ORDINANCE NO. 456 ORDINANCE NO 456 ORDINANCE NO 456

ORDINANCE NO. 456


AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES AMENDING TITLE 2 OF THE RANCHO PALOS VERDES MUNICIPAL CODE BY ADDING CHAPTER 2.42 TO PROVIDE FOR BIDDING PROCEDURES FOR PUBLIC PROJECTS UNDER THE UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING ACT.

THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. Title 2 of the Rancho Palos Verdes Municipal Code is hereby amended by adding new Chapter 2.42 to read as follows:

“CHAPTER 2.42. PUBLIC PROJECTS

Sec. 2.42.010 Intent.

Sec. 2.42.020 Definitions.

Sec. 2.42.030 Applicability.

Sec. 2.42.040 Purchase order required.

Sec. 2.42.050 Bid requirements, purchasing procedures, and contracting procedures.

Sec. 2.42.060 Unauthorized purchases and contracts.

Sec. 2.42.070 Prohibition against splitting projects.

Sec. 2.42.080 Bid security.

Sec. 2.42.090 Emergencies.

Sec. 2.42.100 Interpretation of bid specifications.

Sec. 2.42.110 Change orders.

Sec. 2.42.010 Intent.

The intent of this chapter is to provide standardized procedures for awarding contracts for public projects in conformance with the Uniform Public Construction Cost Accounting Act. Nothing in this chapter is intended to require the City to solicit bids for equipment, supplies or services or accept the lowest bid to provide equipment, supplies or services, except as required by State law and Chapter 2.44 of this code.

Sec. 2.42.020 Definitions.

Unless the context otherwise requires, the following definitions shall govern the construction of this chapter:

"Change Order" shall mean a written authorization from the City directing an addition, deletion, or revision to an awarded purchase order or contract.

"Public Project" shall be defined as that term is defined in Section 22002 of the California Public Contract Code, or any successor statute thereto.

"Purchasing Agent" shall mean the City Manager or his or her designee, as provided in Section 2.08.070 of this Code.

“Uniform Public Construction Cost Accounting Act” shall mean the procedures and regulations set forth in Chapter 2, commencing with Section 22000, to Part 3 of Division 2 of the California Public Contract Code or any successor act thereto.

Sec. 2.42.030 Applicability.

All public projects shall be bid and let to contract in accordance with the procedures prescribed by the Uniform Public Construction Cost Accounting Act, or any successor act thereto, and the provisions set forth in this chapter.

Sec. 2.42.040 Purchase order required.

In order to comply with the Uniform Public Construction Cost Accounting Act procedures set forth in the California Public Contract Code and in order to more efficiently manage all contracts for public projects, the City shall issue a purchase order to accompany every contract for the performance of services or public projects. No contract shall be deemed to be an authorization to proceed with work unless accompanied by a properly authorized and executed purchase order. No vendor or contracting party is authorized to perform any service, perform any public project, or provide any supplies or equipment without first receiving a properly authorized and executed purchase order.

Sec. 2.42.050 Bid requirements, purchasing procedures, and contracting procedures.

This section shall govern the procedures for bidding and awarding all purchase orders and contracts to perform public projects, including any associated purchase of goods and supplies for such projects. Bidding requirements and other purchasing and contracting procedures are categorized into three different levels set forth below. Each level shall govern purchases and contracts of different values. Level 1 shall govern the least expensive purchase orders and contracts and Level 3 shall govern the most expensive purchase orders and contracts. Notwithstanding any provision of this chapter, the bidding and other procedures for awarding public project contracts shall not violate the limitations of the Uniform Public Construction Cost Accounting Act.

(a) Level 1 Projects. Public projects that fall within the dollar limits prescribed by subsection (a) of Section 22032 of the California Public Contract Code or any successor statute may be performed by city employees by force account or may be awarded by negotiated contract or by purchase order by the Director of Public Works without competitive bidding.

(b) Level 2 Projects. Public projects that fall within the dollar limits prescribed by subsection (b) of Section 22032 of the California Public Contract Code or any successor statute may be let to contract by the informal bid procedures set forth in this subsection. Contracts that are authorized to be awarded pursuant to level two procedures may be awarded by the Director of Public Works. All level two contracts shall require competitive oral or written bidding, as described below in this subsection (b). The Director of Public Works shall determine whether a competitive oral or written bidding procedure for a public project is in the best interest of the City. If the Director of Public Works determines that a competitive oral bidding procedure is in the best interest of the City, the City may solicit oral bids as provided pursuant to subsection (1) below. Otherwise, the City shall require competitive written bids as provided in this subsection (2) below.

(1) Oral Bids.

(i) Bids shall be orally solicited from a minimum of three (3) sources and may be received orally. The person who solicits the bids shall prepare a memorandum to the file documenting the identity of the bidders and the amount of the bids that were obtained.

(ii) The Director of Public Works (“Director”) shall award the contract to the lowest responsible bidder only if Director determines that such action is in the best interest of the City. The Director may reject all bids, or waive any irregularities or informalities in any bid or bidding.

(iii) The Director may waive the requirement to orally solicit bids if performance of the public project is available from only one source and may solicit only two bids if performance of the public project is available from only two sources.

(2) Written Bids.

(i) Bid specifications shall be prepared and written notices soliciting written bids shall be disseminated to a list of at least three prospective bidders. Such notices shall include the closing date of the bid.

(ii) Bids shall be submitted in writing and must be received prior to the bid closing date to be considered.

(iii) The Director shall award the contract to the lowest responsible bidder only if the Director determines that such action is in the best interest of the City. The Director may reject all bids, or waive any irregularities or informalities in any bid or bidding.

(iv) The Director may waive the requirement to solicit bids if performance of the public project is available from only one source and may solicit only two bids if performance of the public project is available from only two sources.

(3) Contractors List. The City shall develop and maintain a list of contractors, identified according to categories of work, in accordance with the provisions of Section 22034 of the California Public Contract Code, or any successor statute thereto, and the criteria promulgated from time to time by the California Uniform Construction Cost Accounting Commission.

(4) Notice Inviting Informal Bids. At least ten (10) calendar days prior to the date informal bids are due, the City shall mail a notice inviting informal bids to all contractors from the applicable category of work to be bid, as shown on the Contractors List developed in accordance with subsection (3) of this subsection (b), and to all construction trade journals as specified by the California Uniform Construction Cost Accounting Commission in accordance with Section 22036 of the California Public Contract Code, or any successor statute thereto. Said notice shall describe the project in general terms, shall clearly indicate how to obtain more detailed information about the project, and shall set forth the time and place for the submission of bids.

(5) Excess bids. If all bids received pursuant to the procedures outlined in this subsection (b) are in excess of one-hundred twenty-five thousand dollars ($125,000), the City Council may, by passage of a resolution by a four-fifths vote, award the contract at one hundred thirty-seven thousand five hundred dollars ($137,500) or less, to the lowest responsible bidder, without complying with the bidding procedures set forth in subsection (c) below, provided that the Council determines that the cost estimate of the project was reasonable.

(c) Level 3 Projects. Public projects that fall within the limits prescribed by subsection (c) of Section 22032 of the California Public Contract Code or any successor statute shall, except as otherwise provided by law, be let to contract by the formal bidding procedures set forth in this subsection (c). Public projects which must be let pursuant to level three procedures shall be approved by the City Council and shall require competitive written bidding, as described below in this subsection (c).

(1) Bid Specifications. For all public projects that must be let pursuant to level three procedures, bid specifications shall be prepared, and notices inviting sealed bids shall be disseminated to at least three prospective bidders approved by the City Manager. In addition, bid plans and working details shall be formally adopted by the City Council for all public projects in accordance with the requirements of Section 22039 of the Public Contract Code or any successor statute.

(2) Notice Inviting Formal Bids. The City shall publish and mail a notice inviting sealed formal bids in accordance with the provisions of California Public Contract Code Section 22037, or any successor statute thereto.

(3) Receipt of Bids. Bids shall be sealed, and shall not be opened until the time and place designated in the bid specifications. Bids must be received prior to the bid opening to be considered.

(4) The City Council shall award the bid to the lowest responsible bidder, or reject all bids pursuant to Public Contract Code Section 22038, or its successor statute. The City Council may waive any irregularities or informalities in any bid or bidding.

(5) The City Council may waive the procedures required by this subsection (d) if the City Council determines that performance of the public project is available only from a single source and may send a notice inviting bids to only two prospective bidders if the Council determines that performance of the public project is available from only two sources.

Sec. 2.42.060 Unauthorized purchases and contracts.

It shall be unlawful for any officer, employee, or agent of the City to contract for the performance of public projects, or otherwise make any contract in violation of this chapter. Any order, purchase, or contract made contrary to the provisions of this chapter shall not be binding on the City, and the City shall not be obligated thereunder.

Sec. 2.42.070 Prohibition against splitting projects.

It shall be unlawful to split or separate into smaller work orders or projects any public project for the purpose of circumventing or evading the requirements of the Uniform Public Construction Cost Accounting Act or this chapter.

Sec. 2.42.080 Bid security.

Bid security shall be required as a condition of submitting a written bid unless deemed unnecessary by the Purchasing Agent.

If a bidder is awarded a bid and then fails or refuses to execute a contract or purchase order with the City, the City may award the bid to the next lowest responsible bidder. If the bid is awarded to the next lowest responsible bidder under these circumstances, the amount of the lower bidder's bid security shall be applied by the City to the purchase or contract price differential between that bidder and the next lowest responsible bidder, and the remainder, if any, shall be returned to the lower bidder.

Sec. 2.42.090 Emergency procurement.

In addition to any other exemption from bidding requirements set forth in this chapter or otherwise provided by law, if an emergency situation requires that a public facility be repaired or replaced to permit the continued conduct of the operation or services of the City or to avoid danger to life or property, the City Council may proceed to replace or repair the facility in accordance with the provisions of Section 22035 of the California Public Contract Code or any successor statute thereto.

Sec. 2.42.110 Interpretation of bid specifications.

Oral interpretation of written bid specifications shall not be made to prospective bidders. If a prospective bidder discovers discrepancies or omissions in any specification, or if the bidder is in doubt as to the meaning of any specification, the bidder shall request a written interpretation or modification from the City. If interpretations or modifications are deemed necessary, the City will then issue a written addendum to all parties known to have received copies of the specifications.

Sec. 2.42.120 Change orders.

Any alteration to, amendment of, or deviation from an awarded purchase order or contract as to scope, cost, time for completion, material, or equipment furnished as a part of the purchase order or contract, or any alteration to, amendment of, or deviation from the nature of work to be performed, shall require the completion and issuance of a change order. Additions to work cannot be combined with deletions to work to avoid the change order requirement.

The change order shall be approved by the person or body that, pursuant to Section 2.42.050, would have authority to approve a purchase for the combined amount of the original purchase order and the change order. No change order shall be binding on the City until approved as provided herein. Change orders shall not be issued unless:

(a) The change order arises in good faith out of an unknown condition or unforeseen circumstance differing materially from the conditions of the purchase or contract, or, alternatively, the change order arises due to an error in the City's specifications that accompanied the bid solicitation; and

(b) The change order does not change the purpose of the purchase or contract; and

(c) The change order is reasonably related to the scope of work authorized under the original contract; and

(d) Any change order for a public project shall be in accordance with the most current edition of the "Standard Specifications for Public Works Construction," adopted by the Joint Cooperative Committee of the Southern California Chapter of the American Public Works Association and the Southern California Districts of the Associated General Contractors of California.”

Section 2. Title 2 of the Rancho Palos Verdes Municipal Code is hereby amended by amending Section 2.44.025 of Chapter 2.44 to read as follows:

“Section 2.44.015 Applicability.

The procedures set forth in this chapter shall not apply to contracts for ‘public projects,’ as defined in Section 22002 of the California Public Contract Code or any successor statute, which are governed by the procedures set forth in Chapter 2.42 of this title.”

Section 3. The City Council declares that, should any provision, section, paragraph, sentence, or word of this ordinance be rendered or declared invalid by any final action in a court of competent jurisdiction, or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences and words of this ordinance shall remain in full force and effect.

Section 4. The City Clerk shall cause this Ordinance to be posted in three (3) public places in the City within fifteen (15) days after its passage, in accordance with the provisions of Section 36933 of the Government Code. The City Clerk shall further certify to the adoption and posting of this Ordinance, and shall cause this Ordinance and its certification, together with proof of posting, to be entered in the Book of Ordinances of the Council of this City.

Section 5. This Ordinance shall go into effect and be in full force and effect at 12:01 a.m. on the thirty-first (31st) day after its passage.

PASSED, APPROVED and ADOPTED this 17th day of April 2007.

/s/ Thomas D. Long

Attest: Mayor

/s/ Carla Morreale

City Clerk

State of California )

County of Los Angeles )ss

City of Rancho Palos Verdes )

I, Carla Morreale, City Clerk of the City of Rancho Palos Verdes, do hereby certify that the whole number of members of the City Council of said City is five; that the foregoing Ordinance No. 456 passed first reading on April 3, 2007, was duly and regularly adopted by the City Council of said City at a regular meeting thereof held on April 17, 2007, and that the same was passed and adopted by the following roll call vote:

AYES: Clark, Stern, Wolowicz, and Mayor Long

NOES: None

ABSENT: Gardiner

ABSTAIN: None

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City Clerk