O25881
City Council Meeting: October 9, 2018 Santa Monica, California
ORDINANCE NUMBER 2588 (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA MODIFYING SECTION 2.24.071 OF THE SANTA MONICA
MUNICIPAL CODE TO AUTHORIZE AS-NEEDED SERVICES AGREEMENTS FOR
PUBLIC WORKS PROJECTS
WHEREAS, existing local law requires that every contract involving an expenditure
of more than $175,000 for public works projects be competitively bid and presented to the
City Council of the City of Santa Monica (“City”) for approval of the contract award prior
to project commencement; and
WHEREAS, this bid award process takes twenty to twenty-seven weeks
depending on the complexity of the project ; and
WHEREAS, in addition to extending the project completion timeline, this lengthy
procurement process burdens staffing resources; and
WHEREAS, amending local procurement laws to authorize an alternate
contracting method to allow the City to select prequalified contractors to be awarded as-
needed services agreements will expedite project commencement, streamline the hiring
process, protect against escalation costs and reduce staff time spent on procurement.
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Santa Monica Municipal Code Chapter 2.24.071 is hereby amended,
as follows:
2.24.071 Public works contracts.
(a) Every contract involving an expenditure of more than one hundred seventy-five
thousand dollars for public works projects including, but not limited to, the construction of
public buildings, streets, drains, sewers, utilities and parks shall be let to the best bidder
after publication of a notice inviting bids therefor. The publication shall be in a newspaper
of general circulation in the City of Santa Monica, by two or more insertions, the first of
which shall be published at least ten days before the time for opening bids. All notices
inviting bids issued under this subsection (a) shall also be posted on the City’s online vendor
portal website.
(b) Public works contracts of one hundred seventy-five thousand dollars or less
may be let to contract by informal purchasing procedures as set forth in
Section 2.24.090(b).
(c) For public works projects estimated to exceed one million dollars in cost or for
public works projects with unique or complex characteristics, the City Manager may
authorize a phased selection process for determining the best bidder if the characteristics
of the project, including, but not limited to, its size, complexity, uniqueness or potential
impact on the City, are such that a phased process would best effectuate the public interest.
The phased selection process shall solicit, review and evaluate the qualifications of
prospective bidders in accordance with the criteria set forth in Santa Monica Municipal
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Code Section 2.24.072, with project specifications and with such administrative
instructions, rules and regulations as may be issued by the City Manager. The best bidder
shall be competitively selected from those prospective bidders who have been determined
as qualified to responsibly complete the project in accordance with applicable City criteria.
The City Manager is authorized to issue administrative instructions, rules and regulations
as necessary for the purpose of satisfying the requirements of this subsection.
(d) The City Council may reject any and all bids received whenever in the opinion
of the City Council:
(1) The bid or bids do not comply with the bid notice and specifications;
(2) The proposed project or purchase should be abandoned or delayed;
(3) The materials or services may be purchased more reasonably on the
open market or the work done less expensively by City personnel;
(4) The bids are higher than anticipated and a new call for bids would result
in savings to the City;
(5) The best interests of the City would be served by a rejection of any or all
bids.
(e) By two-thirds affirmative vote of its membership, the City Council may forego
the bidding procedures otherwise required by this Section if the City Council finds that:
(1) The goods or services can be purchased more economically on the open
market;
(2) There exists no competitive market for the provision of the goods or
services necessary to construct the public works project; or
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(3) Due to urgent necessity, the public health, welfare or safety would be
jeopardized if the bidding procedures of this Section were followed.
(f) During any period of declared state of local emergency, the City Manager, the
Emergency Services Manager, or the Purchasing Agent is authorized to implement such
practices, policies and procedures for the construction, maintenance, or repair of public
works projects as are necessary to protect the public health, welfare or safety without
otherwise complying with this Section, if the City Manager or the Emergency Services
Manager finds that complying with this Section would cause unnecessary expense or delay.
The City Manager shall report all such findings at a regular meeting of the City Council no
later than thirty days after the finding is made.
(g) Notwithstanding any other provision in this Chapter, the City may, in its
discretion and when deemed to be in the best interest of the City, obtain construction,
maintenance, or repair services pursuant to as-needed services agreements in
accordance with the following terms and procedures:
(1) The City shall solicit, review and evaluate the qualifications of
prospective contractors for as-needed services agreements in accordance with
rules and regulations established by the Director;
(2) The Director shall pre-qualify contractors for as-needed service
agreements;
(3) The Council may award as-needed services agreements to
prequalified contractors, in amounts not to exceed $5,000,000 and with terms of
no more than five (5) years;
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(4)The Director shall be authorized to issue task orders with specific
scopes of work to prequalified contractors pursuant to as-needed services
agreements;
(5)When the need arises for the performance of specific tasks that are
within the scope of as-needed service agreements, the Director shall seek bids
from at least three (3) prequalified contractors and, using the evaluation criteria set
forth under Section 2.24.072, issue a task order to the best bidder in an amount
not to exceed $1,000,000 for a specifi cally defined scope of work;
(6)In the event that the Director is unable to obtain three (3) bids, the
Director may issue a task order to the best bidder of the bids submitted;
(7)The Director may reject any and all bids received in accordance with
the standards set forth in subsection (d);
(8)Prequalified contractors performing task orders under as-needed
services agreements shall file payment and performance bonds in conjunction with
each task order awarded as required by the Director or applicable law; and
(9)The Director shall submit a report to the City Council on an annual
basis which shall contain information concerning the implementation of this
subsection, including a listing of task orders issued pursuant to this subsection.
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
inconsistencies and no further, is hereby repealed or modified to that extent necessary to
affect the provisions of this Ordinance.
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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 validit y 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 fifteen (15) days after its adoption. This Ordinance shall become
effective thirty (30) days from its adoption.
APPROVED AS TO FORM:
_________________________
LANE DILG
City Attorney
Approved and adopted this 9th day of October, 2018.
_____________________________
T e d W i n t e r e r , M a y o r
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. 2588 (CCS) had its introduction
on September 11, 2018, and was adopted at the Santa Monica City Council
meeting held on October 9, 2018, by the following vote:
AYES: Councilmembers McKeown, Himmelrich, O’Connor,
Mayor Pro Tem Davis, Mayor Winterer
NOES: None
ABSENT: Councilmembers O’Day, Vazquez
ATTEST:
_____________________________________ _________________
Denise Anderson-Warren, City Clerk Date
A summary of Ordinance No. 2588 (CCS) was duly published pursuant to
California Government Code Section 40806.
Ted Winterer (Nov 1, 2018)
Ted Winterer
Nov 1, 2018