O1951f:\atty\mu ni\laws\jl\bidpref-1.wpd
City Council Meeting 9-14-99 Santa
Monica, California
ORDINANCE NUMBER 1951 (CCS)
(City Council Series)
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.
1
(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 and 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 competition
thereon, and such records shall also be open to public
inspection.
(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
2
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 shall 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
3
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 opened 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.
4
(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 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.
5
(2) For purposes of this provision a City
business shall 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 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 newspaper within 15 days after its adoption. This Ordinance shall become
effective 30 days from its adoption.
6
APPROVED AS TO FORM:
S/
MARSHA JONES MOUTRIE
City Attorney
Adopted and approved this 14t" day of September, 1999.
S/
Pam O'Connor, Mayor
State of California )
County of Los Angeles ) ss.
City of Santa Monica )
I, Maria M. Stewart, City Clerk of the City of Santa Monica, do hereby certify that the
foregoing Ordinance No. 1951 (CCS) had its first reading on August 10, 1999, and was
adopted on September 14, 1999, by the following vote:
Ayes: Council members: Holbrook, Bloom, McKeown, Feinstein, Mayor Pro Tem
Genser, Mayor O'Connor
Noes: Council members: Rosenstein
Abstain: Council members: None
Absent: Council members: None
S/
Maria M. Stewart, City Clerk
7