Montebello Municipal Code Ch. 3.20 Purchasing System

Footnotes:

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Editor's note— Ord. No. 2412, § 2, adopted Feb. 27, 2019, amended Ch. 3.20 in its entirety to read as herein set out. Former Ch. 3.20, §§ 3.20.010—3.20.130, pertained to similar subject matter, and derived from the prior code §§ 2900, 2901, 2903—2912; Ord. 2045, 1991; Ord. 2070, 1992; Ord. 2088, 1993; Ord. 2315, 2008; Ord. No. 2410, 3-27-2019.

In order to establish efficient procedures for the purchase of supplies and equipment, to secure the city supplies and equipment at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases, to clearly define authority for the purchasing function and to assure the quality of purchases, a purchasing system is adopted.

This chapter also establishes efficient procedures for the adoption and implementation of the provisions of the California Uniform Construction Cost Accounting Act [Section 22000, et seq. of the Public Contract Code]) as they relate to public works defined under Public Contract Code 22002.

(Ord. No. 2412, § 2, 2-27-2019; Ord. No. 2419, § 3, 2-26-2020; Ord. No. 2447, § 3, 2-9-2022)

The director of finance shall be ex officio purchasing officer under the direction of the city manager and the words "purchasing officer" as used in this chapter shall be deemed to refer to the director of finance or his or her duly authorized designee. The purchasing officer shall have the duty and authority to:

A. Purchase or contract for supplies and equipment required by any using agency in accordance with purchasing procedures prescribed by this chapter, such administrative regulations as the purchasing officer shall adopt and such other rules and regulations as shall be prescribed by the city council;

A. Purchase or contract for supplies and equipment required by any using agency in accordance with purchasing procedures prescribed by this chapter, such administrative regulations as the purchasing officer shall adopt and such other rules and regulations as shall be prescribed by the city council;

B. Negotiate and recommend execution of contracts for the purchase of supplies and equipment;

C. Act to procure for the city the needed quality in supplies and equipment at least expense to the city;

D. Discourage uniform bidding and endeavor to obtain as full and open competition as possible on all purchases;

E. Prepare and recommend to the city council rules governing the purchase of supplies and equipment for the city;

F. Prepare and recommend to the city council revisions and amendments to the purchasing rules;

G. Keep informed of current developments in the field of purchasing, prices, market conditions and new products;

H. Prescribe and maintain such forms as are reasonably necessary to the operation of this chapter and other rules and regulations;

I. Supervise the inspection of all supplies and equipment purchased to ensure uniform conformance with specifications;

J. Recommend the transfer of surplus and unused supplies and equipment between departments as needed and the sale of all supplies and equipment which cannot be used by any agency or which have become unsuitable for city use;

K. Maintain a bidders' list, vendors' catalog file and records needed for the efficient operation of the purchasing function;

L. Maintain a list of duly authorized designees and the authorization limits, which shall be less than fifty thousand dollars for each designee.

(Ord. No. 2412, § 2, 2-27-2019; Ord. No. 2447, § 3, 2-9-2022)

The purchasing officer, with approval of the city council, may authorize, in writing, any agency to purchase or contract for specified supplies and equipment independently of the purchasing function, but he shall require that such purchases or contracts shall be made in conformity with the procedures established by this chapter and shall further require periodic reports from the agency on the purchases and contracts made under such written authorization.

(Ord. No. 2412, § 2, 2-27-2019; Ord. No. 2447, § 3, 2-9-2022)

Using agencies shall submit requests for services, supplies and equipment to the purchasing officer by standard requisition forms.

(Ord. No. 2412, § 2, 2-27-2019; Ord. No. 2447, § 3, 2-9-2022)

Purchases of supplies and equipment for city use shall be made and accomplished in conformity with Section 3.20.080 or Section 3.20.090 except:

A. Emergency Procurement: When an emergency, as determined by the purchasing agent with the approval of the city manager in writing, is deemed to require that an order be placed with the nearest available source of supply;

B. Sole/Single Source Goods and/or Services: When the supplies and equipment needed can be obtained from one source only, such that written declaration of such will be required and noted by standard forms;

C. Standardization of Goods and/or Services: When goods and/or services are required to maintain consistent operation or function to an existing technology or public safety system or program already in use by the city. Examples of items lending themselves to standardization are computer equipment, computer hardware and software products, public safety equipment such as ammunition, ballistic vests, light bars, mobile radios, camera systems, and fire apparatus. The purchasing officer shall have discretion in determining what goods and/or services fall within this category:

D. City Council Authorization: When the city council by a four-fifths vote determines to dispense with such bidding and other procedures required by the above-mentioned sections in every individual instance upon a finding by the city council that it would be impractical, useless, or uneconomical in such instance to follow the procedures, and that the welfare of the public would be promoted by dispensing with the same;

E. Less than Two Thousand Dollars: When the amount of the purchase involved is less than two thousand dollars and cumulative citywide purchases from a single vendor/consultant/firm/etc. have not exceeded this amount during the fiscal year (July 1 - June 30);

F. Cooperative Purchase - Purchases for goods and/or services that are identical or nearly identical in scope to the goods and/or services listed in any valid, current and competitively bid cooperative governmental purchase program. Pricing shall be the same or better than the pricing contained in the cooperative purchase agreement. For the purposes of this Section, the term "cooperative governmental purchase program" means any combination between the city and any other public agency or public agencies for the joint purchase of goods and/or services.

G. Piggyback Purchase - If the Purchasing Officer determines it to be in the best interest of the city, the Purchasing Officer is authorized to "piggyback" onto or join into an existing written purchase contract obtained through a competitive bidding process prepared by and awarded by another local, state or federal government agency.

H. Professional Services: Nothing shall be construed to preclude the city from awarding a written contract for professional type services, as defined by case or statutory law, without complying with the provision of this article. The term "professional services" means services entailing a high degree of specialized technical or mental skill, in a recognized field of expertise. Such services include attorneys, physicians, architects, engineers, appraisers, accountants, collection agency, detective agency, draftsman, mortuary, hospitals, escrow agency, travel agency, insurance broker, employment agency, advertising agency, real estate, chiropractic and optometry.

I. Solicitation of Bids with No Response: Where competitive bids or proposals have been solicited and no bid or proposal has been received. In such a situation the Purchasing Manager may proceed to have the services performed or the goods procured without further competitive bidding;

J. Compliance: Compliance with the requirements set forth in the provisions of this chapter shall apply to all contracts awarded after the effective date of this subsection, as may be amended.

K. Maximum Contract Term: Notwithstanding the exceptions under this section, no commitment or contract with a definitive term may exceed five years.

Any use or application of the bidding procedure exceptions listed herein for the purchase of supplies and equipment for city use shall require the making of a written record of such use or application, including the existence of a valid reason for such use or application. In addition, the exception identified and the reason for applying the exception, along with the written record of such use or application, shall be included and explained in the agenda report submitted to the city council seeking approval of the exception. This written record shall be kept for at least five years.

(Ord. No. 2412, § 2, 2-27-2019; Ord. No. 2447, § 3, 2-9-2022; Ord. No. 2460, § 2, 1-25-2023; Ord. No. 2481, § 2, 3-26-2025)

A. The purchase of goods and/or services including contracts and/or professional services agreements totaling two thousand dollars or more shall be made by purchase order. Exceptions may be processed by request for warrant and shall be limited to dues and subscriptions, travel, registration costs for training, conferences and meeting expenses, postal services, courier services, telephone, gas, electricity, water, internet, cable, cellular and other utilities, and payments that are not good and/or service items such as, pay for elected officials, commissions, police reserve and auxiliary firefighters, stipends, honorariums, pass-through payments, donations, legal fees, legal settlements, claims and expenses, reimbursements, refunds, replenishment of petty cash funds, contracts, debt service, letter of credit fees, payments to other government agencies, FICA, PERS, employee group insurance, workers' compensation premiums, insurance premiums, and any other required payroll function/personnel related payments.

B. Also exempted is the purchase of inventory stock replenishment for all stores materials.

C. The finance director may authorize any variance up to ten percent of the original purchase order price, in addition to sales tax and shipping.

D. No commitment or contract with a definitive term may exceed five years.

(Ord. No. 2412, § 2, 2-27-2019; Ord. No. 2447, § 3, 2-9-2022)

Except in cases of emergency, the purchasing officer shall not issue any purchase order for services, supplies or equipment unless there exists an unencumbered appropriation in the fund account against which the purchase is to be charged.

(Ord. No. 2412, § 2, 2-27-2019; Ord. No. 2447, § 3, 2-9-2022)

Except as otherwise provided herein, purchases and contracts for supplies and equipment of an estimated value of fifty thousand dollars or more for contracts which do not constitute a public project as defined by Section 22002 of the Public Contract Code, shall be by written contract with the lowest responsible bidder pursuant to the procedure prescribed herein.

A. Notice Inviting Bids. Notices inviting bids shall include a general description of the articles to be purchased, shall state where bid blanks and specifications may be secured and the time and place for opening bids.

1. Published Notice. Notices inviting bids shall be published at least ten days before the date of opening of the bids. Notice shall be published at least once via the city's website or in a newspaper of general circulation, printed and published in the city, or if there is none, it shall be posted in at least three public places in the city that have been designated by ordinance as the places for posting public notices.

2. Bidders' List. The purchasing officer shall also solicit sealed bids from all responsible prospective suppliers whose names are on the bidders' list or who have requested their name be added thereto.

B. Bidders' Security. When deemed necessary by the purchasing officer, bidders' security may be prescribed in the public notices inviting bids. Bidders shall be entitled to return of bid security; provided that a successful bidder shall forfeit his bid security upon refusal or failure to execute the contract within ten days after the notice of award of contract has been made, unless the city is responsible for the delay. The city council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the city council awards the contract to the next lowest bidder, the amount of the lowest bidders' security shall be applied by the city to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder.

C. Bid Opening Procedure. Sealed bids shall be submitted to the purchasing officer and shall be identified as bids on the envelope or via electronic method. Bids shall be opened in public at the time and place stated in the public notices. A tabulation of all bids received shall be open for public inspection via the city's website or posted during regular business hours for a period of not less than thirty calendar days after the bid closing.

D. Rejection of Bids. In its discretion, the city council may reject any and all bids presented and re-advertise for bids. City staff shall confirm, prior to any award, that bidders are in good standing with all applicable agencies, and maintain all required licenses, including but not limited to SAM.gov, the contractors state licensing board, business licenses, etc. Any bidders lacking the required licensure requirements or are not in good standing with the applicable agencies may not be eligible for the award pursuant to the applicable regulations.

E. Award of Contracts. Contracts shall be awarded by the city council to the lowest responsible bidder except as otherwise provided herein.

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 the one it chooses or accept the lowest bid made by negotiation with the tie bidders at the time of bid opening.

G. Performance Bonds. The city council shall have authority to require a performance bond before entering a contract in such amount as it shall find reasonably necessary to protect the best interests of the city. If the city council requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids.

H. No commitment or contract with a definitive term may exceed five years unless determined to be in the public's best interest by the city council.

(Ord. No. 2412, § 2, 2-27-2019; Ord. No. 2419, § 3, 2-26-2020; Ord. No. 2447, § 3, 2-9-2022; Ord. No. 2481, § 2, 3-26-2025)

Purchases of supplies and equipment of an estimated value in the amount of less than fifty thousand dollars for contracts which are not for a public project as defined by Section 22002 of the Public Contract Code, may be made by the purchasing officer in the open market without observing the procedure prescribed by Section 3.20.080.

A. Minimum Number of Bids. Open market purchases shall, wherever possible, be based on at least three bids, and shall be awarded to the lowest responsible bidder.

B. Notice Inviting Bids. The purchasing officer shall solicit bids by written requests to prospective vendors or by telephone or by electronic mail (email) or by public notice posted on a public bulletin board in the city hall.

C. Written Bids. Written bids or quotations shall be submitted to the purchasing officer or designee who shall open them and keep a record of all open market orders and bids for a period of one year after the submission of bids or the placing of orders, or as long as directed by a city council adopted records retention schedule. This record, while so kept, shall be open to public inspection.

D. No commitment or contract with a definitive term may exceed five years.

(Ord. No. 2412, § 2, 2-27-2019; Ord. No. 2419, § 3, 2-26-2020; Ord. No. 2447, § 3, 2-9-2022)

The purchasing officer shall inspect supplies and equipment delivered to determine their conformance with the specifications set forth in the order or contract. The purchasing officer shall have authority to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications.

(Ord. No. 2412, § 2, 2-27-2019; Ord. No. 2447, § 3, 2-9-2022)

Whenever bids are required by law or by this code for the letting of contracts, the doing of work or the furnishing of supplies, equipment or materials, all of the steps, acts and proceedings required by law or by this code shall be fully complied with, and in particular and supplementary to the acts, steps and procedures, the procedure hereinafter set forth in this section regulating the notices inviting bids, the publication and posting of the notices, and the opening of the bids shall be followed:

A. Notice—Contents. The notice inviting bids shall set a date for the opening of bids. All such notices, whether mailed, published, or posted, shall state the date, the hour, and the place at which the bids called for are to be opened, and shall also state the date, the hour, and the place of the city council meeting at which the city council intends to take action on the bids.

B. Bids—Opening. All bids shall be returnable to the purchasing officer or to the office of the city clerk, and at the hour and date stated in the notice, all bids shall be publicly opened at the office of the city clerk in the presence of the city clerk, purchasing officer, a representative of the department, or departments, to which the purchase or contract is to be charged, and all other interested parties who wish to attend and witness the opening of the bids. As each bid is opened, it shall be read aloud so that all persons interested in the bidding may hear the contents thereof, although no more of the bid need be read or announced than would ordinarily be announced in an open city council meeting for the same purpose. From and after the time of their opening, the city clerk shall, upon request of any interested party, read or give such further information from the bid as may be requested.

C. Bids—Compiling. After they have been opened, all bids shall be examined and studied by the city clerk, purchasing officer and any other officials necessary for the proper analysis of the bids to see if they comply with the notice inviting bids and are in all other respects in good order. City staff shall confirm, prior to any award, that bidders are in good standing with all applicable agencies, and maintain all required licenses, including but not limited to SAM.gov, the contractors state licensing board, business licenses, etc. Any bidders lacking the required licensure requirements or are not in good standing with the applicable agencies may not be eligible for the award pursuant to the applicable regulations. A report shall then be made by the appropriate department to the city council announcing the results of the investigation and particularly designate which bid is found to be the lowest bid, the next lowest bid, and all of the other bids in ascending order of the figure or figures quoted.

D. Bids—Report—Awarding.

1. At the meeting of the city council at which the bids are acted upon, the report shall be read publicly and the bid of the lowest bidder shall be publicly announced.

2. After having complied with the foregoing procedure, the city council shall proceed in accordance with applicable provisions of law or this code either to award the bid and to let the contract therein referred to, or to take such other action as may be authorized by law.

E. Officer—Deputies. In the absence of the city clerk or purchasing officer, a duly authorized assistant or deputy may act in his place.

(Ord. No. 2412, § 2, 2-27-2019; Ord. No. 2447, § 3, 2-9-2022; Ord. No. 2481, § 2, 3-26-2025)

A. Whenever the city council finds that the public interest and convenience require, it may enter into joint purchasing agreements for the acquisition of services, supplies and/or equipment, with any other public agency; provided, that such agreements are authorized by the laws of the state.

B. The provisions of this chapter shall not apply to purchases made under such an agreement: provided, that the city council shall, by resolution, prior to the execution of such an agreement, establish rules for administrative practices to be followed by the purchasing agent with respect to such joint purchasing agreements.

(Ord. No. 2412, § 2, 2-27-2019; Ord. No. 2447, § 3, 2-9-2022)

A. The purchasing officer may arrange for the city and enter into purchase contracts with a vendor(s) for the purchase of supplies, equipment, services, including, but not limited to, materials, vehicles and apparatus, the pricing and terms of which have been previously established by another local, county, state, federal or other public entity, school district, League of California Cities, California Communities Program, or other nonprofit association or group consisting of governmental entities, provided that:

1. The purchase contract with the vendor(s) is the result of competitive bidding or negotiation and is made in compliance with the competitive bid or proposal requirements of any participating entity or organization;

2. The agreement or purchase order must be valid/not expired and the vendor/consultant has provided written authorization for the city to make purchases using the same (or lower) pricing.

3. The purchase conforms to the city's specifications for the item or service; and

4. The estimated price of the purchase is lower than that estimated for the purchase if made directly by the city pursuant to this chapter.

B. Notwithstanding subsection 3.20.125(A), approval of a "piggyback" purchasing agreement pursuant to this section shall be obtained from city council for an award of a purchase in an amount of fifty thousand dollars or more.

(Ord. No. 2412, § 2, 2-27-2019; Ord. No. 2447, § 3, 2-9-2022)

A. Whenever practical, the purchasing officer shall first ascertain the availability of goods and services from responsible local sources within city limits before considering outside sources and, if available, shall (as provided for in Section 3.20.050) solicit formal and/or informal bids from responsible local sources seeking the best price, quality, and delivery possible that best serves the interests of the city.

B. The purchasing officer may seek competitive pricing outside the city when it is determined that the best interests of the city related to price, quality and delivery will not be served by local sources.

C. The purchasing officer may establish competitively priced purchase agreements, open purchase, and blanket purchase orders with responsible local vendors via written quotes or negotiated agreement as provided for in Section 3.20.050.

D. For purposes of determining final cost, city of Montebello vendors may be allowed a one percent allowance in determination of low bid based upon estimated sales and business tax return and local service convenience, except when such an allowance is prohibited by the grantor of funds to purchase such goods and services. All requests for sealed bids must include notification of local vendor allowance.

(Ord. No. 2412, § 2, 2-27-2019; Ord. No. 2447, § 3, 2-9-2022)

A. No officer or employee of the city or its agencies shall split or separate a purchase/procurement of services, supplies and/or equipment for the purpose of evading the dollar amount bid threshold provisions of this chapter. The acquisition of services, supplies and/or equipment shall be made with a single contract covering all services to be provided.

B. No city employee who participates in the selection or approval of a vendor supplying services, supplies and/or equipment to the city, nor any person who has supervisory responsibility for any such employee, shall have a direct financial interest in any business entity under consideration.

(Ord. No. 2447, § 3, 2-9-2022)

A. Adoption of Uniform Public Construction Cost Accounting Act. The city has elected to be subject to the Uniform Public Construction Cost Accounting Act (hereinafter referred to as the "UPCCA" or the "Act"). City contracts for public projects and maintenance work shall be governed by applicable state laws including the Act, Public Contract Code Section 22000 et seq, and the California Uniform Construction Cost Accounting Commission's (hereinafter, "UPCCA Commission") policies and procedures manual and cost accounting review procedures, as amended from time to time.

The term "public works" shall mean the same as the term "public project," as defined by the Act, which 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; and (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 two hundred thirty thousand volts and higher.

The term "maintenance work," as defined by the Act, includes: (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 at less than one inch; (4) landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems; and (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 two hundred thirty thousand volts and higher.

Public projects and maintenance work shall be procured through the procedures and at the monetary thresholds set forth in the Act and as further described in this chapter.

B. Pre-Bid Contractors List for Public Projects and Maintenance Work. The city shall develop and maintain a list of qualified contractors, identified according to categories of work for all projects and any scheduled projects, on an annual basis in accordance with the Act (Public Contract Code Section 22034(a)).

C. Contracts for Public Projects and Maintenance Work of Sixty Thousand Dollars or Less. Public projects and maintenance work of sixty thousand dollars or less (or the current amount specified in the Act) may be performed by city employees, by force account, by negotiated contract or by purchase order. Where it is anticipated that a project may be conducted and finished at a cost of sixty thousand dollars (or the amount as specified the Act) or less, the city manager or his/her designee is authorized to approve the project, provided the expenditure is within the approved budget.

D. Contracts for Public Projects and Maintenance Work of Two Hundred Thousand Dollars or Less. Public projects and maintenance work estimated to cost two hundred thousand dollars (or the amount as specified in the Act) or less may be procured through the following informal procedures prescribed by the Act:

1. Notice Inviting Informal Bids. The city manager or his/her designee shall send a notice inviting informal bids not less than ten calendar days before bids are due to: (a) all contractors on the list of qualified contractors developed by the UPCCA Commission; or (b) all contractors on the list of qualified contractors and to the designated construction trade journals specified in Section 22036 of the Public Contract Code. The notice inviting informal bids shall describe the project, how to obtain more detailed information about the project, and the time, date and place for the submission of bids. Additional contractors and/or construction trade journals may be notified at the discretion of the department soliciting bids, provided however:

a. If there is no list of qualified contractors maintained by the city for the particular category of work performed, the notice inviting bids shall be sent only to the construction trade journals specified by the commission.

b. If the product or service 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.

2. Distribution of Bid Documents. Bid documents may be transmitted and/or received via mail, facsimile, or email notice inviting informal bids to all construction trade journals specified in Section 22036 of the Public Contract Code.

3. Award of Contracts. The city manager or his/her designee is authorized to award such informal public projects and maintenance work, provided the expenditure is within the approved budget and in a form approved by the city attorney. The city manager or his/her designee may, at his/her sole discretion, reject any or all bids presented and waive any minor irregularity or informality in such bids. City staff shall confirm, prior to any award, that bidders are in good standing with all applicable agencies, and maintain all required licenses, including but not limited to SAM.gov, the contractors state licensing board, business licenses, etc. Any bidders lacking the required licensure requirements or are not in good standing with the applicable agencies may not be eligible for the award pursuant to the applicable regulations. The contract shall be awarded to the lowest responsive, responsible bidder. If two or more bids are the same and the lowest, the city manager may accept the one he/she chooses. If no bids are received through the informal procedure, the project may be performed by city employees, by force account or negotiated contract without further complying with this section.

4. Informal Bids Between Two Hundred Thousand Dollars and Two Hundred and Twelve Thousand Five Hundred Dollars. If all bids received are in excess of the amount specified in this section, the city council may, by adoption of a resolution by a four-fifths vote, award the contract, at two hundred and twelve thousand five hundred dollars or less, to the lowest responsible bidder, if it determines the cost of the estimate of the city was reasonable.

E. Contracts for Public Projects and Maintenance Work Greater Than Two Hundred Thousand Dollars. Public projects and maintenance work of more than two hundred thousand dollars (or the current amount as specified in the Act) shall be procured through the following formal bidding procedures prescribed by the Act:

1. Notice Inviting Formal Bids. The city manager or his/her designee shall publish a notice inviting formal bids for public projects and maintenance work at least fourteen calendar days before the bid opening date in a newspaper of general circulation in the city. Additionally, the city manager or his/her designee shall send a notice inviting formal bids to all contractors on the list of qualified contractors and to the designated construction trade journals specified in Section 22036 at least fifteen calendar days before bids are due. The notice shall describe the project, how to obtain more detailed information about the project, and the time and place for submission of bids.

2. Bidder's Security. All bids presented in connection with the public project shall be accompanied by bidder's security in the form and amount prescribed by Public Contract Code Section 20170, which security shall be dealt with as prescribed therein. In all cases bidders shall be entitled to return of bid security provided that a successful bidder shall forfeit its bid security upon refusal or failure to execute the contract within ten days after the notice of award of contract has been mailed, unless the city is responsible for the delay. The city council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the city council awards the contract to the next lowest bidder, the amount of the lowest bidder's security shall be applied by the city to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder.

3. Bid Opening Procedure. Sealed bids shall be submitted to the department identified in the invitation for bid documents and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the public notice. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than thirty calendar days after the bid opening.

4. Award of Contracts. Contracts shall be awarded by the city council to the lowest responsible bidder. The city council may, in its sole discretion, waive minor irregularities in the bids or in the bidding procedures. City staff shall confirm, prior to any award, that bidders are in good standing with all applicable agencies, and maintain all required licenses, including but not limited to SAM.gov, the contractors state licensing board, business licenses, etc. Any bidders lacking the required licensure requirements or are not in good standing with the applicable agencies may not be eligible for the award pursuant to the applicable regulations. The city council may reject all bids presented, and re-advertise for bids.

5. Tie Bids and No Bids. If two or more bids are the same and the lowest, the city council may accept the one it chooses. If no bids are received through the formal procedure, the project may be performed by city employees, by force account or negotiated contract without complying with this section.

6. Rejecting Bids and Performing Project through City Employees. 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 city, 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 hearing at which the city intends to reject the bid. If after the first invitation of bids, all bids are rejected, the city shall reevaluate its cost estimates of the project and either:

a. Abandon the project or re-advertise for bids in the manner described by this section; or

b. May have the project completed by force account without further complying with this section, if it passes a resolution by a four-fifths vote of the city council declaring that the project can be performed more economically by the employees of the city.

7. Performance Bonds. The department head shall have authority to require a performance bond before entering a contract in such amount as he or she finds reasonably necessary to protect the best interests of the city. If the city manager requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids.

F. Emergencies.

1. In cases of emergency when repair or replacements are necessary, the city council, pursuant to a four-fifths vote, 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. The city council's authority under this section may be exercised pursuant to Public Contract Code Section 22035.

2. In case of 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 Contracting Code (commencing with Section 22050).

3. City council delegates to the city manager, the authority to order any direct and immediate action necessary to repair or replace a public facility, procure the necessary equipment, services and supplies for the purposes of addressing an emergency, without giving notice for bids to let contracts per Paragraph 2 of this section. If the city manager orders any action specified under this section, the city manager shall report to city council at its next meeting as required under Section 22050 of the Public Contract Code.

G. Contracts for Public Works Transportation Construction Projects Funded by Federal and State Funds. The requirements herein apply to the procurement and administration of Federal Highway Administration (FHWA) federal-aid funded construction projects subject to the provisions of 23 U.S.C. 112(a) (related to construction). The California Department of Transportation (Caltrans) Local Assistance Procedures Manual shall be used when the city administers a federal-aid construction project. The following grant and contract management procedures shall apply:

1. Bidding Procedures. One of the most basic tenets of federal-aid contracting is that construction contracts are to be awarded competitively to the contractor which submits the lowest responsive bid. This federal mandate is set forth in 23 U.S.C. 112 and reinforced by 23 CFR 635.114(a) which states: Federal-aid contracts shall be awarded only on the basis of the lowest responsive bid submitted by a bidder meeting the criteria of responsibility as may have been established by the SHA. Project advertisement is the process used in soliciting such competitive bids from contractors. Chapter 15 of the LAPM, titled: Advertise and Award Project, shall be followed for all bidding activities beginning with advertising of a construction contract and continuing through the bid opening, award, and detail estimate procedures.

2. Advertisement. For construction contracts administered by Caltrans, the advertisement period of the project should be a minimum of three weeks per LAPM. A failure to advertise for the appropriate amount of time could result in the loss of federal and/or state funding for the project.

3. Required Federal Contract Language. The city shall ensure all required federal contract language is included and shall refer to Chapter 12 of the LAPM, titled Plans Specifications and Estimates for the most current requirements.

4. Person in Responsible Charge. Federal statutes require the local public agency to provide a full-time agency employee who is accountable for any federal-funded project they administer. This individual is the person in responsible charge of the project (23 CFR 172.9(d)(1)). The person designated in responsible charge must be a public agency employee but does not need to be an engineer. The city shall follow Chapter 16 of the LAPM, titled Administer Construction Contracts, for procedures and guidelines local public agencies must follow when administering the construction of federal-aid projects.

5. Records Retention/Contract Project Files. Federal-aid highway program funding recipients and sub-recipients must maintain adequate and readily accessible project performance and financial records, supporting documents, and other records considered pertinent to the grant agreement and in compliance with federal laws and regulations (e.g. 23 USC 112, 40 USC 1101-1104, 23 CFR 172, 48 CFR 31, and 2 CFR Part 200). These records must be maintained for a minimum of three years. Chapter 16 of the LAPM, titled Administer Construction Contracts, shall be the procedures and guidelines for the city when administering the construction of federal-aid projects.

6. Invoicing. When requesting reimbursement of federal funds for construction contracts, the city must follow the procedures given in Chapter 5 of the LAPM, titled Invoicing. The city must ensure only eligible costs are claimed on invoices submitted to Caltrans, that billing is reviewed and approved prior to invoicing Caltrans, and request for reimbursement are submitted to Caltrans at least once every six months, or as required in the agreement between Caltrans and the city.

7. Project Responsibility. All responsibility of a construction contract funded by state and/or federal dollars will reside with the city and not the State of California. Language in the contracts should read that the state does not have the right to assume full and direct control of the contract.

(Ord. No. 2419, § 4, 2-26-2020; Ord. No. 2447, § 3, 2-9-2022; Ord. No. 2481, § 2, 3-26-2025)