RPVCCA_CC_SR_2012_11_20_G_Ord_539_Increased_Uniform_Public_Construction_Costs_Accounting_ActCrrvOF
MEMORANDUM
RANCHO PALOS VERDES
TO:
FROM:
DATE:
SUBJECT:
REVIEWED:
HONORABLE MAYOR &CITY COUNCIL MEMBERS
CAROL W.LYNCH,CITY ATTORNEY
NOVEMBER 20,2012
ADOPTION OF ORDINANCE NO.539 -INCREASED
UNIFORM PUBLIC CONSTRUCTION COST
ACCOUNTING ACT (UPCCAA)LIMIT FOR LEVEL 1
PROJECTS AND ADDING AN EXCEPTION FOR LEVEL 2
PROJECTS
CAROLYN LEHR,CITY MANAGER 09-
RECOMMENDATION
Adopt Ordinance No.539,an Ordinance of the City of Rancho Palos Verdes,Amending
Section 2.42.050 of the Rancho Palos Verdes Municipal Code to Increase the Limit for
Level 1 Projects and Add a New Exception to Level 2 Projects.
BACKGROUND
In 2007,the City Council amended the Rancho Palos Verdes Municipal Code to adopt the
provisions of the UPCCAA as the City's standard procedures for awarding public works
contracts.Proposed Ordinance No.539 amends the Municipal Code to make it consistent
with the Legislature's recent changes to the UPCCAA.
DISCUSSION
At the City Council meeting on November 7,2012,the City Council introduced the
proposed ordinance to amend Section 2.42.050 of the Rancho Palos Verdes Municipal
Code to increase the limit for Level 1 Projects and add a new exception to Level 2
Projects.The proposed ordinance is now on the agenda for a second reading and
adoption.It will.be effective thirty (30)days from its passage.
Attachment:Ordinance No.539
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ORDINANCE NO.539
AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES
AMENDING SECTION 2.42.050 OF THE RANCHO PALOS VERDES
MUNICIPAL CODE TO INCREASE THE LIMIT FOR LEVEL 1
PROJECTS AND ADD A NEW EXCEPTION TO LEVEL 2 PROJECTS.
WHEREAS,the California Legislature amended Public Contract Code Section
22032(a)to increase the force account limit from thirty thousand dollars ($30,000)to
forty-five thousand dollars ($45,000);and
WHEREAS,the City Council now seeks to amend Section 2.42.050(A)of the
Rancho Palos Verdes Municipal Code ("Municipal Code")so that the force account limit
increase is in effect in the City;and.
WHEREAS,Municipal Code Section 2.42.050 previously included Subsection
(8)(5),which stated that if all bids received are in excessof""one hundred twenty-five
thousand dollars ($125,000),the City Council may,by adoption of a resolution by a four-
fifths vote,award the contract,at one hundred thirty-seven thousand five hundred
dollars ($137,500)or less,to the lowest responsible bidder,if it determines the cost
estimate of the public agency was reasonable;and
WHEREAS,last year,the California State Controller increased the informal bid
limit to one hundred and seventy-five thousand dollars ($175,000)but did not raise the
informal bid limit exception beyond one hundred thirty-seven thousand five hundred
dollars ($137,500),thus rendering the exception useless,so the City Council removed
the exception within Municipal Code Section 2.42.050(8)(5);and
WHEREAS,this year,the California Legislature amended Public Contract Code
Section 22034(f)to increase the informal bid limit exception from one hundred thirty-
seven thousand five hundred dollars ($137,500)to one hundred eighty-seven thousand
five hundred dollars ($187,500),thus rendering the exception useful once more;
NOW,THEREFORE,THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES DOES ORDAIN AS FOLLOWS:
Section 1:Subsection (A)of Section 2.42.050 of Chapter 2.42 of Title 2 of the
Municipal Code is hereby amended to read as follows:
"Level 1 Projects.Public projects of forty-five thousand dollars ($45,000)or less
may be performed by City employees by force account or may be awarded by
negotiated contract or by purchase order by the Director of Public Works
("Director")without competitive bidding."
Section 2:Subsection (8)(5)is hereby added to Section 2.42.050 of Chapter
2.42 of Title 2 of its Municipal Code to read as follows:
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"If all bids received are in excess of one hundred seventy-five thousand dollars
($175,000),the City Council may,by adoption of a resolution by a four-fifths vote,
award the contract,at one hundred eighty-seven thousand five hundred dollars
($187,500)or less,to the lowest responsible bidder,if the Council determines the
cost estimate of the City was reasonable."
Section 3:The City Clerk shall certify to the adoption of this ordinance and
shall cause the same to be posted in the manner prescribed by law.
PASSED,APPROVED and ADOPTED this 20th day of November,2012.
ATTEST:
City Clerk
State of California )
County of Los Angeles )ss
City of Rancho Palos Verdes )
Mayor
p'
I,Carla Morreale,City Clerk of the City of Rancho Palos Verdes,do
hereby certify that the whole number of members of the City Council of said City is five;
that the foregoing Ordinance No.539 passed first reading on November 7,2012,was
duly and regularly adopted by the City Council of said City at a regular meeting thereof
held on November 20,2012,and that the same was passed and adopted by the
following roll call vote:
Ayes:
Noes:
Absent:
Abstain:
City Clerk
R6876-0001\1360452v2.doc Ordinance No.539
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