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SR-8B (29) 88 AUG 1 0 I:; ~ f: \atty\mu nl\strpts \m}m\bld pref2 sr City Council Meeting 8-10-99 Santa MOnica, California TO Mayor and City Council FROM City Staff SUBJECT An OrdInance Amendmg Sections 2 24 090(2) and 2 24 100 of the Munrclpal Code to Provide a 1 % Bidding Preference for Santa MOnica Businesses Introduction The City Council recently directed staff to prepare an ordinance remstatmg the bid preference for Santa MOnica businesses In response to that dIrection, the accompanymg ordinance has been prepared and IS presented to the City Council for adoption DISCUSSion The proposed ordmance reqUires the Purchasing Agent of the City to provide a 1 % pnce preference to Santa MOnfca busmesses m both rts rnformal purchasmg and formal blddmg procedures The Purchasing Agent IS reqUired to award the contract to a City business If, after the 1 % preference IS applied, the busmess has submitted a bid which IS equal to or IS lower than all other bids and so long as It IS otherwise the most responsible and best bIdder 1 ~ ~ 1999 SudgetlFlnanclallmpact There may be a cost savings to the City as a result of Implementmg the bId preference It IS not possible to quantify the amount of savmgs at this time Recommendation Staff recommends that the accompanYing ordmance be Introduced for first readmg PREPARED BY Marsha Jones Moutne, City Attorney Claudia Thompson, Legal Administrative Staff Assistant 2 CA f \atty\munl\laws~l\bJdpref2 City Council Meeting 8-10-99 Santa Monica, California ORDINANCE NUMBER (ees) (City Council Senes) 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 THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS SECT/ON 1 Sectron 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 $1,00000 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-quotatlon procedures shall be followed 1 (b) Open Market Orders. (1) Except as provided In Sections 2 24 071, 224073, 224080 or 224090, public works proJects, all purchases of supplies, matenals 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 $25.00000 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 offerrng 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 bulletm 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, uiiti: 06jJt6iiib6i 2, 1927, pnor to awarding a contract the Purchasing Agent shall provide a 1 % price preference to all 2 City businesses submittmg Open Market order bids upon which will be levied a State of California sales tax The Purchasmg 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 selectlon process If, after the 1 % preference IS applied, a City busmess 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 othelWlse 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 wlthm 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 othelWlse 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 3 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 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-advertlse m Its discretion (b) After reJectmg 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 supphes, 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 4 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 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) Notwlthstandmganyotherprovlslonsofthls Sechor., i.iiiti: S6pt6iiib&i 2, ~ 887, pnor to awardmg a contract the Purchasmg Agent shall award a 1 % pnce preference when determmlng the lowest and best bid to all City businesses submlttmg formal bids upon which will be levied a State of California sales tax The Pu rchasmg Agent shall ad minister the bidding preference so that bid amounts received from City busmesses are reduced by 1 % solely to determme 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 Purchasmg 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 busmess licensed by the City of Santa Monica to conduct busmess m the City and which shall have a 5 place of busmess within the CIty other than a post office mailing box SECTION 3 Any provIsion of the Santa Monica Municipal Code or appendices thereto Inconsistent with the provIsions of thiS Ordmance, 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 ordmance 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 remamlng portions of thiS ordmance 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 Ordmance would be subsequently declared Invalid or unconstitutIonal. 6 SECTION 5 The Mayor shall sign and the City Clerk shall certify to the passage of this Ordinance The City Clerk shall cause the same to be published once In the official newspaper wlthm 15 days after Its adoption This Ordinance shall become effective 30 days from Its adoption APPROVED ~ TO .lfRM , . r~~~~ 'MARSHA JQNES MOUTRIE City Attorney 7