HomeMy WebLinkAbout05.I- Successor Agency 5J
RESOLUTION (ID # 3640) DOC ID: 3640
CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION
Purchase Order
From: Lisa Connor M/CC Meeting Date: 01/05/2015
Prepared by: Lisa Connor, (909) 663-
1044
Dept: Successor Agency Ward(s): All
Subject:
Resolution of the Mayor and Common Council of the City of San Bernardino Acting as
the Successor Agency to the Redevelopment Agency of the City of San Bernardino
Approving a Purchasing Policy with Respect to Property Maintenance and Management
Services and Approving Certain Related Actions. (#3640)
Current Business Registration Certificate: Not Applicable
Financial Impact:
The recommended action does not create any new fiscal obligations or cause any fiscal
impact. The purpose of the recommendation is to establish a purchasing policy to
enable the Successor Agency to efficiently and effectively meet its obligations to
maintain and manage the real property assets of the former redevelopment agency.
Motion: Adopt the Resolution.
Synopsis of Previous Council Action
None.
Background:
Pursuant to Health and Safety Code ("HSC") § 34172 (a)(1), the Redevelopment
Agency of the City of San Bernardino was dissolved on February 1, 2012. Consistent
with the provisions of the HSC, the Mayor and Common Council of the City of San
Bernardino previously elected to serve in the capacity of the Successor Agency to the
Redevelopment Agency of the City of San Bernardino (the "Successor Agency"). The
Oversight Board for the Successor Agency ("Oversight Board") has been established
pursuant to HSC § 34179 to assist in the wind-down of the dissolved redevelopment
agency.
Per HSC § 34177 (1)(1), the Successor Agency is required to prepare a Recognized
Obligation Payment Schedule ("ROPS") before each six-month fiscal period, which
corresponds to equal halves of a fiscal year (i.e., July through December and January
through June, which is equivalent to one-half of a fiscal year). A ROPS is the basis for
the Successor Agency's authority to make payments due for enforceable obligations
("EOs"). Each ROPS must also be approved by the Oversight Board and is reviewable
by the County Auditor-Controller, the County Administrative Officer, the California
Department of Finance ("DOF") and the California State Controller's Office. Pursuant to
the foregoing, an Oversight Board-approved ROPS has been submitted to DOF for
Updated: 12/18/2014 by Linda Sutherland I Packet Pg.218
5.1
3640
seven (7) ROPS periods covering the period of January 1, 2012 through June 30, 2015.
The Successor Agency has included its projected costs for property maintenance and
management services as an EO on its ROPS.
As a part of winding-down the affairs of the former redevelopment agency, the
Successor Agency is responsible for maintaining and managing the real property assets
of the former redevelopment agency, consisting of over 300 parcels of real property,
until such time as the effected real property may be transferred to third parties pursuant
to an approved Long-Range Property Management Plan ("LRPMP"). It is anticipated
that the Successor Agency will be able to file its LRPMP with DOF during the middle of
2015, receive DOF's approval by the end of 2015 and begin implementing its LRPMP
during 2016. Implementation of the LRPMP may take several years to complete. It is
estimated that the Successor Agency will continue to be responsible for maintaining and
managing the real property assets of the former redevelopment agency throughout the
implementation period of the LRPMP, which may require the next two to three calendar
years to complete.
The Successor Agency's is responsible for maintaining and managing both improved
(e.g., Carousel Mall, California Theatre, Baseball Stadium, etc.) and unimproved
properties. Due to the age of the structures on the improved properties, together with
significant levels of deferred maintenance and exposure to vandalism, the Successor
Agency has experienced significantly higher levels of maintenance costs than would be
expected for newer buildings. As a consequence of the foregoing, a significant amount
of the maintenance costs related to improved properties consists of one-time repairs
that are authorized by purchase orders as repairs are needed rather than by ongoing
contracts executed in advance. Most of the Successor Agency's maintenance costs
related to unimproved properties consist of debris removal, weed abatement, security
fencing and/or similar activity.
Pursuant to Resolution No. 2014-30, the Successor Agency previously authorized the
City Manager/Executive Director to take the necessary actions and execute such
documents as are necessary to implement ROPS 13-14B, inclusive of the maintenance
and management services related to the Successor Agency's real property assets.
Consistent with the authority granted by Resolution No. 2014-30, the City
Manager/Executive Director administratively established a purchasing policy that
enabled Successor Agency staff to effectively and efficiently respond to the unique
challenges of maintaining and managing the Successor Agency's real property assets
within the restraints of a six-month ROPS period. Although substantially similar, the
Successor Agency's administrative purchasing policy differs from the City's policy with
respect to the financial threshold for the open market procurement process (i.e., the
City's threshold is for purchases of less than $25,000 and the Successor Agency's
threshold is for purchases of less than $50,000).
Experience has revealed that the Successor Agency's threshold of less than $50,000
for open market procurement has enabled Successor Agency staff to rapidly and
effectively respond to the types of maintenance requirements that occur with respect to
the types of real property that the Successor Agency is required to maintain and
Updated: 12/18/2014 by Linda Sutherland I Packet Pg.219
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3640
manage within the restraints of a six-month ROPS period. In consideration that the
,,�.. Successor Agency will need to continue to provide property maintenance and
management services for several more years, it is appropriate to replace the Successor
Agency's administratively established purchasing policy with a Successor Agency
Board-approved purchasing policy with respect to its property maintenance and
management services. The recommended Successor Agency Board purchasing policy
with respect to its property maintenance and management services is attached to this
Resolution as Exhibit "A" and is substantially the same as the administrative purchasing
policy previously established by the City Manager/Executive Director, with the exception
of increasing the threshold for the use of the short form purchase order process from
$500 to $1,000.
City Attorney Review:
Supporting Documents:
Resolution Approving Purchasing Policies V1 1 (DOC)
I
Updated: 12/18/2014 by Linda Sutherland Packet Pg. 220
I RESOLUTION NO.
A
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE
3 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
4 APPROVING A PURCHASING POLICY WITH RESPECT TO PROPERTY
MAINTENANCE AND MANAGEMENT SERVICES AND APPROVING
5 CERTAIN RELATED ACTIONS (#3640)
6 WHEREAS, pursuant to Health and Safety Code ("HSC") § 34172 (a)(1), the
7 Redevelopment Agency of the City of San Bernardino was dissolved on February 1, 2012; and a.
c
8 WHEREAS, consistent with the provisions of the HSC, the Mayor and Common Council E
2
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9 of the City of San Bernardino previously elected to serve in the capacity of the Successor Agency to 0
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10 the Redevelopment Agency of the City of San Bernardino (the "Successor Agency"); and a
0
11 WHEREAS, the Oversight Board for the Successor Agency ("Oversight Board") has been M
12 established pursuant to HSC § 34179 to assist in the wind-down of the dissolved redevelopment V_
13 agency; and
0
14 WHEREAS, per HSC § 34177 (1)(1), the Successor Agency is required to prepare a a
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15 Recognized Obligation Payment Schedule ("ROPS") before each six-month fiscal period, which
16 corresponds to equal halves of a fiscal year(i.e., July through December and January through June);
a
17 and E
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18 WHEREAS, a ROPS is the basis for the Successor Agency's authority to make payments a
19 due for enforceable obligations ("EOs"); and 0
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20 WHEREAS, each ROPS must also be approved by the Oversight Board and is reviewable 0
a)
21 by the County Auditor-Controller, the County Administrative Officer, the California Department of
c
22 Finance ("DOF") and the California State Controller's Office; and E
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23 WHEREAS, pursuant to the foregoing, an Oversight Board-approved ROPS has been a
24 submitted to DOF for seven (7) ROPS periods covering the period of January 1, 2012 through June
25 30, 2015; and
26 WHEREAS, the Successor Agency has included its projected costs for property
27 maintenance and management services as an EO on its ROPS; and
28
1 Packet Pg.221;
1 WHEREAS, as a part of winding-down the affairs of the former redevelopment agency, the
2 Successor Agency is responsible for maintaining and managing the real property assets of the
3 former redevelopment agency, consisting of over 300 parcels of real property, until such time as the
4 effected real property may be transferred to third parties pursuant to an approved Long-Range
5 Property Management Plan("LRPMP"); and
6 WHEREAS, it is anticipated that the Successor Agency will be able to file its LRPMP with
7 DOF during the middle of 2015, receive DOF's approval by the end of 2015 and begin a°
8 implementing its LRPMP during 2016; and m
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9 WHEREAS, the implementation of the LRPMP may take several years to complete; and o
a.
10 WHEREAS, it is estimated that the Successor Agency will continue to be responsible for
0
11 maintaining and managing the real property assets of the former redevelopment agency throughout cv
12 the implementation period of the LRPMP, which may require the next two to three calendar years to
13 complete; and
14 WHEREAS, the Successor Agency's is responsible for maintaining and managing both a°
15 improved (e.g., Carousel Mall, California Theatre, Baseball Stadium, etc.) and unimproved
N
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I16 properties; and a
17 WHEREAS, due to the age of the structures on the improved properties, together with
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18 significant levels of deferred maintenance and exposure to vandalism, the Successor Agency has a
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19 experienced significantly higher levels of maintenance costs than would be expected for newer c
20 buildings; and 0
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21 WHEREAS, as a consequence of the foregoing, a significant amount of the maintenance
_
22 costs related to improved properties consists of one-time repairs that are authorized by purchase E
23 orders as repairs are needed rather than by ongoing contracts executed in advance; and
a
24 WHEREAS, most of the Successor Agency's maintenance costs related to unimproved
25 properties consists of debris removal, weed abatement, security fencing and/or similar activity; and
26 WHEREAS, pursuant to Resolution No. 2014-30, the Successor Agency previously
27 authorized the City Manager/Executive Director to take the necessary actions and execute such
28
2 Packet Pg.22_2
51a
1 documents as are necessary to implement ROPS 13-14B, inclusive of the maintenance and
2 management services related to the Successor Agency's real property assets; and
3 WHEREAS, consistent with the authority granted by Resolution No. 2014-30, the City
4 Manager/Executive Director administratively established a purchasing policy that enabled Successor
5 Agency staff to effectively and efficiently respond to the unique challenges of maintaining and
6 managing the Successor Agency's real property assets within the restraints of a six-month ROPS
7 period; and a.
8 WHEREAS, although substantially similar, the Successor Agency's administrative E
d
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9 purchasing policy differs from the City's policy with respect to the financial threshold for the open o
L
10 market procurement process (i.e., the City's threshold is for purchases of less than $25,000 and the a
0
11 Successor Agency's threshold is for purchases of less than $50,000); and
12 WHEREAS, experience has revealed that the Successor Agency's threshold of less than
13 $50,000 for open market procurement has enabled Successor Agency staff to rapidly and effectively
14 respond to the types of maintenance requirements that occur with respect to the types of real a.
15 property that the Successor Agency is required to maintain and manage within the restraints of a six-
_
16 month ROPS period; and a
17 WHEREAS, in consideration that the Successor Agency will need to continue to provide c
0
18 property maintenance and management services for several more years, it is appropriate to replace a
19 the Successor Agency's administratively established purchasing policy with a Successor Agency o
.2
20 Board-approved purchasing policy with respect to its property maintenance and management N
21 services; and
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22 WHEREAS, the recommended Successor Agency Board purchasing policy with respect to s
23 its property maintenance and management services is attached to this Resolution as Exhibit "A" and Y
24 is substantially the same as the administrative purchasing policy previously established by the City
25 Manager/Executive Director, with the exception of increasing the threshold for the use of the short
26 form purchase order process from $500 to $1,000; and
27 WHEREAS, all of the prerequisites with respect to the approval of this Resolution have
28 been met.
3 Packet Pg 223,.
51 q
1 NOW, THEREFORE, be it resolved by the Successor Agency to the Redevelopment
2 Agency of the City of San Bernardino, as follows:
3 Section 1. The foregoing recitals are true and correct and are a substantive part of this
4 Resolution.
5 Section 2. The Successor Agency's purchasing policy with respect to its property
6 maintenance and management services, which is attached hereto as Exhibit"A", is approved.
7 Section 3. The City Manager, as Executive Director of the Successor Agency, or 0.
8 designee, is hereby authorized and directed to implement the Successor Agency's purchasing policy E
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9 with respect to its property maintenance and management services and to take such necessary o
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10 actions and execute such documents as are necessary to effectuate the intent of this Resolution.
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11 Section 4. This Resolution shall take effect upon its adoption and execution in the M
12 manner as required by the City Charter. r
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4 Packet Pg. 224
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1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE
2 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
APPROVING A PURCHASING POLICY WITH RESPECT TO PROPERTY
3 MAINTENANCE AND MANAGEMENT SERVICES AND APPROVING
4 CERTAIN RELATED ACTIONS (#3640)
5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Successor Agency
6 to the Redevelopment Agency of the City of San Bernardino, at a meeting thereof, held on the
7 day of January, 2015, by the following vote, to wit: a
8 E
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Council Members Ayes Nays Abstain Absent
9 '
MARQUEZ °
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10 BARRIOS CD
11 VALDIVIA M
12 SHORETT >
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13 NICKEL
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14 JOHNSON a
15 MULVIHILL N
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17 Georgeann Hanna, City Clerk o
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The foregoing Resolution is hereby approved this day of January, 2015.
19 0
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21
R. Carey Davis, Mayor
22 City of San Bernardino
23
Approved as to Form: ¢
24 Gary D. Saenz, City Attorney
25
26 By:
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5 Packet Pg. 225
1 EXHIBIT "A"
2
3 SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
4
PURCHASING POLICY WITH RESPECT TO
5 PROPERTY MAINTENANCE AND MANAGEMENT SERVICES
6
2
7 Pursuant to the authority granted by this Resolution, the City Manager, as Executive Director of the a
Successor Agency, or designee, is authorized to issue purchase orders with respect to the Successor
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8 Agency's property maintenance and management services utilizing the following purchasing E
guidelines:
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1. Purchases of less than $1,000 may use the short form purchase order process; a
10
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11 2. Purchases of less than $50,000 may use the open market procurement process, wherein three M
bids or quotes are obtained (fewer than three bids or quotes may be approved, subject to an
12 explanation to and concurrence by the City Manager/Executive Director, or designee);
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13 3. Purchases of$50,000 or more may use the formal bidding procurement process, wherein bids, •
quotes or proposals are obtained through an RFP, RFQ or IFB process, as appropriate to the a
14 purchase type;
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4. Purchases that are a verifiable emergency (as certified by the City Manager/Executive Director,
16 or designee), may use the short form purchase process;
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17 5. This purchasing policy shall apply on a per ROPS fiscal period, which corresponds to equal S
halves of a fiscal year(i.e., July through December and January through June); o
18 a
19 6. This purchasing policy shall apply on a per project, activity or service basis and does not apply c
cumulatively by vendor; and
20 0
7. The City Manager/Executive Director, or designee, is authorized to take such necessary actions
21 and execute such documents as are necessary to effectuate the intent of this Resolution.
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6 Packet 0. 226.11