HomeMy WebLinkAbout2006-35 - Council Policy F-14 - Authority to Contract for ServicesRESOLUTION NO. 2006- 35
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH AMENDING COUNCIL POLICY F -14
(AUTHORITY TO CONTRACT FOR SERVICES)
WHEREAS, Section 421 of the City Charter provides that the City Council may, by
Resolution, authorize the City Manager to bind the City with or without a written contract,
for the acquisition of services and other items included within the budget approved by the
City Council, and may impose a monetary limit upon such authority; and
WHEREAS, Section 421 of the City Charter provides that the City Council may
designate and direct other officers of the City to bind the City through written contracts.
NOW, THEREFORE, the City Council of the City of Newport Beach hereby
resolves as follows:
Section 1: Council Policy F -14 attached hereto is hereby approved and
adopted.
Section 2: This resolution shall take effect immediately upon its adoption by the
City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 9`h day of May, 2006.
Q wy
MAYOR
ATTEST::
CITY CLERK
F -14
AUTHORITY TO CONTRACT FOR SERVICES
PURPOSE
To set forth the City's policy establishing authority for committing City funds for
Service Contracts.
LIMITATION
Contracts for services are distinct from contracts for procurement of specific
material items. If the only purpose of a contract is for the City to obtain goods,
material or equipment, guidelines contained in the City's Purchasing Procedures
will be followed. Contracts entered for the purpose of obtaining related service,
installation, repair or maintenance of goods, materials and equipment shall also
be formed under the guidelines contained in the City's Purchasing Procedures.
The terms and conditions of contracts for service, installation, repair or
maintenance of goods shall be included on the City's Purchase Order form, and
additional contractual and procedural provisions may be necessary under the
Purchasing Procedures for equipment maintenance, computer software and
hardware purchases which exceed $10,000, and other purchase - related services
which exceed $30,000.
Under the terms of City Charter Section 1110, contracts for public works that
exceed $30,000 in total expenditures must be awarded by the City Council. At its
option, the City Council may direct the contract to be signed by the Mayor, the
City Manager or the responsible Department Director.
APPLICATION
The policy contained herein applies to all other contracts for services, whether
acquired under a standard or emergency basis, including but not limited to
professional services, audit services, public works project services, public
property maintenance and repair services, and maintenance, custodial and repair
services for all City facilities.
POLICY
A. Authority to Enter Contracts
The Charter of the City of Newport Beach permits the City Council to delegate
authority to sign contracts to the City Manager, and such other officer or officers
as the Council may designate, and to impose monetary limits on such signing
authority. By resolution, the Council has delegated authority to sign service
contracts to certain City officers, with specific monetary limits.
i
F -14
Regardless of whether an elected or nonelected City officer signs the service
contract, the contract and any subsequent contract amendments shall also be
signed by the City Clerk, shall be in a form approved by the City Attorney, and
the City Attorney shall review and approve all contract and contract amendment
documents prior to contract execution.
1. The City Manager. The City Manager is authorized to sign and award
contracts for services without prior Council approval, provided the contract
amount does not exceed $50,000 and funds are available. This authority
shall not be delegated below the Assistant City Manager level. The City
Clerk shall sign all such contracts, and the City Attorney shall review and
approve all contract documents prior to contract execution and award.
a. Some services are paid for by permit applicants, but the contracts
for those services are entered by the City on behalf of the
applicants. Funds to pay for these services are provided by the
applicant and held by the City in an applicant deposit account. The
City Manager is authorized to sign all service contracts which are
paid for with funds from the applicant's deposit account, regardless
of the amount of the contract.
b. When services are paid for by funds in an applicant deposit account
and the total cost of services shall exceed $100,000, the City
Manager shall provide notice of the permit application and a brief
description of the proposed project to the City Council.
2. Department Directors. Department Directors are authorized to sign written
contracts for services that do not exceed $30,000 without further Council
review, as long as the services were approved by the City Council as part
of the annual Department budget. This authority may not be delegated
below the Department Director level. The City Clerk shall sign all such
contracts, and the City Attorney shall review and approve all contract
documents prior to contract execution and award.
3. City Attornev. The City Attorney is authorized to sign contracts for all
services for outside counsel and experts related directly to and necessary
for prosecution and defense of pending litigation as defined in the Brown
Act, and for services for outside counsel and experts necessary to
address other pending or potential legal claims or legal issues so long as
funds for outside counsel, experts and related legal services were
approved by the City Council as part of the annual budget process.
B. Authoritv to Amend Contracts
If circumstances arise that were not reasonably foreseeable by the parties at the
time of contracting, and which make extra work necessary for the proper
completion of the service, a contract amendment and corresponding increase in
total contract amount may be necessary. for purposes of this policy, "total
2
F -14
contract amount" shall be defined as the total consideration paid over the term of
the agreement, including any previous amendments to the contract.
1. If the original contract did not exceed $30,000 and was signed by a
Department Director, the Department Director overseeing the contract
may sign the contract amendment if that amendment will not cause the
total contract amount to exceed 125 % of the original contract amount.
2. The City Manager may sign and award the contract amendment if the total
cost of services will not exceed 125% of the original contract amount, or if
the total contract amount does not exceed $50,000, whichever is greater.
3. 1n certain situations, the City Manager and the Department Director in
charge of the contract may determine that an amendment is needed that
will cause the total contract amount to exceed the City Manager's
amendment signing authority, and that the timing is such that a work
stoppage or other undesirable consequence will result if approval of the
change is delayed until the next City Council meeting. In those situations,
the City Manager may approve an amendment that increases the total
contract amount up to 150% of the original contract. However, the City
Manager will notify all City Council Members individually if this situation
develops, and if any individual Council Member objects to the increase, a
special meeting of the City Council will be called to address the issue.
4. In the event of emergency work that requires an amendment to an existing
contract, the emergency contracting policy outlined below shall be
followed.
C. Procedures
1. Bidding. It is recognized that by their nature, service contracts cannot
always be awarded as a result of a competitive bid process. However,
competitive bids should be obtained whenever possible before resorting to
negotiated awards.
2. Approvals.
a. All contracts for services, including exhibits and amendments, shall
be reviewed and approved as to form by the City Attorney's Office
prior to contract execution. The City Clerk shall sign and attest to
all service contracts.
b. City Purchase Orders are not required for service contracts. A copy
of the contract shall be submitted directly to Accounts Payable,
where the Fiscal Services Manager will use it as an encumbering
document. Thereafter, progress payments will be handled in the
same manner as progress payments on a Purchase Order, i.e.
invoices will be approved by the director of the department
3
FA
a
F -14
administering the contract and submitted to Accounts Payable for
payment.
C. Insurance - All contracts shall be accompanied by proof of the
appropriate level of insurance at the time of execution. The
insurance level required shall be in accordance with the City's
published Schedule of Insurance (attached and herein incorporated
by reference as part of this Policy), or as otherwise approved by the
City's Risk Manager.
Retention.
a. The City Clerk shall retain the original executed service contract
approved by the City Council and signed by the Mayor (or such
other officer as the Council may designate, in instances in which
the Council approves a contract and directs a City officer to sign.)
At least one copy with original signatures shall also be kept by the
Department responsible for administering the contract as required
by the City Document Retention Policy.
b. The City Manager's Office shall retain an original executed copy of
any service contract signed by the City Manager or Assistant City
Manager(s), in accordance with the City Manager's Office
document retention policy.
C. Each department shall retain an original executed copy of any
service contract signed by its Department Director, in accordance
with that department's document retention policy.
Professional Services Consultant Selection
Professional consultant services differ from other services in that they are
of a professional nature, and due to the ethical codes of some of the
professions involved, as well as the nature of the services provided, do not
readily fall within the competitive bidding process. Professional
consultants should be individually selected for a specific project or service
with the objective of selecting the most qualified consultant at a fair and
reasonable cost.
Professional services shall be obtained by a qualifications -based selection
process. The following procedures shall be used in the selection of
professional consulting services. This policy shall include, but not be
limited to, services in the following fields:
Engineering (civil, mechanical, electrical, structural, traffic, geotechnical,
etc.)
Architecture
4
1.
F -14
Landscape Architecture
Construction Project Management Firms
Environmental
Planning
Economic Analysis
Property Appraisals
Land Surveying
Financial Services
Data Processing Services
Legal Services not otherwise authorized in Section A(3) of this Policy
Professional Services Consultant Selection Procedures
a. Major Projects — Anticipated fee of over $100,000 or other criteria
related to complexity as determined by Department Director.
i. Lead Department(s) shall prepare a Request for
Qualifications (RFQ) and solicit responses using current lists
and industry resources. Lists of qualified consultants and
RFQs shall be processed as needed, but not less than once
every five (5) years.
ii. A Review Board, selected by the appropriate Department
Director and composed of appropriate Staff representatives
and /or qualified outside representatives, shall select three
(3) to five (5) qualified firms to submit proposals.
iii. When a minimum of three (3) potential firms are unavailable,
or if it is in the best interest of the City to limit the number of
firms solicited, the basis for such action should be included
in the report to the City Council
iv. The Review Board shall review the proposals received and
select the most qualified firms for interviews. The Review
Board shall rank consultants based upon the following
criteria:
Ability of the consultants to perform the specific tasks
outlined in the RFP.
■ Qualifications of the specific individuals who will work
on the project.
5
a
C.
F -14
■ Amount and quality of time key personnel will be
involved in their respective portions of the project.
■ Reasonableness of the fee requested to do the work.
■ Demonstrated record of success by the consultant on
work previously performed for a City, and for other
municipalities or enterprises.
■ The specific method and techniques to be employed
by the consultant on the project or problem.
V. The Review Board shall select the most qualified firm and
negotiate an appropriate not -to- exceed cost of services
amount based upon the agreed scope of work (hours) and
hourly rates. If negotiations are not successful, the Review
Board will select a second qualified firm.
vi. The Review Board's recommended selection will be placed
on the Council agenda. The recommendation should include
the agreed not -to- exceed cost of services and a summary of
the basis used to select the recommended consultant.
vii. A Professional Services Agreement reviewed and approved
by the City Attorney will be attached to the Council staff
report.
Intermediate Projects — Anticipated fee between $30,000 -
$100,000, or other criteria related to complexity as determined by
Department Director.
i. Affected Department(s) should use procedures noted in
Section D(1)(a) of this Policy, above, and invite proposals
from a minimum of three (3) qualified consultants.
ii. The Department Director shall make a selection based upon
the criteria set forth in Section D(1)(a) of this Policy and
place the recommendation on the Council agenda.
iii. A Professional Services Agreement reviewed and approved
by the City Attorney will be attached to the Council staff
report, unless the cost of services do not exceed $50,000,
and the agreement is signed by the City Manager.
Minor Projects — Anticipated fee under $30,000
I. The Department Director shall maintain current files on
qualified consultants in appropriate categories. The
Department shall contact at least three (3) qualified
consultants and request them to submit a proposal.
ii. The Department Director shall make a selection based upon
the criteria noted in Section D(1)(a) of this Policy and is
authorized to execute a Professional Services Agreement
reviewed and approved by the City Attorney.
6
F -14
E. Emergency Contracts for Services
If a contract for services is necessary under the provisions of Newport
Beach Municipal Code Section 2.20.020, procedures in the City
Emergency Procedures shall be followed.
If a contract for services is necessary under the authority of Newport
Beach City Charter Section 1110, and the contract amount exceeds the
signing authority of the relevant Department Director or City Manager as
authorized in this Policy, then that contract shall be brought to the City
Council at its next regularly scheduled meeting for review.
Whenever possible, the City shall enter Emergency On -Call Agreements
with contractors or consultants who can be relied upon to assist the City in
advance of any actual emergency. Emergency On -Call Agreements shall
be submitted to Council for approval after being reviewed and approved
by the City Attorney's Office. After the Emergency On -Call Agreement is
approved, services provided on an emergency basis under an Emergency
On -Call Agreement may be retained by oral commitment of the City
Manager (or, in the case of an emergency described by Municipal Code
Section 2.20.020, the Director or Assistant Director of Emergency
Services), to be memorialized in a Letter Agreement between the parties
as soon as possible.
When a written contract has been entered to address an emergency, a
copy of the written contract shall be provided to the City Clerk as soon as
possible.
FUTURE AMENDMENTS TO POLICY
Any future changes in the provisions of this Policy shall be made by resolution of
the City Council
Adopted - January 24, 1994
Amended - April 13, 2004
Amended by Resolution 2006 -_, May 9, 2006
F:lusersl cat lsharedlPolicyCouncillF- 14.doc
7
STATE OF CALIFORNIA }
COUNTY OF ORANGE
CITY OF NEWPORT BEACH }
I, LaVonne M. Harkless, City Clerk of the City of Newport Beach, California, do
hereby certify that the whole number of members of the City Council is seven; that the foregoing
resolution, being Resolution No. 2006 -35 was duly and regularly introduced before and adopted by
the City Council of said City at a regular meeting of said Council, duly and regularly held on the 9th
day of May 2006, and that the same was so passed and adopted by the following vote, to wit:
Ayes: Curry, Selich, Rosansky, Ridgeway, Daigle, Nichols, Mayor Webb
Noes: None
Absent: None
Abstain: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the
official seal of said City this 10th day of May 2006.
City Clerk
aE TM Newport Beach, California