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HomeMy WebLinkAbout17 ORDINANCE 1268 03-17-03AGENDA REPORT Agenda Item Reviewed: City Manager Finance Director 17 MEETING DATE: MARCH 17, 2003 TO: FROM' SUBJECT: WILLIAM A. HUSTON, CITY MANAGER RONALD A. NAULT, FINANCE DIRECTOR RESOLUTION NO. 03-37 ADOPTING UNIFORM CONSTRUCTION COST ACCOUNTING PROCEDURES AND ORDINANCE NO. 1268 ADDING INFORMAL BIDDING SECTIONS TO THE MUNICIPAL CODE SUMMARY: The City staff would like to take advantage of certain efficiencies that are available in the State of California Public Contracts Code, which governs how and when contracts for public projects are to be advertised, bid and awarded, by adopting the Uniform Construction Cost Accounting Procedures (UCCAP). The primary benefit of adopting the UCCAP is the ability to perform minor construction projects up to and including an estimated value $25,000. The current limit is $5,000. Public Works is certain that the City will realize cost effective and efficient use of resources by adopting the cost accounting procedures. RECOMMENDATION: 1. Adopt Resolution No. 03-37 adopting the Uniform Construction Cost Accounting Procedures as set forth in the Public Contracts Code. , Have first reading by title only of Ordinance No. 1268 adding Part 4 to Chapter 6 of the Tustin Municipal Code, authorizing informal bidding for public projects and maintenance work of $100,000 or less. FISCAL IMPACT: Potential cost savings and efficiency by increasing the limit that the City may utilize its force account employees for minor maintenance and construction projects. DISCUSSION: As a General Law City, Tustin is subject to provisions of Sections 20160-20175 of the State of California Public Contracts Code. One of the restrictions of these code sections is the requirement that all Public Works projects with a value of $5,000 or more must be publicly bid. This prevents the City from utilizing its own employees to optimum efficiency as well as necessitating the use of purchasing procedures that for smaller projects are out of proportion to the value of the work being contracted. By adopting the UCCAP, the Public Contracts Code allows the City to utilize its employees ("Force Account") to perform minor construction projects up to and including an estimated value of $25,000. It also will simplify the procedures for bidding Public Works projects of $100,000 or less. In 1983 the Public Contracts Code was amended by the adoption of the Uniform Public Construction Cost Accounting Act. Key elements of the Act include: A Uniform Construction Accounting Commission was established and charged with developing accounting procedures that would apply to public projects, including projects built with an agency's employees as well as those projects contracted out. The Commission's work is in cooperation with the State Controller's Office. Agencies that chose to adopt the UCCAP as developed by the Commission could perform public projects valued up to $25,000 with their own employees or by negotiated contract. · Agencies may follow an informal bid procedure for work with a value between $25,000 and $100,000. · Each agency that chose to become subject to the UCCAP would need to adopt informal bid requirements consistent with the standards set forth by the Commission. The Public Works Director has worked with the UCCAP in other agencies and feels that the increased bidding thresholds better utilized employees and increased the cost efficiency of smaller construction and maintenance projects. The Department Directors will be responsible for the compliance with the expanded bid requirements of the Public Contracts Code once the City adopts the UCCAP. Finance staff has reviewed the UCCAP and feels that we are currently substantially in compliance, but may require staff to do more supplemental time keeping for projects and minor maintenance items. The adoption of Resolution No. 03-37 will notify the State Controller's Office that the City will follow the procedures as detailed in the UCCAP. The adoption of Ordinance No. 1268 will add certain sections to the Municipal Code regarding the use of City employees for work of $25,000 or less and the informal bidding of projects. The Public Works Director and I will be available at the meeting to answer questions that the City Council may have regarding the UCCAP. Ronald A. Nault Finance Director Tim D. Serlet Director of Public Works/City Engineer RAN:ts Attachments RAN:UniformConstructionCostAccountingProceduresStaffReport.doc RESOLUTION NO. 03-37 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, ELECTING TO BECOME SUBJECT TO THE STATE OF CALIFORNIA'S UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING PROCEDURES SET FORTH IN THE UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING ACT (PUBLIC CONTRACT CODE SECTION 22000, ET SEQ.) WHEREAS, prior to the passage of Assembly Bill No. 1666, Chap. 1054, Stats. 1983, which added Chapter 2 commencing with Section 21000 to Part 3 of Division 2 of the Public Contract Code, existing law did not provide a uniform cost accounting standard for construction work performed or contracted by local public agencies; and WHEREAS, these Public Contract Code sections are an alternative method for the bidding of public works contracts up to $100,000.00. WHEREAS, Assembly Bill No. 4350, Chap. 1019, Stats. 1986, renumbered Public Contract Code section 21000 et seq. to be Public Contract Code section 22000 et seq.; and WHEREAS, Public Contract Code Section 22000, et seq., the Uniform Public Construction Cost Accounting Act ("Act"), establishes such a uniform cost accounting standard; and WHEREAS, the California Uniform Construction Cost Accounting Commission ("Commission"), established under the Act, has developed uniform public construction cost accounting procedures for implementation by local public agencies in the performance of or in the contracting for construction of public projects and maintenance work; and WHEREAS, pursuant to the Act, "public project" is defined in relevant part as follows: Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility; (2) Painting or repainting of any publicly owned, leased, or operated facility; WHEREAS, pursuant to the Act "Maintenance Work" includes all of the following: (1) Routine, recurring, and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes; (2) Minor repainting; (3) Resurfacing of streets and highways at less than one inch; (4) Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems; (5) Work performed to keep, operate, and maintain publicly owned water, power, or waste disposal systems, including, but not limited to, dams, reservoirs, power plants, and electrical transmission lines of 230,000 volts and higher. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, finds, determines, and orders as follows: SECTION 1. The City Council of the City of Tustin hereby elects under Public Contract Code Section 22030 to become subject to the uniform public construction cost accounting procedures set forth in the Act for both Public Projects and maintenance work, and to the Commission's policies and procedures manual and cost accounting review procedures, as they may each from time to time be amended. SECTION 2. The City Clerk is hereby directed to (a) notify the State of California Controller in writing of the City of Tustin's election to become subject to the uniform public construction cost accounting procedures and (b) file a copy of this Resolution with the State of California Controller at the following address: Office of the State Controller, Division of Accounting and Reporting, Accounting Policies Section, Post Office Box 942850, Sacramento, California 94250-5875. SECTION 3. This Resolution shall take effect upon its adoption. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin on the 17th day of March, 2003. ATTEST: TRACY WILLS WORLEY, Mayor PAMELA STOKER, City Clerk -2- RESOLUTION CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) RESOLUTION NO. 03-37 Pamela Stoker, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, does hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Resolution was passed and adopted at a regular meeting of the City Council held on the 17th day of March, 2003, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: PAMELA STOKER, City Clerk RES:Resolution03-37.doc -3- ORDINANCE NO. 1268 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, ADDING PART 4 TO CHAPTER 6 OF THE TUSTIN MUNICIPAL CODE AUTHORIZING INFORMAL BIDDING FOR PUBLIC PROJECTS AND MAINTENANCE WORK OF $100,000.00 OR LESS. The City Council of the City of Tustin hereby ordains as follows: SECTION 1. It is the intent of the City Council of the City of Tustin that this ordinance add Part 4, entitled Informal Bidding, to Chapter 6 of the Tustin Municipal Code governing the City's selection of contractors through informal bidding procedures, in accordance with Public Contract Code Section 22000 et seq. SECTION 2. Part 4 of Chapter 6 of the Tustin Municipal Code. Part 4, entitled Informal Bidding, is hereby added to Chapter 6, of the Tustin Municipal Code, which shall read as follows: 1641 1642 1643 1644 1645 1646 1647 1648 1649 1650 Part 4 INFORMAL BIDDING APPLICATION DEFINITIONS WORK OF $25,000 OR LESS INFORMAL BIDDING PROCEDURES CONTRACTORS LIST NOTICE INVITING INFORMAL BIDS MAILING OF NOTICES INVITING INFORMAL BIDS AND PROJECT DESCRIPTION REJECTION OF BIDS/NO BIDS BIDS RECEIVED IN EXCESS OF $100,000.00 AWARD OF CONTRACTS 1641 APPLICATION Contracts for Work of $100,000.00 or less shall be governed by the Uniform Public Construction Cost Accounting Act, Division 2, Part 3, Chapter 2, of the Public Contract Code, Section 22000 et seq. and this part of the Tustin Municipal Code. 1642 DEFINITIONS For purposes of this part, and in accordance with the Uniform Public Construction Cost Accounting Act ("Act") (Public Contract Code Section 22000, et seq.), the terms are defined as follows: Ordinance No. 1268 Page 2 a. "Public Project" means: Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility; or (2) Painting or repainting of any publicly owned, leased, or operated facility. b. "Maintenance Work" means: (1) Routine, recurring, and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes; or (2) Minor repainting; or (3) Resurfacing of streets and highways at less than one inch; or (4) Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems. C. above. "Work" means either a Public Project or Maintenance Work as defined d. "Facility" means any plant, building, structure, ground facility, real property, streets and highways, or other public work improvement. 1643 WORK OF $25,000 OR LESS Pursuant to Public Contract Code Sections 22003 and 22032, any Work as defined herein, of twenty-five thousand dollars ($25,000) or less may be performed by the employees of the City by force account, by negotiated contract, or by purchase order. 1644 INFORMAL BIDDING PROCEDURES Any Work, as defined herein, of one hundred thousand dollars ($100,000.00) or less may be contracted for by the informal bidding procedures set forth in this part. 1645 CONTRACTORS LIST A list of qualified contractors for Public Projects, identified according to categories of work ("Contractors List"), shall be developed and maintained by the City of Tustin Public Works Department in accordance with the minimum criteria determined by the California Uniform Construction Cost Accounting Commission ("Commission"). Ordinance No. 1268 Page 3 1646 NOTICE INVITING INFORMAL BIDS Where Work subject to the provisions of this part is to be performed and the Work does not meet the criteria set forth in Section 1643 herein, or informal bidding is desired, a notice inviting informal bids shall be mailed to all contractors for the category of work to be bid, as shown on the Contractors List, and to all appropriate construction trade journals as specified by the Commission. Additional contractors and/or construction trade journals may be notified at the City's discretion. If there is no Contractors List 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. If the product or service required to be performed is, in the discretion of the City's Director of Public Works, determined to be 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. 1647 MAILING OF NOTICES INVITING INFORMAL BIDS AND PROJECT DESCRIPTION The mailing of notices to contractors and/or construction trade journals pursuant to Section 1646 shall be completed not less than 10 calendar days before bids are due. The notice inviting bids shall: (1) describe the Work in general terms; (2) explain how more detailed information about the proposed Work may be obtained; and (3) state the time, date, and location for the submission of bids. 1648 REJECTION OF BIDS/NO BIDS a. The City's Director of Public Works may, in his or her sole discretion, reject any bids presented. If, after the first invitation of bids, all bids received are rejected, after reevaluating its cost estimates of the project, the City shall have the option of either of the following: (1) The City's Director of Public Works may abandon the project or re- advertise for bids in the manner described in this part; or (2) The City Council may, by passage of a resolution by a four-fifths majority, declare that the project can be performed more economically by its employees; the City may have the project done by force account (i.e., by using internal resources including but not limited to labor, equipment, materials, supplies, and subcontracts of the City), without further compliance with this part. b. If no bids are received, the project may be performed by force account without a City Council resolution or by negotiated contract. Ordinance No. 1268 Page 4 1649 BIDS RECEIVED IN EXCESS OF $100,000.00 If all bids received are in excess of $100,000.00, the City Council may, by passage of a resolution by a four-fifths vote, award the contract for $110,000.00, or less, to the lowest responsible bidder, if the City Council determines that the cost estimate was reasonable. 1650 AWARD OF CONTRACTS Except as specified under Section 1649, dealing with bids in excess of $100,000.00, the City's Director of Public Works is authorized to award or enter into contracts pursuant to the provisions of this part. If informal bidding has been solicited, the City's Director of Public Works shall award the contract to the lowest responsible bidder. If two or more bids are the same and the lowest, the City's Director of Public Works may accept the one he or she chooses. SECTION 3. If any section, subsection, sentence, clause, phrase, or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Tustin hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase, or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. PASSED AND ADOPTED, at a regular meeting of the City Council for the City of Tustin on this 7th day of April, 2003. TRACY WILLS WORLEY, Mayor PAMELA STOKER, City Clerk Ordinance No. 1268 Page 5 ORDINANCE CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF TUSTIN ) ORDINANCE NO. 1268 PAMELA STOKER, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, does hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Ordinance No. 1268 was duly and regularly introduced and read at the regular meeting of the City Council held on the 17th day of March, 2003, and was given its second reading, passed, and adopted at a regular meeting of the City Council held on the 7th day of April, 2003, by the following vote: COUNCILPERSONS AYES: COUNCILPERSONS NOES: COUNCILPERSONS ABSTAINED: COUNCILPERSONS ABSENT: PAMELA STOKER, City Clerk Published: RES:Ordinance1268.doc