Merced Municipal Code Art. IV Public Works Contracts

Pursuant to Section 1109 of the Charter, every project, not otherwise exempt by the Charter, involving an expenditure of more than fifty thousand dollars ($50,000.00) for the construction or improvement of public buildings, works, streets, drains, sewers, utilities, parks and playgrounds shall be let by written contract with the lowest responsible bidder in accordance with the procedure described in this article. The expenditure threshold set forth above shall be adjusted as required by Section 1109 of the Charter.

(Ord. 2298 § 1, 2008: Ord. 1241 § 1 (part), 1979: prior code § 2.30(A)).

The finance officer shall prepare administrative regulations for consideration by the city manager to implement the provisions of Section 3.04.220 hereof.

(Ord. 2298 § 2, 2008).

Notices inviting bids shall be published by the purchasing supervisor at least once in the official newspaper, and the first such notice shall be published at least ten (10) days before the date of opening the bids. In addition to the published notice, the purchasing supervisor shall serve the best interests of the city through soliciting bids from prospective vendors and contractors by direct mail requests, by notice on official city bulletin boards, or by any other means which he determines to be advantageous to the city. Notices inviting bids shall include a general description of the materials, supplies, equipment or contractual services to be purchased, shall state where bid blanks and written specifications may be secured, and shall designate the date, time and place for opening bids.

(Amended during 8-08 supplement; Ord. 1241 § 1 (part), 1979: prior code § 2.30(B)).

When deemed necessary by the purchasing supervisor or the city council, bidder's security may be prescribed in the public notice inviting bids. Bidders shall be entitled to return of bid security; provided, however, that a successful bidder shall forfeit his bid security upon his refusal or failure to execute the contract within ten (10) calendar days after the notice of award of contract has been mailed, unless the city is responsible for the delay. The city council, on refusal or failure of the successful bidder to execute the contract, may award it to the next lowest responsible bidder, the amount of the lowest bidder's security shall be applied by the city to the contract price differential between the lowest bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder.

(Amended during 8-08 supplement; Ord. 1241 § 1 (part), 1979: prior code § 2.30(C)).

Sealed bids shall be submitted to the purchasing supervisor, shall be identified as "bid" on the envelope, and shall be opened in public on the date, at the time and place stated in the public notices.

(Amended during 8-08 supplement; Ord. 1241 § 1 (part), 1979: prior code § 2.30(D)).

The purchasing supervisor shall tabulate all bids received and after consultation with the appropriate department head forward the summary to the city manager, through proper authority, with a recommendation as to the best and lowest bid. The city manager shall forward the summary and recommendation, with any comments, to the city council. A tabulation of all bids received shall be available for public inspection. Such records may be destroyed after two (2) years.

(Amended during 8-08 supplement; Ord. 1241 § 1 (part), 1979: prior code § 2.30(E)).

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 of readvertising for bids, the city council, in its discretion, may accept the one it chooses, or accept the lowest bid made by and after negotiation with the tie bidders at the time of the bid opening.

(Ord. 1241 § 1 (part), 1979: prior code § 2.30(F)).

The city council, in its discretion, when it is in the best interests of the city to do so, may waive any informalities or minor irregularities in any bid process, may reject any or all bids, or may accept the bid that best serves the public purpose even though it may not be the lowest. The city council may readvertise for bids or, except as otherwise provided in this chapter, proceed with the purchase of the materials, supplies, equipment or contractual services by negotiation in the open market.

(Ord. 1241 § 1 (part), 1979: prior code § 2.30(G)).

The city council, after rejecting all bids, or if no bids are received, may declare and determine that, in its opinion, based on estimates approved by the city manager, the work in question may be performed better or more economically by the city with its own employees and after the adoption of a resolution to this effect by at least five (5) affirmative votes, the council may proceed to have the work done in the manner stated.

(Ord. 1241 § 1 (part), 1979: prior code § 2.30(H)).

Contracts for public works projects exceeding the sum of fifty thousand dollars ($50,000.00), as the same may be adjusted from time to time pursuant to Section 1109 of the Charter, may be let without advertising for bids if such work shall be first determined and authorized by the city manager and thereafter confirmed by the city council to be of urgent necessity for the preservation of life, health, or property, and shall be authorized by motion passed by at least five (5) affirmative votes of the city council and containing a declaration of the facts constituting such urgency.

(Ord. 2298 § 3, 2008: Ord. 1241 § 1 (part), 1979: prior code § 2.30(I)).

The city council, before entering into a contract, may require a performance bond in an amount as it shall find reasonably necessary to protect the best interests of the city. When a performance bond is required, the form and amount of the bond shall be described in the notice inviting bids.

(Ord. 1241 § 1 (part), 1979: prior code § 2.30(J)).

No undertaking involving amounts in excess of fifty thousand dollars ($50,000.00), as the same may be adjusted from time to time pursuant to Section 1109 of the Charter, shall be split into parts so as to produce amounts of fifty thousand dollars ($50,000.00) or less for the purpose of avoiding the provisions and restrictions of this article.

(Ord. 2298 § 4, 2008: Ord. 1241 § 1 (part), 1979: prior code § 2.30(K)).