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O1743 CA:f:atty\muni\laws\mtt\purchas4.ord City Council Meeting 5-10-94 Santa Monica, California ORDINANCE NUMBER 1743(CCS) (City Council Series) AN EMERGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ADDING SANTA MONICA MUNICIPAL CODE SECTIONS 2.24.071, 2.24.072 AND 2.24.073 AND AMENDING SANTA MONICA MUNICIPAL CODE SECTIONS 2.24.070, 2.24.080, 2.24.090, 2.24.100 AND 2.24.120 REGARDING PURCHASING PROCEDURES AND DECLARING THE PRESENCE OF AN EMERGENCY THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1. Santa Monica Municipal Code Section 2.24.070 is amended to read as follows: 2.24.070 competitive bidding. Pursuant to the terms of Sections 608 and 1508 of the City Charter, and in every case except as stated in Section 2.24.080, 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 regulations and 1 with such exceptions as are prescribed in the following sections. SECTION 2. Santa Monica Municipal Code section 2.24.071 is added to read as follows: 2.24.071. Public Works Contracts. (1) Every contract involving an expenditure of more than Twenty-Five Thousand Dollars ($25,000.00) for public works projects including, but not limited to, the construction of public buildings, streets, drains, sewers, utilities and parks shall be let to the lowest responsible bidder after notice by publication in a newspaper of general circulation in the City of Santa Monica by two (2) or more insertions, the first of which shall be published at least ten (10) days before the time for opening bids. (2) Public works contracts of Twenty-Five Thousand Dollars ($25,000.00) or less may be let to contract by informal purchasing procedures as set forth in section 2.24.090(2). (3) The city Council may reject any and all bids received whenever in the opinion of the City Council: 2 (a) The bid or bids do not comply with the bid notice and specifications; (b) The proposed proj ect or purchase should be abandoned or delayed; (c) The materials or services may be purchased more reasonably on the open market or the work done less expensively by City personnel; (d) The bids are higher anticipated and a new call for bids result in savings to the City; or (e) The best interests of the City would be served by a rejection of all bids. (4) By two-thirds affirmative vote of its membership, the city Council may forego the bidding procedures otherwise required by this Section if the City council finds that: (a) The goods or services can be purchased more economically on the open market; (b) There exists no competitive market for the .provision of the goods or services necessary to construct the public than would works project;. or ( c) Due to urgent necess i ty , the public health, welfare or safety would be 3 jeopardized if the bidding procedures of this section were followed. (d) During any period of a declared state of local emergency, the city Manager or the Director of Emergency Services is authorized to implement such practices, policies and procedures for the construction, maintenance, or repair of pUblic works projects as are necessary to protect the public health, welfare or safety without otherwise complying with this Section, if the city Manager or the Director of Emergency Services finds that complying with this section would cause unnecessary expense or delay. The City Manager or Director of Emergency Services shall report all such findings at a regular meeting of the city council no later than thirty (30) days after making the finding. SECTION 3. Santa Monica Municipal Code Section 2.24.072 is added to read as follows: 2.24.072. Lowest Responsible Bidder. In evaluating whether a person is the lowest responsible bidder pursuant to this Chapter, City staff may utilize some or all of the following criteria, in addition to price: 4 (1) The quality of the material or services offered. (2) The ability, capacity and skill of the bidder to perform the contract or provide the material or services. (3) The capacity of the bidder to perform the contract or provide the service promptly, within the time specified, and without delay or interference. (4) The sufficiency of the bidder's financial resources. (5) The character, integr i ty, reputation, judgment, training, experience and efficiency of the bidder. (6) The ability of the bidder to provide such future maintenance or service as may be needed. SECTION 4. Santa Monica Municipal Code section 2.24.073 is added to read as follows: 2.24.073. Contracts. (1) The city council shall approve every agreement involving an expenditure of more than Fifty Thousand Dollars ($50,000.00) for professional services. The award of such Professional services 5 contracts shall be made to the best qualified person or firm. (2) In determining the best qualified person or firm, the following criteria shall be utilized: (a) The training, credentials and experience of the person or firm; (b) The demonstrated competence, abili ty, capaci ty and skill of the person or firm to perform the contract or provide the services; (c) The capacity of the person or firm to perform the contract or provide the service promptly, within the time specified, and without delay; (d) The sufficiency of the person's or firm's financial and other resources; (e) The character, integrity, reputation and judgment of ,the person or firm; (f) The ability of the person or firm to provide such future service as may be needed; and (g) The price which the person or firm proposes to charge, including whether the price is fair, reasonable and competitive. 6 (3) The city 'council may in its sole discretion reject any and all proposed professional services agreements whenever in the opinion of the City council: (a) The agreement does not comply with the city's specifications or other requirements; (b) The proposed service should be abandoned or delayed; (c) The best interests of the City would be served by the rejection of the proposed professional service agreement. (4) The city Manager is authorized to solicit requests for proposals or qualifications or to proceed in such other fashion for professional services, whenever the city Manager determines in his or her sole discretion that the best interests of the city would be fully served by proceeding in such a manner. (5) Professional service contracts of Fifty Thousand Dollars ($50,000.00) or less may be awarded without City Council approval in accordance with procedures established by the city Manager. 7 (6) During any period of a declared state of local emergency, the City Manager or the Director of Emergency Services is authorized to implement such practices, policies and procedures for obtaining professional services as are necessary to protect the public health, welfare or safety without otherwise complying with this section, if the City Manager or the Director of Emergency Services finds that complying with this section would cause unnecessary expense or delay. The City Manager or Director of Emergency Services shall report all such findings at a regular meeting of the City Council no later than thirty (30) days after making the finding. SECTION 5. Santa Monica Municipal Code section 2.24.080 is amended to read as follows: 2.24.080 Exceptions to competitive bidding. The competitive bid procedure is not applicable to those instances where: (1) Competition does not exist, such as membership in professional' organizations, meetings, conventions, travel, legal advertising, public utilities, and proprietary 8 items of original equipment manufacturers 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, as was obtained through the federal, state or county competitive bid procedures. (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. " (4) Contracts services. are for professional (5) The work involved consists of repair of public buildings, streets, drains, sewers, maintenance or public works, utilities, parks or playgrounds by City employees; ( 6) Items to be purchased are circulating library materials, including books, periodicals, films, and recordings. SECTION 6. Santa Monica Municipal Code section 2.24.090 is amended to read as follows: 9 2.24.090 Informal purchasing procedures. (1) Convenience Purchase Orders. (a) Individual purchases related to the City's maintenance requirements, amounting to less than $1,000.00 aggregate amount per purchase order are exempted from competitive bid requirements. (b) In the event that the savings potential clearly does not justify this exemption, open market request-for-quotation procedures shall be followed. ( 2 ) Open Market Orders. Except as provided in sections 2.24.071, 2.24.073, 2.24.080 or 2.24.090(1), public works projects; all purchases of supplies, materials equipment or contractual services; and all sales of personal property of the City which has been obsolete or unusable, or for any other reason is to be disposed of, which are not more than $25,000.00 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 competitive bids and shall be awarded to the person offering the lowest and best bid. 10 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 Purchasing Department. The purchasing Agent shall keep a record of all open market orders and the bids submitted in competi tion thereon, and such records shall also be open to pUblic inspection. SECTION 7. Santa Monica Municipal Code section 2.24.100 is amended to read as follows: 2.24.100 Formal bidding procedures. All purchases of supplies, material, equipment or contractual services, except professional services, which shall be governed by section 2.24.073, and all sales of personal property of the City which has become obsolete or unusable, or is to be disposed of for any other reason, which is more than $25,000.00 in amount, shall be made after publication in a newspaper of general circulation in the City of Santa Monica, by two or more insertions, of notices inviting bids therefor, the first of which shall be at least ten days before the time for opening said bids. At the time specified in the notice inviting bids, such 11 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 affirmative votes, it may proceed to have such supplies, materials, equipment or contractual services purchased in the manner stated, without further observance of the provisions of this section. Purchases of supplies, materials, equipment or contractual services 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 necessity for the 12 preservation of life, health or property and shall be authorized by at least five 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 unnecessary expense and delay. SECTION 8. Santa Monica Municipal Code section 2.24.120 is amended to read as follows: section 2.24.120 - Emergency purchases. In case an emergency shall arise which is so urgent as to preclude action by the City Council and which requires the expenditure of funds for supplies, materials, equipment, contractual services, professional services, public works and other city projects, or whenever a resolution adopted by the City Council, or the Director of Emergency Services, declaring the existence of a Local Emergency, the City Manager or the Director of Emergency Services, or their authorized representatives, may authorize the purchasing agent to secure in the open market at the best reasonable price, any such supplies, materials, equipment, contractual services, professional services, or contracts for public works or other City 13 projects, even though the amount thereof shall exceed the sum of $25,000.00. During any period of Local Emergency, the City Manager or the Director of Emergency Services, or their representatives, are further authorized to negotiate or execute such contracts, agreements, applications or other documents with such other federal, state or local agencies or other groups and organizations as are necessary to provide or to obtain emergency aid, assistance or services to the City of Santa Monica and to contract for the 'immediate expenditure of public funds to safeguard life, health or property, including when necessary to protect public health, welfare and safety to expedite such contracts by shortening all required notice periods or waiving competitive bidding procedures for, the purchase of supplies, material, equipment, contractual services, professional services contracts, public works and other City projects. In each such instance, the City Manager or the Director of Emergency Services shall submit within thirty (30) days to the City Council in writing, a full explanation of the circumstances of such emergency which shall 14 become a part of a regular meeting of the city Council and shall be open to public inspection. SECTION 9. Pursuant to City Charter section 615, the City council finds this measure to be urgent in order to address continuing reconstruction efforts in response to the Northridge earthquake; and proceed with actions related to the provision of necessary shelter to individuals and to address health and safety concerns attendant upon persons living without shelter. SECTION 10. This Ordinance is declared to be an urgency measure adopted pursuant to the provisions of Section 615 of the Santa Monica City Charter. It is necessary for preserving the public peace, health and safety, and the urgency for its adoption is set forth in section 9 above. SECTION 11. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, are hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. SECTION 12. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconsti tutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the 15 remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional. SECTION 13. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall become effective upon adoption. APPROVED AS TO FORM: 'J!!JiU.)L-~JM~ MARSHA JONES~OUTRIE City Attorney 16 Adopted and approved this 10th day of May, 1994. ~ /-!h . '1.1ayor I hereby certify that the foregoing Ordinance No. 1743 (CCS) was duly and regularly adopted at a meeting of the City Council on the 10th day of May, 1994; by the following Council vote: Ayes: Councilmembers: Abdo, Genser, Greenberg, Holbrook, Olsen, Rosenstein, Vazquez Noes: Councilmembers: None Abstain: Councilmembers: None Absent: Councilmembers: None ATTEST: / G~.Uci / 4/~ I City Clerk