STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE AUTHORITY

Introduce and Waive First Reading of Ordinance No. 838 adding to Chapter 8 of Title 7 Municipal Code to provide informal bidding procedures under the Uniform Public Construction Cost Accounting Act.

The Act allows for public project work in the amount of $60,000 or less to be performed by a public agency’s force account using the public agency’s own resources, or by negotiated contract, or by purchase order (Section 22032(a)). Public projects in the amount of $200,000 or less may use the informal or formal bidding procedures set forth in Section 22032(b) or (c) of the Act. Public projects at a cost of more than $200,000 must use formal bidding procedures to let the contract pursuant PCC Section 22032(c).

Many participating agencies appreciate the program because it has given them more leeway in the execution of public works projects under a certain dollar amount; sped up the award process; expedited project delivery; reduced the time, effort, and expense associated with bidding projects under $200,000; and simplified administration for those projects. Few agencies have experienced challenges with the accounting requirements and overhead provisions. Moreover, adjustments, when required, have been relatively simple; most required procedures were already in place, so there were few, if any, major changes to existing operations. The current Standard Accounting Codes Structure satisfies reporting requirements when used properly.

Benefits include:

·         Increased force account limit for public agencies;

·         Simplified bidding for projects that are $200,000 or less;

·         Reduced number of formal bids based on project size; and

·         Expedited contracting for projects under $200,000.

Therefore, staff recommends that Council adopt Ordinance No. 838.

• Do not adopt Ordinance No. 838 (Not Recommended)

While there is no dollar amount specifically tied to this ordinance.  Staff feels that it would generally lower costs of projects that our own staff could perform.  These are tasks that would ordinarily be forced to bid on by outside contractors.