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Home My WebLink About1995-06-27; City Council; NS-313; CMC 3.32 add - California False Claims Act...am $95 &ZW 4n8 iUU ow2 $059 et5n: >JZ 9 On? 9 qi S&%Z Psi cz5 OZJ - ““5n d0J 50 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 I 0 0 ORDINANCE NO. NS-313 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AMENDING TITLE 3, CHAPTER 3.32 OF THE CARLSBAD MUNICIPAL CODE BY THE ADDITION OF VARIOUS SECTIONS TO INCLUDE THE CALIFORNIA FALSE CLAIMS ACT PROVISIONS. The City Council of the City of Carlsbad, Califor does ordain as follows: SECTION 1: That Title 3, Chapter 3.32 of the Carl: Municipal Code is amended by the addition of section 3.32.02 read as follows: “3.32.025. Submittina False Claims: Monetary Penalties. (a) Any contractor, subcontractor or consultant commits any of the following acts shall be liable to the ( for three times the amount of damages which the City sust; because of the act of that contractor, subcontractor consultant. A contractor, subcontractor or consultant commits any of the following acts shall also be liable to City for the costs, including attorney‘s fees, of a civil ac- brought to recover any of those penalties or damages,, and ma] liable to the City for a civil penalty of up to ten thous (10,000) dollars for each false claim: (1) Knowingly presents or causes to be preser to an officer or employee of the City a false claim or reql for payment or approval; (2) Knowingly makes, uses, or causes to be I or used a false record or statement to get a false claim paic approved by the City; (3) Conspires to defraud the City by getti] false claim allowed or paid by the City; (4) Knowingly makes, uses, or causes to be I or used a false record or statement to conceal, avoid, decrease an obligation to pay or transmit money or propert! the City; (5) Is a beneficiary of an inadveri submission of a false claim to the city, subsequently discol. the falsity of the claim, and fails to disclose the false cl to the City within a reasonable time after discovery of false claim. (b) This Section does not apply to any controve involving an amount of less than five hundred (500) dollars value. For purposes of the Subdivision, \controversy’ means one or more false claims submitted by the same contract subcontractor or consultant in violation of this Section. City of Carlsbad, or the costs of which are paid for out monies deposited in the treasury of said City, whether direc awarded or indirectly by or under subcontract, subpartnersk day labor, station work, piece work, or any other arrangen whatsoever, shall contain a clause reciting the provisions (c) Every contract performed at the expense of Dm &=W an8 iU, QUI% a035 m E--> $9: .5:AE 2kga OZJO ""$0 003 Lam aoA E% GO 9 Qnt! 8 ai 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ll e e Subdivision (a) e (d) Liability under this Section shall be joint several for any act committed by two or more persons. (e) For purposes of this Section, the t 'contractor' and 'subcontractor' shall have the same definit as found in Section 4113 of the Public Contract Code. The 'consultant' shall be broadly defined to include any perso: entity that provides services to the City. (f) For purposes of this Section, 'claim' incl any request or demand for money, property, or services mad any employee, officer, or agent of the City, or to contractor, subcontractor, grantee, or other recipient, whe under contract or not, if any portion of the money, property services requested or demanded issued from, or was provided the City. (9) For purposes of this Section, 'knowingly' m that a contractor, subcontractor or consultant, with respec. information, does any of the following: (1) Has actual knowledge of the informatiol (2) Acts in deliberate ignorance of the trut (3) Acts in reckless disregard of the trutl falsity of the information; falsity of the information. Proof of specific intent is required and reliance on the claim by the City is also required. I# SECTION 2: That Title 3, Chapter 3.32 of the Carl: Municipal Code is amended by the addition of section 3.32.02 read as follows: "3.32.026. Disaualification of Irresponsible Contractors; Effect of Disqualification. Any contractor consultant who fails to comply with the terms of its contl with the City, or contractor, subcontractor or consultant violates any provision in Section 3.32.025, or who fails abide by any rules and/or regulations adopted pursuant Chapter 3.32, may be declared an irresponsible bidder by City Manager for the public work or improvement at issue. T such determination, the contractor, subcontractor or consult (or any other entity with substantially the same officc directors, owners or principals) shall not be permitted to as a contractor, subcontractor or consultant on any public T, or improvement for the City of Carlsbad for a period of uy five years as determined by the City Manager. The contract any such person or entity may, at the option of the c Manager, be canceled and in the event of such cancellation, recovery shall be had thereon by the contractor, subcontract or consultant. W SECTION 3:. That Title 3, Chapter 3.32 of the Carls Municipal Code is amended by the addition of section 3.32.02' 1 read as follows: 2 * .I1 0 e 1 I1 1 2 3 4 5 6 7 8 9 10 n13.32.027 Conduct Remired of Responsible Contractors. The covenant of good faith and fair dealin contained in every City contract, and contract subcontractors and consultants shall at all times deal in faith with the City and shall submit claims, requests equitable adjustments, requests for change orders, requests contract modifications or requests of any kind seeking incre compensation on a City contract only upon a good faith, ho evaluation of the underlying circumstances and a good fa honest calculation of the amount sought. Violation of Section subjects the contractor, subcontractor or consultar the penalties set forth in Chapter 3.32, inclu disqualification. The act of knowingly submitting a fa untrue or misleading claim, request for equitable adjustm request for contract modification, request for change orde request of any kind seeking increased compensation is suffic of itself to subject the contractor, subcontractor or consul to the penalties stated in Chapter 3.32, regardless of City's reliance on, or response to the submission.'' 11 SECTION 4: That Title 3, Chapter 3.32 of the Carl - 12 Municipal Code is amended by the addition of section 3.32.02 m> read as follows: <.ox w ,$zcb 1311 dU, c'"J$j m>,z ot5a: gynB 15 a:u4n co33 14 p22 cii c$J% 17 oZA? 16 0 cod 0" - 18 19 20 21 ll 22 23 24 25 26 27 28 Il3.32.028 Procedures for Disqualification of Irresponsible Contractors. When charges are brought pursuan Sections 3.32.025, 3.32.026, or 3.32.027 of Chapter 3.32, contractor, subcontractor or consultant shall be given notic the charges and of all evidence supporting such charges. Contractor, subcontractor or consultant or its attorney shal entitled to offer rebuttal evidence and any other evidencc support of its position. The City Manager shall conduc hearing within 30 days after receipt of the notice by contractor, subcontractor or consultant, where the charges all evidence shall be presented. In the alternative, the ( Manager may appoint a hearing officer to conduct such a heal and make written findings of fact to be submitted to the ( Manager who shall render the final decision. The City Atto] may, in its discretion, appoint outside counsel to prosecute charges. A decision of the City Manager making a finding irresponsibility is final and effective ten calendar days af the hearing unless within such ten-day period the contract subcontractor or consultant files a written appeal with the C Council. The written appeal shall specifically state reason(s) for the appeal and the manner in which the decisior the City Manager is in error. Fees for filing an appeal ur this section shall be established by resolution of the C Council. The decision of the City Manager shall be affirmed by the C Council unless the appellant shows by a preponderance of evidence that the decision of the City Manager is in error 3 d A 0 mu? am m> kzcb <DO, jU, 0Ulg <Os$ mg22 d->o 9 "nu I <- s;m,a OZJO aaqm Eoos czs <=-I - 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 0 0 inconsistent with State law. The appeal hearing shall be within thirty days after the date of filing the appeal. Wi ten days following the conclusion of the hearing, the Council shall render its decision on the appeal. The deci of the City Council is final. EFFECTIVE DATE: This ordinance shall be effec thirty days after its adoption; and the city clerk shall cer the adoption of this ordinance and cause it to be publishe least once in a newspaper of general circulation in the Cit Carlsbad within fifteen days after its adoption. INTRODUCED AND FIRST READ at a regular meeting of Carlsbad City Council on the 20th day of JUNE , I! and thereafter PASSED AND ADOPTED at a regular meeting of the ( Council of the City of Carlsbad on the 27th day of JUNE 1995, by the following vote, to wit: AYES: Council Members Lewis, Nygaard, Kulchin, Finnila, H NOES: None ABSENT : None AP OVED AS TO FORM AND LEGALITY 7-f I& Q. be. RONALD R. BALL, City Attorney 6. r?*Cr'. CLAUDE A. LEWIS, Mayor ATTEST : - ALETKA L. RAUTENKRANZ, City derk , ~ 4