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 ("CEQ...
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