Chapter 7 Purchasing Code

Sec. 7.31.     Contractual Remedies

A.     Authority to Debar or Suspend.

1.     Authority.

a.     After reasonable notice to the person or entity involved and reasonable opportunity for that person or entity to be heard, the Director, after consultation with the City Attorney or his designee, shall have authority to suspend a person or entity from consideration for award of bids/contracts if there is sufficient cause. The suspension shall not exceed a maximum period of one (1) 
year.

b.     The Director shall have authority to debar a person from consideration for award of bids/contracts if there is sufficient cause. The debarment shall not exceed a maximum period of five (5) 
years.

c.     Decisions of the Director to suspend or debar may be appealed, in writing, to the City Council within seven (7) calendar days from the date of such decision.

2.     Causes for Debarment or Suspension. The causes for debarment or suspension include, but are not limited to, the following:

a.     Conviction or commission of a criminal offense incident to obtaining or attempting to obtain a public or private contract or subcontract or incident to performance of such contract or subcontract.

b.     Conviction under state or federal statutes of embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving of stolen property or any other offense indicating a lack of business integrity or business honesty which currently, seriously and directly affects responsibility as a contractor.

c.     Conviction under state or federal antitrust statutes arising out of the submission of bids or proposals.

d.     Violation of material bid/contract provision.

(i)     Deliberate failure without good cause to perform in accordance with the specifications or within the time limit provided in the bid/contract or,

(ii)     A recent record of failure to perform or of unsatisfactory performance in accordance with the terms of one or more bids/contracts; provided that failure to perform or unsatisfactory performance caused by acts beyond the control of the contractor shall not be considered to be a basis for debarment.

e.     Any other cause/material factor which adversely affects the responsibility of a person or entity as a City contractor, including suspension/debarment by another governmental entity for any of the causes listed in this section.

f.     Refutation of a bid/contract by failure to provide bonds, insurance, or other required certificates within a reasonable time period.

g.     Refusal to accept an addendum, agreement or contract, or to perform thereon provided such addendum, agreement or contract was issued timely and in conformance with the bid received.

h.     Overall performance of a contract which has been evaluated in writing as "poor" or "unsatisfactory."

i.     Presence of principals or corporate officers in the business or concern, who were principals or corporate officers within another business at the time when the other business was suspended or debarred within the last five (5) years under the provisions of this section.

3.     Decision. A decision to suspend or debar shall be in writing and shall:

a.     State the period of suspension/debarment.

b.     State the reasons for the action taken.

c.     Inform the suspended or debarred person or entity involved of his right to administrative or judicial review as provided in policy and procedures.

4.     Notice of Decision. A copy of the decision under this section shall be mailed or otherwise furnished to the suspended or debarred person or entity and any other affected party.

5.     Maintenance of List of Debarred and Suspended Persons or Entities. The Director shall maintain and update a list of debarred and suspended persons or entities. Upon requests, political subdivisions of the State may be supplied with this list and the Director may send updates of this list as necessary. Such list shall be available to the public upon request.

6.     Right of Appeal. Decisions of the Director may be appealed to the City Council. A written appeal requesting reconsideration by City Council shall be submitted by the aggrieved party to the Director within seven (7) calendar days of the Director's decision. The Director shall place the appeal on the Council Agenda and forward such appeal to the City Clerk for a determination by City Council.

B.     Authority to Terminate Contracts.

1.     Applicability. This section applies to contracts, procured by the Office of Purchasing and Materials Management, between the City and a person or entity which provide for termination of the contract by the City for cause and/or for convenience.

2.     Authority.

a.     The Director shall have the authority to terminate a contract for cause, in the event of a breach by the contractor, or for convenience if in the best interests of the City.

b.     Nothing in this ordinance shall be construed to restrict the Director from simultaneously making a determination to terminate a contract under this section and suspending/debarring a contractor.

3.     Right of Appeal. Decisions of the Director may be appealed to the City Council. A written appeal requesting reconsideration by City Council shall be submitted by the aggrieved party to the Director within seven (7) calendar days of the Director's decision. The Director shall place the appeal on the Council Agenda and forward such appeal to the City Clerk for a determination by City Council.

4.     Notice of Decision. A copy of any decision under this section shall be mailed or otherwise furnished to the contractor.

5.     Finality of Decision. Any decision under this section shall be final and conclusive upon the contractor.

C.     Other Remedies. Nothing in this section shall limit the City from pursuing other legal or contractual rights or remedies against the contractor.

(Ord. of 7-18-1988, Doc. #22235; Ord. of 7-8-1996, Doc. #29463; Ord. of 10-29-2001, § 1, Doc. #011029702)

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