ORD 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.
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(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
Ordinance No. 456
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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
Ordinance No. 456
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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."
Ordinance No. 456
Page 5 of 6
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 7th ij of April 200 .
- r
Attest: Mayor
/ �1 l
1A—
City Clerk
State of )
_ 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 /2 Lii„
t-W-Y4- A/iIij:'te7<
City Clerk
Ordinance No. 456
Page 6of6
PALOS RANCHO
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 April 25, 2007, she caused to be posted the following document entitled:
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, 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.
City Clerk
W:\City Council Ordinances\affidavits\Ordinance 456-Uniform Public Construction Cost Accounting.doc