MEETING DATE:
JUNE 22, 2021
SUBJECT:
Title
ORDINANCE NO. 2021 - 1497 - INTRODUCTION AND FIRST READING OF ORDINANCE ADDING SAN MARCOS MUNICIPAL CODE SECTIONS 2.30.105 ESTABLISHING PROCEDURES FOR PREQUALIFYING CONTRACTORS AND SECTION 2.30.190 ESTABLISHING GROUNDS FOR DEBARMENT OF CONTRACTORS
Body
Recommendation
Recommendation
ADOPT the first reading of an ordinance modifying San Marcos Municipal Code sections 2.30.105, establishing procedures for prequalifying contactors, and Section 2.30.190, establishing grounds for debarment of contractors.
Body
Board or Commission Action
Not Applicable
Relevant Council Strategic Theme
Dynamic and Responsive Service Delivery
Good Governance
Relevant Department Goal
Not Applicable
Executive Summary
This ordinance proposes the introduction of two new elements to the purchasing provisions of the Municipal Code to establish procedures for prequalifying and debarring contractors from bidding. The prequalification of contractors would allow the City to solicit for work based on the contractor’s ability to perform the work prior to requesting a bid. The debarment of contractors would allow the City to reject bids from a contractor that has demonstrated poor performance on previous government projects. In general, debarment would not exceed three (3) years unless extended as provided in the proposed ordinance; permanent debarment is proposed for those contractors that have been convicted of or can be shown to have committed serious offenses.
Discussion
Prequalification is a process by which the City may request and evaluate qualifications from contractors to evaluate the ability of the firm to complete the work in advance of a bid. Debarment is the process of restricting a contractor from bidding on a project due to unsatisfactory past performance by the contractor. The prequalification and debarment processes provide benefits to the City by improving the quality of contractors that perform work on City projects, and providing the City with the ability to qualify contractors in advance of projects. The City’s purchasing ordinance does not currently address the prequalification or debarment of contractors. This lack of codified procedures results in fewer procurement options available to City staff. A lack of debarment provisions leaves the City with fewer recourses in preventing contractors who have engaged in unsatisfactory performance.
The prequalification provisions of the proposed ordinance would allow the City to publicly solicit contractors that will be pre-qualified for certain work. Prequalification will be established by a questionnaire that will allow contractors to submit their qualifications to the City for the scope of work requested. Contractors deemed qualified will be placed on a list. As the need for work arises, City staff may solicit proposals from the contractors on the prequalification list. The prequalification of contractors would be effective for up to two (2) years.
The debarment provisions of the proposed ordinance would restrict contractors deemed to have performed unsatisfactorily from bidding on future projects. Unsatisfactory performance is specifically described in the ordinance and includes actions such as: failing or refusing to properly perform or complete work; failing to honor contractual obligations; violations of regulations relating to prevailing wage, occupational safety and health, hazardous materials, and/or solid waste; and submitting false information or claims.
Debarment duration is dependent on the nature of the performance issue. Contractors will have the ability to appeal any decision by the City to debar that company for any period of time. If invoked, non-permanent debarment will be for an initial period of three (3) years, but may be extended by the City Manager on review prior to the expiration of the debarment period for potential extension of debarment for periods of two (2) years if needed to protect the public interest.
The proposed ordinance provides that contractors may be permanently debarred in the event of a judgment, settlement, stipulation, conviction, or agreement for crimes such as fraud, bribery, conspiracy, bid rigging, receiving stolen property, perjury, embezzlement, or other criminal offense, or for a violation of the FPPC or Municipal Code regulations relating to campaign contributions, for corrupt practices, for four final unsatisfactory performance evaluations over a four (4) year period, and for other similar offenses. An appeal process is available for either type of debarment determination, with the City Manager’s determination on such appeals being final.
The provisions in the proposed ordinance will help to improve contractor quality and improve procurement options. Therefore, staff recommends the adoption of an ordinance to establish a prequalification and debarment process.
Environmental Review
The activity performed under this action is not a “project” as defined under Section 15378 of the California Environmental Quality Act, State Guidelines; and, is therefore not subject to environmental review pursuant to State Guideline Section 15060(c)(3).
Fiscal Impact
No direct fiscal impact occurs as a result of the adoption of this ordinance. Nominal staff costs are anticipated relating to time spent to manage ongoing debarment. Cost savings may be realized in reductions of staff time spent on purchasing and managing poor performing contractors.
Attachment(s)
Ordinance 2021-1497
Prepared by: Isaac Etchamendy P.E., City Engineer
Submitted by: Merce LeClair, Contracts, Grants & Procurement Manager
Reviewed by: Dahvia Lynch, Development Services Director
Approved by: Jack Griffin, City Manager