Explanation
BACKGROUND
Columbus City Council and various City Departments contracting with not-for-profit organizations serving vulnerable populations have a need to authorize food and/or non-alcoholic beverage expenditures incurred during defined contract period terms. Previously, food and non-alcoholic beverage expenses, included as part of the contracted operating costs for these non-profit organizations, have been permitted from the date of original legislation adoption. Due to a lack of alignment between City budgeting and grant award schedules, for some of these agreements, the current practice presents a gap in expenditure coverage for expenses incurred after the date of grant award but prior to legislation adoption, creating hardships for non-profit organizations serving City residents. This ordinance is intended to conform to the guidance issued by the Ohio Attorney General in Opinion No. 82-006 and Ohio Auditor of State Bulletin No. 2003-005 that expenditures for food and beverage must be approved prospectively by a legislative authority in a duly enacted ordinance thereby addressing the gap in funding for these non-profit organizations.
On December 12, 2022, ordinance 3197-2022 amended the City Purchasing Code by adding section 329.35. Section 329.35 included code language regarding the purchase of food and beverages for a public purpose. Pursuant to this change to City Purchasing Code, the Department of Finance and Management promulgated a Food and Beverage Rule that provided guidelines to City Departments for the processing of related expenditures.
On February 12, 2024, ordinance 0394-2024 amended Section 329.35 to align with best practices and to conform to the intent of the original code language.
It is necessary to amend Section 329.35 again to ensure that food and/or non-alcoholic beverage expenditures incurred by not-for-profit organizations, as part of their operating costs to serve the City’s vulnerable residents, are permitted during the full time period as defined in the grant award. Food and/or non-alcoholic beverages purchased as part of these operating costs must adhere to the per-person, per-meal maximum established by the Federal General Services Administration (GSA) in effect at the time the expense is incurred, as described currently in Section 329.35.
Fiscal Impact: No funds are required.
Title
To amend Chapter 329 of the Columbus City Codes to authorize food and/or non-alcoholic beverage expenditures incurred during defined contract period terms, as part of standard operating costs for non-profit organizations serving vulnerable populations. ($0.00)
Body
WHEREAS, the health and welfare of residents of the City of Columbus, the public at large, and organizations serving residents facing housing and food insecurity is critical; and
WHEREAS, permitting non-profit organizations to purchase of food and non-alcoholic beverages serves the public purpose for the City’s vulnerable populations experiencing different types of insecurity; and
WHEREAS, Columbus City Council acknowledges and includes as operating costs, inherent to the mission of non-profit organizations engaged in this work, the purchase of food and non-alcoholic beverages for vulnerable residents, and that any or all of the expenditures authorized by ordinances for such agreements may be spent toward payment of food and non-alcoholic beverage expenses for such populations; and
WHEREAS, that the purchase of food and non-alcoholic beverages as part of these operating costs be permitted during the defined contract and/or award term; and
WHEREAS, it has become necessary in the usual daily operation that the purchase of food and non-alcoholic beverages as part of these operating costs be reimbursed at the federal General Services Administration (GSA) sets rates for meals; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That Section 329.35 of the Columbus City Codes be amended as follows:
329.35 - Purchase of food and beverages for a public purpose
(A) The authorizations in this section are granted for the public purpose of better providing for the health and welfare of residents of the City of Columbus, the public at large, and municipal officers and/or employees by supporting nonprofit organizations in their service of vulnerable populations experiencing housing and/or food insecurity, enhancing public engagement, facilitating public meetings, and providing for the efficient operation of the city.
(B) Absent any existing restrictions and/or prohibitions on the use of funds for this purpose, funds may be expended, and the expenditure is declared to be a public purpose, in order to provide food, refreshments, snacks, meals, mementos, or other like amenities and, if necessary, to rent a site or venue for the following:
(1) Community programs and events sponsored by the City; and
(2) Events honoring employees for work-related achievements and/or contributions to the community.
(3) Employee development programs to train and prepare staff for better programmatic and service delivery to the community.
(4) Extraordinary circumstances where food and beverage are needed for employee safety or program delivery.
(5) The provision of funding to support operating costs inherent to the mission of a nonprofit corporation as defined under Chapter 1702 of the Ohio Revised Code that serves vulnerable populations experiencing housing and/or food insecurity.
(C) The Director of the Department of Finance and Management is authorized to review and approve contracts with vendors to obtain the food, refreshments, snacks, meals, mementos, or other like amenities and to rent sites or venues under division (B) of this section, payable from funds appropriated for this purpose, so long as the expenditure meets the following criteria:
(1) The expenditure is integral to the successful execution or completion of a program, event, or engagement; or the expenditure is defined as an operating cost inherent to the mission of a nonprofit corporation as defined under Chapter 1702 of the Ohio Revised Code for serving vulnerable populations experiencing housing and/or food insecurity; and
(2) The expenditure is not manifestly arbitrary or unreasonable, as prescribed by the rules promulgated under Section 329.35(E).
(D) The Director of the Department of Finance and Management, or the Director's designee, shall review all expenditures of funds for the procurement of food, refreshments, snacks, meals, mementos, or other like amenities and to rent sites or venues as provided for in division (B) to assure compliance with the criteria outlined in division (C). No funds shall be expended under this section without the prior, written authorization of the Director of the Department of Finance and Management and no such authorization shall be given unless the request is found by the Director to comply with the criteria listed in divisions (B) and (C).
(E) The Director of the Department of Finance and Management is hereby empowered to adopt, promulgate, and enforce rules and regulations related to the administration and enforcement of the provisions of this section, and which shall establish, but are not limited to, the following standards:
(1) A per-person, per-meal cost not to exceed the applicable per diem by meal established by location as set by the Federal General Services Administration;
(2) Maximum allowable delivery fees, services charges, and gratuities.
(F) To be effective, the rules and regulations promulgated by the Director pursuant to this section must be filed with the City Clerk and approved by ordinance of Council.
(G) The procurement process for food, beverages, refreshments, snacks, meals, mementos, or other like amenities shall be as otherwise provided for in this chapter.
(H) The use of funds under this section to procure alcoholic beverages is strictly prohibited.
Section 2. That the existing Section 329.35 of the Columbus City Codes is hereby repealed.
Section 3. That this ordinance shall be take effect and be in force from and after the earliest period allowed by law.