SR-6-G (15)
CA RLK:SSS:msh Santa Mon~ca, California
~oun~~l Meet~ng 05~79 . ~ ?
Zt:J5...--t:)O '7"
MAY 2 2 1979
To: Mayor and C~ty Counc~l
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From: C~ty Attorney .I /~.J. ~. ~- , ! ~ ,
SubJect: Ordlnance Amendlng Competltlve Bid Purchaslng Procedures
INTRODUCTION
This report transm~ts for second read~ng and adopt~on the attached
ordlnance which provldes for the amendment of Santa Monica Munic~pal
Code Sectlons 2506, 2506A, 2507, 2508, 2508A, and 2509, relating
to cornpetltive bid purchaslng procedures.
ANALYSIS
At the Hay 8, 1979 meeting, the C~ty Counc~l introduced the attached
ordlnance, which establlshes a minimum threshhold for formal bld
procedures at $5,000, a $250 threshhold for informal bid procedures
and purchase order procedures for sums under that amount. The staff
report and ordinance are attached.
ALTERNATIVES
The Clty Councll may adopt the attached ordinance, modlfy lt or
reJect l.t.
RECQ1>.iMENDAT ION
It lS respectfully recommended that the Cl.ty Councl.l adopt the
attached ordinance.
Prepared by: Rlchard L. Knl.ckerbocker, Clty Attorney
Stephen Shane Stark, Ass~stant City Attorney
f,rf'
MAY 2 2 1979
. CA RLK. SSS'mc '- Santa~ca, California
C(;ru.ncil Mtg.
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ORDINANCE NO. 1125 CCCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA &~N-
DING SECTIONS 2506, 2506A, 2507,
2508, 2508A, AND 2509 OF THE SANTA
MONICA MUNICIPAL CODE, CONCERNING
COMPETITIVE BID PURCHASING PROCEDURES.
IVREREAS , The competitive bid purchasing procedures
set forth in Santa Monica Municipal Code Sections 2506, 2507, 2508,
2508A and 2509 were last amended on April 10, 1951; and
WHEREAS, the competitive aspects of purchasing procedures
are instituted to obtain savings for the City; and
WHEREAS, many minor purchases do not justify the delay and
expense involved in formal bid procedures, and
"t\lfIEREAS , inflationary factors have significantly diminished
the purchasing power of two thousand dollars ($2,000) which is the
current level above which formal bid procedures are required, and
WHEREAS, there is an informal bid procedure which eliminates
delay and expense for minor purchases; and
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WHEREAS, there are now authorized exceptions to the competi-
tive bid procedure which exist because competition does not exist or
because the procedure would be repetitive of other efforts.
THE CITY COUNCIL OF THE CITY OF SANTA MONICA ORDAINS
AS FOLLOt-JS.
SECTION 1. Section 2506 of the Santa Monica Municipal Code
is amended to read as follows:
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"SECTION 2506. COMPETITIVE BIDDING."
Pursuant to the terms of Section 1503 of the Santa Monica
City Charter, and in every case except as stated in Section 2506A,
before making any purchase of, or contract for supplies, materials,
equipment or contractual services, or before any sale of personal
property of the City which has become obsolete, or unusable, or for
any other reason is to be disposed of, the purchasing agent shall give
ample opportunity for competitive bidding under the rules and regulat-
ions and with such exceptions as are prescribed in the following
sections.
SECTION 2 Section 2506A of the Santa Monica Municipal Code
is amended to read as follows'
tlSECTION 2506A. EXCEPTION TO COMPETITIVE BIDDING"
The competitive bid procedure is not applicable to those
ins tances where:
(1) Competition does not exist, such as membership in
professional organizations, meetings, conventions, travel, legal
advertising, public utilities, and proprietary items of original
equipment manufacturers and/or their authorized exclusive distributors.
(2) Competitive bid procedures have already been utilized.
such as in purchasing from federal, state, or county agencies and these
materials and services are supplied to the City at the same or better
price.
(3) Items to be purchased are for resale to the public, such
as but not limited to the Civic Auditorium Snack Bar or Cemetery Plot
Marking products.
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(4) Contracts are for Professional Services.
SECTION 3. Section 2507 of the Santa Monica Municipal Code
is amended to read as follows
"SECTION 2507. INFORMAL PURCHASING PROCEDURESn
(1) CONVENIENCE PURCPASE ORDERS.
a) Individual purchase related to the City's main-
tenance requirements. amounting to less than two hundred fifty dollars
($250.00) aggregate amount per purchase order are exempted from comp-
etitive bid requirements.
b) In the event that the savings potential clearly
does not justify this exemption, open market request-far-quotation
procedures shall be followed.
(2) OPEN MARKET ORDERS.
Except as provided in Sections 2506A or 2507(1). all
purchases of supplies, materials, equipment or contractual services.
and all sales of personal property of the City which has becone obsolete
or unusable, or for any other reason is to be disposed of not more than
five thousand dollars ($5.000) in amount, shall be made in the open
market. without the requirement of formal newspaper advertising.
All open market purchases, wherever possible, shall be
based upon not less than three (3) competitive bids and shall be awarded
to the person offering the lowest and best bid. The Purchasing Agent
shall solicit bids by direct mail request to prospective vendors, or
by telephone. and by public notice on the bulletin board in the Division
of Purchases. The Purchasing Agent shall keep a record of all open
market orders and the bids submitted in competition thereon, and such
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records shall also be open to public inspection.
SECTION 4. Section 2508 of the Santa Monica Municipal Code
is amended to read as follows:
"SECTION 2508. FORMAL BIDDING PROCEDURES,"
All purchases of supplies, material, equipment or contractual
services, except professional services, and all sales or personal pro-
perty of the City which has become obsolete or unusable, or for any
other reason is to be disposed of, of more than five thousand dollars
($5,000) in amoun t , shall be made after publication in the official
newspaper, by two or more insertions, of notices inviting bids there-
for, the first of which shall be at least ten (10) days before the time
for opening said bids. At the time specified in the notice inviting
bids, such bids, shall be opened and declared publicly. The Purchasing
Agent shall tabulate all bids received pursuant to this Section and
shall refer them to the City Manager for presentation to the City
Council, which shall make the awards. The City Council may reject any
and all bids presented and may re-advertise in its discretion.
After rejecting bids, or if no bids are received, the City
Council may declare and determine that, in its opinion, the supplies,
materials, equipment or contractual services may be purchased under
more favorable circumstances in the open market, and after the adoption
of a resolution to this effect by at least five (5) affirmative votes,
it may proceed to have such supplies, materials, equipment or contract-
ual services purchases in the manner stated, without further observance
of the provisions of this Section.
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Such purchases may be made without advertising for bids if
the purchase of such supplies. materials, equipment or contractual
services shall be deemed by the City Council to be of urgent necess1ty
for the preservation of life, health or property and shall be author-
ized by at least five (5) affirmative votes. or it shall be determined
by such vote of the City Council that to advertise for bids would be
to no avail and would cause unecessary expense and delay.
SECTION 5. Section 2508A of the Santa Monica Municipal Code
is amended to read as follows:
nSECTION 2508A. SALE OF REAL PROPERTY"
All sales of real property owned by the City of Santa Monica
shall be made after publication in the official newspaper by two or more
insertions of notice invitings bids therefor, the first of which shall
be at least ten (10) days before the time for opening said bids Such
sales shall be awarded to the highest and best bidder. At the time
specified in the notice inviting bids, such bids publicly may be opened
and declared The Purchasing Agent shall tabulate all bids received
pursuant to this Section and shall refer them to the City Manager for
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presentation to the City Council and the Council shall make the award.
The City Council may reject any and all bids presented and may re-
advertise in its discretion.
After rejecting bids, or if no bids are received, the City
Council may declare and determine that in its opinion such real
property may be sold in the open market and after the adOPtion of a
resolution to this effect at least five (5) affirmative votes, it
may proceed to have such real property sold without further observance
of the necessity of calling for bids.
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Sales of real property may be made without advertisinp. for
bids if the C~ty Council, by a resolution adonted bv at least -i="ive (5)
affirmative votes, shall determine bv such vote that to advertise for
bids would be to no avail and would cause unnecessary expense and delay
or would not be in the best interests of the City
The City Council, by resolution, way authorize the sale of
City-m~ed real property pursuant to the provisions of this Section if
by the same or other resolution it has been declared that such property
is no longer needed for the purpose acquired and that said pronerty or
the title thereto is not needed for any public purpose.
SECTION 6. Section 2509 of the Santa ~1onica 1>.1unicipal
Code is a~ended to read as fo llmvs
"SECTION 2509 E~rERGENC~ PURCHASES "
In case an e~ergency shall arise which is so urgent as to pre-
clude action bv the C~ty Council and wh~ch requires any nurchase of sUDnlies,
materials, equip~ent or contractual services, the City Hanafer may authorize
the Purchasing Agent to secure in the open IDarket at the lowest reasonable
prlce, any such supplies, materials, equiD~ent or contractual services
even though the amount thereof shall exceed the sum of twenty-Five thousand
dollars ($25,000) In each such instance, the City Manager shall subpit
to the City Council in writing, a full explanation of the circumstances
of such ewergency which shall become a nart of the next ensuiny meeting
of such City Council and shall be open to public insDection.
SECTION 7
Any provisions of the Santa l-lonica l.,funicinal Code or apnendices
thereto inconsistent herewith to the extent of such inconsistencies and
,
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no further, are hereby repealed or modified to that extent necessary to
effect the provisions of this ordinance.
SECTION 8.
If any section, subsection, sentence, clause or ohrase
of this ordinance is for any reason held to be invalid or unconstitutional
by a decision of any court o~ competent iurisdiction, such decision shall
not affect the validity of the re~ainder o~ this ordinance The City
Council hereby declares that it would have passed this ordinance and each
and every section, subsection, sentence, clause or ohrase not declared
invalid or unconstitutional without regard to whether any oortion of the
ordinance would be subsequently declared invalid or unconstitutional
SECTION 9.
The Mayor shall sign and the City Clerk shall attest to the
passage of this ord~nance The City Clerk shall cause the saI'1e to be
published once in the official newsvaner within fifteen (15) da~Ts after
~ts adoption The ordinance shall beco~e effective after thirty (30) days
from its adoDtion
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CA RLK:SSS:nc tilt Santa ~a, Californ1a
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ADOPTED and APPROVED this 22nd day of J.{ay ,
1979.
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liAYOR PRO TEMPORE
ATTEST:
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iP?l~ - _ ~L(:Q.i.-1..--
rY~}~ ttlerk
APPROVED AS TO FOR.'{:
S~~~
ftdi~ C 1. ty Attorney
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ADOPTED AND APPROVED THIS 22nd DAY
OF Nay J 1979,
~ ~ h - /?-.-SL
MAYOR PRO TEMPORE
I HEREBY CERTIFY THAT THE FOREGOING ORDINANCE~
No. 1125 J WAS DULY AND REGULARLY INTRODUCED AT A MEETING OF
THE CITY COUNCIL ON THE 8th DAY OF May ~ 1979; THAT
THE SAID ORDINANCE WAS THEREAFTER DULY ADOPTED AT A MEETING
OF THE CITY COUNCIL ON THE 22nd DAY OF May ~ 1979
BY THE FOllOWING COUNCIL YOTE:
AYES: (OUNCI L~'EKBERS: ~aNbrick, Jennin~s, Scott, Swink,
)annatta, Mayor ro Tempore Reed
NOES: (OUNeI U.1Er.1BERS: None
ABSENT: (OUNCI LMEt'1BERS: Mayor van den Steenhoven
ATTEST:
~ ~k
.~' ~ .-
ry~
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