SECTIONS 20500-20507 - California Statutes

PUBLIC CONTRACT CODE

SECTION 20500-20507

20500. The provisions of this article shall apply to contracts by a
city council, as provided in the Street Lighting Act of 1919, Part 1
(commencing with Section 18000) of Division 14 of the Streets and
Highways Code.

20501. (a) The city council shall, within 10 days after the
establishment of the district, invite bids for the making of the
improvement by ordering a notice of the invitation to be published by
two successive insertions in a daily or weekly newspaper published
or circulated in the city and designated by the city council for that
purpose. However, if the city council determines that there is only
one contractor practically capable of serving the street lighting
system to be improved in the manner provided in the plans and
specifications contained in the report provided for in Chapter 3
(commencing with Section 18040) of Part 1 of Division 14 of the
Streets and Highways Code and that the contractor is subject to the
jurisdiction of the Public Utilities Commission of the State of
California, the city council may, in its discretion, without
competitive bidding, order the improvement to be carried out by the
contractor in accordance with rates and rules filed by it from time
to time with the Public Utilities Commission.
(b) All bids for construction work shall be presented under sealed
cover and shall be accompanied by one of the following forms of
bidder's security which amounts to 10 percent of the bid:
(1) Cash.
(2) A cashier's check made payable to the city.
(3) A certified check made payable to the city.
(4) A bidder's bond executed by an admitted surety insurer, made
payable to the city.
The security shall be forfeited to the city in case the bidder
depositing it does not, within 15 days after the notice that the
contract has been awarded to him or her, enter into a contract with
the city for making the improvement, the faithful performance of
which shall be secured by an undertaking in those penal sums as the
city council shall require, with sureties satisfactory to that body.
In any case where competitive bidding is required, the contract shall
be awarded to the lowest responsible bidder. Upon an award to the
lowest bidder, the security of an unsuccessful bidder shall be
returned in a reasonable period of time, but in no event shall that
security be held by the city beyond 60 days from the time the award
is made.

20502. The contract shall require that the improvement be made, and
the improvement shall be made, strictly in accordance with the plans
and specifications contained in the report provided for in Chapter 3
of Part 1 of Division 14 of the Streets and Highways Code.
The contract for service shall be for a period not less than three
years from and after the date electric energy and service is first
delivered to the lighting district pursuant to such contract and
shall be extended automatically thereafter for successive terms of
one year each; provided, that the agreement may be terminated by
either party upon not less than 60 days' written notice prior to the
expiration date of the original term or any extended term; and
provided further, that the contract for service may be for a period
of less than three years by mutual consent of the city council and
the contractor.

20503. The improvement shall be made under the supervision of the
board, officer or person designated by the city council, and no
portion shall be paid for until it has been accepted by that board,
officer or person.

20504. If the contractor abandons the making of the improvement, or
fails to proceed with it as rapidly as required by his contract, the
city council may relet the contract in the same manner as in the
case of the first letting thereof and retain the amount of the cost
of the portion relet, and of any expenses incidental to the
reletting, out of any funds due or to become due to the contractor.
The city council may also hold the contractor and his sureties
responsible upon his bond for such cost and expense, and for any
damages resulting from such abandonment or failure.

20505. The city council may, at any time within 20 days after the
opening of bids, or, if no bids are received, at any time within 20
days after the time fixed for the opening of bids, order by
resolution adopted by a vote of two-thirds of all of its members,
that the city itself execute the work of the improvement, or any part
thereof, in accordance with the plans and specifications adopted for
such work, or for such part thereof, and employ the labor and
provide the materials, appliances, supplies or illuminating agent
necessary therefor. The cost and expenses of such work, or of such
part thereof, shall be paid out of the special fund collected to pay
for the improvement. If the city council orders that only a part of
the work of the improvement be executed by the city then the city
council may reject all bids, if any, received for such part of the
work and may proceed with the award of the contract for the remaining
part of the work.

20506. If the work of the improvement, or any part thereof, is
executed by the city, then the amount appropriated and used from the
special fund to pay the costs and expenses of the work or part
thereof executed by the city shall not exceed the amount of the
respective lowest valid bid received for such work or for such part
thereof, or, if no bids have been received and the work of the
improvement is executed by the city the amount appropriated and used
from the special fund to pay the costs and expenses of such work
shall not exceed the amount of the respective estimate thereof
provided for in Section 18041 of the Streets and Highways Code. If
such costs and expenses exceed the amount of the said bid, or of the
said estimate in case no bids are received, then such excess cost and
expense shall be paid out of any moneys in the general fund in the
city treasury.

20507. At any time after the funds for the proposed improvement, or
any part thereof, are in the hands of the city treasurer, the city
council may, without calling for bids, order by resolution, adopted
by a vote of two-thirds of all its members, that the city itself
execute the work of such improvement, or any part thereof, in
accordance with the plans and specifications adopted for such work or
for such part thereof, and employ the labor, and provide the
materials, appliances, supplies or illuminating agent necessary
therefor. In such case the costs and expenses of such work, or of
such part thereof, shall be paid out of the aforesaid funds, except
that if such costs and expenses exceed the amount of the respective
estimates provided for in Section 18041 of the Streets and Highways
Code, then such excess shall be paid out of the moneys in the general
fund in the city treasury.