Lake Forest Municipal Code Ch. 3.13 Public Projects—bidding and Procedures

A. For purposes of this Code, and as defined in the California Public Contract Code, "public project" means any of the following:

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

2. Painting or repainting of any publicly owned, leased or operated facility;

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

B. "Public project" does not include maintenance work. For purposes of this section, "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 of streets and highways of 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, power plants and electrical transmission lines of 230,000 volts and higher.

C. "Public project" also does not apply to, pursuant to Section 22041 of the Public Contract Code, the construction of any public building used for facilities of juvenile forestry camps or juvenile homes, ranches or camps if a major portion of the construction work is to be performed by wards of the juvenile court assigned to those camps, ranches or homes.

D. For purposes of this section, "facility" means any plant, building, structure, ground facility, utility system subject to subsection (A)(3) of this section, real property, streets and highways or other public work improvement.

(Ord. 165 § 1, 2007)

A. The City Council, or as delegated, shall approve all formal bidding activity for public projects in excess of $200,000 prior to the mailing of notices inviting bids.

B. The City shall have the authority to require a performance bond before entering into a contract in such amount as it shall find reasonable and necessary to protect the best interests of the City. If the City requires a performance bond, the amount of the bond shall be described, in the notice inviting bids, and its form shall be as determined by the City Attorney.

(Ord. 165 § 1, 2007; Ord. 262 § 1, 2014; Ord. 296 § 3, 2017; Ord. 312 § 1, 2018)

The journals on the list of qualified construction trade journals, developed and maintained in accordance with the provisions of Section 22036 of the California Public Contract Code, shall be noticed pursuant to Sections 3.13.070 and 3.13.080 of this chapter.

(Ord. 165 § 1, 2007)

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 Public Contract Code and criteria promulgated from time to time by the California Uniform Construction Cost Accounting Commission.

(Ord. 165 § 1, 2007)

Public projects of $60,000 or less may be performed by the employees of the City by force account, by negotiated contract or by purchase order.

(Ord. 165 § 1, 2007; Ord. 262 § 2, 2014; Ord. 312 § 2, 2018)

Public projects of $200,000 or less may be let to contract by the informal procedures set forth in this section.

A. The requesting department shall mail notices inviting informal bids. The notices shall be mailed to all qualified contractors on the list maintained as well as to all construction trade journals on the list referred to in Section 3.13.030 of this chapter, unless the product or service is proprietary.

B. The notices shall be mailed not less than 10 calendar days before the opening date of the bids. The notices shall describe the project in general terms, how to obtain more detailed information about the project, and state the time and place for the submission of bids.

C. The Director of Public Works in concurrence with the City Manager is authorized to award informal contracts and orders pursuant to this chapter. Orders shall be awarded to the lowest responsible bidder.

D. Bids shall be submitted to the City Clerk, who shall keep a record of all informal orders and bids for a period of six months after placement of the order. This record, while so kept, shall be open to public inspection.

E. If all bids received 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 the cost estimate of the public agency was reasonable.

F. If no bids are received, the project may be performed by employees of the City by force account or negotiated contract without further complying with this section.

(Ord. 165 § 1, 2007; Ord. 262 § 3, 2014; Ord. 312 § 3, 2018)

Public projects in excess of $200,000 must, except as otherwise provided in this chapter, be let to contract by the formal procedures set forth in this section.

A. Upon approval of the City Council, or as delegated, the requesting department shall send electronically, if available, by either facsimile or electronic mail and mail notices inviting formal bids. The notices shall be sent and mailed to all qualified contractors on the list maintained as well as to all construction trade journals on the list referred to in Section 3.13.030 of this chapter, unless the project or service is proprietary.

B. The notices shall be sent and mailed at least 10 calendar days before the date of opening the bids. The notices shall distinctly describe the project and state the time and place for submission and opening of bids.

C. The notice inviting bids shall be published at least 14 days before the opening date of the bids. Notice shall be published at least twice, not less than five days apart, in a newspaper of general circulation, printed and published in the City or, if there is none, in a newspaper of general circulation which is circulated within the City. If neither type of newspaper exists, the notice shall be posted in at least three public places in the City that have been designated by ordinance as places for placing public notices.

D. Sealed bids shall be submitted to the City Clerk and shall be identified as bids on the envelope. Bids shall be opened in public by the City Clerk or designee at the time and place stated in the public notices. A tabulation of all bids shall be open for public inspection during regular business hours for a period of not less than 30 calendar days after the bid opening.

E. Bidders on public construction projects shall be required to provide bidder's security. The bidder's security shall be an amount equal to 10% of the amount of the bid or as prescribed in the public notice inviting bids. The bidder's security shall be in one of the following forms:

1. Cash;

2. Cashier's check made payable to the City;

3. Certified check made payable to the City; or

4. Bidder's bond executed by an authorized surety insurer, made payable to the City.

F. Contracts shall be awarded by the City Council to the lowest responsible bidder except as otherwise provided in this chapter. The decision of the City Council shall be final.

G. In its discretion, the City Council may reject any bids presented. 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 herein;

2. By adoption of a resolution by a four-fifths vote of the City Council declaring that the project can be performed more economically by employees of the City, and may have the project done by force account without further complying with this section.

H. If two or more bids received are the same and lowest, the City Council may accept the one it chooses.

I. If no bids are received, the project may be performed by employees of the City by force account or by negotiated contract without further complying with this section.

J. The City Council shall have the right to waive any defect or informality in the bidding or in the procedures set forth in this section. No defect or informality shall void any contract entered into.

K. The City Council shall adopt plans, specifications and working details for all public projects subject to this section. Any person may examine the plans, specifications and/or working details adopted by the City Council for any project.

(Ord. 165 § 1, 2007; Ord. 224 §§ 1, 2, 2011; Ord. 262 § 4, 2014; Ord. 296 § 4, 2017; Ord. 312 § 4, 2018)

Following the award of a contract pursuant to this chapter, the contract may be amended by the issuance of a change order, provided the change which is the subject of amendment is reasonably related to the scope of the original contract. The requesting department will maintain control relative to the scoping, estimating, and negotiating of the proposed change(s) and the Director of Finance will certify the availability of funds for the proposed change in the event that the change order increases the contract cost. Unless the City Council sets a separate limit, change orders for projects pursuant to Section 3.13.070 which result in a total contract price of $200,000, or the informal bidding amount as increased pursuant to the California Uniform Construction Cost Accounting Act, or less may be approved by the City Manager. Any change orders for projects contracted for pursuant to Section 3.13.070 which results in a total contract price greater than $200,000, or the informal bidding amount as increased pursuant to the California Uniform Construction Cost Accounting Act, shall be approved by the City Council. Unless the City Council sets a separate limit, change orders for projects contracted for pursuant to Section 3.13.080, which in the aggregate do not exceed 10% of the original contract price may be approved by the City Manager. Any change orders for projects pursuant to Section 3.13.080 which are in excess of the foregoing 10% threshold must be approved by the City Council.

(Ord. 165 § 1, 2007; Ord. 219 § 3, 2010; Ord. 262 § 5, 2014; Ord. 312 § 5, 2018; Ord. 353 § 7, 2022)

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 Council, 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 Council shall comply with the following procedures:

1. The City Council shall make a finding, based on substantial evidence set forth in the minutes of its meeting, that the emergency will not permit a delay resulting from a competitive solicitation for bids, and that the action is necessary to respond to the emergency.

2. The City Council, pursuant to a four-fifths vote, may repair or replace a public facility, take any directly related and immediate action required by that emergency, and procure the necessary equipment, services and supplies for those purposes.

3. The City Council, by a four-fifths vote, may delegate by resolution or ordinance, to the City Manager, City Engineer or other nonelected City officer, the authority to order any action specified in subdivision (2) of this subsection.

4. If a person with authority delegated pursuant to this section orders any action specified in subdivision (2) of this subsection, that person shall report to the City Council, at its next meeting required pursuant to this section, the reasons justifying why the emergency will not permit a delay resulting from a competitive solicitation for bids and why the action is necessary to respond to the emergency.

5. If the City Council orders any action specified in subdivisions (1) and (2) of this subsection, the City Council shall review the emergency action at its next regularly scheduled meeting and, except as specified below, at every regularly scheduled meeting thereafter until the action is terminated, to determine, by a four-fifths vote, that there is a need to continue the action. If the City Council meets weekly, it may review the emergency action in accordance with this subdivision every fourteen days.

6. If a person with authority delegated pursuant to this section orders any action specified in subdivision (2) of this subsection, the City Council shall initially review the emergency action not later than seven days after the action or at its next regularly scheduled meeting if that meeting will occur not later than 14 days after the action, and at least at every regularly scheduled meeting thereafter until the action is terminated, to determine, by a four-fifths vote, that there is a need to continue the action, unless a person with authority delegated pursuant to this section has terminated that action prior to the City Council reviewing the emergency action and making a determination pursuant to this subsection. If the City Council meets weekly, it may, after the initial review, review the emergency action in accordance with this subdivision every 14 days.

7. When the City Council reviews the emergency action pursuant to subdivision (5) or (6) of this subsection, it shall terminate the action at the earliest possible date that conditions warrant so that the remainder of the emergency action may be completed by giving notice for bids to let contracts.

(Ord. 165 § 1, 2007)

Wherever hard copy bids, proposals or other responses to City solicitations are required in this chapter, the City may elect to substitute in and allow for electronic and/or digital bid, proposal or alternative responses pursuant to instructions specified by the City in the solicitation document.

(Ord. 353 § 8, 2022)

No officer or employee of the City shall be compensated, directly or indirectly, in connection with the award of any contract pursuant to this chapter. No member, officer or employee of the City, during the term of his or her service with the City and for two years following his or her termination of office or employment with the City, shall have any direct interest in any contract awarded hereunder, or obtain any present or anticipated material benefit arising therefrom.

(Ord. 165 § 1, 2007)

Nothing in this chapter shall preclude the City from utilizing the design-build project delivery method where authorized by and in accordance with the provisions and requirements set forth in Public Contract Code Section 22160 et seq., as it may be amended from time to time.

(Ord. 290 § 2, 2016)