This part applies to contracts by water replenishment districts established pursuant to this division.
Part 8COMPETITIVE BIDDING
Section § 60600
This law section states that the rules and guidelines it outlines are specifically for contracts made by water replenishment districts.
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Section § 60602
If a district plans to enter a contract worth $25,000 or more in a year, they must first seek bids through advertising. This requirement applies if the expenditure is in the annual budget for items reaching that amount. However, certain contracts are exempt, like hiring district employees, contracts with other public entities, and contracts solely for travel expenses or retaining expert witnesses, among others.
Additionally, the district has the flexibility to impose stricter bidding and procurement rules than those in the Public Contract Code. This requirement will be effective starting January 1, 2028.
(a)CA Water Code § 60602(a) Before making any contract totaling twenty-five thousand dollars ($25,000) or more within any 12-month period, the district shall advertise for bids.
(b)CA Water Code § 60602(b) Notwithstanding subdivision (a), if a proposed expenditure described in the annual district budget for any item of supplies or services equals or exceeds twenty-five thousand dollars ($25,000), the district shall advertise for bids before making any contract for that item during the year to which that budget applies.
(c)CA Water Code § 60602(c) This section does not apply to any of the following contracts:
(1)CA Water Code § 60602(c)(1) The
recruitment, hiring, and dismissal of district employees and officers.
(2)CA Water Code § 60602(c)(2) Contracts with other public entities pursuant to subdivision (i) of Section 60230.
(3)CA Water Code § 60602(c)(3) Contracts for which only per diem and travel expenses are paid and there is no payment for services rendered.
(4)CA Water Code § 60602(c)(4) Contracts solely for the purpose of retaining expert witnesses for litigation.
(5)CA Water Code § 60602(c)(5) Contracts for proprietary information or systems.
(6)CA Water Code § 60602(c)(6) Contracts for professional services, including, but not limited to, architectural, engineering, environmental, land surveying, or construction project management services, that are let on the basis of
demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required pursuant to Chapter 10 (commencing with Section 4525) of Division 5 of Title 1 of the Government Code.
(7)CA Water Code § 60602(c)(7) Contracts for legal services that are let on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services.
(d)CA Water Code § 60602(d) The district may adopt other procurement, advertising, and bidding rules that are more restrictive than those contained in the Public Contract Code and those more restrictive rules shall govern the procurement, advertising, and bidding practices of the district.
(e)CA Water Code § 60602(e) This section shall become operative on January 1,
2028.
public contract bidding district contracting procurement rules advertising for bids contract exemptions budget expenditure contracts professional services contracts district bidding process contract value threshold more restrictive rules effective date 2028 proprietary information contracts recruitment and hiring exemptions interpublic entity contracts
Section § 60604
This law outlines the procedures for a district to carry out improvements or work projects. Generally, district personnel should not undertake work exceeding $25,000 unless it's maintenance or emergency work. The district must publish a notice for any contracts concerning the work, including plans, bid details, and bidder selection criteria.
Bids must be sealed and come with security, like cash or a certified check. If your bid isn’t chosen, you'll get your security back within 60 days.
The board has options: choose the lowest bid, reject all bids and seek new ones, do the work themselves, or negotiate if no bids come in at all.
(a)CA Water Code § 60604(a) For any improvement or unit of work done by district personnel, the estimated cost of the work shall not exceed twenty-five thousand dollars ($25,000), except under either of the following circumstances:
(1)CA Water Code § 60604(a)(1) The work consists of maintenance work, as defined in subdivision (d) of Section 22002 of the Public Contract Code.
(2)CA Water Code § 60604(a)(2) The work consists of emergency work.
(b)CA Water Code § 60604(b) Notice of a contract for any improvement or work shall be made by the district after publication pursuant to Section 6064 of the Government Code. The notice shall set forth all of the following information:
(1)CA Water Code § 60604(b)(1) Plans and specifications of the work to be done can be seen at the office of the district.
(2)CA Water Code § 60604(b)(2) The board will receive sealed bids.
(3)CA Water Code § 60604(b)(3) The contract will be let to the lowest responsible bidder.
(4)CA Water Code § 60604(b)(4) The bids will be opened in public at a given time and place.
(c)CA Water Code § 60604(c) If less than the whole work provided for in the plans and specifications is to be done, the portion to be done shall be particularly described in the notice.
(d)CA Water Code § 60604(d) 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:
(1)CA Water Code § 60604(d)(1) Cash.
(2)CA Water Code § 60604(d)(2) A cashier’s check made payable to the district.
(3)CA Water Code § 60604(d)(3) A certified check made payable to the district.
(4)CA Water Code § 60604(d)(4) A bidder’s bond executed by an admitted surety insurer, made payable to the district.
(e)CA Water Code § 60604(e) Upon an award to the lowest bidder, the security of an unsuccessful bidder shall be returned in a reasonable period, but in no event shall that security be held by the district beyond 60 days from the time the award is made.
(f)CA Water Code § 60604(f) The board may do any of the following:
(1)CA Water Code § 60604(f)(1) Let the work to the lowest responsible bidder.
(2)CA Water Code § 60604(f)(2) Reject any or all bids and readvertise for
proposals.
(3)CA Water Code § 60604(f)(3) Proceed to construct the work under its own superintendence.
(4)CA Water Code § 60604(f)(4) If no bids are received, negotiate a contract for the work.
district personnel work costs maintenance work exception emergency work exception notice of contract sealed bids lowest responsible bidder bidder’s security cashier’s check bidder’s bond return of security reject or accept bids board construction options negotiated contracts public bid opening advertisement of proposals
Section § 60614
If there's an emergency situation involving the repair or replacement of district facilities and bids for contracts won't be announced, the district must follow specific guidelines in Chapter 2.5 of the Public Contract Code.
In case of an emergency relating to the repair or replacement of district facilities, if notice for bids to let contracts will not be given, the district shall comply with Chapter 2.5 (commencing with Section 22050) of the Public Contract Code.
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Section § 60618
If someone offers materials at a cheaper price than the lowest rejected bid, the board can make a contract with that person to get the materials at the new lower price.
Upon receipt of an offer for a less price than that specified in the lowest rejected bid, the board may enter into a contract for the furnishing of the materials with the person who has offered them at the lowest price.
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Section § 60620
If you win a contract with the district, you must provide a bond worth 25% of the contract amount. This bond guarantees that you will complete the work as agreed and to the district's satisfaction. The district will oversee and approve the work to ensure it meets their standards.
Any person to whom a contract is awarded shall enter into a bond, to be approved by the district, payable to the district for its use, for 25 percent of the amount of the contract price, conditioned for the full and faithful performance of the contract. The work shall be done under the direction and to the satisfaction of, and be approved by, the district.
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Section § 60622
This law outlines the process for approving and signing contracts for a district, based on the contract amount. For contracts of $40,000 or more, the board of directors must authorize them, and they should be signed by the president and the secretary. However, the board can decide, through a resolution, to let the district manager and another representative sign contracts up to $100,000. For contracts under $40,000, the district manager and another authorized representative can sign, but the manager cannot repeatedly contract with the same party to reach $40,000 or more within a year without the board's approval.
(a)CA Water Code § 60622(a) Contracts and other documents executed by the district that require or authorize the district to expend forty thousand dollars ($40,000) or more shall be authorized by the board of directors and signed by the president and the secretary except that the board may, by resolution, authorize a specific contract or other document, not to exceed one hundred thousand dollars ($100,000), to be signed by the district manager and one other district representative.
(b)CA Water Code § 60622(b) Contracts and other documents executed by the district that require or authorize the district to expend less than forty thousand dollars ($40,000) may be approved and signed by the district manager and one other district representative authorized by the board of directors, provided, however, that the manager shall not execute multiple contracts or documents on behalf of the district with the same person or entity within a one-year period that cumulatively total forty thousand dollars ($40,000) or more, without the board’s prior approval.
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