SR 09-13-2011 13B13-B
September 13, 2011
CITY CLERK'S OFFICE -MEMORANDUM
To: City Council
From: Councilmember McKeown
Date: September 13, 2011
13-8: Request of Councilmember McKeown that the Council authorize staff to
prepare an ordinance increasing the City's existing local company
preference on competitive City bids (SMMC 2.24.090(c) and 2.24.100(d)) to
one and one half percent, reflecting the "buy local" benefits of 2010's
Measure Y as passed by Santa Monica voters.
13-B
September 13, 2011
1
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Item 8-B
City Council Meeting 8-10-99
Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
9/3/11 3:53 PM
SUBJECT: An Ordinance Amending Sections 2.24.090(2) and 2.24.100 of the Municipal Code to
Provide a 1 % Bidding Preference for Santa Monica Businesses
Introduction
The City Council recently directed staff to prepare an ordinance reinstating the bid preference for
Santa Monica businesses. In response to that direction, the accompanying ordinance has been
prepared and is presented to the City Council for adoption.
Discussion
The proposed ordinance requires the Purchasing Agent of the City to provide a 1 % price
preference to Santa Monica businesses in both its informal purchasing and formal bidding
procedures. The Purchasing Agent is required to award the contract to a City business if, after the
1 % preference is applied, the business 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.
Budget/Financial Impact
There may be a cost savings to the City as a result of implementing the bid preference. It is not
possible to quantify the amount of savings at this time.
Recommendation
Staff recommends that the accompanying ordinance be introduced for first reading.
PREPARED BY:
Marsha Jones Moutrie, City Attorney
Claudia Thompson, Legal Administrative Staff Assistant
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City Council Meeting 8-10-99 Santa Monica, California
ORDINANCE NUMBER (CCS)
(City Council Series)
9/3111 3:53 PM
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:
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 advertising.
(2) All open market purchases, wherever possible, shall be based upon not less than three
competitive bids arid 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
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competition thereon, and such records shall also be open to public inspection.
9/3/11 3:53 PM
(c) (1) Notwithstanding any other provisions of this Section, ,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 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
business so long as it is otherwise the most responsible and best bidder.
(2) For purposes of this provision a City business shah 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 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
operied 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 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, ,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
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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 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 Sahta
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 provision 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 unconstitutional 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.
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 riewspaper within 15 days
after its adoption. This Ordinance shall become effective 30 days from its adoption.
APPROVED AS TO FORM:
MARSHA JONES MOUTRIE
City Attorney
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