Bill Text: AZ SB1322 | 2011 | Fiftieth Legislature 1st Regular | Introduced
Bill Title: Cities; services; managed competition
Spectrum: Partisan Bill (Republican 1-0)
Status: (Vetoed) 2011-04-28 - Governor Vetoed [SB1322 Detail]
Download: Arizona-2011-SB1322-Introduced.html
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REFERENCE TITLE: cities; services; managed competition |
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State of Arizona Senate Fiftieth Legislature First Regular Session 2011
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SB 1322 |
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Introduced by Senator Antenori
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AN ACT
amending title 9, Arizona Revised Statutes, by adding chapter 9; relating to managed competition for city services.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 9, Arizona Revised Statutes, is amended by adding chapter 9, to read:
CHAPTER 9
MANAGED COMPETITION FOR CITY SERVICES
ARTICLE 1. GENERAL PROVISIONS
9-1001. Definitions
In this article, unless the context otherwise requires:
1. "Competitive service city" means a city with a population of more than five hundred thousand persons.
2. "Municipal services" means all services furnished directly or indirectly by a competitive service city for the benefit of the public or its residents, including all related internal management services, support services and administrative services.
9-1002. Competition mandate; municipal services; exemption
A. Notwithstanding any law to the contrary, no later than the end of the first fiscal year after the effective date of this chapter, every competitive service city shall furnish all municipal services with an anticipated or actual cost of fifty thousand or more dollars through a city department or an independent contractor by way of a service contract that has been entered into through open and competitive bidding. A competitive service city may enter into a service contract through open and competitive bidding for those municipal services that have an anticipated or actual cost of less than fifty thousand dollars.
B. Any state agency or political subdivision of this state, including a municipality, a department of a municipality, a special district or a quasi‑governmental body, may bid for a municipal service contract pursuant to this chapter but shall also comply with section 9‑1007. If a municipal service contract is awarded to an independent contractor pursuant to this chapter, a competitive service city shall not preclude or hinder its municipal employees from terminating their employment with the municipality to accept employment with the independent contractor unless a conflict of interest or corruption would result. The city manager of each competitive service city is responsible for administering and monitoring all municipal service contracts with independent contractors and city departments.
C. This chapter does not apply to municipal judges, police officers who are certified peace officers, municipal firefighters or 911 operators.
9-1003. Precompetition assessment
A. No later than three months before the end of the first fiscal year after the effective date of this chapter, and thereafter as determined by ordinance, the city manager of each competitive service city shall prepare a report prescribing an initial preliminary written statement of work for each municipal service to be put into open and competitive bidding and describing the services to be contracted, the anticipated contract price and the performance standards to be incorporated into those contracts. The city manager shall transmit this report to the city council, and the council shall consider the report within one day of its transmission. If not disapproved by a majority of the city council within one month after receiving the report, the preliminary statement of work is deemed adopted by the city as its final statement of work for each municipal service to be put into open and competitive bidding. The city council shall immediately commence with open and competitive bidding on the municipal services that are adopted.
B. The city council may disapprove of the preliminary statement of work but the disapproval is only valid if the city council proposes, by resolution, specific modifications of the statement of work in sufficient detail to guide the city manager in implementing an open and competitive bid. If such modifications are provided, the city manager shall incorporate the modifications proposed by resolution into a final statement of work, which will then be deemed adopted by the city. The city council shall immediately commence with open and competitive bidding on the municipal services that are adopted.
9-1004. Open and competitive bidding of services
No later than one month before the end of the first fiscal year after the effective date of this chapter, the city council, by ordinance, shall provide for standards and processes ensuring transparent, open and competitive bidding by independent contractors and city departments for contracts to furnish municipal services pursuant to this chapter, including provisions to guard against corruption and conflicts of interest.
9-1005. Minimum contract standards
A. The city manager of a competitive service city shall award contracts pursuant to this chapter to the bidder who is able to provide reasonable assurance of fulfilling the competitive service city's contract standards at the lowest cost to the city. No contract awarded pursuant to this chapter may have a term longer than four years before the related services must be offered again by the competitive service city through open and competitive bidding pursuant to this chapter. For purposes of this chapter, the competitive service city's contract standards shall specify desired, measurable performance outcomes from the contracted work, shall not override the managerial discretion of independent contractors in determining how best to fulfill those contract standards and shall not dictate the amount or composition of compensation to be paid by independent contractors to their employees or authorized subcontractors in meeting those performance outcomes.
B. The bids of any independent contractor providing services to competitive service cities shall meet the following minimum contract standards during the term of any service contract:
1. The independent contractor must be able to perform the contracted service and be ready, able and willing to furnish reasonable performance bonding or equivalent security to guarantee the performance.
2. The independent contractor must maintain an adequate level of liability insurance consistent with the city's risk management requirements.
3. The independent contractor must have appropriate safety policies and procedures in place to protect the public and its employees in providing the service.
4. The independent contractor must perform background checks on employees performing any service for which the competitive service city requires background checks of municipal employees.
5. The independent contractor must acknowledge that the competitive service city may rightfully terminate and rescind any contract awarded to the independent contractor in the event of any material breach of the contract.
9-1006. Transparency in bidding and performance
A. All bids, related communications and supporting materials submitted for consideration by competitive service cities are public records.
B. The city manager of each competitive service city shall perform annual performance audits for contracted services, the cost of which must be accounted for and incorporated into any bid. The city manager of each competitive service city shall seek an independent performance audit every five years to evaluate the accuracy and completeness of the municipality's performance audits. All performance audits are public records.
9-1007. Transparency in the cost of municipal employment
Any state agency or political subdivision of this state, including a municipality, a department of a municipality, a special district or a quasi‑governmental body, that bids on a municipal service contract must specifically disclose and incorporate budgeting for reasonably anticipated overtime to be paid to the bidder's employees, as well as the present value of anticipated retirement benefits to be paid to the bidder's employees that vest during the term of the related service contract based on the bidder's average employee attrition rate over the preceding five years.
9-1008. Override authority
No more than once per fiscal year, the city council, by ordinance that is approved by at least three-fourths of the city council and that is subject to referendum, may override open and competitive bidding for a specified single fiscal year if:
1. A public meeting of the city council is called to consider the subject matter of the proposed ordinance with at least sixty days' prior notice to the public. The public meeting shall be held between the hours of 7:00 p.m. and 9:00 p.m. on a weekday or between the hours of 11:00 a.m. and 3:00 p.m. on a weekend.
2. The proposed ordinance is voted on during that meeting after allowing for at least one hour of public comment that allows members of the public to speak in the order in which they have signed in to speak.
3. The notice of hearing includes a proposed ordinance containing specific findings as to which municipal services are to be excluded from open and competitive bidding for the specified fiscal year and why compliance with this chapter is not practicable.
9-1009. Taxpayer standing
Notwithstanding any law to the contrary, taxpayers residing in a competitive service city may bring a special action in any court of competent jurisdiction to enforce this chapter.
Sec. 2. Existing contracts
This act does not apply to existing vested contractual or intergovernmental agreements for the furnishing of municipal services that have been entered into before the effective date of this act. When the vested contractual or intergovernmental agreements expire, the agreements may only be continued if they are municipal services that are subject to this act and if they are continued or renegotiated pursuant to this act.
