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O2523City Council Meeting: July 12, 2016 ORDINANCE NUMBER' (City Council Series) Santa Monica, California (CCS) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SECTION 2.24.105 OF THE SANTA MONICA MUNICIPAL CODE RELATED TO PROTEST PROCEDURES FOR CITY PURCHASES AND PUBLIC WORKS PROJECTS WHEREAS, Section 608 of the Charter of the City of Santa Monica (the "City Charter") provides that the City of Santa Monica (the "City") shall, by ordinance, adopt procedures and requirements for the purchase of supplies and equipment, for the provision of professional services, and for the award of bids for public works projects; and WHEREAS, Section 608 of the City Charter further provides that such ordinance should preserve public confidence in the integrity and openness of the City's contracting process, protect public funds, and insure that the City obtains materials or service of appropriate quality; and WHEREAS, Section 1507 of the City Charter provides that the City shall have a centralized purchasing system for all City departments and agencies, under the control of the City Manager, who shall recommend to the City Council to consider and adopt by ordinance, rules and regulations governing the contracting for purchasing, storing and distribution of all supplies, materials and equipment required by an office, department or agency of the City; and 1 WHEREAS, Section 1507 of the City Charter further establishes certain non- exclusive powers and requirements of the Purchasing Agent; and WHEREAS, Section 1508 of the City Charter provides that before making any purchase of, or contract for, supplies, materials or equipment, the Purchasing Agent shall give ample opportunity for competitive bidding, under such rules and regulations and with such exceptions as the City Council may prescribe by ordinance; and WHEREAS, on November 3, 1993, City voters approved Proposition S, amending Section 608 of the City Charter and increasing the dollar limit threshold for professional services contracts approved by the City Manager to $50,000, subject to future Consumer Price Index ("CPI") adjustments; and WHEREAS, in accordance with the provisions of Sections 608, 1507 and 1508 of the City Charter, the City Council of the City of Santa Monica (the "City Council") has, by ordinance, established a purchasing system as set forth in Chapter 2.24 of the Santa Monica Municipal Code ("Chapter 2.24"); and WHEREAS, on November 26, 2013, the City Council adopted Ordinance Number 2447 (CCS) ("Ordinance 2447") amending portions of Chapter 2.24 in order to: increase the threshold dollar limits for convenience purchase orders, formal bidding procedures, and professional services contracts approved by the City Manager; establish standard bidding procedures for professional services contracts; delegate certain authority to the purchasing agent; and establish a standard protest procedure for certain purchases; and WHEREAS, the City's standard protest procedure for public works contracts, as set forth in Notices Inviting Bids for public works projects, was not included in the protest procedure established by Ordinance 2447; and 2 WHEREAS, the City desires to further strengthen its purchasing system by enhancing efficiency and cost-effectiveness; and WHEREAS, such increased efficiency and cost-effectiveness can be achieved by reducing the amount of time and administrative expense necessary to obtain goods and services; and WHEREAS, such increased efficiency and cost-effectiveness would also result in improved productivity, quality, reduced costs and increased customer service; and WHEREAS, the City further desires to enhance transparency and fairness in, and preserve public confidence in the integrity and openness of the City's contracting process; and WHEREAS, to achieve these goals, the City desires to amend Section 2.24.105 to simplify the protest procedure established by Ordinance 2447, and to simplify and codify the protest procedure for public works contracts. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Section 2.24.105 of the Santa Monica Municipal Code is hereby amended to read as follows: Section 2.24.105 Protest procedures. (a) Protest procedure for purchases other than public works contracts. (1) Any bidder or proposer submitting a bid or proposal for any purchase subject to the competitive bidding requirements of this Chapter that is not a public works project may file a written protest with the Finance Director no more than seven calendar days following the posting of award recommendation on the City's online vendor portal 3 website. The protest must include the name, address and telephone number of the protestor and/or the person representing the protesting party. The written protest must set forth, in detail, all grounds for the protest, including, without limitation, all facts, supporting documentation, legal authorities and arguments in support of the grounds for the protest. All factual contentions must be supported by evidence. Any matters not set forth in the written protest shall be deemed waived. Any protest not conforming to the requirements of this Section may be rejected as invalid. (2) The Finance Director shall review the merits and timeliness of the protest and issue a written decision to the protestant within ten calendar days of receipt of the protest. (3) The Finance Director shall have final authority to sustain or deny a protest. The Finance Director's decision shall constitute the City's final determination on the protest. (4) Once a protest has been filed with the Finance Director, no contract shall be awarded until the Finance Director has issued his or her final determination. (5) For bids or proposals awarded by the City Council, the Director of Finance shall, at the time the bids and/or proposals are presented to the City Council for award, submit to the City Council a written report on the protest, including the Finance Director's final decision on the protest. (b) Protest procedure for public works contracts. (1) Any bidder submitting a bid for a public works project subject to the competitive bidding requirements of this Chapter may file a written protest with the Director of Public Works no more than seven calendar days following the posting of award 4 recommendation on the City's online vendor portal website. The protest must include the name, address and telephone number of the protestor and/or the person representing the protesting party. The written protest must set forth, in detail, all grounds for the protest, including, without limitation, all facts, supporting documentation, legal authorities and arguments in support of the grounds for the protest. All factual contentions must be supported by evidence. Any matters not set forth in the written protest shall be deemed waived. Any protest not conforming to the requirements of this Section may be rejected as invalid. (2) The Public Works Director shall review the merits and timeliness of the protest and issue a written decision to the protestant within ten calendar days of receipt of the protest. (3) The Director of Public Works shall have final authority to sustain or deny a protest. The Director of Public Works' decision shall constitute the City's final determination on the protest. (4) Once a protest has been filed with the Director of Public Works, no contract shall be awarded until the Director of Public Works has issued his or her final determination. (5) For public works contracts awarded by the City Council, the Director of Public Works shall, at the time the bids are presented to the City Council for award, submit to the City Council a written report on the protest, including the Director of Public Works' final decision on the protest. SECTION 2. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such 0 inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. SECTION 3. 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 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, sentence, 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 4. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall become effective 30 days from its adoption. APPROVED AS TO FORM: HA JONES MOU7"RIE C 0 Approved and adopted this 12th day of July, 2016. AA I., /Ir v- -w - TonJ y azquez n , ay State of California ) County of Los Angeles ) ss. City of Santa Monica ) I, Denise Anderson -Warren, City Clerk of the City of Santa Monica, do hereby certify that the foregoing Ordinance No. 2523 (CCS) had its introduction on Rae- 7-?, 2016, and was adopted at the Santa Monica City Council meeting held on jz I, Q, 2016, by the following vote: AYES: Councilmembers O'Connor, O'Day, Himmelrich, Davis, Mayor Vazquez NOES: None ABSENT: Councilmember McKeown, Mayor Pro Tem Winterer A summary of Ordinance No. 2523 (CCS) was duly published pursuant to California Government Code Section 40806. ATTEST: Denise Anderson -Warren, City Clerk Date