O1998 (2)
EPWM: CP: AA: DP: CS: F:\..\SP-MISC\cc Reports\Threshold\Final Ordinance12_7.doc
City Council Meeting: January 9,2001 Santa Monica, California
ORDINANCE NUMBER l..2..2lL (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
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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, 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 unique or complex
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characteristics, the City Manager may authorize a phased selection process
for determining the best bidder if the characteristics of the project, including,
but not limited to its size, complexity, uniqueness or potential impact upon
the City, are such that a phased process would best effectuate the public
interest. The phased selection process shall solicit, review and evaluate the
qualifications of prospective bidders in accordance with the criteria 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 materials or services may be purchased more reasonably
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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 savings 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 ofthis Section were followed.
(4) 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.
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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 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 evaluating whether a person is the best bidder pursuant to this
Chapter, the City shall consider all of the following criteria which are relevant
to the bid:
(1) Price;
(2) The quality of the material or services offered;
(3) The ability, capacity and skill ofthe bidder to perform the contract
or provide the material or services;
(4) The capacity of the bidder to perform the contract or provide the
service promptly, within the time specified, and without delay or interference;
(5) The sufficiency of the bidder's financial resources;
(6) The character, integrity, reputation, judgment, training,
experience and efficiency of the bidder;
(7) The ability of the bidder to provide such future maintenance or
service as may be needed.
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(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 determining the applicability
and weight or relative weight of some or all of the criteria 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 criteria
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 financial and other
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resources;
(5) The character, integrity, 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 price 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 opinion 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 approval in accordance with procedures
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established by the City Manager.
(f) 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 days after making the finding.
SECTION 5. Section 2.24.080 of the 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
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, California state or county governments,
including, State of California agencies and agencies of counties, cities and
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special districts in the State of California and these materials and services
are supplied to the City at the same or better price, as was obtained
through the federal, State of California 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, drains, sewers, utilities, parks or
playgrounds by City employees;
(6) Items to be purchased are circulating library materials, including
books, periodicals, films, and recordings.
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
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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-quotation 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, 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 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 offering the overall best bid.
(3) The Purchasing Agent shall solicit bids by direct mail or
electronic 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 competition thereon, and such records shall also be open to
public inspection.
(c) (1) Notwithstanding any other provisions of this Section, prior to
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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 all 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 within 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
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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 inviting 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-advertise 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, 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.
(c) 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 preservation of life, health3
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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.
(d) (1) Notwithstanding any other provisions of this Section, prior to
awarding a contract the Purchasing Agent shall award a one percent price
preference when determining the best bid to all City businesses submitting
formal 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
eq ual 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 Municipal 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
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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 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 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
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City projects. In each such instance, the City Manager or the Director of
Emergency Services shall submit within thirty days to the City Council in
writing, a full explanation of the circumstances of such emergency which
shall become a part of a regular meeting of the City Council and shall be
open to public inspection.
SECTION 9. Section 2.24.130 of Santa Monica 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 prescribed by the Director of Finance. The Purchasing Agent shall transmit all
copies 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 Monica Municipal Code Chapter 2.24 is
amended to read as follows:
Section 2.24.190 Supplemental administrative orders.
The City Manager may prescribe from time to time, by administrative
order, such supplemental instructions as he or she may deem necessary to
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implement these rules and regulations in orderthatthe objects and purposes
of this Chapter may be accomplished.
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 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
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newspaper within 15 days after its adoption. This Ordinance shall become effective 30
days from its adoption.
APPROVED AS TO FORM:
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;' ~>-' _ k;j'.:'" Ft :",';u 1/ fee..'
MARSHA JONES MOUTRIE
City Attorney
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Adopted and approved this 9' day ot January, 20:,~~:,,;6L-:/ _~
Mike Feinstein, Mayor
State of California )
County of Los Angeles) ss.
City of Santa Monica )
I, Maria M. Stewart, City Clerk of the City of Santa Monica. 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 Tem Bloom. Mayor Feinstein
Noes: Council members: None
Abstain: Council members: None
Absent: Council members: Holbrook
ATTEST:
~~~-~~~oA-
Maria M. Stewart, Ci\y Clerk