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HomeMy Public PortalAboutr 11-115Poolut - wU of foe paxmtg4 of &rfad, �q. 5. No. 11 Date of Adoptio `hrl�' 16 LA M Resolution Opposing the Passage of A -3285 WHEREAS, A -3285 would require that certain public contract bid advertisements include certified cost estimates or estimate ranges of projected contract cost and it would amend the grounds for rejection of all bids; and WHEREAS, advocates for A -3285 argue that the best interests of taxpayers are served by the provisions of A -3285, because it promotes, they claim, openness and broad dissemination of information; and WHEREAS, we agree that taxpayers are best served by openness and board dissemination of information, however, A -3285, would, in fact, limit a competitive process that is foundation of the Local Public Contracts Law and would not best serve the public interest; and WHEREAS, A -3285 would require a municipality to include in the public advertisement its cost estimates or cost estimate ranges for construction projects in excess of $500,000; and WHEREAS, A -3285 also amends the provision to reject all bids; and WHEREAS, one of the amendments would permit a municipality to reject all bids only if the lowest bid substantially exceeds the municipality's cost estimates or cost estimate ranges for the goods or services as published and attested; and WHEREAS, as a result of this amendment, all contracts, including goods and services, over the contracting unit's bid threshold will now require the public advertisement for bids to include cost estimates or cost estimates ranges; and WHEREAS, municipal engineers and other design professionals will typically prepare the projects cost estimates based on the current industry cost and bids received for similar projects in different municipalities; and WHEREAS, these estimates tend to be in the middle of the current industry cost; and WHEREAS, we are concerned that A -3285 will create the "floor" as opposed to a "ceiling" for bid pricing, removing the incentive for competitiveness and prohibit a municipality from receiving the best possible price for the project; and WHEREAS, requiring the advertisement of the cost will lead to unfair pricing and increased cost for already strained taxpayers; and WHEREAS, A -3285 also has the potential to expose municipalities to protracted disputes and litigation; and NO. 11- 11 5_ PAGE 2 NOW, THEREFORE, BE IT RESOLVED, that the governing body of the Borough of Carteret strongly opposes the passage of A -3285 as it will delay construction projects, lead to increased costs, limit the rejection of bids and expose municipalities to protracted disputes and litigation; and BE IT FURTHER RESOLVED, that copies of this Resolution be forwarded to New Jersey Governor Christopher Christie, to Senate President Stephen Sweeney, to Assembly Speaker Sheila Oliver, to our State Senator, to our two Representatives in the General Assembly, and to the New Jersey League of Municipalities. Adopted this 16th day of June, 2011 " certified as a tn-ue ccogy of fle original- on June 17, 2011. KAT MIq ML R41M, ME Mnicipal Clerk RECORD OF COUNCIL VOTE COUNCILMAN YES NO NV A.B. COUNCILMAN YES NO NV A.B. B13LM X KM X DIAZ X MM DI M k9CI0 glM x X - Indicate Vole AB - Absent NV - Not Voting XOR - Indicates Vote to O,e,mIc Veto Adopted at a meeting of the hfunicipal Council 1 6, 2011 sAM ice`