currently receiving compensation;
(2) Ownership, whether wholly or in part, of any property or business; or
(3) Status as an officer, director, trustee, partner, employee, or manager of a
business.
(h) Goods. Articles moveable at the time of sale, including but not limited to equipment,
supplies and materials.
(i) Gratuity. A gift, payment, loan, advance, deposit of money, or service, presented or
promised in return for or in anticipation of favorable consideration in the procurement
process. "Gratuity" does not include the compensation paid by or due from the City or
from a temporary service agency under contract with the City to an employee in connection
with the employee's services for the City.
(j) Immediate Family. Any spouse, child, stepchild, parent or stepparent of a City employee.
The relationship of parent to child includes both natural and adoptive relationships.
(k) Local Business. A business entity with one or more fixed offices and/or locally taxable
distribution points within the boundaries of the City of Huntington Beach which holds a
current and valid City business license with a Huntington Beach business street address.
(1) Maintenance and Repair Services. Services intended to preserve and/or restore a public
work to a clean, safe, efficient and/or continually usable condition. Maintenance and repair
services may include, but are not limited to: carpentry, electrical,painting,plumbing,
glazing and other craftwork to preserve a facility in the condition for which it was intended;
repairs, cleaning and other operations on machinery and other equipment permanently
attached to a facility as fixtures; the mowing,pruning, and trimming of lawns, grass, trees,
shrubs, bushes and hedges; and the regular removal or relocation of by-products or waste
products accumulated at City facilities as the result of ongoing environmental processes.
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(m) Person. Any individual, partnership, limited partnership, association, corporation, labor
union, committee, club, or governmental, public or quasi-public entity.
(n) Procurement. The acquisition of goods and/or services by the City, including but riot
limited to purchasing,rental or leasing, and all functions and procedures pertaining to such
acquisitions.
(o) Professional Services. 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. Such services include,but are not limited
to, those provided by appraisers, architects, attorneys, engineers, instructors,insurance
advisors,physicians.and other specialized consultants. The procurement of professional
services is governed by Huntington Beach Municipal Code Section 3.03.
(p) Responsible Bidder. A bidder determined by the awarding authority:
(1) To have the ability, capacity, experience and skill to provide the goods and/or
services in accordance with bid specifications;
(2) To have the ability to provide the goods and/or services promptly, or within the
time specified, without delay;
(3) To have equipment, facilities and,resources of such capacity and location to
enable the bidder to provide the goods and/or services;
(4) To be able to provide future maintenance, repair, parts and service for the use of
the goods purchased, if appropriate;
(5) To have a record of satisfactory or better performance under prior contracts with
the City and other purchasers where such bidder has previously been awarded
such contracts;
(6) To have complied with laws, regulations, guidelines and orders governing prior
or existing contracts performed by the bidder, if applicable;
(q) Responsive Bidder. A bidder determined by the Purchasing Officer to have submitted a bid
or proposal which conforms in all material respects to the requirements of the bid or
proposal documents.
(r) Services. Work performed or labor, time and effort expended by an independent
contractor.
(s) Specifications. A description of the physical or functional characteristics or of the nature
of the required goods and/or services.
(t) Surplus Personal Property. Goods owned by the City which are no longer needed or which
are obsolete or unserviceable,property that is a by-product (scrap metal, used tires and oil,
etc.), or any unclaimed, seized or abandoned personal property in the possession or custody
of the department of public safety which may be legally disposed of by the City.
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SECTION 6. Section 3.02.030 of the Huntington Beach Municipal Code is hereby
amended to read as follows:
3.02.030 Officer--Exemption from centralized purchasing_The Director of Administrative
Services may authorize in writing any agency to purchase or contract for specified supplies,
services and equipment independently of the Purchasing Division; but he/she shall require that
such purchases or contracts be made in conformity with the procedures established by this
chapter, and shall further require periodic reports from the agency on the purchases and contracts
made under such written authorization.
SECTION 7. Section 3.02.50 of the Huntington Beach Municipal Code is hereby
amended to read as follows:
3.02.050 Procurement and disposition responsibilities.
(a) The Director or his/her designee represented of the Department requiring goods and
services, other than professional services, shall:
(1) Identify its procurement needs and the availability of funding.
(2) Submit to the Purchasing Officer specifications for the required goods and/or
services.
(3) Participate in the evaluation of bids and proposals, as required.
(4) Inspect goods delivered and services, other than professional services, performed
to determine conformity with the requirements set forth in the bid or proposal
documents and with contractual obligations, authorize payment for conforming
goods and/or services and notify the Purchasing Officer of nonconforming goods
and/or services.
(b) Director of Administrative Services. The Director of Administrative Services shall be
responsible for the procurement of goods and/or services for the City in accordance with
the provisions of this chapter. No procurement of goods and/or services shall be made by
any City employee independently of the Director of Administrative Services except in
cases of emergency, unless otherwise authorized in writing by the City Administrator.
The Director of Administrative Services shall:
(1) Prepare and recommend to the City Administrator operational procedures and
forms for the procurement of goods and/or services in cooperation with the
Department Directors.
(2) Procure or supervise the procurement of all goods and/or services needed in
coordination with the department.
(3) Process the contracts awarded.
(4) Whenever possible, establish standardized specifications and consolidation of
requirements for goods and/or services required by two or more departments.
(5) Determine the types and amounts of bid security and any performance security
acceptable for City procurements.
(6) Be the awarding authority for every procurement of goods and/or services for:
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(i) which the City has an approved budget and sufficient unencumbered
appropriated funds; and
(ii) wherein the cost of which will be fully paid or reimbursed to the City,
regardless of amount.
(7) Review the results of all formal competitive bid and proposal solicitations for
which the City Council is the awarding authority.
SECTION 8. Section 3.02.60 of the Huntington Beach Municipal Code is hereby
amended to read as follows:
3.02.060 Equipment leases. Upon approval of the City Attorney, the Director of Administrative
Services may enter into contracts to lease equipment in the following circumstances:
(a) Budgeted leases. There exists an unencumbered appropriation in the fund account for the
amount of the lease payments for the current fiscal year.
(b) The annual budget for the fiscal year in which the lease is or was entered into provides
that:
(i) The equipment may be leased;
(ii) The useful life of the equipment;
(iii) The lease term;
(iv) The annual lease payment; and
(v) The interest rate.
SECTION 9. Section 3.02.70 of the Huntington Beach Municipal Code is hereby
amended to read as follows:
3.02.070 Methods of procurement.
(a) Small Procurements. Procurements anticipated to cost $30,000 or less in one transaction
shall be made using simplified and cost effective operational procedures and forms without
use of formal or informal bids. Requirements shall not be artificially divided so as to
constitute a small purchase under this subsection.
(b) Formal Competitive Bids. Procurements anticipated to cost more than $30,000 in one
transaction shall be made by issuance of written invitations for bids. Bid documents
include, at a minimum; instructions to bidders; specifications describing the required goods
and/or services; bid forms and schedules; any required bond forms and proposed contract
terms and conditions. The circumstances may require that a contract award be based on
factors in addition to price.
(c) Competitive Negotiation. The Purchasing Officer may establish, and the bid or proposal
documents shall clearly define in a competitive negotiation procurement a two-tiered
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process in which bids or proposals;as first received, constitute preliminary offers only.
Subject to the Purchasing Officer's judgment,the Purchasing Officer shall have the
authority to enter into negotiations with those persons reasonably likely of being consider
for selection for contract award. Following such negotiations, best and final bids or
proposals will be accepted by the Purchasing Officer. Bidders or proposers shall be
accorded fair and equal treatment with respect to,any opportunity for discussion and
revision of bids.or proposals. During negotiation, there shall be no disclosure beyond the
City staff evaluating the matter of any information derived from bids or proposals
submitted by competing bidders or proposers. The contract award shall be made to the
bidder or proposer whose bid or proposal offers the,best value to the City, taking into
consideration price and the evaluation criteria set forth in the bid or proposal documents.
SECTION 10. Section 3.02.80 of the Huntington Beach Municipal Code is hereby
amended to read as follows:
3.02.080 Competitive bidding requirement; exemptions.
(a) Contracts for goods and/or services for which the cost to the City in one transaction will
exceed $30,000 shall be let by formal competitive bidding or proposals pursuant to this
chapter. Procurement requirements shall not be artificially divided so as to avoid the
competitive bidding requirement.
(b) The following are exemptions to the competitive bidding requirements:
(1) Professional or specialized services, as defined by this Chapter;
(2) Emergency procurements, as defined by this Chapter;
(3) Situations where solicitations of bids or proposals would for any reason be
impractical,unavailing or impossible;
(4) Sole source goods or services;
(5) Insurance and bonds;
(6) Public library collection materials or services for the provision of public library
collection materials or other books or periodicals;
(7) Procurements funded by grants, donations or gifts when the special conditions
attached to the grants, donations or gifts require the procurement of particular
goods and/or services;
.(8) Goods and/or services obtained from or through agreement with any
governmental,public or quasi-public entity;
(9) Works of art, entertainment or performance;
(10) Surplus personal property owned by another governmental, public or quasi-
public entity;
(11) Membership dues, conventions, training, and travel arrangements;
(12) Advertisements in magazines, newspapers, or other media;
(13) Goods procured for resale to the public; or
(14) Where competitive bids or proposals have been solicited and no bid or proposal
has been received. In such a situation the Purchasing Officer may proceed to
have the services performed or the goods procured without further competitive
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bidding;
(c ) The Purchasing Officer shall conduct negotiations, as appropriate, as to price, delivery and
terms and may require the submission of cost or pricing data in connection with the award
of a contract which does not require competitive bidding.
(d) Nothing in this section shall preclude the solicitation of competitive bids or proposals,
when possible.
SECTION 11. Section 3.02.090 of the Huntington Beach Municipal Code is hereby
amended to read as follows:
3.02.090 Pre-bid conferences or site inspections. When deemed necessary the Purchasing
Officer is authorized to require bidders or proposers to attend pre-bid conferences or site
inspections prior to the time and date set for receipt of bids or proposals and to consider bidders
or proposers not in attendance as non-responsive.
SECTION 12. Section 3.02.100 of the Huntington Beach Municipal Code is hereby
amended to read as follows:
3.03.100 Advertisement of bidding opportunities.
(a) A notice inviting sealed formal competitive bids or proposals shall be advertised using one
or more methods designed to provide reasonable public notice in a manner which will
permit current information to be disseminated widely.
(b) The notice shall specify the time on or before which bids or proposals will be received;
where and with whom bids or proposals shall be filed; the date, time and place where and
when bids or proposals will be publicly opened and the bids of each bidder declared.
(c) At the bidder's request, and where City deems feasible, bid documents may be transmitted
to the bidder electronically.
SECTION 13. Section 3.02.110 of the Huntington Beach Municipal Code is hereby
amended to read as follows:
3.02.110 Correction or withdrawal of bids.
(a) Before Date and Time for Receipt of Bids. Bids or proposals which contain mistakes
discovered by a bidder before the date and time for receipt of bids may be modified or
withdrawn by written notice to the Purchasing Officer received prior to the deadline.
(b) After Date and Time for Receipt of Bids. A bidder may not change its bid or proposal after
the date and time set for receipt of bids.
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(c) Withdrawal of Bid. A bidder alleging a mistake in a bid or proposal may be permitted to
withdraw its bid or proposal provided that it establishes the following to the satisfaction of
the awarding authority:
(1) A mistake was made;
(2) The bidder gave written notice of the mistake, and the manner in which it occurred, to
the Purchasing Officer within five calendar days following the deadline for receipt of
bids;
(3) The mistake made the price materially different than the bidder intended it to be;
(4) The mistake was made in filling out the bid and not due to error in judgment or to
carelessness-in inspecting the site of the work or in reading the bid documents;
(5) If the awarding authority deems it to be in the best interest of the City, it may allow
the lowest bidder to withdraw its bid and award a contract to the next lowest bidder.
In the event that bid security was required and provided by the lowest bidder, the
amount of the lowest bidder's bid security shall be applied to the difference between
the lowest bid and the next lowest bid and the surplus, if any, shall be returned to the
lowest bidder or the bidder's surety, as applicable.
SECTION 14. Section 3.02.120 of the Huntington Beach Municipal Code is hereby
amended to read as follows:
3.02.120 Receipt of bids or proposals.
(a) Formal Competitive.Bids and Proposals. Sealed bids and proposals submitted in response
to formal competitive bid or proposal solicitations shall be received by the Purchasing
Officer at a time, date and place designated in the bid or proposal documents. Said bids
and proposals shall be identified as such on the outside cover.
(b) Public Opening. Formal competitive bids or proposals, timely received, will be publicly
opened by the Purchasing Officer in the presence of one or more witnesses at the location
designated in the bid notice. If members of the public are present, the names of those
submitting bids and the aggregate bid pricing shall be read aloud at or shortly following the
deadline for receipt of formal competitive bids except those involving competitive
negotiation.
(c) Late Receipt. Formal competitive bids or proposals received after the deadline for receipt
of bids shall not be accepted and shall be returned to the bidder unopened unless necessary
for identification purposes. The Purchasing Officer shall submit written notification to the
bidder stating what the deadline was,when the bid or proposal was actually received, and
that it is being returned because it was received too late.
(d) No Receipt. If no bids or proposals are received in response to a competitive solicitation
for goods and/or services, or if none of the bids or proposals meet the requirements as
specified in the solicitation document, the Purchasing Officer may reissue the solicitation
or the awarding authority may authorize the procurement of the required goods and/or
services without further complying with competitive bidding requirements, or the City may
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Ord. No. 3510
cease the procurement. An authorization to procure without bidding shall be documented
and become part of the procurement records available for public inspection.
SECTION 15. Section 3.02.130 of the Huntington Beach Municipal Code is hereby
amended to read as follows:
3.02.130 Evaluation of bids or proposals.
(a) One Bid Received. In the event that a single bid or proposal is received, the Purchasing
Officer shall have the authority to require the bidder or proposer to submit cost or pricing
data to assist in determining if the price is reasonable. If the awarding authority determines
that a bid price for goods and/or services is not reasonable, it may either reject the bid or it
may authorize the Purchasing Officer to attempt to negotiate a reasonable price with the
bidder or proposer, subject to the awarding authority's acceptance. Negotiation shall be
completed within a reasonable time, as specified by the awarding authority. Should such
negotiation fail, the bid maybe rejected.
(b) Tie Bids. In the event that an identical price is received from two or more responsive and
responsible bidders, and in the judgment of the awarding authority the public interest will
not be served by re-advertising for bids, the awarding authority may authorize the
Purchasing Officer to negotiate for the best possible price. If one of the bidders is a local
business then the tie bid will be awarded to the local bidder without the negotiations.
(c) Irregularities. In considering bids or proposals for any goods and/or services.contract, the
awarding authority may waive, if it wishes to do so, minor defects or irregularities in the
bids or proposals,provided that the discrepancy does not affect the bid or proposal amount
or give the bidder or proposer an advantage over others.
SECTION 16. Section 3.02.140 of the Huntington Beach Municipal Code is hereby
amended to read as follows:
3.02.140 Preparation of bid or proposal documents. Any person, with whom the City has
contracted to prepare; or assist in the preparation of,bid or proposal documents, is ineligible to
submit a bid or proposal for the provision of the goods or the performance of the services so
specified.
SECTION 17. Section 3.02.150 of the Huntington Beach Municipal Code is hereby
amended to read as follows:
3.02.150 Cancellation of solicitations; Rejection of bids.
(a) Cancellation of Solicitations. The Purchasing Officer may cancel competitive bid or
proposal solicitations before the date and time set for receipt of bids or proposals upon a
written determination'that such action is in the City's best interest for reasons including,
but not limited to any of the following:
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Ord. No. 3510
(1) The City no longer requires the goods and/or services, as determined by the City;
(2) The City no longer can reasonably expect to fund the procurement, as determined
by the Director of Administrative Services, City Administrator or City Council;
(3) Proposed amendments to the solicitation would be of such magnitude that a new
solicitation is desirable;
(b) Rejection of Bids. The Purchasing Officer may reject, in whole or in part,bids or
proposals received in response to informal competitive bid or proposal solicitations, and
may reject, in whole or in part,bids or proposals received in response to formal competitive
bid or proposal solicitations. If all bids are rejected, the City has the discretion to
readvertise.
(c) Records. The fact that a solicitation was cancelled or bid or proposal rejected shall be
made part of the procurement records.
SECTION 18. Section 3.02.160 of the Huntington Beach Municipal Code is hereby
amended to read as follows:
3.02.160 Procurement records; Public inspection.
(a) Records Maintenance. The Purchasing Officer shall maintain records for each procurement
which include, at a minimum,the procurement request from the Department; the bid or
proposal documents for the procurement, if any; any and all bids or proposals received; the
basis on which contract award is made; and a copy of any and all contracts awarded. Such
records shall be maintained for a period of time in compliance with state law and the City's
records retention schedule and shall be available for public inspection during normal City
business hours.
(b) Public Inspection. Informal and formal competitive bids not involving competitive
negotiation shall be available for public inspection following the date and time set for
receipt of bids. Informal and formal competitive proposals and formal competitive bids
involving competitive negotiation shall be available for public inspection following
contract award or rejection. The City will not disclose any pricing agreements it may have
during the bidding process.
SECTION 19. Section 3.02.170 of the Huntington Beach Municipal Code is hereby
amended to read as follows:
3.02.170 Bonds and other security insurance requirements.
(a) When Required. The Purchasing Officer shall have the authority to require bid,
performance and payment security or specific types and amounts of insurance coverage for
specific procurements to the extent required by state law or upon a determination that it is
in the best interest of the City to do so.
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Ord. No. 3510
(b) Bid Security. Bid security, if required, shall be submitted with the bid and shall be a
certified check, cashier's check or surety bond issued by an admitted surety insurer
authorized to conduct business in the state of California. If a bidder fails to submit the
required bid security with the bid, the bid shall be deemed nonresponsive. After bids are
opened, bid security is irrevocable for the period-specified in the invitation for bids. If the
successful bidder fails to execute the contract within the time specified, the total amount of
the bid security shall be forfeited to the City. The security of an unsuccessful bidder shall
be returned to the bidder no later than sixty calendar days from the date of contract award.
(c) Performance Security. Performance security, if required, shall be in the form of a bond
acceptable to the City and issued by an admitted surety.insurer authorized to operate in the
state of California.
(d) Form of Bonds. The only bonds acceptable to the City shall be those executed on forms
approved by the City Attorney and included with the bid or proposal documents.
SECTION 20. Section 3.02.180 of the Huntington Beach Municipal Code is hereby
amended to read as follows:
3.02.180 Local business preference.
(a) Subject to the limitations contained in this section, the Purchasing Officer shall extend a
bidding advantage to a local business in the form of a 1%price preference in the evaluation
of bids or proposals for the procurement of goods.
(b) The following contracts are exempt from the provisions of this section:
(1) Contracts funded in whole or in part from grants, donations or gifts to the City if the
provisions of this section conflict with any special conditions attached to the grants,
donations or gifts, provided the special conditions have been approved and accepted
pursuant to the donations policy of the City.
(2) Emergency procurements.
(3) Sole source contracts.
(c) After a due process hearing, should the City Administrator determine that a price
preference was received under this'section through an intentional misstatement, the
recipient of any such price preference shall be subject to a civil penalty of treble the dollar
price preference received or$5,000.00, whichever is greater.
SECTION 21. Section 3.02.190 of the Huntington Beach Municipal Code is hereby
amended to read as follows:
3.02.190 Exempt and emergency procurements. The following purchases and procurements are
exempted from the requirements of this chapter:
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Ord. No. 3510
(a) Public works.construction contracts. Those public works construction contracts, and the
separate procurement of materials and supplies therefor, that are governed by other
applicable laws, including but not limited to the City Charter.
(b) Emergency purchases and procurements. An emergency shall be deemed to exist if.
(1) There is a great public calamity;
(2) There is immediate need to prepare for national or local defense;
(3) There is a breakdown in machinery or an essential service which requires an
immediate procurement in order to safeguard the public health, safety or welfare;
(4) An essential, departmental operation affecting the public health, safety or welfare
would be greatly hampered if the prescribed procurement procedure would cause
an undue delay in the procurement of the needed service.
In case of an emergency which requires the immediate procurement of a commodity or service,
the City Administrator may authorize the Director of Administrative Services to secure by the
open-market procedure, at the lowest obtainable price, any service or commodity regardless of
the amount of the expenditure.
(c) Interagency purchase agreements. Procurements utilizing agreements maintained by other
public agencies for the provision of services or supplies to such agencies are exempt from
the bidding and/or request for proposal process requirements of this chapter.
(1) Cooperative Procurement. Notwithstanding any other provision of this chapter, the
Purchasing Officer may authorize the City's participation with one or more other
governmental, public or quasi-public agencies in a cooperative agreement for the
procurement of goods and/or services, provided that at least one of the agencies has
solicited bids using methods similar to those set forth in this Chapter.
(2) Use of Another Entity's Contract. The Purchasing Officer may authorize the
procurement of goods and/or services through the use of a contract initiated by
another governmental, public or quasi-public entity, provided that the original parties
to the contract agree, the contract was awarded. The contract is for identical or nearly
identical goods and/or services, and the contract resulted from a competitive bid using
methods similar to those required by this chapter.
(3) Mutual Aid. The Purchasing Officer may sell to; acquire from, or use goods
belonging to another government, public or quasi-public agency independent of the
requirements of this chapter and under the terms agreed upon between the parties,
provided that such activity does not adversely affect City services and is approved in
advance in writing by the City Administrator.
(d) Sole-source procurements. In those cases where the procurement of any product or
supply is obtainable only from a single or sole source, based upon the good faith review
of available products and services by the Director of Administrative Services, the
Director of Administrative Services, and with the assistance of the City Attorney, shall
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Ord. No. 3510
negotiate with the purveyor of such equipment, product, supply or service, to the end that
the City receives the desired product, equipment, service or supply on fair and equitable
terms. Examples of acceptable sole source purchases are equipment for which there is no
comparable competitive product, a component or replacement part for which there is no
commercially available substitute and which can be obtained only from the manufacturer,
and an item where compatibility with items in use by the City is the overriding
consideration. Purchases from regulated public utilities may be made pursuant to
applicable tariff without regard to this section.
SECTION 22. Section 3.02.195 is hereby added to Chapter 3.02 of the Huntington
Beach Municipal Code, and reads as follows:
3.02.195 Right to inspect plant and audit records.
(a) Right to Inspect Plant. The City may, at reasonable times, inspect the part of the plant,
place of business or work site of a vendor/contractor or subcontractor at any tier which is
pertinent to the performance of any contract awarded or to be awarded by the City.
(b) Right to Audit Records. The City shall be entitled to audit the books and records of a
vendor/contractor or subcontractor at any tier to the extent that such books, documents,
papers, and records are pertinent to the performance of such contract or subcontract.
SECTION 23. Section 3.02.200 of the Huntington Beach Municipal Code is hereby
amended to read as follows:
3.02.200 Disqualification of vendors. The Director of Administrative Services may, for good
cause appearing:
(a) decline to accept offers,bids or quotations from prospective vendors; and/or
(b) deem a prospective bidder/vendor as nonresponsive or nonresponsible.
A bidder/vendor whose offer, bid or quotation has been declined or has been deemed
nonresponsive or nonresponsible shall have the right to appeal such decision of the Director of
Administrative Services to the City Administrator within a reasonable time after demand made in
writing to the Director of Administrative Services to accept the proffered bid, offer or quotation.
SECTION 24. Section 3.02.210 is hereby added to Chapter 3.02 of the Huntington
Beach Municipal Code, and reads as follows:
3.02.210 Disposition of surplus personal property.
(a) Authority. The Purchasing Officer is authorized to sell or dispose of surplus personal
property having a salvage value in the open market,by public auction, by competitive
sealed bids or by exchange or trade in for new goods. The sale or lease of surplus personal
Olord/jmp/3-02 ord/8 1/O1 13
Ord. No. 3510
property to a governmental, public or quasi-public agency may be without advertisement
for or receipt of bids.
(b) Property with No Salvage Value. Surplus personal property with no salvage value, as
determined by the Purchasing Officer, shall be disposed of in a manner that salvages
recyclable components, if practical.
(c) Unclaimed, Seized or Abandoned Property. The Purchasing Officer is authorized to sell or
dispose of all goods in the possession or custody of the police department which are
unclaimed, seized and/or abandoned and maybe legally disposed of by the City.
(d) Records. The Purchasing Officer shall provide reports to the City Administrator which
indicate surplus personal property disposed of, the method of disposal, and the amounts
recovered from its disposal and shall maintain records for public inspection relative to the
disposal of surplus personal property for a period of time in compliance with state law and
the City's records retention schedule.
(e) Donations. Upon approval in advance in writing of the City Administrator, surplus
personal property may be donated to governmental, public or quasi-public agencies,
charitable or non-profit organizations.
(f) Proceeds of Sale. Proceeds from the sale of surplus personal property shall be deposited
into the appropriate City fund.
SECTION 25. Section 3.02.220 is hereby added to Chapter 3.02 of the Huntington
Beach Municipal Code, and reads as follows:
3.02.220 Ethics.
(a) Statement of Policy. City employees shall discharge their duties impartially so as to assure
fair competitive access to City procurement opportunities by responsible contractors.
Moreover, they shall conduct themselves in such a manner as to foster public confidence in
the integrity of City procurement activities.
(b) Conflict of Interest. No City employee shall participate directly or indirectly in a City
procurement when the employee knows that:
(1) The employee or any member of the employee's immediate family has a financial
interest pertaining to the procurement; or
(2) The employee or any member of the employee's immediate family is negotiating or
has an employment arrangement which is contingent upon or will be affected by the
procurement.
(c) Withdrawal from Participation. Upon discovery of an actual or potential conflict of
interest, an employee shall promptly withdraw from further participation in the
procurement.
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(d) Gratuities. No person shall offer, give or agree to give any City employee any gratuity or
offer of employment in connection with a procurement by the City. No City employee shall
solicit, demand, accept or agree to accept from any other person a gratuity or an offer of
employment in connection with a procurement by the City.
SECTION 26. 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 _,t—day of ontober , 2001.
ayor
ATTEST:
APPROVED AS TO ORM:
City Clerk to-oy-ol a /j
tt'f�-
City Attorney
REVIEWED AND APPROVED:
mi INITIATE APPR5z—
Direefor
City A nistrator o
of Administrative Services
01ord/jmp13-02 ord/8/1/01 15
Ord. No. 3510
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss:
CITY OF HLJNTINGTON BEACH )
I, CONNIE BROCKWAY, 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 the 17th day of September, 2001, and was again read
to said City Council at a regular meeting thereof held on the 1st day of October, 2001,
and was passed and adopted by the affirmative vote of at least a majority of all the
members of said City Council.
AYES: Green, Boardman, Cook, Julien Houchen, Dettloff, Bauer
NOES: None
ABSENT: Garofalo
ABSTAIN: None
I,Connie Brockway CITY CLERK ofthe 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 Independent on
,2001
In accordance with the City Charter of said City City Clerk and ex-officio Clerk
Connie Brockway, City Clerk of the City Council of the City
Depuh,City C1 of Huntington Beach, California
g:/ordinanc/ordbkpg200l.doc
ATTACHMENT 7r3
Ordinance No. �ID
LEGISLATIVE DRAFT
Chapter 3.02
PURCHASNGES DIVISION OF GOODS AND SERVICES
(2259-2/78,2433-7/80,2464-12/80,3144-9/92,3316-1/96,3322-3/96)
Sections:
3.02.010 Established
3.02.015 Purpose
3.02.020 Officer--Duties
3.02.025 Definitions
3.02.030 Officer--Exemptions from centralized purchasing
3.02.040 Procedures
3.02.050�Ehase f supplies, equipfnen and-sef-viees, Procurement and disposition
responsibilities
3.02.060 Equipment leases
3.02.070 F,,,.,,,,,, 1.;.7ding pfeeedi,,o Methods of procurement
3.02.080 Bidder's so,,,,4ty Competitive bidding requirement; exemptions
3.02.090 Bid opening pfoeedwe Pre-bid conferences or site inspections
3.02.100 Bid do Advertisement of bidding opportunities
3.02.110 Awafd of bid-Correction or withdrawal of bids
3.02.120 Repealed, Ora. 2259 2/78 Receipt of bids or proposals
3.02.130 Derf-mane bergs Evaluation of bids or proposals
3.02.140 hifefRial bidding pr-eeea Preparation of bid or proposal documents
3.02.150 Cancellation of solicitations; Rejection of bids
3.02.160 Bids Reear- rete do Procurement records; Public inspection
3.02.170 Inspection and testing of equipment and sen4ees Bonds and other security.
insurance requirements
3.02.180 Focal business preference
3.02.190 Exempt and emergency procurements
3.02.195 Right to inspect plant and audit records
3.02.200 Disqualification of vendors
3.02.210 Disposition of surplus personal property
3.02.220 Ethics
3.02.010 Established. The Pufehasing Divisio Central Services Division of the
Administrative Services Department is established for the purpose of providing for centralized
purchasing of all supplies, services and equipment for the various agencies of the City. (2259-
2/78,2464-12/80)
1egisdrft/mc302-2d/9/5/01 1
3.02.015 Purpose. This chapter is adopted in order to provide a uniform
procedure for contracting for goods and services by the City of Huntington
Beach, to provide for fair and equitable treatment of all persons involved, to
obtain the highest possible value in exchange for public funds, and to
safeguard the quality and integrity of the purchasing and contract process.
3.02.020 Officer--Duties. The Chie Director of Administrative Services shall direct the
activities of the gufehasi*g Central Services Division. The Purchasing Officer shall be
responsible to the Ghie Director of Administrative Services. The N,,.e sing O ffiee-s
all ffin e benefits enjoyed by depai4mefitheads. (2259-2/78, 2464-12/80)
3.02.025 Definitions. For the purposes of this chapter, the following
definitions apply:
(a) Bid or Proposal Documents. The documents, including their attachments
and addenda, which set forth.instructions to bidders or proposers,.and
are disseminated for the purpose of soliciting bids or proposals.
(b) City Administrator shall mean City Administrator or his/her designee.
(c) City Employee. An individual who performs services for the City in the
capacity of an elected or appointed official, or as a compensated employee
of the City or of a temporary services agency retained by the City. "City
employee" does not include independent contractors.
(d) Contract. Agreements, regardless of what they may be labeled, between
the City and one or more other parties for the purchase or disposition of
goods and/or services.
(e) ContractorNendor/Supplier. Any person who has entered into an
agreement with the City for the provision or disposition of goods and/or
services.
(f) Director of Administrative Services shall mean the Director of
Administrative Services or his/her designee.
(g) Financial interest.
(1) Ownership of any interest or involvement in any relationship
from which, or as a result of which, a person has received
1egisdrft/mc302-2d/9/5/01 2
compensation within the past year, or is entitled to, or is
currently receiving compensation;
(2) Ownership, whether wholly or in part, of any property or
business; or
(3) Status as.an officer,Airector, trustee, partner, employee, or
manager of a business.
(h) Goods. Articles moveable at the time of sale, including but not limited to
equipment, supplies and materials.
(i) Gratuity. A gift, payment, loan, advance, deposit of money, or service,
presented or promised in return for or in anticipation of favorable
consideration in the procurement process. "Gratuity" does not include
the compensation paid by or due from the City or from a temporary
service agency under contract with the City to an employee in connection
with the employee's services for the City.
(j) Immediate Family. Any spouse, child, stepchild, parent or stepparent of
a City employee. The relationship of parent to child includes both
natural and adoptive relationships.
(k) Local Business. A business entity with one or more fixed offices and/or
locally taxable distribution points within the boundaries of the City of
Huntington Beach which holds a current and valid City business license
with a Huntington Beach business street address.
(1) Maintenance and Repair Services. Services intended to preserve and/or
restore a public work to a clean, safe, efficient and/or continually usable
condition. Maintenance and repair services may include, but are not
limited to: carpentry, electrical, painting, plumbing, glazing and other
craftwork to preserve a facility in the condition for which it was intended;
repairs, cleaning and other operations on machinery and other
equipment permanently attached to a facility as fixtures; the mowing,
pruning, and trimming of lawns, grass, trees, shrubs, bushes and hedges;
and the regular removal or relocation of by-products or waste products
accumulated at City facilities as the result of ongoing environmental
processes.
1egisdrft/mc302-2d/9/5/01 3
(m) Person. Any individual, partnership, limited partnership, association,
corporation, labor union, committee, club, or governmental, public or
quasi-public entity.
(n) Procurement. The acquisition of goods and/or. services.by the City,
including but not limited to purchasing, rental or leasing, and all
functions and procedures pertaining to such acquisitions.
(o) Professional.Services. 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. Such services include, but are not limited to, those provided
by appraisers, architects, attorneys, engineers, instructors, insurance
advisors, physicians and other specialized consultants. The procurement
of professional services is governed by Huntington Beach Municipal Code
Section 3.03.
(p) Responsible Bidder.. A bidder determined by the awarding authority:
(1) To have the ability, capacity, experience and skill to provide the
goods and/or services in accordance with bid specifications;
(2) To have the ability to provide the goods and/or services
promptly, or within the time specified, without delay;
(3) To have equipment, facilities and resources of such capacity and
location to enable the bidder to provide the goods and/or
services;
(4) To be able to provide future maintenance, repair, parts and
service for the use of the goods purchased, if appropriate;
(5) To have a record of satisfactory or better performance under
prior contracts with the City and other purchasers where such
bidder has previously been awarded such contracts;
(6) To have complied with laws, regulations, guidelines and orders
governing prior or existing contracts performed by the bidder, if
applicable;
(q) Responsive Bidder. A bidder determined by the Purchasing Officer to
have submitted a bid or proposal which conforms in all material respects
to the requirements of the bid or proposal documents.
(r) Services. Work performed or labor, time and effort expended by an
Iegisdrft/mc302-2d/9/5/01 4
independent contractor.
(s) Specifications. A description of the physical or functional characteristics
or of the nature of the required goods and/or services.
(t) Surplus Personal Property. Goods owned by the City which are no
longer needed or which are obsolete or unserviceable, property that is a
by-product (scrap metal, used tires and oil, etc.), or any unclaimed, seized
or abandoned personal property in the possession or custody of the
department of public safety which may be legally disposed of by the City.
3.02.030 Officer--Exemption from centralized purchasing. The chief Director of
Administrative Services may authorize in writing any agency to purchase or contract for
specified supplies, services and equipment independently of the Purchasing Division; but he/she
shall require that such purchases or contracts be made in conformity with the procedures
established by this chapter, and shall further require periodic reports from the agency on the
purchases and contracts made under such written authorization. (2259-2/78, 2464-12/80)
3.02.040 Procedures. Purchase of supplies, services, equipment and the sale of surplus personal
property shall be by procedures provided for in this chapter. (2259-2/78)
3.02.050 Procurement and disposition responsibilities.
(a) The Director or his/her designee represented of the Department requiring
goods and services, other than professional services, shall:
(1) Identify its procurement needs and the availability of funding.
(2) Submit to the Purchasing Officer specifications for the required
goods and/or services.
(3) Participate in the evaluation of bids and proposals, as required.
(4) Inspect goods delivered and services, other than professional
services, performed to determine conformity with the
requirements set forth in the bid or proposal documents and with
contractual obligations, authorize payment for conforming goods
and/or services and notify the Purchasing Officer of
nonconforming goods and/or services.
(b) Director of Administrative Services. The Director of Administrative
Services shall be responsible for the procurement of goods and/or
services for the City in accordance with the provisions of this chapter.
No procurement of goods and/or services shall be made by any City
1egisdrft/mc302-2d/9/5/01 5
employee independently of the Director of Administrative Services
except in cases of emergency, unless otherwise authorized in writing by
the City Administrator. The Director of Administrative Services shall:
(1) Prepare and recommend to.the City Administrator operational
procedures and forms for the procurement of goods and/or
services in cooperation with the Department Directors.
(2) Procure or supervise the procurement of all goods and/or services
needed in coordination with the department.
(3) Process the contracts awarded.
(4) Whenever possible, establish standardized specifications and
consolidation of requirements for goods and/or services required
by two or more departments.
(5) Determine the types and amounts of bid security and any
performance security acceptable for City procurements.
(6) Be the awarding authority for every procurement of goods and/or
services for:
(i) which the City has an approved budget and sufficient
unencumbered appropriated funds; and
(ii) wherein the cost of which will be fully paid or reimbursed to
the City, regardless of amount.
(7) Review the results of all formal competitive bid and proposal
solicitations for which the City Council is the awarding authority.
-.Ae. ifAe eentraets and issue purchase order-for-the pttfehase of s"plies, ser-Viees and
equipment ilk-the folio sta-nees: (2257 2/79, 24611 /80, 3322 1/96)
against which the piffeliase is to be ehar-g Of
dollars ($500.00), in whieh ease the pur-chase may be dir-eeted to the finance divisie
3.02.060 Equipment leases. Upon approval of the City Attorney, the Chief Director of
Administrative Services may enter into contracts to lease equipment in the following
circumstances: (2259-2/78, 2464-12/80, 3322-3/96)
legisdrft/mc302-2d/9/5/01 6
(a) Budgeted leases. There exists an unencumbered appropriation in the fund account for the
amount of the lease payments for the current fiscal year. (3322-3/96)
(b) The annual budget for the fiscal year in which the lease is or was entered into provides
that: (3322-3/96)
(i) The equipment may be leased; (3322-3/96)
(ii)The useful life of the equipment; (3322-3/96)
(iii) The lease term; (3322-3/96)
(iv) The annual lease payment; and (3322-3/96)
(v) The interest rate. (3322-3/96)
supplies, sI...'ee., e. equipment of estimated vaitte greater-than fifteen thousand dollars ($15,000
shall be by oompetifive ATAten bid, and shall be awarded pur-stlant to the proeedur-es pr-eseribed
3.02.070 Fefmal bidding or-peedur-e. Exeept as other-wise provided in this ehapter-,pufehase o
3.02.070 Methods of procurement.
(a) Small Procurements. Procurements anticipated to cost $30,000 or less in
one transaction shall be made using simplified and cost effective
operational procedures and forms without use of formal or informal bids.
Requirements shall not be artificially divided so as to constitute a small
purchase under this subsection.
(b) Formal Competitive Bids. Procurements anticipated to cost more than
$30,000 in one transaction shall be made by issuance of written
invitations for bids. Bid documents include, at a minimum; instructions
to bidders; specifications describing the required goods and/or services;
bid forms and schedules; any required bond forms and proposed contract
terms and conditions. The circumstances may require that a contract
award be based on factors in addition to price.
(c) Competitive Negotiation. The Purchasing Officer may establish, and the
bid or proposal documents shall clearly define in a competitive
negotiation procurement a two-tiered process in which bids or proposals,
as first received, constitute preliminary offers only. Subject to the
Purchasing Officer's judgment, the Purchasing Officer shall have the
authority to enter into negotiations with those persons reasonably likely
of being consider for selection for contract award. Following such
legisdrft/mc302-2d/9/5/01 7
negotiations, best and final bids or proposals will be accepted by the
Purchasing Officer. Bidders or proposers shall be accorded fair and
equal treatment with respect to any opportunity for discussion and
revision of bids or proposals. During negotiation, there shall be no
disclosure beyond the City staff evaluating.the matter-of any information
derived from bids or proposals submitted by competing bidders or
proposers. The contract award shall be made to the bidder or proposer
whose bid or proposal offers the best value to the City, taping into
consideration price and the evaluation criteria set forth in the bid or
proposal documents.
3.02.080 Bidder's seeud. j,!, In pr-oettr-emen4s wher-e competitive bidding is titilized, the Chief o
deposit not to exeeed 25 pereent of the amount of bid. Unsu essful bidders shall be m4itled to
return of h* Pen wwafds to another, A sueeessful bidder- shall forfeit his bid seeHfit
upon his refusal or-failure to exeeute the eontraet within ten (10) days after-the notiee of awar-d of
eontraet has been mailed, unless the City is respoiisible for-the delay. The Chief o
exeeute the eentr-aet, award the eentmet to the next lowest r-esponsible bidder, in such ease, the
,amount of the original lowest bidder's seettfity may be applied to the differ-enee between the low
bid and the seeend lowest bid, and the remainder, if any, shall be r-ettifned to the defattiting
3.02.080 Competitive bidding requirement; exemptions.
(a) Contracts for goods and/or services for which the cost to the City in one
transaction will exceed $30,000 shall be let by formal competitive bidding
or proposals pursuant to this chapter. Procurement requirements shall
not be artificially divided so as to avoid the competitive bidding
requirement.
(b) The following are exemptions to the competitive bidding requirements:
(1) Professional or specialized services, as defined by this Chapter;
(2) Emergency procurements, as defined by this Chapter;
(3) Situations where solicitations of bids or proposals would for any
reason be impractical, unavailing or impossible;
(4) Sole source goods or services;
(5) Insurance and bonds;
(6) Public library collection materials or services for the provision
of public library collection materials or other books or
1egisdrft/mc302-2d/9/5/01 g
periodicals;
(7) Procurements funded by grants, donations or gifts when the
special conditions attached to the grants, donations or gifts
require the procurement of particular goods and/or services;
(8) Goods and/or services obtained from or through agreement with
any governmental, public or quasi-public entity;
(9) Works of art, entertainment or performance;
(10) Surplus personal property owned by another governmental,
public or quasi-public entity;
(11) Membership dues, conventions, training, and travel
arrangements;
(12) Advertisements in magazines, newspapers, or other media;
(13) Goods procured for resale to the public; or
(14) Where competitive bids or proposals have been solicited and no
bid or proposal has been received. In such a situation the
Purchasing Officer may proceed to have the services performed
or the goods procured without further competitive bidding;
(c ) The Purchasing Officer shall conduct negotiations, as appropriate, as to
price, delivery and terms and may require the submission of cost or
pricing data in connection with the award of a contract which does not
require competitive bidding.
(d) Nothing in this section shall preclude the solicitation of competitive bids
or proposals, when possible.
3.02.090 —Rid --pleffif-19-pr-ocedur-e. Bids shall be submitted to the Chief of Administr-ative Sefvie
in a sealed envelope wid shall be .*-'-...'-*--.--' as stieh on the outside eever, Etwelopes designated
bids shall be opened in publie at the tifne and plaee stated in the r-equest for-quetation.
tabulation of all bids tendered shall be open for-publie inspeetion dttfing regular-business hE)Hfs
for-a period or not less tha-a thirty(30) ealendaf days after the award. (2259 2,178, 246 12,180)
3.02.090 Pre-bid conferences or site inspections. When deemed necessary the
Purchasing Officer is authorized to require bidders or proposers to attend
pre-bid conferences or site inspections prior to the time and date set for
receipt of bids or proposals and to consider bidders or proposers not in
attendance as non-responsive.
.-Ject -.-y or- all bids tendered. He may waive the infbfmality of any bid presented to him. (2259
2/78 2464 12/80)
legisdrffmc302-2d/9/5/01 9
3.03.100 Advertisement of bidding opportunities.
(a) A notice inviting sealed formal competitive bids or proposals shall be
advertised using one or-more methods designed to provide reasonable
public notice,in a manner which will permit current information to be
disseminated widely.
(b) The notice shall specify the time on or before which bids or proposals will
be received; where and with whom bids or proposals shall be filed; the
date, time and place where and when bids or proposals will be publicly
opened and the bids of each bidder declared.
(c) At the bidder's request, and where City deems feasible, bid documents
may be transmitted to the bidder electronically.
3.02.110 A-A,afd of bid. The award shall be to the lowest aceeptable and responsible bid
exeept . otherwise provided herein. n<,,ar-d may be by item if Chic o n,�,, inistr-alive
, �l1U1111111J 11 LLI.1YV -
Sei=viees deems stteh manner-of awafd to be in the best interests of the City. Exeept as expressl�
r-equired by City
, in the ease of informal fafmal bid submitted by a 1VV(41 lIlUUVi, t11V
afnetint of said bid by 1% for-that part of the pur-ehases upon whieh the Gity will pay sales tax. 1
tie law bids r-esult fr-ein this reduetion, quality and sen4ee being equal, the eentr-act shall be
awarded to a loeal bidder, The one (11%) adjustment is afforded to loeal vendors to reeagnize
"Loeal Bi
dder-",
as that tefm is used
herein, shall be defined as a fifni or-individualwhe r-egularly maintains a plaee ef business and-
tfansaets business in, or maintains of mer-ehandise for sale f and is beensed 7
pays business taxes to, the Gity ef (2259-2/78,2464�12/80, 3144 W92)
3.02.110 Correction or withdrawal of bids.
(a) Before Date and Time for Receipt of Bids. Bids or proposals which
contain mistakes discovered by a bidder before the date and time for
receipt of bids may be modified or withdrawn by written notice to the
Purchasing Officer received prior to the deadline.
(b) After Date and Time for Receipt of Bids. A bidder may not change its bid
or proposal after the date and time set for receipt of bids.
(c) Withdrawal of Bid. A bidder alleging a mistake in a bid or proposal may
be permitted to withdraw its bid or proposal provided that it establishes
the following to the satisfaction of the awarding authority:
legisdrft/mc302-2d/9/5/01 10
(1) A mistake was made;
(2) The bidder gave written notice of the mistake, and the manner in
which it occurred, to the Purchasing Officer within five calendar
days following the deadline for receipt of bids;
(3) The mistake made the price materially different than the bidder
intended it to be;
(4) The mistake was made in filling out the bid and not due to error in
judgment or to carelessness in inspecting the site of the work or in
reading the bid documents;
(5) If the awarding authority deems it to be in the best interest of the
City, it may allow the lowest bidder to withdraw its bid and award a
contract to the next lowest bidder. In the event that bid security was
required and provided by the lowest bidder, the amount of the lowest
bidder's bid security shall be applied to the difference between the
lowest bid and the next lowest bid and the surplus, if any, shall be
returned to the lowest bidder or the bidder's surety, as applicable.
3.02.120 Receipt of bids or proposals.
(a) Formal Competitive Bids and Proposals. Sealed bids and proposals
submitted in response to formal competitive bid or proposal solicitations
shall be received by the Purchasing Officer at a time, date and place
designated in the bid or proposal documents. Said bids and proposals
shall be identified as such on the outside cover.
(b) Public Opening. Formal competitive bids or proposals, timely received,
will be publicly opened by the Purchasing Officer in the presence of one
or more witnesses at the location designated in the bid notice. If members
of the public are present, the names of those submitting bids and the
aggregate bid pricing shall be read aloud at or shortly following the
deadline for receipt of formal competitive bids except those involving
competitive negotiation.
(c) Late Receipt. Formal competitive bids or proposals received after the
deadline for receipt of bids shall not be accepted and shall be returned to
the bidder unopened unless necessary for identification purposes. The
Purchasing Officer shall submit written notification to the bidder stating
what the deadline was, when the bid or proposal was actually received,
and that it is being returned because it was received too late.
legisdrft/mc302-2d/9/5/01 I I
(d) No Receipt. If no bids or proposals are received in response to a
competitive solicitation for goods and/or services, or if none of the bids or
proposals meet the requirements as specified in the solicitation document,
the Purchasing Officer may reissue the solicitation or the awarding
authority may authorize the procurement of the required goods and/or
services without further complying with.competitive bidding
requirements, or the City may cease the procurement. An authorization
to procure without bidding shall be documented and become part of the
procurement records available for public inspection.
a per-fenRanee bond before making any awar-d er entering into any eentmet in stte.h.
amount as he shall find feasonably neeessafy to protect the best intefests of the CA),. 11'111- Q..''
amount thereof shall e desefibed in the notiees inviting bids. (2259 3.02.130 Per-fofmanee bonds. The Chief of Adfninistr-a4ive Serwiees shall have atitherity to
3.02.130 Evaluation of bids or proposals.
(a) One Bid Received. In the event that a single bid or proposal is received,
the Purchasing Officer shall have the authority to require the bidder or
proposer to submit cost,or pricing data to assist in determining if the
price is reasonable. If the awarding authority determines that a bid price
for goods and/or services is not reasonable, it may either reject the bid or
it may authorize the Purchasing Officer to attempt to negotiate a
reasonable price with the bidder or proposer, subject to the awarding
authority's acceptance. Negotiation shall be completed within a
reasonable time, as specified by the awarding authority. Should such
negotiation fail, the bid may be rejected.
(b) Tie Bids. In the event that an identical price is received from two or more
responsive and responsible bidders, and in the judgment of the awarding
authority the public interest will not be served by re-advertising for bids,
the awarding authority may authorize the Purchasing Officer to negotiate
for the best possible price. If one of the bidders is a local business then the
tie bid will be awarded to the local bidder without the negotiations.
(c) Irregularities. In considering bids or proposals for any goods and/or
services contract, the awarding authority may waive, if it wishes to do so,
minor defects or irregularities in the bids or proposals, provided that the
1cgisdrft/mc302-2d/9/5/01 12
discrepancy does not affect the bid or proposal amount or give the bidder
or proposer an advantage over others.
of an estimated value in the amount of fifteen thousand dollars ($15,000) or less may be made
3.02.140 Preparation of bid or proposal documents. Any person, with whom
the City has contracted to prepare, or assist in the preparation of, bid or
proposal documents, is ineligible to submit a bid or proposal for the provision
of the goods or the performance of the services so specified.
pur-ehases, as defined in seetion 3 02.190, shall, wher-ever-possible, be h8-A-Sed] 18L. -at least three (3).
bids or-quet-atiens. (225 9-2,17 8, 2464-12/80
3.02.150 Cancellation of solicitations; Resection of bids.
(a) Cancellation of Solicitations. The Purchasing Officer may cancel
competitive bid or proposal solicitations before the date and time set for
receipt of bids or proposals upon a written determination that such
action is in the City's best interest for reasons including, but not limited
to any of the following:
(1) The City no longer requires the goods and/or services, as
determined by the City;
(2) The City no longer can reasonably expect to fund the
procurement, as determined by the Director of Administrative
Services, City Administrator or City Council;
(3) Proposed amendments to the solicitation would be of such
magnitude that a new solicitation is desirable;
(b) Rejection of Bids. The Purchasing Officer may reject, in whole or in
part, bids or proposals received in response to informal competitive bid
or proposal solicitations, and may reject, in whole or in part, bids or
proposals received in response to formal competitive bid or proposal
solicitations. If all bids are rejected, the City has the discretion to
readvertise.
1e.-isdrft/mc302-2d/9/5/01 13
(c) Records. The fact that a solicitation was cancelled or hid or proposal
rejected shall be made part of the procurement records.
pur-ehases and pr-eettr-ements for- a period of one year- aftei:the stibmission of the bid, ineluding a
3.02.16OBids Reeer-ds r-efefttien. The Chief of AdministfativeSen,iees shall keep a record of
3.02.160 Procurement records; Public inspection.
(a) Records Maintenance. The Purchasing Officer shall maintain records for
each procurement which include, at a minimum, the procurement request
from the Department; the bid or proposal documents for the
procurement, if any; any and all bids or proposals received; the basis on
which contract award is made; and a copy of any and all contracts
awarded. Such records shall be maintained for a period of time in
compliance with state law and the City's records retention schedule and
shall be available for public inspection during normal City business
hours.
(b) Public Inspection. Informal and formal competitive bids not involving
competitive negotiation shall be available for public inspection following
the date and time set for receipt of bids. Informal and formal competitive
proposals and formal competitive bids involving competitive negotiation
shall be available for public inspection following contract award or
rejection. The City will not disclose any pricing agreements it may have
during the bidding process.
P-n44fefmanee with the speeif4eations set feAh in the order-or-eentraet. The Chief 0
Administrative Sen4ees shall have atithefity to requir-e ehemieal and physieal tests of samples-
submitted with bids and samples of deliveries whieh are neoessar-Y to detefmine thei
3.02.170 Bonds and other security; insurance requirements.
(a) When Required. The Purchasing Officer shall have the authority to
require bid, performance and payment security or specific types and
amounts of insurance coverage for specific procurements to the extent
required by state law or upon a determination that it is in the best
interest of the City to do so.
Iegisdrft/mc302-2d/9/5/01 14
(b) Bid Security. Bid security, if required, shall be submitted with the bid
and shall be a certified check, cashier's check or surety bond issued by an
admitted surety insurer authorized to conduct business in the state of
California. If a bidder fails to submit the required bid security with the
bid, the bid shall be deemed nonresponsive. After bids are opened, bid
security is irrevocable for the period specified in the invitation for bids.
If the successful bidder fails to execute the contract within the time
specified, the total amount of the bid security shall be forfeited to the
City. The security of an unsuccessful bidder shall be returned to the
bidder no later than sixty calendar days from the date of contract award.
(c) Performance Security. Performance security, if required, shall be in the
form of a bond acceptable to the City and issued by an admitted surety
insurer authorized to operate in the state of California.
(d) Form of Bonds. The only bonds acceptable to the City shall be those
executed on forms approved by the City Attorney and included with the
bid or proposal documents.
Administr-ative Sefviees, at sueh times and in sueh form as he shall pr-eser-ibe, r-epefts showing all
supplies and equipment whieh are no lenger-used or-whieh have beeeme obsolete or-wom out,
The Chief of Administr-a4ive Sen4ees shall have author-ity to sell all supplies and equipffleH4
whieh eannot be used by any ageney or-whieh have beeome uns-uitable for-Gity use, or to
exehange the same fef, or-tfade in the same on, new supplies and equipment. (2259 2,178, 2464
3.02.180 Sumius stipplies and equip-ment. All us"..., shall submit to the Chief 14
3.02.180 Local business preference.
(a) Subject to the limitations contained in this section, the Purchasing Officer
shall extend a bidding advantage to a local business in the form of a 1%
price preference in the evaluation of bids or proposals for the
procurement of goods.
(b) The following contracts are exempt from the provisions of this section:
(1) Contracts funded in whole or in part from grants, donations or gifts
to the City if the provisions of this section conflict with any special
conditions attached to the grants, donations or gifts, provided the
special conditions have been approved and accepted pursuant to the
donations policy of the City.
legisdrft/mc302-2d/9/5/01 15
(2) Emergency procurements.
(3) Sole source contracts.
(c) After a due process hearing, should the City Administrator determine
that a price preference.was received under this section through an
intentional misstatement, the recipient of any such price-preference shall
be subject to a civil penalty of treble the dollar price preference received
or $5,000.00, whichever is greater.
3.02.190 Exempt and emergency procurements. The following purchases and procurements are
exempted from the requirements of this chapter:
(a) Public works construction contracts. 'Those public works construction
contracts, and the separate procurement of materials and supplies
therefor, that are governed by other applicable laws, including but not
limited to the City Charter.
(a)(b) Emergency purchases and procurements. An emergency shall be deemed to exist if:
(1) There is a great public calamity;
(2) There is immediate need to prepare for national or local defense;
(3) There is a breakdown in machinery or an essential service which requires an
immediate procurement in order to safeguard the public health, safety or welfare;
(4) An essential, departmental operation affecting the public health, safety or welfare
would be greatly hampered if the prescribed procurement procedure would cause
an undue delay in the procurement of the needed service.
In case of an emergency which requires the immediate procurement of a commodity or service,
the City Administrator may authorize the Chief Director of Administrative Services to secure
by the open-market procedure, at the lowest obtainable price, any service or commodity
A full o oi4 of the st f'all ergene ,
regardless of the amount of the expenditure. �� Y.,�. .,� �..., .....,�....,�.......... ... .... ........D.,__.,,
purehases shall be submitted to the City Administr-ato .
(b)(c) interagency purchase agreements. Procurements utilizing purehasing agreements
maintained by other public agencies for the provision of services or supplies to such
agencies are exempt from the bidding and/or request for proposal process
requirements of this chapter.
(1) Cooperative Procurement. Notwithstanding any other provision of
this chapter, the Purchasing Officer may authorize the City's
participation with one or more other governmental, public or quasi-
public agencies in a cooperative agreement for the procurement of
goods and/or services, provided that at least one of the agencies has
Iegisdrfdmc302-2d/9/5/01 16
solicited bids using methods similar to those set forth in this Chapter.
(2) Use of Another Entity's Contract. The Purchasing Officer may
authorize the procurement of goods and/or services through the use
of a contract initiated by another governmental, public or quasi-
public entity, provided that the original parties to the contract agree,
the contract was awarded. The contract is for identical or nearly
identical goods and/or services, and the contract resulted from a
competitive bid using methods similar to those required by this
chapter.
(3) Mutual Aid. The Purchasing Officer may sell to, acquire from, or
use goods belonging to another government, public or quasi-public
agency independent of the requirements of this chapter and under
the terms agreed upon between the parties, provided that such
activity does not adversely affect City services and is approved in
advance in writing by the City Administrator.
(c)(d) Sole-source procurements. In those cases where the procurement of any product or
supply is obtainable only from a single or sole source, based upon the good faith
review of available products and services by the Director of
Administrative Services, the Chie Director of Administrative Services, upon
appr-eval of the City ^dmin strat^r, and with the assistance of the City Attorney Armes
designee, shall negotiate with the purveyor of such equipment, product, supply or service,
to the end that the City receives the desired product, equipment, service or supply on fair
and equitable terms. Examples of acceptable sole source purchases are
equipment for which there is no comparable competitive product, a
component or replacement part for which there is no commercially
available substitute and which can be obtained only from the
manufacturer, and an item where compatibility with items in use by the
City is the overriding consideration. Purchases from regulated public utilities
may be made pursuant to applicable tariff without regard to this section.
of supplies re exempt ffom the r-equifements of this ehaptef when the
estimatedvalue of the items or- seiwices to be pr-oetir-ed is five thousand dollars ($5,000)
or loses (3316 1,196)
(e) Qep+vefitivevmzcreice. cvrrrperm-c'c-vicr C crrccrmehvu v
Procurement; any pfoetife at situation where it appeat!s that the interests of
the Gity would be better-sefved by utilizing an aftemative method of pr-oeufem n4, the
legisdrft/mc302-2d/9/5/01 17
„
the tefm is used herein, ineludes but is not limited to eentr-act awafd after negotiatio
betNveen fepfesen4a4ives of the City and one or-mor-e prospective vendor-s-.
applieable laws, ineluding but not 1im to to the G ty('hafte . (2259 2/78, 2433 740,
//V 40
,
22
3.02.195 Fight to inspect plant and audit records.
(a) Right to Inspect Plant. The City may, at reasonable times, inspect the
part of the plant, place of business or work site of a vendor/contractor or
subcontractor at any tier which is pertinent to the performance of any
contract awarded or to be awarded by the City.
(b) Right to Audit Records. The City shall be entitled to audit the books and
records of a vendor/contractor or subcontractor at any tier to the extent
that such books, documents, papers, and records are pertinent to the
performance of such contract or subcontract.
3.02.200 Disqualification of vendors. The Chief Director of Administrative Services may, for
good cause appearing:
(a) decline to accept offers,bids or quotations from prospective vendors; and/or
(b) deem a prospective bidder/vendor as nonresponsive or nonresponsible.
A bidder/vendor whose offer,bid or quotation has been declined or has been deemed
nonresponsive or nonresponsible shall have the right to appeal such decision of the Chie
Director of Administrative Services to the City Administrator within a reasonable time after
demand made in writing to the Chief Director of Administrative Services to accept the
proffered bid, offer or quotation. (2259-2/78, 2464-12/80)
3.02.210 Disposition of surplus personal property.
(a) Authority. The Purchasing Officer is authorized to sell or dispose of
surplus personal property having a salvage value in the open market, by
public auction, by competitive sealed bids or by exchange or trade in for
new goods. The sale or lease of surplus personal property to a
governmental, public or quasi-public agency may be without
advertisement for or receipt of bids.
]eaisdrft/mc302-2d/9/5/01 18
(b) Property with No Salvage Value. Surplus personal property with no
salvage value, as determined by the Purchasing Officer, shall be disposed
of in a manner that salvages recyclable components, if practical.
(c) Unclaimed, Seized or Abandoned Property. The Purchasing Officer is
authorized to sell or dispose of all goods in the possession or custody of
the police department which are unclaimed, seized and/or abandoned and
may be legally disposed of by the City.
(d) Records. The Purchasing Officer shall provide reports to the City
Administrator which indicate surplus personal property disposed of, the
method of disposal, and the amounts recovered from its disposal and
shall maintain records for public inspection relative to the disposal of
surplus personal property for a period of time in compliance with state
law and the City's records retention schedule.
(e) Donations. Upon approval in advance in writing of the City
Administrator, surplus personal property may be donated to
governmental, public or quasi-public agencies, charitable or non-profit
organizations.
(f1 Proceeds of Sale. Proceeds from the sale of surplus personal property
shall be deposited into the appropriate City fund.
3.02.220 Ethics.
(a) Statement of Policy. City employees shall discharge their duties
impartially so as to assure fair competitive access to City procurement
opportunities by responsible contractors. Moreover, they shall conduct
themselves in such a manner as to foster public confidence in the integrity
of City procurement activities.
(b) Conflict of Interest. No City employee shall participate directly or
indirectly in a City procurement when the employee knows that:
(1) The employee or any member of the employee's immediate family
has a financial interest pertaining to the procurement; or
1egisdrft/mc302-2d/9/5/01 19
(2) The employee or any member of the employee's immediate family is
negotiating or has an employment arrangement which is contingent
upon or will be affected by the procurement.
(c) Withdrawal from Participation. Upon discovery of an actual or potential
conflict of interest, an employee shall promptly withdraw from further
participation in the procurement.
(d) Gratuities. No person shall offer, give or agree to give any City employee
any gratuity or offer of employment in connection with a procurement by
the City. No City employee shall solicit, demand, accept or agree to accept
from any other person a gratuity or an offer of employment in connection
with a procurement by the City.
Iegisdrft/mc302-2d/9/5/01 20
p�.
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3
i
ORDINANCE NO. 3511
AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH
AMENDING CHAPTER 3.03 OF THE HUNTINGTON BEACH MUNICIPAL
CODE RELATING TO THE CONTRACTING OF PROFESSIONAL SERVICES
The City Council of the City of Huntington Beach does hereby ordain as follows:
SECTION 1. Section 3.03.010 is hereby deleted in its entirety.
SECTION 2. Section 3.03.020 of the Huntington Beach Municipal Code is hereby
amended to read as follows:
3.03.020 Definitions.
(a) "Consultant" means any provider of services under this chapter as an individual,partnership,
corporation or otherwise.
(b) "Director" means the Department Head or his/her designee vested with the authority to
administer the provisions of this chapter with respect to contracting for services. (20475/76,
ID
25901/83)
(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.
SECTION 3. Section 3.03.060 of the Huntington Beach Municipal Code is hereby
amended to read as follows:
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 City
Administrator. Upon approval by the City Administrator, 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.
(b) Except in extraordinary circumstances, the Director, or his designee, shall request informal
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, select the consultant from
01 ord/jmp/3-03ord/9/1 1/01 1
Ord. No. 3511
the responsible proposals submitted to him, deemed to be the most highly qualified to
provide the services required.
(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.
(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.
SECTION 4. Section 3.03.080 of the Huntington Beach Municipal Code is hereby
amended to read as follows:
3.03.080 Exempt and emergency 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;
2. There is immediate need to prepare for national or local defense;
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;
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.
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.
(b) Other interagency Agreements. Procurements utilizing contractual agreements maintained
by other public agencies for the provision of professional services to such 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.
SECTION 5. Section 3.03.090 is hereby deleted in its entirety.
01 ord'jmp/3-03ord/9/11/01 2
Ord. No. 3511
SECTION 6. Section 3.03.100 of the Huntington Beach Municipal Code is hereby
amended to read as follows:
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.
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.
SECTION 7. Section 3.03.110 is deleted in its entirety.
SECTION 8. 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. However, at no time shall
an agreement be amended to extend an agreement beyond three years from receipt of the original
request for proposals without compliance with the bid procedure established by Huntington Beach
Municipal Code section 3.03.060.
SECTION 9. 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 1st day of October , 2001.
ayor
ATTEST:
APPROVED AS TO FORM:
City Clerk (a-04'a
-"City Attorney
REVIEWED AND APPROVED: _
INITIATED'AR-0 APPR ED:
City Adifiinistrator
Director f Admmis ive Services
01 ord/jmp/3-03ord/9/1 1/01 3
Ord. No. 3511
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, CONNIEBROCKWAY, 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 the 17th day of September, 2001, and was again read
to said City Council at a regular meeting thereof held on the 1st day of October, 2001,
and was passed and adopted by the affirmative vote of at least a majority of all the
members of said City Council.
AYES: Green, Boardman, Cook, Julien Houchen, Dettloff, Bauer
NOES: None
ABSENT: Garofalo
ABSTAIN: None
I,Connie Brockway 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 Independent on
,2001 .
In accordance with the City Charter of said City City Clerk and ex-officio Clerk
Connie Brockway, City Clerk of the City Council of the City
Deputy City Clerk of Huntington Beach, California
g:/o rd in a nc/o rd b kpg 2001.d oc
A T,
r;
Ordinance No. ��
LEGISLATIVE DRAFT
Chapter 3.03
PROFESSIONAL SERVICES
(20475/76,246412/80,25901/83,29457/88,30974/91,337511/97)
Sections:
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
3.03.100 Authorization by Department Heads
3.03.120 Existing agreements
3.03.010 ro This ,hapto is adopted raor to pfovide a ttnifefm pfoeed o
ee ntrav i ng for-eeftain services by the City of'Huntington Be ..1,
Rnnw4&zcnnii"
3.03.020 Definitions.
(a) "Consultant" means any provider of services under this chapter as an individual,
partnership, corporation or otherwise. (20475/76,25901/83)
(b) "Director" means the Department Head or his/her authefized fepfesent ties designee
vested with the authority to administer the provisions of this chapter with respect to
contracting for services. (20475/76,25901/83)
(e) "Lieensees/Lessees" are any persons or- entities who eentraet with the Gity for-the use o
„bl; pr-opef-
(O(c) "Professional Services" means those services,which r-,,-..- - S.-eial skit ^ reftise
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 Sservices shall include but not be
limited to the€ollowing—Tthose services by indepera^r* ^ ntfaet^rn provided by
1egisdrft/mc303-2d/8/28/01 1
appraisers, architects, attorneys, engineers, instructors, insurance
advisors, physicians and other specialized consultants such as legal data
testing,
(20475/76,25901/83,337511/97)
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. (20475/76)
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 City Administrator. Upon approval by the City Administrator, 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.
(b) Except in extraordinary circumstances, the Director, or his designee, shall request
informal 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, select the consultant
from the responsible proposals submitted to him, deemed to be the most highly qualified
to provide the services required.
(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. The final agreement, if ever- $20 inn shall be appr-oved by the
Git 'C"""^''. (337511/97)
(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.
1egisdrft/mc303-2d/8/28/01 2
(e) The City Attorney shall counsel and advise City officials in the implementation of this
chapter. (20475/76,25901/83)
3.03.080 Exempt and emergency procedures. The need for certain budgeted and emergency and
exempted procurements are recognized.
(a) An emergency shall be deemed to exist if-
(-a) 1. There is a great public calamity;
(b)2. There is immediate need to prepare for national or local defense;
(e)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;
0)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.
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.
W(b) Other interagency pub
lie agencyeontrac4-aAgreements. Procurements
utilizing contractual agreements maintained by other public agencies for the provision of
professional services to such 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 Gity ^dministrato Department Director. (337511/97)
Depaftmen4 Dir-eetor-to seetir-e by the open may-ket pfoeedur-e, at the lowest obtainable
expenditure. A full repoft of the eir-etimstanees of all emer-geney pufehases shall be filed with the
City Couneil by the City Administrator- a+id shali be entered in the minutes of said qo4
6,2 6412/90,25901,/83
3.03.100 Authorization by Department Hea4sDirectors. The head Director of any
department for which such services are required maY, v�,ith the appfO ,^' Of the City
^amity str^*^r contract directly for any professional services in theof Twenty Thousan
Dollafs , when procurement of such services has been budgeted and there
1egisdrft/mc303-2d/8/28/01 3
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. (20475/76,29457188,3 375 1 1/97)
A complete copy of the executed agreement and the names of the consultants
who submitted proposals shall be forwarded to the City Clerk.
3.03.110 E3zemj4iens for-pr-ivate funding. Exempted hfefffi-4HP this ehapter afe thesee
fees and other-pr-ivate funding. The City Administratef:shall hm,e the autherity to enter into
obligated by the eonlr-aet. The Gity Administr-a4or shall also have the attthOfit�,tO entef ifltE)
iI.—veo urn ' appr-eved by ,
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. However,
at no time shall an agreement be amended to extend an agreement beyond
three years from receipt of the original request for proposals without
compliance with the bid procedure established by Huntington Beach
Municipal Code section 3.03.060.(23909/79)11/97
legisdrft/mc303-2d/8/28/01 4
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00,
BEST PRACTICES SURVEY RESPONSES
Survey Agencies (15)
Anaheim, Garden Grove, Santa Ana, Newport Beach, Irvine, Long Beach,
Glendale, Burbank, Pasadena, Santa Monica, Santa Clarita, County of Orange,
Brea, Sunnyvale, Fairfield, Fullerton
Research Topics & Questions
Approvals
1. WHAT IS A DEPARTMENT HEAD'S APPROVAL LIMIT?
$100,000 Irvine
$30,000 Burbank (with RFP)
$25,000 Pasadena
$20,000 Anaheim
$10,000 Burbank (without RFP)
$5,000 Brea
2. WHAT IS THE CHIEF EXECUTIVE'S APPROVAL LIMIT?
No limit Garden Grove
$1,000,000 Irvine
$75,000 Pasadena
$50,000 Burbank, Sunnyvale, Santa Clarita, Orange, Santa Monica,
Brea
$25,000 Anaheim
3. DO CONTRACTS SPECIFICALLY IDENTIFIED IN YOUR AGENCY'S
BUDGET NEED TO BE (RE)APPROVED BY THE BOARD OF
DIRECTORS?
NO — Burbank, Orange County, Santa Clarita
YES - All others
Insurance & Indemnification/Hold Harmless Clauses
4. DOES YOUR AGENCY HAVE STANDARD INDEMNIFICATION/HOLD
HARMLESS CLAUSE(S)?
All respond YES
5. WHERE DOES YOUR AGENCY'S AUTHORITY FOR INSURANCE OR
INDEMNIFICATION/HOLD HARMLESS REQUIREMENT WAIVERS LIE?
Risk Manager& Agency Attorney— Burbank, Garden Grove, Santa Ana, Long
Beach, Orange County
Risk Manager- Santa Monica, Irvine, Pasadena, Anaheim, Brea
6. WHERE DOES YOUR AGENCY'S AUTHORITY FOR INSURANCE
DEDUCTIBLE WAIVERS LIE?
Risk Manager & City Attorney - Burbank
Risk Manager - Santa Monica, OC, Irvine, Anaheim, Santa Ana, Long Beach
Pasadena
No waiver allowed — Garden Grove
7. WHAT ARE YOUR AGENCY'S BIDDING THRESHOLDS?
Agency Informal Formal
Sunnyvale, Santa Monica < $50,000 > $50,000
Burbank, Irvine < $30,000 > $30,000
Pasadena < $25,000 > $25,000
Anaheim < $20,000 > $20,000
Orange County, Santa Clarita < $10,000 > $10,000
Brea, Garden Grove < $5,000 > $5,000
8. ARE YOU A GENERAL LAW OR CHARTER CITY?
Charter City - Burbank, Sunnyvale, Santa Monica, Irvine, Pasadena,
Anaheim, Santa Ana, Long Beach
County - Orange County
General Law - Brea, Garden Grove, Santa Clarita
RCA ROUTING SHEEIn4 )
INITIATING DEPARTMENT: ADMINISTRATION
SUBJECT: CONTRACT PROCESS REVISIONS
COUNCIL MEETING DATE: September 17, 2001
RCA ATTACHMENTS T S V ATU
Ordinance (w/exhibits & legislative draft if applicable) Attached
Resolution (w/exhibits & legislative draft if applicable) Attached
Tract Map, Location Map and/or other Exhibits Not Applicable
Contract/Agreement (w/exhibits if applicable)
(Signed in full by the City Attorney) Not Applicable
Subleases, Third Party Agreements, etc.
(Approved as to form by City Attorney) Not Applicable
Certificates of Insurance (Approved by the City Attorney) Not Applicable
Financial Impact Statement (Unbudget, over $5,000) Not Applicable
Bonds (If applicable) Not Applicable
Staff Report (If applicable) Not Applicable
Commission, Board or Committee Report (If applicable) Not Applicable
Findings/Conditions for Approval and/or Denial Not Applicable
EX L�►NATI®N F4R MISSING A►TT�CHM IV S ,
REVIEWED '' RETURIV'ED F"ORWARDED '
Administrative Staff
Assistant City Administrator (initial) ( ) ( )
City Administrator (Initial) ( ) ( ate )
City Clerk
EXPLA ' ,. 1019 FOR RETURN O'F ITEM(Below Space For City Clerk's Use Only
RCA Author: Grant