CC 2014-08-12_11.c. Ordinance Amending Bidding ThresholdsMEMORANDUM
TO: CITY COUNCIL
FROM: TERESA MCCLISH, COMMUNITY DEVELOPMENT DIRECTOR
SUBJECT: CONSIDERATION OF AN ORDINANCE AMENDING SECTION 3.08.020.E
OF THE ARROYO GRANDE MUNICIPAL CODE REGARDING BIDDING
THRESHOLDS UNDER THE UNIFORM PUBLIC CONSTRUCTION COST
ACCOUNTING ACT
DATE: AUGUST 12, 2014
RECOMMENDATION:
It is recommended the City Council introduce an ordinance amending Section
3.08.020.E of the Arroyo Grande Municipal Code regarding bidding thresholds under
the Uniform Public Construction Cost Accounting Act.
IMPACT TO FINANCIAL AND PERSONNEL RESOURCES:
There is minimal financial impact related to adoption of the proposed ordinance. The
Legislative and Information Services Department budget includes funds for publication
of the ordinance pursuant to State law. Adoption of the proposed ordinance would
increase the monetary thresholds at which the City must utilize· informal and formal
bidding, which will reduce the expenses associated with bidding public projects.
BACKGROUND:
The Uniform Public Construction Cost Accounting Act (the "Act"), codified as Public
Contract Code Sections 22000 et seq. provides uniform cost accounting standards and
bidding procedures for construction work performed or contracted by public agencies in
the State. The Act allows participating public agencies to avoid formal competitive
bidding for projects valued up to $175,000 if the agency adopts certain accounting
procedures. The City previously elected to become subject to the uniform construction
cost accounting procedures set forth in the Act.
In conformity with the Act, the City adopted an ordinance governing the award of
contracts for public projects, codified as 3.08.020.E of the Arroyo Grande Municipal
Code. Under the Act, public projects of $45,000 or less may be performed by the City's
employees by force account, by negotiated contract, or by purchase order. Public
projects of $175,000 or less may be let to contract by informal bidding procedures and
public projects in excess of $175,000 must be let to contract by formal bidding
procedures.
Item 11.c. - Page 1
CITY COUNCIL
ORDINANCE REGARDING EXPENDITURES INVOLVING PUBLIC PROJECTS
AUGUST 12, 2014
PAGE2
ANALYSIS OF ISSUES:
When the City originally adopted its ordinance governing the award of contracts for
public projects, the monetary thresholds triggering informal and formal bidding
requirements under the Act were significantly lower. The City incorporated those lower
limits into Section 3.08.020.E of the Municipal Code. In order to take advantage of the
higher monetary thresholds, staff is bringing forward the proposed ordinance with the
higher monetary thresholds included. In addition, language has been included in the
ordinance that will automatically adjust the monetary limits contained in the City's
ordinance whenever the California Uniform Construction Cost Accounting Commission
promulgates different limits.
ALTERNATIVES:
The following alternatives are provided for the Council's consideration:
1. Introduce the proposed ordinance;
2. Do not introduce the proposed ordinance; or
3. Provide direction to staff.
ADVANTAGES:
Adopting the proposed ordinance will allow the City to take advantage of the higher
monetary thresholds triggering use of force account labor, informal and formal bidding
on public projects. In addition, the language will allow for automatic adjustments of
thresholds in the future.
DISADVANTAGES:
There are no identified disadvantages.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted in front of City Hall on Thursday, August 7, 2014 and placed on
the City's website on Friday August 8, 2014.
Item 11.c. - Page 2
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE AMENDING SECTION 3.08.020.E
OF THE ARROYO GRANDE MUNICIPAL CODE
REGARDING BIDDING THRESHOLDS UNDER THE
UNIFORM PUBLIC CONSTRUCTION COST
ACCOUNTING ACT
WHEREAS, the Uniform Public Construction Cost Accounting Act (the "Act"), codified
as Public Contract Code Sections 22000 et seq. provides uniform cost accounting
standards and bidding procedures for construction work performed or contracted by
public agencies in the State; and
WHEREAS, the City of Arroyo Grande ("City") previously elected to become subject to
the uniform construction cost accounting procedures set forth in the Act; and
WHEREAS, in conformity with the Act, the City adopted an ordinance governing the
award of contracts for public projects; and
WHEREAS, subsequent to the City's adoption of its ordinance governing the award of
contracts for public projects in accordance with the Act, the California Uniform
Construction Cost Accounting Commission increased the monetary thresholds·
triggering the informal and formal bidding requirements; and
WHEREAS, the City desires to amend its ordinance governing the award of contracts
for public projects to reflect the existing monetary thresholds and to provide a
mechanism for automatic increases in those thresholds as they may be increased from
time to time by the California Uniform Construction Cost Accounting Commission.
NOW, THEREFORE BE IT ORDAINED by the City Council of the City of Arroyo Grande
as follows:
SECTION 1. The above recitals are true and correct and are incorporated herein by
this reference.
SECTION 2. Arroyo Grande Municipal Code, Section 3.08.020.E is hereby amended in
its entirety to read as follows:
E. Expenditures Involving Public Projects. Notwithstanding the provisions of Article 4
(commencing with Section 20160) of Chapter 1, part 3 of the California Public Contract
Code, the requirements for the award of contracts for public projects of the city may be
governed by the alternative procedures contained in Article 3 (commencing with Section
22030) of the Uniform Public Construction Cost Accounting Act (hereinafter "Act").
1. Public Projects of Forty-Five Thousand Dollars ($45,000.00) or Less.
Public projects, as defined by the Act, of forty-five thousand dollars ($45,000.00) or less,
Item 11.c. - Page 3
ORDINANCE NO.
PAGE2
or other such limits as may be promulgated from time to time by the California Uniform
Construction Cost Accounting Commission, appropriations for which have been
approved by the city council, may be performed by the employees of the city by force
account, or by negotiated contract or purchase order approved by the city manager.
2. Public Projects of One Hundred Seventy-Five Thousand Dollars
($175,000.00) or Less (Informal Bidding Procedures). Public projects, as defined by the
Act, of one hundred seventy-five thousand dollars ($175,000.00) or less, or other such
limits as may be promulgated from time to time by the California Uniform Construction
Cost Accounting Commission, may be let to contract by informal procedures as set forth
in Sections 22030, et seq., of the Public Contract Code.
a. A list of qualified contractors, identified according to categories of
work shall be developed and maintained by the director of public works in
accordance with the provisions of Section 22034 of the Act.
b. A notice inviting informal bids shall be mailed to all contractors on
the list for the category of work to be bid or all construction trade journals
specified in Section 22036, or both all contractors on the list for the
category of work being bid and all construction trade journals specified in
Section 22036. Additional contractors and/or construction trade journals
may be notified at the discretion of the city; provided however: (i) if there is
no list of qualified contractors maintained by the city for the particular
category of work to be performed, the notice inviting bids shall be sent
only to the construction trade journals specified by the commission, or (ii)
if the product or service is proprietary in nature such that it can be
obtained only from a certain contractor or contractors, the notice inviting
informal bids may be sent exclusively to such contractor or contractors. All
mailing of notices to contractors and construction trade journals shall be
completed not less than ten (10) calendar days before bids are due.
c. The notice inviting informal bids shall describe the project in
general terms, how to obtain more detailed information about the project,
and state the time and place for the submission of bids.
d. The city manager is authorized to award informal contracts
pursuant to this section.
e. If all bids received are in excess of one hundred seventy-five
thousand dollars ($175,000.00), or other such limits as may be
promulgated from time to time by the California Uniform Construction Cost
Accounting Commission, the City Council may by passage of a resolution
by a four-fifths vote, award the contract, at one hundred eighty-seven
thousand five hundred dollars ($187,500.00), or less, or other such limits
as may be promulgated from time to time by the California Uniform
Construction Cost Accounting Commission, to the lowest responsible
bidder, if it determines the cost estimate of the city was reasonable.
Item 11.c. - Page 4
ORDINANCE NO.
PAGE3
3. Public Projects of More Than One Hundred Seventy-Five Thousand
Dollars ($175,000.00) (Formal Bidding Procedures). For all public projects of more than
one hundred seventy-five thousand dollars ($175,000.00), or other such limits as may
be promulgated from time to time by the California Uniform Construction Cost
Accounting Commission, a contract shall be awarded pursuant to a formal bidding
procedure as set forth in the Act, and subject to the exemptions provided for therein.
4. Emergency Contracts. In cases of emergency when repair or
replacements are necessary, the City Council may proceed at once to replace or repair
any public facility in accordance with Public Contract Code Section 22035.
SECTION 3. Severability. If any section, subsection, subdivision, paragraph, sentence,
or clause of this Ordinance or any part thereof is for any reason held to be unlawful, such
decision shall not affect the validity of the remaining portion of this Ordinance or any part
thereof. The Gity Council hereby declares that it would have passed each section,
subsection, subdivision, paragraph, sentence, or clause thereof, irrespective of the fact
that any one or more section, subsection, subdivision, paragraph, sentence, or clause be
declared unconstitutional, ineffective, or in any manner in conflict with the laws of the
United States or State of California.
SECTION 4. Ordinance Summary. A summary of this Ordinance shall be published in
a newspaper and circulated in the City of Arroyo Grande at least five (5) days prior to
the City Council meeting at which the proposed Ordinance is to be adopted. A certified
copy of the full text of the proposed Ordinance shall be posted in the office of the City
Clerk. Within fifteen (15) days after adoption of the Ordinance, the summary with the
names of those City Council Members voting for and against the Ordinance shall be
published again, and the City Clerk shall post a certified copy of the full text of such
adopted Ordinance.
SECTION 5. Effective Date. This Ordinance shall take effect thirty (30) days after its
adoption.
Item 11.c. - Page 5
ORDINANCE NO.
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On motion of Council Member
following roll call vote to wit:
AYES:
NOES:
ABSENT:
, seconded by Council Member
The foregoing Ordinance was adopted this_ day of ______ , 2014.
, and on the
Item 11.c. - Page 6
ORDINANCE NO.
PAGES
TONY FERRARA, MAYOR
ATTEST:
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
STEVEN ADAMS, CITY MANAGER
APPROVED AS TO FORM:
TIMOTHY J. CARMEL, CITY ATTORNEY
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