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HomeMy WebLinkAboutResolution - City Council - 82-526 - 1982-11-09• RESOLUTION NO. 82-S26 A RESOLUTION OF THE COUNCIL OF THE CITY OF FRESNO, CALIFORNIA, ESTABLISHING PROCEDURES FOR REJECTION OF A LOWEST BID, BASED ON A FINDING OF NONRESPONSIBILITY .. General Services Cf. ty Attornt?Y WHEREAS, in those situations where competitive bidding is required in conjunction with the award of a city contract, the contract must be awarded to the lowest bidder unless the city: ( l) noti.f ies the lowest bidder. that. hE1 has been ten ta ti viely found not to be a responsible bidder, together with the reasons for such finding, (2) affords him an opportunity to rebut such finding·, (3) permits him to present evidence that he is qualified to perform the contract, and (4) makes .a finding, supported by evidence, that the lowest bidder is nonresponsible; and WHEREAS, the City of Fresno desires to establish procedures"' for making such an evaluation and rejecting the lowest bid received on a project required to be competitively bid, based on a finding.of nonresponsibility. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Fresno: The :following procedures shall ctpply in .all instances where a preliminary evaluation of the lowest bidder on a project required to be competitively bid shows that he may be nonresponsible, i.e., unable to perform satisfactorily the proposed contract. Section l., Departmental Recommend?-tiqn .. Pursuant to Administrative Manual Instruction No. 6-10, the Purchasing Agent, after bid opening, shall forward to the department administering the contract all documents related b:> the bid, specifying the date a reply is requir1ed to meet the bid award deadline, and id1entifying any perceived errors, irregularities, or Qreas of nonresponsiveness. If the Purchasing Agent at any time becomes aware of circumstances which cast reasonable doubt upon the ability of a bidder to perform satisfactorily the contract, he shall immediately advise the admi.nistering d~:ipa:rtment. • • The department shall review the bids submitted, prepare a recommendation,, and submit it to the Purchasing Agent. If the recommendation is to awarc1 to other than the lowest bidder, written justification shall be submitted with the recommendation. section 2. Purchasit}i9 Agent• .s Recommendation. Pursuant to Administrative Manual Instruction Na. 8-3, the Purchasing Agent shall ascertain, in consultation with the City Attorney, whether the justif:ication submitted by the department demonstrates that the lo1west bidder may not be a responsible bidde](::. If the Purchasing Ag,ent, with the City Attorney's concu1:rence, determines th;at. the lowest bidder may be nonresponsible, the Purchasing Agent shall submit his recommendation to that effect, with justification, to the Chief Administrative O:Eficer. Section 3. Initiation of H__§1aring _Process. The Chief Administrative Officer shall review the Purchasing Agent's recommendation to ascertain whether he concurs that there may be sufficient justification that the lowest bidder (hereinafter Bidder} may be nonresponsible. If he concurs, the Chief Administrative Officelr: shall prepare and serve (personally or by registetE~d mail) a Notice of Intent to Reject Lowest Bid, notifying the Bidd(~r' of the evidence reflecting upon his responsibility.. The Not.ice shall also notify the Bidder that he may request a hearing within seven (7) calendar days of service of the Notice, and that if a request for a bearing is not received within that time, the City may proceed to award the contract to the next low bidder without a hearing on nonresponsibility. If necessary, the Purchasing Agent shall obtain statements from the other bidders extending the time within which the City may accept their bids. Section 4. Prehearing Procedures. a. ~earing Offi~er. If a request for a hearing is received within the specified time, the Chief Administrative Officer shall have the authority to contract with the vffice of Administrative Hearings_ of the State of California for the services of a staff hearing officer. If such a hearing officer is not availableJ the Chief Administrative Officer may contract with any independent hearing officei:. lb. ~09-ce of Hea~ing. The hearing shall be scheduled as soon as J;>racticable after the request is received, to take place not less than ten (10) calenda.r days, and not more than twenty ( 20) catlendar days from the Bidder's request; provided that such time s:hall be extended to accommodate the hearing officer's schedule i.f he is not available within twenty days 0 and such time may, in any event, be extended or shortened upon agreement by both parties .. Notice of the date and time of the hearing shall be served on the Bidder at least ten (10) calendar days prior to the hearing~ The Bidder shall be notified that he may be present at the hearing, may but need nc•t be represented by counsel, may present any relevant evidence, will be given full opportunity to cross-examine all witnesses testifying against him, and will be entitled to the issuance of subpoenas by applying to the hearing officer. -2- • c. Notice of Defense .. The bidder shall submit to the Chief Administrative Officer, at least five (5) calendar days prior to the hearing, a Notice of Defense which contains evidence rebutting that contained in the Noticie of Intent. to Reject, and any additional evidence to be presented at the hearing as a defense .. Failure to timely submit suc~h a response shall be deemed an admission that the statements set forth in the Notice of Intent to Reject are all true and correct. d.. sub120.enas:. If the Bidder or the City requests, at least five (5) calendar days prior to the hearing, the issuance of" a subpoena or subpoena duces tecum, the heating officer shall issue the subpoena.. The party requesting the subpoenc. shall be responsible for serving it. Whenever possible, subpoenas shall be served at least forty-eight (48) hours in advance of the hearing. A written motion to quash a subpoena may be made to the hearing officer on one oir more of the following 9rounds, which shall be clearly and fully stated in the motion: i. Compliance will be unduly burdensome or against public policy .. ii. The items subpoenaed are privileged by law. iii. The items subpoenaed are irrelevant or unnecessary to the proceedings. iv. The items subpoenaed have not been de~~cribed with sufficient clarity to enable the witness to co:mply. Before he commences or continues with the procieeding, the hearing officer shall wholly or partially grant or deny the motion to quabh. A motion to quash a subpoena may be made by either party at any time up to the time for hearing, or as otherwise: directed by the hearing of;ficer. section 5. Hearing Rule:..e_., a. Purpose. Th,e purpose of the hearing shall he to evaluate the Bidder's responsibility, i.e~, whether he is qualified to perform satisfactorily the proposed contract .. b. Rules of Evidence. i. Oral evidence shall be taken only on oat;h o,t affirmation which shall be administered by the bearing officer, and all relevant written evidence is admissable .. 11~ Each party may call and examine witnesses, introduce exhib:t ts, and cross-exa1mine and impeach any witness on any matter relevant to the issues. If the Bidder does not testify. in his own beha.lf, he may be called ancl examined as if under cross-examination. iii. Refusal by any witness or party to submit to examination or to answer relevant questions shall be grounds for fair conunent by the party propounding said questions .. iv. The he.aring n~sed not be conducted according to the technical rules of law relating to evidence and witnesses. Any relevant evidence shall be admitted if it i.s the sort of evidence on whi1cb responsible persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rule which might -3- " • make improper the admission of such evidence over objection in civil actions. Hearsay evidence may be used for the purpose of sup_plementin~ or explaining any direct evidence but shall not be sufficient in itself to support a finding unless it would be admissible over objection in civil actions. v. Copies of the reports and records of any government.al agency, division or bureau, will be accepted as evidence in lieu of the original thereof. c. EFes~,ntation of .Testimony.,_ Evidence and ~rgumen_!:.. The hearing officer shall preside at the hearing, rule on the admission and exclusion of evidence, and exercise all other po"fer s relating to the conduct of the hearing.. The hearing shall be tape recorded at the cost of the City. The order. of presentation shall be as follows: i. The City shall present tes.timony and evidence .. ii. The bidder shall present testimony and evidence. iii. Each party may cross-examine witnesses, after examination, but limited to the scope of said direct examination. iv. Rebuttal evidence may be presented. v. Each party shall be allowed to present closing arguments, the City to argt?,e first and to have the right to a rebuttal argument .. · d.. Decisiog. Upon the conclusion of all testimony, evidence and argument,. the hearing of:ficer shall ask if the parties are ready to submit the matter fo:r decision, and if so, or if the hearing officer otherwise orders for good cause, he shall close the hearing and declare the matter submitted for decision,,, The decision of the hearing officer shall be in writing, and shall contain findings of fact determining whetber the Bidder i.s responsible, is nonresponsible, or ts conditi.onally responsible. If the hearing officer finds the Bidder to be conditionally nonresponsible, he shall include a finding that if the Bidder meets certain conditions, the facts which make the bidder otherwise nonresponsible will be remedied. Any such conditions must be reasonably related to the objective of eliminating the objections to the bidder. Copi,es of the cleci.sion shall be served on the part:i.es within fifteen {15) calendar days of the hearing. The decision of the hearing officer shall constitute a recommendation to the council. At its next regular meeting after the filing of the hearing officer's decision with the City, or on the date to which the matter may h,ave been continued by the Council, the Council shall, without t::aki.ng evidence, on behalf of either the Bidder or the City, consider the recommendation <>f the hea.ring officer .. Following consideration thereof, the Council shall make a finding of responsibility or nonresponsibility, and may award the contract to the Bidder, with or without conditions, may award to other than the Bidder, or may reject all bidsa · Section 6. Effect of Decision. ------------ A finding of nonresponsibilitl1 by the hearing officer, when affirmed by the Council 1 shall be sufficient cause to reject bids submitted by the nonresponsible Bidder for substantially • • similar contracts for a period of one year following the Council's action, or such other period as the Coun,cil may determine .. The Bidder shall be given at least five (5) calendar days' notice prior to the Council meeting at which the subject contract will be awarded, or bids will be rejected, and will be permitted at that time to present evidence to the Council concerning the time period within which he will be suspended from bidding on substantially similar contracts, if applicable. Whether he appears at the Council meeting or not, the Bidder shall be given written notice of the Council's decision, and of the time period during which any susp,ension from bidding will be effective. Section 7. Judicial Review. If judicial review of the council's decision is sought, the petition to the court shall be filed within thirty (30} calendar days from the <late of mailing of notice of the Council's decision. Section 8. A failure to comply precisely with the technical requirements set forth in this resolution shall not negate the Councilts authority to make a finding of nonreeponsibility. * * * * * * * * * * * * * * STATE OF CALIFORNIA COUNTY OF FRESNO CITY OF FRESNO CLERK'S CERTIFICATION ) ) ss. ) I, JACQUELINE L. RYLE, City Clerk of the City of Fresno, certify that the foregoing resolution was adopted by the Council of the City of Fresno, California, at a regular meeting held on the 9th day of November, 1982 • APPROVED AS TO FORM CITY AT'rORNEY' S OFFICE By: J{i14t+Qut~ -=- DEPUTY JLW/zzd 11-5-82 1490/40 -5-