Item No. 5
Town of Atherton
CITY COUNCIL STAFF REPORT – PUBLIC HEARING
TO: HONORABLE MAYOR AND CITY COUNCIL
GEORGE RODERICKS, CITY MANAGER
FROM: MONA EBRAHIMI, CITY ATTORNEY
DATE: MAY 21, 2025
SUBJECT: INTRODUCE AND WAIVE THE FIRST READING OF AN
ORDINANCE AMENDING SECTIONS 3.16.240 AND 3.16.280 OF
THE ATHERTON MUNICIPAL CODE RELATING TO
PURCHASING; CONSIDERATION AND APPROVAL OF A
RESOLUTION ESTABLISHING UPDATED AMOUNTS FOR
PROCUREMENT OF PUBLIC WORKS PROJECTS FOR FORCE
ACCOUNT/OPEN MARKET PROCEDURES, INFORMAL
BIDDING PROCEDURES, AND FORMAL BIDDING
PROCEDURES
RECOMMENDATION
It is recommended that the Council introduce and waive the first reading of the attached Ordinance amending two sections of Chapter 3.16 relating to Purchasing, including Section 3.16.240 relating to Requirements for contracting public works projects, and Section 3.16.280 relating to Public works project bids in excess of maximum authority. Adopt the attached Resolution that opts into the California Uniform Public Construction Cost Accounting Act ("Act") and establishes updated maximum amounts for procurement of public works projects for force account/open market procedures, informal bidding procedures, and formal bidding procedures,
BACKGROUND
The Act allows public agencies to utilize more relaxed bidding procedures for certain public works projects. The Act is codified in Public Contract Code sections 22000 et seq. Public agencies must elect to participate in the Act to be subject to it.
In 2012, the Town of Atherton adopted a resolution electing to participate in the Act.
Public Contract Code section 22034 requires a local agency who has opted into the Act to adopt an informal bidding ordinance to govern the selection of contractors to perform public works projects for works of a certain amount. In 2012, the Town of Atherton adopted an informal bidding Bidding Process
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ordinance to comply with Public Contract code section 22034.
As part of the Act, every five years, the California Uniform Construction Cost Accounting Commission (the "Commission") is required to consider whether there have been material changes in public construction costs and make recommendations to the State Controller. These updates affect the amounts associated with force account, informal bidding procedures, and formal bidding procedures. Atherton Municipal Code section 3.16.240 requires these amounts to be established by resolution of the City Council on a periodic basis.
ANALYSIS
The attached Ordinance updates two sections of the Atherton Municipal Code to reflect recent changes in the law relating to the Act. The changes include modifying the definition of "public works projects" in section Atherton Municipal Code section 3.16.240 so it reflects the Public Contracts Code's definition and modifying the language of Atherton Municipal Code section
3.16.280 to reflect the updated amounts in the law. The modification to section 3.16.280 uses language to ensure the municipal code section accurately reflects the amounts as periodically amended in the Public Contracts Code.
The attached Resolution opts into the Act and establishes amounts for (1) force account, negotiated contract, or purchase order; (2) contract by informal procedures; and (3) contract by formal bidding procedure. This Ordinance reflects changes to dollar amounts made by Assembly Bill 2192, which became effective January 1, 2025, and follows the procedures laid out in Atherton Municipal Code section 3.16.240.
FISCAL IMPACT
Notices for Competitive Bidding occur at a cost to the Town. Being able to streamline certain projects by relying on the Act will likely save the Town money.
GOAL ALIGNMENT
This Report and its contents are in alignment with the following Council Policy Goals:
• By opting into the Act, the Town of Atherton is able to more efficiently complete public works projects under $75,000.
POLICY FOCUS
The attached Ordinance and Resolution align with the goal of Atherton to efficiently complete smaller public works projects.
PUBLIC NOTICE
Public notification was achieved by posting the agenda, with this agenda item being listed, at least 72 hours prior to the meeting in print and electronically. Information about the project is also Bidding Process
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disseminated via the Town’s electronic News Flash and Atherton Online. There are approximately 1,200 subscribers to the Town’s electronic News Flash publications. Subscribers include residents as well as stakeholders –to include, but be not limited to, media outlets, school districts, Menlo Park Fire Protection District, service provides (water, power, and sewer), and regional elected officials.
COMMISSION/COMMITTEE FEEDBACK/REFERRAL
This item has not been before a Town Committee or Commission
ATTACHMENTS
ATTACHMENT 1 – Ordinance NO. 67X
ATTACHMENT 2 – Resolution NO. 2025 - X