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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 .. 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: 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. (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, 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. (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 3 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 4 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 5 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 6 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. 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: MARSHA JONES MOUTRIE City Attorney By: ~11 +~~(~_ ~~TACHIKI Chief Deputy City Attorney 8 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'