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HomeMy WebLinkAboutO-2013-3491 revise standards/review of financial records of certain bidders on construction contractsORDINANCE NO. 2013 -34q1 AN ORDINANCE AMENDING CHAPTER 2 "ADMINISTRATION" OF THE CODE OF ORDINANCES BY REVISING STANDARDS RELATED TO REVIEW OF FINANCIAL RECORDS OF CERTAIN BIDDERS ON PUBLIC WORKS CONTRACTS; CONTAINING A SEVERABILITY CLAUSE; CONTAINING A REPEALING CLAUSE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS: Section 1: That Chapter 2, "Administration," Article III, "Finance," Division 2. "Purchases and Contracts", Subdivision II "Public Works Contracts", Section 2-106 of the Code of Ordinances, La Porte, Texas, is hereby amended to read as follows: "Sec. 2-106. - Qualification requirement of bidders; filing of contractor's qualification statement. (a) The city council has determined, and does hereby find, determine, and declare that it is in the best interest of the city that in the case of all construction projects having an owner's estimated construction cost of greater than $1,000,000.00, all bidders must submit with their bid package, a satisfactory contractor's qualification statement, on forms to be provided by the city. Submission of a contractor's qualification statement is a condition precedent to execution of a contract by the city with the successful bidder. (b) For projects with an owner's estimated construction cost of less than $1,000,000.00, contractors may be required to file a contractor's qualification statement, if such is determined by the city manager to be required. 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. (c) After the bid opening for contracts up to $2,000,000.00 the city shall request financial statements from the apparent low bidder that have been reviewed by an independent certified public accountant. For contracts over $2,000,000.00 the apparent low bidder must submit audited financial statements performed by an independent certified public accountant. The information contained in such contractor's qualification statement and the reviewed or audited financial statement is deemed confidential; shall not be disclosed by the city to the public or to other contractors; and shall be deemed exempt for disclosure by the city to the public or to other contractors; and shall be deemed exempt from disclosure under the Open Records Act, V.T.C.A., Government Code §552.001 et seq., in accordance with the state attorney general's opinion number ORD -309, 1982. The city council 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 position of the person from whom the information was obtained." Section 2: That Chapter 2, "Administration," Article III, "Finance," Division 2. "Purchases and Contracts", Subdivision II "Public Works Contracts", Section 2-107 of the Code of Ordinances, LaPorte, Texas, is hereby amended to read as follows: "Sec. 2-107. - Requirements for contractors entering bids on projects subject to submittal of qualification statement under section 2-106. (a) Subcontracting of work in excess of SO percent; consent required. Contractors entering bids on city construction projects subject to section 2-106 of this Code shall not subcontract more than 50 percent of the work on the project without first obtaining the express written consent of the city. (b) Attendance of pre-bid conference required. All contractors (or representatives of the contractors) desiring to bid on city construction projects subject to section 2- 106 of this Code must attend a prebid conference. Otherwise, such contractors' bids will be returned by the city unopened. (c) Determination of bidding capacity. The city is interested in determining a contractor's bidding capacity for the purpose of awarding contracts subject to section 2 -106 -of this Code. Bidding capacity for each contractor shall be equal to net working capital. Net working capital is defined as current assets less current liabilities, as shown on a balance sheet reviewed or audited by an independent certified public accountant. The city will determine the minimum bidding capacity for each project. Only those contactors possessing a bidding capacity meeting or exceeding that minimum will be considered qualified for that project. (d) Standards for contractor disqualification. The city council adopts the following standards for disqualification of contractors: (1) Automatic disqualification. Automatic disqualification shall take place under the following circumstances: a. The company has a negative net working capital or does not meet minimum bidding capacity. b. There is a failure to complete statements in all detail. C. The company or personnel are on the federal job debarment list. d. The company or personnel are on the Justice Department list of unacceptable contractors; i.e. convicted on antitrust violations. 2 e. There is a failure to complete a statement in a truthful manner. (2) Other considerations for possible disqualification. Disqualification may also take place according to the following considerations: a. Companies with pending litigation may be disqualified for the duration of litigation as deemed to the advantage of the city by the city's project manager. b. There is a default on the contract, or forfeiture of bid bonds or performance bonds. C. There is a performance record of poor workmanship on previous projects. d. There is a performance record of failure to complete warranty work. e. There has been a bankruptcy or financial reorganization. f. Companies submitting consolidated financial statements will be disqualified unless their parent company agrees to be the contracting party with the city." Section 3. The City Council 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 is 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 Chapter 551, Tx. Gov't Code; 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 4. Each and every provision, paragraph, sentence and clause of this Ordinance has been separately considered and passed by the City Council of the City of La Porte, Texas, and each said provision would have been separately passed without any other provision, and if any provision hereof shall be ineffective, invalid or unconstitutional, for any cause, it shall not impair or affect the remaining portion, or any part thereof, but the valid portion shall be in force just as if it had been passed alone. Section 5. All ordinances or parts of ordinances in conflict herewith are hereby repealed to the extent of such conflict only. Section 6. This Ordinance shall be effective after its passage and approval. PASSED AND APPROVED this the eQh —day of ATTEST: t Secre ry APPROVED: CIl LE 2013. Assistant City Attorney