14-F
TO: Honorable Mayor and Members of the City Council
ATTENTION: Ryan Smoot, City Manager
FROM: Len Gorecki, Assistant City Manager/Public Works Director
SUBJECT: Consideration and possible action to waive further reading and adopt Ordinance No. 1441 - An Ordinance amending Chapter 3.30 to Title 3 of the Bellflower Municipal Code entitled “Public Works Contracts” in its entirety.
DATE: February 10, 2025
EXECUTIVE SUMMARY
Ordinance No. 1441 was introduced on January 27, 2025. Second reading and adoption is recommended. If adopted, the ordinance will take effect in 30 days.
RECOMMENDATION TO CITY COUNCIL
1) Waive further reading and adopt Ordinance No. 1441; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
None.
ATTACHMENTS
Ordinance No. 1441 ...................................................................................................... 11 January 27, 2025, Staff Report (Without Attachments) ................................................... 3
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CITY OF BELLFLOWER
ORDINANCE NO. 1441
AN ORDINANCE AMENDING CHAPTER 3.30 TO TITLE 3 OF THE
BELLFLOWER MUNICIPAL CODE ENTITLED “PUBLIC WORKS
CONTRACTS” IN ITS ENTIRETY
THE CITY COUNCIL DOES ORDAIN AS FOLLOWS:
SECTION 1. Findings. The City Council finds, determines and declares as follows:
A. Conditions of extreme peril to the safety of persons exist following the Governor’s Proclamation of Emergency dated January 7, 2025 due to the Palisades Fire and windstorm conditions (the “LA Emergency”).
B. The fires causing the LA Emergency collectively burned more than 40,000 acres, devastating communities throughout the Greater Los Angeles Basin by destroying or damaging more than 12,000 structures.
C. The destruction of homes by the fires burning in Los Angeles and Ventura Counties will reduce the available contractors in the region, which is likely to further increase the cost of construction for all projects including, without limitation, public works projects previously approved by the City Council via the capital improvement plan (“CIP”).
D. It is vital that the City take immediate action to secure contractors needed to complete the CIP as many of these projects involve improvements to critical infrastructure within the City including, without limitation, water infrastructure necessary for firefighting.
E. On November 5, 2024, the voters approved Measure B which adopted the City Charter for the City of Bellflower (the “Charter”).
F. Articles II, III, and IV of the Charter provide that the City may enact all laws governing its municipal affairs. Article VII provides direction regarding bidding and contracting for public works projects including, without limitation, when prevailing wages must be paid for such projects.
G. Pursuant to Article III(B) of the Charter, the City Council finds that the law enacted by this Ordinance will not unduly burden a person’s ability to pursue economic opportunities and safe and legal residential housing.
H. The City Council notes that the findings in Ordinance Nos. 1438 and 1439 are, in part, applicable to the purpose of adopting this Ordinance.
Specifically, the regulations adopted by this Ordinance help implement the SPARK identified in Ordinance Nos. 1438 and 1439 by reducing bureaucracy and increasing efficiency.
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Ordinance No. 1441
I. The City Council takes notice of the plethora of authority confirming that the Charter has the force of California law (see, e.g., Cal. Const., art. XI, § 3, subd. (a); Coalition of County Unions v. Los Angeles County Bd. of Supervisors (2023) 93 Cal.App.5th 1367; and State Building & Construction Trades Council of California v. City of Vista (2012) 54 Cal.4th 547).
Ordinances implementing the Charter’s municipal affairs section may only be preempted when there is a pressing matter of statewide concern (California Fed. Savings & Loan Assn. v. City of Los Angeles (1991) 54 Cal.3d 1).
J. The regulations adopted by this Ordinance are intended to be immediately implemented to accelerate the City’s ability to secure contractors to implement the CIP and take such additional actions that may assist with implementing the SPARK including, without limitation, offering economic opportunities to small businesses affected by the LA Emergency.
SECTION 2. Amendments. Bellflower Municipal Code (“BMC”) Chapter 3.30, entitled “Public Works Contracts,” is amended in its entirety to read as follows:
“Chapter 3.30
PUBLIC WORKS CONTRACTS
3.30.010: Purpose; Applicability.
This chapter is adopted pursuant to the municipal affairs provisions of the City Charter and Article VII of the City Charter for the purpose of establishing bid procedures for delivering public works projects; identifying projects subject to prevailing wage; and authorizing the city manager to administer this chapter. This chapter may be used for all public works projects.
3.30.020: Definitions.
Unless the contrary is stated or clearly appears from the context, the definitions in Public Contract Code § 22002 and set forth below will govern the construction of the words and phrases used in this chapter:
A. “Best value” means a procurement whereby the lowest responsible bidder is selected based on objective criteria for evaluating the qualifications of bidders with the resulting selection representing the best combination of price and qualifications along with the nature of the goods, supplies, or equipment. The objective criteria to consider are:
1. Bidder’s trustworthiness;
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Ordinance No. 1441
2. Bidder’s quality, fitness, and capacity to satisfactorily perform the work required to be performed by the Project; and
3. The proposed price.
B. “City Manager” means the city manager or designee . Unless otherwise designated by the city manager in writing, the Public Works Director will constitute the city manager’s designee for purposes of this chapter.
C. “Construction manager at risk method” means a project delivery method in which a construction manager is retained to provide preconstruction services during the design phase of the project and construction services during the construction phase of the project. The contract may be entered into using a qualifications-based selection process or using a selection process that evaluates the best value to the City.
D. “Design-build method” means a project delivery method in which both the design and construction of a project are procured from a single entity. The contract may be entered into using a qualifications-based selection process or using a selection process that evaluates the best value to the city.
E. “Facility” means any plant, building, structure, ground facility, utility system, real property, streets, alleys, and parking lots, and other public improvement.
F. “Maintenance projects” means routine, recurring, and usual work for the preservation, protection, and keeping of any publicly owned or publicly operated facility for its intended purposes in a safe, efficient, and continually usable condition for which it was designed, improved, constructed, altered, or repaired. Maintenance projects include, without limitation,
1. Routine, recurring, and usual work for the preservation or protection of any city-owned, city-leased, or city-operated facility for its intended purpose.
2. Minor repainting.
3. Resurfacing of streets, alleys, and parking lots up to and including one inch.
4. Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacing plants, and servicing of irrigation and sprinkler systems.
5. Work performed to keep, operate, and maintain city-owned water and waste disposal systems.
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Ordinance No. 1441
G. “Prevailing wage law” means Labor Code § 1720, et seq. and California Code of Regulations, tit. 8, § 16000, et seq., as amended.
H. “Proposer” means a corporation, limited liability company, partnership, joint venture, or other legal entity that can provide appropriately licensed services as needed pursuant to a design -build or construction manager at risk contract.
I. “Public works project” means any of the following when paid for in whole or in part with public funds:
1. Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any city -owned, city-leased, or city-operated facility.
2. Painting or repairing of any city-owned, city-leased, or city-operated facility.
3.30.030: Soliciting Bids and Awarding Contracts.
A. The city manager may solicit bids, award contracts up to $100,000, and execute contracts, in a form approved by the city attorney, for public projects without approval from the city council. Contracts for public projects costing more than $100,000 may be solicited by the city manager but must be awarded by the city council.
B. Should the expenditure be less than or equal to $100,000, the work (including maintenance) may be performed by the employees of the city, by force account, by informal bids from qualified contractors, or by negotiated contract.
C. Regardless of the expenditure amount, the city manager is authorized to solicit bids for projects identified in the capital improvement plan approved by the city council and included in the current operating budget without additional city council authorization. The city manager is required to bring all recommendations for award exceeding $100,000 to the city council.
D. Beginning in January 2026, the sums set forth above may be adjusted annually by the finance director in consultation with the public works director in writing. Such adjustments must be completed in accordance with the Engineering Construction Cost Index – U.S. City Average as published by the Engineering News-Record. In the event this Cost Index is no longer available, the finance director, in consultation with the public works director, must use a similar index that is standard in the industry to account f or inflation in any adjustment.
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Ordinance No. 1441
3.30.040: Design-build and construction manager at risk authorized.
Using the design-build and construction manager at risk methods is authorized when the public works director makes a written determination that utilizing such method for a particular public works project will promote efficiency and will not hamper fair competition. Additionally, the city council must adopt a conflict of interest policy pertaining to such methods. The city manager may promulgate administrative policies and procedures to implement this authorization and promote fair competition. Procedures must include a requirement for the proposer to its subcontractors as specified in the procurement package and require the selected contractor to follow a process approved by the city for selection of subcontractors. For design-build contracts the proposer must identify the general contractor, the principal design firm and all design subconsultants.
3.30.050: Design Immunity.
A. Pursuant to Government Code § 830.6, the city engineer is authorized to approve standard design and construction plans for maintenance projects before work commences.
B. The city engineer may also exercise discretionary approval for plans or designs for each project identified in the capital improvement plan approved by the city council in advance of the construction or improvement. Such approval must conform with the following:
1. The city engineer must determine that design and plans for the capital improvement projects are consistent with the city’s standards, guidelines, practices, or otherwise comply with applicable law and engineering standards, guidelines, or practices;
2. Approval must be in writing and be stamped by the city engineer while exercising his or her discretion in accordance with California law; and
3. The design approval must occur before a solicitation of bids is issued in accordance with this code and before actual construction work construction commences.
C. The city engineer is authorized to act on the city’s behalf in approving any alterations or modifications of approved design and plans.
D. The approval and authorization granted in this section is intended to avail the city of the immunities set forth in Government Code § 830.6.
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Ordinance No. 1441
3.30.060: Qualified Contractors.
The public works department will maintain a list of qualified contractors, identified according to categories of work. Any licensed contractor requesting to have its name placed on this list must be included. The list may be periodically revised to remove inactive names. A name may be deemed inactive if:
A. Letters addressed to the contractor at its last known address are returned without a forwarding address;
B. The contractor does not obtain plans for, or bid on, a public project for two years;
C. The contractor’s license is revoked or suspended by the California State Licensing Board;
D. The contractor removes its name; or
E. For other good cause as determined by the city manager.
F. Before removing a qualified contractor from the City's bid list, the city manager must make a good faith attempt to notify the contractor regarding the removal.
3.30.070: Notice Inviting Bids.
A. The notice inviting bids must describe the project in general terms, indicate how to obtain more detailed information regarding the project, and state the time and place for submitting bids.
B. Unless the product or service is proprietary, not less than 10 calendar days before the date set for opening bids, the city manager must notify contractors using one or both of the following methods:
1. Mail notices to each contractor on the list for the category of work to be performed;
2. Mail notices to each of the construction trade journals specified in Public Contract Code § 22036.
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Ordinance No. 1441
3.30.080: Bid Security.
A. Bid Security is required for all bids on public projects when the public works director estimates that the price will exceed $60,000. Bid security may be a bond issued by a licensed and duly qualified corporate surety, or the equivalent in cash, money order, cashier’s check, certified check, unconditional letter of credit, or other form approved by the city attorney.
Nothing in this section prevents the city from requiring bid security on public projects less than $60,000 when the city manager believes such security is needed to protect the city’s interests.
B. Bid security must equal at least 10% of the bid amount.
C. If the notice inviting bids requires a bid security, noncompliance or defective, inadequate, or incomplete security will render the bid nonresponsive.
D. Bid security will be forfeited or paid to the city should the bidder fail to execute a contract within the time specified in the notice inviting bids.
3.30.090: Bid Opening.
The city clerk, or designee, will publicly open all bids in the presence of one or more witnesses at the time and place specified in the invitation for bids. Late, misplaced, or unsealed bids cannot be considered. If no bids are received, the city may proceed as set forth in Public Contract Code § 22038.
3.30.100: Award.
A. Contracts may be awarded to the lowest responsible bidder if the city manager or city council considers the bid to be reasonable, sufficient funds are appropriated for the public project, and the bid is the best value to the city.
B. Nothing in this section restricts the city from taking any action set forth in Public Contract Code § 22038.
3.30.110: Bonds and Insurance.
Contractors awarded a contract under this chapter are required to provide sureties and insurance in forms approved by the city attorney and conforming with the contract documents.
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Ordinance No. 1441
3.30.120: Prevailing Wage.
The city council implements Article VII(C) of the City Charter as follows:
A. The city must pay prevailing wages for public works projects based on the expenditure limits identified in Labor Code § 1782.
B. Absent a city council resolution determining otherwise, payment of prevailing wage is not required for an economic opportunity project (see, Government Code §§ 52200 to 52203).
C. The city council may execute a “project labor agreement” that establishes terms and conditions of employment for a specific construction project or projects and is an agreement described in 29 United States Code § 158(f).
D. All public works projects subject to payment of prevailing wage are required to comply with the provisions set forth in Labor Code § 1770, as amended.
No public works project subject to payment of prevailing wage may be split or separated into small portions or work orders for the purpose of evading the requirements of this code or California law.
3.30.130: Nuisance Abatement.
Where abatement of public nuisances constitutes rehabilitation, demolition or repair, or removal of real property including, without limitation, structures or landscaping, or other work as authorized by an abatement warrant, the city manager is authorized to directly negotiate with a qualified contractor to expeditiously abate the nuisance. Such projects are not public works projects and, accordingly, prevailing wage need not be paid. All abatement costs will be recovered in accordance with this code.”
SECTION 3. Invalidity. If any part of this Ordinance or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Ordinance are severable.
SECTION 4. Environmental Assessment. This Ordinance is exempt from review under the California Environmental Quality Act (Cal. Pub. Res. Code §§ 21000, et seq.; “CEQA”) and CEQA Guidelines (14 Cal. Code Regs. §§ 15000, et seq.) because it establishes, modifies, structures, restructures, and approves rates and charges for meeting operating expenses; purchasing supplies, equipment, and materials; meeting financial requirements; and obtaining funds for capital projects needed to maintain service within existing service areas. This Ordinance, therefore, is categorically exempt from further CEQA review under CEQA Guidelines § 15273.
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Ordinance No. 1441
SECTION 5. Electronic Signatures. This Ordinance may be executed with electronic signatures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.
SECTION 6. Recordation. The Mayor, or presiding officer, is authorized to sign this Ordinance signifying its adoption by the City Council of the City of Bellflower and the City Clerk, or her duly appointed deputy, may attest thereto.
SECTION 7. Effective Date. This Ordinance will become effective on the 30th day after its adoption.
ORDINANCE NO. 1441 HAD ITS FIRST READING ON JANUARY 27, 2025, ITS SECOND READING ON FEBRUARY 10, 2025, AND WAS DULY PASSED,
APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER AT ITS REGULAR MEETING OF FEBRUARY 10, 2025.
Ray Dunton, Mayor
ATTEST:
__________________________
Mayra Ochiqui, City Clerk
APPROVED AS TO FORM:
__________________________
Karl H. Berger, City Attorney
10 10-C
TO: Honorable Mayor and Members of the City Council
FROM: Ryan Smoot, City Manager
Len Gorecki, Assistant City Manager/Public Works Director
SUBJECT: Consideration and possible action to 1) read by title only, waive further reading, and adopt Urgency Ordinance No. 1440; and 2) read by title only, waive further reading, and introduce Ordinance No. 1441 – An Ordinance amending Chapter 3.30 to Title 3 of the Bellflower Municipal Code entitled “Public Works Contracts” in its entirety.
DATE: January 27, 2025
EXECUTIVE SUMMARY
If adopted, Ordinance Nos. 1440 and 1441 will amend Chapter 3.30 of the Bellflower Municipal code (“BMC”) in its entirety to implement the City Charter by (1) establishing bidding regulations allowing the City to utilize “best value” for retaining contractors (rather than lowest responsible bidder); (2) utilize design-build for all public works projects, regardless of the engineer’s estimate (general law cities may only utilize this method for projects of $1M or more); (3) delegate authority to the City Engineer to secure design immunity for the City by approving design and construction plans; (4) establishing when prevailing wage must be paid (i.e., for classic public works projects as defined by the Ordinances); (5) exempting economic opportunity projects from paying prevailing wage – unless otherwise determined by City Council resolution; and (6) confirming that projects implemented by the City for abating public nuisances are not public works projects that require payment of prevailing wage.
RECOMMENDATION TO CITY COUNCIL
1) Adopt Urgency Ordinance No. 1440 upon 4/5ths vote;
2) Read by title only, waive further reading, and introduce Ordinance No. 1441; or
3) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
The City will incur costs associated with the codification of the Ordinances. There may be a significant reduction in costs to the City, however, for efficiencies in bidding and avoiding payment of prevailing wage for non-public works projects (typically 30% to 35% of a project cost). A better understanding of these savings will be completed after these regulations are implemented; an exact amount is speculative at the time of this writing.
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Staff Report – Ordinance Nos. 1440 and 1441
January 27, 2025
DISCUSSION
In November 2024, the voters overwhelming adopted the City Charter for Bellflower.
Article VII of the City Charter provides direction regarding bidding and contracting for public works projects including, without limitation, when prevailing wages must be paid for such projects. The proposed Ordinances implement Article VII by amending Bellflower Municipal Code (“BMC”) Chapter 3.30 as follows:
• Authorizing the City Manager to utilize a “best value” method of securing public works contracts. As a general law city, Bellflower was required to award a contract to the “lowest responsible bidder” as defined by the Public Contracts Code. BMC Chapter 3.30 will a contract to be awarded based upon “best value” to the City.
This means that the best combination of contractor qualification and price, along with the quality of goods, supplies, and equipment, determine which contractor the City may utilize. It does not mean that the contract will always be the lowest price (i.e., the “bargain basement”). Rather, it is what is best for the City.
• Authorizing the City Manager to solicit bids, award contracts, and execute contracts for public works projects up to $100,000. Currently, the City Manager’s authority is $75,000; this would be an increase of authority. Additionally, regardless of amount, the City Manager would be authorized to solicit bids and execute contracts for any project listed in the Capital Improvement Plan (“CIP”) approved by the City Council. Award for any contract over $100,000, however, would still require City Council approval.
• A design-build procurement process would be authorized to secure public works projects, regardless of amount. General law cities may only utilize this method for projects of $1M or more (e.g., the Mayne and the parking structure utilized design - build).
• The City Engineer would be authorized to approve public works plans and specifications for purposes of design immunity under Government Code § 830.6.
Currently, the City Council makes such determinations by resolution. Delegating authority would increase the timeliness and efficiency for delivering public works projects.
• The Ordinances implement the Charter’s directives regarding paying prevailing wage in accordance with the California Labor Code. “Classic” public works projects require payment of prevailing wage. Nuisance abatement projects (i.e., cleaning up private property pursuant to abatement warrants) are not classic public works projects and do not require payment of prevailing wage. Similarly, economic opportunity projects funded via the Business Assistance Plan are private projects that do not require payment of prevailing wage. As to the latter, the City Council may determine, by resolution, if some future economic opportunity project should pay prevailing wage; the default, however, is such projects are exempt.
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Staff Report – Ordinance Nos. 1440 and 1441
January 27, 2025
DISCUSSION – Continued
Considering the firestorm and windstorm emergencies, Ordinance No. 1440 is proposed as an urgency ordinance. As noted in the Ordinance, the regulations proposed for bidding, etc., are desirable to take effect immediately to help combat the likely challenges the City will face in securing contractors and paying reasonable pric es when the rebuilding of Pacific Palisades and Alta Dena begin in earnest. The City hopes to SPARK interest by implementing the new bidding regulations immediately.
ATTACHMENTS:
Urgency Ordinance No. 1440 .......................................................................................... 4 Ordinance No. 1441 ...................................................................................................... 13
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