ORD 522 ORDINANCE NO. 522
AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES
AMENDING SECTION 2.42.050 OF THE RANCHO PALOS
VERDES MUNICIPAL CODE TO INCREASE THE INFORMAL
BID LIMIT AS PERMITTED BY THE STATE AND REMOVE THE
INFORMAL BID LIMIT EXCEPTION.
WHEREAS, the informal bid limit proscribed in subsection (b) of section 22032 of the
Public Contract Code has been one hundred and twenty-five thousand dollars ($125,000); and,
WHEREAS, the California State Controller recently notified all public agencies that the
informal bid limit will be increased to one hundred and seventy-five thousand dollars ($175,000)
effective for the fiscal year beginning July 1, 2011; and,
WHEREAS, the City Council now seeks to amend Section 2.42.050 of Chapter 2.42 of
Title 2 of its Municipal Code in order for the informal bid limit increase to be effective in the City;
and,
WHEREAS, the informal bid limit exception in Public Contract Code section 22034(f), as
reiterated in Rancho Palos Verdes Municipal Code section 2.42.050(B)(5), states that if all bids
received are in excess of one hundred twenty-five thousand dollars ($125,000), the governing
body of the public agency may, by adoption 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, if it determines the cost estimate of the public agency was
reasonable; and,
WHEREAS, the informal bid limit exception amount has not been raised and therefore is
no longer of use; and,
WHEREAS, the City Council now seeks to remove the informal bid limit exception within
subsection (B)(5) of Section 2.42.050 of Chapter 2.42 of Title 2 of the Rancho Palos Verdes
Municipal Code.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES DOES HEREBY FIND, DETERMINE, AND ORDER AS FOLLOWS:
Section 1: Section 2.42.050 of Chapter 2.42 of Title 2 of its Municipal Code is hereby
amended to read as follows (with the proposed changes in bold and underline):
"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, as they may be amended from time to time by the State
Controller or the State Legislature.
A. Level 1 Projects. Public projects of thirty thousand dollars ($30,000) or less
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
("Director') without competitive bidding.
B. Level 2 Projects. Public projects of one hundred and seventy-five thousand
dollars ($175,000) or less 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. All level two
contracts shall require competitive oral or written bidding, as described below in
this subsection. The Director 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 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 of this section. Otherwise, the City shall require competitive written
bids as provided in this subsection 2 of this section.
1. Oral Bids.
a. Bids shall be orally solicited from a minimum of three 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.
b. The 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.
c. 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.
a. 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.
b. Bids shall be submitted in writing and must be received prior to the
bid closing date to be considered.
c. 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.
R6876-0001\1360452v2.doc Ordinance No. 522
Page 2 of 4
d. 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 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 (B)(3) of
this subsection, 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.
C. Level 3 Projects. Public projects of more than one hundred seventy-five
thousand dollars ($175,000) shall, except as otherwise provided by law, be let
to contract by the formal bidding procedures set forth in this subsection. 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.
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.
R6876-0001\1360452v2.doc Ordinance No. 522
Page 3 of 4
5. The City Council may waive the procedures required by this subsection 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."
Section 2: The City Clerk shall certify to the adoption of this ordinance and shall
cause the same to be posted in the manner prescribed by law.
PASSED, APPROVED and ADOPTED this 21st day of Jun,, .011
/Ai
11111.idy4 I
Mayor
ATT ST:
/14-4,64(29,
2
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. 522 passed first reading on June 7, 2011, was duly and regularly adopted by the
City Council of said City at a regular meeting thereof held on June 21, 2011, and that the same
was passed and adopted by the following roll call vote:
Ayes: Campbell, Misetich, Stern, Wolowicz and Mayor Long
Noes: None
Absent: None
Abstain: None
i /
City Clerk
R6876-0001\1360452v2.doc Ordinance No. 522
Page 4 of 4
PALOS RANCHO ERDES
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS AFFIDAVIT OF POSTING
CITY OF RANCHO PALOS VERDES)
The undersigned, being first duly sworn, deposes and says:
That at all times herein mentioned, she was and now is the appointed City Clerk
of the City of Rancho Palos Verdes;
That on June 22, 2011, she caused to be posted the following
document entitled: ORDINANCE NO. 522,AN ORDINANCE OF
THE CITY OF RANCHO PALOS VERDES AMENDING
SECTION 2.42.050 OF THE RANCHO PALOS VERDES
MUNICIPAL CODE TO INCREASE THE INFORMAL BID LIMIT
AS PERMITTED BY THE STATE AND REMOVE THE
INFORMAL BID LIMIT EXCEPTION, a copy of which is attached
hereto, in the following locations:
City Hall Ladera Linda Community Center
30940 Hawthorne Blvd. 32201 Forrestal Drive
Rancho Palos Verdes Rancho Palos Verdes
Hesse Park
29301 Hawthorne Blvd.
Rancho Palos Verdes
I certify under penalty of perjury that the foregoing is a true and correct affidavit of
posting.
Z4l4e4i/Adela-----
City Clerk
W:\FORMS\Form 150 Archived Affidavits(old)\Form 150-Affidavit of Posting Ordinance No.522.doc