Public Work to be Done by Contract

Section 136. In the erection, improvement and repair of all public buildings and works, and in furnishing any supplies and materials for the same, or for any other use by the City, the City Council shall establish, by ordinance, criteria including dollar amounts, requiring bidding and award of a contract, if awarded, to the lowest responsible bidder submitting a responsive bid. Whenever the Council determines that work, supplies, equipment or materials can only be reasonably obtained from one vendor because of restricted availability of such work, supplies, equipment or materials, or because of the necessity to successfully integrate such work, supplies, equipment or materials into an existing City project or system, the Council may authorize award of a contract for such work, supplies, equipment or materials without first seeking bids therefor. Projects for the resurfacing, maintenance or repair of streets, drains or sewers are exempted from the requirements of this paragraph, if the City Council determines that such work can be performed more economically by a City department than by contracting for the doing of such work.

The City Council may in its discretion reject any and all bids and readvertise for bids.

The City Council, after rejecting bids, or if no bids are received, may declare and determine that, in its opinion, based on estimates supplied by the City Manager, that work in question may be performed better or more economically by City employees or the materials or equipment may be purchased more economically on the open market, and after the adoption of a resolution to this effect by at least four affirmative votes of the Council, may proceed to have said work done in the manner stated, without further observance of the provisions of this section. Such contracts likewise may be let without advertising for bid if such work or supplies or equipment shall be deemed by the City 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 City Council and containing a declaration of the facts constituting such urgency. (Amended November 8, 1988: amended November 3, 1964)

(Sections 137 and 138 were repealed on November 8, 1988).

Muni Code section 3.20.090

3.20.090 Formal contract procedures.

A. Except as otherwise provided in this chapter, the erection of any public building or works or in furnishing any supplies, equipment and materials for same or for any other use by the city with an estimated value greater than forty thousand dollars and contracts for the purchase of concrete, fuel and asphalt with an estimated value greater than seventy-five thousand dollars shall be by written contract or order with the lowest responsible bidder pursuant to the procedure prescribed in this section.

B. Notice lnviting Bids. Notices inviting bids shall include a general description of the articles to be purchased and shall state where bid forms and specifications may be secured and the time and place for opening bids.

1. Published Notice. Notices inviting bids shall be published at least five days before the date of the opening of the bids. Notices shall be published at least once in a newspaper of general circulation published in the city.

2. Bidders List. The finance department shall also solicit sealed bids from responsible prospective suppliers whose names are on the bidders list or from responsible prospective suppliers who have made a written request that their names be added thereto.

3. Bulletin Board. The finance department shall also advertise pending purchases by a notice posted on a public bulletin board in City Hall.

C. Bidders Security. Except when inviting bids for the sale of supplies, equipment, or materials, a bid bond in an amount equal to ten percent of the bid shall be prescribed in the public notices inviting bids. When purchasing supplies, equipment, or materials, the finance director or designee at his or her discretion may prescribe in the public notices inviting bids an appropriate security deposit or other applicable bond in an amount not to exceed one hundred percent of the total bid price. Bidders shall be entitled to return of bid security; provided, however, that a successful bidder shall forfeit his bid security upon his refusal or failure to execute the contract within ten days after the notice of award of contract has been mailed, unless in the latter event the city is solely responsible for the delay in executing the contract. The city council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the city council awards the contract to the next lowest bidder, the amount of the lowest bidders security shall be applied by the city to the contract price differential between the lowest bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. If the city council rejects all other bids and readvertises, the amount of the lowest bidders security may be used to offset the cost of receiving new bids and any difference between that bidders bid and the price of the contract which is executed, and the surplus, if any, shall be returned to the lowest bidder.

D. Bid Opening Procedure. Sealed bids shall be submitted to the finance department and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the public notices. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than thirty calendar days after the bid opening.

E. Tie Bids. If two or more bids received are for the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay of readvertising for bids, the city council may in its discretion accept the one it chooses.

F. Bonds. Except for work to be performed by citys own work forces, the following bonds shall be procured. In every contract for the erection of any public building or works, or in furnishing any supplies, equipment and materials for same, the city shall require a faithful performance bond in an amount equal to one hundred percent of the contract price issued by an insurer admitted to transact the class of surety insurance in the state of California and rated B+7 or better by A.M. Best Rating Service or an equivalent nationally recognized rating service. In addition to the above performance bond, in every contract for the erection of any public building or works, or in furnishing any supplies, equipment and materials for same, unless otherwise required by law, the city shall require a faithful labor and materials bond (payment bond) in an amount equal to one hundred percent of the contract price issued by an insurer admitted to transact the class of surety insurance in the state of California and rated B+7 or better by A.M. Best Rating Service or an equivalent nationally recognized rating service.

G. Retention Percentage. Contract for the erection, improvement or repair of any public building or work shall specify that ten percent of the contract price shall be retained by the city from each progress payment; provided, however, on contracts of five hundred thousand dollars or more, once the work under the contract has been at least fifty percent completed to the satisfaction of the city engineer, the finance director may direct that no additional retention or a retention of less than ten percent be withheld from future progress payments.

H. Substitution of Securities. The provisions of subsection G of this section notwithstanding, to the extent required by law, securities provided by the contractor may be substituted in lieu of any such retention. (Ord. 4285 § 1 (part), 2005: Ord. 4028 § 1, 2001; Ord. 3981 § 1, 2000; Ord. 3650 § 1 (part), 1997: Ord. 3617 § 1, 1994: Ord. 3214 § 2, 1989: prior code § 5.20.090)