El Segundo Municipal Code Ch. 7C Public Works Contracts

This chapter is adopted pursuant to the City's police powers and California Public Contract Code section 22034, and any succeeding or related statutes, for the purpose of implementing the alternative bid procedures set forth in the Uniform Public Construction Cost Accounting Act.

(Ord. 1391, 1-17-2006; amd. Ord. 1667, 2-4-2025)

This chapter may be used for public projects with a value equal to or less than the amount set forth in Public Contract Code section 22032(b), and any successor statute or regulation, or, when applicable, as established pursuant to Public Contract Code section 22020.

(Ord. 1391, 1-17-2006)

Unless the contrary is stated or clearly appears from the context, the definitions in Public Contract Code section 22002 and set forth below will govern the construction of the words and phrases used in this chapter:

CITY MANAGER: The City Manager or designee.

FACILITY: Any plant, building, structure, ground facility, utility system (subject to the limitations found in subsection (2) of the definition of "public project" below), real property, streets and highways, or other public work improvement.

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 streets and highways at 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, powerplants, and electrical transmission lines of 230,000 volts and higher.

PUBLIC PROJECT: Means any of the following:

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

(2) In the case of a publicly owned electric utility system, a "public project" shall include only the construction, erection, improvement, or repair of dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher.

Note: "Public project" does not include maintenance work.

(Ord. 1506, 4-21-2015; amd. Ord. 1667, 2-4-2025)

A. Public projects of seventy five thousand dollars ($75,000.00) or less may be performed by the employees of a public agency by force account, by negotiated contract, or by purchase order.

B. Public projects of two hundred and twenty-thousand dollars ($220,000.00) or less may be let to contract by informal procedures.

1. If all bids received are in excess of two hundred and twenty thousand dollars ($220,000), the city council may, by adoption of a resolution by a four-fifths vote, award the contract, at two hundred and thirty-five thousand dollars ($235,000.00) or less, to the lowest responsible bidder, if it determines the cost estimate of the city was reasonable.

C. Public projects of more than two hundred and twenty thousand dollars ($220,000.00) shall be let to contract by formal bidding procedures.

1. The City Manager may solicit bids, award contracts, and execute contracts for public projects up to seventy-five thousand dollars ($75,000.00). Contracts for public projects costing more than seventy-five thousand dollars ($75,000.00) must be awarded by the City Council.

(Ord. 1583, 5-21-2019; amd. Ord. 1667, 2-4-2025)

The Public Works Department will maintain a list of qualified contractors, identified according to categories of work. Any licensed contractor requesting to have its name placed on this list must be included. The list may be periodically revised to remove inactive names. A name may be deemed inactive if:

A. Letters addressed to the contractor at its last known address are returned without a forwarding address;

B. The contractor does not obtain plans for, or bid on, a public project for two (2) years;

C. The contractor's license is revoked or suspended by the California State Licensing Board;

D. The contractor removes its name; or

E. For other good cause as determined by the City Manager. (Ord. 1391, 1-17-2006)

A. The notice inviting bids must describe the project in general terms, indicate how to obtain more detailed information regarding the project, and state the time and place for submitting bids.

B. Unless the product or service is proprietary, not less than ten (10) calendar days before the date set for opening bids, the City Manager must notify contractors using one or both of the following methods:

1. Mail notices to each contractor on the list for the category of work to be performed;

2. Mail notices to each of the construction trade journals specified in Public Contract Code section 22036. (Ord. 1391, 1-17-2006)

A. Bid security is required for all bids on public projects when the City Manager estimates that the price will exceed twenty-five thousand dollars ($25,000.00). Bid security may be a bond issued by a licensed and duly qualified corporate surety, or the equivalent in cash, money order, cashier's check, certified check, unconditional letter of credit, or other form approved by the City Attorney. Nothing in this section prevents the City from requiring bid security on public projects of twenty-five thousand dollars ($25,000.00) or less when the City Manager believes such security is needed to protect the City's interests.

B. Bid security must equal at least ten percent (10%) of the bid amount.

C. If the notice inviting bids requires a bid security, noncompliance or defective, inadequate, or incomplete security will render the bid nonresponsive.

D. Bid security will be forfeited or paid to the City should the bidder fail to execute a contract within the time specified in the notice inviting bids.

(Ord. 1583, 5-21-2019; amd. Ord. 1667, 2-4-2025)

The City Clerk, or designee, will publicly open all bids in the presence of one or more witnesses at the time and place specified in the invitation for bids. Late, misplaced, or unsealed bids cannot be considered. If no bids are received, the City may proceed as set forth in Public Contract Code section 22038. (Ord. 1391, 1-17-2006)

A. The contract may be awarded to the lowest responsible bidder if the City Manager or City Council considers the bid to be reasonable, sufficient funds are appropriated for the public project, and the bid is within the limits specified by Public Contract Code section 22032(b) or, if applicable, Public Contract Code section 22020.

B. Nothing in this section restricts the city from taking any action set forth in Public Contract Code section 22038.

(Ord. 1391, 1-17-2006; amd. Ord. 1667, 2-4-2025)

Contractors awarded a contract under this chapter are required to provide sureties and insurance in forms approved by the city attorney and conforming with the contract documents. (Ord. 1391, 1-17-2006)

The public works director is authorized to approve designs for purposes of design immunity pursuant to Government Code section 830.6. Nothing in this section is intended to, nor will it, preclude the city council from separately or additionally approving designs for purposes of design immunity pursuant to Government Code section 830.6.

(Ord. 1506, 4-21-2015)

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.

If notice for bids to let contracts will not be given in case of an emergency, the city shall comply with the emergency contracting procedures set forth in Public Contract Code Section 22050.

(Ord. 1667, 2-4-2025)