SR-8D (5)
PURCH:PW:sd/sramend.wp
Council Meeting: August 2, 1994
Santa Monica,
€a18rD
AUG 0 2 1994
TO: Mayor and City Counc~l
FROM: City Staff
SUBJECT: Ordinance to Amend the Municipal Code to Provide a 1%
Bidding Preference for Santa Monica Businesses for 3
years.
INTRODUCTION
ThlS staff report recommends the City Council introduce for first
reading the attached ordlnance to amend sectlons 2.24.090(2) and
2.24.100 of the Municipal Code to provide a 1% bidding preference
for Santa Mon~ca businesses submittlng informal and formal bids for
which Sales Tax would be pald. The bldding preferences would be
effective for a three-year period.
DISCUSSION
The City Council directed the City Attorney to amend the Munlcipal
Code to provide for a 1% biddlng preference to help City
businesses.
The proposed biddlng preference will assist City
businesses which have been un~quely burdened by the physical damage
resulting from the Northridge Earthquake.
The b~dding preference would be in place for three years. At the
end of the period, ~t is antlcipated that City bus~nesses will have
sufficiently recovered from the effects of the earthquake to
obviate the need for the bldding preference. However, staff will
confer with the business community and submit a report on the
matter to the Council prlor to the expiration of the three year
period.
AUG 0 2 1994
80
To 1mplement the 1% bldding preference, the Purchasing Agent will:
1) for bid comparison purposes, reduce all bids from City
businesses for wh1ch Sales Tax would be pa1d by the City by 1%; and
2) compare the lowest 1% reduced City-buslness-bid to the lowest
non-City business bid.
If the 1% reduced City-business-bid is
equal to or lower than the lowest b1d from a non-City business, the
bid would be awarded at the amount bid to the City business, all
other evaluation factors being equal. The 1% additional cost paid
by the City would be recouped through the additional City share of
Sales Tax generated by the purchase.
BUDGET/FINANCIAL IMPACT
Durlng the three-year 1% bidding preference period, the cost of
purchases which would otherwise have been made from businesses
located outside the City could lncrease up to 1%.
However, the
resulting increase in purchasing volume from buslnesses located in
the City of Santa Monica would result 1n additional City Sales
Taxes, and other economic benefits to the City so that the net
flscal impact to the C1ty would be lnsigniflcant.
RECOMMENDATION
It 1S recommended that the City Council introduce for first reading
the attached ordlnance to amend Sections 2.24.090(2) and 2.24.100
of the Municipal Code to provide a 1% Bidding Preference for Santa
Monlca businesses for a three-year period.
Prepared By:
Marsha Jones Moutr1e, City Attorney
C.M. Denn1s, Director of Finance
Pam Wortham, Purchaslng Agent
7/29/94
CA:f:\atty\muni\laws\jl\bidpref
City Council Meeting: 8-2-94
Santa Monica, California
ORDINANCE NUMBER
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SANTA MONICA AMENDING SECTIONS 2.24.090(2)
AND 2.24.100 OF THE SANTA MONICA MUNICIPAL
CODE TO PROVIDE A 1% BIDDING PREFERENCE FOR
SANTA MONICA BUSINESSES
WHEREAS, the business community of the City of Santa Monica
has been adversely impacted by the January 17, 1994 Northridge
earthquake which caused extensive physical and economic damage to
Santa Monica businesses;
WHEREAS, the damage suffered by Santa Monica businesses was
unique in that nearby communities suffered significantly less
damage and other communities suffered no damage at all;
WHEREAS, implementing a temporary bidding preference for City
businesses will help alleviate the negative impacts of the
earthquake by stimulating additional business transactions within
the City and encouraging local businesses to remain in the city
thereby generating various fiscal and economic benefits to the
City;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
1
SECTION 1. Section 2.24.090 of the Santa Monica Municipal
Code is amended to read as the follows:
2.24.090 Informal purchasing procedures.
(~a) Convenience Purchase Orders.
(a1) 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.
(ti2) In the event that the savings
potential clearly does not Justify this
exemption, open market request-far-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(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 1n amount,
shall be made in the open market, without the
requirement of formal newspaper advertising.
(2) All open market purchases,
2
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.
(3) 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 competition thereon,
and such records shall also be open to public
inspection.
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SECTION 2, Section 2.24.100 of the Santa Monica Municipal Code
is amended to read as follows:
2.24.100 Formal bidding procedures.
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purchases of supplies, material, equipment or
contractual
services,
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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, of ~;~ic~ i~ ~ore than $25,000.00
i~ ~~:)~~tl shall be made ~..J . .,. 1,,-11' ~ .!....J ~"I .,:-
bidder after publication in a newspaper of
general circulation in the City of Santa
4
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 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
5
without advert1s1ng 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, 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.
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SECTION 3. 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
effectuate the provisions of this Ordinance.
SECTION 4,
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 any 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, clause, or phrase, not declared lnvalid
or unconstitutional without regard to whether any portion of the
Ordinance
would
be
subsequently
declared
invalid
or
unconstitutional.
7
SECTION 5. The City Clerk shall certify to the adoption of
this Resolution, and thenceforth and thereafter the same shall be
in full force and effect.
APPROVED AS TO FORM:
~ k~
MARSHA JON~RIE
City Attorney
8