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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
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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
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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
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(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
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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
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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
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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
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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.
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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
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