Chapter 17.30
STADIUM AUTHORITY PROCUREMENT POLICY

Sections:

Article I. General Provisions and Definitions

17.30.010    General purpose, intent and authority.

17.30.020    Definitions.

17.30.030    Exemptions from centralized purchasing.

Article II. General Provisions and Definitions

17.30.040    Supplies, goods and equipment.

17.30.050    Bidding.

17.30.060    Purchase orders.

17.30.070    Encumbrance of funds.

17.30.080    Best value selection procedures.

17.30.090    Formal bidding procedure.

17.30.100    Action by Stadium Authority Board.

17.30.110    Exclusion.

17.30.120    Service contracts – Signature authority.

17.30.130    Public works.

17.30.140    Bid contest procedures.

17.30.150    Enforcement and remedies.

17.30.160    Information collection and reporting.

17.30.170    Conflict of interest.

17.30.180    Amendments.

Article I. General Provisions and Definitions

17.30.010 General purpose, intent and authority.

(a) General Purpose. The purpose and intent of this chapter is to formalize the policies and procedures with respect to procurement for the Santa Clara Stadium Authority (“Stadium Authority”).

(b) Intent. The Stadium Authority was formed to facilitate the acquisition, financing, development, operation and maintenance of the Stadium Project. The Stadium Authority intends, through the adoption of these procurement policies, to:

(1) Establish efficient, equitable and effective procedures for the procurement activities of the Stadium Authority;

(2) Ensure the integrity and equity in the procurement activities of the Stadium Authority and provide safeguards for the impartial application of the procurement policies; and

(3) Enable the Stadium Authority to operate and maintain equipment and facilities responsibly and to complete projects on time and on budget.

(c) Authority. The Executive Director shall be appointed as the purchasing officer of the Stadium Authority and shall have the authority to:

(1) Purchase or contract for supplies, materials, and equipment required by the Stadium Authority in accordance with prescribed purchasing and bidding procedures and such other rules and regulations;

(2) Negotiate and execute contracts for the purchase of supplies, materials, and equipment, or delegate said duties to a designee;

(3) Act to procure for the Stadium Authority the needed quality and quantity of supplies, materials, and equipment at least expense to the Stadium Authority;

(4) Endeavor to obtain as full and open competition as possible on all purchases;

(5) Prepare and recommend to the Stadium Authority Board revisions to the rules governing the purchase of supplies, materials, and equipment for the Stadium Authority;

(6) Keep informed of current developments in the field of purchasing, prices, market conditions, and new products;

(7) Prescribe and maintain such forms as are reasonably necessary to the operation of the purchasing system and other rules and regulations;

(8) Supervise the inspection of all supplies, materials, and equipment purchased to ensure conformance with specifications, or delegate said duties to a designee;

(9) Maintain a bidders list, vendor catalog file(s), and the records needed for the efficient implementation of the procurement policies, or delegate said duties to a designee.

Any of the Executive Director’s authority may be delegated to contractors with the Stadium Authority; provided, that the contract delegating such authority is approved by the Stadium Authority Board and the procurement performed by the contractor is within the limits of a budget approved by the Stadium Authority Board for the year in which the contract is awarded.

(d) Waiver. The Executive Director (but not a contractor to whom the Executive Director has delegated its authority) shall have the authority to waive or modify any provisions of this chapter without any further action of the Stadium Authority Board. (Ord. 1900 § 1, 11-27-12).

17.30.020 Definitions.

For the purposes of this chapter, the following terms, phrases and words shall have the meaning respectively prescribed to them by this section:

(a) “Contract amount” means the value of the entire contract, including any option. With respect to contracts for materials and supplies, the contract amount includes the costs of the materials and supplies as well as any installation and servicing costs including in the acquisition of the materials and supplies. In determining the contract amount, (1) multiple contracts with a single vendor for similar materials and supplies shall be considered a single contract, and (2) in the case of multi-year contracts covering years for which a budget has not yet been adopted shall not include amounts due in subsequent years that are conditioned on approval of the appropriate year’s budget.

(b) “Days” means calendar days.

(c) “Executive Director” means the Executive Director of the Stadium Authority, or a designee, including (except as otherwise specifically provided herein) any contractor to whom the Executive Director has delegated authority pursuant to SCCC 17.30.010(c).

(d) “Other public works” means other infrastructure, including, but not limited to, streets and highways, public rail transit, or water resource facilities and infrastructure not located on the stadium site or adjacent City streets and property.

(e) “Proposal” means the response by an offer or to a solicitation to obtain supplies or services.

(f) “Responsive” means a bid or offer submitted in response to a solicitation that conforms in all material respects to the requirements contained in the solicitation.

(g) “Stadium Authority” means the Santa Clara Stadium Authority.

(h) “Stadium Authority Board” means the governing board of the Santa Clara Stadium Authority.

(i) “Stadium Project” means the construction, operation, and maintenance of a stadium, including all appurtenant improvements and related facilities located on the stadium site or adjacent City streets and property.

(j) “Services” means the rendering of time, effort, or work, rather than the furnishing of a specified physical product other than reports incidental to the required performance.

(k) “Supplies” means all tangible personal property, including furniture, commodities, goods, equipment, leases of equipment, and insurance, including incidental insurance. (Ord. 1900 § 1, 11-27-12).

17.30.030 Exemptions from centralized purchasing.

The Stadium Authority, as a joint exercise of power authority established under Articles 1 through 4 of Chapter 5 of Title 1 of the Government Code (Government Code Sections 6500 et seq.), is not a department of the City and shall be exempt from the requirements that City departments purchase or contract or specify supplies, materials, and equipment through the purchasing division. (Ord. 1900 § 1, 11-27-12).

Article II. General Provisions and Definitions

17.30.040 Supplies, goods and equipment.

The procurement policies apply to all purchases or contracts for supplies, goods, materials, and equipment by and on behalf of the Stadium Authority. Purchases of supplies, materials, and equipment by bid procedures shall be pursuant to SCCC 17.30.050 through 17.30.110. (Ord. 1900 § 1, 11-27-12).

17.30.050 Bidding.

Bidding for supplies, goods, and equipment may be dispensed with only when:

(a) An emergency requires that an order be placed with the source of supply that can furnish the personal property most expeditiously. For purposes of this section, “emergency” shall be considered to mean the situations where delay caused by obtaining competitive bids would result in health and safety risks; or

(b) The contract amount involved is less than two hundred fifty thousand dollars ($250,000.00) for supplies, goods and equipment if said expenditure has been included in the Stadium Authority’s approved annual budget; or

(c) The personal property can be obtained from only one vendor.

Informal selection procedures (SCCC 17.30.080) shall be conducted for purchases or contract amounts of two hundred fifty thousand dollars ($250,000.00) or more, but less than one million dollars ($1,000,000.00); and

Formal bidding procedures (SCCC 17.30.090) shall be conducted for purchases or contract amounts of one million dollars ($1,000,000.00) or more.

Bidders will be deemed to be doing business in the City of Santa Clara and are required to pay taxes locally, unless required otherwise by State law. (Ord. 1900 § 1, 11-27-12).

17.30.060 Purchase orders.

(a) Purchases of supplies, materials, and equipment not subject to bid procedures shall be made only by purchase order approved by the Executive Director.

(b) Prior to making contractual payments, the Executive Director shall verify that the goods or services have been provided according to the terms and conditions set forth in the contract. (Ord. 1900 § 1, 11-27-12).

17.30.070 Encumbrance of funds.

Except for reserved purchase order numbers assigned by the purchasing officer, the purchasing officer shall not issue any purchase order or award any contract for supplies, materials, or equipment unless there exists an unencumbered appropriation in the proper account of the Stadium Authority to which the purchase is to be charged. (Ord. 1900 § 1, 11-27-12).

17.30.080 Best value selection procedures.

Except as otherwise provided, purchases and contracts for supplies, materials, or equipment of estimated value in the amount of two hundred fifty thousand dollars ($250,000.00) or more, but less than one million dollars ($1,000,000.00), may be made by the Executive Director, in the open market as follows:

(a) Minimum Number of Bids. Open market purchases shall be based on at least three bids unless the Executive Director determines that obtaining three bids is not feasible as a result of the lack of firms qualified to provide the required materials and supplies.

(b) Request for Bids. The Executive Director, in his or her discretion, may solicit bids by telephone request, written request to prospective vendors by mail, including electronic mail, and/or by notice posted on a public bulletin board in or near the office of the Stadium Authority.

(c) The Request for Bid. The request for bid made subject to this section shall describe the supplies, materials, or equipment desired in specific terms and how to obtain more detailed information, and shall state the time and place for submission and opening of bids; provided, however, the bid specifications shall ensure that more than one vendor could meet the bid requirements.

(d) Submission of Bids. Bids may be submitted to the Executive Director in writing or verbally. The award of the contract by the Executive Director shall be on the basis of best value. The Executive Director may reject any and all bids. The Executive Director shall keep a record of all open market orders and bids for a period of one year after the submission of bids or the placing of orders. Such record, while so kept, shall be open to public inspection.

(e) Evaluation of Bids. In the evaluation of bids under this section, the Executive Director may consider any of the following illustrative evaluation factors in determining the best value bid, but will take all necessary measures to ensure that the contracts are awarded fairly:

(1) Price, dollar value of procurement pricing information and quotations;

(2) Demonstrated ability to perform all requirements and delivery of the quantity of supplies, materials, and equipment within the time specified;

(3) Specific examples of similar past performance and demonstrated experience in providing the quality and quantity of supplies, materials, and equipment for projects of comparable size, scope and complexity;

(4) Evaluation of the ability to provide future maintenance and services, if applicable;

(5) Quality of supplies, materials and equipment to be provided under the contract; and

(6) Compliance or responsiveness of bid with bid specifications.

(f) Board Approval. All contracts or agreements to acquire supplies, materials, and equipment in the contract amount of two hundred fifty thousand dollars ($250,000.00) or more shall require the approval of the Stadium Authority Board. The Executive Director may enter into a contract or agreement with a contract amount of two hundred fifty thousand dollars ($250,000.00) or more, but less than one million dollars ($1,000,000.00) pursuant to this section; provided, that the contract or agreement notes that Stadium Authority Board ratification must be later secured. (Ord. 1900 § 1, 11-27-12).

17.30.090 Formal bidding procedure.

Except as otherwise provided, purchases and contracts for supplies, materials, or equipment of one million dollars ($1,000,000.00) or more shall be by written contract with the lowest responsible bidder, pursuant to the following procedures:

(a) Notices Inviting Bids. Notices inviting sealed bids shall include a general description of the articles to be purchased, where bid blanks and specifications may be secured, and the time and place for opening bids.

(1) Published Notices. Notices inviting bids shall be published and/or posted at least ten days before the date of opening the bids. Such notices shall be published at least once in a newspaper of general circulation, and/or notices shall be posted in at least three public places in the City that have been designated as places for posting public notices. Whichever notice is given shall be determined by the Executive Director as being in the best interest of the City to attract bids.

(2) Bidders List. The Executive Director shall also solicit sealed bids from all responsible prospective suppliers. It shall be within the discretion of the Executive Director to add, delete, reject, and change the bidders list so as to maintain a current list of suppliers who are capable of responsible and efficient service to the Stadium Authority.

(b) Bidder’s Security. When deemed necessary by the Executive Director, bidder’s security may be prescribed in the public notices inviting bids. Bidders shall be entitled to the return of their bid securities; provided, however, that a successful bidder shall forfeit the bid security upon refusal or failure to execute the contract within ten days after the notice of award of the contract has been mailed unless the Stadium Authority is responsible for the delay. On refusal or failure of the successful bidder to execute the contract, the contract may be awarded to the next lowest responsible bidder. If the contract is awarded to the next lowest responsible bidder, the amount of the lowest bidder’s security shall be applied by the Stadium Authority to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder.

(c) Bid Opening Procedure. Sealed written bids shall be submitted to the Executive Director and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the public notices. A tabulation of all bids shall be open for public inspection during regular business hours for a period of not less than thirty (30) calendar days after the bid opening.

(d) Rejection of Bids. The Executive Director may reject any and all bids presented and re-advertise for bids.

(e) Award of Contracts. All contracts shall be awarded by the Executive Director to the lowest responsible bidder except as otherwise provided in these procedures.

(f) Tie Bids. If two or more bids received are for the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay of re-advertising for bids, the successful bidder may be determined by the casting of lots with the bidders in public at the time designated by the Executive Director.

(g) Performance Bonds. The Executive Director shall have the authority to require a performance bond in such amounts as the Executive Director shall find reasonably necessary to protect the best interests of the Stadium Authority before entering into a contract. If the Executive Director requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids.

(h) Board Approval. All contracts or agreements to acquire supplies, materials, and equipment with a contract amount of two hundred fifty thousand dollars ($250,000.00) or more shall require the approval of the Stadium Authority Board. The Executive Director may enter into a contract or agreement with a contract amount of two hundred fifty thousand dollars ($250,000.00) or more, but less than one million dollars ($1,000,000.00), pursuant to this section; provided, that the contract or agreement notes that Stadium Authority Board ratification must be later secured. (Ord. 1900 § 1, 11-27-12).

17.30.100 Action by Stadium Authority Board.

The Executive Director shall conduct all purchasing procedures for acquisition of supplies, materials, and equipment for users as authorized by the Stadium Authority by adoption of the annual budget. No award of contract shall be made for a cost in excess of the authorized budget amount through the Executive Director without first obtaining approval of the Stadium Authority Board for a budget amendment by addition, cancellation, or transfer; provided, however, that the foregoing shall not preclude award of multi-year contracts covering years for which a budget has not yet been adopted so long as the contract is within the limits of a budget approved by the Stadium Authority Board for the year in which the contract is awarded and subsequent years are conditioned on approval of the appropriate year’s budget. (Ord. 1900 § 1, 11-27-12).

17.30.110 Exclusion.

These policies and procedures do not apply to the following:

(a) Contracts with or procurements from a State agency, political subdivision of the State, or any agency or political subdivision or a local, State or Federal government;

(b) Acquisition of real property or permanent or temporary interest in real estate;

(c) Disposal of real or personal property;

(d) Contracts for professional services in connection with threatened or pending litigation;

(e) Agreements with professional sports teams and with lessees and licenses for events in the Stadium, such as concerts, conferences, and sporting events in the Stadium; and

(f) Contracts for materials and supplies required during construction of the Stadium Project related to the construction of the Stadium Project. (Ord. 1900 § 1, 11-27-12).

17.30.120 Service contracts – Signature authority.

The Executive Director shall have the authority to execute contracts with third parties for services provided to the Stadium Authority, which shall be exempt from the competitive process, as follows:

(a) The Executive Director, or designee, is authorized to purchase professional, nonprofessional and personal services required by the Stadium Authority and to execute contracts for such services on behalf of the Stadium Authority in contract amounts up to and including two hundred fifty thousand dollars ($250,000.00) per contract, subject to approved budgetary amount, so long as such persons are specially trained and experienced and competent to perform the special services required. Contracts with a contract amount above this dollar limit shall be referred to the Stadium Authority Board for approval;

(b) The Executive Director is authorized to delegate all or a portion of the authority to execute such service contracts to specified Stadium Authority employees at her/his discretion. Such delegation of authority shall be made in writing;

(c) Such service contracts shall be generally consistent with forms of contracts approved by the Stadium Authority Counsel’s office or shall be subject to the final review and approval of the Stadium Authority Counsel’s office for form and content;

(d) The maximum amount of the value of the service contracts which the Executive Director or designee is authorized to execute shall be adjusted as needed by resolution of the Stadium Authority Board, with amounts rounded to the nearest five thousand dollar ($5,000.00) increment;

(e) Notwithstanding anything to the contrary, solicitations for professional services of private architectural, landscape architectural, engineering, environmental, land surveying, or construction project management firms shall be on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required. (Ord. 1900 § 1, 11-27-12).

17.30.130 Public works.

(a) Stadium Project. Government Code Section 6532 authorizes the Stadium Authority to award a contract for the development of the Stadium Project to a qualified design builder under specified conditions. As a requirement of Government Code Section 6532, any subcontracts awarded by the design builder to be funded with either Redevelopment Agency funds or Community Facility District funds must be awarded to the lowest responsible bidder in accordance with procedures consistent with the City Charter. All other subcontracts awarded by the design-builder may be awarded on a best value basis consistent with the Subcontractor Selection and Procurement Plan adopted by the Stadium Authority.

(b) Other Public Works. For all other expenditures required for a public project, but which are not associated with the Stadium Project, the Stadium Authority shall comply with the requirements of Public Contract Code Section 20162 and all applicable City Charter provisions. (Ord. 1900 § 1, 11-27-12).

17.30.140 Bid contest procedures.

(a) A protest based on alleged improprieties in the application of this chapter shall be submitted to the Executive Director, not later than seven days after the basis for the protest is known or should have been known. The Executive Director’s responsibilities under this section may not be delegated to a contractor. An untimely protest shall be denied on that basis.

(b) The written protest must include all of the following:

(1) Name and address of the protestor;

(2) Identification of the procurement or contract at issue;

(3) A detailed statement of the reasons for the protest along with supporting exhibits, evidence, or documents to substantiate the reasons for the protest.

(c) The Executive Director shall review each protest filed and consider the protest and shall issue a written determination and finding regarding the protest and shall forward to the protestor, by certified mail, return receipt requested, or by any other method deemed suitable which provides evidence of receipt.

(d) The protestor may appeal the determination and finding to the Stadium Authority Board within seven days after receipt of said written determination and finding from the Executive Director. The appeal must be in writing and must include a copy of the original protest application and the determination and finding letter, along with a written explanation of the grounds for disagreement with the determination and finding letter. If the protestor desires a hearing on the protest, a request for a hearing must be made, in writing, at the time of the appeal. An untimely appeal shall be denied on that basis. If a protestor fails to appeal the determination and finding letter, said letter will constitute the final decision of the Stadium Authority.

(e) If a timely request for a hearing on a protest appeal is received, the Stadium Authority Board shall conduct a hearing at its next regularly scheduled meeting but in no event later than twenty-one (21) days after the receipt of the hearing request.

(f) The Stadium Authority Board shall issue a decision on the protest, which shall represent the final decision of the Stadium Authority, subject to judicial review.

(g) When a protest has been timely filed, the Stadium Authority shall not award the contract subject of the protest until there is a final Stadium Authority decision on the protest. (Ord. 1900 § 1, 11-27-12).

17.30.150 Enforcement and remedies.

(a) If the Executive Director (but not a contractor to whom the Executive Director has delegated authority) or Stadium Authority Board determines that a procurement violates these policies and procedures, the Stadium Authority may determine that the procurement contract is voidable, and not automatically voided, if:

(1) All parties acted in good faith;

(2) Ratification of the contract would not undermine the intent and purpose of these procurement policies; and

(3) The violation(s) is insignificant or did not prevent substantial compliance with these procurement policies.

(b) If the Executive Director (but not a contractor to whom the Executive Director has delegated authority) or the Stadium Authority Board determines that a procurement violates these policies and procedures but satisfies the conditions in subsections (a)(1) through (3) of this section, then the Executive Director (but not a contractor to whom the Executive Director has delegated authority) or the Stadium Authority Board may choose to ratify the contract if the contract is in the best interest of the Stadium Authority, or alternatively choose to void the contract.

(c) If the Executive Director or Stadium Authority Board determines that a procurement violates these policies and procedures and is voidable under subsection (a) of this section, and that the contractor has acted in violation of these policies and procedures, the Executive Director or Stadium Authority Board may void the contract or ratify the contract without prejudice to the Stadium Authority’s right to appropriate legal action. (Ord. 1900 § 1, 11-27-12).

17.30.160 Information collection and reporting.

(a) The Executive Director will create and maintain a bidders list, consisting of information about all firms that bid or quote on its contracts. The bidders list will include the name, address, and annual gross receipts of firms. The Stadium Authority shall provide a procedure requiring that bidders provide all requested information in their submission or upon the letting of a contract.

(b) The Executive Director shall prepare, and submit to the Stadium Authority Board, a report at the end of the Stadium Authority’s fiscal year summarizing the total number of contracts let by the Stadium Authority, the number of contracts approved under an exception, the number of contracts approved under best value procedures and the number of contracts approved under formal bidding procedures, and to the extent possible listing information related to application and outreach efforts conducted to implement the DBE program. (Ord. 1900 § 1, 11-27-12).

17.30.170 Conflict of interest.

(a) The Stadium Authority and Stadium Authority staff and agents are subject to the State ethics law and its provisions dealing with conflict of interest, including but not limited to Government Code Sections 81000 et seq. and shall be subject to the requirements of the City’s Code of Ethics and Values adopted by the City Council in March 2000 and modified by the City Council in August 2001.

(b) The Stadium Authority and Stadium Authority staff may not accept or receive, directly or indirectly, any money, property, or other benefit from any person or entity doing business with, or interested in doing business with, the Stadium Authority. The Stadium Authority, the Executive Director, and Stadium Authority staff may not have any financial interest in any firm or company doing business with the Stadium Authority, or in any contract to which the Stadium Authority is a party. Any exception to this policy requires the approval of the Stadium Authority Board. (Ord. 1900 § 1, 11-27-12).

17.30.180 Amendments.

The policy may be amended by the City Council from time to time by a duly adopted resolution. (Ord. 1900 § 1, 11-27-12).