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Home My Public Portal About13) 8A 2nd Reading & Adoption of Ord. No. 13-977 Uniform Public Construction Cost Accounting ActPARKS AND RECREATION DEPARTMENT MEMORANDUM DATE: August 6, 2013 TO: The Honorable City Council FROM: Jose E. Pulido, City Manager ~ Via: Eric S. Vail, City Attorney By: Cathy Burroughs, Director of Parks and Recreation W AGENDA ITEM 8.A. SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 13- 977 ADDING CHAPTER 11 TO TITLE 2 OF THE TEMPLE CITY MUNICIPAL CODE IDENTIFYING THE BIDDING PROCESS FOR PUBLIC WORKS PROJECTS 1"0 COMPLY WITH THE UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING ACT RECOMMENDATION: The City Council is requested to waive further reading and adopt Ordinance No . 13-977 (Attachment "A"), adding Chapter "11 to Title 2 of the Temple City Municipal Code identifying the bidding process for public works projects to comply with the Uniform Public Construction Cost Accounting Act. BACKGROUND: 1. In the early 1980s, the California Public Contract Code was adopted by the California Legislature. Several amendments to the California Public Contract Code were passed over the ne){t few years including Assembly Bill 1966 which added Chapter 2 to Part 3 of Division 2 of the Public Contract Code (Uniform Public Construction Cost Accounting Act). 2. On October 11, 2012, staff contacted the City Attorney's office regarding bidding requirements for a small Capital Improvement Project, the installation of addition al concrete adjacent to the Performing Arts Pavilion in Temple City Park. The City Attorney determined that the project must follow formal bidding procedures since the estimated cost of $9,000 was ove r the $5,000 limit. 3. On December 19, 2012, at the reque,st of the City Manager, the . City City Council August 6, 2013 Page 2 of 3 Attorney's office provided a draft staff report, ordinance, resolution and other associated documents that would allow the City to take advantage of increased bidding thresholds provided for by the Uniform Public Construction Cost Accounting Act. 4. On July 1, 2013, a Public Hearing Notice was published in the Temple City Tribune regarding proposed Ordinance f\lo. 13-977. 5. On July 16, 2013, the City Council adopted Resolution No. 13-4931 electing to become subject to the Uniform Public: Construction Cost Accounting Act and introduced Ordinance No. 13-977 for first reading adding Chapter 11 to Title 2 of the Temple City Municipal Code identifying the bidding process for public works projects to comply with the Uniform Public Construction Cost Accounting Act. ANALYSIS: Pursuant to Section 607.E of the City Charter, the City is required to follow the Public Contract Code as part of the general law of the State when contracting for public works projects. California Public Contract Code requires local agencies to competitively bid public projects in excess of $5,000. The very specific bidding procedures are intended to ensure that anencies obtain good values while ensuring equality among contractors. In an effort to streamline the process and allow for alternative methods for bidding public projects, the City Attorney recommended the City elect to be subject to the Uniform Public Construction Cost Accounting Act (Act). The Act provides a set of procedures which are more closely tailored to smaller projects and still allows for equality among contractors throughout the bidding process. In particular the Act allows for the following: 1) For public works projects valued up to $45,000, the City can use its own employees or serve as its own general contractor; 2) For public works projects valued up to $175,000, the City can use informal bidding procedures which 1·equire the City to maintain a list of contractors by category of work and send notices to contractors on the list, listed trade journals, or both; and 3) For public works projects valued above $175,000, the City must use the very specific formal bidding procedures which require publication in a newspaper of general circulation and trade journals. City Council August 6, 2013 Page 3 of 3 To take advantage of these more flexible bidding thresholds the City must comply with the uniform cost accounting procedures established by the State. Although the new procedures may require additional work by the City's Administrative Services Department, it is the conclusion of staff that the savings realized over the long term will outweigh any short-term burdens. In order to implement these alternative biddinn procedures, the City must: 1) Adopt a resolution explaining the City Council's decision to become subject to the Act; 2) Adopt an ordinance establishing an informal bidding procedure; and 3) Inform the State Controller of the City Council's decision. The City Council adopted Resolution No. 13-4931 electing to become subject to the Act on July 16, 2013 and introduced Ordinance No. 13-977 for first reading. Ordinance No. 13-977 identifies the process for bidding construction projects under the Act, the adoption of which is required by the Act. CONCLUSION: To provide the City with additional flexibility for public works contracting, the City Council is requested to waive further readin9 and adopt Ordinance No. 13-977 adding Chapter 11 to Title 2 of the Temple City Municipal Code identifying the bidding process for public works projects to comply with the Uniform Public Construction Cost Accounting Act. FISCAL IMPACT: This item does not have an impact on the Fiscal Year (FY) 2013-14 City Budget. ATTACHMENT: A. Ordinance No. 13-977 ATTACHMENT A ORDINANCE N0.13-977 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMPLE CITY ADDING CHAPTER 11 TO TITLE 2 OF THE TEMPLE CITY MUNICIPAL CODE TO COMPLY WITH THE UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING ACT WHEREAS, the City Council adopted Resolution No. 13-4931 causing the City of Temple City ("City") to become subject to the Uniform Public Construction Cost Accounting Act procedures set forth in Article 2 of Chapter 2 of Part 3 of Division 2 of the California Public Contract Code, commencing with Section 2201 0; and, WHEREAS, the City Clerk will provide a copy of Resolution No. 13-4931 to the State Controller as required by Public Contract Code section 22030; and, WHEREAS, Public Contract Code section 22034 requires any local agency that elects to become subject to the Uniform Public Construction Cost Accounting Act to adopt an ordinance that complies with the requirements of Section 22034. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TEMPLE CITY HEREBY ORDAINS AS FOLLOWS: SECTION 1. ADDITION OF CHAPTER 11 TO TITLE 2 OF THE TEMPLE CITY MUNICIPAL CODE. A new Chapter 11, "Award of Public Projects," is hereby added to Title 2 of the Temple City Municipal Code, and shall read as shown in Exhibit "A" hereto. SECTION 2. CEQA FINDINGS. This Ordinance is exempt from the California Environmental Quality Act ("CEQA") pursuant to 14 Cal. Code Regs. 15378(b)(4) and (5) as a creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and as an agency organizational or administrative activity that produces no physical changes in the environment. SECTION 3. SEVERABILITY. The City Council hereby declares that, should any provision, section, subsection, paragraph, sentence, clause, phrase, or word of this Ordinance, or any part thereof, be rendered or declared invalid or unconstitutional by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, such decision or action shall not affect the validity of the remaining section or portions of the Ordinance or part thereof. The City Council hereby declares that it would have independently adopted the remaining provisions, sections, subsections, paragraphs, sentences, clauses, phrases, or words of this Ordinance irrespective of the fact that any one or more provisions, sections, subsections, paragraphs, sentences, clauses, phrases, or words may be declared invalid or unconstitutional. EXHIBIT "A" CHAPTER 11 OF TITLE 2-AWARD OF PUBLIC PROJECTS 2952-PURPOSE The purpose of this Chapter is to establish procedures that apply to public contracts in a manner that is consistent with the Uniform Public Construction Cost Accounting Act, commencing with Public Contract Code § 22000. 2953-DEFINITIONS A "Commission" means the California Uniform Construction Cost Accounting Commission established under Public Contract Code§ 22010. B. § 22002. "Public project" shall have the meaning as set forth in Public Contract Code 2954-PUBLIC PROJECTS A Except as provided by Subsection D of this Section, the City Manager may cause public projects for forty-five thousand dollars ($45,000) or less to be performed by employees of the City by force account, by negotiated contract, or by purchase order. B. Except as provided by Subsection D of this Section, public projects of one hundred seventy-five thousand dollars ($175,000) or less, may be let to contract by the informal bidding procedures described in Section 2956. C. Except as provided in Subsection D of this Section and Subsection B of Section 2956, public projects of more than one hundred seventy-five thousand dollars ($175,000) shall be let to contract by the formal bidding procedures described in Section 2957. D. The dollar limits set forth in Subsections A and B of this Section shall adjust without City Council action as necessary to comply with any adjustment mandated by the State Controller pursuant to the authority granted by Public Contract Code§ 22020. 2955 -CONTRACTOR LIST A list of contractors shall be developed and maintained in accordance with Public Contract Code§ 22034 and any criteria promulgated from time to time by the Commission. This list will be maintained by the City Manager. 2956-INFORMAL BIDDING PROCEDURE The following procedures apply to informal bids for public projects: RIV #4830-6978-6897 vi A. Notice. The notice inviting informal bids shall state the time and place for the submission of bids and describe the project in general terms with an explanation of how to obtain more detailed project information. It shall be mailed to all construction trade journals specified by the Commission in accordance with Public Contract Code § 22036. Notification may also be provided to the contractors on the list created pursuant to Section 2955 for the category of work being bid, and to any additional contractors or construction trade journals. However, if there is no list of qualified contractors maintained by the County for the particular category of work to be performed, the notice inviting bids shall be sent only to the construction trade journals specified by the Commission. Further, if the product or service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice inviting informal bids may be sent exclusively to such contractor or contractors. Where the mailing of notices to contractors and construction trade journals is required, the notice shall be mailed not less than ten (1 0) calendar days before bids are due. B. Opening Bids and Awarding of Public Project. At the time provided in this notice, all bids timely received shall be opened. Unless all bids are rejected, the contract shall be awarded to the lowest responsible bidder. If the lowest bid received is forty-five thousand dollars ($45,000) or less, the City Manager is authorized to award a contract. Contracts valued at more than forty-five thousand dollars ($45,000) can only be awarded by the City Council. If all bids received pursuant to the informal bidding procedure are greater than one hundred seventy-five thousand dollars ($175,000), the City Council may adopt a resolution by a four-fifths vote to award the contract at one hundred eighty-seven thousand five hundred dollars ($187,500) or less to the lowest responsible bidder if it determines that the City's cost estimate was reasonable. Otherwise, the project shall be rebid under the formal bidding procedure described in Section 2957. 2957 -FORMAL BIDDING PROCEDURE The following procedures apply to formal bids for public projects: A. Notice. The notice inviting formal bids shall state the time and place for receiving and opening sealed bids and distinctly describe the projects. It shall be published in a newspaper of general circulation in the City at least fourteen (14) calendar days before the biding opening date. It shall also be sent electronically, if available, by either facsimile or electronic mail and mailed to all construction trade journals specified in accordance with Public Contract Code§ 22036. B. Opening Bids and Award of Public Project. At the time provided in the notice inviting formal bids, all bids timely received shall be opened. Unless all bids are rejected, the contract shall be awarded to the lowest responsible bidder. 2958 -EMERGENCY PROCEDURE In the case of an emergency when repairs or replacements are necessary, the City Council may proceed at once to replace or repair any public facility without adopting plans, specifications, or working details, or giving notice for bids to let contracts. The work may be done by day labor under the direction of City Council, by contractor, or by a combination of the two. In any such emergency, if notice for the bids will not be given, the City shall comply with the procedures set forth in Public Contract Code section 22050. SECTION 4. EFFECTIVE DATE. This Ordinance shall take effect thirty days after its passage and adoption pursuant to California Government Code section 36937. SECTION 5. PUBLICATION. The City Clerk shall certify to the passage and adoption of this Ordinance and to its approval by the Mayor and shall cause the same to be published according to law. INTRODUCED this 16th day of July, 2013. PASSED, APPROVED, AND ADOPTED this 6th day of August, 2013. Cynthia Sternquist, MAYOR ATTEST: APPROVED AS TO FORM Peggy Kou, City Clerk Eric S. Vail, City Attorney I, Peggy Kou, City Clerk of the City of Temple City, hereby certify that the foregoing Ordinance No. 13-977 was introduced at the regular meeting of the City Council of the City of Temple City held on July 16, 2013, and was duly passed, approved and adopted by said Council at the regular meeting held on August 6, 2013 by the following vote: AYES: Councilmember- NOES: Councilmember- ABSENT: Councilmember- ABSTAIN: Councilmember- Peggy Kou, City Clerk