1. If the city engineer determines that cause exists to disqualify a contractor or subcontractor from being awarded a contract for a public improvement construction or repair projects for any of the reasons set for in section 4.80.010 of this chapter and further determines to recommend disqualification to the city council, the city engineer shall so notify the affected contractor or subcontractor. The notice shall set forth the reasons supporting disqualification and the proposed period for disqualification and shall be sent to the contractor or subcontractor by fax or regular mail or by personal delivery.  The city engineer shall forward his recommendation to the city council at the time the action to award the contract comes before the city council.

    2. Upon written request of the contractor or subcontractor filed within three days of receipt of the notice provided in subsection (1) of this section, the city manager shall schedule a hearing at which the contractor or subcontractor may present evidence or argument why he or she should not be disqualified. Such hearing shall be scheduled and held within three days of receipt of request therefore.  Award of the contract shall be withheld pending the conclusion of the appeal process.  The city manager's recommendation shall be issued within 30 days of the conclusion of the hearing and shall be faxed, mailed or personally delivered to all parties participating in the hearing.   If the city manager's recommendation is to disqualify the contractor or subcontractor, the city manager shall set out therein the recommended period of disqualification, not to exceed three years, and shall forward a copy thereof to the city council for consideration at the next regular or special council meeting.

    3.  The city council shall act upon the city engineer's recommendation, or in the case of an appeal, the city manager's recommendation, to disqualify a contractor or subcontractor at the next regularly scheduled council meeting or such other time as the council shall specify.  The period of disqualification shall commence upon the council action accepting the city engineer's recommendation or the city manager's recommendation to disqualify.

    4. If, during the period of disqualification, the contractor or subcontractor is the low bidder on a city project, the city engineer shall make his recommendation to the city council to deny award of the contract to the contractor or subcontractor on that particular project.  The contractor or subcontractor shall not be entitled to another hearing before the city manager unless new information has come to the city manager's attention that should be considered in determining the correctness of the city engineer's recommendation to the city council.  The council may award the contract to the disqualified contractor or subcontractor for good cause shown. (Ord. 2006-0729)