SR-8B (23)
CA:f:atty\muni\strpts\rntt\bidpref
city Council Meeting 8-9-94
88
Santa Monica, California
AUG 0 9 199%
TO: Mayor and City council
FROM: City Attorney
SUBJECT: 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
INTRODUCTION
At its meeting on August 2, 1994, the city Council introduced for
first reading an ordinance 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.
The ordinance is now
presented to the city Council for adoption.
RECOMMENDATION
It is respectfully recommended that the accompanying ordinance be
adopted.
Prepared by: Marsha Jones Moutrie, City Attorney
AUG n 9 1994
88
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CA:f:\atty\muni\laws\jl\bidpref
city Council Meeting: 8-9-94
Santa Monica, California
ORDINANCE NUMBER 1762
(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:
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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.
(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-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 $25,000.00 in amount,
shall be made in the open market, without the
requirement of formal newspaper advertislng.
(2) All open market purchases,
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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.
(c)
(1) Notwithstanding
any
other
provisions of this section, until September 2,
1997, prior to awarding a contract the
Purchasing Agent shall provide a 1% price
preference to all City businesses submitting
Open Market order bids upon which will be
levied a State of Cal ifornia sales tax. The
Purchasing Agent shall administer the bidding
preference so that bid amounts received from
city businesses are reduced by 1% solely to
determine the rank order of the bids in the
selection process. If, after the 1% preference
is applied, a City business has submitted a bid
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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 2. section 2.24.100 of the Santa Monica Municipal Code
is amended to read as follows:
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 disposed of for 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
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notices inviting bids therefor, the first of
which shall be at least ten days before the
time for opening said bids. At the time
spec if ied 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
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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, 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.
(d) (1) Notwithstanding any other
provisions of this section, until September 2,
1997, prior to awarding a contract the
Purchasing Agent shall award a 1% price
preference when determining the lowest and 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 1% solely to determine the rank
order of the bids in the selection process.
If, after the 1% 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
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business so long as it 1S 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 3. Any prov1sion 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
unconsti tutional 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 invalid
or unconstitutional without regard to whether any portion of the
Ordinance would be subsequently declared invalid or
unconstitutional.
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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:
MARSHA JONES MOUTRIE
City Attorney
By:
~11 +~~(~_
~~TACHIKI
Chief Deputy City Attorney
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Adopted and approved tlus 9th day of August, 1994
:;ir ff ~
I hereby certify that the foregomg Ordmance No 1762 (CCS) was duly and regularly
adopted at a meetmg of The CIty CouncIl on the 9th day of August, 1994, by the followmg
CounCIl vote-
Ayes:
CouncIlmembers
Abdo, Genser, Holbrook, Olsen, Vazquez
Noes:
Councllmembers
Rosenstem
Abstam Councllmernbers. None
Absent. Councilmembers
Greenberg
ATTEST:
L//a~
~ - CIty Clerk'. .r ~ I'