RPVCCA_SR_2011_06_21_L_Ord_522_UPCCAA_Informal_Bid_LimitCITY OF
MEMORANDUM
RANCHO PALOS VERDES
TO:
FROM:
DATE:
SUBJECT:
REVIEWED:
HONORABLE MAYOR &CITY COUNCIL MEMBERS
CAROL W.LYNCH,CITY ATTORNEY
JUNE 21,2011
ADOPTION OF ORDINANCE NO.522 -INCREASED
UPCCAA INFORMAL BID LIMIT
CAROLYN LEHR,CITY MANAGER ~,
RECOMMENDATION
Adopt Ordinance No.522,an Ordinance of the City of Rancho Palos Verdes,Amending
Section 2.42.050 of the Rancho Palos Verdes Municipal Code to Increase the Informal Bid
Limit as Permitted by the State and Remove the Informal Bid Limit Exception.
BACKGROUND
In 2007,the City Council adopted Ordinance No.456,which is codified in Chapter 2.42 of
the Municipal Code to provide for bidding procedures for public projects under the uniform
public construction cost accountir:tg act.The proposed ordinance will amend the
provisions of Chapter 2.42 to increase the informal bid limit as permitted by the State and
remove the informal bid limit exception.
DISCUSSION
At the City Council meeting on June 7,2011,the City Council introduced the proposed
ordinance to amend Section 2.42.050 of the Rancho Palos Verdes Municipal Code to
increase the informal bid limit as permitted by the State and remove the informal bid limit
exception.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.522
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ORDINANCE NO.522
AN ORDINANCE OF THE CITY OF RANCHO PALOS
VERDES AMENDING SECTION 2.42.050 OF THE
RANCHO PALOS VERDES MUNICIPAL CODE TO
INCREASE THE INFORMAL BID LIMIT AS PERMITTED
BY THE STATE AND REMOVE THE INFORMAL BID LIMIT
EXCEPTION.
WHEREAS,the informal bid limit proscribed in subsection (b)of section 22032 of
the Public Contract Code has been one hundred and twenty-five thousand dollars
($125,000);and,
WHEREAS,the California State Controller recently notified all public agencies
that the informal bid limit will be 'increased to one hundred and seventy-five thousand
dollars ($175,000)effective for the fiscal year beginning July 1,2011;and,
WHEREAS,the City Council now seeks to amend Section 2.42.050 of Chapter
2.42 of Title 2 of its Municipal Code in order for the informal bid limit increase to be
effective in the City;and,
WHEREAS,the informal bid limit exception in Public Contract Code section
22034(f),as reiterated in Rancho Palos Verdes Municipal Code section 2.42.050(B)(5),
states that if all bids received are in excess of one hundred twenty-five thousand dollars
($125,000),the governing body of the public agency 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 agencywas reasonable;and,
WHEREAS,the informal bid limit exception amount has not been raised and
therefore is no longer of use;an~,
WHEREAS,the City Council now seeks to remove the informal bid limit exception within
subsection (B)(5)of Section 2.42.050 of Chapter 2.42 of Title 2 of the Rancho Palos
Verdes Municipal Code.
NOW,THEREFORE,THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES DOES HEREBY FIND,DETERMINE,AND ORDER AS FOLLOWS:
Section 1:Section 2.42.050 of Chapter 2.42 of Title 2 of its Municipal Code is
hereby amended to read as follows (with the proposed changes in bold and underline):
"2.42.050 -Bid requirements,purchasing procedures and contracting procedures.
This section shall govern the procedures for bidding and awarding all purchase
orders and contracts to perform public projects,including any associated purchase of
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goods and supplies for such projects.Bidding requirements and other purchasing and
contracting procedures are categorized into three different levels set forth below.Each
level shall govern purchases and contracts of different values.Level 1 shall govern the
least expensive purchase orders and contracts and Level 3 shall govern the most
expensive purchase orders and contracts.Notwithstanding any provision of this
chapter,the bidding and other procedures for awarding public project contracts shall not
violate the limitations of the Uniform Public Construction Cost Accounting Act,as they
may be amended from time to time by the State Controller or the State
Legislature.
A.Level 1 Projects.Public projects of thirty thousand dollars ($30,000)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.
B.Level 2 Projects.Public projects of one hundred and seventy-five
thousand dollars ($175,000)or less may be let to contract by the
informal bid procedures set forth in this subsection.Contracts that are
authorized to be awarded pursuant to level two procedures may be
awarded by the Director.All level two contracts shall require competitive
oral or written bidding,as described below in this subsection.The Director
shall determine whether a competitive oral or written bidding procedure for
a public project is in the best interest of the City.If the Director
determines that a competitive oral bidding procedure is in the best interest
of the City,the City may solicit oral bids as provided pursuant to
subsection 1 of this section.Otherwise,the City shall require competitive
written bids as provided in this subsection 2 of this section.
1.Oral Bids.
a.Bids shall be orally solicited from a minimum of three
sources and may be received orally.The person who
solicits the bids shall prepare a memorandum to the file
documenting the identity of the bidders and the amount of
the bids that were obtained.
b.The Director shall award the contract to the lowest
responsible bidder only if Director determines that such
action is in the best interest of the City.The Director may
reject all bids,or waive any irregularities or informalities in
any bid or bidding.
c.The Director may waive the requirement to orally solicit bids
if performance of the public project is available from only one
source and may solicit only two bids if performance of the
public project is available from only two sources.
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2.Written Bids.
a.Bid specifications shall be prepared and written notices
soliciting written bids shall be disseminated to a list of at
least three prospective bidders.Such notices shall include
the closing date of the bid.
b.Bids shall be submitted in writing and must be received prior
to the bid closing date to be considered.
c.The Director shall award the contract to the lowest
responsible bidder only if the Director determines that such
action is in the best interest of the City.The Director may
reject all bids,or waive any irregularities or informalities in
any bid or bidding.
d.The Director may waive the requirement to solicit bids if
performance of the public project is available from only one·
source and may solicit only two bids if performance of the
public project is available from only two sources.
3.Contractors List.The City shall develop and maintain a list of
contractors,identified according to categories of work,in
accordance with the provisions of Section 22034 of the California
Public Contract Code,or any successor statute thereto,and the
criteria promulgated from time to time by the California Uniform
Construction Cost Accounting Commission.
4.Notice Inviting Informal Bids.At least ten calendar days prior to the
date informal bids are due,the City shall mail a notice inviting
informal bids to all contractors from the applicable category of work
to be bid,as shown on the contractors list developed in accordance
with subsection (B)(3)of this subsection,and to all construction
trade journals as specified by the California Uniform Construction
Cost Accounting Commission in accordance with Section 22036 of
the California Public Contract Code,or any successor statute
thereto.Said notice shall describe the project in general terms,
shall clearly indicate how to obtain more detailed information about
the project,and shall set forth the time and place for the submission
of bids.
C.Level 3 Projects.Public projects of more than one hundred seven tv-
five thousand dollars ($175.000)shall,except as otherwise provided by
law,be let to contract by the formal bidding procedures set forth in this
subsection.Public projects which must be let pursuant to level three
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procedures shall be approved by the City Council and shall require
competitive written bidding,as described below in this subsection.
1.Bid Specifications.For all public projects that must be let pursuant
to level three procedures,bid specifications shall be prepared,and
notices inviting sealed bids shall be disseminated to at least three
prospective bidders approved by the City Manager.In addition,bid
plans and working details shall be formally adopted by the City
Council for all public projects in accordance with the requirements
of Section 22039 of the Public Contract Code or any successor
statute.
2.Notice Inviting Formal Bids.The City shall publish and mail a
notice inviting sealed formal bids in accordance with the provisions
of California Public Contract Code Section 22037,or any successor
statute thereto.
3.Receipt of Bids.Bids shall be sealed,and shall not be opened until
the time and place designated in the bid specifications.Bids must
be received prior to the bid opening to be considered.
4.The City Council shall award the bid to the lowest responsible
bidder,or reject all bids pursuant to Public Contract Code Section
22038,or its successor statute.The City Council may waive any
irregularities or informalities in any bid or bidding.
5.The City Council may waive the procedures required by this
subsection if the City Council determines that performance of the
public project is available only from a single source and may send a
notice inviting bids to only two prospective bidders if the council
determines that performance of the public project is available from
only two sdurces."
Section 2: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 21 st day of June,2011.
Mayor
ATTEST:
City Clerk
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State of California )
County of Los Angeles )ss
City of Rancho Palos Verdes )
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.522 passed first reading on June 7,2011,was duly and
regularly adopted by the City Council of said City at a regular meeting thereof held on
June 21,2011,and that the same was passed and adopted by the following roll call
vote:
Ayes:
Noes:
Absent:
Abstain:
City Clerk
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