Vetoed by Governor Jan Brewer

Vote Smart's Synopsis:

Vote to pass a bill that manages competition for municipal city services.

Highlights:

• comRequires every city with a population of more than 500,000 to furnish all municipal services with an anticipated or actual cost of $75,000 or more through a city department or an independent contractor by way of a service contract that has been entered into through open and competitive bidding (Sec. 9-1002).

• Authorizes municipal employees to terminate their employment with a municipality to accept employment with an independent contract in the case that a municipal service contract is awarded to the independent contractor, unless a conflict of interest or corruption would result (Sec. 9.1002).

• Establishes the following minimum contract standards for the bids of any public or private contractors providing services to competitive service cities (Sec. 9.1005, 9.1007):
• all bidders must be able to provide reasonable performance and payment bonds, parent company guarantees, letters of credit or other acceptable form of security or a combination of any of these securities, the penal sum or amount of which may be less than 100 percent of the value of the contract involved based on the competitive service city's determination, made on a facility-by-facility basis, of what is required to adequately protect the competitive service city;
• all bidders must maintain an adequate level of liability insurance consistent with the city's risk management requirements; -the independent contractor must have appropriate safety policies and procedures in place;
• the independent contractor must perform background checks on employees performing any service for which the competitive service city requires background checks of municipal employees;
• the bid 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 contract; and
• 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.

• Authorizes taxpayers residing in a competitive service city to bring a special action in any court to enforce this law (Sec. 9.1008).

Full Bill Text