La Puente Municipal Code Ch. 2.21 Bid Procedures for Public Projects

Sections:

• 2.21.010 Purpose.

• 2.21.020 Bidding procedures for defined public projects.

• 2.21.030 List of contractors.

• 2.21.040 Informal bidding procedure.

• 2.21.050 Formal bidding procedures.

• 2.21.060 Rejecting formal bids.

• 2.21.070 Plans and specifications.

• 2.21.080 Emergencies.

• 2.21.090 Cooperative or piggyback awards.

This chapter is intended to establish informal bidding procedures for certain public projects, as defined herein, subject to regulations that are consistent with the requirements of the Uniform Public Construction Cost Accounting Act (Public Contracts Code Section 22000 et seq.) (the “Act”).

(Ord. 18-954 § 3 (part), 2018)

(a) The city manager may cause public projects of one hundred seventy-five thousand dollars ($175,000) or less to be performed or let to contract by informal procedures as set forth in this chapter and the Act.

(b) Except as set forth in Section 2.21.020(f), the following limits and procedures apply to contracting for public projects in the city:

(1) Public projects of forty-five thousand dollars ($45,000) or less may be performed by the employees of the city, by force account, by negotiated contract, or by purchase order;

(2) Public projects of greater than forty-five thousand dollars ($45,000) but less than one hundred seventy-five thousand dollars ($175,000) may be let to contract through informal procedures as set forth in this chapter and the Act; and

(3) Public projects of more than one hundred seventy-five thousand dollars ($175,000) shall, except as otherwise provided in this chapter or in the Public Contract Code, be let to contract by the formal bidding procedure set forth in this chapter and the Public Contract Code.

(c) The dollar thresholds in this section refer to the city engineer’s written estimate of the cost of any public project.

(d) It shall be unlawful to split or separate into smaller work orders or projects any public project for the purpose of evading the provisions of this chapter requiring work to be done by contract after informal or formal competitive bidding.

(e) The term “public project” shall have the definition set forth in Public Contracts Code Section 22002.

(f) The dollar thresholds set forth in subsections (a) and (b) of this section shall increase or decrease automatically as necessary to comply with any adjustment mandated by the State Controller pursuant to the authority granted by Public Contract Code Section 22020.

(Ord. 18-954 § 3 (part), 2018)

A list of qualified contractors, identified according to categories of work, shall be developed and maintained in accordance with Public Contract Code Section 22034(a) and any criteria promulgated from time to time by the California Uniform Construction Cost Accounting Commission (“Commission”). Such list shall be maintained and updated from time to time by the city manager or the city manager’s designee.

(Ord. 18-954 § 3 (part), 2018)

The following procedures shall apply to informal bids for public projects:

(a) Notice inviting informal bids.

(1) Required noticing. When a public project is permitted to be let to contract by informal bidding pursuant to this chapter, a notice inviting informal bids shall be mailed and/or emailed to all contractors on the list created pursuant to Section 2.21.030 for the category of work being bid, and to all the construction trade journals specified by the Commission in accordance with Public Contract Code Section 22036.

(2) Optional noticing. Notice may be also provided to any additional contractors, publications and/or construction trade journals identified by the city manager or the city manager’s designee.

(b) Exception. If the product or service to be procured for a public project is 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.

(c) Time of giving notice. All mailing of notices to contractors and construction trade journals pursuant to this Section shall be completed not less than ten calendar days before bids are due.

(d) Description of project. The 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.

(e) Authority to award contracts. The city manager is authorized to award a contract for a public project pursuant to the process set forth in this Section if the lowest bid received is twenty thousand dollars ($20,000) or less. Contracts valued at more than twenty thousand dollars ($20,000) require City Council approval.

(f) Bids exceeding one hundred seventy-five thousand dollars ($175,000). If all bids received pursuant to the informal process are in excess of one hundred seventy-five thousand dollars ($175,000), the City Council may adopt a resolution by a four-fifths vote to award the contract to the lowest responsible bidder at one hundred eighty-seven thousand five hundred dollars ($187,500) or less, if it determines the city’s cost estimate was reasonable.

(g) Award of contract. Any contract awarded pursuant to this section shall be awarded to the lowest responsible bidder. If two or more bids received are for the same total amount or unit price, quality and service being equal, the approving entity may accept either bid.

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

(Ord. 18-954 § 3 (part), 2018)

For those projects requiring formal bidding under Section 2.21.020, the following procedures shall be used:

(a) Notice. A notice shall be published, at least once, fourteen (14) calendar days before the date of opening the bids in a newspaper of general circulation printed and published in the jurisdiction of the city. The notice inviting formal bids shall also be sent electronically if available by either facsimile or email, and mailed to all construction trade journals specified by the Commission in accordance with Public Contract Code Section 22036. The notice shall be mailed at least fifteen (15) calendar days before the date of opening the bids. The notice inviting formal bids shall state the time and place for the receiving and opening of sealed bids and distinctly describe the project. In addition to notice required by this section, the city may give such other notice as it deems proper.

(b) Bidder’s security/failure to sign contract. Bidder’s security shall be prescribed in the notice inviting bids in an amount equal to ten (10%) percent of the amount bid. Bidder’s security shall be either a cash deposit with the city, a cashier’s or certified check payable to the city, or a bidder’s bond. Unsuccessful bidders shall be entitled to the return of bid security within sixty (60) days of the date of the award. However, the lowest responsive and responsible bidder shall forfeit all or part of his/her bid security, as may be determined by the city council, upon the bidder’s refusal or failure to execute the contract within ten (10) days after the date of the award of the contract. On the refusal or failure of the lowest responsive and responsible bidder to execute the contract, the city council may award the contract to the next lowest responsive and responsible bidder. All bids must be signed by person authorized to bind company to bid terms.

(c) Bid opening procedure. Sealed bids shall be submitted to the city clerk’s office and shall be identified as to bidder, project, and “bid” on the envelope. Bids shall be opened by the city clerk’s staff in public at the time and place stated in the notice inviting bids. A written record and tabulation shall be made at that time of all bids received by the deadline. Bids that are received after the submittal deadline shall be marked as “Late” and shall not be opened at the bid opening and shall not be considered for award. Bids shall be open for public inspection in accordance to the California Public Records Act during regular business hours for a period of one year after the bid opening.

(d) Award of contracts/minor irregularities. Contracts shall be awarded by the city council to the lowest responsive and responsible bidder whose bid fulfills the purpose intended, according to criteria designated in the solicitation, and provided the award amount is within the unencumbered appropriation for that item. The city council may waive minor bid irregularities.

(e) Change orders. A “change order” shall be used to modify the contract documents regarding contract price, schedule of payments, completion date, plans and specifications, and for unit price overruns and under runs, as specified in the contract. Work description and justification must relate to the original project and must be work necessary to achieve original scope of project. After a determination that costs are merited by developments in a specific project, the city manager is authorized to issue change orders up to the contract contingency approved by the city council.

(f) Tie bids. If two or more bids received are for the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay or re-advertising for bids, the city council may accept either bid.

(g) Performance/labor/materials bonds. A labor and materials bond, plus a performance bond shall be required, from an acceptable surety, in such amounts and in such a form as the city finds reasonably necessary to protect the public interest.

(h) No bids. If no bids are received, the project may be performed by city employees by force account, informal bidding procedures, or negotiated contract, without further complying with this chapter.

(Ord. 18-954 § 3 (part), 2018)

The following rules apply to rejecting formal bids for public projects:

(a) Rejecting formal bids. In its discretion, the city council may reject any bids presented, if the city, prior to rejecting all bids and declaring that the project can be more economically performed by employees of the agency, furnishes a written notice to an apparent low bidder. The notice shall inform the bidder of the city’s intention to reject the bid and shall be mailed at least two business days prior to the city council meeting at which the city intends to reject the bid. 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 re-advertising for bids in the manner described by this chapter.

(2) After adopting a resolution by a four-fifths vote of the city council declaring that the project can be performed more economically by city employees, have the public project done by force account without further complying with this chapter.

(Ord. 18-954 § 3 (part), 2018)

The city council shall adopt plans, specifications, and working details for all public projects exceeding the amount specified in Section 2.21.020(b)(3). Any person may examine the plans, specifications, or working details, or all of these, adopted by the city for any public project.

(Ord. 18-954 § 3 (part), 2018)

(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 manager, 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 shall comply with Chapter 2.5 of Part 3 of Division 2 of the Public Contract Code (commencing with Section 22050).

(Ord. 18-954 § 3 (part), 2018)

In all public works projects, whether requiring formal or informal bidding procedures, the city council or the City Manager (when appropriate) may use cooperative competitive bidding procedure or a "piggyback" contract prepared by and processed through another local, state, or federal governmental agency or a cooperative purchasing entity established or utilized by such governments or public agencies. To be eligible, the piggyback contract must have been the result of the competitive bidding process of that entity. Under such circumstances, the city may join into an existing awarded contract obtained within thirty-six (36) months of the contemplated joinder by the city.

(Ord. 21-975 § 2, 2021)