Diamond Bar Municipal Code Ch. 3.25 Public Projects

Contracts for public projects in the city shall be governed by applicable state laws, including California Public Contract Code, Division 2, Part 1, and Division 2, Part 3, Local Agency Public Construction Act. In addition, the city has elected to become subject to the Uniform Public Construction Cost Accounting Act (Public Contract Code Section 22000 et seq.) and the contracting procedures set forth in Article 3 of the Act. The city may procure public projects by force account, negotiated contract, purchase order, informal bidding or formal bidding in accordance with the alternative procedures authorized by the Act and the applicable dollar amount limitations set forth in Section 22032 of the Act, as it may be amended from time to time. All procedures set forth in this chapter shall be interpreted in a manner consistent with state law.

(Ord. No. 02(2018), § 2, 7-17-18)

As used in this chapter, the following words and terms shall be defined as follows unless the context indicates that a different meaning is intended:

Act means the Uniform Public Construction Cost Accounting Act (California Public Contract Code Section 22000 et seq.).

Bid means the response submitted by a bidder to an invitation for bids issued by the city for goods, services or public projects.

Commission means the California Uniform Public Construction Cost Accounting Commission established pursuant to Public Contract Code Section 22010.

Competitive bidding means the process whereby bids are solicited from potential bidders in accordance with applicable law to foster cost effective competition within the private sector providing goods, services, or public projects to the city.

Encumbrance means a contingent liability and reservation of a budget appropriation incurred as a result of the issuance of a purchase order and/or contract.

Facility shall have the same meaning as set forth in Section 22002 of the Act and includes any plant, building, structure, ground facility, utility system (subject to the limitation found in Public Contract Code Section 22002), real property, streets and highways, or other public work improvement.

Informal bid or quotation means a competitive bid that is submitted by a bidder for procurement of goods or services for which formal bidding is not required.

Force account means work performed on public projects using internal resources, including but not limited to labor, equipment, materials, supplies, and subcontracts of the public agency.

Local vendor preference means a business, firm, or enterprise with fixed offices and locally taxable distribution points within the city, which holds a valid business license issued by the city, and bearing a street address within the city.

Maintenance work shall have the same meaning as set forth in Public Contract Code Section 22002. For the purpose of this chapter, maintenance work is not considered a public project. Maintenance work includes:

(a) The routine, recurring, and usual work for the preservation or protection of any publicly owned or operated facility for its intended purposes.

(b) Minor repainting.

(c) Resurfacing of streets and highways at less than one inch.

(d) Landscape maintenance including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems.

Public project shall have the same meaning as set forth in Public Contract Code Section 22002 and includes the following:

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

(b) Painting or repainting of any publicly owned, leased, or operated facility.

"Public project" does not include maintenance work as defined above.

Purchase order means the city's written document provided to a vendor formalizing the terms and conditions associated with the ordering of goods, services, or public project required by the city.

Responsible bidder means a bidder who has demonstrated the capacity, and experience to satisfactorily perform the public works contract, and bid meets all of the specifications set forth in the request for bid proposal.

Splitting means dividing a purchase order or contract into two or more parts in order to avoid the provisions of this chapter requiring work to be done by contract after competitive bidding.

(Ord. No. 02(2018), § 2, 7-17-18)

Subject to the provisions of this chapter, provided there is adequate unencumbered appropriation in the account against which the expenditure is to be charged, procurement of public projects shall be as specified in Table 3.25.03A:

Table 3.25.03A - Authority and Purchasing Limitations; Public Projects

(Ord. No. 02(2018), § 2, 7-17-18)

(a) Public projects of $45,000.00 or less (or the current amount specified in Section 22032(a) of the Act) may be performed by the employees of the city by force account, by negotiated contact, or by purchase order.

(b) Public projects of $175,000.00 or less (or the current amount specified in Section 22032(b) of the Act) may be let to contract by informal bidding procedures as set forth in this chapter.

(c) Public projects of more than $175,000.00 (or the current amount specified in Section 22032(c) of the Act) shall, except as otherwise provided in this chapter, be let to contract by formal bidding procedures in accordance with Section 22037 of the Act and as set forth in this chapter.

(d) Public projects shall not be split or separated into smaller work orders or projects for the purpose of evading the provisions of this chapter requiring work to be done by contract after competitive bidding.

(Ord. No. 02(2018), § 2, 7-17-18)

(a) Every notice inviting informal bids shall describe the project in general terms and how to obtain more detailed information about the project, and state the time and place for the submission of bids.

(b) Notice to contractors shall be provided in accordance with either paragraph (1) or (2) below, or both.

(1) A list of qualified contractors, identified according to categories of work, shall be developed and maintained in accordance with the provisions of Public Contract Code Section 22034 and criteria promulgated from time to time by the commission. All contractors on the list for the category of work being bid shall be mailed, faxed, or emailed a notice inviting informal bids, unless the product or service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, in which case the notice inviting informal bids may be sent exclusively to such contractor or contractors. All mailing of notices to contractors pursuant to this subdivision shall be completed no less than ten calendar days before bids are due.

(2) In addition to, or in lieu of, providing notice as provided in paragraph (1), a notice inviting informal bids may be mailed, faxed, or emailed to all construction trade journals as specified by the Commission in accordance with Public Contract Code Section 22036.

(3) In addition to the notice required by this section, the city manager or his or her designee may notify such additional contractors and/or construction trade journals as he or she deems proper.

(c) If all bids received are in excess of $175,000.00, the city council may, by adoption of resolution by a four-fifths vote, award the contract, at $187,500.00 or less (or the current amount specified in Section 22034(d) of the Act), to the lowest responsible bidder, if it determines that the original cost estimate of the city was reasonable.

(Ord. No. 02(2018), § 2, 7-17-18)

(a) Every notice inviting formal bids shall state the time and place for the receiving and opening of sealed bids and distinctly describe the project.

(b) The notice shall be published at least 14 calendar days before bid opening in accordance with the requirements of Section 22037 of the Act.

(c) The notice inviting formal bids shall also be sent electronically, by either facsimile or electronic mail and mailed to all construction traded journals as specified by the commission pursuant to Section 22036 of the Act. The notice shall be sent at least 15 calendar days before the bid opening date.

(d) In addition to the notice required by this section, the city manager or his or her designee may give such other notice as he or she deems proper.

(e) Formal sealed bids shall be submitted to the city clerk with the bid number written on the envelope where they will be date and time stamped. All bids must be received and date and time stamped by the city clerk's clock on or before the date and time due; late bids will be returned unopened. The city clerk shall publicly open all bids at the time and place stated in the public notice. A tabulation of all bids shall be available for public inspection in the city clerk's office during regular business hours for a period of one year after bid opening.

(Ord. No. 02(2018), § 2, 7-17-18)

(a) If a contract is awarded pursuant to the informal or formal bidding procedures, it shall be awarded to the lowest responsible bidder. If two or more bids are the same and the lowest, the city may accept the one it chooses.

(b) The city manager or his or her designee shall have the authority to award contracts for public projects of $175,000.00 or less (or the current amount specified in Section 22032(b) of the Act).

(c) Contracts for public projects of more than $175,000.00 (or the current amount specified in Section 22032(c) of the Act) shall be awarded by the city council.

(d) The city manager or his or her designee shall have the authority to approve change orders to contracts for public projects up to and including ten percent or $45,000.00, of the awarded contract amount, whichever is less.

(e) In its discretion, the city may reject any and all bids presented. Prior to rejecting all bids, the city manager or his or her designee shall first furnish a written notice to the apparent low bidder informing the bidder of the city's intention to reject the bid. The notice shall be mailed at least two business days before the date in which the city intends to reject the bid. If after the first invitation for 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 re-advertising for bids in the manner described by this chapter; or

(2) By passage of a resolution by a four-fifths vote of the city council declaring the project can be performed more economically by the employees of the city, having the project done by employees of the city by force account without further complying with the Act.

(f) If no bids are received through either the formal or informal bidding procedure, the project may be performed by the employees of the city by force account or through a negotiated contract without further complying with this chapter.

(Ord. No. 02(2018), § 2, 7-17-18)

(a) The city council shall adopt the plans, specifications, and working details for all public projects of more than $175,000.00 (or the current amount specified in Section 22032(c) of the Act).

(b) The public works director/city engineer is authorized to and may adopt the plans, specifications, and working details prepared for public projects of $175,000.00 or less (or the current amount specified in Section 22032(b) of the Act).

(Ord. No. 02(2018), § 2, 7-17-18)

(a) In cases of emergency when repair or replacement are necessary, the city may proceed at once to replace or repair any public facility without adopting plans, specifications, or working details, or giving notice for bids to let contracts.

(b) In case of an emergency, it notice for bids to let contracts will not be given, the city shall comply with Public Contract Code Section 22050.

(Ord. No. 02(2018), § 2, 7-17-18)

In addition to the provisions of this chapter, the procurement of all contracts for public projects that are funded in whole or in part with federal grant funds shall be subject to applicable Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards promulgated by the United States Office of Management and Budget, 2 U.S. Code of Federal Regulations part 200.

(Ord. No. 02(2018), § 2, 7-17-18)

The city manager shall have the power and authority to make such rules, regulations and criteria as may be necessary to effect the provisions of this chapter, and to make such other reasonable rules and regulations as he or she may deem proper to implement the provisions of this chapter and which shall not be inconsistent with the terms and provisions of this chapter.

(Ord. No. 02(2018), § 2, 7-17-18)