Chico Municipal Code Ch. 3.20 Formal Contract Procedure 3

A. Except as otherwise provided in this chapter and Chapters 3.08 through 3.16, purchases and contracts for supplies, services, and equipment, as well as the sale of personal property of an estimated value of $25,000.00 or over, shall be by written contract with the lowest responsible bidder, as the case may be, pursuant to the formal bid procedures prescribed in this chapter.

B. Public works projects of an estimated cost which equals or exceeds the cost of a public works project required to be competitively bid under the general laws of the state of California applicable to public works contracts, or such other sum as may be authorized by Section 1110 of the city Charter; shall be by written contract with the lowest responsible bidder pursuant to the formal bid procedures prescribed in this chapter. Provided, however, that in the event that the city council has, by resolution, elected to become subject to the uniform public construction cost accounting procedures, pursuant to the Uniform Public Construction Cost Accounting Act set forth at Section 22000 et seq. of the Public Contract Code, then the alternative procedures set forth in this chapter for public works projects of $25,000.00 or less and public works projects of $75,000.00 or less, may also be used.

(Prior code § 2.104, Ord. 669, Ord. 1063, Ord. 1825 §4, Ord. 1979 §2) (Ord. 2433 §2)

At the city manager's discretion, public works projects of $25,000.00, or less, may be performed by city employees by force account, by negotiated contract, by purchase order or pursuant to such other bidding procedure as the city manager may determine.

(Ord. 1979 §3)

In the event that the city manager determines it to be in the city's best interest, a public works project of $75,000.00 or less may be let to contract by the informal bidding procedures as set forth in Public Contracts Code Section 22032 et seq., and below:

A. The purchasing officer shall maintain a list of qualified contractors identified according to category of work.

B. At the time informal bids are solicited, a notice inviting informal bids shall be mailed to all qualified contractors on the list. If no such list exists, or at the purchasing officer’s discretion, a notice inviting informal bids shall also be sent to all construction trade journals specified in California Public Contract Code Section 22036. Additional contractors and trade journals may also be notified, at the discretion of the purchasing officer.

C. The notice inviting formal bids shall describe the project in general terms, state how to obtain more detailed information about the project and state the time and place for the submission of bids.

D. All mailing of notices to contractors and construction trade journals pursuant to this section shall be completed not less than 10 calendar days before bids are due.

E. If all bids received are in excess of $75,000.00, the city council, by a 4/5 vote may award the contract at $80,000.00 or less to the lowest responsible bidder if it determines that the city's cost estimate for the project was reasonable.

(Ord. 1979 §4)

For all purchases and contracts for supplies, services and equipment of an estimated value of $25,000.00 or over and for all public works contracts required to be competitively bid under the general laws of the state of California applicable to public works contracts, or such other sum as may be authorized by Section 1110 of the city Charter for which the city manager has not made a determination to use the alternative procedures set forth in this chapter, bids shall be invited by notices in the form and published as follows:

A. Notices inviting bids shall include, among other things, the following statements:

1. A general description of the supplies, services or equipment to be purchased, or the public works projects to be constructed, or the services to be performed or the personal property to be sold;

• 2. Location where bid blanks and specifications may be secured;
• 3. The time and place for opening bids; and
• 4. The type and character of bidder's security required, if any.

B. Notice inviting bids shall be published once in the official newspaper of the city at least 2 weeks before the date set for the opening of bids.

C. For public works projects for which this formal bid procedure is used, the notice inviting bids shall also be mailed to all construction trade journals specified in Public Contract Code Section 22036 at least 30 calendar days before the date of opening the bids. This paragraph shall only apply if the city council has elected to become subject to the uniform public construction cost accounting procedures pursuant to the Uniform Public Construction Cost Accounting Act set forth at Section 22000 et seq., of the Public Contract Code.

(Prior code § 2.105 (Ord. 669, Ord. 1825 §5, Ord. 1979 §5))(Ord. 2433 §2)

A. Bidder’s security may be required when deemed necessary by the purchasing officer. Bidders shall be entitled to return of bid security. However, a successful bidder shall forfeit the bid security upon refusal or failure to execute the contract within10 days after notice of award of contract, unless the city is responsible for the delay. The contract may be awarded to the next lowest responsible bidder upon the refusal or failure of the successful bidder to execute the contract within the time herein prescribed.

B. If the contract is awarded to the next lowest responsible bidder pursuant to subsection A, the purchasing officer may elect to return to the successful bidder the difference, if any, between the lowest bidder's security and the second lowest bidder’s security after first deducting therefrom any costs determined by the purchasing officer to have been incurred by the city as a result of the successful bidder’s failure or refusal to execute such contract within the prescribed time.

(Prior code §2.106 (Ord. 669), Ord. 2268)

Sealed bids (identified as bids on the envelope) shall be submitted to the purchasing officer. Bids shall be opened in public at the time and place stated in the notice inviting bids. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than thirty calendar days after the bid opening.

(Prior code §2.107 (Ord. 669))

The purchasing officer, with sole discretion, may:

A. Reject any bid that fails to meet the bidding requirements in any respect; or

B. Reject all bids for any reason whatsoever and may re-advertise for new bids; or

C. Waive minor irregularities in any bid received.

(Prior code § 2.108 (Ord. 669, Ord. 1332 §7), Ord. 2268)

Contracts shall be awarded by the purchasing officer to the lowest responsible bidder except as follows:

A. If two or more bids received are for the same total amount or unit price, quality and service being equal, and further, if in the sole discretion of the purchasing officer the public interest will not permit the delay of re-advertising for bids, then the purchasing officer may accept the lowest bid made by negotiation with the tie bidders following the bid opening; and

B. Sellers, vendors, suppliers, and contractors of supplies and equipment who maintain places of business located within the limits of the city shall be given preference if quality, price, and service are equal in accordance with Chico Municipal Code Section 3.16.070.

(Prior code §2.109 (Ord. 669, Ord. 1332 §8, Ord. 1494 §2, Ord. 2506)

The purchasing officer shall have authority to require as a condition to executing a contract for or on behalf of the city, a performance bond or a labor and material bond, or both, in such amounts as the purchasing officer shall determine reasonably necessary to protect the best interests of the city. The form and amounts of such bond or bonds, if the same be required, shall be described in the notice inviting bids.

(Prior code §2.110 (Ord. 669))

Notwithstanding any other provisions of this chapter, in the case of an emergency the city council may waive the formal bidding requirements of section 3.20.020 of this chapter and may authorize the purchases and contracts for supplies, services and equipment, the sale of personal property, and contracts for public works without giving notice for bids to let contracts. Before the city council waives the formal bidding requirements of section 3.20.020, the city council shall make a finding that the emergency will not permit a delay resulting from a formal solicitation for bids and that the action is necessary to respond to the emergency.

If the city council waives the formal bidding requirements of section 3.20.020 due to an emergency, the city manager shall follow the informal bidding procedures set forth in section 3.20.015, subsections (A) through (D), unless those provisions have also been waived by the city council.

(Ord. 2416)

Nothing in this chapter shall preclude the City from utilizing the design-build project delivery method as authorized by Section 1110 of the City Charter and in accordance with the provisions and requirements set forth in Public Contract Code Section 22160 et seq., as it may be amended from time to time and where the Director of Public Works - Engineering makes a written determination that utilizing such method for a particular project will promote efficiency and will not hamper fair competition, and the City Council has adopted a conflict-of-interest policy pertaining to such method. The City Manager shall adopt administrative policies and procedures to implement this authorization and promote fair competition.

(Ord. 2602)