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A. Except as otherwise provided in this chapter, the erection of any public building or works or in furnishing any supplies, equipment and materials for same or for any other use by the city with an estimated value greater than forty thousand dollars and contracts for the purchase of concrete, fuel and asphalt with an estimated value greater than seventy-five thousand dollars shall be by written contract or order with the lowest responsible bidder pursuant to the procedure prescribed in this section.

B. Notice inviting Bids. Notices inviting bids shall include a general description of the articles to be purchased and shall state where bid forms and specifications may be secured and the time and place for opening bids.

1. Published Notice. Notices inviting bids shall be published at least five days before the date of the opening of the bids. Notices shall be published at least once in a newspaper of general circulation published in the city.

2. Bidders List. The finance department shall also solicit sealed bids from responsible prospective suppliers whose names are on the bidders list or from responsible prospective suppliers who have made a written request that their names be added thereto.

3. Bulletin Board. The finance department shall also advertise pending purchases by a notice posted on a public bulletin board in City Hall.

C. Bidders Security. Except when inviting bids for the sale of supplies, equipment, or materials, a bid bond in an amount equal to ten percent of the bid shall be prescribed in the public notices inviting bids. When purchasing supplies, equipment, or materials, the finance director or designee at his or her discretion may prescribe in the public notices inviting bids an appropriate security deposit or other applicable bond in an amount not to exceed one hundred percent of the total bid price. Bidders shall be entitled to return of bid security; provided, however, that a successful bidder shall forfeit his or her bid security upon his or her refusal or failure to execute the contract within ten days after the notice of award of contract has been mailed, unless in the latter event the city is solely responsible for the delay in executing the contract. 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 bidders security shall be applied by the city to the contract price differential between the lowest bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. If the city council rejects all other bids and readvertises, the amount of the lowest bidders security may be used to offset the cost of receiving new bids and any difference between that bidders bid and the price of the contract which is executed, and the surplus, if any, shall be returned to the lowest bidder.

D. Bid Opening Procedure. Sealed bids shall be submitted to the finance department and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the public notices. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than thirty calendar days after the bid opening.

E. Tie Bids. If two 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 in its discretion accept the one it chooses.

F. Bonds. Except for work to be performed by city’s own work forces, the following bonds shall be procured. In every contract for the erection of any public building or works, or in furnishing any supplies, equipment and materials for same, the city shall require a faithful performance bond in an amount equal to one hundred percent of the contract price issued by an insurer admitted to transact the class of surety insurance in the state of California and rated B+7 or better by A.M. Best Rating Service or an equivalent nationally recognized rating service. In addition to the above performance bond, in every contract for the erection of any public building or works, or in furnishing any supplies, equipment and materials for same, unless otherwise required by law, the city shall require a faithful labor and materials bond (payment bond) in an amount equal to one hundred percent of the contract price issued by an insurer admitted to transact the class of surety insurance in the state of California and rated B+7 or better by A.M. Best Rating Service or an equivalent nationally recognized rating service.

G. Retention Percentage. In contracts for the erection, improvement or repair of any public building or work, the city shall retain a percentage of each progress payment as permitted by law; provided, however, on contracts of five hundred thousand dollars or more, once the work under the contract has been at least fifty percent completed to the satisfaction of the city engineer, the finance director may direct that the city withhold no additional retention or reduce the percentage retained from future progress payments.

H. Substitution of Securities. The provisions of subsection G of this section notwithstanding, to the extent required by law, securities provided by the contractor may be substituted in lieu of any such retention. (Ord. 4692 § 1, 2012; Ord. 4285 § 1, 2005; Ord. 4028 § 1, 2001; Ord. 3981 § 1, 2000; Ord. 3750 § 1, 1997; Ord. 3617 § 1, 1994; Ord. 3214 § 2, 1989; prior code § 5.20.090)