Part 1 — PURPOSE

A.

This Chapter sets forth the procedures for debarring Contractors.

B.

Debarring a Contractor results in the Contractor being prohibited from doing business with the City for a period not to exceed five (5) years.

C.

This Chapter does not preclude the City from rejecting a Contractor for not being responsible based on the requirements of a specific procurement outside of the debarment process set forth in this Chapter.

(Ord. 30733.)

A.

Contracting with the City is an important municipal affair. The City's contracting process is for the benefit of the public, not Contractors.

B.

Awarding a Contract to a Contractor that engages in conduct that is a basis for debarment under this Chapter compromises the integrity of the City's contracting process. Debarment protects the integrity of the City's contracting process and helps ensure the proper expenditure of public funds.

(Ord. 30733.)

This Chapter sets forth the due process required before the City can preclude the Contractor from participating in the City's contracting process.

(Ord. 30733.)

Part 2 - DEFINITIONS

The definitions in this Part and in Section 1.04.020 of the San José Municipal Code govern the application and interpretation of this Chapter.

(Ord. 30733.)

A.

"Affiliate" means:

Any Person that, directly or indirectly, controls the Contractor or has the power to control the Contractor,

Any Person that the Contractor, directly or indirectly, controls or has the power to control, or

Any Person that is, directly or indirectly, controlled by or can be controlled by another Person that also, directly or indirectly, controls the Contractor.

B.

For purposes of this definition, indicia of control include, without limitation, the following:

Interlocking management or ownership,

Identity of interests among family members,

Shared facilities and equipment, or

Common use of employees.

C.

For any business entity formed after the issuance of a notice of proposed Debarment, indicia of control also includes, without limitation, the new entity having the same or similar management, ownership or principal employees as the Contractor.

(Ord. 30733.)

"Contract" means either of the following.

A.

Any City contract for goods, services, construction, labor, supplies, materials or some other benefit to the City, or for a grant or the use of public funds. It includes, without limitation, grant agreements, purchase orders, consultant agreements, solution agreements, services agreements, maintenance agreements, construction agreements, service orders, work orders, and task orders.

B.

Any subcontract entered into in furtherance of a contract described in Paragraph A of this Section 4.10.125.

(Ord. 30733.)

A.

"Contractor" means any Person that responds to, or reasonably could be expected to respond to, the City's procurement of a Contract, or that enters into a Contract.

B.

"Contractor" includes a subcontractor.

(Ord. 30733.)

"Day" means a calendar day unless otherwise specified.

(Ord. 30733.)

"Debarment" is the City's administrative determination that a Contractor is disqualified for a specified length of time from participating in the procurement of a Contract, entering a Contract, or otherwise doing business with the City.

"Debarring Official" means a City official authorized to initiate and pursue an administrative Debarment proceeding on the City's behalf. Each of the following City officials is a Debarring Official:

A.

The City Manager as to all Contracts,

B.

A City department head as to Contracts the department head is authorized to award or execute, or is responsible for administering and managing, and

C.

A City Council appointee as to Contracts the appointee is authorized to award or execute, or is responsible for administering and managing.