BILL NUMBER: SB 1860 CHAPTERED
BILL TEXT
CHAPTER 142
FILED WITH SECRETARY OF STATE JULY 13, 1998
APPROVED BY GOVERNOR JULY 11, 1998
PASSED THE SENATE JUNE 29, 1998
PASSED THE ASSEMBLY JUNE 25, 1998
AMENDED IN ASSEMBLY JUNE 15, 1998
AMENDED IN ASSEMBLY JUNE 4, 1998
INTRODUCED BY Senator Costa
(Principal coauthor: Assembly Member Prenter)
(Coauthor: Assembly Member Thomson)
FEBRUARY 19, 1998
An act to amend Sections 20201, 20206.4, 20581, 20631, 20642,
20685, 20783, 20803, 21031, 21042, 21161, 21201, 21321, 21511, 21541,
and 21621 of the Public Contract Code, to amend Section 65 of the
Antelope Valley-East Kern Water Agency Law (Chapter 2146 of the
Statutes of 1959), to amend Section 13 of the Fresno Metropolitan
Flood Control Act (Chapter 503 of the Statutes of 1955), and to amend
Section 28 of the Kings River Conservation District Act (Chapter 931
of the Statutes of 1951), relating to public works.
LEGISLATIVE COUNSEL'S DIGEST
SB 1860, Costa. Local Agency Public Construction Act:
competitive bidding: local agencies.
(1) The Local Agency Public Construction Act sets forth the
requirements for competitive bidding on various types of contracts
awarded by local agencies. Under existing provisions of that act, a
public utility district, municipal water district, water storage
district, levee district, community services district, sanitation
district, sanitary district, the American River Flood Control
District, the Orange County Water District, the Santa Clara Valley
Water District, the Yolo County Flood Control and Water Conservation
District, the Tehama County Flood Control and Water Conservation
District, the San Gorgino Pass Water Agency, the Crestline-Lake
Arrowhead Water Agency, the Monterey Peninsula Water Management
District, the Antelope Valley-East Kern Water Agency, the Fresno
Metropolitan Flood Control District, and the Kings River Conservation
District, when letting various contracts over a specified dollar
amount, are required to let the contracts to the lowest responsible
bidder.
This bill would increase the threshold amounts for these purposes.
(2) Existing law requires the board of a public utility district
to advertise annually for sealed bids for furnishing the district
with supplies and advertisements.
This bill would authorize, but not require, the board of a public
utility district to advertise annually for this purpose.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 20201 of the Public Contract Code is amended to
read:
20201. Every complete project for new construction or project for
any alteration, maintenance, or repair, if the costs of materials,
supplies and labor exceed fifteen thousand dollars ($15,000), shall
be let to the lowest responsible bidder. The board shall adopt plans
and specifications, strain sheets, and working details and shall
advertise for bids for the project in accordance with the plans and
specifications so adopted. Notice inviting bids for all projects
shall be published in a newspaper in the district at least one week
prior to the time specified for receiving bids.
SEC. 2. Section 20206.4 of the Public Contract Code is amended to
read:
20206.4. Except as otherwise provided in this article, the board
may annually advertise for sealed bids for furnishing the district
with goods, merchandise, stores, subsistence, printing, materials,
and all other supplies, and advertising. The advertisement shall be
published pursuant to Section 6062 of the Government Code in the
county in which the greater part of the district is situated.
SEC. 3. Section 20581 of the Public Contract Code is amended to
read:
20581. Before making any contract for the construction or
improvement of works in carrying out any project totaling twenty-five
thousand dollars ($25,000) or more, the board shall advertise for
bids.
SEC. 4. Section 20631 of the Public Contract Code is amended to
read:
20631. Contracts in excess of two thousand five hundred dollars
($2,500) for the construction or repair of any levees or associated
works, unless the construction or repair is done under its own
superintendence, shall be made pursuant to this chapter.
SEC. 5. Section 20642 of the Public Contract Code is amended to
read:
20642. When work is not to be done by the district itself by
force account, and the amount involved is thirty-five thousand
dollars ($35,000), or more, any contract for the doing of the work
shall be let to the lowest responsible bidder, after publication, in
the manner prescribed by the board, of notices inviting bids
therefor. However, the board may reject any and all proposals.
SEC. 6. Section 20685 of the Public Contract Code is amended to
read:
20685. (a) All contracts for the construction of any unit of
work, except as provided in this article, estimated to cost in excess
of fifteen thousand dollars ($15,000), shall be let to the lowest
bidder after competitive bidding. The board shall have the right to
reject any bid, in which case the board may call for new bids.
(b) In the event no proposals are received, or where the estimated
cost of the work does not exceed the sum of ten thousand dollars
($10,000), or where the work consists of emergency work, the board of
directors may have that work done by force account. In the case of
an emergency, if notice for bids to let contracts will not be given,
the board shall comply with Chapter 2.5 (commencing with Section
22050).
(c) The district shall have the power to purchase, in the open
market without calling for bids, materials and supplies for use in
the work either under contract or by force account. However,
materials and supplies for use in any new construction work or
improvement, except work referred to in subdivision (b), may not be
purchased if the cost exceeds fifteen thousand dollars ($15,000),
without calling for bids and awarding the contract to the lowest
responsible bidder.
SEC. 7. Section 20783 of the Public Contract Code is amended to
read:
20783. When work is done by the district itself by force account,
the amount shall not exceed five thousand dollars ($5,000). When
the expenditure required for the work exceeds thirty-five thousand
dollars ($35,000), it shall be contracted for and let to the lowest
responsible bidder after notice. The notice inviting bids shall set
a date for the opening of bids. The first publication or posting of
the notice shall be at least 10 days before the date of opening the
bids. Notice shall be published at least twice, not less than five
days apart, in a newspaper of general circulation, printed and
published in the district, or if there is none, it shall be posted in
at least three public places in the district that have been
designated by the district board as the places for posting this
notice. The notice shall distinctly state the work to be done.
In its discretion, the district board may reject any bids
presented and readvertise. If two or more bids are the same and the
lowest, the district board may accept the one it chooses. If no bids
are received, the district board may have the work done without
further bid.
If all bids are rejected, the district board, on a resolution
adopted by a four-fifths vote, may declare that the work can be
performed more economically by day labor, or the materials or
supplies furnished at a lower price in the open market and may have
the work done in a manner stated in the resolution in order to take
advantage of this lower cost.
If there is a present or anticipated great public calamity,
including an extraordinary fire, flood, storm, or other disaster the
district board may, by resolution adopted by a four-fifths vote
declaring that the public interest and necessity demand immediate
expenditure of public money to safeguard life, health, or property,
expend any sum required in the emergency without submitting the
expenditure to bid.
Cost records of the work shall be kept in the manner provided in
Sections 4000 to 4007, inclusive, of the Government Code.
This section shall not apply to sewerage maintenance, repair work,
or to any uncompleted works under construction by district forces
prior to the enactment of this section, and shall not be construed to
exempt any work from Part 7 (commencing with Section 1720) of
Division 2 of the Labor Code.
SEC. 8. Section 20803 of the Public Contract Code is amended to
read:
20803. When the expenditure required for a district project
exceeds fifteen thousand dollars ($15,000), it shall be contracted
for and let to the lowest responsible bidder after notice, subject to
Section 20805.
SEC. 9. Section 21031 of the Public Contract Code is amended to
read:
21031. (a) In all work of improvement or repair of any of the
works or property of the district and in the furnishing of materials
or supplies therefor, when the expenditures required exceed
twenty-five thousand dollars ($25,000), the work shall be done by
contract, and shall be let to the lowest responsible bidder, after
notice by publication in a newspaper of general circulation published
in the district for at least two insertions in a weekly newspaper or
at least 10 insertions in a daily newspaper; the notices shall state
the work contemplated or the materials or supplies required, or
both. The board of trustees may reject any bid presented and
readvertise in their discretion. The board may declare and determine
that in its opinion the work in question can be performed more
economically by day labor or the materials or supplies can be
furnished at a lower price in the open market, and they may proceed
to have the work done or the materials purchased without further
observance of the foregoing provisions of this section.
(b) In case of an emergency, the board of trustees may declare a
state of great public emergency and proceed to have all necessary
work done and materials and supplies furnished without further
observance of the foregoing provisions of this section. If notice
for bids to let contracts will not be given, the board shall comply
with Chapter 2.5 (commencing with Section 22050).
(c) None of the foregoing provisions of this section apply to work
done by contract with the United States, the State of California, or
any political subdivision, or public agency thereof. Any work of
improvement or repair provided for in this article may be located,
constructed and maintained in, along, or across any railroad, public
road, or highway in the County of Sacramento, in a manner that
ensures security for life and property. The board of trustees shall
restore or cause to be restored the road or highway to its former
state as near as possible to preserve its usefulness.
SEC. 10. Section 21042 of the Public Contract Code is amended to
read:
21042. The district may prescribe methods for the construction of
works and for the letting of contracts for any of the following
purposes:
(a) The construction of works, structures, or equipment.
(b) The performance or furnishing of labor, materials, or
supplies, necessary or convenient for carrying out any of the
purposes of this act.
(c) The acquisition or disposal of any real or personal property.
When work is not to be done by the district itself by force
account, and the amount involved is forty thousand dollars ($40,000),
or more, any contract for the doing of the works shall be made by
the district with the lowest and best bidder after the publication
pursuant to Section 6061 of the Government Code in a newspaper of
general circulation published within the district, of a notice
calling for bids and fixing a period during which bids will be
received, which shall be not less than 10 days after the publication
of the notice. The district may reject any and all of the bids
presented and may readvertise in its discretion. After rejecting
bids, or if no bids are received, the district may determine and
declare that in its opinion, based on estimates submitted by the
engineer for the district, any work may be performed better or more
economically by the district with its own employees, or after hiring
additional employees. After the adoption of a resolution to this
effect by at least seven affirmative votes of the directors of the
district, the district may proceed to have that work done in the
manner stated and without further observance of the provisions of
this section.
SEC. 11. Section 21161 of the Public Contract Code is amended to
read:
21161. (a) Any improvement or unit of work not performed by
district personnel and estimated by the engineer to cost in excess of
twenty-five thousand dollars ($25,000) shall be done by contract.
All contracts shall be let to the lowest responsible bidder or
bidders in the manner provided in this article. The board shall
first determine whether the contract shall be let as a single unit
for the whole of the work, or shall be divided into severable parts,
or both, according to the best interests of the district. The board
shall call for bids and advertise the call by three insertions in a
daily newspaper of general circulation or by two insertions in a
weekly newspaper of general circulation printed and published in the
district inviting sealed proposals for the construction or
performance of the improvement or work before any contract is made.
The call for bids shall state whether the work is to be performed as
a unit for the whole thereof or shall be divided into severable
specific parts, or both, as stated in the call. The board may let
the work by single contract or it may divide the work into severable
parts by separate contracts, as stated in the call, according to the
best interests of the district. The board shall require the
successful bidder or bidders to file with the board good and
sufficient bonds to be approved by the board conditioned upon the
faithful performance of the contract and upon the payment of their
claims for labor and material, the bonds to contain the terms and
conditions set forth in Title 15 (commencing with Section 3082) of
Part 4 of Division 3 of the Civil Code and to be subject to the
provisions of that title. The board shall also have the right to
reject any bid. In the event all proposals are rejected or no
proposals are received pursuant to advertisement, or the estimated
cost of the work does not exceed five thousand dollars ($5,000), or
the work consists of channel protection, maintenance work, or
emergency work, the board may, without advertising for bids, have the
work done by force account. In case of an emergency, if notice for
bids to let contracts will not be given, the board shall comply with
Chapter 2.5 (commencing with Section 22050). The district may
purchase in the open market, without advertising for bids, materials
and supplies for use in any work either under contract or by force
account.
(b) The provisions of this section requiring competitive bidding
and the award of contracts to the lowest responsible bidder are
inapplicable to the extent the improvement or unit of work is to be
performed on its own facilities by a public utility subject to the
jurisdiction of the California Public Utilities Commission.
SEC. 12. Section 21201 of the Public Contract Code is amended to
read:
21201. All contracts for the construction of any unit of work,
except as provided, estimated to cost in excess of ten thousand
dollars ($10,000) shall be let to the lowest responsible bidder in
the manner as provided.
SEC. 13. Section 21321 of the Public Contract Code is amended to
read:
21321. (a) All contracts for any improvement or unit of work,
when the cost according to the estimate of the engineer will exceed
thirty thousand dollars ($30,000), shall be let to the lowest
responsible bidder or bidders as provided in this article. The board
shall first determine whether the contract shall be let as a single
unit, or divided into severable parts. The board shall advertise for
bids by three insertions in a daily newspaper of general circulation
or by two insertions in a weekly newspaper of general circulation
printed and published in the agency's jurisdiction, inviting sealed
proposals for the construction or performance of the improvement or
work. The call for bids shall state whether the work shall be
performed in one unit or divided into parts. The work may be let
under a single contract or several contracts, as stated in the call.
The board shall require the successful bidders to file with the
board good and sufficient bonds to be approved by the board
conditioned upon the faithful performance of the contract and upon
the payment of their claims for labor and material. The bonds shall
comply with Title 15 (commencing with Section 3082) of Part 4 of
Division 3 of the Civil Code.
(b) The board may reject any bid. In the event all proposals are
rejected or no proposals are received, or the estimated cost of the
work does not exceed five thousand dollars ($5,000), or the work
consists of channel protection, maintenance, or emergency work, the
board may have the work done by force account without advertising for
bids. In case of an emergency, if notice for bids to let contracts
will not be given, the board shall comply with Chapter 2.5
(commencing with Section 22050). In the event that no proposals are
received, or if only one responsive proposal is received, the board
may negotiate a contract for construction or performance of the work
or improvement or substantially similar work or improvement.
However, if only one responsive proposal is received, the contract
must be negotiated with the bidder.
(c) The agency may purchase in the open market without advertising
for bids, materials and supplies for use in any work, either under
contract or by force account.
(d) Sections 4300 to 4305, inclusive, of the Government Code do
not apply to the agency's Middle Fork American River Project.
(e) This section applies to all proposals or contracts whether or
not received or entered into prior to the effective date of the
amendment of this provision made at the 1963 Regular Session of the
Legislature.
SEC. 14. Section 21511 of the Public Contract Code is amended to
read:
21511. (a) All contracts for any improvement or unit of work,
when the cost according to the estimate of the engineer will exceed
fifty thousand dollars ($50,000), shall be let to the lowest
responsible bidder or bidders as provided in this article. The board
shall first determine whether the contract shall be let as a single
unit or divided into severable parts. The board shall advertise for
bids by three insertions in a daily newspaper of general circulation
or by two insertions in a weekly newspaper of general circulation
printed and published in the agency, inviting sealed proposals for
the construction or performance of the improvement or work. The call
for bids shall state whether the work shall be performed in one unit
or divided into parts. The work may be let under a single contract
or several contracts, as stated in the call. The board shall require
the successful bidders to file with the board good and sufficient
bonds to be approved by the board conditioned upon the faithful
performance of the contract and upon the payment of their claims for
labor and material. The bonds shall comply with Title 15 (commencing
with Section 3082) of Part 4 of Division 3 of the Civil Code. The
board may reject any and all bids.
(b) In the event all proposals are rejected or no proposals are
received, or the estimated cost of the work does not exceed ten
thousand dollars ($10,000), or the work consists of channel
protection, maintenance work, or emergency work, the board may have
the work done by force account without advertising for bids. In case
of an emergency, if notice for bids to let contracts will not be
given, the board shall comply with Chapter 2.5 (commencing with
Section 22050).
(c) The agency may purchase in the open market without advertising
for bids, materials and supplies for use in any work, either under
contract or by force account. However, materials and supplies for
use in any new construction work or improvement, except work referred
to in subdivision (b), may not be purchased, if the cost exceeds
fifty thousand dollars ($50,000), without advertising for bids and
awarding the contract to the lowest responsible bidder.
SEC. 15. Section 21541 of the Public Contract Code is amended to
read:
21541. (a) The Crestline-Lake Arrowhead Water Agency shall have
power to prescribe methods for the construction of works and for the
letting of contracts for the construction of works, structures, or
equipment, or the performance or furnishing of labor, materials, or
supplies, necessary or convenient for carrying out any of the
purposes of this act or for the acquisition or disposal of any real
or personal property. However, all contracts for the construction of
any improvement or unit of work, when the cost, according to the
estimate of the engineer, will exceed twenty-five thousand dollars
($25,000), shall be let to the lowest responsible bidder or bidders
as provided in this article. The board shall first determine whether
the contract shall be let as a single unit or divided into severable
parts. The board shall advertise for bids by three insertions in a
daily newspaper of general circulation or by two insertions in a
weekly newspaper of general circulation printed and published in the
agency, inviting sealed proposals for the construction or performance
of the improvement or work. The call for bids shall state whether
the work shall be performed in one unit or divided into parts. The
work may be let under a single contract or several contracts, as
stated in the call.
The board shall require the successful bidders to file with the
board good and sufficient bonds to be approved by the board
conditioned upon the faithful performance of the contract and upon
the payment of their claims for labor and material. The bonds shall
comply with Title 15 (commencing with Section 3082) of Part 4 of
Division 3 of the Civil Code. The board may reject any bid.
(b) In the event all proposals are rejected or no proposals are
received, or the estimated cost of the work does not exceed five
thousand dollars ($5,000), or the work consists of channel
protection, maintenance work, or emergency work, the board may have
the work done by force account without advertising for bids. In case
of an emergency, if notice for bids to let contracts will not be
given, the board shall comply with Chapter 2.5 (commencing with
Section 22050).
(c) The agency may purchase in the open market without advertising
for bids, materials and supplies for use in any work, either under
contract or by force account. However, materials and supplies for
use in any new construction work or improvement, except work referred
to in subdivision (b), may not be purchased if the cost exceeds
twenty-five thousand dollars ($25,000), without advertising for bids
and awarding the contract to the lowest responsible bidder.
SEC. 16. Section 21621 of the Public Contract Code is amended to
read:
21621. Any improvement or unit of work, when the cost, according
to the estimate of the engineer, will exceed ten thousand dollars
($10,000), shall be done by contract and shall be let to the lowest
responsible bidder or bidders in the manner provided in this article.
The board shall first determine whether the contract shall be let
as a single unit or shall be divided into severable parts, according
to the best interests of the district. The board shall call for bids
and advertise the call by publication pursuant to Section 6061.3 of
the Government Code in a newspaper of general circulation published
or circulated in the district, inviting sealed proposals for the
construction or performance of the improvement or work before any
contract is made. The call for bids shall state whether the work is
to be performed as a unit or is to be divided into parts, as stated
in the call. The board may let the work by single contract or it may
divide the work into parts by separate contracts, as stated in the
call.
SEC. 17. Section 65 of the Antelope Valley-East Kern Water Agency
Law (Chapter 2146 of the Statutes of 1959) is amended to read:
Sec. 65. All powers, privileges, and duties vested in or imposed
upon the Antelope Valley-East Kern Water Agency incorporated
hereunder shall be exercised and performed by and through the board
of directors. However, the exercise of any and all executive,
administrative, and ministerial powers may be by the board of
directors delegated and redelegated to any of the offices created
hereby and by the board of directors acting hereunder.
The board of directors shall have power:
(1) To fix the time and place or places at which its regular
meetings shall be held, and to provide for the calling and holding of
special meetings.
(2) To fix the location of the principal place of business of the
agency and the location of all offices and departments maintained
hereunder.
(3) To prescribe by ordinance a system of business administration
and to create any and all necessary offices and to establish and
reestablish the powers and duties and compensation of all officers
and employees and to require and fix the amount of all official bonds
necessary for the protection of the funds and property of the
agency.
(4) To prescribe by ordinance a system of civil service.
(5) To delegate and redelegate by ordinance to officers of the
agency power to employ clerical, legal, and engineering assistants
and labor, and under the conditions and restrictions as shall be
fixed by the directors, power to bind the agency by contract.
(6) To prescribe a method of auditing and allowing or rejecting
claims and demands.
(7) To prescribe methods for the construction of works and for the
letting of contracts for the construction of works, structures, or
equipment, or the performance or furnishing of labor, materials, or
supplies, necessary or convenient for carrying out any of the
purposes of this act or for the acquisition or disposal of any real
or personal property. However, in cases where work is not to be done
by the agency itself by force account, and the amount involved shall
be fifty thousand dollars ($50,000), or more, any contract for the
doing of the work shall be let to the lowest responsible bidder,
after publication, in the manner prescribed by the board, of notices
inviting bids therefor, subject to the right of the board to reject
any and all proposals. Contracts, in writing or otherwise, for the
acquisition or disposal of any real or personal property may be let
without calling for competitive bids. The board may, from time to
time, fix and establish the manner of calling for bids and letting
contracts, but except as the procedure established by the board
otherwise requires, all contracts may be entered into upon the terms
and in the manner as the board may authorize.
(8) To fix the rates at which water should be sold, and to
establish different rates for different classes or conditions of
service. However, rates shall be uniform for like classes or
conditions of service throughout the agency, but any special water
rate fixed in accordance with terms and conditions of annexation
fixed by the board under Section 82 or 83 hereof, shall be deemed to
be a rate for a different class or condition of service. The board
may, by resolution or ordinance, adopt regulations respecting the
exercise of its powers and the carrying out of its purposes, and to
fix and collect rates and charges for the providing or the
availability of any service it is authorized to provide or make
available for the sale, lease, or other disposition of water or other
product of its works or operations, including standby charges and
connection charges. A violation of a regulation of the agency
adopted by ordinance is a misdemeanor punishable by fine not to
exceed one hundred dollars ($100), imprisonment not to exceed one
month, or by both the fine and imprisonment.
SEC. 18. Section 13 of the Fresno Metropolitan Flood Control Act
(Chapter 503 of the Statutes of 1955) is amended to read:
Sec. 13. All contracts for materials, supplies, or for the
construction or repair of works or improvements that has a contract
price exceeding ten thousand dollars ($10,000) shall be let to the
lowest responsible bidder after notice inviting bids is published in
the district pursuant to Section 6061 of the Government Code, the
publication to be not less than 10 days prior to the date set for the
opening of bids. The contracts may be let by the board without
public bidding where (1) they are entered into with any other public
agency for governmental entity, (2) the contract price does not
exceed ten thousand dollars ($10,000), or (3) an emergency
threatening the public health, safety, and welfare has been declared
by the board. Contracts for the maintenance or operation of district
works or improvements may be negotiated when determined by the board
to be in the public interest.
SEC. 19. Section 28 of the Kings River Conservation
District Act (Chapter 931 of the Statutes of 1951) is amended to
read:
Sec. 28. The board shall fix all water and power rates and all
other charges for services or work done by the district and shall,
through the general manager, collect the same. The board may
establish suitable rules and regulations for the sale, distribution,
and use of water and power and other services that may be rendered by
the district and made therein and may provide that water, power, or
services shall not be furnished to those against whom there are
delinquent rates or charges.
The board may prescribe methods for the construction of works and
the furnishing of materials, equipment, and supplies and for the
letting of contracts therefor. However, any such contract requiring
the expenditure of fifty thousand dollars ($50,000), or more, shall
be subject to competitive bidding, after advertisement therefor, and
awarded to the lowest responsible bidder, except where the
construction or work is to be done or performed by the district with
its own forces upon force account.