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CC Resolution 1998-014^#RB RESOLUTION NO.98-14 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA REGARDING SOLICITATION OF BIDS AND AWARD OF CONTRACTS FOR PUBLIC WORKS PROJECTS WHEREAS, pursuant to Chapter 3.30 of the La Quinta Municipal Code LQMC), the City Council desires to prescribe specific procedures and rules governing the solicitation of bids and award of contracts for public works projects; NOW, THEREFORE, the City Council of the City of La Quinta, California, does resolve as follows: Section 1: Applicability The procedures and rules herein shall apply to the solicitation of bids and award of contracts for public works projects pursuant to LQMC Chapter 3.30. Section 2: Local Contractor Preference A. For the purposes of this Chapter, the term local firm" shall mean a firm which has both maintained its headquarters or permanentlWstaffed regional office and has held a business license within the area encompassed by the boundaries of the Coachella Valley Association of Governments for a minimum of six consecutive months immediately prior to the closing date for submittal of bids on the contract. B. Determination of the lowest responsible bid for any public works contract shall allow an advantage of two percent 2%) of the lowest bid received to bids under which at least fifty percent 50%) of the contract cost is for work performed by local firms. C. Bidders desiring local preference shall submit, with their bids, in separate, unsealed packages, applications for local preference including qualifying evidence of local-firm status and a listing of the bid items and quantities to be performed or furnished by local firm(s). D. The Public Works Director shall review applications and accept or reject them based on completeness and the adequacy of evidence of local firm status. The denial of local firm status for any bid shall not affect the validity of the bid. E. Decisions regarding local*firm status shall be the sole discretion of the City and shall be deemed final at the time the contract is awarded. In submitting an application for local preference on any contract, the applicant shall agree that the BIB] 09-14-1998-U01 11:08:59AM-U01 ADMIN-U01 CCRES-U02 98-U02 14-U02 ^#RBResolution No.98-14 Page 2 granting or denial by the City of local preference to any bid or bids submitted for the contract shall not constitute cause for any claim of loss or damages suffered by the applicant. F. If a bidder qualifying for local-firm status is awarded a contract for an original amount higher than the lowest responsible bid received and the bidder fails to utilize local firms for the required percentage of the work in the original contract, and said failure is not due to variations from the estimated quantities or other factors unrelated to the bidder or bidder's subcontractors, the City shall have the right to deduct from the amount paid under the contract the difference between the bidder's original bid and any lower responsible bid submitted by a non-local firm. Section 3: Major Public Works Projects Major public works projects are defined as those projects having an estimated value of twenty five thousand dollars or greater. The solicitation and selection of bids and award of contracts shall conform with LQMC Section 3.30.020 and the following: A. Invitation for Bids. An Invitation for Bids the Invitation") shall be published in a newspaper, electronic bulletin board, world wide web site, or other generally-recognized source of local public works contract information, at least ten days prior to the date of the opening of bids. Invitations shall include general descriptions of the work to be performed, the time and place of the opening of bids, the place where bidders may obtain Bid Documents, the amount of bid security required, and the amount and nature of performance and labor and materials security that will be required of the successful bidder. B. Form of Bids. Bids conforming with the requirements of the Invitation shall be submitted to the Department Director the Director") in sealed packages or by other means which will prevent the divulging of bids prior to the stated time for opening of bids, all as specified in the Invitation or the Bid Documents. Unopened bids should be clearly marked or otherwise identifiable as bids for the project to which they apply. C. BidSecurity. Bids shall be accompanied by cash, cashier's check, certified check, surety bond, or other form of security stated in the Invitation or bidding documents, in a sum equal to ten percent of the amount of the bid. BIB] 09-14-1998-U01 11:08:59AM-U01 ADMIN-U01 CCRES-U02 98-U02 14-U02 ^#RB L Resolution No. 95*14 Pa*e 3 D. Opening of Bids. At the time and place stated in the Invitation, the bids shall be publicly opened and announced. The bid amounts shall be tabulated and the tabulation shall be available for public inspection at the Public Works Department during regular business hours for a period of not less than thirty calendar days after the bid opening. E. Review of bids. The Director shall review all bids received for completeness, accuracy, responsiveness to the Invitation for Bids and Bid Documents, and the City's experience with or knowledge of the qualifications and reliability of each bidder and shall prepare a recommendation for the City Council. The Director's review shall consider the following: 1. Written amounts shall take precedence over associated numeric amounts. Mathematical errors, if found, shall be corrected and shall not disqualify a bid. The corrected total shall be the bid amount considered in determining the lowest responsible bidder and shall be the contract amount awarded if the bid is selected. 2. If one or more responsible bidders qualify for local preference, and the lowest responsible bidder does not qualify, the Director shall allow the two-percent preference to qualifying bids in determining the lowest responsible bidder. F. Award of contract. Contracts shall be awarded by the City Council to the lowest responsible bidder. Determination of the lowest responsible bidder shall be at the sole discretion of the City Council pursuant to findings and recommendations presented by the Director of Public Works at the time of the award of contract. G. Equal bids If two or more equal low bids are received, the City Council may award the contract to any one of the equal low bidders. H. No bids When no bids are received from responsible firms, the City Council may accomplish the project in any manner it sees fit. I. Reiection of Bids. The City Council may reject any or all bids presented and may then direct that the project be re-advertised, may authorize negotiation of a contract with one or more responsible firms, or may resolve that the project can be performed more economically by City forces, day labor, time and materials contract, or other method. J. Execution of contract. The successful bidder shall execute the contract and furnish required performance security and labor and materials security within ten days after the City mails or otherwise forwards a written notice of award to the bidder. BIB] 09-14-1998-U01 11:08:59AM-U01 ADMIN-U01 CCRES-U02 98-U02 14-U02 ^#RBResolution No. 9B-14 Page 4 K. Forfeiture of bid security. If the successful bidder fails to execute the contract and furnish security within the stated time, and said failure is not primarily due to actions or omissions of the City or to acts of God, the bidder shall forfeit the bid security provided. The City Council may then consider the bid of the next lowest responsible bidder. L. Release of bid security. Bidders are entitled to the return of their bid security unless forfeited as provided herein. The City shall retain all bid security until a contract has been executed or until the City Council rejects all bids at which time all bid security not forfeited shall be returned to the appropriate bidders. M. Disposition of forfeited bid security. The City shall retain forfeited bid security until a contract is awarded to another firm or the project is canceled. The City shall retain an amount equal to the difference between the forfeiting firm's bid and the new contract amount, if any, and an additional amount equal to administrative and other costs incurred as a result of the failure of the forfeiting bidder to enter into a contract and provide required security, and shall return any remaining amount of the bid security to the forfeiting bidder. N. Performance securitv and labor and materials security. The bidder to whom the contract is awarded the successful bidder") shall furnish performance security and labor and materials security in amounts specified in the Invitation or Bid Documents. Section 4: Minor public works projects Minor public works projects are defined as those projects having an estimated value of less than twenty five thousand dollars. The solicitation and selection of bids and award of contracts shall conform with LQMC Section 3.30.030 and the following: A. Secu*y. Bid security and labor and materials security shall conform with the requirements for major public works projects but may be modified or waived if warranted and in the best interest of the City. B. Execution and Award of Contracts. 1. The City Council may award contracts. 2. The City Manager may award and execute contracts exceeding ten thousand dollars with the approval of the City Council. BIB] 09-14-1998-U01 11:08:59AM-U01 ADMIN-U01 CCRES-U02 98-U02 14-U02 ^#RBResolution No.98-14 Page 5 3. The City Manager may award and execute contracts for ten thousand dollars or less, and may waive competitive bidding if in the best interest of the City, provided there are unencumbered appropriations in the fund accounts against which the expenses are to be charged. 4. Department Directors may award and execute contracts of two thousand five hundred dollars or less with or without competitive bidding provided there are unencumbered appropriations in the fund accounts against which the expenses are to be charged. Section 5: Exceptions Exceptions to the procedures specified herein shall be as specified in LQMC Section 3.30.040 and as follows: A. The authority awarding the contract may waive irregularities in bids received provided that such waiver is in the best interest of the City and does not result in unfair advantage to any bidder. PASSED, APPROVED and ADOPTED this 3rd day of March, 1 998 by the following vote: AYES: Council Members Adolph, Henderson, Perkins, Sniff, Mayor Pena NOES: None ABSENT: None ABSTAIN: None $jffi.PEAM*yor City of La Quinta, California BIB] 09-14-1998-U01 11:08:59AM-U01 ADMIN-U01 CCRES-U02 98-U02 14-U02 ^#RB I Resolution No.98-14 Page 6 ATTEST: AUNDRA L. JUHOLA, City Clerk City of La Quinta, California APPROVED AS TO FORM: od* DAWN C. HONEY Attorney City of La Quinta, California BIB] 09-14-1998-U01 11:08:59AM-U01 ADMIN-U01 CCRES-U02 98-U02 14-U02