3.40.070 Public works contracts and major acquisitions.
Purchases and contracts for supplies, services, and equipment in an amount exceeding the limits set forth in SMC 3.40.060 and those associated with a public project in accordance with the California Public Contract Code shall be by written contract with the lowest responsible bidder, pursuant to the procedure described in this section:
A. Notice Inviting Bids. Notices inviting bids shall include a general description of the articles to be purchased or sold, shall state where bid blanks and specifications may be secured, and the time and place for opening bids.
1. Published Notice. Notice inviting bids shall be published at least 10 days before the date of opening the bids. Notice shall be published at least once. However, in cases of public projects covered by the Public Contract Code, notice shall be published according to that code.
2. Bidders’ List. The purchasing officer may also solicit sealed bids from all responsible prospective suppliers whose names are on the bidders’ list or who have requested their names to be added thereto.
B. Bidders’ Security. All bids presented in connection with a public project as defined in the Public Contract Code shall be accompanied by bidders’ security in the form and amount prescribed by that code, which security shall be dealt with as prescribed therein. In the case of all other major acquisitions, when determined necessary by the purchasing officer, bidders’ security may be prescribed in the public notices inviting bids. In all cases, bidders shall be entitled to a return of bid security; provided, that a successful bidder shall forfeit his/her bid security upon refusal or failure to execute the contract within 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 purchasing officer and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the public notice. A tabulation of all bids received shall be 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 five calendar days after the bid opening.
D. Rejection of Bids. In its discretion, the City Council may reject any and all bids presented and re-advertise 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 or more bids received are for the same amount or unit price, quality and service being equal, and if the public interest will not permit the delay of re-advertising for bids, the City Council may accept the one it chooses or accept the lowest bid made by negotiation with the tie bidders or may utilize a public drawing.
G. Performance Bonds. The purchasing officer shall have authority to require a performance bond before entering a contract in such amount as he finds reasonably necessary to protect the best interest of the City. If the purchasing officer requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids.