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CC - (1) Receipt and Filing of a Report on Current Emergency Response Expenditures; (2) FOUR-FIFTHS VOTE REQUIREMENT: Approval of an Additional Budget Appropriation of $350,000 for Future Related Emergency Response Expenses; (3) Approval of an Amendment to the Existing Professional Services Agreement with Bio-One Southern California for Emergency Response Hazardous Cleanup in an Amount Not-to-Exceed $105,000; and (4) Authorization to the City Manager to Approve Additional Emergency Response Agreements, as Deemed Appropriate.
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Meeting Date: May 11, 2020
Contact Person/Dept: Onyx Jones/Finance Department
Phone Number: (310) 253-5865
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No [X]
Public Hearing: [] Action Item:[] Attachments: [X]
Commission Action Required: Yes [] No [X] Date:
Public Notification: (E-Mail) Meetings and Agendas - City Council (05/06/2020)
Department Approval: Onyx Jones, Chief Financial Officer (05/04/2020)
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RECOMMENDATION
Staff recommends the City Council (1) receive and file a report on current emergency response expenditures for COVID-19 related purchases; (2) approve an additional budget appropriation of $350,000 for future related emergency response expenses (budget amendment requires four-fifths vote); (3) approve an amendment to the existing professional services agreement with Bio-One Southern California for emergency response hazardous cleanup in an amount not-to-exceed $105,000; and (4) authorize the City Manager to approve additional emergency response purchases, as deemed appropriate.
BACKGROUND/DISCUSSION
On March 18, 2020, City Council authorized a budget appropriation of $250,000, under the authority of CCMC section 3.07.060.B and 3.09.040 to meet the City’s emergency service and supply response needs. Expenses to date have primarily been purposed for staff personal protective equipment (PPE), sanitization needs to meet public safety and service continuation, equipment rentals, Emergency Operation Center (EOC) costs for technology requirements, and emergency professional services for needs ranging from FEMA consultation to biohazard cleaning. Posted actual emergency response expenses through April 30, 2020 have totaled $121,598, with another $165,000 encumbered for pending orders/service requests.
A detailed report by category, vendor, item description and costs is included as Attachment 1. A summary of expenses by category has been provided below:
• PPE: $46,161
• EOC Operations: $50,112
• Disinfectant Products: $13,940
• Equipment Rentals: $3,585
• Emergency Services: $7,800
Staff has worked diligently to create a state of heightened public safety void of service disruptions. While the City of Culver City has taken a number of steps to help prevent the spread of COVID-19 during this emergency event, additional measures will be needed in preparation to recover and reopen public buildings once the Safer at Home Order is lifted. Next steps to meet the “new normal” in City operations will include equipping staff with appropriate personal protective equipment (PPE); continuation of handwashing stations for public use; and ensuring sufficient Citywide stock of hygienic products including antibacterial soaps, hand sanitizers and disinfecting supplies to meet guidance from the Center of Disease Control (CDC) and County Department of Public Health to reduce opportunities for community transmission of the virus. As additional supplies and services are considered to meet the City’s emergency response needs, staff is requesting an additional budget appropriation of $350,000.
In concert with this request is the need for increased on-call environmental cleanup services. This service has been provided annually by AMBK doing business as (dba) Bio-One Southern California under the current agreement, which has been in place since Fiscal Year 2016/2017 at a current not-to-exceed amount of $50,000 per fiscal year. While previous costs were within the Purchasing Officer’s purchasing authority, increased costs due to encampment site growth (i.e. both in size and number) along with heightened biohazard standards from the service provider resulting from COVID-19 are anticipated to exceed the administrative threshold. Culver City Municipal Code (CCMC) Sections 3.07.060 and 3.09.040 authorize expenditures to be made without complying with purchasing or bidding procedures. Staff is requesting the City Council authorize an amendment with AMBK dba Bio-One Southern California at an amount not-to-exceed $105,000 through the remaining term of the agreement (June 30, 2020), at which time a Request for Proposals will be issued for continued services.
It should be noted that, while Staff has been able to work within administrative authority for most needed emergency services, additional unanticipated services may be required through the recovery and reopening period. To be responsive to future immediate needs, Staff is additionally requesting the City Council authorize the City Manager to approve purchases and/or agreements up to the Emergency Response appropriation. All agreements procured under this authority will be identified in future Emergency Response Expenditure Reporting.
FISCAL ANALYSIS
Culver City Municipal Code Sections 3.07.060.B and 3.09.040 authorize the City Manager to make expenditures in connection with emergency activities in the event of a locally declared emergency.
Staff is requesting an additional appropriation of $350,000 from Unassigned General Fund Balance, which has a current projected balance of $12.2 million. This would bring the total COVID-19 related appropriation to $600,000. The City has a Contingency Reserve that is designated for emergency use, the fund is only accessible when a state or federally declared emergency where the City response or related loss is greater than or equal to five percent (5%) of the General Fund Operation Budget, a threshold of approximately $6.7 million for FY 2019/2020. Although, the loss related to COVID19 for FY 2019/2020 is now anticipated to exceed $7M; this appropriation is requested from Unassigned General Fund Balance. The project code CV019 has been established for ease in monitoring all emergency event related expenses. Finance staff will also seek various grants and FEMA expense reimbursements to help offset all COVID19 related expenses.
Expenses through April 30, 2020 have totaled $121,598 with another $165,000 encumbered for pending orders/service requests. The next status report of COVID-19 related expenditures will be presented to City Council on June 8th.
While operational costs related to the AMBK dba Bio-One Southern California will be funded from Enforcement Services (10150250.619800), increases related to COVID-19 may be pursued as a FEMA eligible expense.
ATTACHMENTS
1. Emergency Response Expense Report
MOTION
That the City Council:
1. Receive and file a report on current emergency response expenditures; and
2. Approve a Budget Appropriation of $350,000 for additional related emergency response expenses (requires a four-fifths vote); and
3. Approve an amendment to the existing professional service agreement with Bio-One Southern California for Emergency Response Hazardous Cleanup in an amount not-to-exceed $105,000 through the current fiscal year; and
4. Authorize the City Manager to approve additional emergency response agreements, as deemed appropriate; and
5. Authorize the City Attorney to review/prepare the necessary documents; and
6. Authorize the City Manager to execute such documents on behalf of the City.