Construction Industry Force Account Council

Promoting Transparency Through Public Agency Compliance

City Of Eureka Charter Information

Charter Section 710. PUBLIC WORKS.

Any city improvement estimated to cost more than $15,000 shall be performed under contract with sealed bid and accompanying performance bond, except where such improvement is authorized by the Council to be made directly by a city department in conformity with detailed plans, specifications and estimates. All such contracts for more than $15,000 shall be awarded to the lowest responsible bidder after such public notice and competition as may be prescribed by ordinance or resolution provided that all bids may be rejected for cause, and new bids may be sought in accordance with the original procedure. Alterations in contracts affecting the scope of work, time requirements, cost or any other substantive provisions affecting cost or the city’s interests, shall be approved by the Council after considering the recommendations of the City Manager

Municipal Code § 39.38  PUBLIC WORKS PROJECTS.

Public works shall be procured under this subsection and the Procurement Policies and Procedures.

(A)   Prequalification.  For any Public Works Project, the estimated cost of which is more than $10,000, the Purchasing Agent or his or her designee may solicit from prospective Bidders Statements of Qualifications (SOQ) in a manner consistent with any applicable Procurement Policies and Procedures. Prospective bidders shall complete fully the SOQ, which when completed, shall be submitted as a declaration under penalty of perjury.  Advertisement of the SOQ to prospective bidders shall be made in the manner of advertising public notice inviting Bids, as specified in subsection (C)(3) of this section. Said responses shall be submitted in sealed envelopes as provided in the SOQ and shall be identified as responses to the SOQ for the designated project. Whenever prequalification is required of any bidder for a contract, it shall be required for all prospective bidders for that contract.

(B)   Contracts of $45,000 or less. Contracts estimated to be for $45,000 or less may be performed by (i) employees of the city, (ii) force account, (iii) purchase order, (iv) negotiated contract, (v) bids solicited from contractors without public notice, or (vi) written contract with a contractor from the Qualified Contractor List, if established.  They may also be procured by the Competitive Bidding Process by Informal Solicitation process discussed in subsection (C) of this section.

(C)   Competitive Bidding Process by Informal Solicitation. Contracts for an estimated value of $45,000 to $175,000 shall be contracted for using the following procedures:

(1)   Content of Solicitation Notice.  The notice shall generally describe the proposed project, describe how to obtain more detailed information, and state the time and place for bid submission. The notice or detailed information shall also describe required contract provisions.

(2)   Prequalified contractors. If the city chooses to prequalify contractors, the city will issue a notice to pre-qualified contractors inviting them to submit estimates by a specified date and time.  The city will award the contract to the contractor providing the lowest estimate in conformity with the city’s invitation.

(3)   Notice required. Notice to prospective bidders must be provided as provided in the Procurement Policies and Procedures.

(4)   Minimum number of bids.  Purchases shall, whenever possible, be based on at least three competitive bids and shall be awarded to the lowest responsive, responsible bidder.

(5)   Form of response.  Quotations, proposals and informal bids shall be in the form specified in the Procurement Policies and Procedures or as stated in the solicitation notice.

(6)   Bids in excess. If all bids received are in excess of $175,000 the Council may adopt a resolution to award the contract to the lowest responsive, responsible bidder if the Council determines that the cost estimate by the city was reasonable.

(D)   Competitive Bidding Process by Formal Solicitation.  Contracts for an estimated value of more than $175,000 will be contracted for by Competitive Bidding Process by Formal Solicitation procedures, including the following:

(1)   Notice inviting bids.  A notice inviting bids shall be publicly published and in the form provided in the Procurement Policies and Procedures.

(2)   Procurement Policies and Procedures. The Procurement Policies and Procedures shall establish administrative rules and regulations that include additional provisions such as bidder’s security; labor and material payment bond and performance bond; and irregularities.

(3)   Bid opening procedure.

(a)   Sealed bids. Bids shall be submitted sealed to the Purchasing Agent and shall be identified as bids on the envelope.

(b)   Opening.  Bids shall be opened in public at the time and place stated in the notice inviting bids.

(4)   Award.  Contracts awarded pursuant to Competitive Bidding Process by Formal Solicitation will be awarded to the lowest responsive, responsible bidder.

(E)   Alternative procurement methods authorized. Subject to authorization by the Council, the city may utilize an alternative procedure for bidding on public works in excess of one million dollars ($1,000,000).  This alternative procedure may include the design-build, design-build-operate, Construction-Manager-At-Risk, Lease-LeaseBack, Construction Manager/General Contractor, or any other procurement methodology specifically approved by the Council and determined to be in the city’s best interests.  The Purchasing Agent is expressly authorized to consider best value, defined as a value determined by evaluation of objective criteria that may include, but not be limited to, price, features, functions, life-cycle costs, experience, and past performance. A best value determination shall be included in the request for proposals, but may include, without limitations, the selection of the lowest cost proposal meeting the interests of the city and meeting the objectives of the project, selection of the best proposal for a stipulated sum established by the city, or a tradeoff between price and other specified factors.

(F)   Contractor security.  Before entering upon the performance of the work under any public works contract, the contractor shall execute and submit with its bid a good and sufficient surety company bond in an amount at least equal to 100% of the contract price as security for the faithful performance of the contract and a separate bond in an amount at least equal to 100% of the contract price, for the payment of all persons performing labor and furnishing materials in connection with the contract.

(G)   Authority to approve contracts.  All contracts for a public works project valued at one hundred thousand dollars ($100,000) or more require Council approval.

(1)   The Purchasing Agent is authorized, without Council approval, to approve and award a contract for a public works project valued at less than one hundred thousand dollars ($100,000).

(2)   The Purchasing Agent is authorized to delegate, in writing, authority to approve a contract for a public works project in an amount of ten thousand dollars ($10,000) or less.

(H)   Competitive bidding for public improvements may be dispensed with by order of the City Council pursuant to this division when the City Council is able to make the following findings:

(1)   Another person will be undertaking private improvements on land the city has a property interest in;

(2)   The private improvements will be similar to needed public improvements on nearby city property;

(3)   The mobilization cost to construct the public improvements is estimated to be in excess of $100,000;

(4)   Both the public and private improvements require the mobilization of the same equipment and the use of the same spoil site; and,

(5)   Mobilization cost savings to the city are estimated to exceed $50,000. In such cases, the City Council may authorize the City Manager to negotiate a proposal to construct the public improvements. The proposed public works contract shall be presented to the City Council for award and execution.

(Am. Ord. 861-C.S., passed 9-19-17)

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