ITEM 8-B

City Council Meeting  5-10-94           Santa Monica, California

                               STAFF REPORT

TO:       Mayor and City Council

FROM:     City Attorney

SUBJECT:  AN EMERGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY
          OF SANTA MONICA ADDING SANTA MONICA MUNICIPAL CODE
          SECTIONS 2.24.071, 2.24.072 AND 2.24.073 AND AMENDING
          SANTA MONICA MUNICIPAL CODE SECTIONS 2.24.070,
          2.24.080, 2.24.090, 2.24.100 and 2.24.120 REGARDING
          PURCHASING PROCEDURES AND DECLARING THE PRESENCE OF AN
          EMERGENCY

     This proposed emergency ordinance would modify the
provisions of the Santa Monica Municipal Code to create an
updated purchasing procedure.  In addition to assisting in the
earthquake reconstruction effort by the City, this ordinance, if
adopted, would expedite the implementation of the recommendations
of staff regarding alternative shelter space for individuals
utilizing public spaces for residency.  In general, the ordinance
reflects the higher threshold limits set forth in the City
Charter; clarifies the authority of the City Manager or Director
of Emergency Services to act when public health, welfare or
safety mandate action faster than permitted under regular bidding
procedures; and adds new provisions regarding public works and
professional services contracts.  

     Since this is an emergency ordinance, it requires five votes
of the City Council for adoption.  If adopted, this ordinance
would become effective immediately.

                              RECOMMENDATION

          It is respectfully recommended that the accompanying
emergency ordinance be adopted.

PREPARED BY:   Marsha Jones Moutrie, City Attorney
               Martin T. Tachiki, Chief Deputy City Attorney


                        ORDINANCE NUMBER ___ (CCS)

                           (City Council Series)

                 AN ORDINANCE OF THE CITY COUNCIL OF THE
                  CITY OF SANTA MONICA AMENDING SANTA 
                MONICA MUNICIPAL CODE SECTIONS 2.24.070, 
                2.24.80, 2.24.90, 2.24.100 and 2.24.120 
                     REGARDING PURCHASING PROCEDURES

     THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS
FOLLOWS:

     SECTION 1.  Santa Monica Municipal Code Section 2.24.070 is
amended to read as follows: 

               2.24.070 Competitive bidding.
               Pursuant to the terms of Section 1503
          1508 of the City Charter, and in every case
          except as stated in Section 2.24.080, before
          making any purchase of, or contract for
          supplies, materials, equipment or contractual
          services, or before any sale of personal
          property of the city which has become
          obsolete, or unusable, or for any other
          reason is to be disposed of, the purchasing
          agent shall give ample opportunity for
          competitive bidding under the rules and
          regulations and with such exceptions as are
          prescribed in the following sections. 
          
          SECTION 2.  Santa Monica Municipal Code Section 2.24.080 is
amended to read as follows: 
          
          2.24.080 Exceptions to competitive bidding.
               The competitive bid procedure is not
          applicable to those instances where:
                 (1)  Competition does not exist, such
          as membership in professional organizations,
          meetings, conventions, travel, legal
          advertising, public utilities, and
          proprietary items of original equipment
          manufacturers and/or their authorized
          exclusive  distributors.
                 (2)  Competitive bid procedures have
          already been utilized, such as in purchasing
          from federal, state or county agencies and 
          these materials and services are supplied to
          the City at the same or better price, as was
          obtained through the federal, state or county
          competitive bid procedures.
                 (3)  Items to be purchased are for
          resale to the public, such as but not limited
          to the civic auditorium snack bar or cemetery 
          plot marking products.
                    (4) Professional consulting
          services are being obtained through a
          contract for less than $50,000.00 in
          services.  Contracts are for professional
          services. 
              (5)  Items to be purchased are
          cCirculating library materials, including
          books, periodicals, films, and recordings. 
          
               SECTION 3.  Santa Monica Municipal Code Section 2.24.090 is
amended to read as follows: 
          
          2.24.090   Informal purchasing procedures.
               (1)  Convenience Purchase Orders.
                    (a)  Individual purchase related to
          the City's maintenance requirements,
          amounting to less than $500.00 $1,000.00
          aggregate amount per purchase order are
          exempted from competitive bid requirements. 
                    (b)  In the event that the savings
          potential clearly does not justify this
          exemption, open market request-for-quotation
          procedures shall be followed.
               (2)  Open Market Orders. Except as
          provided in Section 2.24.080 or 2.24.090(1),
          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 not more
          than $15,000.00 $25,000.00 in amount, shall
          be made in the open market, without the
          requirement of formal newspaper advertising.
               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. 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. 
          
     SECTION 4.  Santa Monica Municipal Code Section 2.24.100 is
amended to read as follows: 
          
          2.24.100       Formal bidding procedures.
               All purchases of supplies, material,
          equipment or contractual services, except
          professional services,  and all sales or of
          personal property of the City which has
          become obsolete or unusable, or for any other
          reason is to be disposed of for any other
          reason, of more than $15,000.00 $25,000.00 in
          amount or are professional consultant
          agreements in excess of $50,000.00, shall be
          made after publication in the official
          newspaper, 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.
               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.
               Such purchases 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. 
          
     SECTION 5.   Santa Monica Municipal Code Section 2.24.120 is
amended to read as follows:
          
               Section 2.24.120 - Emergency purchases.
               In case an emergency shall arise which
          is so urgent as to preclude action by the
          City Council and which requires any purchase
          of supplies, materials, equipment or
          contractual services, or whenever a
          resolution adopted by the City Council and
          declaring the existence of a Local Emergency
          is in effect, the City Manager or the
          Director of Emergency Services, or their
          authorized representatives, may authorize the
          Purchasing Agent to secure in the open market
          at the best reasonable price, any such
          supplies, materials, equipment or contractual
          services even though the amount thereof shall
          exceed the sum of $15,000.00. $25,000.00. The
          City Manager or the  Director of Emergency
          Services or their representatives are further
          authorized to 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
          to obtain emergency aid, assistance or
          services to the City of Santa Monica and to
          contract for the immediate expenditure of
          public funds to safeguard life, health or
          property, including when necessary to protect
          public health and safety to expedite,
          including, but not limited to shortening all
          required notice periods, or waive competitive
          bidding procedures for the purchase of
          supplies, material, equipment, contractual
          services, public works and other City
          projects. In each such instance, the City
          Manager or the Director of Emergency Services
          shall submit to the City Council in writing,
          a full explanation of the circumstances of
          such emergency, unless the actions occurred
          during a declared period of Local Emergency,
          which shall become a part of the next ensuing
          meeting of the City Council and shall be open
          to public inspection. 
                
               SECTION 6.  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 7.  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, 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 7.  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 after 30 days from its
adoption.

APPROVED AS TO FORM:

______________________
MARSHA JONES MOUTRIE
City Attorney