3.05.095 Debarment – Suspension.
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A. Pursuant to the City Charter and this chapter, the city attempts only to solicit offers from, award contracts to, and consent to subcontracts with responsible contractors. In the event that an illegal, improper, or unethical practice has occurred, debarment and suspension are discretionary actions that are appropriate means to effectuate the city’s goal.
B. Vendors, contractors, subcontractors, or principals (contractor) of a business that have been debarred or suspended by the city are excluded from entering contracts with the city, and the city shall not solicit offers from, award contracts to, or consent to subcontracts with debarred or suspended contractors and the principals involved; provided, however, the director or designate, as applicable, may waive this requirement if it is determined, in consultation with the city attorney, that there is a compelling reason for such action, and the city manager is informed of such action.
C. Causes for debarment or suspension. A vendor, contractor, subcontractor, or principal of a business (collectively “contractor”) may be debarred or suspended for any of the following reasons:
1. The commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public contract or subcontract;
2. The commission of embezzlement, theft, forgery, bribery, falsification of records, perjury, or receiving stolen property;
3. The commission of a serious offense that indicates a lack of business integrity or business honesty that may seriously affect the present responsibility of a contractor; or
4. The violation of the terms of any public contract or subcontract so as to result in serious and direct consequences for the public entity letting the contract, including, but not limited to, a history of a failure to perform or unsatisfactory performance of, one or more contracts.
D. Investigation and notice of intent to debar or suspend. The director or designate may initiate an investigation and, if warranted, and after consultation with the city attorney and notice to the city manager, provide notice to a contractor of the city’s intent to debar or suspend said person and/or entity from bidding on and contracting with the city for a specified period. The notice may specify corrective actions or conditions for lifting the suspension or debarment. The notice shall provide that the debarment or suspension becomes effective within 10 business days unless the person or entity appeals said action to a hearing examiner appointed pursuant to Chapter 2.51 VMC. The director or designate is authorized and directed to promulgate rules consistent with this section for the purpose of carrying out the provisions of this chapter.
E. Filing an appeal. An appeal from a notice to debar or suspend shall be in writing, signed by the person appealing, and shall be filed with the director or designate no more than 10 business days from the date the notice to debar or suspend is served personally on the contractor or after the city deposits the notice in the U.S. mail addressed to the contractor. The written appeal shall state the name and address of the contractor and shall list grounds for the appeal, including any alleged error of fact or law in the notice of intent to debar or suspend. Failure to appeal constitutes a waiver of all right to an administrative hearing and determination of the debarment or suspension.
F. Hearing procedures. The prehearing procedures of VMC 22.03.030 shall apply to debarment and suspension proceedings except those of VMC 22.03.030(A)(3) specific to nuisance vehicles. The hearing procedures of VMC 22.03.040 shall govern hearings regarding debarment and suspension except those of VMC 22.03.040(B) pertaining to nuisance vehicles and those of VMC 22.03.040(C) pertaining to burden of proof.
G. Burden of proof. The city has the burden of proof in appeal hearings. The city must prove by a preponderance of credible evidence that the contractor has committed any act(s) set forth in subsection C of this section.
H. Period of debarment or suspension. Debarment shall be for a period commensurate with the gravity of the causes therefor; provided, that in no instance shall debarment extend for a period longer than five years unless the contractor has failed to satisfy any condition of debarment or implement any required corrective action. Suspension shall be for a temporary period commensurate with the gravity of the causes therefor; provided, that in no instance shall a suspension extend for a period longer than 12 months unless the contractor has failed to satisfy any condition of suspension or implement any required corrective action.
I. Court review. Court review of the decisions of the hearing examiner shall be sought within 30 days by appropriate legal action filed in the Clark County Superior Court. (Ord. M-4417 § 11, 2023; Ord. M-4173 § 10, 2016; Ord. M-4018 § 5, 2012; Ord. M-3960 § 8, 2010)