Section 1107. – Contracts for public works.
Every project involving an expenditure of public monies of more than fifteen thousand dollars ($15,000) appropriately indexed to 1978 dollars for the construction or improvement of public buildings, works, drains, sewers, utilities, parts, playgrounds, and streets (exclusive of projects for resurfacing, maintenance and repair of streets) shall be let by contract to the lowest responsible bidder after notice by publication in the official newspaper by one or more insertions, the first of which shall be at least seven days before the time for opening bids.
All bids shall be accompanied by either a certified or cashier’s check, or a bidder’s bond executed by a corporate surety authorized to engage in such business in California, made payable to the city. Such security shall be in an amount not less than that specified in the notice inviting bids or in the specifications referred to therein, or if no amount be so specified then in an amount not less than ten percent of the aggregate amount of the bid. If the successful bidder neglects or refuses to enter into the contract within the time specified in the notice inviting bids or specifications referred to therein, the amount of the bidder’s security shall be declared forfeited to the city and shall be collected and paid into its general fund and all bonds so forfeited shall be prosecuted and the amount thereof collected and paid into such fund.
The council may reject any and all bids presented and may readvertise in its discretion. The council, after rejecting bids, or if no bids are received, may declare and determine that, in its opinion, based on estimates approved by the city manager, the work in question may be performed better or more economically by the city with its own employees and after the adoption of a resolution to this effect by at least five affirmative votes of the council may proceed to have such work done in the manner stated, without further observance of the provisions of this section. Such contracts likewise may be let without advertising for bids, if such work shall be deemed by the council to be of urgent necessity for the preservation of life, health or property and shall be authorized by resolution passed by at least five affirmative votes of the council and containing a declaration of the facts constituting such urgency.
Noting in this section shall be construed to apply to the acquisition or purchase of electricity, electric power or electric energy by the city for any use or purpose.
(As amended April 9, 1974; June 3, 1980.)
As an alternate procedure to subsection (a) above, Council may, by ordinance, establish an alternate bidding procedure for public works contracts where the amount does not exceed the limit for the alternate bidding procedures for general law cities as set forth in the California Public Contract Code at Section 22034 as amended from time to time.
(As amended April 9, 1974; June 3, 1980; November 3, 1998.)
Municipal Code SEC. 2.79. – Bidding—Formal process.
When the estimated cost of individual purchases of supplies, materials, equipment and certain services, and the estimated return from all individual sales of property, real or personal, exceed the contracts for public works bid limit (Charter Section 1107), the following formal bidding procedures shall be followed:
Notice inviting sealed bids. Notices inviting sealed bids shall be prepared and shall include a general description (“specifications”) of the supplies, materials, equipment or services to be purchased or sold, shall state where bid forms and specifications may be secured and the time and place for opening bids.
Publication of notice. The notice inviting sealed bids shall be published at least seven (7) days before the date of opening of bids. Notice shall be published at least once in an official newspaper of general circulation in the city or, as an alternative method of publication, it shall be posted in at least three (3) public places in the city that have been designated by ordinances as the places for posting public notices. At the discretion of the purchasing agent, bid invitations may be transmitted electronically to appropriate vendors.
Bidders’ list. The purchasing agent shall solicit bids from all responsible prospective suppliers who have requested their names to be added to a bidders’ list, which the purchasing agent shall maintain, by sending them such notice as will acquaint them with the proposed purchase or sale. In any case, invitations sent to the vendors on the bidders’ list shall be limited to commodities that are similar in character to the commodities ordinarily available from proposed vendor to which the invitations are sent.
Bidder’s security. When it is deemed necessary by the purchasing agent, bidder’s security may be prescribed in the public notices inviting bids. When required, security shall be in the following form: either a certified or cashier’s check or a bidder’s bond executed by a corporate surety authorized to engage in such business in the state, made payable to the city. Such security shall be in an amount not less than that specified in the notice inviting bids or in the specifications referred to therein or, if no amount is specified by the notice inviting bids, then in an amount not less than ten (10) percent of the aggregate amount of the bid. Bidders shall be entitled to return of their bid security. A successful bidder shall forfeit any surety required by the purchasing agent upon failure on his part to enter into a contract within fifteen (15) days after the award of the contract has been mailed.
Bid opening procedure. Sealed bids shall be submitted to the purchasing agent and shall be identified in accordance with instructions to bidders. Bids shall be opened in public at the time and place stated in the public notices. When no member of the public is in attendance at bid opening, at least one (1) city employee, in addition to the city employee opening the bids, will be present. A tabulation of all bids received shall be open for public inspection.
Rejection of bids. At his/her discretion, the city manager or his/her designee may reject any and all bids presented and readvertise for bids; or he/she may waive any informalities or minor irregularities in a bid.
Award of contract. Contracts shall be awarded by the city manager or his/her designee to the lowest responsive and responsible bidder on purchases and the highest responsible bidder on sales, except as otherwise provided herein. Should the successful bidder refuse or fail to enter into an agreement with the city, the city manager or his/her designee may execute the contract with the next lowest responsive and responsible bidder.
If two (2) or more bids are received for the same total amount, unit price, quality and service being equal, the contract shall be awarded to the lowest local bidder in the case of purchases and highest local bidder in the case of sales;
Where no local bidder is involved, the purchasing agent shall award the contract to one (1) of the bidders by drawing lots in public.
Performance bonds. The purchasing agent shall have the authority to require a performance bond before entering a contract in such amount as he/she shall find reasonably necessary to protect the best interests of the city. Such surety may be in the form of a certified or cashier’s check, corporate surety bond or savings and loan certificate.
(Ord. No. 28.64, 3/30/64; Ord. No. 24.71, 7/26/71; Ord. No. 11.82, 6/22/82; Ord. No. 13.95, 5/30/95; Ord. No. 10.06, 11/28/06.)