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Home My WebLink About1995-06-27; City Council; 13216; ADOPTION OF ORDINANCE NO. NS-313- CALIFORNIA FALSE CLAIMS ACT PROVISIONSCI1m OF CARLSBAD - AGEW BILL ' /; &# 4 IAB # r3.arb. 1 TITLE: ADOPTION OF ORDINANCE NO. NS-313 - DEPT. MTG. 6/27/95 DEPT. CALIFORNIA FALSE CLAIMS ACT CLK PROVISIONS CITY 1 CITY I I I I RECOMMENDED ACTION: Adopt Ordinance No. NS-313, amending Title 3 of the Carlsba( provisions. Municipal Code to include the California raise Claims As1 ITEM EXPLANATION Ordinance No. NS-313 was introduced at the regular City Counci: meeting of June 20, 1995, The second reading allows Council tl adopt the ordinance which would then become effective in thirt: days. The City Clerk will have the ordinance published withi. fifteen days, if adopted. FISCAL IMPACT See Agenda Bill No. 13,202 on file with the City Clerk. EXHIBIT 1. Ordinance No. NS-313. Q 0 fL Itg 9 2 z 0 F 2 6 z 3 0 0 * 6. 1 2 3 4 5 6 7 a 9 10 11 12 am Yr Ea6 a08 ow2 iUC3 $035 cr,> PE - og <;$$ ki$ gv sw4 zwo OZJO =a%o 40-1 00 ~ 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 a 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, Califoj does ordain as fallows: SECTION 1: That Title 3, Chapter 3.32 of the Car Municipal Code is amended by the addition of section 3.32.0 read as follows: "3.32.025. Submittina False Claims: Monetarv Penalties. (a) Any contractor, subcontractor or consultan commits any of the following acts shall- be liable to the for three times the amount of damages which the City sus because of the act of that contractor, subcontracto consultant. A contractor, subcontractor or consultant commits any of the following acts shall also be liable tl City for the costs, including attorney's fees, of a civil a brought to recover any of those penalties or damages, and m liable to the City for a civil penalty of up to ten tho (10,000) dollars for each false claim: (1) Knowingly presents or causes to be pres to an officer or employee of the City a false claim or re for payment or approval; (2) Knowingly makes, uses, or causes to be or used a false record or statement to get a false claim pa approved by the City; (3) Conspires to defraud the City by gett false claim allowed or paid by the City; (4) Knowingly makes, uses, or causes to be or used a false record or statement to conceal, avoic decrease an obligation to pay or transmit money or proper the City; (5) Is a beneficiary of an inadve submission of a false claim to the City, subsequently disc the falsity of the claim, and fails to disclose the false to the City within a reasonable time after discovery o false claim. (b) This Section does not apply to any contro involving an amount of less than five hundred (500) dolla value. For purposes of the Subdivision, \controversy' mear one or more false claims submitted by the same contra subcontractor or consultant in violation of this Section. (c) Every contract performed at the expense o City of Carlsbad, or the costs of which are paid for o monies deposited in the treasury of said City, whether dir awarded or indirectly by or under subcontract, subpartner day labor, station work, piece work, or any other arrang whatsoever, shall contain a clause reciting the provisio L 1 2 3 4 5 6 7 8 9 10 11 12 a 3Wg !?$A Ow% <:os dU.a 3044 k''8 3 a 4- O:oL <>-ma 02'0 ""30 003 LOW 00 >JZ zwv) UOJ pz 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 l e a Subdivision (a) . (d) Liability under this Section shall be join1 several for any act committed by two or more persons. (e) For purposes of this Section, the 1 \contractor' and 'subcontractor' shall have the same definil as found in Section 4113 of the Public Contract Code. The 'consultant' shall be broadly defined to include any persc entity that provides services to the City. (f) For purposes of this Section, 'claim' inc: any request or demand for money, property, or services mac any employee, officer, or agent of the City, or to contractor, subcontractor, grantee, or other recipient, whc under contract or not, if any portion of the money, propert services requested or demanded issued from, or was provide' the City. (9) For purposes of this Section, 'knowingly' : that a contractor, subcontractor or consultant, with respe information, does any of the following: (1) Has actual knowledge of the informati' (2) Acts in deliberate ignorance of the tru falsity of the information; (3) Acts in reckless disregard of the tru falsity of the information. Proof of specific intent i: required and reliance on the claim by the City is alsc required. 'I SECTION 2: That Title 3, Chapter 3.32 of the Car Municipal Code is amended by the addition of section 3.32 .O read as follows: "3.32.026- Disqualification of Irresponsible Contractors: Effect of Disqualification, Any contract( consultant who fails to comply with the terms of its con with the City, or contractor, subcontractor or consultan violates any provision in Section 3.32.025, or who fai abide by any rules and/or regulations adopted pursuar Chapter 3.32, may be declared an irresponsible bidder b City Manager for the public work or improvement at issue. such determination, the contractor, subcontractor or consu (or any other entity with substantially the same offi directors, owners or principals) shall not be permitted t as a contractor, subcontractor or consultant on any public or improvement for the City of Carlsbad for a period of five years as determined by the City Manager. The contra any such person or entity may, at the option of the Manager, be canceled and in the event of such cancellatic recovery shall be had thereon by the contractor, subcontra or consultant. M SECTION' 3: That Title 3, Chapter 3.32 of the Car Municipal Code is amended by the addition of section 3.32.( read as follows: - 2 I 1 2 3 4 5 6 7 8 9 10 11 12 a> iiug &e& a08 ow2 20-35 9 * 9" "a%o =ILL, &'8 42 SL3j IA p% 0 024- 0 a04 00 13 14 15 16 17 18 19 20 27 22 23 24 25 26 27 28 , I e a "3.32.027 conduct Reuuired of ResDonsible Contractors. The covenant of good faith and fair dealir contained in every City contract, and contracl subcontractors and consultants shall at all times deal in faith with the City and shall submit claims, requests equitable adjustments, requests for change orders, request contract modifications or requests of any kind seeking incrc compensation on a City contract only upon a good faith, hc evaluation of the underlying circumstances and a good f8 honest calculation of the amount sought. Violation of Section subjects the contractor, subcontractor or consulta the penalties set forth in Chapter 3.32, incl disqualification. The act of knowingly submitting a f untrue or misleading claim, request for equitable adjust request for contract modification, request for change ord request of any kind seeking increased compensation is suffi of itself to subject the contractor, subcontractor or consu to the penalties stated in Chapter 3.32, regardless 01 City's reliance on, or response to the submission.11 SECTION 4: That Title 3, Chapter 3.32 of the Car Municipal Code is amended by the addition of section 3.32.C b read as follows: "3.32.028 Procedures for Disqualification of IrresDonsible Contractors. When charges are brought pursuz Sections 3.32.025, 3.32.026, or 3.32.027 of Chapter 3.32 contractor, subcontractor or consultant shall be given notj the charges and of all evidence supporting such charges. Contractor, subcontractor or consultant or its attorney shz entitled to offer rebuttal evidence and any other eviden support of its position. The City Manager shall condl hearing within 30 days after receipt of the notice b] contractor, subcontractor or consultant, where the charge all evidence shall be presented. In the alternative, the Manager may appoint a hearing officer to conduct such a he and make written findings of fact to be submitted to the may, in its discretion, appoint outside counsel to prosecut charges. A decision of the City Manager making a findin irresponsibility is final and effective ten calendar days the hearing unless within such ten-day period the contrz subcontractor or consultant 'files a written appeal with the Council. The written appeal shall specifically stat( reason( s) for the appeal and the manner in which the decis: the City Manager is in error. Fees for filing an appeal this section shall be established by resolution of the Council. The decision of the'City Manager shall be affirmed by thc Council unless the appellant shows by a preponderance c evidence that the decision of the City Manager is in erl Manager who shall render the final decision. The City Att 3 1. # Om $E& a08 owg 304s 9 82" a>m< 0220 ""50 00s LOCO jzv 00 sus Ci$q m> jU, JZ zum U0-l - 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 21 28 e inconsistent with State law. The appeal hearing shall be within thirty days after the date of filing the appeal. W: ten days following the conclusion of the hearing, the Council shall render its decision on the appeal. The dec: of the City Council is final. EFFECTIVE DATE: This ordinance shall be effel thirty days after its adoption; and the city clerk shall ce: the adoption of this ordinance and cause it to be publish least once in a newspaper of general circulation in the Ci Carlsbad within fifteen days after its adoption. INTRODUCED AND FIRST READ at a regular meeting a 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 JUN 1995, by the following vote, to wit: AYES: Council Members Lewis, Nygaard, Kulchin, Finnila, NOES: None ABSENT : None AP OVED AS TO FORM AND LEGALITY R /Ln. P7-s RONALD R. BALL, City Attorney c. 2 t*0f ATTEST: - ALETHA L. RAUTENKRANZ, City derk 1 4 I I