REPORT TO COUNCIL
SUBJECT
Title
Action on proposed Contract Streamlining Practice and Provide Direction Regarding Amending City Code
Report
BACKGROUND
In February 1995, City Council directed the City Attorney to create language to be included in all future agreements allowing the City to terminate agreements where a contractor had been convicted of certain crimes. The City Council approved the language of the Ethical Standard Exhibits on February 14, 1995, and since then it has been required in all agreements exceeding $5,000. One of the exhibits requires the contractor to acknowledge the standards by notarization.
DISCUSSION
The City Attorney’s Office is in the process of reviewing standard City agreements and during its review has determined that the Ethical Standard Exhibits do not provide the City with a higher form of contractual protection from contractors that are convicted of certain crimes. Since they were instituted, the Ethical Standard Exhibits have never been utilized to refuse entering into an agreement or termination of an agreement. Most of the agreements the City enters into allow the City to terminate without cause with 30 days’ notice. Therefore, the City would be able to terminate an agreement regardless of the Ethical Standard Exhibits. Moreover, the notarization process is a burdensome element to the agreement execution process that adds no value to the City. If the Council is interested in having a statement of Ethical Standards in the City Code, we request that direction be provided on the types of standards that should be enacted.
Notwithstanding possible amendments for inclusion of ethical standards in the City Code, we request that Council rescind the requirement for the notarization of the Ethical Standard Exhibits in the interest of streamlining processes.
ENVIRONMENTAL REVIEW
Council’s action to change the contracting process does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is an administrative activity that will not result in direct or indirect changes in the environment and does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
FISCAL IMPACT
Although there is no anticipated fiscal impact for the City, City contractors will not have to pay for a notary’s services, thereby streamlining the process and obtaining a fiscal benefit.
COORDINATION
This report has been coordinated with the Finance Department.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorization to rescind the requirement for the notarization of the Ethical Standard Exhibits for City contracts.
2. If the Council is interested in having a statement of Ethical Standards in the City Code, provide direction on the types of standards that should be enacted.
Staff
Reviewed by: Brian Doyle, City Attorney
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Ethical Standards Exhibits D and E