CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
5/12/2025
1 SUBJECT:
Adoption of Ordinance Amending Sections 3-15.02, 3-15.03 and 3-15.08 and adding a new section 3-15.11, “Adjustment of dollar amounts to conform to Public Contract Code” within Chapter 15, “Bidding Procedures for Public Projects” of Title 3, “Finance” of the Pacifica Municipal Code relating to public bidding procedures and award of contracts for public projects.
RECOMMENDED ACTION:
Move to waive the second reading and adopt by title only “An Ordinance of the City Council of the City of Pacifica Repealing and Replacing Sections 3-15.02, 3-15.03, and 3-15.08 and Adding a New Section 3-15.11, ‘Adjustment Of Dollar Amounts To Conform To Public Contract Code’ Within Chapter 15, ‘Bidding Procedures For Public Projects’ Of Title 3, ‘Finance’ Relating To Public Bidding Procedures And Award Of Contracts For Public Projects”; and finding introduction of Ordinance not subject to review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000, et seq. and the CEQA Guidelines (14 Cal. Code Regs. §§ 15000 et. seq.), including without limitation, Public Resources Code section 21065 and California Code of Regulations 15378.
STAFF CONTACT:
Roland Yip, P.E., Deputy Director/City Engineer
(650) 738-3767
[email protected]
Louis Sun, P.E., Interim Public Works Director
(650) 738-4660
[email protected]
BACKGROUND/DISCUSSION:
This ordinance was introduced at the regular meeting of the City Council on April 28, 2025 and is now in order for adoption.
Under Assembly Bill 2192, which went into effect as of January 1, 2025, cities that have elected to become subject to the California Uniform Public Construction Cost Accounting Act (CUPCCAA) may increase their bidding thresholds for public projects. AB 2192 authorizes public projects of $75,000 or less to be performed by the employees of a public agency by force account, by negotiated contract, or by purchase order; authorizes public projects of $220,000 or less to be let to contract by informal procedures; and requires public projects of more than $220,000 to be let to contract by formal bidding procedures.
The City elected to become subject to CUPCCAA and follow the provisions of Public Contracts Code Section 22000 et seq., with the adoption of Ordinance No. 680, which became effective on October 11, 2000. The CUPCCAA public project bidding limits and procedures set forth in Public Contracts Code section 2032 are also set forth in the Pacifica Municipal Code, Chapter 15 “Bidding Procedures for Public Projects” within Title 3, “Finance”. Specifically, Pacifica Pacifica City Council 2
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Municipal Code section 3-15.02 (Award of contract) reads as follows:
Sec. 3-15.02. - Award of contract.
A. Public projects up to Sixty Thousand and no/100ths ($60,000.00) Dollars may be performed by City employee force account, by negotiated contract, or by purchase order.
B. Public projects up to Two Hundred Thousand and no/100ths ($200,000.00) Dollars may be let to contract by informal procedures as set forth in this chapter.
C. Public projects of more than Two Hundred Thousand and no/100ths ($200,000.00) Dollars shall, except as otherwise provided in this chapter, be let to contract by formal bidding procedure, including without limitation, those procedures contained within Public Contract Code Section 22037.
CUPCCAA previously authorized public projects of $60,000 or less to be performed by the employees of a public agency; authorized public projects of $200,000 or less to be let to contract by informal bidding procedures; and required public projects of more than $200,000 to be let to contract by formal bidding procedures.
With the enactment of AB 2192, the CUPCCAA limits in Public Contract Code 22032 have been amended to increase the thresholds for public projects of $75,000 or less to be performed by the employees of a public agency; authorizes public projects of $220,000 or less to be let to contract by informal bidding procedures; and requires public projects of more than $220,000 to be let to contract by formal bidding procedures. In the event that all bids received for the performance of a public project are in excess of $220,000, the governing body of a public agency may award the contract at $235,000 or less to the lowest responsible bidder if it determines the cost estimate of the public agency was reasonable. Nothing in the recommended amendment to the Purchasing Policy would preclude the City Council from choosing to engage in a full formal bid process for any project.
Given the changes effected by AB 2192, staff is recommending that the bidding limits in Chapter 15 be updated. The proposed amendments to Sections 3-15.02 will help streamline the Public Works bidding process for the City while maintaining an appropriate level of transparency and accountability. Further, language has been added to allow all purchasing levels to automatically follow the limits allowed under state law for all thresholds should the thresholds in Public Contract Code section 22032 be revised in the future.
Staff is also recommending that section 3-15.03 (Award of contracts by City Manager) also be amended to conform to the revisions to section 3-15.02 so that the City Manager can award contracts up to the informal bidding limit ($220,000). An amendment is also necessary to update section 3-15.08 (Acceptance of informal bids in excess of $175,000.00) to conform to the new informal bid limits of $220,000 and the new limits in Public Contract Code section 2034(f).
A new section 3-15.11 is included in the proposed ordinance to specify that if the legislature amends the dollar thresholds in Public Contract Code section 22032, then the bidding limits in Pacifica Municipal Code section 3-15.02 will automatically adjust.
CALIFORNIA ENVIRONMENTAL QUALITY ACT
This item is not subject to review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000, et seq. and the CEQA Guidelines (14 Cal.
Code Regs. §§ 15000 et. seq.), including without limitation, Public Resources Code section 21065 and California Code of Regulations 15378 as this is an ordinance that will make administrative changes and does not authorize any construction and is therefore not a “project” that may cause a direct, or reasonably foreseeable indirect, physical change in the environment.
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ALTERNATIVE ACTION:
The Council may choose not to amend sections 3-15.02 and 3-15.03 of Chapter 15 Bidding Procedures for Public Projects, Title 3 Finance of the Pacifica Municipal Code; however, that would leave the lower bidding limits in place and the City would not gain the benefit of operational efficiency in the City's procurement process.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
Adoption of Ordinance of the City Council of the City of Pacifica amendments Sections 3-15.02 and 3-15.03 of Chapter 15 Bidding Procedures for Public Projects, Title 3 Finance of the Pacifica Municipal Code:
• Improve and Steward City Infrastructure, Streets and Facilities: This Adoption of the Ordinance of Chapter 15 Bidding Procedures for Public Projects is necessary to ensure City achieve better operational efficiency under current economic conditions while still maintaining a high level of accountability and transparency in the City's procurement process.
FISCAL IMPACT:
There is no fiscal impact associated with these amendments to the City’s Ordinance Sections 3-
15.02 and 3-15.03 of Chapter 15 Bidding Procedures for Public Projects, Title 3 Finance of the Pacifica Municipal Code. Adoption of the proposed amendments will ensure the City is consistent with State law and Public Contracts Code. In addition, it will help the City achieve better operational efficiency under current economic conditions while still maintaining a high level of accountability and transparency in the City's procurement process.
ORIGINATED BY:
Public Works - Wastewater Division
ATTACHMENT LIST:
Attachment 1-RedlineCHAPTER_15.___BIDDING_PROCEDURES_FOR_PUBLIC_PROJECTS (DOCX) Pacifica City Council 4
May 12, 2025
ORDINANCE NO. (ID # 5931)
ORDINANCE NO. XXX-C.S.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PACIFICA REPEALING AND REPLACING SECTIONS 3-15.02, 3-15.03, AND 3-15.08 AND ADDING A NEW SECTION 3-
15.11, “ADJUSTMENT OF DOLLAR AMOUNTS TO CONFORM TO PUBLIC CONTRACT CODE” WITHIN CHAPTER 15, “BIDDING PROCEDURES FOR PUBLIC PROJECTS” OF TITLE 3, “FINANCE” RELATING TO PUBLIC BIDDING PROCEDURES AND AWARD OF
CONTRACTS FOR PUBLIC PROJECTS
WHEREAS, the City elected to become subject to the California Uniform Public Construction Cost Accounting Act (CUPCCAA) and follow the provisions of Public Contracts Code Section 22000 et seq., with the adoption of Ordinance No. 680, which became effective on October 11, 2000; and
WHEREAS, since that time, staff has periodically brought to City Council recommended updates as necessary; and
WHEREAS, the public project bidding limits and procedures are set forth in the Pacifica Municipal Code, Chapter 15 “Bidding Procedures for Public Projects” within Title 3, “Finance”; and
WHEREAS, Assembly Bill 2192 went into effect as of January 1, 2025 and provides that cities that have elected to become subject to CUPCCAA may increase their bidding thresholds for public projects to $75,000 or less to be performed by the employees of a public agency by force account, by negotiated contract, or by purchase order; $220,000 or less to be let to contract by informal procedures; $220,000 or more to be let by formal bidding procedures.
NOW, THEREFORE, the City Council of the City of Pacifica does ordain as follows:
Section 1. Recitals. The City Council of the City of Pacifica does hereby find that the above referenced recitals are true and correct and material to the adoption of this Ordinance.
Section 2. Amendment. Sections 3-15.03, “Award of contract”, 3-15.04, “Award of contracts by City Manager,” and 3-15.08, “Acceptance of informal bids in excess of $175,000” within Chapter 15, “Bidding Procedures for Public Projects” of Title 3, “Finance” shall be repealed and replaced in their entirety to read as follows:
“Sec. 3-15.02. - Award of contract.
Public projects, as defined by California Public Contract Code Section 22000 et seq., may be let to contract by informal procedures as set forth in Public Contract Code Section 22032 et seq., with dollar amounts as may be automatically adjusted pursuant to section 3-15.11.
A. Public projects of amounts equaling the limit for informal bidding as set forth California Public Contract Code Section 22032(a), as may be amended from time to time, or less may be performed by the employees of a public agency by force account, by negotiated Pacifica City Council 5
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contract, or by purchase order.
B. Public projects of amounts equaling the limit for informal bidding as set forth California Public Contract Code Section 22032(b), as may be amended from time to time, or less may be let to contract by informal procedures as set forth in Public Contract Code Section 22032 et seq.
C. Public projects of amounts greater than the limit for informal bidding as set forth California Public Contract Code Section 22032(c), as may be amended from time to time, shall, except as otherwise provided in Public Contract Code Section 22032 et seq., be let to contract by formal bidding procedure.
Sec. 3-15.03. - Award of contracts by City Manager.
A. The City Council does hereby delegate to the City Manager, or their designated representative, the authority to award or reject contracts under section 3-15.02 (A) of this chapter.
B. The City Council does hereby delegate to the City Manager, or their designated representative, the authority to award or reject contracts under section 3-15.02(B) of this chapter.
C. The City Council may delegate to the City Manager, or their designated representative, the authority to award or reject contracts under section 3-15.02(C) of this chapter. Delegation of authority pursuant to this subsection (C) shall be through a resolution of the Council.”
…
Sec. 3-15.08. Acceptance of informal bids in excess of $220,000.
If all informal bids received are in excess of two hundred twenty thousand dollars ($220,000), the governing body of the public agency may, by adoption of a resolution by a four-fifths vote, award the contract, at two hundred thirty-five thousand dollars ($235,000) or less, to the lowest responsible bidder, if it determines the cost estimate of the public agency was reasonable.”
Section 3. Amendment. A new section 3-15.11, “Adjustment of dollar amounts to conform to Public Contracts Code” is hereby added to Chapter 15, “Bidding Procedures for Public Projects” of Title 3, “Finance” to read as follows:
“3-15.11 - Adjustment of dollar amounts to conform to Public Contract Code.
If the legislature amends the dollar amounts in Section 22032 of the Public Contract Code, or any successor statute, regarding projects eligible to use informal bid procedures and projects that may be performed by the employees of a public agency by force account, by negotiated contract, or by purchase order, the thresholds referenced in Section 3-15.02 shall be automatically adjusted to conform to the revisions to state law.” Section 4. Compliance with CEQA. The City Council hereby finds that the action to adopt this Ordinance is not subject to the provisions of the California Environmental Quality Act (CEQA), pursuant to the CEQA Guidelines (14 Cal. Code Regs. 15000 et seq.), including without limitation under Section 15061(b)(3) of the CEQA Guidelines because it can be seen with certainty that there is no possibility the adoption of this Ordinance may have a significant effect on the environment.
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Section 5. Severability. If any section, subsection, sentence, clause, or phase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentence, clauses or phrases be declared unconstitutional.
Section 6. Publication. The City Clerk is hereby ordered and directed to certify to the passage of this Ordinance by the City Council of the City of Pacifica, California, and cause the same to be published in accordance with State law.
Section 7. Effective Date. This Ordinance shall be in full force and effective thirty (30) days after its adoption and shall be published and posted as required by law. • • • • •
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 12th day of May, 2025, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
_________________________________
Sue Beckmeyer, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ _________________________________ Sarah Coffey, City Clerk Michelle Kenyon, City Attorney Pacifica City Council 7
May 12, 2025
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(ID # 5931) at 5/12/2025 7:00 PM City Council Regular Meeting