6-6
CONTRACTS FOR PUBLIC WORKS PROJECTS:
6-6.1 Public Works Projects; Uniform Public Construction Cost Accounting Act:
The city council has elected to subject the city to the Uniform Public Construction Cost Accounting Act1 in the performance of and contracting for public projects. The procedures contained in this section are intended to implement and be consistent with such act. (Ord. #1571, §4)
6-6.2 Definitions:
For purposes of this section, the following words shall have the following meanings:
Facility shall mean any of the following:
a. Any plant, building, structure, ground facility, real property, street, highway or other public works improvement;
b. Any utility system owned by the city, subject to the limitations found in subsection c of the definition of “public project” in this section.
Force account shall mean work performed on public projects using internal city resources, including, but not limited to, labor, equipment, materials, supplies and subcontracts of the city.
Maintenance work shall mean any of the following:
a. Routine, recurring and usual work for the preservation or protection for its intended purposes of any facility owned or operated by the city;
b. Minor repainting;
c. Resurfacing at less than one inch (1") deep of streets and highways;
d. Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants and servicing of irrigation and sprinkler systems; and
e. Work performed to keep, operate and maintain water, power or waste disposal systems owned by the city, including, but not limited to, dams, reservoirs, power plants and electrical transmission lines of 230,000 volts and higher.
Public project shall mean any of the following, excluding maintenance work:
a. Construction, reconstruction, erection, alteration, renovation; improvement, demolition and repair work involving any facility owned, leased or operated by the city;
b. Painting or repainting any facility owned, leased or operated by the city; and
c. The construction, erection, improvement or repair of dams, reservoirs, powerplants and electrical transmission lines of two hundred thirty thousand (230,000) volts and higher that are part of a utility system owned by the city. (Ord. #1571, §4)
6-6.3 Contracting Procedures; Dollar Amount Limitations:
a. Public projects of thirty thousand dollars ($30,000.00) or less, for which appropriations have been approved by the city council, may be performed by force account, by negotiated contract, or by purchase order. The director of environmental services is authorized to determine how and by whom the project shall be performed and the city manager is authorized to execute any contract or purchase order for the project.
b. Public projects from thirty thousand dollars one cent ($30,000.01) to one hundred twenty five thousand dollars ($125,000.00) shall be contracted for pursuant to the informal bidding procedures contained in subsection 6-6.6 of this section.
c. Public projects of more than one hundred twenty five thousand dollars ($125,000.00) shall be contracted for pursuant to the formal bidding procedures contained in subsection 6-6.7 of this section.
d. All contracts governed by this section shall be in a form approved by the city attorney. (Ord. #1571, §4)
6-6.4 Separation Of Work Orders Or Projects:
It shall be unlawful for any person to split or separate any public project into smaller work orders or projects for the purpose of evading the provisions of this section requiring work to be done by contract after competitive bidding. (Ord. #1571, §4)
6-6.5 Lists Of Contractors And Trade Journals:
a. The director of environmental services shall develop and maintain a list of contractors, identified according to categories of work, in accordance with criteria determined by the California uniform construction cost accounting commission (the “commission”) and promulgated in the “Cost Accounting Policies And Procedures Manual”.
b. The director of environmental services shall maintain a list of the construction trade journals, as determined for the county of Los Angeles by the commission, that are to receive mailed notice of all informal and formal construction contracts being bid for work within the county. (Ord. #1571, §4)
6-6.6 Informal Bidding Procedures:
a. When the city intends to contract for a public project from thirty thousand dollars one cent ($30,000.01) to one hundred twenty five thousand dollars ($125,000.00), the director of environmental services or his designee shall mail a notice inviting informal bids to all contractors on the list for the category of work being bid, to all construction trade journals on the list, and to such other contractors and trade journals as may be requested by the city staff in charge of the project. However, if a project or service essential to the project is proprietary and can be obtained only from a certain contractor or contractors, the notice inviting informal bids may be sent only to such contractor or contractors.
b. All mailing of notices inviting informal bids shall be completed not less than ten (10) calendar days before bids are due.
c. The notice inviting informal bids shall describe the project in general terms and how to obtain more detailed information about the project, and shall state the time and place for the submittal of bids.
d. The city council delegates the authority to award and execute contracts for public projects of one hundred twenty five thousand dollars ($125,000.00) or less which are let by the informal bidding procedures specified herein to the city manager upon the recommendation of the director of environmental services. In awarding such contracts the city manager shall exercise prudent judgment in determining the lowest responsible bidder, utilizing the criteria specified in subsection 6-6.9 of this section.
e. If all bids received are in excess of one hundred twenty five thousand dollars ($125,000.00), the city council may, by adoption of a resolution by a four-fifths (4/5) vote of its membership, award the contract at one hundred thirty seven thousand five hundred dollars ($137,500.00) or less to the lowest responsible bidder, if the city council determines that the city’s original cost estimate for the project was reasonable.
f. If no bids are received, the project may be performed by negotiated contract or by city employees by force account. “No bids” means that no bids at all were received or that no bids that conform to the city’s specifications were received or that no bids that conformed to the city’s specifications were submitted by a responsible bidder. (Ord. #1571, §4)
6-6.7 Formal Bidding Procedures:
a. The city council shall adopt plans, specifications and working details for all public projects exceeding one hundred twenty five thousand dollars ($125,000.00). Any person may examine the plans, specifications or working details adopted for such projects.
b. When the city is to contract for a public project of more than one hundred twenty five thousand dollars ($125,000.00), the director of environmental services shall prepare a notice inviting formal bids, which shall distinctly describe the project and state the time and place for receiving and opening sealed bids.
c. At least fourteen (14) days before the date of opening the bids, the director of environmental services or his designee shall publish the notice in a newspaper of general circulation, printed and published in the city. At least thirty (30) days before the date of opening the bids, the director of environmental services or his designee shall mail the notice to all construction trade journals on the list referred to in subsection 6-6.5 of this section. The director of environmental services or his designee may also give such other notice as he/she deems proper.
d. Sealed bids shall be submitted to the city clerk’s office and shall be identified as to bidder, project and marked “bid” on the envelope. Bids shall be opened by the city clerk’s staff in public at the time and place stated in the notice inviting formal bids. A written record and tabulation shall be made at that time of all bids received, and shall be open for public inspection during the city’s regular business hours for a period of at least thirty (30) days after the bid opening.
e. The city council may in its discretion reject any bids presented, if the city, prior to rejecting all bids and declaring that the project can be more economically performed by employees of the city, furnishes a written notice to an apparent low bidder. Such notice shall be sent by the director of environmental services. The notice shall inform the bidder of the city’s intention to reject the bid and shall be mailed at least two (2) business days before the hearing at which the city intends to reject the bid. If, after the first invitation for bids, all bids are rejected, the city may, after reevaluating the cost estimates for the project:
1. Abandon the project;
2. Readvertise for bids in the manner described in this subsection; or
3. Request that the city council adopt a resolution by a four-fifths (4/5) vote, declaring that the project can be performed more economically by city employees. If such a resolution is adopted, the director of environmental services may have the project completed by force account.
f. If no bids are received, the project may be performed by negotiated contract or by city employees by force account. “No bids” means that no bids at all were received or that no bids that conformed to the city’s specifications were received or that no bids that conform to the city’s specifications were submitted by a responsible bidder. (Ord. #1571, §4)
6-6.8 Award Of Formal Bid Contracts:
Except as otherwise provided herein, formal bid contracts shall be awarded by the city council to the lowest responsible bidder. If two (2) or more bids are the same and the lowest, the city council may accept the one it chooses. The determination of “lowest responsible bidder” shall be at the discretion of the city council pursuant to findings and recommendations presented by the city manager and/or the director of environmental services at the time of award of the contract. (Ord. #1571, §4)
6-6.8(A) Exemptions From Formal And Informal Bidding Procedures And Purchasing Authority Limits:
The provisions of this section 6-6 requiring formal or informal bids shall not apply when the city is able to secure a contract for a public project through piggyback procurement.
Piggyback procurement shall mean utilizing another public agency’s contract or agreement to obtain more advantageous prices and terms than can be otherwise obtained on the open market.
A piggyback contract is available under which:
a. Competitive bid procedures have already been utilized, for the supplies, equipment, or services by any California city, county, school district, state, and federal government or any of their respective agencies within twenty-four (24) months; or
b. Procurement agreement is made available by any California city, county, school district, state, and federal government or any of their respective agencies, programs, vendors or agents allowing local governments to buy directly from suppliers through existing contracts and agreements; or
c. The city council adopts a resolution establishing policies for purchasing.
d. The supplies, equipment, or services are supplied to the city at the same or better price as was obtained by the vendor via any California city, county, school district, state, and federal government or any of their respective agencies. (Ord. #1649, §1; Ord. #1672, §1)
6-6.9 Determining The Lowest Responsible Bidder:
a. In determining the lowest responsible bidder, the following shall be considered, in addition to the price:
1. Quality;
2. The ability, capacity, and skill of the bidder to perform the contract or provide the services required;
3. Whether the bidder can perform the contract or provide the services promptly, or within the time specified, without delay or interference;
4. The sufficiency of the bidder’s financial resources to perform the contract or provide the services; and
5. The ability of the contractor to provide future maintenance and services if essential to adequate performance. (Ord. #1571, §4)
6-6.10 Bid Bonds:
All sealed bids submitted pursuant to subsection 6-6.7 of this section must be accompanied by a bid security in an amount equal to at least ten percent (10%) of the amount bid. A bid shall not be considered unless one of the forms of bid security specified in the California Public Contract Code section 20170 is enclosed with the bid. If the successful bidder fails to execute the contract, the amount of the bidder’s security shall be forfeited to the city, except as provided in the California Public Contract Code sections 20173 and 20174. (Ord. #1571, §4)
6-6.11 Performance And Payment Bonds:
In awarding a contract pursuant to subsection 6-6.6 or 6-6.7 of this section, the director of environmental services shall require a faithful performance bond in an amount equal to one hundred percent (100%) of the contract price and a payment bond in the amount required by California Civil Code section 3248. Such bonds shall be issued by an admitted surety insurer and be in the form of a bond, not a deposit in lieu of a bond. (Ord. #1571, §4)
6-6.12 Emergencies:
a. In cases of emergency when repair or replacements are necessary the city council may proceed at once to replace or repair any public facility without adopting plans, specifications, strain sheets, or working details, or giving notice to let bids for contracts. The work may be done by day labor under the direction of the city council, by contract, or by a combination of the two. The provisions of California Public Contract Code section 22050, including, but not limited to, the requirement of a four-fifths (4/5) vote of the city council finding substantial evidence of an emergency prior to taking emergency action, shall apply when notice for bids to let contracts in emergency situations is not given.
b. The city council may delegate by resolution the authority to order any action pursuant to paragraph (1) of subdivision (a) of California Public Contract Code section 22050 to the city manager or chief engineer. (Ord. #1571, §4)
6-6.13 Maintenance Work:
The city may utilize the bidding procedures set forth in subsection 6-6.3 et seq., of this section when contracting for maintenance work. (Ord. #1571, §4)
6-6.14 Periodic Adjustment Of Bidding Thresholds:
Pursuant to Public Contract Code section 22020, the dollar amounts specified in the various provisions of this section are subject to periodic adjustment by the California uniform construction cost accounting commission. When such adjustments become effective, the city council may make the new dollar amounts applicable to the city by adopting a resolution or passing an ordinance amending the affected provisions of this section. (Ord. #1571, §4)
Pub.Con.C. §22000 et seq.