$15,000 Informal, $50,000 Formal

Muni code section:
2.68.220 – Public projects—Formal bid procedures.
Public projects of greater than fifty thousand dollars must be let to contract by the formal procedures set forth in this section.
A. The bid contract officer shall mail notices inviting formal bids. The notices shall be mailed to all qualified contractors on the list maintained pursuant to Section 2.68.190, unless the product or service is proprietary.

B. The notices shall be mailed no later than ten calendar days before the opening date of the bids. The notices shall distinctly describe the project and state the time and place for the submission of bids.

C.The notice inviting bids shall be published at least ten days before the opening date of the bids. Notice shall be published at least twice, not less than five days apart, in a newspaper of general circulation, printed and published in the city or, if there is none, it shall be posted in at least three public places in the city that have been designated by ordinance as the places for placing public notices.

D.Sealed bids shall be submitted to the bid contract officer and shall be identified as bids on the envelope. Bids shall be opened in public by the bid contract officer or designee at the time and place stated in the public notices. A tabulation of all bids 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. All bidders on public construction projects shall be required to provide bidder’s security. The bidder’s security shall be an amount equal to, at least, ten percent of the amount of the bid or as prescribed in the public notice inviting bids. The bidder’s security shall be in one of the following forms:
1.    Cash;
2.    Cashier’s check made payable to the city;
3.    Certified check made payable to the city;
4.    Bidder’s bond executed by an admitted surety insurer, made payable to the city.
The cash or proceeds shall be deposited in the fund out of which the expenses of preparation and printing of the plans and specifications, estimate of costs, and publication of notice are paid. Bidders shall be entitled to return of bid security; provided, that a successful bidder shall forfeit his bid’s security upon refusal or failure to execute the contract within ten days after the notice of award of contract has been mailed, unless the city is responsible for the delay. The city council may, on refusal or failure of a successful bidder to execute the contract, award the contract to the next lowest responsible bidder. If the city council awards the contract to the next 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 check is used or to the surety on the bidder’s bond if a bond is used. The lowest bidder’s security may be applied towards the project bid price.

F. Contracts shall be awarded by the city council to the lowest responsible bidder except as otherwise provided in this chapter. The decision of the city council shall be final.

G. In its discretion, the city council may reject any bids presented, abandon the project or readvertise. After rejecting the bids submitted, the city council may adopt a resolution by majority vote declaring that the project can be performed more economically by employees of the city, and may have the project done by force account without further compliance with this section.

H. If two or more bids received are the same and lowest, the city council may accept the one it chooses.

I. If no bids are received, the project may be performed by employees of the city by force account, or by the informal procedures set forth in Section 2.68.210

J. The city council shall have the right to waive any defect or informality in the bidding or in the procedures set forth in this section. No defect or informality shall void any contract entered into.

K. The city manager may approve change orders which do not exceed ten percent of the contract price.

1.    (Ord. 428 § 1 (part), 1990)