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O26081 City Council Meeting: April 23, 2019 Santa Monica, California ORDINANCE NUMBER 2608 (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING CHAPTER 2.24 OF THE SANTA MONICA MUNICIPAL CODE TO INCREASE THE THRESHOLD DOLLAR LIMITS FOR CITY MANAGER AUTHORITY TO AWARD SOLICITATIONS OF PUBLIC WORKS PROJECTS, GOODS AND SERVICES AND DISPOSITION OF PROPERTY; REFLECT CURRENT AND PROPOSED PROCUREMENT PRACTICES; AND UPDATE THE CODE TO ADD CLARITY RELATED TO THE CITY’S PROCUREMENT POLICIES, PRACTICES AND PROCEDURES 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 DocuSign Envelope ID: 05D7288A-AD53-492A-B7A8-CCDEDD044472 2 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, on July 12, 2016, the City Council adopted Ordinance Number 2523 (CCS) to simplify the protest procedure established by Ordinance 2447 and to simplify and codify the protest procedure for public works contracts; and DocuSign Envelope ID: 05D7288A-AD53-492A-B7A8-CCDEDD044472 3 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, the City wishes to make additional changes, including the deletion of obsolete sections of Chapter 2.24, to reflect current and proposed procurement practices and to make the purchasing policies, requirements and practices set forth in this Chapter easier to read and understand. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Chapter 2.24 of the Santa Monica Municipal Code is hereby amended as follows: 2.24.010 Purpose. The purpose of this chapter is to establish procedures, consistent with Sections 608 and 1508 of the City Charter, for the purchase of all goods and services, contracts for the construction of public works projects, and the disposition of property. DocuSign Envelope ID: 05D7288A-AD53-492A-B7A8-CCDEDD044472 4 2.24.020 Purchasing Agent. (a) Appointment. The Director of Finance shall appoint the Purchasing Agent. (b) Powers and Duties. The Purchasing Agent shall have the powers and duties set forth in Section 1507 of the City Charter. In addition, subject to the provisions of this Chapter, the Purchasing Agent shall have the power to: (1) Contract for all utility services; (2) Declare goods as surplus, obsolete or unused and authorize the transfer or disposal of such goods consistent with all applicable laws and regulations; (3) Cancel solicitations and re-solicit bids or proposals when cancellation is in the City’s best interest for reasons including, but not limited to, when the City determines that: (A) The City does not require the goods, services, or construction of the public works project; (B) The City does not require a third party to provide the goods, services, or construct the public works project; (C) Proposed amendments to the solicitation document make a new solicitation desirable or necessary; (D) Prices or costs exceed the City’s cost estimates; (E) No bids or proposals have been received in response to the solicitation; or (F) A procedural irregularity – including, but not limited to, failure to properly notice the solicitation or a material error in specifications – exists that could materially affect the outcome of the solicitation. DocuSign Envelope ID: 05D7288A-AD53-492A-B7A8-CCDEDD044472 5 2.24.030 Centralized Purchasing. All acquisitions and purchases shall be made by and through the Purchasing Agent, except: (a) Purchases of goods and services made from petty cash funds pursuant to written control procedures approved as administrative regulations by the City Manager; (b) Purchases of goods and services by city procurement card (“P-Card”) or other credit card, made in conformance with written control procedures approved as administrative regulations by the City Manager; (c) Emergency purchases made in conformance with Section 2.24.240; (d) Contracts for legal services approved by the City Attorney; (e) Purchases that are exempt from competitive solicitation procedures pursuant to this Chapter; and (f) Mutual aid agreements. 2.24.040 Council Contract Policies. The City Council may adopt by resolution policies related to the purchase of goods and services, contracts for the construction of public works projects, or the disposition of property. Such policies may include, but not be limited to, policies addressing local boycotts, use of sustainable goods and price preferences for local businesses. Such policies shall not conflict with, but may be in addition to, any provisions of this Chapter. Such policies shall be considered implemented in the solicitation and award of contracts made under this Chapter. DocuSign Envelope ID: 05D7288A-AD53-492A-B7A8-CCDEDD044472 6 2.24.050 Administrative Regulations. The City Manager, or the Director of Finance as designated by the City Manager, is authorized to adopt written administrative regulations and instructions that are consistent with and that further the terms and requirements set forth within this Chapter. 2.24.060 City Council Awards. The City Council shall award: (a) Purchases of goods of more than two hundred fifty thousand dollars; (b) Contractual services agreements of more than two hundred fifty thousand dollars; (c) Professional services agreements of more than ninety-five thousand dollars; (d) Public works contracts of more than two hundred fifty thousand dollars; and (e) Any other purchases and contracts that have not been otherwise authorized under this Chapter, unless the City Council has authorized a City officer or employee to negotiate a contract on behalf of the City without further Council approval. 2.24.070 City Manager Authority. (a) The City Manager, or his or her designee pursuant to paragraph (b) below, is authorized to make purchases and award the following: (1) Purchases of goods of two hundred fifty thousand dollars or less; (2) Contractual services agreements of two hundred fifty thousand dollars or less; (3) Professional services agreements of ninety-five thousand dollars or less; DocuSign Envelope ID: 05D7288A-AD53-492A-B7A8-CCDEDD044472 7 (4) Public works contracts of two hundred fifty thousand dollars or less; (5) Emergency purchases in accordance with 2.24.240; and (6) Agreements to rent, lease or license real property valued at two hundred fifty thousand dollars or less or entered pursuant to express approval by the City Council. (b) The City Manager may delegate authority to make purchases and awards under this Section. All such delegations shall be in writing and dated and shall specify the limits of the authority delegated, including, without limitation, the type of purchase, dollar amount, and the terms of any contracts that will be executed under the delegat ion. All such delegations of authority shall be kept on file by the Purchasing Agent . 2.24.080 City Attorney Authority. The City Attorney is authorized to award and enter into contracts for legal services, including, but not limited to, services provided b y outside legal counsel, investigators, consultants or experts in conjunction with claims against the City, pending or anticipated litigation, or administrative or other legal proceedings. 2.24.090 Purchasing Agent Authority. The Purchasing Agent is authorized to: (a) Issue purchase orders awarded in accordance with this Chapter; (b) Sell goods valued at less than twenty-five thousand dollars that have been declared surplus, obsolete or unused by bid, auction, negotiated sale, trade -in or exchange in accordance with 2.24.160; (c) Donate goods valued at less than twenty-five thousand dollars that have been declared surplus, obsolete or unused in accordance with 2.24.170; and DocuSign Envelope ID: 05D7288A-AD53-492A-B7A8-CCDEDD044472 8 (d) Make emergency purchases in accordance with 2.24.240. 2.24.100 Emergency Services Manager Authority. The Emergency Services Manager is authorized to make emergency purchases in accordance with 2.24.240. 2.24.110 Director of Public Works Authority. The Director of Public Works is authorized to issue task orders for Master Services Agreements in accordance with 2.24.220(g). 2.24.120 Purchase of Goods. (a) Goods are physical items, including, but not limited to, materials, supplies and equipment. (b) Goods shall be solicited as follows, applying the criteria for best bidder as set forth in Section 2.24.180: (1) Purchases of twenty-five thousand dollars or less shall be exempt from competitive bidding requirements, unless the Purchasing Agent determines, on a case by case basis, that substantial cost savings could be achieved without jeopardizing necessary operational efficiency, in which case the purchase shall be subject to the informal solicitation procedures set forth in Section 2.24.210. (2) Purchases of more than twenty-five thousand dollars but not more than two hundred fifty thousand dollars shall be subject to the informal solicitation procedures set forth in Section 2.24.210. (3) Purchases of more than two hundred fifty thousand dollars shall be subject to the formal solicitation procedures set forth in Section 2.24.220. DocuSign Envelope ID: 05D7288A-AD53-492A-B7A8-CCDEDD044472 9 2.24.130 Contractual Services Agreements. (a) Contractual services are services for non-professional functions that are predominantly physical, manual or routine. Contractual services include, but are not limited to, custodial services, temporary agency services, and security services. (b) Contractual services agreements shall be solicited as follows , applying the criteria for best bidder as set forth in Section 2.24.180: (1) Contractual services agreements of twenty-five thousand dollars or less shall be exempt from competitive bidding requirements, unless the Purchasing Agent determines, on a case by case basis, that substantial cost savings could be achieved without jeopardizing necessary operational efficiency, in which case the agreement shall be subject to the informal solicitation procedures set forth in Section 2.24.210. (2) Contractual services agreements of more than twenty-five thousand dollars but not more than two hundred fifty thousand dollars shall be subject to the informal solicitation procedures set forth in Section 2.24.210. (3) Contractual services agreements of more than two hundred fifty thousand dollars shall be subject to the formal solicitation procedures set forth in Section 2.24.220. 2.24.140 Professional Services Agreements. (a) Professional services are services that require specialized expertise, training in a professional field, or other developed skills or training. Professional services include, but are not limited to, services performed by vendors with a State license or DocuSign Envelope ID: 05D7288A-AD53-492A-B7A8-CCDEDD044472 10 certification, including, but not limited to, accountants, doctors, lawyers, engineers, architects and land surveyors. (b) Professional services agreements shall be solicited as follows, applying the criteria for best qualified person or firm as set forth in Section 2.24.190: (1) Professional services agreements of twenty-five thousand dollars or less shall be exempt from competitive bidding requirements, unless the Purchasing Agent determines, on a case by case basis, that substantial cost savings could be achieved without jeopardizing necessary operational efficiency, in which case the agreement shall be subject to the informal solicitation procedures set forth in Section 2.24.210. (2) Professional services agreements of more than twenty-five thousand dollars but not more than ninety-five thousand dollars shall be subject to the informal solicitation procedures set forth in Section 2.24.210. (3) Professional services agreements of more than ninety-five thousand dollars shall be subject to the formal solicitation procedures set forth in Section 2.24.220. 2.24.150 Public Works Contracts. (a) A public works contract is a contract paid for in whole or in part with public funds for the construction, alteration, repair, improvement, reconstruction or demolition of any public building, facility, street, sidewalk, utility, park or open space improvement, or other public improvement. (b) Public works contracts shall be solicited as follows, applying the criteria for best bidder as set forth in Section 2.24.180: DocuSign Envelope ID: 05D7288A-AD53-492A-B7A8-CCDEDD044472 11 (1) Public works contracts of twenty-five thousand dollars or less shall be exempt from competitive bidding requirements, unless the Purchasing Age nt determines, on a case by case basis, that substantial cost savings could be achieved through the competitive bidding process without jeopardizing necessary operational efficiency, in which case the project shall be subject to the informal solicitation procedures set forth in Section 2.24.210. (2) Public works contracts of more than twenty-five thousand dollars but not more than two hundred fifty thousand dollars shall be subject to the informal solicitation procedures set forth in Section 2.24.210. (3) Public works contracts of more than two hundred fifty thousand dollars shall be subject to the formal solicitation procedures set forth in Section 2.24.220. (4) Master services agreements for public works projects may be solicited and implemented in accordance with the procedures set forth in Section 2.24.220(g). 2.24.160 Sale of Goods. Goods that have been declared surplus, obsolete or unused by the Purchasing Agent shall be sold to the best bidder, applying the criteria in Section 2.24.180, by bid, auction, negotiated sale, trade-in or exchange as follows: (a) The sale of goods valued at twenty-five thousand dollars or less shall be sold according to procedures established by the Purchasing Agent. (b) The sale of goods valued at two hundred fifty thousand dollars or less shall be subject to the informal solicitation procedures set forth in Section 2.24.210. DocuSign Envelope ID: 05D7288A-AD53-492A-B7A8-CCDEDD044472 12 (c) The sale of goods valued at more than two hundred fifty thousand dollars shall be subject to the formal solicitation procedures set forth in Section 2.24.220. 2.24.170 Donation of Goods. Goods that have been declared surplus, obsolete or unused by the Purchasing Agent may be donated as follows: (a) Goods valued at twenty-five thousand dollars or less may be donated in accordance with procedures established by the Purchasing Agent. (b) Goods valued at more than twenty-five thousand dollars may be donated to the best bidder applying the criteria set forth in Section 2.24.180 in accordance with the formal solicitation procedures set forth in Section 2.24.220. 2.24.180 Best Bidder. In determining the best bidder, the City shall consider all of the following criteria that are relevant to the solicitation: (a) Price; (b) The quality of the material or services offered; (c) The ability, capacity and skill of the bidder to perform or provide the materials or services; (d) The capacity of the bidder to perform the contract or provide the service promptly, within the time specified, and without delay or interference; (e) The sufficiency of the bidder’s financial resources; (f) The character, integrity, reputation, judgment, training, experience and efficiency of the bidder; DocuSign Envelope ID: 05D7288A-AD53-492A-B7A8-CCDEDD044472 13 (g) The ability of the bidder to provide such future maintenance or service as may be needed; (h) Any other factor that will further the intent set forth in Section 608 of the City Charter. The City shall have absolute discretion in determining the applicability and weight of the criteria listed above. The City is not required to select the bid with the lowest price. 2.24.190 Best Qualified Person or Firm. In determining the best qualified person or firm for award of a professional services agreement, the City shall consider all of the following criteria that are relevant to the solicitation: (a) The training, credentials and experience of the person or firm; (b) The demonstrated competence, ability, capacity and skill of the person or firm to perform the contract or provide the service promptly, within the time specified, and without delay; (c) The capacity of the person or firm to perform the contract or provide the service promptly, within the time specified, and without delay; (d) The sufficiency of the person’s or firm’s financial and other resources; and (e) The character, integrity, reputation and judgment of the person or firm; (f) The ability of the person or firm to provide such future service as may be needed; and (g) The price which the person or firm proposes to charge, including whether the price is fair, reasonable and competitive. DocuSign Envelope ID: 05D7288A-AD53-492A-B7A8-CCDEDD044472 14 The City shall have absolute discretion in determining the applicabi lity and weight of the criteria listed above. The City is not required to select the proposal with the lowest price. 2.24.200 Price Preference for Local Businesses. In determining the best bidder for solicitations of goods and contractual services subject to the informal and formal procedures set forth in this Chapter, the Purchasing Agent shall provide a price preference for local businesses as follows: (a) The Purchasing Agent shall provide a two percent price preference to all City businesses submitting bids or proposals 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 two percent to determine the rank order of the bids in the selection process. If, after the two percent preference is applied, a City business has submitted a bid which is equal to or lower than all other proposals, the City Council shall award the contract to the City business so long as it is otherwise the best bidder or best qualified person or firm. (b) For purposes of this provision, a City business shall have its primary physical place of business within the City and be licensed by the City of Santa Monica to conduct business in the City. 2.24.210 Informal procedures. Informal solicitations shall be subject to the following procedures: (a) The Purchasing Agent shall issue a notice inviting bids or request for proposals and solicit not less than three bids or proposals by direct mail or electronic mail request, or by telephone. The Purchasing Agent may require additional notice as the DocuSign Envelope ID: 05D7288A-AD53-492A-B7A8-CCDEDD044472 15 Purchasing Agent deems appropriate, including, for example, requiring that the solicitation be posted on the City’s online vendor portal website. (b) The Purchasing Agent shall compile and tabulate all bids or proposals timely received and refer them to the appropriate City Department for evaluation. For public works contracts or purchases of goods or contractual services, t he City Department shall make a recommendation of best bidder by applying the criteria set forth in Section 2.24.180. For purchases of professional services, the City Department shall make a recommendation of best qualified person or firm by applying the criteria set forth in Section 2.24.190. (c) The Purchasing Agent shall provide notice of the recommended award to all bidders or proposers through the City’s online vendor portal website or by other means as determined by the Purchasing Agent. (d) The City Manager shall award the solicitation after the time to file a protest has expired or after a final determination on a protest has been made in accordance with 2.24.260. (e) The City Manager may reject any and all bids or proposals received whenever, in the opinion of the City Manager: (1) The bid(s) or proposal(s) received do not comply with the specifications of the notice inviting bids or request for proposals; (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; DocuSign Envelope ID: 05D7288A-AD53-492A-B7A8-CCDEDD044472 16 (4) The bids or proposals are higher than anticipated and a new solicitation would result in savings to the City; or (5) The best interests of the City would be served by a rejection of any or all bids or proposals. 2.24.220 Formal Procedures. Formal solicitations shall be subject to the following procedures: (a) The Purchasing Agent shall issue a formal notice inviting bids or request for proposals and shall solicit bids and proposals by: (1) Advertising in a newspaper of general circulation in the City of Santa Monica on at least two occasions, the first of which shall be at least ten days before the time for opening received bids; and (2) Posting on the City’s online vendor portal website. The Purchasing Agent may require additional notice as the Purchasing Agent determines to be in the best interest of the City. (b) At the time specified in the notice inviting bids or request for proposals, all bids or proposals timely received shall be opened and declared publicly, either in person or through the City’s online vendor portal website. (c) The Purchasing Agent shall compile and tabulate all bids or proposals timely received and refer them to the appropriate City Department f or evaluation. For public works contracts or purchases of goods or contractual services, the City Department shall make a recommendation of best bidder by applying the criteria set forth in Section 2.24.180. For purchases of professional services, the City Department shall make a DocuSign Envelope ID: 05D7288A-AD53-492A-B7A8-CCDEDD044472 17 recommendation of best qualified person or firm by applying the criteria set forth in Section 2.24.190. (d) The Purchasing Agent shall provide notice of the recommended award to all bidders or proposers through the City’s online vendor portal website or by other means as determined by the Purchasing Agent. (e) The City Manager shall present the recommendation to City Council for award after the time to file a protest has expired or after a final determination on a protest has been made in accordance with Section 2.24.260. (f) The City Council may reject any and all bids or proposals received whenever, in the opinion of the City Council: (1) The bid(s) or proposal(s) received do not comply with the specifications of the notice inviting bids or request for proposals; (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 or proposals are higher than anticipated and a new solicitation would result in savings to the City; or (5) The best interests of the City would be served by a rejection of any or all bids or proposals. (g) Master Services Agreements for Public Works Projects. 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 DocuSign Envelope ID: 05D7288A-AD53-492A-B7A8-CCDEDD044472 18 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 of Public Works; (2) The Director of Public Works shall pre-qualify contractors for as- needed service agreements; (3) The City Council may award as-needed services agreements to prequalified contractors, in amounts not to exceed five million dollars and with terms of no more than five years; (4) When the need arises for the performance of specific tasks within the scope of as-needed service agreements, the Director of Public Works shall seek bids from at least three prequalified contractors and, using the evaluation cr iteria set forth under Section 2.24.180, issue a task order to the best bidder in an amount not to exceed $1,000,000 for a specifically defined scope of work; (5) If the Director of Public Works seeks but is unable to obtain three bids, the Director may issue a task order to the best bidder of the bids submitted; (6) The Director of Public Works may reject any and all bids received in accordance with the standards set forth in subsection (f), above; (7) 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 DocuSign Envelope ID: 05D7288A-AD53-492A-B7A8-CCDEDD044472 19 (8) The Director of Public Works shall submit a report to the City Council on an annual basis containing information about the implementation of this subsection, including a listing of task orders issued pursuant to this subsection. 2.24.230 Sale of Real Property. (a) Declaration of Intent to Sell Real Property. The City Council may, by resolution, declare its intent to sell City-owned real property. Such a resolution shall authorize the City Manager to sell the property. The resolution shall contain the following: (1) The reason for sale of the property; (2) A description of the property to be sold; (3) A finding that the property is no longer needed for the purpose acquired; (4) A finding that the property or title thereto is not needed for any other public purpose; and (5) Designation of the competitive sales process to be used for sale of the property. (b) Notice of Public Sale. Sale shall only be made after advertising of notice in a newspaper of general circulation in the City of Santa Monica on at least two occasions, the first of which shall be at least ten days before the time at which bids or proposals are due. (c) Requirements for Sale by Bids or Auction. On any occasion on which the City Council directs the sale of City-owned real property by bids or auction, after providing notice as required by subsection (b), bids shall be accepted until the time specified in the notice of public sale. The City Manager or designee shall then tabulate all bids received and present them to the City Council. The City Council shall award the sale DocuSign Envelope ID: 05D7288A-AD53-492A-B7A8-CCDEDD044472 20 to the highest and best bidder. The City Council may reject any and all bids presented and may re-advertise in its discretion. (d) Requirements for Sale by Competitive Proposals or Negotiation. On any occasion on which the City Council directs the sale of City-owned property by a call for competitive proposals and negotiation, after providing notice as required by subsection (b), proposals shall be accepted until the time specified in the notice of public sale. The City Manager or designee shall then review all proposals and may negotiate with any party that submits a proposal in order to increase the final sales price, to reduce proposal contingencies, and to ensure sufficient financial resources to complete the sale. The City Council shall award the sale to the best proposer. The City Council may reject any and all proposals and may re-advertise in its discretion. (e) Requirement for Sale by Competitive Proposals and Negotiation. On any occasion on which City Council directs the sale of City-owned property through the use of a duly licensed real estate broker, the broker shall be selected in accordance with the City’s policies for hiring consultants and applicable state and local laws pertaining to conflicts of interest, and the broker must comply with notice of public sale requirements. The broker shall advertise the property for sale, accept offers for the property, and negotiate with potential buyers in order to increase the final sales price, to reduce proposal contingencies, and to ensure sufficient financial resources to complete the sale. The City Council shall award the sale to the best proposer by at least five affirmative votes. The City Council may reject any and all offers and re-advertise in its discretion. (f) Approval of Final Sale. City-owned property shall be sold in accordance with this Section. No real property shall be sold except by resolution of the City Council. DocuSign Envelope ID: 05D7288A-AD53-492A-B7A8-CCDEDD044472 21 (g) Sale without Publication. Sales of real property may be made without advertising if the City Council, by a resolution adopted by at least five affirmative votes, determines that to advertise would cause unnecessary expense and delay or would not be in the best interest of the City. If Council so determines, it may authorize property to be sold by direct negotiation, exchange, sale to an adjacent property owner, conveyance to government bodies, public utilities or nonprofit organizations, or other appropriate method, as authorized in the resolution of intent to sell City-owned property. (g) Approval of Final Sale. City-owned property shall be sold in accordance with this Section. No real property shall be sold except by resolution passed by an affirmative vote of five members of the City Council. 2.24.240 Procedures for Emergency Needs. (a) In the event of an emergency, the City Manager, the Emergency Services Manager, the Purchasing Agent or their one of their designees pursuant to paragraph (b) below is authorized to: (1) Shorten or waive all required notice periods and competitive solicitation procedures set forth in this Chapter; (2) Secure in the open market at the best reasonable price, contracts for public works projects, goods and services; (3) Negotiate or execute such contracts, agreements, applications or other documents with such other federal, state or local agencies or other groups and organizations as are necessary to provide or obtain emergency aid, assistance or services to the City of Santa Monica; and DocuSign Envelope ID: 05D7288A-AD53-492A-B7A8-CCDEDD044472 22 (4) Contract for the immediate expenditure of public funds to safeguard life, health or property. (b) The City Manager, the Emergency Services Manager, or the Purchasing Agent may delegate authority to make purchases and awards under this Section. All such delegations shall be in writing and dated and shall specify the limits of the authority delegated, including, without limitation, the type of purchase, dollar amount, and the terms of any contracts that will be executed under the delegation. All such delegations of authority shall be kept on file by the Purchasing Agent. (c) Within thirty days after any purchase or contract is made pursuant to this Section, the City Manager shall submit in writing to the City Council a full explanation of the emergency circumstances under which the purchase or contract was made. This writing shall be open to public inspection and, to the extent possible, presented as part of a regular meeting of the City Council. (d) For purposes of this section, an emergency shall include: (1) A declared federal or state emergency; (2) A local emergency as declared by the City Council, the City Manager, or the Emergency Services Manager; or (3) An urgent, unforeseen event that threatens life, property, or the general public health, safety and welfare. 2.24.250 Exceptions to the Competitive Process. The competitive selection processes set forth in this Chapter do not apply when: (a) Funds are expended to secure membership or participation in professional organizations, meetings, or conventions; DocuSign Envelope ID: 05D7288A-AD53-492A-B7A8-CCDEDD044472 23 (b) Competition does not reasonably exist because only one vendor possesses the unique ability or capability to meet the particular requirements of the solicitation, such as when a good or service is copyrighted, patented or otherwise only available form one license holder, including, for example, proprietary goods of original equipment manufacturers and/or their authorized exclusive distributors; (c) Competitive procedures were followed by a governmental agency, including a federal, state, county, city, joint powers agency, special district, or cooperative purchasing agency consisting of one or more such agencies, that are equivalent to the procedures set forth in this Chapter, and the goods or services are supplied to the City at the same or better price as the price obtained by that agency; (d) The items to be purchased are for resale to the public, such as, but not limited to, cemetery services or products; (e) The items to be purchased are circulating library materials, including books, periodicals, films and recordings; (f) Special conditions attach to a grant, donation, gift or other legal document that require the use of particular goods and/or services; or (g) The individual or entity with authority to make a purchase or award determines and documents in writing in accordance with procedures set forth in administrative regulations that the time necessary to use the competitive solicitation processes set forth in this Chapter, due to circumstances outside of the control of the City, would result in a substantial economic loss to the City, substantially compromise a legal position, or substantially interfere with a required City operation; or DocuSign Envelope ID: 05D7288A-AD53-492A-B7A8-CCDEDD044472 24 (h) A contract is entered pursuant to procedures adopted by the City Attorney to secure legal services, including, but not limited to, services provided by outside legal counsel, investigators, consultants or experts in conjunction with a claim against the City, pending or anticipated litigation, or an administrative or legal proceeding, except that such procedures shall, where possible, ensure that professional services agreements entered by the City Attorney are subject to a selection process that is consistent with the criteria set forth in Section 2.24.190; or (i) A solicitation is made under the emergency procedures set forth in Section 2.24.240. 2.24.260 Protests. Any bidder or proposer may protest an award recommendation pursuant to the competitive bidding requirements of this Chapter. (a) Protests shall be filed in writing within seven consecutive calendar days following notice of the recommended award, or prequalification for the case of Master Services Agreements subject to 2.24.220(g). (b) Protests 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 will be deemed waived. Any protest not conforming to the requirements of this Section may be rejected as invalid. DocuSign Envelope ID: 05D7288A-AD53-492A-B7A8-CCDEDD044472 25 (c) Protests may be sustained or denied. When a protest is sustained, the awarding authority may, based on the evidence presented: (1) Reject all bids or proposals and order a re-solicitation; or (2) Recommend an alternate best bidder or best qualified person or firm by applying the criteria set forth in Section 2.24.180 or Section 2.24.190, as applicable. (d) Once a protest has been filed, no solicitation shall be awarded until a final determination on the protest has been issued. (e) The City Manager, or designee, shall review and decide all protests relating to solicitations made pursuant to the informal solicitation procedures set forth in Section 2.24.210 and formal solicitation procedures set forth in Section 2.24.220. The City Manager, or designee, shall issue a written determination stating the reasons for sustaining or denying the protest within ten days of receiving the protest. This written determination shall constitute the City’s final decision on the protest. (f) For protests relating to solicitations made pursuant to the formal solicitation procedures set forth in Section 2.24.220, the City Manager shall submit to the City Council a written report on the protest, including the 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 inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. DocuSign Envelope ID: 05D7288A-AD53-492A-B7A8-CCDEDD044472 26 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, claus e, 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: _________________________ LANE DILG City Attorney DocuSign Envelope ID: 05D7288A-AD53-492A-B7A8-CCDEDD044472 Approved and adopted this 23rd day of April, 2019. _____________________________ G l e a m D a v i s , 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. 2608 (CCS) had its introduction on April 9, 2019, and was adopted at the Santa Monica City Council meeting held on April 23, 2019, by the following vote: AYES: Councilmember Morena, Himmelrich, McKeown, Winterer, Jara, Mayor Davis NOES: None ABSENT: Mayor Pro Tem O’Day ATTEST: _____________________________________ _________________ Denise Anderson-Warren, City Clerk Date A summary of Ordinance No. 2608 (CCS) was duly published pursuant to California Government Code Section 40806. DocuSign Envelope ID: 05D7288A-AD53-492A-B7A8-CCDEDD044472 5/1/2019