City of Industry Municipal Code Ch. 3.52 Public Projects—bidding and Procedures

The city finds and declares:

A. It is in the public interest for the city to elect to become subject to the uniform public construction cost accounting procedures adopted by the California Uniform Cost Accounting Commission pursuant to Public Contract Code Section 22000 et seq. (Part 3, Chapter 2).

B. Such election will enable the city to perform public works projects with its own forces and/or by contracts awarded through informal bidding procedures when it is in the best interest of the city to do so.

C. It is the intent of the city that this chapter govern the selection of public contractors by the city through informal bidding procedures, in accordance with Public Contract Code Section 22034, unless otherwise provided in this chapter.

(Ord. 641 § 1, 1999; Ord. 809 § 4, 2020)

The provisions of Section 1003 of the City Charter shall be applicable to new construction of any public work, exceeding an estimated cost to the city for such project in excess of five thousand dollars and which project will require the issuance of one or more permits pursuant to the City Building Code, Electrical Code or Mechanical Code.

(Ord. 605 § 1, 1994; Ord. 641 § 1, 1999)

A. For purpose of this code, "public project" means any of the following:

1. Construction, reconstruction, erection, alteration, renovation, improvement, demolition and repair work involving any publicly owned, leased, or operated facility;

2. Painting or repainting of any publicly owned, leased or operated facility;

3. In the case of a publicly owned utility system, "public project" includes only the construction, erection, improvement or repair of dams, reservoirs, power plants and electrical transmission lines of two hundred thirty thousand volts and higher.

B. "Public project" does not include maintenance work. For purposes of this chapter, "maintenance work" includes all of the following:

1. Routine, recurring and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes;

2. Minor repainting;

3. Resurfacing of streets and highways of less than one inch;

4. Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants and servicing of irrigation and sprinkler systems;

5. Work performed to keep, operate and maintain publicly owned water, power or waste disposal systems, including, but not limited to, dams, reservoirs, power plants and electrical transmission lines of two hundred thirty thousand volts and higher.

C. "Public project" also does not apply to, pursuant to Section 22041 of the Public Contract Code, the construction of any public building used for facilities of juvenile forestry camps or juvenile homes, ranches or camps if a major portion of the construction work is to be performed by wards of the juvenile court assigned to those camps, ranches or homes.

D. For purposes of this chapter, "facility" means any plant, building, structure, ground facility, utility system, subject to subsection (A) (3) of this section, real property, streets and highways, or other public work improvement.

(Ord. 641 § 1, 1999)

A. The city council shall approve all formal bidding activity for public projects of more than one hundred twenty-five thousand dollars prior to the mailing of notices inviting bids.

B. For public projects procured by the informal bidding process, the city shall have authority to require a performance bond before entering a contract in such amount as it shall find reasonable and necessary to protect the best interests of the city. If the city requires a performance bond, the amount of the bond shall be described, in the notice inviting bids, and its form shall be as determined by the city attorney.

(Ord. 641 § 1, 1999; Ord. 711 § 2, 2005)

The journals on the list of qualified construction trade journals, developed and maintained in accordance with the provisions of Section 22036 of the California Public Contract Code, shall be noticed pursuant to Sections 3.52.080 and 3.52.090.

(Ord. 641 § 1, 1999)

A list of qualified contractors, identified according to categories of work, shall be developed and maintained in accordance with the provisions of Section 22034 of the Public Contract Code and criteria promulgated from time to time by the California Uniform Construction Cost Accounting Commission.

(Ord. 641 § 1, 1999)

Public projects of thirty thousand dollars or less may be performed by negotiated contract or by purchase order upon approval of the city manager or public works director, or by the employees of the city by force account upon adoption of a resolution by a four-fifths vote of the city council, pursuant to Section 1003 of the City Charter.

(Ord. 641 § 1, 1999; Ord. 711 § 3, 2005)

Public projects of less than one hundred twenty-five thousand dollars may be let to contract by the informal procedures set forth herein.

A. The city manager shall mail notices inviting informal bids. The notices shall be mailed to all qualified contractors on the list maintained and to all construction trade journals on the list referred to in Section 3.52.050, unless the product or service is proprietary.

B. The notices shall be mailed not less than ten calendar days before the opening date of the bids. The notices 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.

C. The city manager and director of public works are authorized to award informal contracts and purchase orders pursuant to this chapter. Informal bids and purchase orders shall be awarded to the lowest responsible bidder.

D. Bids shall be submitted to the city manager who shall keep a record of all informal orders and bids for a period of six months after placement of the order. This record, while so kept, shall be open to public inspection.

E. If all bids received are in excess of one hundred twenty-five thousand dollars, the city council may by passage of a resolution by a four-fifths vote, award the contract at one hundred thirty-seven thousand five hundred dollars or less, to the lowest responsible bidder, if it determines the cost estimate of the public agency was reasonable.

F. If no bids are received, the project may be performed by employees of the city by force account, or negotiated contract without further complying with this chapter.

(Ord. 641 § 1, 1999; Ord. 658 § 3, 2000; Ord. 711 § 4, 2005)

Public projects of greater than one hundred twenty-five thousand dollars must, except as otherwise provided in this chapter, be let to contract by the formal procedures set forth herein.

A. The city clerk shall mail notices inviting formal bids. The notices shall be mailed, and if available, shall also be sent via electronic mail or facsimile, to all construction trade journals on the list referred to in Section 3.52.050, and at the discretion of the city clerk, mailed to all qualified contractors on the list maintained in accordance with Section 3.52.060, unless the project or service is proprietary.

B. The notices shall be sent at least thirty calendar days before the date of opening the bids. The notices shall distinctly describe the project and state the time and place for submission and opening of bids.

C. The notice inviting bids shall be published at least fourteen 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, in a newspaper of general circulation which is circulated within the city. If neither type of newspaper exists, the notice shall be posted in at least three public places in the city that have been designated by ordinance as places for placing public notices.

D. The city clerk shall also post a notice of pending public work projects on a public bulletin board in the City Hall.

E. Sealed bids shall be submitted to the city clerk and shall be identified as bids on the envelope. Bids shall be opened in public by the city clerk 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.

F. Bidders on public construction projects shall be required to provide bidder's security. The bidders security shall be an amount equal to 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. Cashiers check made payable to the city;

3. Certified check made payable to the city; or

4. Bidder's bond executed by an authorized surety insurer, made payable to the city.

G. 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 shall be final.

H. In its discretion, the city may reject any bids presented. If after the first invitation of bids all bids are rejected, after reevaluating its cost estimates of the project, the city shall have the option of either of the following:

1. Abandoning the project, or readvertising for bids in the manner described herein.

2. By adoption of a resolution by a four-fifths vote of the city council 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 complying with this chapter.

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

J. If no bids are received, the project may be performed by employees of the city by force account, or by negotiated contract without further complying with this chapter.

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

L. The city council shall adopt plans, specifications, and working details for all public projects subject to this section. Any person may examine the plans, specifications, and/or working details adopted by the city council for any project.

M. If all bids received are in excess of the amount set forth in Public Contract Code Section 22034(d), the city council may, by adoption of a resolution by a four-fifths vote, award the contract, in the amount set forth in Public Contract Code Section 22034(d) or less, to the lowest responsible bidder, if it determines the cost estimate of the city was reasonable.

(Ord. 641 § 1, 1999; Ord. 658 § 4, 2000; Ord. 711 § 5, 2005; Ord. 815 §§ 3, 4, 2021)

The dollar thresholds set forth in Sections 3.52.070, 3.52.080, and 3.52.090 of this chapter shall increase or decrease automatically as necessary, to conform to any adjustment established by the State Controller pursuant to the authority set forth in Public Contract Code Section 22020.

(Ord. 815 § 5, 2021)

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 for bids to let contracts. The work may be done by day labor under the direction of the city council, by contractor, or by a combination of the two.

B. In case of an emergency, if notice for bids to let contracts will not be given, the city council shall comply with the following procedures:

1. The city council shall make a finding, based on substantial evidence set forth in the minutes of its meeting, that the emergency will not permit a delay resulting from a competitive solicitation for bids, and that the action is necessary to respond to the emergency.

2. The city council, pursuant to a four-fifths vote, may repair or replace a public facility, take any directly related and immediate action required by that emergency, and procure the necessary equipment, services and supplies for those purposes.

3. The city council, by a four-fifths vote, may delegate by resolution or ordinance, to the city manager, chief engineer or other nonelected city officer, the authority to order any action specified in subsection (B)(2) of this section.

4. If a person with authority delegated pursuant to this section orders any action specified in subsection (B)(2) of this section, that person shall report to the city council, at its next meeting required pursuant to this section, the reasons justifying why the emergency will not permit a delay resulting from a competitive solicitation for bids and why the action is necessary to respond to the emergency.

5. If the city council orders any action, specified in subsection (B)(1) or (B)(2) of this section, the city council shall review the emergency action at its next regularly scheduled meeting and, except as specified below, at every regularly scheduled meeting thereafter until the action is terminated, to determine, by a four-fifths vote, that there is a need to continue the action. If the city council meets weekly, it may review the emergency action in accordance with this paragraph every fourteen days.

6. If a person with authority delegated pursuant to this section orders any action specified in subsection (B)(2) of this section, the city council shall initially review the emergency action not later than seven days after the action, or at its next regularly scheduled meeting if that meeting will occur not later than fourteen days after the action, and at least at every regularly scheduled meeting thereafter until the action is terminated, to determine, by a four-fifths vote, that there is a need to continue the action, unless a person with authority delegated pursuant to this section has terminated that action prior to the city council reviewing the emergency action and making a determination pursuant to this subsection. If the city council meets weekly, it may, after the initial review, review the emergency action in accordance with this subsection every fourteen days.

7. When the city council reviews the emergency action pursuant to subsection (B)(5) or (B)(6) of this section, it shall terminate the action at the earliest possible date that conditions warrant so that the remainder of the emergency action may be completed by giving notice for bids to let contracts.

(Ord. 641 § 1, 1999)

A. Notwithstanding Section 3.52.030(A)(3), when exigent circumstances require the prompt and immediate construction, expansion, improvement, modification or extension of a public utility facility, or the transmission or distribution system thereof, the city council may proceed at once with such public utility process without adopting plans, specifications, working details or giving notice for bids to let contracts.

B. In the case of such a public utility project, the city council shall, prior to proceeding with the award of such project, comply with of the following procedures:

1. The city council shall make a finding, based on substantial evidence set forth in the minutes of its meeting, that the protection of the health, welfare and safety of the city, its residents and business owners, will not permit a delay resulting from a competitive solicitation of bids and that the action is necessary to establish, preserve or maintain the public utilities system; and

2. The city council, pursuant to a four-fifths vote, shall authorize the project, any directly related and immediate action required for the public utility project and may delegate to the city manager, director of public utilities or city engineer any and all authority required to fulfill the council direction to proceed with the public utility project.

(Ord. 671 § 3, 2001)

Any or all other contracts relating to maintenance of public works or public facilities may be provided for either by competitive bidding, informal public bidding or by negotiated contract, at the discretion of the city council.

(Ord. 605 § 1, 1994; Ord. 641 § 1, 1999)

The city council may enter into one or more long-term agreements for general maintenance and repair and miscellaneous services related to the ongoing maintenance and repair of public facilities, including minor new construction which is not included within the provisions of Section 1003 of the Charter as more specifically defined in this chapter. Any such agreement or agreements shall contain such provisions as the city council may, from time to time, require to assure an orderly program for maintenance, repair and minor construction of such public facilities throughout the city on such terms and conditions as the city council may, from time to time, determine to be appropriate.

(Ord. 605 § 1, 1994; Ord. 641 § 1, 1999)

All city public works projects shall comply with the requirements of Labor Code Section 1782 and Article 2 (Wages) of Chapter 1 (Public Works) of Part 7 (Public Works and Public Agencies) of Division 2 (Employment Regulation and Supervision) of the California Labor Code, as it may be amended from time to time, regarding payment of prevailing wages and the city shall not authorize a contractor to not comply with Article 2.

(Ord. 790 § 2, 2015)

The city public works projects may, but shall not be required to, utilize project labor agreements for a specific project or projects. If the city adopts the use of PLAs for a specific project or projects, then the PLA shall comply with the requirements of Public Contract Code Section 2500.

(Ord. 790 § 3, 2015)

The city may enter into a single contract with a design-build entity for the design and construction or manufacture of a project (a "design build contract"), in accordance with this section, without further complying with the requirements of this code, provided that the city manager or the city council makes a written determination of the following:

A. The city's goals for the proposed public works project will be more cost effectively achieved through a design-build contract, as compared to the city's design-bid-build process, after taking into consideration: costs of design, construction or manufacture, and ongoing maintenance and repair; timing of design and construction or manufacture; the need to coordinate with third parties during construction or manufacture; unique requirements for managing the quality of design and construction or manufacture; the likely need to consider innovative solutions to design, construction or manufacturing challenges in order to respond to potential challenges to the certainty of the timing or costs of design or construction or manufacture; and the need to consider unique project financing alternatives (including public/private partnerships).

B. The city actively solicited proposals from design-build entities in a manner that effectively requested competitive proposals from entities qualified and available to successfully complete the proposed project under a design-build contract.

C. After evaluating the respective qualifications and proposals submitted by competitive proposers, and after negotiating contract terms with the apparently successful design-build entity, the city selected the design- build entity on a "best value" basis that will most cost effectively achieve the city's goals for the proposed project, after considering: the proposed approach for design and construction or manufacture (including project features, and operational and functional performance of the project to be constructed); overall price (including initial and/or life cycle costs); schedule; the design-build entity's experience, training, and qualifications (including an evaluation of references of the design-build entity's experience. on similar projects related to responsiveness, timeliness, quality of work, and overall performance); the design-build entity's capacity, capability, and financial stability to complete the project; and overall responsiveness to the city's request for proposals.

(Ord. 796 § 2, 2016)

Public projects are exempt from the informal and formal bid procedures set forth herein, if the project has already been competitively bid by another public agency, including, but not limited to, federal, state, and county governments, including state of California agencies, joint powers authorities, or special districts, and the public agency has complied with the procedures set forth in the Uniform Construction Cost Accounting Act.

(Ord. 809 § 5, 2020)