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SR-100-002 (8) EPWM:CC:AA:DP: F:\DATA\SPFILES\SP-MISC\cc Reports\ccSB974v3.doc City Council Meeting: July 10, 2001 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Resolution In Opposition To Senate Bill 974 Introduction On February 23, 2001, Senator Tom Torlakson introduced Senate Bill 974 (SB 974) which would apply the Public Contract Code to charter cities, such as Santa Monica, unless specific ordinances are adopted that directly conflict with the code. This bill would limit the flexibility that Santa Monica enjoys as a charter city to enact those regulation, policies and procedures deemed necessary to best meet the unique needs of the community. This report recommends adopting the attached resolution in opposition of the measure. Discussion The City of Santa Monica has various regulations and policies in place that affect how contracts are awarded and administered within the City that have been adopted to address various community concerns. Currently, the state constitution “home rule” doctrine allows city charters to take precedence over state statute in areas of local concern. SB 974 would require the City to follow the Public Contract Code “…in the absences of a specific exemption or a direct conflict with a city charter.” In addition to limiting the local control Santa Monica currently enjoys over the administrating of public 1 contracts, this bill would require the allocation of resources to analyze each section of the Public Contract Code, City Charter and Municipal Code in order to enact the specific exemptions or ordinances necessary to preserve the best interest of the community that the current system provides. In addition, the League of California Cities analyst has determined that passage of this bill would cause numerous unnecessary lawsuits and legal disputes over whether or not the City’s ordinances conflict with the Public Contracts Code. This could potentially add to the expense incurred by the City if this bill is passed. Budget/Financial Impact Adoption of this resolution does not have any direct budget or financial impacts, however, should this legislation be adopted by the state, future City costs are likely to increase by an unknown amount. Recommendations Staff recommends that the Council adopt the attached resolution in opposition of Senate Bill 974. Prepared by: Craig Perkins, Director of Environmental and Public Works Management Anthony Antich, P.E., City Engineer Donald Patterson, Administrative Analyst Attachments: Resolution 2 EPWM:CC:AA:DP: F:\DATA\SPFILES\SP-MISC\cc Reports\ccProp35.doc City Council Meeting: July 10, 2001 Santa Monica, California RESOLUTION NUMBER (CCS) CITY COUNCIL SERIES A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA IN OPPOSITION TO SENATE BILL 974 - AMENDMENT TO THE PUBLIC CONTRACT CODE WHEREAS, the City of Santa Monica currently has the authority and duty to respond to local concerns and to provide rules that best meet the needs of the community; and WHEREAS, the constitutional “home rule” doctrine grants precedence to a city charter over a conflicting state statute in areas of local concern and thereby provides the flexibility for charter cities to exercise local control; and WHEREAS, Senate Bill 974 specifies that the Public Contract Code is the basis of contracts between most pubic entities and their contractors and subcontractors and that this code applies to charter cities in the absence of a specific exemption or ordinance that is in direct conflict with the relevant provision of the code; and WHEREAS, Senate Bill 974 would cause city ordinances now in place to be rewritten by state law, causing unnecessary confusion over which law applies; and 3 WHEREAS, the current system allows the City of Santa Monica the flexibility to adopt ordinances, regulations, policies and procedures which address the specific concerns of the community, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. The City of Santa of Santa Monica opposes Senate Bill 974, which will limit the flexibility to respond to community concerns and provide rules which best meet the needs of the City. SECTION 2. The City Clerk shall certify to the adoption of the resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: __________________________ MARSHA JONES MOUTRIE City Attorney 4