§ 2.04.050. Bid procedure.

A.

When Advertising Required. Where the cost of services, supplies or combination required by the City exceeds fifty thousand dollars ($50,000.00), the City Clerk shall call for formal bids by advertising as defined in Section 2.04.010, above, and at least once in the official newspaper of the City not less than ten (10) calendar days before the date for receiving bids. The City Administrator may deem it advisable to require more than one advertising of the call for bids.

Notwithstanding the foregoing, the requirements of this section shall not apply to the mandatory preferred small local business (MPSLB) pre-qualification program in Subsection 2.04.045 B., above, for construction services.

B.

Bid Security. Whenever the City calls for bids for services and whenever the City Administrator deems it advisable in calls for bid supplies, each bidder shall be required to submit with the bid as bid security either cash, certified check or a cashier's check of or on some responsible bank in the United States, in favor of and payable at sight to the City, in an amount not less than ten percent (10%) of the aggregate amount of the bid.

Alternatively, any bid may be accompanied by a surety bond as follows:

1.

For contract bids of five hundred thousand dollars ($500,000.00) or less, the surety bond must be furnished by a United States non admitted corporate surety that has an A.M. best rating A-, at minimum, guaranteeing to the City that the bidder will enter into the contract and file the required bonds within the period;

2.

For contract bids over five hundred thousand dollars and one cent ($500,000.01) and less than one million dollars ($1,000,000.00), the surety bond must be furnished by a United States non admitted corporate surety that has an A.M. best rating of A+, at minimum;

3.

For contract bids over one million dollars ($1,000,000.00) and less than five million dollars ($5,000,000.00), the surety bond must, at minimum, be furnished by a United States non admitted corporate surety that appears on the Treasury List subject to the bonding limits which the Treasury List imposes on such surety;

4.

For contract bids in excess of five million dollars ($5,000,000.00), the surety bond must be furnished by a corporate surety admitted in the State of California or Lloyds of London; and

5.

Prospective bidders may file annual surety bonds covering all bids to be made by such bidder during a calendar year with approval of the City Administrator.

If the bidder to whom the contract is awarded shall, for twenty (20) calendar days after receipt of the contract, fail or neglect to enter into the contract and file the required bonds, the bid security or bid surety bond shall be forfeited. The City Administrator shall draw the money due on such bid security or bid surety bond and pay the same or any cash deposited into the City Treasury, and under no circumstances shall it be returned to the defaulting bidder.

C.

Multiple Bids. No person, firm or corporation shall be allowed to make or file or be interested in more than one bid for the same supplies, services or both.

D.

Bid Forms. All bids shall be made upon forms to be prepared by the City and furnished upon application. All bids shall be clearly written without any erasure or interlineations.

E.

Opening of Bids and Awards. All bids submitted under this section shall be sealed, identified as bids on the envelope and submitted to the City Clerk at the place and time specified in the public notice inviting bids. Bids shall be opened by the City Administrator or the City Administrator's designated representative, in public, at the time and place designated in the notice inviting bids. Bids received after the specified time shall not be accepted and shall be returned to the bidder unopened. The contract shall be let to the lowest responsible bidder, as defined herein, by the City Council at any time not exceeding sixty (60) calendar days after bid opening. The City Council may reject any and all bids and waive informalities or minor irregularities in the bids.

In the bid for public works construction projects, the City Administrator may deem it advisable to delay the submission of a list of subcontractors to be on the project. Such list shall be sealed, identified as a subcontractor list on the envelope and submitted to the City Clerk at the place and time specified in the public notice inviting bids.

F.

Disposition of Bid Security. All bid securities and bid bonds shall be returned to the unsuccessful bidders after award of the contract. The bid security and bid bond of the successful bidder shall be returned after execution of the contract and deposit of the necessary bonds.

G.

Approval of Faithful Performance and Labor and Materials Bonds—Waiver. Faithful performance and labor and material bonds in an amount equal to at least fifty (50) percent of the contract price shall be required by City specifications of contracts for services and shall be approved as to form by the City Attorney. Whenever the City Administrator deems it advisable in the purchase of supplies, City Administrator may require the furnishing of a faithful performance bond in an amount equal to at least twenty-five percent (25%) of the contract price; that bond shall be approved as to form by the City Attorney.

H.

Time of Completion. The contract shall specify the time within which the work shall begin and when it shall be completed according to specifications. The City Administrator may extend time for acts of the City, acts of God, weather or strikes, or other circumstances over which the contractor has no control. The Council may extend the time, but in no event shall the time for the performance of any contract be extended more than ninety (90) days in addition to extensions as authorized by the City Administrator, except by a two-thirds (⅔) vote of the Council.

In case of failure on the part of the contractor to complete the contract within the time specified in the contract or within the extension of the time as provided, the contract may be terminated and the contractor shall not be paid or allowed any further compensation for any work done under the contract, and the City Administrator may proceed to complete such contract either by reletting or otherwise, and the contractor and contractor's surety shall be liable to the City for all loss or damage that the City may suffer because contractor fails to complete the contract on time.

I.

Exceptions to Competitive Bidding. Upon a finding in each instance by the City Council that any of the following conditions exist, the provisions of this section shall not apply:

1.

To contracts involving professional or specialized services such as, but not limited to, services rendered by architects, engineers and other specialized professional consultants;

2.

When calling for bids on a competitive basis is impracticable, unavailing or impossible;

3.

Placement of insurance coverage;

4.

When public work is performed by the City with its own employees;

5.

In other cases when specifically authorized by the City Council after a finding and determination that it is in the best interests of the City.

J.

No Bids. If no valid bids are received after advertising as required, the City Administrator may proceed to hire or have the services performed or purchase the supplies in the open market.

(Ord. No. 13380, § 1, 7-19-2016; Ord. No. 13102, § 1, 12-20-2011; Ord. 12634 § 1 (part), 2004: Ord. 11724 § 3, 1994; Ord. 11297, 1991; Ord. 10066 §§ 1, 2 (part), 1981; Ord. 9739 § 3 (part), 1979; Ord. 7937 § 5, 1969)