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HomeMy WebLinkAboutORD 927ORDINANCE NO. 927 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ENACTING A PUBLIC CONTRACT CODE The City Council of the City of Palm Desert does hereby ordain as follows: Section 1. That Chapter 3.30 is hereby enacted and incorporated into the Code of the City of Palm Desert of California to read as follows: "Chapter 3.30 Public Works Contracts and Bidding Requirements "3.30.010 Purpose. Pursuant to the authority set forth in Section 300 of the Palm Desert Charter, the city may provide local procedures and requirements for the bidding, award and performance of public works projects." "3.30.020 Municipal projects. A. Contracts for public works projects, including, but not limited to, those defined in Section 1720 of the Labor Code, and in Section 20161 of the Public Contracts Code, shall not be subject to prevailing wage law (Labor Code, Section 1770 et seq.), except as specified in subsection B of this section. Any notice inviting bids for such public works projects shall include notification of this subdivision. B. The provisions of subsection A of this section shall not apply when the public works projects are funded in whole RN PUBOM104117 1/12/00 ORDINANCE NO. 927 or in part by state or federal loans, or grants, and payment of prevailing wages is required in order to receive state or federal funding." "3.30.030 Definitions As used herein, A. 'Public Project' or'Public Works' means: (a) A project for the erection, improvement, or repair of public buildings and works, or other public projects; (b) Work in or about streams, embankments or other works for protection against overflow; (c) Street or sewer work except maintenance or repair; and (d) Furnishing supplies or materials for any such project including maintenance or repair of streets. B. 'Sole Source' means that the particular item called for can only be supplied by one company, organization or individual. C. 'Emergency' means a sudden, unexpected occurrence that poses a clear, eminent danger requiring immediate action to prevent or mitigate the loss or impairment of life, help, property or essential public services. D. "Responsible bidder' means that bidder who can, based upon quality, fitness and their capacity to satisfactorily perform the proposed work, based upon attributes of trustworthiness, references and past contracting experience." P"U]3\D.rEu041i7 -2- 1/12/00 ORDINANCE NO. 927 "Section 3.30.040. When the expenditure required for a Public Project exceeds $10,000 it should be contracted for and let to the lowest responsible bidder after notice." "Section 3.30.050. Notice inviting bids shall specify a date for the opening of bids. The first publication or posting of the Notice shall be at least ten (10) days before the date of opening of bids. Notice shall be published at least twice not less than five (5) days apart, in a newspaper of general circulation, printed and published in the city." "Section 3.30.060. In its sole discretion, the legislative body may reject any bids presented and re -advertised. If two or more bids are the same or the lowest, the legislative body may accept the one it chooses. If no bids are received, the legislative body may have the project done without further complying with this chapter in any manner that the Council may direct. If no bids are received and/or all bids are rejected, the Council may on a four -fifths (4/5ths) of the Council, declare that the project can be performed more economically by city personnel or that a contract to perform the project can be negotiated with the original bidders at a lower price than any of the bids or the materials or supplies furnished at a lower price in the open market. Upon such decision, the Council may direct the project to be done in the manner stated without further complying with this Ordinance." "Section 3.30.070. In the event of an emergency, the Council may pass a resolution by four -fifths (4/5ths) vote of its xMPua\DE\ioai 17 -3- 1/12/00 ORDINANCE NO. 927 members declaring that the public interest and necessity demand the immediate expenditure of public money to safeguard life, health or property. Upon adoption of such a resolution, the city may expend any sum required in the emergency without complying with this chapter. The council may in addition delegate to the city manager the authority to order any action necessary pursuant to this section." "Section 3.30.080. All bids shall be presented under sealed cover accompanied by one of the following forms of bidders' security: (a) cash; (b) cashier's check made payable to the city; and (c) a bidder's bond executed by an admitted surety insurer made payable to the city. Such security shall be an amount at least equal to ten percent (10%) of the amount bid. No bid shall be considered unless security in the form above ;.. set forth is enclosed with said bid." "Section 3.30.090. If the successful bidder fails to execute the contract, the bidder's security shall be forfeited to the city. The city council may on refusal or failure of the successful bidder to execute such contract award the contract to the next lowest responsible bidder. If the legislative body awards the contract to the second low 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 low bid. The surplus if any shall be utilized to offset any and all costs of preparation and printing of plans, specifications, estimates of cost, publication of notices, and any surplus remaining shall be returned to the lowest bidder who fails to execute the contract." RMPUB\DJE\104117 -4- 1/12/00 ORDINANCE NO. 927 "Section 3.30.100. As an alternative to the above set forth bidding process, the council may permit on building construction projects or other public projects within the city requiring advertising for bids for project, cause to be prepared estimates and documents for a solicitation of bids on a `design and build' basis. Design and build means a method of procuring design and construction from a single source. The selection of the single source occurs before the development of complete plans and specifications. The request for submittal shall include all of the following: 1. A clear and precise description of the services to be provided and work to be performed; 2. A format for submittals to follow and the elements that shall be contained therein including the qualifications and relevant experience of the design professional and the contractor, the proposed cost of said project and the criteria that shall be used in evaluating the submittal including the base bid; and 3. The date on which the submittals are due and the timetable that will be used in reviewing and evaluating the submittals. In addition to the information required in the above paragraph regarding the qualifications and experience, the bidders shall submit their proposals with a construction bid price and all cost information in a separate sealed envelope. RNPUBOrE104117 -5- I/12/00 ORDINANCE NO. 927 All submittals received prior to the closing time stated in the Request for Submittal shall be reviewed to determine that they meet the format requirements and the standards specified in the Request for Submittal. The contract shall be awarded to the bidder meeting in the sole judgment of the City Council the standards required and requested at said proposal. " "Section 3.30.110. The city may in its discretion for public works or public projects, elect to follow the uniform uonstr- -.7,±ion cnst methods set forth in Section 22030 of the Public Contracts Code." "Section 4.30.120. Relief of Bidders. No bidder shall be relieved of their bid unless by the consent of the city council nor shall any change be made in the bid because of mistake but the bidder may bring an action against the public entity in a court of competent jurisdiction in the county where the bids were open. Should the plaintiff fail to recover judgment, plaintiff shall pay all costs incurred by the public entity into the suit including reasonable attorneys' fees fixed by the court. Should the council determine to consent, the requesting party should provide to the council in written form the facts that (a) a mistake was made, (b) written notice was given to the city of that mistake within five (5) days after the opening of the bids specifying how the mistake occurred, (c) the mistake made the bid materially different than it was intended to be, and (d) the mistake was made in filling out the RMPUB\D7E\104117 -6- 1/12/00 ORDINANCE NO. 927 bid not due to error in judgment or carelessness in inspecting the site of the work and reading the plan specifications." "Section 3.30.130. Section 7100 through Section 7200 of Public Contracts Code are incorporated herein as if fully set forth and shall be applicable to city contracts." "Section 3.30.140. Section 22300 of the Public Contracts Code is incorporated herein as if fully set forth and shall be applicable to the retention of proceeds for city contracts." "Section 3.30.150. All bids received by the city in response to notice of bidding or requests for proposals or for design build shall be and remain confidential until the same are presented to the council for determination and in the event there are alternates in said bids, the presentation to the council shall allow the determination of the alternates to be made in a manner so that the names of the bidders are unknown until such time as a determination of alternates has been made." "Section 3.30.160. Preservation of Rights and Remedies. Nothing in this chapter limits or diminishes any rights or remedies, either legal or equitable, which: (a) An original or substituted subcontractor may have against the prime contractor, his or her successors or assigns. (b) The city may have against the prime contractor, his or her successors or assigns, including the right to take over and complete the contract." true\DrE\ioai i7 -7- invoo ORDINANCE NO. 927 "Section 3.30.170. Contents of Bids or Offers. } Any city official taking bids for the construction of any public work or improvement shall provide in the specifications prepared for the work or improvement or in the general conditions under which bids will be received for the doing of the work incident to the public work or improvement that any person making a bid or offer to perform the work, shall, in his or her bid or offer, set forth: The name and the location of the place of business of each subcontractor who will perform work or labor or render service to the prime contractor in or about the construction of the work or improvement, or a subcontractor licensed by the State of California who, under subcontract to the prime contractor, specially fabricates and installs a portion of the work or improvement according to detailed drawings contained in the plans and specifications, in an amount in excess of one-half of 1 percent of the prime contractor's total bid." "Section 3.30.180. Failure to Specify or Specification of More than One Subcontractor; Performance by Prime Contractor. If a prime contractor fails to specify a subcontractor or if a prime contractor specifies more than one subcontractor for the same portion of work to be performed under the contract in excess of one-half of 1 percent of the prime contractor's total bid, the prime contractor agrees that he or she is fully qualified to perform that portion himself or herself, and that the prime contractor shall perform that portion himself or herself." RMPUMDJEU 0411 "7 - 8 - 1 / 12/00 ORDINANCE NO. 927 "Section 3.30.190. Prime Contractor Whose Bid Is Accepted; Prohibitions. A prime contractor whose bid is accepted may not: (a) Substitute a person as subcontractor in place of the subcontractor listed in the original bid, except that the awarding authority, or its duly authorized officer, may, except as otherwise provided in Section 3.30.190, consent to the substitution of another person as a subcontractor in any of the following situations: (1) When the subcontractor listed in the bid after having had a reasonable opportunity to do so fails or refuses to execute a written contract, when that written contract, based upon the general terms, conditions, plans and specifications for the project involved or the terms of that subcontractor's written bid, is presented to the subcontractor by the prime contractor. (2) When the listed subcontractor becomes bankrupt or insolvent. (3) When the listed subcontractor fails or refuses to perform his or her subcontract. (4) When the listed subcontractor fails or refuses to meet the bond requirements of the prime contractor as set forth in Section 3.30.210. (5) When the prime contractor demonstrates to the awarding authority, or its duly authorized officer, subject to the further provisions set forth in Section 3.30.190, that the name of the subcontractor was listed as the result of an inadvertent clerical error. R10PUMDMI04117 -9- 1112/00 ORDINANCE NO. 927 (6) When the listed subcontractor is not licensed pursuant to the Contractors License Law. (7) When the awarding authority, or its duly authorized officer, determines that the work performed by the listed subcontractor is substantially unsatisfactory and not in substantial accordance with the plans and specifications, or that the subcontractor is substantially delaying or disrupting the progress of the work. (8) When the listed subcontractor is ineligible to work on a public works project pursuant to Section 1777.1 or 1777.7 of the Labor Code. Prior to approval of the prime contractor's request for the substitution in the awarding authority, or its duly authorized .. officer, shall give notice in writing to the listed subcontractor ofq} the prime contractor's request to substitute and of the reasons for the request. The notice shall be served by certified or registered mail to the last known address of the subcontractor. The listed subcontractor who has been so notified shall have five working days within which to submit written objections to the substitution to the awarding authority. Failure to file these written objections shall constitute the listed subcontractor's consent to the substitution. If written objections are filed, the awarding authority shall give notice in writing of at least five working days to the listed subcontractor of a hearing by the awarding authority or its designated agent on the prime contractor's request for substitution. RNTus\D.E\ioai 17 -10- 1/12/00 ORDINANCE NO. 927 (b) Permit a subcontract to be voluntarily assigned or transferred or allow it to be performed by anyone other than the original subcontractor listed in the original bid, without the consent of the awarding authority, or its duly authorized officer. (c) Other than in the performance of 'change orders' causing changes or deviations from the original contract, sublet or subcontract any portion of the work in excess of one- half of 1 percent of the prime contractor's total bid as to which his or her original bid did not designate a subcontractor." "Section 3.30.200. Claim of Inadvertent Clerical Error in Listing Subcontractors; Notice; Objection; Hearing. The prime contractor as a condition to assert a claim of inadvertent clerical error in the listing of a subcontractor shall within two working days after the time of the prime bid opening by the awarding authority give written notice to the awarding authority and copies of that notice to both the subcontractor he or she claims to have listed in error and the intended subcontractor who had bid to the prime contractor prior to bid opening. Any listed subcontractor who has been notified by the prime contractor in accordance with this section as to an inadvertent clerical error shall be allowed six working days from the time of the prime bid opening within which to submit to the awarding authority and to the prime contractor written objection to the prime contractor's claim of inadvertent clerical error. Failure of the listed subcontractor to file the written P WUB\n.JE\ioai i7 -11- 1/12/00 ORDINANCE NO. 927 notice within the six working days shall be primary evidence of his or her agreement that an inadvertent clerical error was made. The awarding authority may, after a public hearing as provided in Section 3.30.190 and in the absence of compelling reasons to the contrary, consent to the substitution of the intended subcontractor." "Section 3.30.210. Faithful Performance and Payment Bonds of Subcontractors. (a) It shall be the responsibility of each subcontractor submitting bids to a prime contractor to be prepared to submit a faithful performance and payment bond or bonds if so requested by the prime contractor. (b) In the event any subcontractor submitting a bid to a prime contractor does not, upon the request of the prime contractor and at the expense of the prime contractor at the established charge or premium therefor, furnish to the prime contractor a bond or bonds issued by an admitted surety wherein the prime contractor shall be named the obligee, guaranteeing prompt and faithful performance of the subcontract and the payment of all claims for labor and materials furnished or used in and about the work to be done and performed under the subcontract, the prime contractor may reject the bid and make a substitution of another subcontractor subject to Section 3.30.190. (c)(1) The bond or bonds may be required under this section only if the prime contractor in his or her written or xN1PLB\D.B\,1041i7 -12- 1/12/00 ORDINANCE NO. 927 published request for sub -bids clearly specifies the amount and requirements of the bond or bonds. (2) If the expense of the bond or bonds required under this section is to be borne by the subcontractor, that requirement shall also be specified in the prime contractor's written or published request for sub -bids. (3) The prime contractor's failure to specify bond requirements, in accordance with this subdivision, in the written or published request for sub -bids shall preclude the prime contractor from imposing bond requirements under this section." "Section 3.30.220. Subletting or Subcontracting Portion in Excess of Certain Percent of Prime Contractor's Total Bid to which No Subcontractor Was designated in Original Subletting or subcontracting of any portion of the work in excess of one-half of 1 percent of the prime contractor's total bid as to which no subcontractor was designated in the original bid shall only be permitted in cases of public emergency or necessity, and then only after a finding reduced to writing as a public record of the city setting forth the facts constituting the emergency or necessity." "Section 3.30.230. Violations of Chapter and Contracts; Cancellation or Penalty: Notice and Hearing. A prime contractor violating any of the provisions of this chapter violates his or her contract and the awarding authority may exercise the option, in its own discretion, of (1) canceling RWUB\D►E\ioai t 7 -13 - 1/12/00 ORDINANCE NO. 927 his or her contract or (2) assessing the prime contractor a penalty in an amount of not more than 10 percent of the amount of the subcontract involved, and this penalty shall be deposited in the fund out of which the prime contract is awarded. In any proceedings under this section the prime contractor shall be entitled to a public hearing and to five days' notice of the time and place thereof." "Section 3.30.240. Subcontractor and Prime Contractor. As used in this chapter, the word 'subcontractor shall mean a contractor, within the meaning of the provisions of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code, who contracts directly with the prime contractor." "3.30.250 Professional Services Firms A. The selection of design professionals shall, in addition to consideration of costs, meet the standards set forth in Chapter 10 (commencing with Section 4525) of Division 5 of Title 1 of the Government Code. Cost of the services in addition to the professional qualifications shall be utilized in the selection process." "3.30.260 Other Governmental Agencies. The city may participate with other governmental agencies such as the State of California, County of Riverside, or any other cities who have, through a bidding process, determined to award or purchase, supplies, merchandise, or other items needed by the city which program of other governmental agency allows participation by this city." FUWU13\DJE\104117 -14- 1/12/00 ORDINANCE NO. 927 "3.30.270 Change Orders and Interim Services A. Any change orders for contracts awarded under this Chapter 3.30 to the extent the change order does not exceed twenty percent (20%) of the contingency provided for in the bidding process and, in addition, does not exceed as an individual change order of $20,000, the same may be approved by the city manager or his designed representative. Approvals by the city manager or his designated representative under this section shall not exceed fifty percent (50%) of the approved contingency. Change orders exceeding $20,000 or exceeding fifty percent (50%) of the contingency provided shall be approved only by the city council. The city manager shall report his actions to the council on any change orders at the next regular council meeting. B. The city manager or his designed representative or the executive director of the redevelopment agency may approve selections on an interim basis professional services consultants pursuant to Section 3.30.250 in an amount not to exceed $10,000. Any actions under this section shall be reported to the city council at its next regular meeting." Section 2. The city clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published once and the same shall be in full force and effect thirty (30) days after its adoption. F,WUB\DJEU 04117 -15 - 1/ 12/00 ORDINANCE NO. 927 PASSED, APPROVED AND ADOPTED this 27th day of .January ._ :', 2000, by the City Council of the City of Palm Desert, California, by the following vote, to wit: AYES: Benson, Ferguson, Kelly, Spiegel, Crites NOES: None ABSENT: None ABSTAIN: None BUFO 'A. C E , Mayor City o Paim Desert, California ATTEST: By RACHELLE D. KLASSEN, ACTING CITY CLERK City of Palm Desert, California APPROVED AS TO FORM: BY — DAVID J. E IN, City Attorney City of Palm Desert, California FWUB\DJE\104117 -16- lnvoo