SR-8-B (36)
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PURCH PW br f \flnance\purch\stfrpts\srbdmunI
Council Meeting February 10, 1998
F~B 1 0 1S:8
Santa MOnica, CA
TO Mayor and City Council
FROM City Staff
SUBJECT Recommendation to Approve a Local Business Outreach Program and to
Introduce for First Reading an Ordmance to Delete Reference to a 1 %
Bidding Preference for Santa MOnica Businesses from the MUnicipal Code
Introduction
This report recommends that the City Council approve a Local Business Outreach
Program and Introduce for first reading an ordinance to delete reference to a 1 % bidding
preference for Santa Monica businesses from the MUnicipal Code
Backaround
On December 14, 1993, Council amended the MUnicipal Code (Ordinance #1762-CCS) to
provide a 1 % bidding preference for Santa MOnica businesses submitting Informal and
formal bids to the City The provIsion was specifically limited to a three-year penod It
was Intended to promote local businesses, generate economic benefits within the City,
and maintain a solid Sales Tax base within Santa MOnica dUring the recessIOn
The three-year penod expired on August 31, 1997 Dunng those three years, only two of
approximately 13,000 Informal and formal bids were awarded as a result of application of
the 1 % preference On October 28, 1997, staff recommended that reference to the 1 %
bidding preference be eliminated from the MUnicipal Code and Council directed staff to
confer with the Santa Monica Chamber of Commerce to explore alternatives for achieVing
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the ongmal objectives of the 1 % blddmg preference The Chamber's Local Government
CommIttee, Board of Directors and City staff subsequently met and agreed that 1)
mcreasmg the number of bid awards to Santa MOnica bus messes 15 of benefit to the local
economy, and 2) a 1 % bidding preference IS not an effective tool to accomplish this
objective Alternate ways to achieve this Important policy objective were discussed and a
two-year outreach program was designed Highlights of the program set forth In the
attached letter from the Chamber are as follows
1 The Chamber will provide the City's Purchasing DIVIsion with an updated copy of ItS
Business and Membership GUide, Includmg e-mail addresses of all members City
staff will contact these businesses, encouraging them to participate In the City's
purchasing program
2 The City's Purchasmg DIvIsion will conduct workshops at the Chamber offices twice
a year and meet with businesses at the Purchasmg office to let new Chamber
members know how to participate effectively In the City's purchasmg program
At the end of the first and second years of operation of the outreach program, staff Will
provide information to the Chamber and Council regardmg the program's success as
measured by the number of additional bids awarded to Santa MOnica busmesses
Budget/Financial Imoact
The Local BUSiness Outreach Program IS expected to mcrease the number of bids
awarded to City bUSinesses, thereby Increasmg City government revenues It 15 not
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possible at this time to specifically estimate the amount of additional City revenue to be
realized
Recommendation
It IS recommended that Council approve the Local Business Outreach Program and
Introduce the accompanymg Ordinance for first readmg
Prepared By Mike Dennis, Director of Fmance
Pam Wortham, PurchasIng Agent
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501 Colorado -\\enue. SUIte 1::'0
Santa \Ionlca. CJltfornlJ 9040t-.:..UO
(31Ol393-9825 . F J.X U 1(1) 394--1868
November 25, 1997
Mr Mike Denms
Director of Finance
City of Santa Monica
Dear Mike:
On behalf of Santa Monica Chamber of Commerce President Mark Olson and the Chamber's
Officers and Board of Directors. I want to express our SIncere appreciation to you for your
Invaluable time and partiCipation in the Board's meetmg this morning. The follOWing motIOn was
unanimously approved regarding your suggested alternative action:
Recommend to the City Council that the following Items be implemented on a two year
basis with an evaluation to take place by the City and Chamber as to their success before
the end of the second year of their implementation:
1. SMCofC will provide an updated copy of the Santa Monica Chamber of Commerce
Business Profile & Membership Gu;tk to the Purchasing Division and include E-mail
addresses of the vendon in tbe guide.
2. The SMCofC wiD refer new Chamber Memben to visit the Purchasing Division to
familiarize themselves with doing business with the City of SM.
3. The Purchasing Division wiD walk new Chamber Members through the informal and
formal bidding procedures by conducnng workshops at the Cbamber offices twice a year
and by meeting with new businesses at the Purchasing Office.
4. The SMCofC will encourage its Members to use the City's WEB Page for assessing
information about Purchasing... well ... the Finance Department.
5. By adopting such a procesl, the Chamber believes this will save the City money, revenue
(rom the City's Business License Tax will increase and a clear message from the City that
it supports economic sustainable practices as they apply to our City's businesses will result
in a continuing partnering between the City and Chamber for our community's economic
health and well-being.
6. The SMCofC also wants to meet with the City Staft'to review and assist with the
implementation of the program by helping with the data coUecnon and any survey which
may be needed. The Chamber wants to participate in the creation and implementation of a
tracking process re: City business that Santa Monica businesses are receiving and bow
many Santa Monica businesses actually place their bids with the City over the two year
period.
As you can see. your four suggested items were mcluded in thell actIon along With two items
from the Government Affairs Committee's recommended motIon. Please call me if you have any
questions. Again, thank you very much for your time and partlcipatJ.on!
~nCerelY yours.
\ .
Dame L. Ehrler. Executive Vice PreSIdent
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CIty Council Meeting 2-10-98
Santa MOnica, California
ORDINANCE NUMBER
(City Council Senes)
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA AMENDING MUNICIPAL CODE
SECTIONS 2 24 090 AND 2 24 100 AND REPEALING ORDINANCE
NUMBER 1762 (CCS) TO DELETE THE ONE PERCENT
BIDDING PREFERENCE FOR SANTA MONICA BUSINESSES
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN
AS FOLLOWS
SECTION 1 Santa MOnica MUnicipal Code Section 9 24 090 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 $1,000 00 aggregate 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-far-quotatIon procedures shall
be followed
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(b) Open Market Orders
(1) Except as provided In Sections 224071, 224073,
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 $25,000 00 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 lowest and best bid
(3) The Purchasing Agent shall soliCit bids by direct 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
inspection
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SECTION 2 Santa Monica MUniCipal Code Section 2 24 100 IS amended to read
as follows
2.24.100 Formal bidding procedures.
(a) Except as otherwIse prOVIded, all purchases of supplies,
matenal, 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
dIsposed offor any other reason. of more than $25,000 00. shall be made to
the lowest and 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 therefor. the first of which shall be at least ten days before the
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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 dlscretJon
(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, matenals, equipment or contractual services purchased In the
manner stated, without further observance of the provisions of thiS section
(c) Purchases of supplies, matenals, 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 or
property and shall be authonzed by at least five affirmative votes, or Jt 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
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SECTION 3 Ordinance Number 1762 (CCS), adopted by the Santa MOnica City
Council on August 9, 1994, IS hereby repealed In Its entirety
SECTION 4 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 Ordmance
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SECTION 5 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 Junsdlctlon, 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 6 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 30
days from ItS adoption.
APPROVED AS TO FORM
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/ i'JLl.-UL (C;(t U dLU;{( fLl~
MARSHA JONES MOUTRIE
City Attorney
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