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HomeMy WebLinkAboutReso 24-20 Establishing Emergency Purchasing PolicyRESOLUTION NO. 24-20 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, ESTABLISHING THE CITY OF MORRO BAY'S EMERGENCY AND DISASTER PURCHASING POLICY THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay wishes to establish an emergency and disaster purchasing policy; and WHEREAS, the emergency and disaster purchasing policy is activated when a local state of emergency has been declared by the City Manager; and WHEREAS, the emergency and disaster purchasing policy provides more latitude to allow for expeditated purchases when there is an immediate threat to health, safety or improved property; and WHEREAS, the City Manager on March 14, 2020 declared a local state of emergency in response to the COVID-19 crisis. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, the "Emergency and Disaster Purchasing Policy," as set forth in Exhibit A, attached hereto and incorporated herein, is hereby approved. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a special meeting thereof held on the 19" day of March, 2020, by the following vote: AYES' Headding, Addis, Davis, Heller, McPherson NOES. None ABSENT: None ATTEST: NA SWANSON, City NA Clerk _/at tor 1 1 /f/ s ♦ • i � Gv� 43/4 rEe -4" Policy Statement wor COUNCIL POLICY EMERGENCY AND DISASTER PURCHASING POLICY The City of Morro Bay (City) is a full -service City, providing police, fire protection, public works, harbor, recreation and development services. In addition, the City manages the City's Tourism function for promotion of Morro Bay as a tourist destination. As such, it is the City's responsibility to establish policies for prudent financial oversight and accountability. The City Council sets legislative financial management policies, as recommended by staff and advisory committees. During declared states of emergency, the City may be required to invoke emergency purchasing practices to maintain core public services. These emergency practices are only authorized when the City of Morro Bay declares a local state of emergency. Purpose When the City of Morro Bay has declared a local state of emergency, any official or employee who is required to purchase materials, supplies or services on behalf of the City for their department shall use purchasing practices set forth in this document until such time as the state of emergency has been lifted. This Policy modifies the City's normal purchasing practices to assure that, in exigent circumstances caused by a proclaimed disaster or emergency, the City is able to acquire the goods and services required to address an immediate threat to health, safety or improved property while still maintaining an effective purchasing process and complying with applicable local and state purchasing laws. Where the City is included in a major disaster or emergency declared by the President of the United States, this Policy also assures that City procurements comply with federal regulations applicable to FEMA disaster grant reimbursement. Definitions For purposes of this Policy, (a) a proclaimed disaster or emergency exists if (i) the Governor has declared a state of emergency for an area which includes the geographic territory of the City; or (ii) the Chief Executive Officer of the City has declared an emergency in the City; (b) "Exigent Circumstances" are situations in which (i) a disaster or emergency has been proclaimed, and (ii) the public exigency for goods and services required to address an immediate threat to health, safety, or improved property will not permit competitive solicitation. Emergency and Disaster Purchasing Policy Disaster purchasing has a number of facets, first emergency spending limits are expanded and authorized by council without the need to obtain their prior approval. There can be individual limits and aggregate limits which give emergency managers the necessary authority to act quickly under exigent circumstances. 01181.0001/637710.1 DRAFT Page 1 Emergency and Disaster Purchasing Policy The concept of emergency purchases regards purchases made under "crisis" conditions, where there is an immediate threat to health, safety or improved property. When this condition (an immediate threat to health, safety or improved property) exists, the city has wider latitude to do what is necessary to save lives and prevent further damage to improved property Given this, and operating under the understanding that when an emergency is in place, the City will be in need of supplies, goods and services as quickly as possible, local vendors within the City and County will be contacted first to obtain the quickest possible acquisition to preserve immediate health and safety for the Morro Bay Community. This is consistent with the policy directives outlined below. Section 1 - Delegations of Purchasing Authority in Exigent Circumstances. (a) if the City Manager determines that goods and services must be procured before the City Council is able to assemble and approve purchases, the City Manager has authority, subject to the limitations set forth in sub -paragraphs (a)(i) and (a)(ii), to approve the immediate rental or purchase of any equipment, supplies, services or other items necessary to respond to an immediate threat to health, safety or improved property (i) Limits of Single Purchase Authority. The City Manager shall have the authority to make individual purchases up to $250,000 on his or her signature alone. The City Manager shall have the authority to make purchases in excess of $250,000 up to a maximum of $500,000 when countersigned by the Mayor or in the Mayor s absence countersigned by another council member. (ii) Limits of Aggregate Purchase Authority. The City Manager shall have the authority to make aggregate purchases up to $500,000 on his or her signature alone The City Manager shall have the authority to make purchases in excess of $500,000 up to a maximum of $1,500 000 when countersigned by the Mayor or in the Mayor's absence countersigned by another council member. (b) Sub -delegation to EOC Director. The EOC Director shall be a designee of the City Manager at any time that the City Manager is not available to approve purchases as allowed in this section. (c) Sub -delegation of Purchasing Authority to Department Heads. If neither the City Manager nor the EOC Director is available, the police department watch commander, duty fire battalion chief, and/or duty public works department manager have authority to rent or purchase from the nearest available source any equipment, supplies, services or other items necessary for his or her department to respond to an immediate threat to health, safety, or improved property, up to a maximum of $500,000. (d) Administrative Procedures: Reporting Requirements. (i) As soon as possible after purchases are made under this section 1, the City Manager, EOC Director, or department head shall submit to the Purchasing Officer a requisition and a notation that the commodity has been ordered on an emergency basis from the vendor designated (ii) The Purchasing Officer will inform the City Manager and the City Council of any individual purchase under this section with a contract amount greater than $125,000, and also whenever the aggregate of purchases under this section is greater than $200,000 dollars. 01181.0001/637710.1 DRAFT Page 2 Emergency and Disaster Purchasing Policy (iii) The Purchasing Officer will obtain the City Manager's (or EOC Director as the City Manager's designee) approval prior to any purchase by a department head if the amount is $150,000 dollars or more. (iv) If the City Manager/EOC Director is unavailable, and the delay in getting his/her signature would imperil life, safety or improved property, the police department watch commander, duty fire battalion chief, and/or duty public works department manager or his/her designee may approve the emergency purchase of $150,000 dollars or more. (v) The Purchasing Officer shall have the authority to approve all disaster related purchases under $150,000 thousand dollars. (vi) The Purchasing Officer will expedite the verification of funds available and complete the preparation of the purchase order. Section 2 Procurement Procedures in Exigent Circumstances. Upon receipt of requisitions under Section 1 above, the Purchasing Officer shall prepare purchase orders for the emergency equipment, supplies, services or other items in accordance with the requirements of this section. (a) Exempt Purchases. Purchases below $200,000 shall not be required to be formally bid. Purchases greater than $200,000 may be made following the procedures specified in this section. The signature(s) of the City Manager, Purchasing Officer and/or Department Head are still required as provided in Section 1. (b) Justification of "Sole Source" or "No -bid" Contracts. Where exigent circumstances require immediate procurement from the nearest available source: (i) the Procurement Officer shall use the "Justification Form For Emergency Sole Source or No -Bid Purchase." (ii) procurement should be limited to that portion of the work that must be performed immediately, allowing subsequent procurement by competitive proposals of the remainder of the work. (iii) "Sole source" or "no -bid" acquisitions shall be necessary for one of the following reasons placement of emergency protective measures; procurement of a scarce commodities, goods, or services; or acquisition or rental of emergency equipment , emergency consulting services, emergency road clearance or other emergency requirements. This is consistent with Morro Bay Municipal Code Section 3.06.070(B)(1) which states as follows: 3.08.070 - Bidding. A. Except as otherwise provided in subsection B of this section, by this Chapter, or pursuant to applicable law, the purchase of supplies, equipment, materials and public works projects, shall be by bid procedures pursuant to Sections 3.08.100 and 3.08.110. B. Bidding or open market procedure may be dispensed with only when: 1. An emergency requires that an order be placed with the nearest available source of supply; 2. The amount involved is less than five hundred dollars. 01181.0001/637710.1 DRAFT Page 3 Emergency and Disaster Purchasing Policy 3. The commodity can be obtained from only one vendor; or 4. Competitive bidding or proposal procedures, substantially similar to the competitive bidding or proposal procedures in this code, have already been utilized either by a federal, state, county, city or special district government agency, or by a legitimate cooperative purchasing agency; and, that the supplies, equipment, materials or public works project provided to the city are at the same or better price terms and conditions, as was obtained through such prior competitive bidding or proposal procedures. (Ord. No. 608, § 1, 9-27-16) (c) Provision for Alternate Bid Solicitation Procedures. The City s normal requirements for sealed bids shall not apply to acquisitions under Section 1. However, the Procurement Officer shall conduct telephonic or other electronic bid solicitation from potential vendors or suppliers, in lieu of written and/or sealed bids, in an effort to obtain multiple competitive proposals when and if time allows in light of the exigent circumstances. (d) Locations of Postings for Requests for Proposals or Solicitation of Bids The Procurement Officer may waive normal requirements for public posting of requests for proposals or solicitation of bids. Notices soliciting bids or requests for proposals shall be posted at the Emergency Operations Center or Alternate Emergency Operations Center, if the Primary Emergency Operations Center is not being used. (e) Length of Time for Posting Requests for Proposals or Solicitation of Bids. The Procurement Officer may shorten the normal bid period to expedite the award of contracts for emergency equipment, goods, or services. The Procurement Officer should seek to assure that the shortened bid period allows multiple suppliers to submit bids. (f) Number of Bids Required. Solicited bids that are non -responsive shall count towards the minimum numbers of bids required when there is a declared emergency or disaster in the City Section 3 - Notification and Ratification (a) Posting of Contract Awards. Under this section, all contracts awarded that exceed $750,000 shall be presented to the City Council for ratification and shall be publicly posted within sixty (60) days of the award. (b) Authority to Cancel Emergency Procurements. As a provision of this policy, the City has the absolute authority to rescind a contract for non performance within 24 hours when a contractor or vendor once awarded a contract, is unable to perform under the terms of the contract and the resulting delay or non performance presents an immediate threat to life, safety or improved property (c) Notification Requirement for Emergency Purchases. For any purchase in excess of $150,000, the City Manager shall report all such purchases to the City Council within thirty (30) days. (d) Requirement for Separate Invoicing. All purchases or rentals made during proclaimed emergency or disaster conditions shall require separate invoicing from routine (non - disaster related) purchases. All invoices shall state the goods, services or equipment provided and shall specify where the goods or services were delivered and be coded to the designated disaster project code. 01181.0001/637710.1 DRAFT Page 4 Emergency and Disaster Purchasing Policy (e) Auditing of Invoices for Debris Clearance Prior to Payment. All invoices for debris clearance and removal shall be audited by the City prior to payment to the vendor. Vendors shall be notified of this requirement prior to the awarding of any contract for debris clearance and/or removal. Audits shall be in accordance with procedures for debris removal monitoring specified in FEMA's Publication 325, Debris Management Guide. (f) Limitations of Disaster Purchasing Policy. For the purposes of this section, an emergency or disaster shall be deemed to exist when a condition exists that presents an immediate threat to health, safety or improved property and a local emergency or disaster has been proclaimed. Any purchases that do not meet the standard of being necessary for responding to an immediate threat to health safety or improved property shall follow the City's regular purchasing provisions. 01181.0001/637710.1 DRAFT Page 5 Emergency and Disaster Purchasing Policy