Charter Sec. 1203. – Competitive Bidding.
The Council shall adopt all necessary requirements to set limits for competitive bidding.
Sec. 2-1001. – Construction of section; designation of contracting officer; procedures generally.
(a) This division shall apply to procurements estimated in excess of the amount provided under the Public Contracts Code § 22032(b) for construction contracts or public works projects, which are to be let by contract, and shall be by written bid with council approval, prior to award to the lowest responsible bidder, pursuant to the procedure prescribed in this division. Procurement for construction or public works projects less than the amount defined under the Public Contracts Code § 22032(b) shall be made in accordance with section 2-969 which pertains to open market procedure for construction $30,000.00 or less, or section 2-1002 which pertains to informal bidding procedure for construction more than $30,000.00 but less than the amount provided under the Public Contracts Code § 22032(b).
(b) The city manager shall designate the public works director as city contracting officer who shall function as the contracting agent for all construction and/or public works projects to be let through pubic bidding in accordance with the following procedure:
(1) Specifications. All specifications shall be drafted so as to promote overall economy for the purpose intended and to encourage open competition in satisfying the city’s needs. Specifications shall not be unduly restrictive.
(2) Notice inviting bids. The notice inviting bids shall set a date for the opening of bids and distinctly state the nature and scope of the project to be constructed. The notice shall be posted on the city’s website and in at least one public place in the city that has been designated for the posting of public notices at least ten days before the date of opening the bids.
(3) Rejection of bids. At its discretion, the city may reject any or all bids and readvertise as it deems appropriate. If two or more bids are the same total amount, quality and service being equal, the public works director shall award the contract by drawing lots. If no bids are received, the city council may have the work done without further complying with this section.
(4) Bidders’ list. The contracting officer shall send a notice inviting sealed bids to the following:
- a. Prospective contractors who possess the appropriate contractor’s license for the project; Prospective contractors whose names are on the city bidders’ list; and
- c. Those contractors located in the city who have a valid city business license.
(5) Bidders’ security. All construction bids shall be presented under sealed cover and accompanied by one of the following forms of bidders’ security of an amount not less than ten percent of the amount bid:
- a. Cashier’s check made payable to the city; Certified check made payable to the city; or
- c. A bidder’s bond, executed by an admitted surety insurer, made payable to the city. If the successful bidder fails to execute the contract, the amount of the bidder’s security shall be forfeited to the city.
(6) Bid opening procedure. Sealed bids shall be submitted to the city and shall be identified as a bid on the submittal package. Bids shall be opened by the purchasing manager, city clerk, or their designee in public at the time and place stated in the public notice.
(7) Bid splitting. It shall be expressly forbidden to split or separate into small projects any public works project or construction contract for the purpose of evading this section.
(8) Award of bids. Bids shall be awarded by the city council to the lowest responsible bidder except as otherwise provided in this division. Bids containing a base bid and one or more additive alternates shall be totaled and awarded to the lowest responsible bidder for the base bid and any additive alternate recommended.
(9) Responsive bid. In order for a bid to be considered, it must be responsive.
(10) Award to next lowest bidder. 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 second lowest bidder, the amount of the lowest bidder’s security shall be applied by the city to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder if cash or a check is used or to the surety on the bidder’s bond if a bond is used.
(11) Record of bids. The city’s contracting officer shall keep a record of all public works projects or construction bids, including a copy of all submittals, for a period of one year from the date of opening. Such records shall be open to public inspection during normal working hours.
(12) Insurance and bonds. The contractor shall not commence work until he has procured and given satisfactory proof of the following insurance and bonds:
- a. Workers’ compensation insurance in an amount satisfactory to the contracting officer; Public liability insurance in an amount satisfactory to the contracting officer;
- c. Faithful performance bond, issued by an admitted surety insurer, securing the faithful performance by the contractor of all requirements under the contract. The faithful performance bond shall be in the sum of not less than 100 percent of the estimated aggregate amount of the payments to be made under the contract computed on the basis of the prices stated in the bid; and Labor and material bond, issued by an admitted surety insurer, securing the payment of claims of material, men and laborers thereunder. The labor and material bond shall be in the sum of not less than 100 percent of the estimated aggregate amount of the payments to be made under the contract computed on the basis of the prices stated in the bid.
(13) Bid protests. If the contracting officer determines that a bid is either nonresponsive or that the bidder is not a responsible bidder, the contracting officer shall notify the bidder of this determination prior to the award of the bid and shall give the bidder an opportunity to submit materials, in a manner specified by the contracting officer, concerning the issue of responsiveness or the contractor’s qualifications to perform the contract.
(14) Change orders. The aggregate of all construction change orders for a single CIP project cannot exceed 15 percent of the total value of the project as outlined in the capital improvement program plan, to a maximum of $100,000.00, without approval by the city council.
(15) Encumbrance of funds. Except as provided in section 2-1005 which pertains to calamity or emergency work, the contracting officer shall not issue any contract for any construction or public works project unless the director of finance has determined in writing that there exists an unencumbered appropriation in the fund account against which the contract is to be charged.
(Ord. No. 4107, § 1, 9-8-2008; Ord. No. 4145, § 1, 7-11-2011)