SECTIONS 20500-20507

20500.  The provisions of this article shall apply to contracts by acity council, as provided in the Street Lighting Act of 1919, Part 1(commencing with Section 18000) of Division 14 of the Streets andHighways Code.20501.  (a) The city council shall, within 10 days after theestablishment of the district, invite bids for the making of theimprovement by ordering a notice of the invitation to be published bytwo successive insertions in a daily or weekly newspaper publishedor circulated in the city and designated by the city council for thatpurpose. However, if the city council determines that there is onlyone contractor practically capable of serving the street lightingsystem to be improved in the manner provided in the plans andspecifications contained in the report provided for in Chapter 3(commencing with Section 18040) of Part 1 of Division 14 of theStreets and Highways Code and that the contractor is subject to thejurisdiction of the Public Utilities Commission of the State ofCalifornia, the city council may, in its discretion, withoutcompetitive bidding, order the improvement to be carried out by thecontractor in accordance with rates and rules filed by it from timeto time with the Public Utilities Commission. (b) All bids for construction work shall be presented under sealedcover and shall be accompanied by one of the following forms ofbidder'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, madepayable to the city. The security shall be forfeited to the city in case the bidderdepositing it does not, within 15 days after the notice that thecontract has been awarded to him or her, enter into a contract withthe city for making the improvement, the faithful performance ofwhich shall be secured by an undertaking in those penal sums as thecity council shall require, with sureties satisfactory to that body.In any case where competitive bidding is required, the contract shallbe awarded to the lowest responsible bidder. Upon an award to thelowest bidder, the security of an unsuccessful bidder shall bereturned in a reasonable period of time, but in no event shall thatsecurity be held by the city beyond 60 days from the time the awardis made.20502.  The contract shall require that the improvement be made, andthe improvement shall be made, strictly in accordance with the plansand specifications contained in the report provided for in Chapter 3of Part 1 of Division 14 of the Streets and Highways Code. The contract for service shall be for a period not less than threeyears from and after the date electric energy and service is firstdelivered to the lighting district pursuant to such contract andshall be extended automatically thereafter for successive terms ofone year each; provided, that the agreement may be terminated byeither party upon not less than 60 days' written notice prior to theexpiration date of the original term or any extended term; andprovided further, that the contract for service may be for a periodof less than three years by mutual consent of the city council andthe contractor.20503.  The improvement shall be made under the supervision of theboard, officer or person designated by the city council, and noportion 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, orfails to proceed with it as rapidly as required by his contract, thecity council may relet the contract in the same manner as in thecase of the first letting thereof and retain the amount of the costof the portion relet, and of any expenses incidental to thereletting, out of any funds due or to become due to the contractor.The city council may also hold the contractor and his suretiesresponsible upon his bond for such cost and expense, and for anydamages resulting from such abandonment or failure.20505.  The city council may, at any time within 20 days after theopening of bids, or, if no bids are received, at any time within 20days after the time fixed for the opening of bids, order byresolution adopted by a vote of two-thirds of all of its members,that the city itself execute the work of the improvement, or any partthereof, in accordance with the plans and specifications adopted forsuch work, or for such part thereof, and employ the labor andprovide the materials, appliances, supplies or illuminating agentnecessary therefor. The cost and expenses of such work, or of suchpart thereof, shall be paid out of the special fund collected to payfor the improvement. If the city council orders that only a part ofthe work of the improvement be executed by the city then the citycouncil may reject all bids, if any, received for such part of thework and may proceed with the award of the contract for the remainingpart of the work.20506.  If the work of the improvement, or any part thereof, isexecuted by the city, then the amount appropriated and used from thespecial fund to pay the costs and expenses of the work or partthereof executed by the city shall not exceed the amount of therespective lowest valid bid received for such work or for such partthereof, or, if no bids have been received and the work of theimprovement is executed by the city the amount appropriated and usedfrom the special fund to pay the costs and expenses of such workshall not exceed the amount of the respective estimate thereofprovided for in Section 18041 of the Streets and Highways Code. Ifsuch costs and expenses exceed the amount of the said bid, or of thesaid estimate in case no bids are received, then such excess cost andexpense shall be paid out of any moneys in the general fund in thecity treasury.20507.  At any time after the funds for the proposed improvement, orany part thereof, are in the hands of the city treasurer, the citycouncil may, without calling for bids, order by resolution, adoptedby a vote of two-thirds of all its members, that the city itselfexecute the work of such improvement, or any part thereof, inaccordance with the plans and specifications adopted for such work orfor such part thereof, and employ the labor, and provide thematerials, appliances, supplies or illuminating agent necessarytherefor. In such case the costs and expenses of such work, or ofsuch part thereof, shall be paid out of the aforesaid funds, exceptthat if such costs and expenses exceed the amount of the respectiveestimates provided for in Section 18041 of the Streets and HighwaysCode, then such excess shall be paid out of the moneys in the generalfund in the city treasury.