§ 2-166. Procedure for purchases exceeding fifty thousand dollars

Except as provided in this article, purchases of supplies, services, equipment and the sale of personal property of estimated value greater than fifty thousand dollars ($50,000.00) shall be by written contract pursuant to the following procedures:

(a) Notice inviting bids. Notices inviting bids shall include a general description of the articles to be purchased or sold, state where bid blanks and specification may be secured, and the time and place for opening bids.

(1) Published notice. Notice inviting bids shall be published at least ten (10) days before the date of opening of the bids. Notice shall be published at least once in a newspaper of general circulation, printed and published in the city, or if there is none, it shall be posted in at least one (1) public place in the city that has been designated as the place for posting public notices.

(2) Bidder's list. The purchasing officer shall also solicit sealed bids from all responsible prospective suppliers whose names are on the bidder's list and other qualified suppliers.

(3) Bulletin board. The purchasing officer shall also advertise pending purchases or sales, by a notice posted on a public bulletin board in the city hall and on the city's web site.

(b) Bidder's security. When deemed necessary by the purchasing officer, bidder's security may be prescribed in the public notices inviting bids. Bidders shall be entitled to return of bid security, provided that a successful bidder shall forfeit the bid security upon refusal or failure to execute the contract within ten (10) days after the notice of award of contract has been mailed, unless the city is responsible for the delay. The city council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the city council awards the contract to the next lowest bidder, the amount of the lowest bidder's security shall be applied by the city to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder.

(c) Bid opening procedure. Sealed bids shall be submitted to the city clerk and shall be identified as bids on the envelope. It is the responsibility of the bidder to ensure receipt of the bid document by the city clerk by the designated hour. Bids shall be opened in public at the time and place stated in the public notice. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than thirty (30) calendar days after the bid opening.

(d) Rejection of bids. With discretion, the purchasing officer may recommend to the city manager, the rejection of any and all bids and readvertise for bids.

(e) Award of contracts. Contracts shall be awarded by the city council to the lowest responsible bidder except as otherwise provided herein.

(f) Tie bids. If two (2) or more bids received are for the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay of readvertising for bids, the city council may accept the one it chooses or accept the lowest bid made by negotiation with the tie bidders at the time of the bid opening.

(g) Performance bonds. The city council shall have authority to require a performance bond before entering into a contract in such amount as it shall find reasonably necessary to protect the best interests of the city. If the city council requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids.

(h) Public project supplies and materials. Per Public Contracts Code section 20161, purchases of supplies and materials for public projects of an estimated value of five thousand dollars ($5,000.00) or greater shall be by written contract with the lowest responsible bidder pursuant to this section. A public project is defined as:

(1) A project for the erection, improvement, painting, or repair of public buildings and works;

(2) Work in or about streams, bays, waterfronts, embankments, or other work for protection against overflow; or

(3) Street or sewer work, including maintenance or repair.

(i) When in the best interest of the city, and when necessary to adhere to time lines established by other agencies, the purchasing officer may recommend to the city manager to bypass the formal bid process for the purchase of surplus property. City council will be advised by the purchasing officer, or city manager, of procurements over fifty thousand dollars ($50,000.00) which were exempted from the formal bid process.

(Ord. No. 96-15, § 1, 12-2-96; Ord. No. 06-13, § 1, 6-20-06 )