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O1998 EPWM CP AA DP CS F \ \SP-MISC\cc Reports\Threshold\Flnal Ordlnance12_7 doc City Council Meeting January 9,2001 Santa MOnica, California ORDINANCE NUMBER 1998 (CCS) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING VARIOUS SECTIONS OF CHAPTER 2 24 OF THE SANTA MONICA MUNICIPAL CODE TO INCREASE THE DOLLAR LIMIT FOR FORMAL BIDDING PROCEDURES, INCREASE THE DOLLAR LIMIT FOR PROFESSIONAL SERVICES CONTRACTS, INCREASE THE DOLLAR LIMIT FOR CONVENIENCE PURCHASE ORDERS, CHANGE THE WORDING OF CERTAIN SECTIONS TO REFLECT CURRENT PURCHASING PRACTICES, AND CLARIFYING THE DEFINITION OF LOWEST RESPONSIBLE BIDDER THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS SECTION 1 Section 2 24 040 of the Santa MOnica MUniCipal Code IS amended to read as follows Section 2.24.040 Additional powers of Purchasing Agent In addition to the above enumerated powers, the Purchasing Agent shall have the power to (1) Contract for all public utility services and all other contractual services, such as towel and cleaning services, (2) Negotiate all leases for grounds, bUildings, office, or other space 1 reqUIred by any agency of the City government, (3) Contract for the rental, repair or maintenance of equipment, machinery, and city-owned personal property, and (4) NegotIate the leasing by any agency of the City, of any personal property to be leased by or from saId City. SECTION 2 Section 2 24 071 of the Santa MOnica MUnicIpal Code is amended to read as follows Section 2.24.071 Public works contracts (a) Every contract involvIng an expendIture of more than one- hundred thousand dollars for public works projects including I but not limIted to, the construction of public buildings, streets, draIns, sewers, utilities and parks shall be let to the best bidder after notice by publication In a newspaper of general CirculatIon In the City of Santa MOnica by two or more InsertIons, the first of which shall be published at least ten days before the time for opening bids (b) Public works contracts of one-hundred thousand dollars or less may be let to contract by Informal purchaSing procedures as set forth In Section 2 24 090(2) (c) For public works projects estimated to exceed one million dollars In cost or for public works projects with umque or complex 2 characteristics, the City Manager may authorize a phased selection process for determinIng the best bidder If the charactenstics ofthe project, including, but not limited to Its Size, complexity, umqueness or potentia/Impact upon the City, are such that a phased process would best effectuate the public Interest. The phased selection process shall sohclt, review and evaluate the qualifications of prospective bidders In accordance WIth the cntena set forth In Santa MOnica MUniCipal Code Section 2 24 072, With proJect specIfications and With such administrative Instructions, rules, and regulations as may be Issued by the City Manager The best bidder shall be competitively selected from those prospective bidders who have been determined as qualified to responsIbly complete the proJect In accordance With applicable City criteria. The City Manager is authorized to issue administrative instructions, rules. and regulations as necessary for the purpose of satisfying the requirements of thiS subsection (d) The City CounCil may reJect any and all bids received whenever In the opinion of the City CounCil (1) The bId or bids do not comply With the bid notice and speCifications, (2) The proposed project or purchase should be abandoned or delayed, (3) The matenals or servIces may be purchased more reasonably 3 on the open market or the work done less expensively by CIty personnel, (4) The bids are higher than anticipated and a new call for bIds would result In savmgs to the CIty, or (5) The best Interests of the CIty would be served by a rejection of any or all bIds (e) 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. (1) The goods or services can be purchased more economically on the open market; (2) There eXIsts no competitive market for the provision of the goods or services necessary to construct the public works proJect, or (3) Due to urgent necessIty, the public health, welfare or safety would be Jeopardized if the bidding procedures ofthls Section were followed (4) Dunng any penod 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 complymg 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. 4 The CIty Manager or Director of Emergency ServIces shall report all such findings at a regular meetmg ofthe City Council no later than thirty days after making the finding SECTION 3 SectIon 2 24 072 of the Santa MOnica MUnicipal Code IS amended to read as follows' Section 2.24.072 Best bidder In evaluatmg whether a person IS the best bidder pursuant to this Chapter, the City shall conSider all of the follOWing cnterla which are relevant to the bid (1) Price, (2) The quality of the material or services offered, (3) The abIlity, capacity and skIll of the bidder to perform the contract or proVide the material or servIces, (4) The capacity ofthe bidder to perform the contract or proVide the service promptly, wlthm the time speCified, and WIthout delay or interference, (5) The suffiCiency of the bidder's financial resources, (6) The character. mtegrlty, reputatIon, Judgment, training, experience and efficiency of the bIdder, (7) The ability of the bidder to prOVide such future mamtenance or service as may be needed. 5 (8) Any other factor which wIll further the Intent set forth In Section 608 of the City Charter The City shall have absolute discretion In deterrmmng the applicability and weight or relative weight of some or all ofthe crltena listed above and IS not reqUired to select the lowest monetary bidder SECTION 4 Section 2 24 073 of the Santa Monica Municipal Code IS amended to read as follows Section 2.24.073 Professional services contracts. (a) The City CounCIl shall approve every agreement InvolVing an expenditure of more than fifty-five thousand dollars for profeSSIonal servIces The award of such contracts shall be made to the best qualIfied person or firm (b) In determining the best qualified person or firm, the follOWing cnterla shall be utilized (1) The traIning, credentials and experience of the person or firm; (2) The demonstrated competence, ability, capacity and skill of the person or firm to perform the contract or proVide the services, (3) The capacIty of the person or firm to perform the contract or proVide the service promptly, WithIn the time speCified, and WIthout delay; (4) The suffiCiency of the person's or firm's fmanclal and other 6 resources, (5) The character, mtegnty, reputation and Judgment of the person or firm, (6) The ability of the person or firm to provide such future service as may be needed, and (7) The price which the person or firm proposes to charge, IncludIng whether the pnce IS fair, reasonable and competitive (c) The City Council may In Its sole discretion reJect any and all proposed professional services agreements whenever In the opimon of the City Council (1) The agreement does not comply with the CIty's specIfications or other reqUirements; (2) The proposed service should be abandoned or delayed, (3) The best Interests of the City would be served by the rejection of the proposed professIonal service agreement (d) 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 (e) ProfeSSional service contracts of fifty-five thousand dollars or less may be awarded without City CouncIl approvalm accordance with procedures 7 established by the City Manager (f) Dunng 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 meetmg ofthe City Council no later than thIrty days after making the findIng SECTION 5 Section 2 24 080 ofthe Santa MonIca MUnicipal Code IS amended to read as follows Section 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 organrzatlons, meetings, conventions, travel, legal advertiSing, public utilitIes, and propnetary Items of onglnal eqUipment manufacturers andlor their authOrized exclUSive dlstnbutors, (2) CompetitIve bid procedures have already been utilized, such as In purchasmg from federal, Callforma state or county governments, Including. State of California agencies and agencies of counties, CitIes and 8 specIal districts In the State of Callforma and these matenals and services are supplied to the CIty at the same or better price, as was obtained through the federal, State of Callforma agencies and agencies of counties, cities and specIal districts In the State of California 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 are for profeSSional services, (5) The work Involved consists of maintenance or repair of publIc bUildings, public works, streets, drams, sewers, utilities, parks or playgrounds by City employees, (6) Items to be purchased are cIrculating library materials, including books, periodicals, films, and recordmgs SECTION 6 Section 2 24 090 of Santa MOnica MUniCipal Code Chapter 2 24 IS amended to read as follows. Section 2.24.090 Informal purchasing procedures (a) Convenience Purchase Orders. (1) IndiVIdual purchases related to the City's maintenance requirements, amounting to less than five thousand dollars aggregate 9 amount per purchase order are exempted from competitive bid reqUirements (2) In the event that the savIngs potential clearly does not JUstify thIs exemption, open market request-for-quotatlon procedures shall be followed (b) Open Market Orders (1) Except as provided In Sections 2 24 071, 2 24 073, 2 24 080 or 2.24 090, public works projects, all purchases of supplies, matenals 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 one-hundred thousand dollars In amount, shall be made In the open market, without the reqUirement of formal newspaper advertising (2) All open market purchases, wherever pOSSible, shall be based upon not less than three competitive bids and shall be awarded to the person offenng the overall best bid (3) The PurchaSing Agent shall sohclt bids by direct mad or electroniC mall 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 competition thereon, and such records shall also be open to public Inspectron (c) (1) NotwIthstanding any other proVISions of thiS Section, pnor to 10 awarding a contract the Purchasing Agent shall provide a one percent price preference to all City bUSinesses submitting open market order bIds upon which will be levied a State of California sales tax The Purchasing Agent shall adminIster the bidding preference so that bid amounts received from City bUSInesses are reduced by one percent solely to determine the rank order of the bids In the selection process If, after the one percent preference IS applied, a City bUSiness has submitted a bId whIch is equal to or IS lower than aU other bids, the Purchasing Agent shall award the contract to the City bUSiness so long as it IS otherwise the most responsible and best bidder (2) For purposes of thIS provISIon a City bUSiness shall be a bUSIness licensed by the City of Santa MOnica to conduct business In the CIty and whIch shall have a place of bUSiness wlthm the City other than a post office mailing box SECTION 7 Section 2 24 100 of Santa Monica MUniCipal Code Chapter 2 24 IS amended to read as follows Section 2.24.100 Formal bidding procedures. (a) Except as otherwise provided, all purchases of supplies, material, eqUipment or contractual services, other than 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 11 dIsposed of for any other reason, of more than one-hundred thousand dollars, shall be made to the best bidder after publication In a newspaper of general circulation In the CIty of Santa MOnica, by two or more InsertIons, of notices Invltmg bIds therefore, 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 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-advertlse In Its discretion (b) After rejecting bids, or If no bids are receIved, the City Council may declare and determine that, In ItS OpiniOn, the supplies, matenals, 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, materrals, equipment or contractual services purchased m the manner stated, Without further observance of the provIsions of thiS section (c) Purchases of supplies, materials, equipment or contractual services may be made Without advertiSIng for bids If the purchase of such supplies, matenals, eqUipment or contractual services shall be deemed by the City Council to be of urgent necessity for the preservation of life, health 12 or property and shall be authorized by at least five affirmative votes, or It shall be determmed by such vote of the City Council that to advertise for bids would be to no avail and would cause unnecessary expense and delay (d) (1) Notwithstanding any other provIsions of this Section, prior to awarding a contract the Purchasing Agent shall award a one percent prrce preference when determining the best bid to all City bUSinesses submitting formal bids upon which Will be leVied a State of Callfornta sales tax The Purchasing Agent shall admlntster the bIddIng preference so that bid amounts received from City bUSinesses are reduced by one percent solely to determine the rank order of the bids In the selection process If, after the one percent preference IS applied, a City bUSiness has submItted a bid which is equal to or IS lower than all other bids, the PurchaSing Agent shall award the contract to the City bUSiness so long as It IS otherwIse the best bidder. (2) For purposes of thiS prOVISion a City bUSiness shall be a bUSiness licensed by the City of Santa MOnica to conduct bUSiness In the City and which shall have a place of bUSiness Within the CIty other than a post office mailing box SECTION 8 Section 2 24 120 of Santa MOnica Mumclpal Code Chapter 2 24 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 13 action by the City Council and which requires the expenditure of funds for supplies, matenals, 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, declanng the eXistence of a local emergency, the CIty Manager or the Director of Emergency Services, or their authorized representatives, may authorrze 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 projects, even though the amount thereof shall exceed one-hundred thousand dollars 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 Monrca 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 penods or waIVIng competitive blddrng procedures for, the purchase of supplies, matenal, eqUipment, contractual services, profeSSional services contracts, public works and other 14 City prOjects In each such Instance, the City Manager or the Director of Emergency Services shall submit withIn thirty days to the City Council m Writing, a full explanation of the circumstances of such emergency which shall become a part of a regular meetmg of the City Council and shall be open to public inspection SECTION 9 Section 2 24 130 of Santa Monrca MUnicipal Code Chapter 2 24 IS amended to read as follows Section 2.24.130 Purchase orders Upon ascertainIng the price to be paId for any supplies, materials, eqUipment or contractual services, the PurchaSing Agent shall prepare a purchase order on a form prescnbed by the Director of Finance The PurchaSing Agent shall transmit all caples of such purchase order to the Director of Finance who shall examine the same and shall ascertain If there IS to the credit of the agency of the City for whose benefit such purchase IS to be made, a suffiCient unencumbered appropriated balance In excess of all unpaId obligations to defray the amount of such order SECTION 10 Section 2 24 190 of Santa Monrca MUniCipal Code Chapter 2 24 IS amended to read as follows Section 2.24.190 Supplemental administrative orders. The City Manager may prescnbe from time to time, by admlnrstratlve order, such supplemental InstructIons as he or she may deem necessary to 15 Implement these rules and regulations In order that the objects and purposes of this Chapter may be accomphshed 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, IS 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 unconstitutional by a deCISion of any court of competent JUriSdiction, such deCISIon shall not affect the valIdIty of the remammg 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 Invahd or unconstitutional Without regard to whether any portion of the ordInance would be subsequently declared Invahd 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 16 newspaper wlthm 15 days after Its adoption This Ordinance shall become effectIVe 30 days from ItS adoptIon APPROVED AS TO FORM n" /-1" U-//f--'WkCDJl; j{((Ll MARSHA JONES MOUTRlE City Attorney 17 Adopted and approved this 9th day of January, 2001. ~/,'R? ~ / /?-ii~::.-I: .-?- Mike Feinstein, I-M~r State of California ) County of Los Angeles) ss City of Santa MOnica ) I, Maria M Stewart, City Clerk of the City of Santa Monsca, do hereby certify that the foregoing Ordinance No. 1998 (CCS) had it's introduction on December 19, 2001, and It'S adoption at the City Council meeting held on January 9, 2001, by the following vote. Ayes CounCil members O'Connor, McKeown, Genser, Katz, Mayor Pro Tern Bloom, Mayor Feinstein Noes Council members. None Abstain Council members None Absent. Council members. Holbrook ATTEST ~~-~~,~ Mana M. Stewart, c~ Clerk