CC 2014-04-08 Supplemental InformationMEMORANDUM
TO: CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
SUBJECT: SUPPLEMENTAL INFORMATION
DATE:
AGENDA ITEM 9.a. -APRIL 8, 2014 CITY COUNCIL MEETING
Consideration of Proposed City Charter
APRIL 8, 2014
Attached is a letter from the Construction Industry Force Account Council regarding
agenda Item No. 9.a., for your review.
cc: City Manager
City Attorney
City Clerk
Public Review Binder
construction industry force account council
AprilS,2014
Crty Council Members
C/O Tony Ferrara, Mayor
Crty of Arroyo Grande
300 East Branch Street
Arroyo Grande, CA 93420
Re: Draft Charter Section 301: Possible Exemption from the Public Contract Code
Dear Mr. Mayor and Council Members,
The Construction Industry Force Account Council (CIFAC) is a non-profit organization that works with
governmental agencies to assist them in following the California Public Contract Code and is available as
a resource. We are supported by and represent members of the construction industry.
I have attended prior charter committee meetings and sent letters to the City Council about the
importance of the califomia Public Contract Code and why the city should continue to follow these
requirements. I have reviewed the draft charter and it is my understanding that the City may wish to
exempt itself from the Public Contract Code requirements and self-perform construction work with city
forces when found to be in the best interest of the Crty.
I'm very concerned about the ambiguity this wording allows and the possible lack of checks and
balances in this system. The only way to know if the public is getting the best price for a project is to
follow a competitive process.
The Public Contract Code outlines the procedures that a public agency must follow when contracting out
construction work. It is an established, integral system designed to provide safeguards for all parties
involved: the agency, public and contractors.
The intent of the Public Contact Code isfound·in section 100. This includes clarification of bid
requirements, protecting the public from misuse of public funds, ensuring a transparent, uniform and
objective bid process that will stimulate competition to ensure that the public is getting the best value
for every public dollar spent, and eliminating favoritism, fraud or corruption.
Included in the Code are advertising requirements, bond requirements, non-collusion declarations,
public bid openings, and subcontracting protections.
CaduyD Rillimd, Executiw: Di=ror
837 Arnold Drive. Suiie 200, Mnrtinez. CA 94553 • p/llJfll! 800-755-3354 •fax 925-957-1800 • anai1 info@cifac.mg • .,.eb www.cifac.mg
The Oty currently participates in the California Uniform Construction Cost Accounting Act (the Act). As a
participant of the Act, the city is granted a higher bid threshold of $45,000, rather than the $5,000
required in the Public Contract Code for general law cities. In addition, they are allowed to informally bid.
projects that do not exceed $175,000. Projects that exceed $175,000 must follow a formal bid
procedure. The City-can reject bids by a 4/5ths vote of the City Council and have city forces perform
construction work if found to be less expensive than the lowest bid. The City is already receiving
increased benefits for the performance of construction work. Maintenance work does not have to be bid
and this will free up city employees to perform the maintenance while licensed, bonded and
experienced contractors can perform the construction where their expertise lies.
We strongly encourage the Council to require that the Public Contract Code requirements remain intact.
Please do not negate a system that was put in place to protect each and every one of you. It i~ our
opinion that adopting a Charter will not benefit the City in regards to public works projects.
I would like to ask that this letter be included in the record of the City Council on April 8, 2014.
Thank you for your consideration. We look forward to further discussions with you regarding this
matter. You may also contact me if you have any questions at (209) 532-2942.
g;p
Michelle Tucker, CIFAC Central Region Representative
mtucker@cifac.org
19815 Rough and Ready Trail
Sonora, CA 95370