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HomeMy WebLinkAboutORD-10-06 Amend Ch 3.08- Bid Limits & ProceduresORDINANCE NO. 10- 06 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ORANGE AMENDING CHAPTER 3.08 OF TITLE 3 OF THE ORANGE MUNICIPAL CODE PERTAINING TO BID LIMITS AND BID PROCEDURES FOR CERTAIN TYPES OF PUBLIC PROJECTS.WHEREAS, Chapter 3.08 of the Orange Municipal Code sets forth the City' s procedures for the purchase of materials, supplies and equipment, professional services,and the selection of contractors to perform public works projects; and WHEREAS, on July 13, 1999 by the adoption of Ordinance No. 12-99, the City Council of the City of Orange adopted the California Uniform Public Construction Cost Accounting Act (commencing at Public Contract Code Section 22000; herein referred to as the Act) for the purpose of, among other things, simplifying the bidding process for public construction projects valued at less than $75,000 and minimizing the limits on using City employees for public works projects ofless than $ 25,000;WHEREAS, the State legislature and the State Controller have authorized public agencies like the City of Orange, who have adopted the Act, to raise the informal bid limits for public construction projects from $75,000 to $125,000 and for public works projects using City employees from $25,000 to $30, 000; and WHEREAS, the State legislature has authorized certain additional and related revisions, including authorization for the award of an informally bid contract at up to 137,500 under certain circumstances, and requiring the City to furnish written notice to an apparent low bidder obtained through the formal bid process, informing the bidder of the City's intention to reject the bid at least two (2) business days prior to the hearing at which the City Council intends to reject the bid; and WHEREAS, the purpose of this ordinance is to increase the informal bid limits for public projects in Chapter 3.08 of Title 3 of the Orange Municipal Code to reflect the current informal bid limits in Sections 22032 and 22034 of the Act and to otherwise conform Chapter 3.08 to the Act.NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ORANGE DOES ORDAIN AS FOLLOWS: SECTION I:Section3.08.500 of the Orange Municipal Code is hereby deleted in its entirety and replaced with the following new Section 3.08.500, to read in full 3.08.500 Public Projects-General Bid Limits.A. Public projects of thirty thousand dollars ($30,000.00) or less may be performed by the employees of the City by force account.B. Public projects of thirty thousand dollars ($30,000.00) or less may be let to contract by the informal bid procedures prescribed in Sections 3.08.150 through 3.08.170 of this chapter.C. Public projects of one hundred twenty-five thousand dollars 125,000.00) or less may be let to contract by the informal procedures prescribed in Section 3. 08.520.D. Public projects of more than one hundred twenty-five thousand dollars ($125,000.00) shall, except as otherwise provided in this chapter, be let to contract by the formal bidding procedures prescribed in Sections 3.08.530 through 3.08.580 of this chapter.E. The City Council may utilize the bidding procedures set forth in this chapter when contracting for "maintenance work" or when contracting for any other work which does not fall within the definition of public project'.SECTION II:Section 3.08.520 of the Orange Municipal Code is hereby deleted in its entirety and replaced with the following new Section 3.08.520, to read in full as follows:3.08.520 Public Projects-Informal Bidding Procedures.The following shall govern the selection of contractors when a public project which is anticipated to fall within the monetary limits on informal bids described in subsection C of Section 3.08. 500 is to be performed:A. The City shall prepare a notice of the opportunity to bid which describes the project in general terms, states the time and place for the submission of bids and describes how to obtain more detailed information about the project.B. The City shall mail the notice to all contractors for the category of the work to be bid, as shown on the list of contractors developed and maintained by the Department of Public Works in accordance with criteria promulgated from time to time by the California Uniform Construction Cost Accounting Commission ("Commission").C. The City may also mail the notice to all construction trade journals specified by the Commission for the County of Orange.Additional contractors and/or construction trade journals may also be notified at the discretion of the Director of Public Works; provided,however, (1) if the City has not prepared a list of qualified contractors for the particular category of work to be performed, the notice inviting bids shall be sent only to the construction trade journals specified by the Ord. Commission; and (2) if the product or service is proprietary in nature such that it can be legally obtained only from a certain contractor(s), the notice inviting informal bids may be sent exclusively to such contractor(s). D. All mailings of notices to contractors and construction trade journals pursuant to this section 3.08.520 shall be completed not less than ten (10) calendar days before bids are due. E. The City Manager shall have the authority to award informal contracts pursuant to this section 3.08.520 with a value of thirty thousand dollars ($30,000.00) or less pursuant to the findings and recommendations presented by the Director of Public Works. Such contracts shall have the prior approval of, and be executed by, the City Manager and shall be approved as to form by the City Attorney. All contracts with a value in excess of thirty thousand dollars ($30,000.00) to be awarded pursuant to this section 3.08.520 shall require the approval of the City Council and shall be executed by the Mayor and approved as to form by the City Attorney. Unless the agreement provides otherwise, the City Manager may approve dollar increases to contracts that have been approved by the City Council. The extent of the City Manager's authority to approve such increases shall be in the amount of ten thousand dollars 10,000.00) or ten (10) percent, whichever is greater. However, in no event may the City Manager approve an increase of more than thirty thousand dollars ($30,000.00). F. If all informal bids received exceed one hundred twenty- five thousand dollars ($125,000.00) and the City Council determines that the cost estimate was reasonable, the City Council may award the contract to the lowest responsible bidder at up to one hundred thirty- seven thousand five hundred dollars ($137,500.00) by resolution approved by a four-fifths (4/5) vote of the City Council. Such contracts shall be executed by the Mayor and approved as to form by the City Attorney." Otherwise,such work shall be awarded to the lowest responsible bidder pursuant to the formal bid procedures prescribed in Section 3.08.530 through3. 08.570 of this chapter. SECTION III:Section 3.08.530 of the Orange Municipal Code is hereby deleted in its entirety and replaced with the following new Section 3.08.530, to read in full as follows:3.08.530 Public Projects- Formal Bid Procedure.Except as otherwise provided herein, public proj ects exceeding the amount specified in subsection C of Section 3.08.500 shall be awarded to the lowest responsible bidder pursuant to the formal bid procedure as hereinafter prescribed.Ord. No. A. The City Council shall approve plans and specifications for all public projects which are anticipated to exceed the amount specified in subsection C of Section 3.08.500. B. The Director of Public Works shall prepare and deliver to the Purchasing Officer for advertisement a notice inviting formal bids, stating the time and place for the receiving and opening of sealed bids and distinctly describing the public project. The Purchasing Officer shall publish each and every notice inviting bids in accordance with the following requirements: 1. The notice shall be published at least fourteen (14) calendar days before the date of opening the bids in a newspaper of general circulation, printed and published in the City; or, if there is no newspaper of general circulation which is circulated within the City, in a newspaper of general circulation which is circulated within the City, or if there is no newspaper which is circulated within the City, publication shall be by posting the notice in at least three places within the City as have been designated by ordinance or regulation of the City as places for the posting of its notices; 2. The notice inviting formal bids shall also be mailed to all construction trade journals specified by the Commission for the County of Orange at least thirty (30) calendar days prior to the date of opening the bids; and 3. In addition to notice required by this section 3.08.530, the Purchasing Officer may give such other notice as he or she deems proper. C. All bids shall be presented under sealed cover and accompanied by one of the following forms ofbidder's security: 1. Cash; 2. Cashier's check made payable to the City; 3. A certified check made payable to the City; or 4. A bidder's bond executed by an admitted surety insurer, made payable to the City. D. The security shall be in an amount equal to at least ten percent of the amount bid. A bid shall not be considered unless one of the forms of bidder's security is enclosed with it. If the bidder to whom the contract is awarded shall for ten days after the award fail or neglect to enter into the contract and file the required securities, the City shall deposit in its treasury the bid security if the security is in the form of cash or its equivalent. E. Provisions shall be included in any invitation for bid and in any contract documents for the furnishing of securities and/or the withholding of retentions earned to ensure performance under a contract in an amount and type as determined proper by the Director of Public Works. Provisions shall be included in any invitation for bid and in any contract Ord. No. 10-06 4 documents for insurance coverage in an amount, type and term as may be specified by the City. F. The contractor shall not pay less than the general prevailing rates of wages, as determined by the Director of the Department of Industrial Relations, to all workers employed on a public project. SECTION IV: Section 3.08.550 of the Orange Municipal Code is hereby deleted in its entirety and replaced with the following new Section 3.08.550, to read in full as follows: 3.08.550 Public Projects-Rejection of Formal Bids.In its discretion, the City Council may reject any and all bids presented if the Public Works Director, prior to rej ecting all bids,furnishes a written notice to an apparent low bidder, informing the bidder of the City's intention to reject the bid at least two (2) business days prior to the hearing at which the City Council intends to reject the bid. If after the first invitation of bids all bids are rejected, after reevaluating its cost estimates of the project, the City Council may: (a) abandon the project;b) re-advertise for bids in the manner prescribed by this chapter; or (c)perform the work with City employees, after passing a resolution by a four-fifths (4/5) vote of the City Council declaring that the project can be performed more economically by City employees.SECTION V:Section 3.08.560 of the Orange Municipal Code is hereby deleted in its entirety and replaced with the following new Section 3.08.560, to read in full as follows:3.08.560 Public Projects-Award of Formal Bid Contracts.All contracts for public work with a value of more than one hundred twenty-five thousand dollars ($125, 000.00) shall require the approval of the City Council and shall be executed by the Mayor and approved as to form by the City Attorney. Unless the agreement provides otherwise, the City Manager may approve dollar increases to contracts that have been approved by the City Council. The extent of the City Manager's authority to approve such increases shall be in the amount of ten thousand dollars ($10,000) or ten (10) percent, whichever is greater. However, in no event may the City Manager approve an increase of more than thirty thousand dollars ($30,000). If a contract is awarded, it shall be awarded by the City Council to the lowest responsible bidder. The determination of the lowest responsible bidder" shall be at the discretion of the City Council pursuant to the findings and recommendations presented by the Director of Public Works at the time of award of contract. In determining the lowest responsible bidder, the following shall be considered by the City Council, in addition to price: A. The ability, capacity and skill of the bidder to perform the contract or provide the services required; B. Whether the bidder can perform the contract or provide the services promptly, or within the time specified, without delay or interference; C. The sufficiency of the bidder's financial resources to perform the contract or provide the service; D. The ability of the bidder to provide future maintenance and services where such maintenance and service is essential; E. The quality and timeliness of the bidder's performance on previous contracts for the City; F. Litigation by the bidder on previous contracts with the City; G. The character, integrity, reputation, judgment, experience and efficiency of the bidder; H. The bidder is licensed under the Contractors' State License Law (commencing with Section 7000 of the Business and Professions Code of the State of California, as the same may be amended from time to time) to perform the work for which it submitted a bid proposal. SECTION VI: Section 3.08.580 of the Orange Municipal Code is hereby deleted in its entirety and replaced with the following new Section 3.08.580, to read in full as follows: 3.08.580 Public Projects-No Formal Bids.If no bids are received through the formal or informal procedure,the project may be performed by the employees of the City by force account or through a negotiated contract without further complying with this chapter.SECTION VII:Section 3.08.590 of the Orange Municipal Code is hereby deleted in its entirety and replaced with the following new Section 3.08.590, to read in full as follows:3.08.590 Public Projects-Emergencies.A. In cases of emergency when repairs or replacements are necessary, the City Council, pursuant to a four-fifths (4/ 5) vote, may replace or repair any public facility, take any directly related and immediate action required by that emergency, and procure the necessary Ord. No. equipment, services and supplies for those purposes without giving notice for bids to let contracts. B. Before the City Council takes any action pursuant to paragraph A of this section, it shall make a finding, based on substantial evidence set forth in the minutes of its meeting, that the emergency will not permit a delay resulting from a competitive solicitation for bids, and that the action is necessary to respond to the emergency. C. If the City Council orders any action specified in paragraph A of this section, it shall review the emergency action at its next regularly scheduled meeting and at every regularly scheduled meeting thereafter until the action is terminated to determine, by a four-fifths vote, that there is a need to continue the action. When the City Council reviews the emergency action, it shall terminate the action at the earliest possible date that conditions warrant so that the remainder of the emergency action may be completed by giving notice for bids to let contracts.D. Notwithstanding the authority of the City Council to order any action specified in paragraph A of this section, the City Manager is authorized, in case of an emergency, to order repairs or replacements of a public facility, take any directly related and immediate action required by that emergency, and procure the necessary equipment, services, and supplies for those purposes. The City Manager shall report to the City Council at its next regularly scheduled meeting the reasons justifying why the emergency will not permit a delay resulting from a competitive solicitation for bids and why the action is necessary to respond to the emergency. The City Council shall initially review the emergency action not later than seven days after the action, or at its next regularly scheduled meeting if that meeting will occur not later than fourteen (14) days after the action, and at least every regularly scheduled meeting thereafter until the action is terminated, to determine, by a four-fifths vote, that there is a need to continue the action, unless the City Manager has terminated that action prior to the City Council reviewing the emergency action and making a determination that there is no longer a need to continue the action.E. The work authorized under this section3.08.590 may be done by day labor under the direction of the Director of Public Works, by contractor, or by a combination of the two. SECTION VIII:Should any section, subsection, clause, or provision of this Ordinance for any reason be held to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this Ordinance; it being hereby expressly declared that this Ordinance, and each section,subsection, sentence, clause and phrase hereof would have been prepared, proposed,approved and ratified irrespective of the fact that anyone or more sections, subsections,sentences, clauses or phrases be declared invalid or unconstitutional.Ord. No. 10- SECTION IX: A summary of this Ordinance shall be published and a certified copy of the full text of this Ordinance shall be posted in the Office ofthe City Clerk at least five (5) days prior to the City Council meeting at which this Ordinance is to be adopted. A summary of this Ordinance shall also be published once within fifteen (15) days after this Ordinance's passage in a newspaper of general circulation, published, and circulated in the City of Orange. The City Clerk shall post in the Office of the City Clerk a certified copy of the full text of such adopted Ordinance along with the names of those City Council members voting for and against the Ordinance in accordance with Government Code Section 36933. This Ordinance shall take effect thirty (30) days from and after the date of its final passage. ADOPTED this 13th day of June, 2006. ATTEST: nge STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF ORANGE ) I, MARY E. MURPHY, City Clerk of the City of Orange, California, do hereby certify that the foregoing Ordinance was introduced at the regular meeting of the City Council held on the 23rd day of May, 2006, and thereafter at the regular meeting of said City Council duly held on the 13th day of June, 2006, was duly passed and adopted by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: COUNCILMEMBERS: Smith, Murphy, Cavecche, Dumitru COUNCILMEMBERS: None COUNCILMEMBERS: None COUNCILMEMBERS: None Cu. Orange Ord. No. 10-06 8