Sec. 43-27. Suspensions.
A. The City Manager may, in the public interest, suspend an actual or prospective contractor when it has been determined that immediate action is necessary to protect the City’s interest. In assessing the adequacy of the evidence, the City Manager shall consider how much information is available, how credible the information is given the circumstances, and whether or not important allegations have been independently corroborated. This assessment should include an examination of basic documents such as contracts, inspection reports, and correspondence. A suspended contractor and any of its affiliates will be prohibited from entering into any contracts with the City, any subcontracts thereunder, or any other contract related to a City project while the suspension is in effect. Suspension constitutes suspension of all divisions or other organizational elements of the contractor and its affiliates.
B. The City Manager may suspend a contractor and its affiliates from participating in a City procurement within the scope of this chapter:
1. Upon indictment or other adequate evidence of the commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public contract or subcontract.
2. Upon adequate evidence that the business practices of the contractor or its affiliates under or in connection with a City contract or a City project were unethical, fraudulent, discriminatory, or illegal.
3. Upon adequate evidence of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, delinquent transaction privilege tax of at least $1,000.00, other tax evasion or violation of Federal criminal tax laws, or receiving stolen property.
4. Significant overpayment under a City contract, a related subcontract or a contract for a City project and a failure to repay the City after reasonable notice of the overpayment.
5. A breach by or failure of a contractor or any of its affiliates to perform material terms of one or more contracts either with the City or related to a City project, after written demand by the City or other party.
C. The City Manager shall notify the actual or potential contractor of its suspension by written notice sent certified mail, return receipt requested. The notice will:
1. Advise the contractor that it has been suspended and identify the basis of the suspension with sufficient detail to place the contractor on notice without disclosing the City’s evidence;
2. State that the suspension is temporary pending the completion of an investigation and such legal proceedings as may ensue not to exceed 90 days; and
3. Explain that while suspended neither the contractor nor its affiliates may participate in a solicitation by or on behalf of the City or enter into a contract with the City or a related subcontract.
D. The contractor may respond in writing to the notice of suspension, include any relevant information to support its opposition to the suspension, and any information that creates a genuine issue of material fact.
E. The City Manager will review any such submissions, and where the contractor has submitted information that creates a genuine issue of material fact, the City Manager may in the City Manager’s sole discretion provide the contractor with the right to appear in a proceeding to sustain, modify, or terminate the suspension.
F. The term of any suspension under this chapter will be for a temporary period pending the completion of an investigation and any ensuing legal proceedings; provided, that no suspension shall continue for a period of more than 90 days without issuance of a notice of debarment or a release of the suspension. Failure of the City to act during such period shall result in a release of the suspension. (Ord. No. G-5953, 2014)