CC SR 20181204 04 - Public Contracts Muni Code Amendment01203.0006/519551.1
RANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 12/04/2018
AGENDA REPORT AGENDA HEADING: Regular Business
AGENDA DESCRIPTION:
Consideration and possible action for the introduction and first reading of an ordinance
amending dollar amount thresholds for public works projects
RECOMMENDED COUNCIL ACTION:
(1) Adopt Ordinance No. ___, AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF RANCHO PALOS VERDES AMENDING SECTION 2.42.050 (BID
REQUIREMENTS; PURCHASING PROCEDURES AND CONTRACTING
PROCEDURES) OF CHAPTER 2.42 (PUBLIC PROJECTS) OF TITLE 2
(ADMINISTRATION AND PERSONNEL), REGARDING DOLLAR AMOUNT
THRESHOLDS FOR PUBLIC WORKS PROJECTS
FISCAL IMPACT: None
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: William W. Wynder, City Attorney
REVIEWED BY: Same as above
APPROVED BY: Doug Willmore, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Ordinance No. ___ (page A-1)
BACKGROUND AND DISCUSSION:
The City of Rancho Palos Verdes lets public projects contracts pursuant to the
Uniform Public Construction Cost Accounting Act, codified as Section 22000 et seq.
of the California Public Contracts Code (the “UPCCAA”). The UPCCAA provides an
alternative procedure for the bidding of public projects based on the dollar amount
for the project. The current dollar amounts for public works projects under Section
2.42.050 of the Rancho Palos Verdes Municipal Code (RPVMC) are as follows:
Level 1: up to $45,000
Level 2: up to $175,000
Level 3: above $175,000
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The alternative procedures allow the City to award lower-level projects using
streamlined procedures.
From time to time, the State Legislature updates the threshold amounts in the
UPCCAA for public works projects to reflect increased costs. Effective January 1,
2019, the thresholds for Level 1 and Level 2 projects under the UPCCAA will
increase to $60,000 and $200,000, respectively. The proposed ordinance
(Attachment A) updates the amounts in RPVMC Section 2.42.050 to match the
latest statutory amounts.
ALTERNATIVES:
In addition to the Staff recommendation, the following alternative actions are available
for the City Council’s consideration:
1. Direct Staff to revise the proposed ordinance, and to agendize the revised
ordinance for re-introduction at the next City Council meeting.
2. Direct Staff to take no action this time.
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ORDINANCE NO. ___
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES AMENDING SECTION 2.42.050
(BID REQUIREMENTS; PURCHASING PROCEDURES AND
CONTRACTING PROCEDURES) OF CHAPTER 2.42
(PUBLIC PROJECTS) OF TITLE 2 (ADMINISTRATION AND
PERSONNEL), REGARDING DOLLAR AMOUNT
THRESHOLDS FOR PUBLIC WORKS PROJECTS
WHEREAS, the City of Rancho Palos Verdes lets public projects contracts
pursuant to the Uniform Public Construction Cost Accounting Act, codified as Section
22000 et seq. of the California Public Contracts Code (the “UPCCAA”); and,
WHEREAS, the UPCCAA provides and alternative procedure for the bidding of
public projects based on the dollar amount for the project; and,
WHEREAS, from time to time the UPCCAA updates the threshold contract
amounts in its provisions to reflect increased costs; and,
WHEREAS, effective January 1, 2019, thresholds for Level 1 and Level 2
projects will increase to $60,000 and $200,000 respectively; and,
WHEREAS, the City Council of the City of Rancho Palos Verdes desires to
update Chapter 2.42 of the Rancho Palos Verdes Municipal Code to reflect the updated
amounts in the UPCCAA; and,
WHEREAS, all legal prerequisites to the adoption of the Ordinance have been
met.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES DOES ORDAIN AS FOLLOWS:
Section 1. Section 2.42.050 (Bid requirements; purchasing procedures and
contracting procedures) of Chapter 2.42 (Public Projects) of Title 2 (Administration and
Personnel) of the Rancho Palos Verdes Municipal Code is hereby amended to read as
follows:
“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 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
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01203.0006/512827.1 Ordinance No. ___
Page 2 of 5
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 forty-fivesixty thousand dollars
($60,000) 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-fivetwo
hundred thousand dollar ($200,000) 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 (B)(1) of
this section. Otherwise, the city shall require competitive written bids as
provided in this subsection (B)(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.
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.
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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 section, 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.
5. If all bids received are in excess of one hundred seventy-fivetwo
hundred thousand dollars ($200,000), the city council may, by
adoption of a resolution by a four-fifths vote, award the contract, at one
hundred eighty-seven thousand five hundredtwo hundred twelve
thousand five hundred dollars ($212,500) or less, to the lowest
responsible bidder, if the council determines the cost estimate of the
city was reasonable.
C. Level 3 Projects. Public projects of more than one hundred seventy-
fivetwo hundred thousand dollars ($200,000) 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 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
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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 sources.”
Section 2. Severability. If any section, subsection, paragraph, sentence,
clause or phrase of this ordinance or its application to any person or circumstance, is for
any reason held to be invalid or unenforceable by a court of competent jurisdiction, such
invalidity or unenforceability shall not affect the validity or enforceability of the remaining
sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this
ordinance, or its application to any other person or circumstance. The City Council
declares that it would have adopted each section, subsection, subdivision, paragraph,
sentence, clause, phrase hereof, irrespective of the fact that any one or more sections,
subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be
declared invalid or unenforceable.
Section 3. Certification and Posting. The City Clerk shall cause this Ordinance
to be posted in three (3) public places in the City within fifteen (15) days after its
passage, in accordance with the provisions of Section 36933 of the Government Code.
The City Clerk shall further certify to the adoption and posting of this Ordinance, and
shall cause this Ordinance and its certification, together with proof of posting, to be
entered in the Book of Ordinances of the Council of this City.
Section 4. Effective Date. This Ordinance shall go into effect at 12:01 AM on
the 31st day after its passage.
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PASSED, APPROVED and ADOPTED this day of 2018.
_________________________________
Mayor
ATTEST:
____________________________
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES )ss
CITY OF RANCHO PALOS VERDES )
I, EMILY COLBORN, 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. _____ passed first reading on _____, 2018, was duly and
regularly adopted by the City Council of said City at a regular meeting thereof held on
_____, and that the same was passed and adopted by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
__________________________________
City Clerk
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