Agenda Item
City Council
Item #: 8.1. 4/11/2023 File #: 23-0217
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
Introduction and First Reading of Ordinance No. 05-23 authorizing updates to the informal bid limits set forth in the Orange Municipal Code.
2. SUMMARY
The current informal bid limits in the Orange Municipal Code reflect outdated dollar limits, which conflict with periodic amendments issued by the California Uniform Construction Cost Accounting Commission. The proposed Ordinance updates the informal bid limits to reference the current Uniform Construction Cost Account Act values.
3. RECOMMENDED ACTION
Introduce and conduct First Reading of Ordinance No. 05-23. An Ordinance of the City Council of the City of Orange amending Chapter 3.08 of the Orange Municipal Code to update Uniform Public Construction Cost Accounting Act references to conform to current law.
4. FISCAL IMPACT
None.
5. STRATEGIC PLAN GOALS
Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.
6. DISCUSSION AND BACKGROUND
On June 22, 1999, the City Council adopted Resolution No. 9133 electing to become subject to the Uniform Construction Cost Accounting Act, Public Contract Code Section 22030 et seq. (the “Act”)for public project construction work contracted by the City of Orange. The benefit of the Act is that it allows a city’sformal and informal bid limits to adapt to current economic conditions by having them adhere to those limits established by the California Uniform Construction Cost Accounting Commission, as amended from time to time. However, Ordinance No. 10-06, adopted on June 13, 2006, codified the then-current (2006) bid limits into the Orange Municipal Code (OMC). Codification of the 2006 dollar limits has created a discrepancy between the City’sadherence to the Act and the outdated references in the OMC. For example, in 2006, the informal bid limit was $125,000. Today, the informal bid limit is $200,000. In 2006, the City could perform public work by force account up to $30,000 but today that limit is $60,000.
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Item #: 8.1. 4/11/2023 File #: 23-0217
Ordinance No. 05-23 will amend the pertinent provisions in Chapter 3.08 of the OMC to replace language specifying a dollar limit with a general statement referencing the values set forth in Section 22032(a) of the Act. Thus, the OMC will adhere to the limits specified in the Act when this limit is amended in the future, as intended.
7. ATTACHMENTS
· Ordinance No. 05-23 - CLEAN
· Ordinance No. 05-23 - REDLINED
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