City of Gonzales
CITY ATTORNEY
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: June 16, 2025
FROM: Michael Rodriquez, City Attorney
THROUGH: Carmen Gil, City Manager
SUBJECT: Adoption of Ordinance No. 2025-151 Amending Section 3.16.085-Bidding Procedures for Public Construction Projects of Chapter 3.16-Purchasing Procedures of the Gonzales City Code
RECOMMENDATION
It is recommended that the City Council waive reading, read by title only, and adopt Ordinance No. 2025- 151, An Ordinance of the City Council of the City of Gonzales Amending Section 3.16.085-Bidding Procedures for Public Construction Projects of Chapter 3.16-Purchasing Procedures of the Gonzales City Code.
BACKGROUND
California law requires general law cities such as Gonzales to advertise public works projects for competitive bidding if an involved project is anticipated to cost more than $5,000. An alternative contracting process for public works has been established in the California Uniform Public Construction Cost Accounting Act (“UPCCAA”), as set forth in California Public Contract Code, Sections 22000 through 22050. The intent of the UPCCAA is to promote uniformity of cost accounting standards and allow greater flexibility for public agencies in the public contract bidding process.
The UPCCAA allows local agencies that elect to follow the cost accounting procedures in the “Cost Accounting Policies and Procedures Manual” to use alternative bidding procedures when they hire contractors to perform public works projects. Contracts are broken into three categories: no-bid contracts, informal contracts, and formal bidding contracts, each with its own monetary threshold and set of procedures as set by statute and Manual provisions.
A decade ago, the City adopted a resolution choosing to perform public works projects pursuant to the alternative bidding and contracting procedures of the UPCCAA. As such, in November of 2015, the AGENDA
ITEM
19 Council adopted Ordinance No. 2015-88 “Amending Section 3.16.085- Bidding Procedures for Public Construction Projects” of Chapter 3.16– Purchasing Procedures of the Gonzales City Code. The monetary thresholds established for the three categories of contractual bidding, no bid, informal and formal, which have been amended since the initial adoption of the UPCCAA bidding procedures, are currently set at $60,000, $200,000, and any amount over $200,000 respectively.
REVIEW & ANALYSIS
Pursuant to AB 2192, as of January 1, 2025, the public works contract bidding thresholds established for use under the UPCCAA have been increased.
The new bidding thresholds are as follows:
No Bid- Public Projects costing $75,000 or less can be performed pursuant to force account, negotiated contract or purchase order of $75,000 or less.
Informal Bidding- Public Projects costing $220,000 or less can be let to contract by informal procedures (solicitation of proposals).
Formal Bidding- Public Projects costing more than $220,000 are to be let to contract by formal noticed bidding procedures.
AB 2192 also includes language making an addition to the definition of “public projects” covered by the UPCCAA by adding “installation” work performed at publicly owned, leased or operated facilities. This change will be useful when adding or replacing large pieces of attached equipment, like HVAC systems, at such facilities.
Staff has prepared an ordinance amending Section 3.16.085 of Chapter 3.16 Purchasing Procedures of the Gonzales City Code to include the UPCCAA changes referenced above. We have also taken the opportunity to correct and add some language that appears to have been inadvertently altered or omitted in previous iterations of the Code. Staff believes that use of the UPCCAA process has proven to save time, money and effort in the City’s public works projects by expediting the contractor selection process, improving timeliness of project completion, and eliminating time-consuming and burdensome paperwork and noticing requirements associated with many typical contracts. The new monetary thresholds will also be helpful given recent and anticipated increased costs of construction materials. As such, Staff is recommending that Ordinance No. 2025-151 be adopted.
The Council should keep in mind that in utilizing the UPCCAA process, all informal and formal public works contracts will continue to be awarded to the lowest responsive and responsible bidder. The City would also still be required to meet statutory requirements in its public works contracts for performance bonds, payment of prevailing wages, certificates of insurance and funding mandates.
At the June 2 City Council meeting, the Council waived reading, introduced and read by title only Ordinance No. 2025-151 which will amend Section 3.16.085 of the Gonzales City Code to reflect the changes referenced above. Staff is now recommending that the Council conduct a public hearing (which was noticed in accordance with all legal requirements) and receive comment, waive reading, and thereafter adopt and read Ordinance No. 2025-151 by title only this evening.
Explain Recommendation and How it Supports the Vision.
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small town charm.
Explain: Use of the increased monetary thresholds for public works projects should allow the City to continue to carry out numerous projects that contribute to the City’s safety, cleanliness and charm in a cost-efficient and timely manner.
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes ____No ____NA
Explain: See above.
City services will be delivered in a cost-effective, respectful and friendly manner to ensure the safety and well being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner. X Yes ___No ___NA Explain: See above.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety X Yes No N/A
• Housing Yes No X N/A
• Recreation X Yes No N/A
• Environment X Yes No N/A
• Education Yes No X N/A
Explain: See above.
ALTERNATIVES
None at this time.
BUDGET IMPACT
Adoption of the proposed Ordinance should have no adverse impact on the budget and may result in some cost savings associated with avoidance of typical bid procedures like preparation of bid solicitations and related publication requirements.
CONCLUSION
It is recommended that the City Council waive reading, read by title only, and adopt Ordinance No. 2025- 151, An Ordinance of the City Council of the City of Gonzales Amending Section 3.16.085-Bidding Procedures for Public Construction Projects of Chapter 3.16-Purchasing Procedures of the Gonzales City Code.
Attachments:
1. Public Notice
2. Ordinance No. 2025-151