I. RECOMMENDATION:
Adopt a motion approving a letter of support of AB 1786 and further authorize the Mayor to sign and submit the attached letter on behalf of the City of Coalinga.
II. BACKGROUND:
The City has been asked by Townsend Public Affairs to consider submitting a letter of support for AB 1786 (Harabedian). The proposed legislation would extend “best value” construction contracting authority to cities and certain joint powers authorities, creating parity with authority already granted to counties under existing law.
Under current California Public Contract Code requirements, general law cities are typically required to award public works construction contracts to the lowest responsible bidder. While appropriate for many routine projects, this procurement structure can limit flexibility when delivering complex infrastructure projects.
AB 1786 would provide cities with optional authority to use a best value selection process for qualifying projects. Best value contracting allows public agencies to evaluate price alongside objective criteria such as:
The legislation maintains transparency, public bidding requirements, documentation standards, and reporting obligations.
A customizable template letter of support has been provided and tailored for the City of Coalinga (attached). Staff will add additional project info on the letter to strengthen its position.
III. DISCUSSION:
The City of Coalinga regularly undertakes infrastructure projects including water and wastewater improvements, public safety facility upgrades, street and transportation improvements, and park and recreation investments. These projects are often funded through layered financing sources including grants, bond proceeds, and local funds.
In today’s construction environment, characterized by material cost volatility, supply chain constraints, labor shortages, and strict grant timelines, lowest responsible bidder procurement may not always provide the strongest overall project outcome.
Best value contracting can be particularly beneficial when:
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Projects involve complex phasing or technical requirements
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Coordination with utilities, Caltrans, or other outside agencies is required
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There are significant community impacts or public safety considerations
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Grant performance deadlines create schedule sensitivity
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Risk of change orders or claims could significantly increase project costs
The authority proposed in AB 1786 would be optional. The City would retain full discretion to continue using lowest responsible bidder procurement when appropriate. The bill does not eliminate competitive bidding, but instead allows objective qualifications to be evaluated alongside price through a transparent and documented process.
Counties already possess this authority. AB 1786 would provide cities with parity and an additional tool to improve project delivery outcomes and safeguard public funds.
IV. ALTERNATIVES:
- Do not authorize the Mayor to sign the attached letter of support.
V. FISCAL IMPACT:
No fiscal impact based in this action. |