SR-205-001-01 (3)
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CA:RMM:r
Clty Council Meetlng 8-9-83
:z-~:;r-- CJO/- 0/ AU6 9 1983
Santa Mon1ca, Cal1fornia
STAFF REPORT
TO:
Mayor and City council
FROM:
Clty Attorney
SUBJECT:
Ordlnance Amendlng Mun~clpal Code Sectlons 2506A,
2507, 2508, and 2509 Re1atlng to Compet1tlve
Blddlng
At 1tS meeting on ~ay 24, 1983, the City Councl1
dlrected the Clty Attorney to prepare an ordlnance lncreaslng
the dollar amounts for 1nformal and formal blddlng. In
response to thlS d1rect1on, the accompanY1ng ordlnance has
been prepared and 1S presented for C1ty Councll conslderat1on.
The ord1nance makes a number of changes to the
purchaslng provlsions of the Munlcipal Code.
Munic1pal Code
Sectlon 2507(1)(a) is amended to change the dollar amount for
convenlence purchase orders froM $250 to $500. Mun1cipal Code
Sect10n 2507 (2) 1S aMended to change the dollar amounts for
open market purchases from $5,000 to $15,000.
Municipal Code
Sect10n 2508 lS amended to change the dollar amounts for
formal biddlng from $ 5,000 to $15,000.
Flnally, Municipal
Code Sectlon 2509, relatlng to Emergency Purchases, changes
the reference to the $5,000 formal b2dding amount to $15,000.
In addltlon, the proposed ordlnance contalns a change to
Munic1pal Code Sectlon 2506A relatlng to exceptions to
competltlve bidd1ng.
The change adds a new exception
for
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AUG 9 1983
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circulatlng library materlals, lnc1uding books, perlodica1s,
films, and recordlngs. These materlals are now and have
always been purchased by the acqulsltions staff of the
~ibrary. Many of the mater1als are sole source. Many of the
materlals are purchased pre-publlcatlon ln order that
materlals wll1 be aval1ab1e for clrculation as demand for them
develops. The pre-publicat1on purchases are subject to
publisher prlce changes and other unusual c1rcumstances in the
procurement process. Accord1ngly, because of the dynamlcs of
Ilbrary acqulSl.t~ons, it has been impossible to develop
cornpetltive b1dding procedures. The addit10n of subdivls10n
(5) to Mun1clpal Code Sectl.on 2506A forner1y codl.fies the fact
that 11.brary mater1als may not be procured in a feaslble
nanner through competltive bldding procedures.
RECOMMENDATION
It 15 respectfully recomended that the ac companying
ordlnance be lntroduced for first reading.
PREPARED BY:
Robert M. Myers, Clty Attorney
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CA:RMM:r
C1ty Oouncll Meet1ng 8-9-83
Santa Mon1ca, California
ORDINANCE NUMBER
(City Counc~l Serles)
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA
M1ENDING MUNICIPAL CODE SECTIONS
2506A, 2507. 2508 AND 2509
RELATING TO COMPETITIVE BIDDING
SECTION 1.
MunlClpa1 Code Sectlons 2506A, 2507, 2508,
and 2509 are amended to read as follows:
Sectlon 2506A.
Exceptions to
Competltlve Blddlng.
The compet1tive bid
procedure 15 not appl1cable to those
lnstances where:
(1) Competltlon
does not eXlst,
such as we~bership In professlonal
organizatlons, meetings, conventions,
travel, legal advertising, publlC
ut1lit1es, and proprietary ltems of
orlglna1 equlpment manufacturers and/or
thelr authorlzed excluslve distributors.
(2) Co~petlt1ve bld procedures have
already been utl11zed, such as ln
purchas1ng from federal, state or county
agencies and these materlals and services
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are supplied to the Cl ty at the same or
better prlce.
(3) ltems to be purchased are for
resale to the pub11C, such as but not
lim1ted to the C1V1C audltor1um snack bar
or ceMetery plot Mark1ng products.
(4) Contracts are for profess~onal
SerVlces.
(5) Clrculating library materials,
lnclud1ng books, perJ.od1ca1s, f1lms, and
recordings.
Sectl0n 2507.
Procedures.
(1) Convenlence Purchase Orders.
Informal Purchasing
related
(a) Indlv1dual
to the City's
purchase
maintenance
requ1rements, amount1ng to less than
$500.00 aggregate a~ount per purchase
order are exempted front competi tl ve bid
requlrements.
(b) In the event that the
savlngs potentlal clearly does not Justify
th1S exemptlon, open market request-for-
quotatlon procedures shall be followed.
(2) Open Market Orders. Except as
prov1ded ln Sectlons 2506A or 2507(1), all
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purchases of supp11es, mater1a1s equip~ent
or contractual services, and all sales of
personal property of the C1 ty whI.ch has
been obsolete or unusable, or for any
other reason 1S to be dlsposed of not more
than $15,000.00 in amount, shall be made
in the open market, WI. thout the reqUI.re-
ment of forMal newspaper advertisI.ng.
All open market purchases, wherever
possI.ble, shall be based upon not less
than three competI.tI.ve b1ds and shall be
awarded to the person offerlng the lowest
and best bid. The Purchasl.ng Agent shall
SOllCl.t bids by direct mail request to
perspectlve vendors, or by telehpone, and
by pub11C not1ce on the bulletln board I.n
the Purchasing DepartMent. The PurchasI.ng
Ag ent sha 11 keep a record of all ope n
market orders and the blds subrrli t ted 1n
competlt1on thereon, and such records
shall also be open to publlC inspect1on.
Section 2508.
Formal Bidd1.ng
Procedures. All purchases of suppl1es,
Mater1al, equipment or contractual
serVlces, except professlonal serVI.ces,
and all sales or personal property of the
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City wh~ch has become obsolete or
unusable, or for any other reason is to be
dlsposed of, of more than $15,000.00 in
a~ount, shall be made after publ~catlon 1n
the officlal newspaper, by two or more
lnsertions, of notices invit.ing bids
therefor, the f~rst of WhlCh shall be at
least ten days before the tlme for openlng
sald blds. At the tlme specifled in the
notlce lnvlting blds, such blds, shall be
opened and declared publicly. The
Purchasing Agent shall tabulate all bld s
received pursuant to thlS section and
shall refer them to the City Manager for
presentatlon to the City Council, WhlCh
shall make the awards. The City council
May reject any and all bids presented and
may re-advertlse in 1tS dlscretion.
After re]ectlng blds, or if no bids
are recelved, the Clty Council may declare
and determine that, in ltS opinion, the
supplies,
contractual
mater~als, equlpment or
serVlces ~ay be purchased
under more favorable circumstances 10 the
open market, and after the adoption of a
reso1utlon to thls effect by at least flve
afflrmatlve votes, 1t may proceed to have
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such supplles, materlals, equlpment or
contractual serVlces purchases ln the
manner stated, wlthout further observance
of the provislons of thlS section.
Such purchases may be made without
advertlSl.ng for bids If the
such supplies, materlals,
contractual serVlces shall
purchase
equl.pment
be deemed
of
or
by
the Clty Councll to be of urgent necessity
for the preservation of 11 fe, heal th or
property and shall be authorized by at
least five aff1rmative votes, or it shall
be determined by such vote of the Cl ty
Councl1 that to advertl.se for bids would
be to no avail and would cause unnecessary
expense and delay.
Sect10n 2509. Emergency Purchases.
In case an emergency shall arl.se WhlCh is
so urgent as to prec 1 ude act lon by the
Clty Councl.l and wh1ch requires any
purchase of supplies, Materials, equ1pment
or contractual serVlces, the Clty Manager
may authorize the Purchaslng Agent to
secure in the open market at the lowest
reasonable prlce, any such supp11es,
mater1a1s, equipment or contractual
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serVl.ces even though the amount thereo f
shall exceed the sum of $15,000.00. In
each such lnstance, the Clty Manager shall
submit to the Clty Councll in writlng, a
full exp1anatl.on of the circumstances of
such emergency WhlCh shall become a part
of the next ensuing meetlng of the Ci ty
Council and shall be open to public
inspection.
SECTION 2. Any provlslon of the Santa Monlca Munlclpal
Code or appendlces thereto l.nCOnSlstent with the provisl.ons of
thlS ordlnance, to the extent of such lnconslstencies and no
further, are hereby repealed or modifled to that extent
necessary to affect the prOVl.S10nS of thl.s ordinance.
SECTION 3.
If any sectlon, subsection, sentence,
clause, or phrase of thlS ordlnance lS for any reason held to
be invalld or unconstltutlonal by a deciSlon of any court of
any competent jurlsdlctlon, such deC1Slon shall not affect the
vall.d1ty of the remalnlng port1ons of the ordlnance. The C1ty
Council hereby declares that It would have passed this
ord1nance and each and every section, subsection, sentence,
clause or phrase not dec lared lnval id or unconsti tutional
wlthout regard to whether any portlon of the ordlnance would
be subsequently declared 1nvalid or unconstitutlona1.
shall
Clerk
SECTION 4. The Mayor shall slgn and the
attest to the passage of th1S ord1nance.
shall cause the same to be publ i she d onc e
C1ty Clerk
Th1s City
In
the
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off1Clal newspaper within 15 days after its adoption. The
ordinance shall become effectlve after 30 days from its
adopt 10 n .
APPROVED AS TO FORM:
1...:... .& L.. ~
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Robert M. Myers ~~
C1 ty Attorney
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