Title
COVID-19 Incident Response Efforts (Ordinance S-46605)
Description
Request to ratify contracts executed by the City Manager, or his designee, necessary to acquire emergency services, personal protective equipment, cleaning supplies, teleworking equipment and other COVID-19 expenses up to $20 million and further request authorization for the City Controller to expend and accept all funds necessary to mitigate further health incidents related to the COVID-19 pandemic.
Report
Summary
The City Council declared a local emergency due to the COVID-19 pandemic on March 20, 2020. Immediately after the confirmation of the emergency, the City engaged with specialized vendors to ensure the health and safety of staff and members of the public. The COVID-19 pandemic has resulted in additional procurement and contracting complications due to the lack of supplies and a deterioration in supply chains failing to support the heightened national demand, especially for Personal Protective Equipment (PPE). Due to the pandemic emergency and volatile market conditions, the Finance Department is sourcing goods under the exceptions provided for in Chapter 43 (Procurement) of the Phoenix City Code. The following is a list of goods the City is actively procuring to efficiently respond to the COVID-19 pandemic along with the estimated values from March 1, 2020 through April 30, 2020:
- Computer Equipment (Teleworking): $525,000
- Gloves: $1,880,000
- N95 Masks: $6,796,000
- Surgical Masks: $640,000
- Disinfectant/Cleaning Supplies: $3,600,000
- Other PPE (protective clothing, goggles, etc.): $630,000
- Other COVID 19 Expenses: $529,000
- Future Estimated COVID Procurement (PPE, Testing related): $5,400,000
Total: $20,000,000
It is anticipated most of the estimated values above will be recovered through funding from the Coronavirus Aid, Relief and Economic Security (CARES) Act signed into law on March 27, 2020 to address the economic decline resulting from the COVID-19 pandemic in the United States. The City’s allocation of funding from the CARES Act is $293 million and is intended to recover the necessary expenditures associated with the City’s pandemic response. In addition, there are other types of funding that may be available from supplementing existing grants as well. The City has implemented a process to ensure staff has a full accounting of all COVID-19 related expenditures for the purposes of recovering these expenditures through all possible sources of available funding.
Financial Impact
City staff is tracking all expenses related to the COVID-19 pandemic separately and regularly reporting these expenses to the City Council. The estimated value of $20 million is based on the actual goods received of $1.2 million through April 22, 2020, purchase orders of $13.4 million and estimated future expenses of $5.4 million related to testing and additional PPE. There may be future request for City Council authorizations based on the longevity of the COVID-19 pandemic.
Department
Responsible Department
This item is submitted by City Manager Ed Zuercher and the Finance Department.