2.76.120 Formal contract procedure.
Purchases of goods and services except public projects as defined in Section 2.76.020 (7) of an estimated value of twenty-five thousand dollars or more shall be by written contract with the lowest
(1) Bidding Requirements.
(A) Exceptions to Bidding Requirements. The requirements of the section requiring the award of contracts by competitive bidding shall not apply:
(i) When, after advertising for bids as required herein, no responsive bids are received;
(ii) When, upon a majority vote of the city council it is determined that it is in the best interests of the city to suspend competitive bidding for any purchase or contract;
(iii) When the contract involves the obtaining of professional or specialized services such as, but not limited to, services rendered by architects, attorneys, engineers and other specialized consultants;
(iv) When an emergency purchase must be made in accordance with Section 2.76.090;
(v) Where cooperative purchasing agreements approved by the city council permit purchases of goods and services through legal contracts of other public agencies;
(vi) When, after awarding a contract, the city council approves a change order pursuant to the provisions in Section 2.76.140(5);
(vii) When it is advantageous to the city, the city manager, on approval by the city council, may direct the purchase of surplus supplies from the United States government, or any agency thereof, or from the state of California, or any agency thereof, or any public body, without compliance with the competitive bidding requirements of this chapter.
(B) Invitation for Bids. Bids shall be invited by notice in the following form and published as follows:
(i) Notice of inviting bids shall include the following statement:
(a) A general description of the goods or services to be purchased;
(b) Whether the successful bidder will be required to provide service within the city of Marysville for the item purchased;
(c) The location where bid blanks and specifications may be secured;
(d) The time and place for opening bids;
(ii) Notice inviting bids shall be published at least once in a newspaper of general circulation in the city, said notice to be published ten days or more prior to the date set for bid opening.
(C) Opening and Public Record.
(i) Written bids shall be submitted to the city clerk in sealed envelopes;
(ii) Bids shall be opened in public at the time and place stated in public notices;
(iii) A tabulation of all bids received shall be open for public inspection during regular business hours for a period not less than thirty calendar days after the bid opening.
(D) Rejection of Bid. The city council may reject any and all bids for any reason whatsoever. When all bids are rejected, the city council may authorize any of the following:
(i) Reinvite bids; or
(ii) Upon majority vote, direct the city clerk or his designee to negotiate with bidders.
(2) Award of Contract. Contracts shall be awarded to the lowest possible bidder except as otherwise provided herein. The council may waive any informality or immaterial irregularity in any bid. In addition to price in determining the lowest responsible bidder under the provisions of this chapter, consideration shall be given to:
(i) The quality of the supplies to be provided by the bidder;
(ii) The ability, capacity and skill of the bidder to perform the contract or effectuate the transaction;
(iii) The ability of the bidder to perform the contract or effectuate the transaction within the time specified, without delay;
(iv) The character, integrity, reputation, judgment, experience and efficiency of the bidder;
(v) The quality of the bidder’s performance on previous purchases by, or contracted with, the city; and
(vi) The ability of the bidder to provide further maintenance, repair parts and services for supplies provided.
(A) Local Bidder. The bid of any bidder from within the city shall be computed by subtracting from his bid the amount of sales tax that would be received by the city.
(B) Tie Bids. Subject to the provisions of Article V, Section 4 of the charter, if two or more bids received from responsible bidders are equal in price and quality, the city council may:
(i) Reinvite bids; or
(ii) Choose one bid over the other.
(C) Alternative Award upon Failure of Bidder to Enter into Contract. If the bidder to whom the contract is awarded shall fail to enter into the contract as required, the city council may declare the award to that bidder a nullity and award the contract to the next lowest bidder or authorize any of the actions outlined in subsection (1)(D) of this section.
(3) Forms of Contract. All contracts shall be in writing, approved by the city attorney and executed in the name of the city by the mayor and city clerk.
(4) Annual Purchase Orders. Where small items are purchased throughout the year as needed resulting in a relatively large order (such as office supplies, auto parts, hardware), the purchasing agent may seek bids pursuant to this section from a supplier to supply the city’s requirements for a year. The bid may take any reasonable form such as a listing with fixed prices or a fixed discount rate to be applied to current list prices. (Ord. 1309 § 8 (part), 2007; Ord. 1266 § 3, 2001: Ord. 1121 (part), 1991).
2.76.130 Open market purchasing.
Except as otherwise provided for annual purchase orders (Section 2.76.120(4)), purchases of goods and services having an estimated value under twenty-five thousand dollars may be made in the open market without observing the formal contract procedure:
(1) For purchases having an estimated value under two thousand dollars, no quotations are required.
(2) For purchases having an estimated value between two thousand dollars and five thousand dollars, at least three oral quotations shall be solicited.
(3) For purchases having an estimated value between five thousand dollars and twenty-five thousand dollars at least three written quotations shall be solicited. (Ord. 1266 § 4, 2001; Ord. 1265 § 1, 2001: Ord. 1121 (part), 1991).
2.76.140 Public projects.
Public projects shall be performed according to the following:
(1) Public projects of twenty-five thousand dollars or less may be performed by city employees, by force account, by negotiated contract, or by purchase order.
(2) Public projects of seventy-five thousand dollars or less may be let to contract by informal bidding procedures as set forth in Section 2.76.150.
(3) Public projects of more than seventy-five thousand dollars shall, except as otherwise provided in this chapter, be let to contract by formal bidding procedures as set forth in Section 2.76.160.
(4) In cases of emergency when repair or replacements are necessary, the work may proceed at once to replace or repair any public facility in accordance with Section 2.76.090 without adopting plans, specifications, strain sheets, or working details, or giving notice for bids to let contracts. The work may be done by day labor, by contractor, or by a combination of the two.
(5) Field Change Orders.
(A) The city council may authorize an amendment in the field to a contract awarded pursuant to this section not exceeding twenty-five percent of the original contract amount;
(B) The public works director or his designee may authorize an amendment in the field to a contract awarded pursuant to this section not exceeding the lesser of ten percent of the original contract amount, or twenty-five thousand dollars; provided, that one of the following conditions is met:
(i) Emergency work is necessary to safeguard life, health or property;
(ii) Additional work is necessary to comply with any law, regulation or order; or
(iii) Unexpected conditions arise which need attention to permit the project to proceed as scheduled.
(6) The requirements requiring the award of contract for public projects by competitive bidding shall not apply:
(A) Bidding Requirements.
(i) When, after advertising for bids as required herein, no responsive bids are received;
(ii) When, upon a majority vote of the city council, it is determined that it is in the best interests of the city to suspend competitive bidding for any purchase or contract;
(iii) When an emergency purchase must be made in accordance with Section 2.76.090;
(iv) Where cooperative purchasing agreements approved by the city council permit purchases of goods and services through legal contracts of other public agencies;
(v) When, after awarding a contract, the city council approves a change order pursuant to the provisions in this chapter. (Ord. 1266 § 5 (part), 2001).
2.76.150 Public projects—Informal bidding procedures.
Contracts to be let by informal bidding procedures shall be by written contract with the lowest responsible bidder whose bid has been solicited, received, and approved pursuant to the following procedure. The city engineer shall maintain a list of qualified contractors, identified according to categories of work, and a list of local construction trade journals.
(1) A notice inviting informal bids shall be mailed to all contractors on the list for the category of work being bid and construction trade journals on the list. All mailing of notices to contractors and construction trade journals shall be completed not less than ten calendar days before bids are due.
The notice inviting informal bids shall describe the project in general terms, how to obtain more detailed information about the project, and state the time and place for the submission of bids.
(2) Written bids shall be submitted at the time and place stated in the notice inviting bids.
(3) Receipt and Award of Bids. A tabulation of all bids received shall be submitted to the council for award of the contract. The contract shall be awarded to the lowest responsible bidder in accordance with Section 2.76.160(2). The city council may reject any and all bids for any reason whatsoever. If the city council rejects all bids, it may authorize any of the following:
(A) Reinvite bids using same plans and specifications, or split project into various phases and reinvite bids on one or more phases;
(B) Upon majority vote, direct the public works director or his designee to negotiate with bidders; or
(C) Upon majority vote, direct the public works director or his designee to perform the duties of a general contractor by:
(i) Purchasing goods and services pursuant to the chapter; and/or
(ii) Using city resources and employees.
(4) Forms of Contract. All contracts shall be in writing, approved by the city attorney and executed in the name of the city by the mayor and city clerk.
(5) Performance and Payment Bonds. Whenever the city council deems it advisable, it may require that a faithful performance bond and/or a labor and materials (payment) bond, or a line of credit or any combination thereof be given on any contract in an amount determined to be sufficient up to and including one hundred percent of the contract price. Such bond shall be approved as to form by the city attorney.
(6) Progress Payments on Contracts. Any contract may provide for progress payments to the contractor based on the percentage of value of work performed. No such payments, however, shall exceed ninety percent. Final payment shall not be made before all of the following conditions are met:
(A) The completion of the work to be performed;
(B) The acceptance by the city council of the work performed;
(C) The time for filing liens as provided by law has expired. (Ord. 1266 § 5 (part), 2001).
2.76.160 Public projects—Formal bidding procedure.
Purchases of goods and services (including all construction projects except public projects and maintenance as defined in Section 2.76.020(7)) of an estimated value in excess of seventy-five thousand dollars shall be by written contract with the lowest responsible bidder whose bid has been solicited, received and approved pursuant to the following procedure:
(1) Bidding Requirements.
(A) Exceptions to the Bidding Requirements. The requirements of the section requiring the award of contracts by competitive bidding shall not apply:
(i) When, after advertising for bids as required herein, no responsive bids are received;
(ii) When, upon a majority vote of the city council it is determined that it is in the best interest of the city to suspend competitive bidding for any purchase or contract;
(iii) When the contract involves the obtaining of professional or specialized services such as, but not limited to, services rendered by architects, attorneys, engineers and other specialized consultants.
(iv) When an emergency purchase must be made in accordance with Section 2.76.090;
(v) When, after awarding a contract, the city council approves a change order pursuant to the provisions in Section 2.76.140(5);
(B) Invitation for Bids. Bids shall be invited by notice in the following form and published as follows:
(i) Notice of inviting bids shall include the following statement:
(a) A general description of the goods or services to be purchased;
(b) The location where bid blanks and specifications may be secured;
(c) The time and place for opening bids;
(d) The type and character of bidder’s security required;
(e) The type and character of performance bond, and labor and material bond required, if any;
(ii) Notice inviting bids shall be published at least once in a newspaper of general circulation in the city, said notice to be published ten days or more prior to the date set for bid opening.
(C) Security Required. Each bidder shall be required to submit with the bid as bid security, either in cash, by cashier’s check or by certified check in favor of and payable at sight to the city of Marysville, or by surety bond, ten percent of the aggregate amount of the bid. If the bidder to whom the contract is awarded shall, for ten calendar days after receipt of such award, fail or neglect to enter into the contract and file the required bonds, the bid security shall be forfeited and the city clerk shall draw the money due on such bid security and pay the same, or any cash deposited, into the city treasury. The bid security shall not be returned to the defaulting bidder in such case unless the city council approves the return thereof in whole or in part.
(D) Opening and Public Record.
(i) Written bids shall be submitted to the city clerk in sealed envelopes;
(ii) Bids shall be opened in public at the time and place stated in public notices;
(iii) A tabulation of all bids received shall be open for public inspection during regular business hours for a period not less than thirty calendar days after the bid opening.
(E) Rejection of Bid. The city council may reject any and all bids for any reason whatsoever. When all bids are rejected, the city council may authorize any of the following:
(i) Reinvite bids using same plans and specifications, or split project into various phases and reinvite bids on one or more phases;
(ii) Upon majority vote, direct the city clerk public works director or his designee to negotiate with bidders; or
(iii) Upon majority vote, direct the city clerk public works director or his designee to perform the duties of a general contractor by:
(a) Purchasing goods and services pursuant to the chapter; and/or
(b) Using city resources and employees.
(2) Award of Contract. Contracts shall be awarded to the lowest possible responsible bidder except as otherwise provided herein. The council may waive any informality or immaterial irregularity in any bid. In addition to price in determining the lowest responsible bidder under the provisions of this chapter, consideration shall be given to:
(i) The quality of the supplies to be provided by the bidder;
(ii) The ability, capacity and skill of the bidder to perform the contract;
(iii) The ability of the bidder to perform the contract or effectuate the transaction on within the time specified, without delay;
(iv) The character, integrity, reputation, judgment, experience and efficiency of the bidder;
(v) The quality of the bidder’s performance on previous contracts with the city;
(vi) The ability of the bidder to provide further maintenance, repair parts and services for supplies provided; and
(vii) The quality of a public project to be provided by the bidder.
(A) Tie Bids. Subject to the provisions of Article VI, Section 8 of the charter, if two or more bids received from responsible bidders are equal in price and quality, the city council may:
(i) Reinvite bids;
(ii) Choose one bid over the other; or
(iii) Negotiate with the bidders to receive a low bid.
(B) Alternative Award upon Failure of Bidder to Enter into Contract. If the bidder to whom the contract is awarded shall fail to enter into the contract as required, the city council may declare the award to that bidder a nullity and award the contract to the next low bidder or authorize any of the actions outlined in subsection (1)(E) of this section.
(3) Forms of Contract. All contracts shall be in writing, approved by the city attorney and executed in the name of the city by the mayor and city clerk.
(4) Performance and Payment Bonds. Whenever the city council deems it advisable, it may require that a faithful performance bond and/or a labor and materials (payment) bond, or a line of credit or any combination thereof be given on any contract in an amount determined to be sufficient up to and including one hundred percent of the contract price. Such bond shall be approved as to form by the city attorney.
(5) Progress Payments on Contracts. Any contract may provide for progress payments to the contractor based on the percentage of value of work performed. No such payments, however, shall exceed ninety percent. Final payment shall not be made before all of the following conditions are met:
(A) The completion of the work to be performed;
(B) The acceptance by the city council of the work performed;
(C) The time for filing liens as provided by law has expired. (Ord. 1266 § 5 (part), 2001).
