Fremont Municipal Code Art. III Contract Procurement Methods

(a) Contracts for personal property acquisition may include labor incidental to the purchase of goods, such as set-up, installation, and testing, and are subject to the following procedures:

(1) Each contract for personal property acquisition in an amount of more than $25,000 shall be subject to the formal bidding requirements set forth in Article IV of this chapter.

(2) Each contract for personal property acquisition in an amount of more than $5,000 and less than or equal to $25,000, shall be subject to the informal bidding requirements set forth in Section 3.20.240.

(b) Each contract for the acquisition of cash or personal property by acceptance of a grant shall comply with the city’s administrative regulation on donations and be subject to the following requirements:

(1) The city shall require each offer of a cash or grant of property with an estimated value of more than $2,500 to be made in writing identifying the name of the person making the grant, the cash or property offered, and the date on which the offer was made;

(2) The city’s acceptance of each offer of a grant of cash or property with an estimated value of $250.00 or more shall be made in writing containing:

(A) The date of acceptance;

(B) The amount of any cash contribution;

(C) A description (but not the fair market value) of any contribution of property;

(D) A statement that no goods or services were provided by the organization in return for the contribution, if that was the case;

(E) A description and good faith estimate of the fair market value of the goods or services, if provided by the city; and

(3) Donations with an estimated value of less than $250.00 shall be documented in accordance with the city’s administrative regulation on donations. (Ord. 2494 § 1, 12-3-02; Ord. 16-2004 §§ 1, 2, 12-7-04/eff. 1-5-05; Ord. 8-2011 § 5, 7-12-11; Ord. 06-2024 § 1, 9-17-24. 1990 Code § 2-9300.)

(a) Each contract for personal property disposition shall be subject to the requirements of any applicable state or federal law, shall be supported by a written determination by the city manager that the subject property is surplus to the needs of the city, and shall meet the purpose and goals set forth in Section 3.20.030.

(b) Each contract for personal property disposition for less than fair market value shall be supported by a written determination by the city manager that the disposition will serve a legitimate public purpose, and the disposition will not result in a gift of public funds. (Ord. 2494 § 1, 12-3-02. 1990 Code § 2-9301.)

(a) The city may enter into a price contract where it is agreed that the city may make future purchases of personal property or services at a predetermined price or price discount from a price list, provided the contract is let by an appropriate competitive procurement process. If it is anticipated that the city will purchase personal property or services in an amount of $100,000 or more pursuant to the price contract, then the city council shall approve the price contract.

(b) Once a price contract is established, the city may purchase the goods or services from the awarded contractor without first undertaking additional competitive solicitation.

(c) The term of any price contract, including renewals, shall not exceed five years unless approved by the city council.

(d) The city manager may make purchases of any amount under a price contract; provided, that the purchase is covered by sufficient unencumbered funds appropriated in the adopted budget. (Ord. 8-2011 § 6, 7-12-11. 1990 Code § 2-9301.1.)

(a) Each contract for real property acquisition and real property disposition shall be subject to the requirements of any applicable state or federal law, and shall meet the purpose and goals set forth in Section 3.20.030.

(b) Each contract for real property disposition for less than fair market value shall be supported by a written determination by the city manager that the disposition will serve a legitimate public purpose, and the disposition will not result in a gift of public funds. (Ord. 2494 § 1, 12-3-02. 1990 Code § 2-9302.)

(a) Each contract for services in an amount of more than $100,000 shall be subject to the competitive negotiation process as set forth in this chapter.

(b) Each contract for services in an amount of $100,000 or less shall be subject to the minor project process as set forth in this chapter. (Ord. 2494 § 1, 12-3-02. 1990 Code § 2-9303.)

Each contract for public project construction shall be subject to the procedures of the Uniform Public Construction Cost Accounting Act (UPCCAA) commencing at Cal. Pub. Cont. Code § 22000, as it may be amended from time to time. Each contract for public project construction shall also be subject to all applicable requirements of state and federal law, including all provisions of the California Public Contract Code applicable to local agency public works contracts not in conflict with the UPCCAA.

(a) Changes in Dollar Limits. In the event that the monetary limits specified in Sections 22032 and 22034 of the UPCCAA are amended by the State Legislature or adjusted by the State Controller pursuant to Section 22020 of the UPCCAA, such amendment or adjustment in the monetary limits shall prevail and apply in place of the monetary limits specified in subsections (b), (c), (d) and (e) of this section.

(b) Formal Bidding. Each contract for public project construction in an amount of more than $200,000 shall be subject to the formal bidding process as set forth in Section 22037 of the UPCCAA. This includes a notice inviting formal bids published by the city in a newspaper at least 14 calendar days before the bid deadline. This also includes a notice mailed to the construction trade journals as specified by the California Uniform Construction Cost Accounting Commission in accordance with Section 22036 of the UPCCAA at least 30 calendar days before the bid deadline.

(c) Informal Bidding. Each contract for public project construction in an amount of more than $60,000, and less than or equal to $200,000, shall be subject to the informal bidding process as set forth in Section 22034 of the UPCCAA as follows:

(1) Bidder’s List. 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 UPCCAA and criteria promulgated from time to time by the California Uniform Construction Cost Accounting Commission.

(2) Notice Inviting Informal Bids. A notice inviting informal bids (describing the project in general terms, how to obtain more detailed information about the project, and the time and place for the submission of bids) shall be mailed at least 10 calendar days before the bid deadline to the qualified contractors on the relevant bidders list. The city shall also endeavor, but shall not be required, to provide prior notice of informally bid projects to the construction trade journals as specified by the California Uniform Construction Cost Accounting Commission in accordance with Section 22036 of the UPCCAA. If, after following the sole source exception procedures set forth in Section 3.20.300, the product or service is determined to be proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice inviting informal bids may be sent exclusively to such contractor or contractors.

(d) If all bids received pursuant to the informal bidding process are in excess of $200,000, the city council may, by passage of a resolution by a four-fifths vote, award the contract, at $212,500 or less, to the lowest responsible bidder, if it determines that the original cost estimate of the city was reasonable.

(e) Minor Project Process. Each contract for public project construction in an amount of $60,000 or less shall be subject to the minor project process as set forth in Section 3.20.260. (Ord. 2494 § 1, 12-3-02; Ord. 8-2011 § 7, 7-12-11; Ord. 03-2019 § 1, 2-19-19. 1990 Code § 2-9304.)

In the event that the city is requested or required to take actions in accordance with the requirements of the Subletting and Subcontracting Fair Practices Act, commencing at Cal. Pub. Cont. Code § 4100, including conducting hearings and making determinations regarding the substitution of subcontractors, the city manager shall designate the individual or individuals authorized to take actions as the city’s awarding authority or duly authorized officer. Determinations made in accordance with this section by the city manager’s designee shall be final and conclusive. Therefore, such determinations shall not be subject to the appeal hearing process set forth in Article VIII of this chapter or the appeal process set forth in Chapter 1.25 and are only subject to such judicial review as may be available under state or federal law. (Ord. 8-2011 § 8, 7-12-11. 1990 Code § 2-9304.1.)

(a) City Council Adoption of Plans and Specifications. The city council shall adopt the working details, drawings, plans, and specifications prepared for every public project or public work of more than $100,000.

(b) City Engineer Review of Plans and Specifications. The city engineer is delegated authority to and shall review and approve the working details, drawings, plans, and specifications prepared for every public project or public work which may affect the design or operation of public improvements and were not adopted by the city council pursuant to subsection (a) of this section.

(c) In cases of emergency, work to repair or replace public facilities may proceed prior to adoption of the working details, drawings, plans and specifications. (Ord. 8-2011 § 9, 7-12-11. 1990 Code § 2-9304.2.)

Each contract for private development construction shall be subject to the procedures of the Subdivision Map Act and local ordinance (including the subdivision ordinance and other relevant provisions of Titles 17 and 18). (Ord. 2494 § 1, 12-3-02. 1990 Code § 2-9305.)

Each contract for the settlement of a claim against the city shall meet the purpose and goals set forth in Section 3.20.030. (Ord. 2494 § 1, 12-3-02. 1990 Code § 2-9306.)

Each contract for any type of project or undertaking which is not otherwise identified in this article, including a contract to acquire both personal property and services where the services are more than an incidental component of the contract, shall be subject to the following requirements:

(a) Each contract in an amount greater than $100,000 shall, in the discretion of the city manager, be subject to the formal bidding process as set forth in Section 3.20.170 or the competitive negotiation process as set forth in Section 3.20.250, except to the extent superseded by the requirements of state or federal law.

(b) Each contract in an amount of more than $25,000 and less than or equal to $100,000 shall, in the discretion of the city manager, be subject to the informal bidding process as set forth in Section 3.20.240 or the competitive negotiation process as set forth in Section 3.20.250, except to the extent superseded by the requirements of state or federal law.

(c) Each contract in an amount greater than $5,000 and less than or equal to $25,000 shall be subject to the minor project process as set forth in Section 3.20.260, except to the extent superseded by the requirements of state or federal law. (Ord. 2494 § 1, 12-3-02; Ord. 8-2011 § 10, 7-12-11. 1990 Code § 2-9307.)

(a) The city manager may approve alternative selection, evaluation and award procedures for a specific contract or class of contracts, except public project contracts, in accordance with this section.

(b) The approval of an alternative contracting method shall be based upon the following:

(1) The nature of the contract or class of contracts for which the alternative contracting method is requested.

(2) Information demonstrating the substantial cost savings, enhancement in quality or performance, or other public benefit that will result from use of the alternative contracting method.

(3) Information demonstrating that approval of the request would meet the purpose and goals of the purchasing code set forth in Section 3.20.030 and would substantially promote the public interest in a manner that could not be achieved by complying with the competitive procurement methods otherwise applicable under this chapter.

(4) A description of the proposed alternative contracting method.

(c) The requesting department shall prepare a request for use of an alternative contracting method and submit it to the purchasing manager. The request shall include the information described in subsection (b) of this section. Upon review and approval by the purchasing manager and city manager, the city may use the approved alternative section, evaluation and award procedures for the specific contract or class of contracts. (Ord. 8-2011 § 11, 7-12-11. 1990 Code § 2-9308.)

(a) Except as provided in subsection (b) of this section, no specifications for any public works project, including public projects and maintenance projects, shall call for a material, product, thing, or service by specific brand or trade name unless the specification is followed by the words “or equal.”

(b) The provisions of subsection (a) of this section shall not apply if the city manager has determined in writing that a particular material, product, thing, or service may be designated by specific brand or trade name for any of the purposes described in Cal. Pub. Cont. Code § 3400(b) as it may be amended from time to time. The city manager’s determination shall state the facts reviewed and the reasons supporting the decision. The city manager’s determination shall be described in the invitation for bids or request for proposals for the public works project. (Ord. 8-2011 § 12, 7-12-11. 1990 Code § 2-9309.)