9/6/2022
HUNTINGTON 00000000000000
INCORPORATED
Procurement Policy Review Plan
City Council Meeting
September 6, 2022
1909
SUPPLEMENTAL 1
COMMUNICATION
Meeting Date: 9/0/2022
#19 (22. 665)
Agenda Hom No.:
Presentation Overview
Background
• Procurement Review Plan
• City of Huntington Beach Procurement Policies
Preliminary Survey & Best Practices
Recommended Action
1 9/6/2022
Background
> Mayor Pro Tem Posey requested a plan to review the City's Procurement Policies at the July 19, 2022 City Council Study Session on the Budget The City's procurement policies are integral in advancing public policy objectives and building public trust.
• City's Charter, Municipal Code, and Administrative Regulations along with Federal and State laws provides the authoritative guidance for the City's procurement policies.
The City's procurement requirements and levels of approving authority varies based on the type of contract.
/ Professional Services / Leases
• Legal Expert Services Public Works Construction
• Goods & Services
3 Procurement Review Plan
1. Review HB procurement policies (including City Manager/Department Head spending limits, and bidding requirements) to determine opportunities for updates and clarification and to assess compliance with State, Federal, local and other pertinent laws and regulations
2. Interview City staff to identify opportunities for improvements in the procurement process
3. Review procurement best practices - California Association of Public Procurement Officials (CAPPO)
4. Review of public procurement policies of neighboring cities
5. Review emergency procurement policies for compliance with FEMA requirements
6. Present findings and recommended changes for City Council feedback at a future Study Session
7. Based on feedback, present final recommended changes to City Council for consideration he City issued a request for proposal on August 3, 2022 to secure on-call consulting services to assist i he procurement review if City Council decides to move forward with the plan. The consultant will als assist in the implementation of any changes.
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City of Huntington Beach Procurement Policies
Goods & Services
> Purchases of supplies and services (other than professional services) City Charter Section 613, Municipal Code 3.02
Amount Method Authority
$O - $30,000 Informal Bid Department Head (DH), Finance City Council - through the budget
$30,000 or more Competitive Bid process
5 City of Huntington Beach Procurement Policies
Professional Services
› Consultants, architects, engineers
City Charter Section 613, Municipal Code 3.03, AR 228
Amount Method Authority
$30,000 or less Informal Bid Department Head (DH)
$30,000 to $50,000 Competitive Bid DH, Finance
$50,000 to $100,000 Competitive Bid DH, Finance, City Manager $100,000 or more Competitive Bid City Council
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City of Huntington Beach Procurement Policies
Public Works Construction
› Physical construction and improvements of any City infrastructure City Charter Section 614, AR 119
Amount Method Authority
$25,000 or less Informal Bid DH, City Manager
$25,000 or more Competitive Bid City Council
City of Huntington Beach Procurement Policies
Signature Authority Levels
Amount Contract Type Authority
Dept Head & City Manager (subject to bidding
requirements set forth in Muni Code 3.02 &
Unlimited Goods City Council budget approval)
Dept Head & City Manager (subject to bidding
requirements set forth in Muni Code 3.02 &
Unlimited Services City Council budget approval)
$0 - $50,000 Professional Services Dept Head
$50,000 - $100,000 Professional Services City Manager
Over $100,000 Professional Services City Council
$0 - $100,000 Expert Services City Attorney
Over $100,000 Expert Services City Council
$0 - $25,000 Public Works Dept Head & City Manager
Over $25,000 Public Works City Council 8
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Preliminary Survey and Best Practices
• League of California Cities (January 22, 2021):
/ Public procurement is not designed to achieve speed, rather provide a fair and competitive process
• Locally adopted ordinances or policies provide the framework for purchases of supplies and services
• State law provides public works project requirements
Example: Morgan Hill
Amount Method Authority
$10,000 or less Informal Bid City Manager → Department
Heads NGTON BEACH
$10,000 to $25,000 Informal Bid City Manager → Purchasing Officer (Finance Director)
$25,000 to $60,000 Competitive Bid City Manager IFORNIA $60,000 or more Competitive Bid City Council
Preliminary Survey of Neighboring Cities
Goods & Services
City Formal Bid Threshold City Council Approval Threshold Newport Beach Over $25,000 Over $120,000
Santa Ana Over $25,000 Over $50,000
Huntington Beach Over $30,000 Approved through budget
Irvine Over $45,000 Over $1,000,000
Anaheim Over $50,000 Over $200,000
Costa Mesa Over $50,000 Over $50,000 NGTON
COUNTY
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Preliminary Survey of Neighboring Cities
Professional Services
City Formal Bid Threshold City Council Approval Threshold Newport Beach Over $25,000 Over $120,000
Huntington Beach Over $30,000 Over $100,000
Irvine Over $45,000 Over $1,000,000
Anaheim Over $50,000 Over $200,000
Costa Mesa pending pending
Santa Ana pending Over $25,000
11 Preliminary Survey of Neighboring Cities
Public Works Construction
City Formal Bid Threshold City Council Approval Threshold Anaheim Over $15,000 Over $400,000
Huntington Beach Over $25,000 Over $25,000
Santa Ana Over $25,000 Over $250,000
Newport Beach Over $120,000 Over $120,000
Costa Mesa Over $200,000 * Over $200,000
Irvine Over $200,000 * pending
* Per Public Contract Code section 22032 (c), which is set by the State of California 6 9/6/2022
Recommended Action
› Approve the plan to review the City's procurement policies as outlined in the presentation
138
Questions?
7