February 1, 2022, Item #4
City of Poway
CITY COUNCIL
DATE: February 1, 2022
TO:
FROM:
Honorable Mayor and Members of the City Council
Aaron Beanan, Director of Finance ;{b t \
Eric Heidemann, Director of Public Works f J,rl
CONTACT:
SUBJECT:
Summary:
Will Wiley, Assistant Director of Public Works for Maintenance OperationcAfi'/ (858) 668-4705 or [email protected] "'r
Electing to Become Subject to the California Uniform Public Construction Cost Accounting Procedures of the Public Contract Code and Amending Poway Municipal Code, Title 3 (Revenue and Finance), Chapter 3.28 to Provide Informal Bidding Procedures for Public Projects Pursuant to the California Uniform Public Construction Cost Accounting Act
The California Uniform Public Construction Cost Accounting Act (CUPCCAA) was enacted in 1983 to promote uniformity on bidding procedures and accounting standards for public works projects performed by contract or by staff. CUPCCAA provides greater flexibility and efficiency in the award and execution of public works projects. Staff recommends the City Council adopt a resolution (Attachment A) electing to become subject to the CUPCCAA's bidding procedures for public works projects. The proposed Ordinance (Attachment B) implements bidding procedures to align with CUPCCAA. The Ordinance amends four sections of Chapter 3.28 of the Poway Municipal Code (PMC):
3.28.060 (Formal bidding procedures -public works projects}, 3.28.070 (Formal bidding procedure},
3.28.110 (Cooperative purchasing}, 3.28.120 (Award and execution of contracts}, and amends Chapter
3.28 by adding one new section, 3.28.150 (Informal bid procedures under the CUPCCAA).
Recommended Action:
It is recommended that the City Council:
1. Adopt a Resolution pursuant to the provisions of Public Contract Code Section 22030, the City of Poway will voluntarily become subject to the California Uniform Public Construction Cost Accounting Procedures; and
2. Introduce an Ordinance to amend Sections 3.28.060, 3.28.070, 3.28.110, 3.28.120 and add Section 3.28.150 to Chapter 3 of the PMC to implement an informal bid process for public projects for first reading by title only, waive further reading and schedule the adoption of the Ordinance for February 15, 2022.
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February 1, 2022, Item #4
Discussion:
California Public Contract Code requires general law cities to competitively bid public works contracts for all public projects over $5,000 and award the work to the lowest responsible bidder. A public works project is defined as construction, alteration, demolition, installation, or repair work done under contract and paid in whole or in part out of public funds. In 1983, the California Legislature adopted informal bidding procedures via CUPCCAA to promote uniformity in bidding procedures and accounting standards for public works projects performed by contract or by an agency's staff.
Approximately 280 cities utilize CUPCCAA standards to perform public works projects, including 11 cities in San Diego County (Carlsbad, Coronado, Del Mar, Encinitas, Escondido, Imperial Beach, Lemon Grove, La Mesa, Oceanside, Solana Beach, and Vista). Procurement methods contained in CUPCCAA provide greater flexibility in the award and execution of public works projects, resulting in improved timelines of project completion, cost savings and simplified administration.
In lieu of the $5,000 threshold for the general bidding requirements, CUPCCAA provides informal bidding procedures for public works contracts that are less than $200,000. Key provisions of CU PC CAA are:
1. Level 1 Projects: Public projects of $60,000 or less may be performed by City employees or may be awarded by negotiated contract or purchase order without competitive bidding.
2. Level 2 Projects: Public projects of $200,000 or less may be awarded by informal bidding procedures (minimum of three quotes). The City is required to develop and maintain a contractor's list and send notices to all contractors from the applicable category of work to be bid, provide notices in construction trade journals or both.
3. Level 3 Projects: Public projects of more than $200,000 are required to be awarded by formal bidding procedures.
The City is required to adopt a resolution electing to be subject to CUPCCAA's terms (Attachment A) and is required to adopt an ordinance implementing CUPCCAA's informal bid procedures (Attachment B). The following summarizes the amendments to Chapter 3.28 of the PMC incorporating the necessary changes to implement and align the informal bidding procedures provided by CUPCCAA.
Informal Bid Procedures: The Ordinance adds Section 3.28.150 to Chapter 3.28, which provides that public projects of $60,000 or less may be awarded without competitive bidding or performed by City staff. This section also increases the dollar amount for which the City Council is required to award contracts for public works projects from $5,000 to $60,000.
For public projects greater than $60,000 but less than or equal to $200,000, Section 3.28.150 establishes informal competitive bidding procedures (minimum three quotes). This section further requires the City to maintain a list of qualified contractors identified by category of work (e.g., electrician, plumbing, masonry, etc.), and stipulates that notices inviting informal bids for these projects be sent to the respective contractors on the qualified contractor's list and to specified construction trade journals at least 1 O days in advance of a bid due date. The qualified contractor's list will be developed and updated by the Public Works Department; contractors will be notified annually to apply through the Public Works Department webpage. Resulting contracts must be awarded by the City Council.
Lastly, for all public projects more than $200,000 a formal competitive bidding will still be required, and the contract must be awarded by the City Council to the lowest responsible bidder, like the formal bidding procedures currently used by the City. The Ordinance also establishes guidelines for unique 2 of 11
February 1, 2022, Item #4
situations,
such
as
when
all
bids
exceed
the
estimated
amount
of
the
project
or
when
two
or
more
bids
are
identical.
The
Ordinance
provides
that
the
City
Manager
is
authorized
to
award contracts
for
public
projects
less
than
$60,000,
with
all
other
projects
going
to
the
City
Council
for
award.
Formal
Bidding
Procedures:
Section
3.28.060
and
3.28.070
amends
the
formal
bidding
procedure
and
dollar
threshold
for
which
the
City
administers
public
projects
from
$5,000
to
the
dollar
thresholds
and
procedures
provided
for
CUPCCAA.
Cooperative
Purchasing:
Section
3.28.11 O
eliminates
the
requirement
of
only
allowing
purchases
from
agencies
within
the
state
that
have
awarded
contracts
through
a
cooperative
purchasing
group
(U.S.
Communities,
Sourcewell,
Omnia
Partners,
etc.)
to
also
include
those
agencies
outside
the
state
for
specific
procurements,
such
as
heavy
or
unique
equipment
and/or
services
to avail
itself
to
a more
cost
effective
and
comprehensive
market.
This
section
also
allows
the
City
to
purchase
directly
off
a
contract
awarded
by
a public
agency
within
the
State
not
organized
through
a cooperative
purchasing
group,
a
procurement
method
known
as
piggybacking.
Award
and
Execution
of
Contracts:
Section
3.28.120
increases
the
dollar
amount
of
contracts
for
supplies,
services,
and
equipment
that
is
to
be
awarded
by
the
City
Council
from
$50,000
or
more
to
$60,000
or
more.
Additionally,
the
Ordinance
amendment
increases
the
City
Manager's
contract
authority
from
an
amount
less
than
$50,000
to
an
amount
less
than
$60,000,
for
supplies,
services
and
equipment.
Any
contract
$60,000
or
more
must
be
awarded
by
the
City
Council.
The
increased
contract
limits
are
provided
to
be
consistent
with
the
informal
bid
procedures
outlined
by
CUPCCAA
and
provided
in
Section
3.28.150,
above.
Attached
for
the
Council's
consideration
is
a
resolution
and
ordinance
electing
and
implementing
CUPCCAA's
informal
bidding
procedures.
The
new
procedures
will
give
the
City
more
flexibility
to
address
smaller
scale
public
works
projects
and
enable
staff
to
complete
these
projects
more
promptly.
For
larger projects
($60,000-$200,000),
the
revised
procedures
will
allow
the
City
to
utilize
informal
bidding
procedures
to
solicit
competitive
bids
more
quickly
while
still
streamlining
the
public
works
procurement
process.
Finally,
for
large
public
projects
(>$200,000),
the
City's
procedures
will
be
the
same
as
those
currently
utilized
by
the
City.
Environmental
Review:
This
action
is
not
subject
to
review
under
the
California
Environmental
Quality
Act
(CEQA).
Fiscal
Impact:
Informal
bidding
has
lower
administrative
and
supply
costs
than
formal
bidding
does.
As
such,
staff
anticipates
minor
cost
savings
from
adopting
the
Act.
These
cost
savings
cannot
be
quantified
because
they
will
vary
based
on
the
number
of
projects
that
qualify
for
informal
bidding.
Further,
staff
also
anticipates
productivity
savings
from
spending
less
time
managing
the
formal
bid
process
which
will
allow
staff
more
time
to
focus
on
other
projects
for
the
City.
Public
Notification:
None. 3
of
11 February 1, 2022, Item #4
Attachments:
A. Resolution
B. Ordinance
Reviewed/Approved By:
Wendy Kaserman
Assistant City Manager
4 of 11
Reviewed By:
Alan Fenstermacher
City Attorney
February 1, 2022, Item #4
RESOLUTION NO. 22-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
POWAY, CALIFORNIA, ELECTING TO BECOME SUBJECT TO
THE UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING
PROCEDURES OF THE PUBLIC CONTRACT CODE
WHEREAS, local agencies must competitively bid all public projects (as defined by Sections 20161 of the California Public Contract Code) in excess of $5,000 in accordance with the requirements applicable to cities set forth in the Public Contract Code, commencing with Section 20160;
WHEREAS, in 1983, the California Legislature adopted Assembly Bill 1666 which added Chapter 2, commencing with Section 22000, to Part 3 of Division 2 of the California Public Contract Code, which provides for a uniform cost accounting standard for construction work performed or contracted by local agencies and further provides for an alternative method for bidding public projects;
WHEREAS, California Public Contract Code Section 22030 provides that any city that wishes to avail itself of the alternative procedures for bidding and contracting for public projects must elect, by resolution, to become subject to the uniform construction cost accounting procedures set forth in the Public Contract Code and must notify the State Controller of its election;
WHEREAS, the City desires to become subject to the uniform construction cost accounting procedures set forth in the Public Contract Code, commencing with Section 22000; WHEREAS, California Public Contract Code Section 22034 requires each public agency that elects to become subject to the uniform construction cost accounting procedures to enact an informal bidding ordinance that complies with the requirements set forth in said Section 22034; and
WHEREAS, the City Council has introduced Ordinance No. __ which enacts procedures governing public works contracts and establishes, among other things, informal bidding procedures in accordance with the requirements of Section 22034 of the Public Contract Code.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows:
SECTION 1: The City Council hereby elects under Public Contract Code Section 22030 to become subject to the uniform construction cost accounting procedures set forth in the Uniform Public Construction Cost Accounting Act, commencing with California Public Contract Code Section 22000 or any successor statute, and to the policies and procedures manual and cost accounting review procedures promulgated by the California Uniform Construction Cost Accounting Commission, as each may be amended from time to time.
SECTION 2: The City Clerk is hereby directed to notify the State Controller of the City Council's election to become subject to the uniform construction cost accounting procedures by transmitting a certified copy of this resolution forthwith. 5 of 11 ATTACHMENT A
February 1, 2022, Item #4
Resolution No. 21-
PASSED, ADOPTED AND APPROVED at a regular Meeting of the City Council of the City of Poway, California on the 1st day of February, 2022 by the following vote, to wit:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
Steve Vaus, Mayor
ATTEST:
Carrie Gallagher, CMC, City Clerk
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February 1, 2022, Item #4
ORDINANCE
NO.
AN
ORDINANCE
OF
THE
CITY
COUNCIL
OF
THE
CITY
OF
POWAY,
CALIFORNIA,
AMENDING
SECTIONS
3.28.060,
3.28.070, 3.28.110,
3.28.120
AND
ADDING
3.28.150
TO
CHAPTER
3.28 (PURCHASING)
OF
THE
POWAY
MUNICIPAL
CODE
WHEREAS,
Chapter
3.28 of
the
Poway
Municipal
Code
("PMC")
establishes
procedures
for
the
purchase
of
supplies,
equipment,
materials
and
services;
WHEREAS,
the
City
Council
of
the
City
of
Poway
is
currently
required
by
the
California
Public
Contract Code
to
competitively
bid
all
Public
Projects
in
excess
of
$5,000;
WHEREAS,
Public
Contract
Code,
Sections
22032,
et.
seq.
set
forth
informal
bidding
procedures
for
public
projects
over
$60,000
and
up
to
$200,000
upon
adoption
by
a
public
agency
of
the
California
Uniform
Public
Construction
Cost
Accounting
Act
("CUPCCAA")
procedures;
WHEREAS,
the
City
Council
has
determined
that
it
is
in
the
best
interest
of
the
City
of
Poway
to
adopt
these
procedures
for
informal
bidding
of
public
projects
in
accordance
with
CUPCCAA;
and
WHEREAS,
the
City
seeks
additional
Ordinance
amendments
to
four
sections
and
seeks
to
add
one
section
to
reflect
changes
in
procedures pursuant
to
the
adoption
of
CUPCCAA
and
subsequent
changes
in
purchasing
procedures.
NOW,
THEREFORE,
THE
CITY
COUNCIL
OF
THE
CITY
OF
POWAY
DOES
ORDAIN
AS
FOLLOWS:
SECTION
1:
The
above
recitations
are
true
and
correct.
SECTION
2:
The
City
Council
hereby
approves
this
Ordinance
and
amends
Sections
3.28.060,
3.28.070,
3.28110,
3.28.120
and
adds
Section
3.28.150
to
Chapter
3.28 of
the
PMC
as
specified
below.
Removals
are
indicated
with
strikethrough
and
additions
are
indicated
with
underline.
SECTION
3:
Section
3.28.060
of
the
Poway
Municipal
Code
is
hereby
amended
as
follows:
3.28.060
Formal
bidding
procedures
-
Public
works
projects
Contracts
for
public
projects
shall
be
administered
in
the
manner
provided
by
Section
2-04W
22032
et.
seq.
of
the Public
Contracts
Code
as
may
be
amended
from
time
to
time.
(Ord.
55 §
6,
1992)
SECTION
4:
Section
3.28.070
of
the
Poway
Municipal
Code
is
hereby
amended
as
follows:
3.28.070
Formal
bidding
procedure.
7 of
11 ATTACHMENT
B
February 1, 2022, Item #4
8 of 11
Except as otherwise provided in this chapter, any purchase which exceeds $50,000 $60,000 in value for supplies, services, and equipment, or the amount established by Public Contracts Code Section ~ 22032 and succeeding amendments for contracts on public works projects, will be by formal bid.
A. Notices inviting sealed bids shall be published at least twice, not less than five days apart, the first time being 10 days before the date of the opening of the bids, in a newspaper of general circulation in the City, or they shall be posted in at least three places in the City that have been designated by ordinance as the places for posting public notices.
B. Notices inviting bids shall include a general description of the articles to be purchased, where bid forms and specifications may be obtained, and the time, date and place for the opening of bids.
C. When deemed necessary by the Director of Finance, bidder's security may be prescribed in the public notice inviting bids. Bidders shall be entitled to return of bid security; provided, however, that a successful bidder shall forfeit the bid security upon the bidder's refusal or failure to execute the contract within 10 days after the notice of award of contract has been mailed. The City Council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the City Council awards the contract to the next lowest bidder, the amount of the lowest bidder's security shall be applied by the City to the contract price differential between the lowest bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. If the City Council rejects all bids presented, due to the failure of the successful bidder to execute the contract, and readvertises, the amount of the lowest bidder's security may be used to offset the cost of receiving new bids and the surplus, if any, shall be returned to the lowest bidder.
D. Sealed bids together with bidder's security shall be submitted to the Director of Finance or designee. The bid shall be so identified on the envelope. Bids shall be opened in public at the date, time and place stated in the public notices inviting the bids. Any bid received after the scheduled time of the bid opening shall be returned to the bidder unopened. A tabulation of all bids received shall be available for public inspection during regular business hours for a period of not less than 30 calendar days after the bid opening.
E. At its sole discretion, the City Council may reject any and all bids presented and readvertise for bids pursuant to the procedure prescribed above. In the event no bids are received or, all bids are rejected, the City Council may, in accordance with Public Contracts Code Section 20167, and any amendments thereto, direct the Director of Finance or designee to proceed pursuant to paragraphs relating to open market procedure or competitive negotiations.
F. If two or more bids received are for the same total amount or unit price, quality and service being equal, the City Council may at its discretion accept the bid it chooses with or without further negotiations with the tie bidders.
G. The City shall have authority to require performance and labor and materials security before entering a contract in such amount as it finds reasonably necessary to protect the best interests of the City. If the City requires security, the form and the amount of the security shall be described in the notice inviting bids. The notice inviting bids may February 1, 2022, Item #4
provide that security may be posted in the form of a surety bond, a letter of credit drawn on an institution located in San Diego County and approved by the City Attorney, or a cash deposit. (Ord. 811 § 7, 2017; Ord. 675 § 6, 2008; Ord. 260 §§ 1, 3, 1988; Ord. 188 § 1, 1986; Ord. 55 § 7, 1982)
SECTION 5: Section 3.28.110 of the Poway Municipal Code is hereby amended as follows:
3.28.110 Cooperative purchasing.
Purchase of supplies, services and equipment by contract, arrangement and agreement for the cooperative purchasing programs with the State, the County and any other public or municipal corporation of the State may be made by the Director of Finance when the administering agency has made their purchase in a competitive manner. In addition, the City Council. City Manager. or purchasing agent at their prescribed authorization levels. may buy directly from a vendor at a price established by another public agency of the State when the other public agency has made its purchase in a competitive manner. (Ord. 811 § 8, 2017; Ord. 675 § 9, 2008; Ord. 260 § 1, 1988; Ord. 55 § 11, 1982) SECTION 6: Section 3.28.120 of the Poway Municipal Code is hereby amended as follows:
3.28.120 Award and execution of contracts.
Except in emergency situations, all contracts for supplies, services and equipment in an estimated amount of $50,000 $60,000 or more and public works projects in an estimated amount of $5,000 $60,000 or more shall be awarded by the City Council. Contracts for supplies, services.I. aoo equipment and public projects pursuant to the processes set forth in 3.28.150 in an amount less than $50,000 $60,000 shall be executed by the City Manager or the City Manager's designee. No contract shall be approved by the City Council or City Manager unless the expenditure is consistent with the City's adopted budget. (Ord. 675 § 10, 2008; Ord. 55 § 12, 1982)
SECTION 7: Article Ill of the Poway Municipal Code is hereby amended to include the addition of 3.28.150 as follows:
3.28.150 Informal bid procedures under the California Uniform Public Construction Cost Accounting Act.
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A. Informal Bid Procedures. A public works construction project as defined in Section 20161 of the Public Contract Code may be performed by contract acquired by informal procedures as set forth in Section 22032, et seq., of the Public Contract Code.
B. Contractors List. A list of contractors shall be developed and maintained in accordance with the provisions of Section 22034 of the Public Contract Code and criteria promulgated from time to time by the California Uniform Construction Cost Accounting Commission. Such list will be maintained by the public works director or designee.
C. Notice Inviting Bids. When a public works construction project is to be performed which is subject to the provisions of this section, a notice inviting informal bids shall be mailed to all contractors for the category of work to be bid, as shown on the list February 1, 2022, Item #4
developed
in
accordance
with
subsection
B.
of
this
section,
and
to
all
construction
trade
journals
as
specified
by
the
California
Uniform
Public
Construction
Cost
Accounting
Commission
in
accordance
with
Section
22036
of
the
Public
Contract
Code.
Additional
contractors
and/or
construction
trade
journals
may
be
notified
at
the
discretion
of
the
public
works
director:
provided
however:
1. If there
is
no
list
of
qualified
contractors
maintained
by
the
public
works
director
for
the
particular
category
of
work
to
be
performed,
the
notice
inviting
bids
shall
be
sent
only
to
the
construction
trade
journals
specified
by
the
commission.
2. If the
producer
or
service
is
proprietary
in
nature
such
that
it can
be
obtained
only
from
a
certain
contractor
or
contractors,
the
notice
inviting
informal
bids
may
be
sent
exclusively
to
such
contractor
or
contractors.
D.
Award
of
Contract.
Award
of
contract
to
the
successful
responsive,
responsible
low
bidder
will
be
executed
in
accordance
with
this
chapter.
SECTION
8:
This
Ordinance
shall
be
codified.
EFFECTIVE
DA
TE:
This
Ordinance
shall
take
effect
and
be
in
force
thirty
(30)
days
after
its
adoption.
CERTIFICATION/PUBLICATION:
The
City
Clerk
shall
certify
the
adoption
of
this
Ordinance
and
cause
it
or
a
summary
of
it,
to
be
published
with
the
names
of
the
City
Council
members
voting
for
and
against
the
same
in
the
Poway
News
Chieftain,
a
newspaper
of
general
circulation
in
the
City
of
Poway
within
fifteen
(15)
days
after
its
adoption
and
shall
post
a
certified
copy
of
this
Ordinance
in
the
Office
of
the
City
Clerk
in
accordance
with
Government
Code
§
36933. 10
of
11 February 1, 2022, Item #4
INTRODUCED
AND
FIRST
READ
at
a
Regular
Meeting
of
the
City
Council
of
the
City
of
Poway,
California,
held
the
1st
day
of
February,
2022,
and
thereafter
.
PASSED
AND
ADOPTED
at
a
Regular
Meeting
of
said
City
Council
held
the
15th
day
of
February,
2022,
by
the
following
vote,
to
wit:
AYES: NOES: ABSENT: DISQUALIFIED:
Steve
Vaus,
Mayor
ATTEST
:
Carrie
Gallagher,
CMC,
City
Clerk
11 of
11