§ 39.38 PUBLIC WORKS PROJECTS.

Public works services must be procured under this section and applicable laws. For purposes of complying with Charter Section 710 (Public Works), contracts for city improvements which are estimated to cost more than $15,000, but less than $100,000 are deemed to be "authorized by the Council to be made directly by a city department in conformity with detailed plans, specifications and estimates," if such contracts are procured in compliance with this section and the Procurement Policies and Procedures, and approved by the Purchasing Agent.

(A) Prequalification and statements of qualification.

(1) For any public works contract subject to informal bidding or formal bidding, the Purchasing Agent or his or her designee may elect to require all bidders to prequalify, using prequalification procedures that substantially conform to the requirements of Public Contract Code § 20101, as may be further specified in the Procurement Policies and Procedures, including, but not limited to, (a) required submission of a financial statement and standardized prequalification questionnaire that is generally consistent with the current guidelines and model forms provided by the DIR; (b) use of a uniform system of rating prospective bidders based on objective criteria; and (c) inclusion of an appeal process that enables a prospective bidder to dispute its rating prior to the bid deadline, as further specified in Public Contract Code § 20101.

(2) Alternatively, an invitation for bids issued for informal bidding or formal bidding may require submission of a signed statement of qualifications which may be used to evaluate whether a bidder is a responsible bidder as further specified in § 39.37(C) (Determination of responsibility).

(B) Bid thresholds and requirements. The bid thresholds established pursuant to the Uniform Public Construction Cost Accounting Act and set forth in Public Contract Code § 22032, as amended from time to time, will apply to determine the applicable bidding requirements as follows:

(1) Public works projects that are estimated to cost up to and including the amount set forth in Public Contract Code § 22032(a), currently $60,000, may be performed by (a) city employees, (b) force account, (c) negotiated contract, or (d) as otherwise specified in the Procurement Policies and Procedures.

(2) Public works projects that are estimated to cost more than the amount set forth in Public Contract Code § 22032(a) (currently $60,000), but no more than the maximum amount set forth in Public Contract Code § 22032(b), currently $200,000, may be awarded pursuant to informal bidding.

(3) Public works projects that are estimated to cost more than the amount set forth in Public Contract Code § 22032(c), currently $200,000, must be awarded pursuant to formal bidding.

(4) The bid threshold amounts set forth above will be deemed modified to align with future increases to the corresponding amounts set forth in Public Contract Code § 22032.

(C) Informal bidding. Contracts subject to informal bidding, as set forth above, will be procured in accordance with the following requirements, and as may be further specified in the Procurement Policies and Procedures:

(1) Minimum number of bids. The notice inviting informal bids will be sent by mail or email to at least three qualified bidders, whenever possible, which may include contractors on the Qualified Contractors List.

(2) Bids in excess of informal bidding amount. If all bids received are in excess of threshold amount for informal bidding the Council may award the contract to the responsible bidder that submitted the lowest responsive bid, if the Council determines that the cost estimate used as the basis for using informal bidding was reasonable.

(D) Formal bidding. The notice inviting bids for contracts subject to formal bidding, as set forth above, will be published as specified in the Procurement Policies and Procedures, and will be subject to the provisions of subsection (E), below.

(E) Requirements for informal and formal bidding. Public works procurements using informal bidding or formal bidding are subject to the following provisions and as further specified in the Procurement Policies and Procedures and subsection (F), below:

(1) Notice inviting bids. The notice inviting bids will be prepared using the form approved by the Purchasing Agent, and must generally describe the proposed project, describe how to obtain more detailed information, state the time and place for bid submission, and provide such other information required by laws. For formal bids, the bid documents must require submission of bid security in the amount of 10% of the maximum bid price, as further specified in the Procurement Policies and Procedures.

(2) Prequalified contractors. If the city chooses to prequalify contractors, the notice inviting bids will only be sent to prequalified contractors pursuant to subsection (A), above.

(3) Notice required. Notice to prospective bidders must be provided in the manner required by the Procurement Policies and Procedures for informal bidding or formal bidding, as applicable.

• (4) Bid opening procedure — informal bids.

(a) Submittal. Bids will be submitted to the purchasing agent or his or her designee by the time stated in the notice inviting bids. For contracts subject to prevailing wage requirements, the bidding instructions must require that the bidder's DIR registration number be submitted with the bid, and city staff will check online to confirm that the bidder is currently registered with the DIR before opening the bid. Bids that are submitted after the stated deadline for bid submission, or bids for which staff determines that the bidder lacks the required DIR registration will be returned.

• (b) Opening. Bids will be opened at the time stated in the notice inviting bids.

• (5) Bid opening procedure — formal bids.

(a) Sealed bids. Bids must be submitted to the Purchasing Agent or his or her designee in sealed envelopes, each identified as a bid on the envelope. For contracts subject to prevailing wage requirements, the bidding instructions must require that the bidder's DIR registration number be included on the outside of the envelope, and city staff will check online to confirm that the bidder is currently registered with the DIR before opening the bid. Bids that are submitted after the stated deadline for bid submission, or bids for which staff determines that the bidder lacks the required DIR registration will be returned unopened.

(b) Opening. Bids will be opened in public at the time and place stated in the notice inviting bids.

(6) Basis for award. The contract will be awarded, if at all, to the responsible bidder that submits the lowest responsive bid.

(F) Bid security and bonds. For formal bids, each bid must be accompanied by bid security in the amount of 10% of the maximum bid price (including additive alternates, if applicable), in the form of cash or as a cashier's check, certified check, or bid bond payable to the city. For any public works contract over $60,000, the successful bidder will be required to provide a payment bond and a performance bond, each for an amount equal to 100% of the contract price, as a condition to performing any work on the project. Any bond submitted pursuant to this subsection must be issued by a bond surety that is admitted in California and on a bond form approved by the Purchasing Agent.

(G) Change orders. For purposes of complying with Charter Section 710 (Public Works), change orders affecting the scope of work, time requirements, cost, or other substantive provisions affecting the city's interest are deemed to be approved by the Council, provided the City Manager recommends the change order, and (1) the change order cost falls within the change order contingency previously approved for the contract, or (2) the change order cost does not exceed the Purchasing Agent's approval authority.

(H) Alternative procurement methods authorized. Subject to authorization by the Council and the limitations of laws, the city may use an alternative procurement method for bidding on public works in excess of $1,000,000. Alternative procurement methods may include design-build, design-build-operate, construction-manager-at-risk, lease-leaseback, or any other procurement methodology specifically approved by the Council and determined to be in the city's best interests. The Purchasing Agent is expressly authorized to consider award on the basis of "best value," which may be based on objective criteria that may include, but not be limited to, price, features, functions, life-cycle costs, experience, and past performance.

(I) Task order contract. A Master Agreement for performing minor improvements and repairs on a task order basis, including pothole, sidewalk, or utility pole repairs, may be awarded subject to the same competitive procurement requirements that apply to any other public works contract, as may be further specified in the Procurement Policies and Procedures.

(Am. Ord. 861-C.S., passed 9-19-17; Am. Ord. 892-C.S., passed 12-3- 19; Am. Ord. 899-C.S., passed 3-17-20)