HomeMy WebLinkAboutO-1991-1476-B
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ORDINANCE NO. 1476-B
AN ORDINANCE AMENDING ORDINANCE NO. 1476-A, AN ORDINANCE REQUIRING THE PRE-
QUALIFICATION OF CONSTRUCTION PROJECTS HAVING AN ESTIMATED COST OF GREATER
THAN THREE HUNDRED THOUSAND DOLLARS ($300,000); REQUIRING FILINGS OF
CONTRACTOR'S STATEMENTS WITH THE CITY OF LA PORTE; PROHIBITING CONTRACTORS
FROM SUBCONTRACTING MORE THAN FIFTY PERCENT (50%) OF WORK ON CITY OF LA PORTE
PROJECTS WITHOUT PRIOR WRITTEN CONSENT; REQUIRING ATTENDANCE AT A PRE-BID
CONFERENCE AS A PREREQUISITE TO SUBMITTING A BID; PROVIDING FOR PUBLICATION OF
NOTICE; APPROVING AND ADOPTING FORMS FOR THE PRE-QUALIFICATION OF CONTRACTORS;
DEFINING "BIDDING CAPACITY"; ADOPTING DISQUALIFICATION STANDARDS; FINDING
COMPLIANCE WITH THE OPEN MEETINGS LAW; CONTAINING A REPEALING CLAUSE; AND
PROVIDING AN EFFECTIVE DATE HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE:
Section 1. The City Council of the City of La Porte has determined, and
does hereby find, determine, and declare that it is in the best interest of
the City of La Porte that all Contractors desiring to bid on City of La Porte
construction projects having an owner's estimated construction cost of greater
than Three Hundred Thousand Dollars ($300,000), must pre-qualify by filing a
satisfactory Contractor's Statement, on the forms attached hereto, with the
City Manager or his designee, City of La Porte, no later than thirty (30) days
prior to the date bids are to be opened, if a Contractor is to be eligible to
bid. For projects with an owner's estimated construction cost of less than
Three Hundred Thousand Dollars ($300,000), Contractor's may have to pre-
qualify, if such is determined by the City Manager. In making such
determination, the City Manager shall review the City's past experience with
projects of similar nature; the recommendation of the project
architect/engineer which considers the complexity of the project; and the
uniqueness or novelty of the anticipated project which may require a high
degree of contractor specialization, technical expertise, and/or previous
experience on similar projects. Once a contractor has successfully pre-
qualified, in order for them to remain pre-qualified, a new Contractor's
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Statement shall be filed with the City annually. The financial information
contained in such Contractor's Statement is deemed confidential; shall not be
disclosed by City to the public or to other contractors; and shall be deemed
exempt from disclosure under the Open Records Act, Art. 6252-17a, V.A.T.S., in
accordance with the Texas Attorney General's Opinion no ORD-309, 1982. The
City Council of the City of La Porte finds that disclosure of the financial
information is likely to have either of the following effects:
(1) to impair the City's ability to obtain necessary information in the
future; or
(2) to cause substantial harm to the competitive positi'on of the person
from whom the information was obtained.
Section 2. Contractors entering bids on City of La Porte construction
projects shall not subcontract more t~an fifty percent (50%) of the work on
the project, without first obtaining the express written consent of the City
of La Porte.
Section 3. All contractors (or a representative of the contractor)
desiring to bid on City of La Porte construction projects must attend a pre-
bid conference; otherwise, such Contractor's bid will be returned by the City
unopened.
Section 4. Public notice of pre-qualification of bidders by the City of La
Porte, shall be published in like manner as invitations to bidders, and shall
not be a substitute for publishing the actual invitation to bidders on each
project.
Section 5. The City Council of the City of La Porte approves and adopts
the forms for Contractor's Statements, attached hereto as Exhibit "An,
incorporated by reference herein, and made a part hereof for all purposes.
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Section 6. The City of La Porte is interested in determining a
contractor's "Bidding Capacity" for the purpose of issuing proposals and
awarding contracts. "Bidding Capacity" for each Contractor shall be equal to
their Net Working Capital". "Net Working Capital" is defined as current
assets less current liabilities, as shown on a balance sheet examined by an
independent Certified Public Accountant. The City will determine the minimum
"Bidding Capacity" for each project. Only those contractor's possessing a
"Bidding Capacity" meeting or exceeding that minimum will be considered pre-
qualified for that project.
Section 7. the City Council of the City of La Porte adopts the following
standards for disqualification of Contractors:
I. AUTOMATIC DISQUALIFICATION
A. Company has a negative Net Working Capital.
B. Failure to complete Statements in all detail.
C. Company or personnel on Federal Job Debarment list.
D. Company or personnel on Justice Department list of unacceptable
contractors; i.e. convicted on anti-trust violations.
E. Failure to complete Statement in a truthful manner.
II. OTHER CONSIDERATIONS FOR POSSIBLE DIS-QUALIFICATION
A. Companies with pending litigation may be disqualified for duration of
litigation as deemed to the advantage of the City by the City's Project
Manager.
B. Default on contract, or forfeiture of bid bonds or performance bonds.
C. Performance record of poor workmanship on previous projects.
D. Performance record of failure to complete warranty work.
E. Bankruptcy or financial reorganization.
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F. Companies submitting consolidated financial statements will be
disqualified unless their parent company agrees to be the contracting
party with the City of La Porte.
Section 8. The City Counci,l officially finds, determines, recites and
declares that a sufficient written notice of the date, hour, place and subject
of this meeting of the City Council was posted at a place convenient to the
public at the City Hall of the City for the time required by law preceding
this meeting, as required by the Open Meetings Law, Article 6252-17, Texas
Revised Civil Statutes Annotated; and that this meeting has been open to the
public as required by law at all times during which this Ordinance and the
subject matter thereof has been discussed, considered and formally acted upon.
The City Council further ratifies, approves and confirms such written notice
and the contents and posting thereof.
Section 9. Except as amended hereby, Ordinance No. 1476-A, passed and
approved July 22, 1987, shall remain in full force and effect.
Section 10. This ordinance shall be in effect from and after its passage
and approval.
PASSED and APPROVED this the 22nd day of July, 1991.
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City Secretary