Seal Beach Municipal Code § 1010.5 Design-Build Contracts on Public Works

The fiscal year of the City government shall begin on the first (1st) day of July of each year and end on the thirtieth (30th) day of June of the following year.

At such date as he/she shall determine, the City Manager shall obtain from each department head estimates of revenue and expenditures for his/her department, detailed in such manner as may be prescribed by the City Manager. In preparing the proposed annual or bi-annual budget, the City Manager shall review the estimates, hold conferences thereon with the respective department heads and may revise the estimates as the manager may deem advisable.

(Amended 2002)

At least 35 days prior to the beginning of each fiscal year, the City Manager shall submit to the City Council the proposed budget as prepared by him/her. After reviewing same and making such revisions as it may deem advisable, the City Council shall determine the time for the holding of a public hearing thereon and shall cause to be published a notice thereof not less than 10 days prior to said hearing, by at least one insertion in the official newspaper. Copies of the proposed budget shall be available for inspection by the public in the office of the City Clerk at least 10 days prior to said hearing.

At the time so advertised or at any time to which such public hearing shall from time to time be adjourned, the City Council shall hold a public hearing on the proposed budget, at which interested persons desiring to be heard shall be given such opportunity.

After the conclusion of the public hearing the City Council shall make any revisions of the proposed budget that it may deem advisable and on or before June 30th, it shall adopt the budget. A copy thereof, certified by the City Clerk, shall be filed with the person retained by the City Council to perform auditing functions for the Council and a further copy shall be placed, and shall remain on file, in the office of the City Clerk where it shall be available for public inspection. The budget so certified shall be reproduced and copies made available for the use of the public and of departments, offices and agencies of the City.

From the effective date of the budget, the several amounts stated therein as proposed expenditures shall be and become appropriated to the several departments, offices, and agencies for the respective objects and purposes therein named. All appropriations shall lapse at the end of the fiscal year to the extent that they shall not have been expended or lawfully encumbered.

At any meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative votes of at least three members so as to authorize the transfer of unused balances appropriated for one purpose to another purpose or to appropriate available funds not included in the budget or to cancel any appropriation not expended or encumbered.

Under the control and direction of the City Manager there shall be established a centralized purchasing system for all City departments and agencies, except as otherwise in this Charter provided.

Unless a majority of the city electors voting at an election held for that purpose are in favor of it, annual property tax shall not exceed one dollar ($1.00) on each $100 exclusive of such tax as may be necessary to pay the costs of any pension plan for City employees adopted pursuant to Article 2, Chapter 2, of Division 5, exclusive of such tax, not to exceed five cents ($0.05) on each $100, as may be necessary to pay the costs of civil defense or disaster preparedness, exclusive of such tax as may be necessary to pay the costs of sewerage facilities, exclusive of such tax as may be necessary to pay the costs of park and recreation facilities and exclusive of such tax in addition to the annual tax levy for other municipal purposes authorized by Sections 20532, 37465, 37558, and 43069 of the Government Code, Section 5304 of the Public Resources Code and Section 22241 of the Education Code, as they now exist or forever may be amended.

The procedure for the assessment, levy and collection of taxes upon property, taxable for municipal purposes, may be prescribed by ordinance of the City Council.

The City shall not incur indebtedness evidence by general obligation bonds, which shall in the aggregate exceed the sum of 15% of the total assessed valuation, for purposes of City taxation, of all the real and personal property within the City.

No bonded indebtedness which shall constitute a general obligation of the City may be created unless authorized by the affirmative votes of 2/3 of the electors voting on such proposition at any election at which the question is submitted to the electors and unless in full compliance with the provisions of the State Constitution and of this Charter.

The City Council shall adopt policies and procedures governing contracting for public works which are defined to include the construction or improvement of public buildings, works, streets, drains, sewers, utilities, parks or playgrounds. The City Council may, in its sole discretion, adopt selected policies and procedures by reference to State law, but no State law shall govern public works contracting unless it is expressly adopted by the City Council or has been finally determined to be applicable to all charter law cities by an appellate court with jurisdiction over the City of Seal Beach. Except as otherwise provided in this Charter or by State law made applicable to the City of Seal Beach, the City Council shall award to the lowest responsible bidder each contract involving an expenditure of more than the bidding threshold amount (as defined in this section) for the construction or improvement of public works or for the purchase of supplies or materials for any such project. Bids shall be solicited via notice by publication in the official newspaper by one or more insertions, the first of which shall be at least 10 days before the time for opening bids and such other forms of notice as the City Council may direct. Public Works are exempted from the requirements of this section where the work will be performed by a City or County of Orange department.

All bids may be accompanied by either a certified or cashier's check, or a bidder's bond executed by a corporate surety authorized to engage in such business in California, made payable to the City. Such security shall be in an amount not less than that specified in the notice inviting bids or in the specifications referred to therein, or if no amount be so specified then in an amount not less than 10% of the aggregate amount of the bid. If the successful bidder neglects or refuses to enter into the contract, within the time specified in the notice inviting bids or in the specifications referred to therein, the amount of his/her bidder's security shall be declared forfeited to the City and shall be collected and paid into its general fund, and all bonds so forfeited shall be prosecuted and the amount thereof collected and paid into such fund.

The City Council may reject any and all bids presented and may re-advertise in its discretion.

The City Council, without advertising for bids, or after rejecting bids, or if no bids were 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 or the supplies or materials may be purchased more economically on the open market. Contracts likewise may be let without advertising for bids, if such work, supplies or materials shall be deemed by the City Council to be of urgent necessity for the preservation of life, health, or property. In either event, the Council shall adopt a resolution with findings supporting the letting of a contract without advertising for bids by at least three affirmative votes of the Council, after which the City may proceed to have such work done or said supplies and materials purchased in the manner stated, without further observance of the provisions of this section.

The bidding threshold amount shall be $20,000 initially, and shall annually be adjusted by the City Engineer upon confirmation by the City Council. On June 1st of each year, the City Engineer shall compute the percentage difference between the current Engineering News Record Construction Cost Index – 20 City Average (ENR) and the ENR for the previous June 1st. The City Engineer shall adjust the bidding threshold amount by such percentage, rounding to the nearest dollar. The City Council shall review such adjustment at a public hearing and upon Council confirmation; the bidding threshold amount shall be the adjusted figure. Should the ENR be revised or discontinued, the City Engineer shall use the revised index or a comparable index approved by the City Council.

(Amended 2002)

Notwithstanding any other provision of this Charter, the City may enter into a design-build contract for both the design and construction of a project in accordance with this section. Prior to the execution of a design-build contract, the City Council shall evaluate at a public meeting the comparative advantages for the particular project of the traditional design, bid, and build process of construction and the design-build process. No design-build process contract shall be executed unless the City Council makes written findings that use of the design-build process on the project will accomplish one or more of the following objectives: reduction of project costs; expediting project completion; or provision of design features not achievable through the design, bid, and build process.

(Amended 2002)

Any demand against the City must be in writing and may be in the form of a bill, invoice, payroll or formal demand. Each such demand shall be presented to the financial designee of the City Manager, who shall examine the same. If the amount thereof is legally due and there remains on the City books an unexhausted balance of an appropriation against which the same may be charged, he/she shall approve such demand and draw a warrant on the City Treasury, payable out of the proper fund. Objections of the financial designee of the City Manager may be overruled by the City Council and warrant ordered drawn.

The financial designee of the City Manager shall transmit such demand, with his/her approval or rejection thereof, endorsed thereon, and warrant, if any, to the City Manager. If a demand is one for an item included within an approved budget appropriation, it shall require the approval of the City Manager; otherwise it shall require the approval of the City Council. Any person dissatisfied with the refusal of the City Manager to approve any demand, in whole or in part, may present the same to the City Council which, after examining the matter, may approve or disapprove the demand in whole or in part.

(Amended 1973)

Warrants on the City Treasurer, which are not paid for lack of funds, shall be registered. All registered warrants shall be paid in the order of their registration when funds therefor are available and shall bear interest from the date of registration at such rate as shall be fixed by the City Council by resolution.

The City Council shall employ at the beginning of each fiscal year, a certified public accountant who shall, at such time or times as may be specified by the City Council, and at such other times as he/she shall determine, examine the official books, records, inventories and reports of all officers and employees who receive, handle or disburse public funds and all such other officers, employees or departments as the City Council may direct. Within 120 days after the end of the fiscal year, unless such time shall be extended by the Council, a final audit and report shall be submitted by such accountant to the City Council, one copy thereof to each member, one to the City Manager, Treasurer and City Attorney, respectively, and three additional copies to be placed on file in the office of the City Clerk where they shall be available for inspection by the general public.

(Amended 1974)