ITEM 5.1
CITY MANAGER'S REPORT
DECEMBER 9, 2024, CITY COUNCIL REGULAR MEETING
ITEM:
ONE NAME MENTO TIL CHAPTER
3.30 INFORMAL BIDDING, INCREASE
INFORMAL BIDDING THRESHOLDS AND SERVICE
DEFINITIONS IN ACCORDANCE WITH ASSEMBLY
BILL 2192 (2024) AMENDMENTS TO THE PUBLIC
CONTRACT CODE
RECOMMENDATION: Council to Consider the Following:
I Introd collie Hearing and
Introduction and First Reading of an
Ordinance Amendment to Title 3, Chapter
3.30 Informal Bidding, To Increase Informal
Bidding Thresholds and Service Definitions in
Accordance with Updated Assembly Bill 2192
(2024) Amendments to the Public Contract
Code
SUMMARY:
Staff proposes amendments to Lathrop Municipal Code (LMC) Chapter 3.30 to incorporate recent updates to the California Public Contract Code.
To implement these changes, staff requests Council hold a public hearing and introduce an ordinance to amend Chapter 3.30 (Informal Bidding) and update service definitions in compliance with the California Public Contract Code.
BACKGROUND:
On November 28, 2006, City Council elected to adopt the State of California's Uniform Public Construction Cost Accounting Procedures as outlined in the Uniform Public Construction Cost Accounting Act (CUPCCA Act).
Subsequently, on December 5, 2006, the City Council enacted Ordinance 06-264, which added Chapter 3.30 (Informal Bidding) to the LMC. This chapter currently permits City employees to perform public project work valued under $60,000 without a formal bidding requirement and established informal bidding procedures for projects ranging from $60,000 to $200,000, in compliance with the Act.
In November 2024, State of California raised the maximum bidding thresholds, now:
allowing City employees to perform public project work under $75,000 without formal bidding and allowing informal bidding procedures for projects between $75,000 and $220,000.
CITY MANAGER'S REPORT PAGE 2
DECEMBER 9, 2024 REGULAR CITY COUNCIL MEETING
ORDINANCE AMENDING LMC 3.30 INFORMAL BIDDING
Accordingly, staff requests that the City Council approve the proposed amendment to LMC Chapter 3.30 to reflect these updated thresholds and align with the current limits established by the State of California's Public Contract Code and update service definitions. Additionally, staff requests that Council automatically adopt any future threshold adjustments based on the maximum amount allowable set forth in Public Contract Code 22034.
REASON FOR RECOMMENDATION:
The proposed amendments to LMC 3.30 Informal Bidding are necessary to update the limit to which City staff can perform public project work and the bidding and contract award thresholds for informal bidding. By increasing these limits, more projects will be eligible for the informal solicitation of construction bids. Informal bid solicitation expedites project delivery by reducing the time, effort, and expense and simplifying the administration associated with soliciting bids for projects under $220,000.
FISCAL IMPACT:
There is no direct fiscal impact associated with the proposed adoption of the proposed ordinance amending LMC 3.30 Informal Bidding and update service definitions.
ATTACHMENTS:
An Ordinance of the City Council of the City of Lathrop to Consider an amendment to Title 3, Chapter 3.30 Informal Bidding Thresholds and Service Definitions in Accordance With Updated Assembly Bill 2192(2024) Amendments to the Public Contract Code
B. Chapter 3.30 Informal Bidding Lathrop Municipal Code Notification Letter-Assembly Bill 2192
CITY MANAGER'S REPORT PAGE 3
DECEMBER 9, 2024 REGULAR CITY COUNCIL MEETING
ORDINANCE AMENDING LMC 3.30 INFORMAL BIDDING
APPROVALS:
11/2/2024
-
Carlos Carrillo Date
Management Analyst
BaR 11/20/2024
-
Brad Taylor Date
City Engineer
Carol por 11/24/2024
Date
Finance Director
11•21.2024
Michael King Date
Assistant City Manager
Stando
11/20/2024
Salvador Navarrete Date
City Attorney
12.4.24 Stephen J. Salvatore Date
City Manager
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LATHROP TO CONSIDER AN AMENDMENT TO TITLE 3, CHAPTER 3.30 INFORMAL BIDDING
THRESHOLDS AND SERVICE DEFINITIONS IN ACCORDANCE WITH THE UPDATED ASSEMBLY BILL 2192 (2024) AMENDMENTS TO THE PUBLIC
CONTRACT CODE
WHEREAS, On November 28, 2006, City Council elected to adopt the State of California's Uniform Public Construction Cost Accounting Procedures as outlined in the Uniform Public Construction Cost Accounting Act (CUPCCA Act); and WHEREAS, on December 5, 2006, the City Council enacted Ordinance 06-264, which added Chapter 3.30 (Informal Bidding) to the LMC; and WHEREAS, this chapter currently permits City staff to perform public project work valued under $60,000 without a formal bidding requirement and established informal bidding procedures for projects ranging from $60,000 to $200,000, in compliance with the CUPCCA Act; and
WHEREAS, in November 2024, the State of California raised the maximum bidding thresholds, now allowing City staff to perform public project work under $75,000 without formal bidding and permitting informal bidding procedures for projects between $75,000 and $220,000; and
WHEREAS, staff requests that the City Council amend LMC Chapter 3.30 to reflect these updated thresholds and align with the current limits established by the State of California's Public Contract Code; and
WHEREAS, staff requests that Council automatically adopt any future threshold adjustments based on the maximum amount allowable set forth in Public Contract Code 22034; and
WHEREAS, there is no direct fiscal impact associated with the adoption of the proposed ordinance amending LMC 3.30 Informal Bidding.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LATHROP DOES HEREBY ORDAIN AS FOLLOWS:
Section 1.
Note: additions are shown below in underline font, deletions are shown in strikeout font.
The foregoing Ordinance was introduced the gth day of December and adopted this day of by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Paul Akinjo, Mayor
ATTEST: APPROVED AS TO FORM:
Stantes
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney
ATTACHMENT
Chapter 3.30 INFORMAL BIDDING
3.30.010 Application.
Contracts for work of $220,000.00$200,000.00 or less shall be governed by the
3.30.030 Work of $75,000.00 $60,000or less.
Pursuant to Public Contract Code Sections 220033 and 22032, any work as defined in this chapter, of $75,000.00$60,000.00 or less may be performed by the employees of the city by force account, by negotiated contract, or by purchase order.
3.30.040 Informal bidding procedures.
Any work, as defined in this chapter, of $220,000.00$200,000.00 or less may be contracted for by the informal bidding procedures set forth in this chapter.
3.30.090 Bids received in excess of $220,000.00$200,000.00.
If all bids received are in excess of $220,000.00$200,000.00, the city council may, by passage of resolution by a four-fifths vote, award the contract for $233,000.00$212,300.00, or less, to the lowest responsible bidder, if the city council determines that the cost estimate was reasonable.
Section 2.
This Ordinance is not intended to and shall not be construed or given effect in a manner that imposes upon the City or any officer or employee thereof a mandatory duty of care toward persons and property within or without the City so as to provide a basis of civil liability for damages, except as otherwise imposed by law.
Section 3. Severalbility
If any provisions of this Ordinance or application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The City Council hereby declares that it would have adopted this Ordinance irrespective of the validity of any particular portions thereof.
Section 4. Effective Date
This Ordinance shall take legal effect and be in force thirty (30) days from and after the date of its passage.
Section 5. Publication
Within fifteen (15) days after its final passage, the City Clerk shall cause a copy of this Ordinance to be published in full accordance with Section 36933 of the Government Code.
ATTACHMENT
"c"
MALIA M. COHEN
CALIFORNIA STATE CONTROLLEr
November 1, 2024
To: ALL PUBLIC AGENCIES SUBJECT TO THE TERMS OF THE
UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING ACT
SUBJECT: Notification Letter-Assembly Bill 2192 (Chaptered 953, Statutes of 2024) The California Uniform Construction Cost Accounting Commission (CUCCAC) in agreement with the State Controller's Office (SCO) recommended an increase to the bid limit threshold prescribed in Public Contract Code (PCC) 22032; this increase was signed into law. Pursuant to PCC 22020, and on behalf of Controller Malia M. Cohen, SCO would like to inform agencies subject to the Uniform Public Construction Cost Accounting Act (Act) of the following changes effective January 1, 2025:
a) The change would allow projects costing $75,000 or less to be performed by employees of a public agency by force account, by negotiated contract, or by purchase order; b) The change would allow projects costing up to $220,000 to be contracted by informal bidding procedures; and projects costing over $220,000 are subject to the formal bidding process.
The noted increases are pursuant to the provisions and benefits found in the Act, which provides public agencies with economic benefits and greater freedom to expedite public works projects. For agencies which follow the cost accounting procedures set forth by CUCCAC in its Cost Accounting Policies and Procedures Manual, these increased limits will expedite delivery of public work projects and reduce bid processing costs. If your agency is currently subject to the Act, a new resolution adopting the change into legislation is not required.
We encourage participating agencies to visit the SCO website to sign up for CUCCAC's email subscription service to receive important information concerning CUCCAC updates and legislative changes via email. For more details or to sign up for the email subscription services, please contact the Local Government Programs Services Division at [email protected] or visit our website at www.sco.ca.gov/ard_cuccac.html.
Sincerely,
(Original signed)
Sandeep Singh
Manager, Local Government Policy Section
Local Government Programs and Services Division
Mailing Address P.O. Box 942850, Sacramento, CA 94250
3301 C Street, Suite 740, Sacramento, CA 95816