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12-11-2018 CC Rpt 26COUNCIL AGENDA STAFF REPORTCOUNCIL AGENDA STAFF REPORT TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS DATE: DECEMBER 11, 2018 FROM: CITY MANAGER ITEM NO:26 SUBJECT:INCREASE OF INFORMAL PUBLIC CONTRACTS LIMITS RECOMMENDATION: 1. Introduce an Ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHINO HILLS, CALIFORNIA, AMENDING CHAPTER 3.20 OF THE CHINO HILLS MUNICIPAL CODE TO INCREASE THE INFORMAL BID LIMITS FOR PUBLIC CONTRACTS AWARDED PURSUANT TO CHAPTER 3.20 TO $200,000, AND AUTHORIZE THE CITY MANAGER TO AWARD SUCH CONTRACTS IN AN AMOUNT NOT TO EXCEED $200,000 AND AMEND THE AUTHORITY TO NEGOTIATE CONTRACTS, AWARD PURCHASE ORDERS OR PERFORM WORK BY CITY EMPLOYEES BY FORCE ACCOUNT ON PUBLIC PROJECTS IN AN AMOUNT NOT TO EXCEED $60,000. 2. Adopt a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO HILLS, CALIFORNIA, DELEGATING AUTHORITY TO THE CITY MANAGER TO AWARD INFORMAL PUBLIC CONTRACTS IN AN AMOUNT OF $200,000 OR LESS AND AMEND THE AUTHORITY TO NEGOTIATE CONTRACTS, AWARD PURCHASE ORDERS OR PERFORM WORK BY CITY EMPLOYEES BY FORCE ACCOUNT ON PUBLIC PROJECTS IN AN AMOUNT NOT TO EXCEED $60,000. BACKGROUND/ANALYSIS: The California Uniform Public Construction Cost Accounting Act (CUPCCAA) specified the thresholds for informal bidding procedures for public projects which are in the amount of $175,000 or less. Further, the CUPCCAA specified the threshold for public projects performed by negotiated contract, by purchase order, or by force account to be at a maximum limit of $45,000. Assembly Bill 2249 was signed by the Governor on August 20, 2018, and the Legislature amended the CUPCCAA state law to raise the threshold for informal bidding procedures for public projects to $200,000, and the threshold for public projects performed by negotiated contract, by purchase order, or by force account to $60,000 or less effective January 1, 2019. Proposed Ordinance The existing Chino Hills Municipal Code, Chapter 3.20, establishes informal bidding procedures for public projects and adopts a threshold of not more than $175,000 for such contracts. The threshold for public projects performed by negotiated contract, by purchase order, or by force account is $45,000. The proposed Ordinance, if approved, will amend Chapter 3.20 to increase the limit to not exceed $200,000 for public projects and to permit public projects of $60,000 or less to be performed by City employees by force account, by negotiated contract, or by purchase order. 285/296 Additionally, the Ordinance will amend the chapter to delegate authority to award informally bid contracts to the City Manager or designee by separate resolution of the City Council in an amount not to exceed $200,000. Proposed Resolution To Modify City Manager's Delegated Authority Existing Resolution No. 2014R-14 delegates authority to the City Manager to award informally bid public project contracts in an amount of $175,000 or less and authorizes public projects, which do not exceed $45,000, to be performed by City employees by force account, by negotiated contract or by purchase order. The proposed Resolution, if approved, will increase the informal bid limit to $200,000. The resolution will also increase the limit to $60,000 for projects to be performed by force account, by negotiated contract or by purchase order. These limits, if approved, will take effect on thirty days after the ordinance is adopted. ENVIRONMENTAL (CEQA) REVIEW: This proposed action is exempt from review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and CEQA Guidelines (Title 14 California Code of Regulations §§ 15000, et seq.), because it does not involve any commitment to a specific project which could result in a potentially significant physical impact on the environment; and, constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Accordingly, this action does not constitute a "project" that requires environmental review (see specifically 14 CCR §15378(b)(4-5)). FISCAL IMPACT: There is no fiscal impact for this agenda item. REVIEWED BY OTHERS: This agenda item has been reviewed by the City Attorney. Respectfully Submitted,Recommended By: Attachments Assembly Bill 2249 Ordinance Resolution 286/296 Assembly Bill No. 2249 CHAPTER 169 An act to amend Sections 22020, 22032, and 22034 of the Public Contract Code, relating to public contracts. [Approved by Governor August 20, 2018. Filed with Secretary of State August 20, 2018.] legislative counsel’s digest AB 2249, Cooley. Public contracts: local agencies: alternative procedure. The Uniform Public Construction Cost Accounting Act authorizes a public agency, whose governing board has by resolution elected, to become subject to uniform construction cost accounting procedures. Existing law declares that these procedures promote statewide uniformity of the cost accounting standards and bidding procedures on construction work performed or contracted by public entities. The act defines “public agency” as a city, county, city and county, including chartered cities and chartered counties, any special district, and any other agency of the state for the local performance of governmental or proprietary functions within limited boundaries, and also includes a nonprofit transit corporation wholly owned by a public agency and formed to carry out the purposes of the public agency. The act authorizes public projects of $45,000 or less to be performed by the employees of a public agency, authorizes public projects of $175,000 or less to be let to contract by informal procedures, and requires public projects of more than $175,000 to be let to contract by formal bidding procedures. The act permits the governing body of a public agency, in the event all bids received for the performance of that public project are in excess of $175,000, to award the contract at $187,500 or less to the lowest responsible bidder if it determines the cost estimate of the public agency was reasonable. This bill would instead authorize public projects of $60,000 or less to be performed by the employees of a public agency, authorize public projects of $200,000 or less to be let to contract by informal procedures, and require public projects of more than $200,000 to be let to contract by formal bidding procedures. The bill would permit the governing body of a public agency, in the event all bids received for the performance of that public project are in excess of $200,000, to award the contract at $212,500 or less to the lowest responsible bidder if it determines the cost estimate of the public agency was reasonable. The act creates the California Uniform Construction Cost Accounting Commission. The commission is required to consider whether there have been material changes in public construction costs and to make recommendations to the Controller regarding adjustments in the monetary limits described above that determine which bidding procedures shall apply 96 287/296 to public projects. The act requires any adjustment to be effective beginning with the fiscal year which commences not less than 60 days following the Controller’s notification of the adjustment to all public agencies. This bill would, instead, require the Controller to notify only the participating public agencies of the adjustment prior to the adjustment taking effect. The people of the State of California do enact as follows: SECTION 1. Section 22020 of the Public Contract Code is amended to read: 22020. In accordance with procedures and standards adopted pursuant to Section 22017, every five years the commission shall consider whether there have been material changes in public construction costs and make recommendations to the Controller regarding adjustments in the monetary limits prescribed by Section 22032, but in no case shall the amount, as adjusted, be less than fifteen thousand dollars ($15,000). The Controller shall notify all participating public agencies of the adjustment prior to the effective date. That notification shall also describe the provisions of this chapter and the benefits of using its provisions. SEC. 2. Section 22032 of the Public Contract Code is amended to read: 22032. (a)  Public projects of sixty thousand dollars ($60,000) or less may be performed by the employees of a public agency by force account, by negotiated contract, or by purchase order. (b)Public projects of two hundred thousand dollars ($200,000) or less may be let to contract by informal procedures as set forth in this article. (c)Public projects of more than two hundred thousand dollars ($200,000) shall, except as otherwise provided in this article, be let to contract by formal bidding procedure. SEC. 3. Section 22034 of the Public Contract Code is amended to read: 22034. Each public agency that elects to become subject to the uniform construction accounting procedures set forth in Article 2 (commencing with Section 22010) shall enact an informal bidding ordinance to govern the selection of contractors to perform public projects pursuant to subdivision (b) of Section 22032. The ordinance shall include all of the following: (a)Notice to contractors shall be provided in accordance with either paragraph (1) or (2), or both. (1)The public agency shall maintain a list of qualified contractors, identified according to categories of work. Minimum criteria for development and maintenance of the contractors list shall be determined by the commission. All contractors on the list for the category of work being bid shall be mailed, faxed, or emailed a notice inviting informal bids unless the product or service is proprietary. All mailing of notices to contractors pursuant to this subdivision shall be completed not less than 10 calendar days before bids are due. 96 — 2 —Ch. 169 288/296 (2)The public agency may elect to mail, fax, or email a notice inviting informal bids to all construction trade journals specified in Section 22036. (b)The notice inviting informal bids shall describe the project in general terms and how to obtain more detailed information about the project, and state the time and place for the submission of bids. (c)The governing body of the public agency may delegate the authority to award informal contracts to the public works director, general manager, purchasing agent, or other appropriate person. (d)If all bids received are in excess of two hundred thousand dollars ($200,000), the governing body of the public agency may, by adoption of a resolution by a four-fifths vote, award the contract, at two hundred twelve thousand five hundred dollars ($212,500) or less, to the lowest responsible bidder, if it determines the cost estimate of the public agency was reasonable. O 96 Ch. 169— 3 — 289/296 Page 1 of 4 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHINO HILLS, CALIFORNIA, AMENDING CHAPTER 3.20 OF THE CHINO HILLS MUNICIPAL CODE TO INCREASE THE INFORMAL BID LIMITS FOR PUBLIC CONTRACTS AWARDED PURSUANT TO CHAPTER 3.20 TO $200,000, AND AUTHORIZE THE CITY MANAGER TO AWARD SUCH CONTRACTS IN AN AMOUNT NOT-TO-EXCEED $200,000 AND AMEND THE AUTHORITY TO NEGOTIATE CONTRACTS, AWARD PURCHASE ORDERS OR PERFORM WORK BY CITY EMPLOYEES BY FORCE ACCOUNT ON PUBLIC PROJECTS IN AN AMOUNT NOT- TO-EXCEED $60,000 THE CITY COUNCIL OF THE CITY OF CHINO HILLS DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. The City Council does hereby make the following findings of fact: a. The City Council of the City of Chino Hills declares that the public interest and necessity demand the prudent expenditure of public money and time; and b. The California Uniform Public Construction Cost Accounting Act, Public Contracts Code Section 22000 through 22045 (UPCCAA), has been amended so that the threshold for public projects let to contract by informal procedures has increased from $175,000 to $200,000; and c. The CUPCCAA has been amended so that the authority to negotiate contracts, award purchase orders or perform work by City employees by force account on public projects has been increased from $45,000 to $60,000; and d. In accordance with the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq. ("CEQA")) and CEQA regulations (14 California Code of Regulations §§ 15000, et seq.), this proposed Chino Hills Municipal Code Amendment is exempt from CEQA review because it consists only of minor revisions and clarifications to existing regulations and specification of procedures related thereto; and consists of actions taken to assure the maintenance, protection and enhancement of the environment. This ordinance, therefore, does not have the potential to cause significant effects on the environment. Consequently, it is categorically exempt from further CEQA review under 14 Cal. Code Regs. § 15308; and e. A duly noticed public hearing before the City Council was conducted on December 11, 2018, on this Chino Hills Municipal Code Amendment, at which 290/296 Page 2 of 4 time all interested persons were given an opportunity to testify in support of, or in opposition to the project. SECTION 2. Chino Hills Municipal Code, Section 3.20.010 is hereby amended to read as follows: 3.20.010 — Construction on public projects. The provisions of this chapter shall apply to construction on public projects of not more than two hundred thousand dollars ($200,000). Public projects of sixty thousand dollars ($60,000) or less may be performed by city employees by force account, by negotiated contract, or by purchase order. Public projects of two hundred thousand dollars ($200,000) or less may be let to contract by informal procedures as set forth in this chapter. Public projects of more than two hundred thousand ($200,000) shall be let to contract by formal bidding procedures. SECTION 3. Chino Hills Municipal Code, Section 3.20.050 is hereby amended to read as follows: 3.20.050 — Delegation of authority to award informally bid public projects contracts. Notwithstanding any other provision of this Code, the City Council may delegate the authority to award informally bid contracts pursuant to this Chapter to the City Manager or designee, by separate resolution of the City Council in an amount not to exceed two hundred thousand dollars ($200,000). SECTION 4. The provisions hereof shall supersede any inconsistent or conflicting provisions of the San Bernardino County Code as the same were adopted by reference by City Ordinance No. 271. SECTION 5. If any part of this ordinance or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Ordinance are severable. SECTION 6. This Ordinance must be broadly construed in order to achieve the purposes stated in this Ordinance. It is the City Council's intent that the provisions of this Ordinance be interpreted or implemented by the City and others in a manner that facilitates the purposes set forth in this Ordinance. SECTION 7. Repeal of any provision of the Chino Hills Municipal Code does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before, this Ordinance's effective date. Any such repealed part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Ordinance. 291/296 Page 3 of 4 SECTION 8. If this entire Ordinance or its application is deemed invalid by a court of competent jurisdiction, any repeal or amendment of the Chino Hills Municipal Code or other City Ordinance by this Ordinance will be rendered void and cause such previous Chino Hills Municipal Code provision or other City Ordinances to remain in full force and effect for all purposes. SECTION 9. The City Clerk is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City of Chino Hills' book of original Ordinances; make a note of the passage and adoption in the records of this meeting; and, within fifteen (15) days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law. SECTION 10. This Ordinance will take effect on the 30th day following its final passage and adoption. PASSED, APPROVED AND ADOPTED this day of 2019. _________________________________ CYNTHIA MORAN, MAYOR ATTEST: _________________________________ CHERYL BALZ, CITY CLERK APPROVED AS TO FORM: ________________________________ MARK D. HENSLEY, CITY ATTORNEY 292/296 Page 4 of 4 STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss CITY OF CHINO HILLS ) I, CHERYL BALZ, City Clerk of the City of Chino Hills, DO HEREBY CERTIFY that Ordinance No. _______ was duly introduced at a regular meeting held ___________; and adopted at a regular meeting of the City Council held on the _____ day of _________ 2019 by the following vote, to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: _____________________________________ CHERYL BALZ, CITY CLERK I hereby certify that the foregoing is the original of Ordinance No. _____ duly passed and adopted by the Chino Hills City Council at their regular meeting held on _________ and that summaries of the Ordinance were published on __________ and __________ in the Chino Hills Champion newspaper. _____________________________________ CHERYL BALZ, CITY CLERK 293/296 1 of 3 RESOLUTION NO. 2018R- _____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO HILLS, CALIFORNIA, DELEGATING AUTHORITY TO THE CITY MANAGER TO AWARD INFORMAL PUBLIC CONTRACTS IN AN AMOUNT OF $200,000 OR LESS AND AMEND THE AUTHORITY TO NEGOTIATE CONTRACTS, AWARD PURCHASE ORDERS OR PERFORM WORK BY CITY EMPLOYEES BY FORCE ACCOUNT ON PUBLIC PROJECT IN AN AMOUNT NOT TO EXCEED $60,000 WHEREAS, the City Council of the City of Chino Hills declares that the public interest and necessity demand the prudent expenditure of public money; and WHEREAS, the City of Chino Hills Municipal Code Section 3.20.050 allows for the delegation of authority to the City Manager to award informal contracts. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHINO HILLS DOES RESOLVE, DETERMINE, AND ORDER AS FOLLOWS: SECTION 1. Pursuant to Chapter 3.20.050 of the City of Chino Hills Municipal Code, the City Council hereby delegates to the City Manager or designee, the authority to award public project contracts in an amount of $200,000 or less; and SECTION 2. Pursuant to Chapter 3.20.050 of the City of Chino Hills Municipal Code, the City Council hereby delegates to the City Manager or designee, the authority to negotiate contracts, award purchase orders or perform work by City employees by force account on public projects the cost of which are $60,000 or less; and SECTION 3. That this Resolution shall become effective upon the effective date of Ordinance introduced concurrently with this resolution entitled: “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHINO HILLS, CALIFORNIA, AMENDING CHAPTER 3.20 OF THE CHINO HILLS MUNICIPAL CODE TO INCREASE THE INFORMAL BID LIMITS FOR PUBLIC CONTRACTS AWARDED PURSUANT TO CHAPTER 3.20 TO $200,000, AND AUTHORIZE THE CITY MANAGER TO AWARD SUCH CONTRACTS IN AN AMOUNT NOT TO EXCEED $200,000 AND AMEND THE AUTHORITY TO NEGOTIATE CONTRACTS, AWARD PURCHASE ORDERS OR PERFORM WORK BY CITY EMPLOYEES BY FORCE ACCOUNT ON PUBLIC PROJECTS IN AN AMOUNT NOT TO EXCEED $60,000” SECTION 4. That this Resolution supersedes Resolution No. 2014R-14. 294/296 2 of 3 SECTION 5. The City Clerk shall certify as to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED this 11th day of December, 2018. ________________________________ CYNTHIA MORAN, MAYOR ATTEST: ________________________________ CHERYL BALZ, CITY CLERK APPROVED AS TO FORM: ________________________________ MARK D. HENSLEY, CITY ATTORNEY 295/296 3 of 3 STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) § CITY OF CHINO HILLS ) I, Cheryl Balz, City Clerk of the City of Chino Hills, DO HEREBY CERTIFY that the foregoing Resolution No. 2018R-_____ was duly adopted at a regular meeting of the City Council of the City of Chino Hills held on the 11th day of December, 2018, by the following vote, to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ___________________________________ CHERYL BALZ, CITY CLERK The foregoing is the original of Resolution No. 2018R-____ duly passed and adopted by the Chino Hills City Council at their regular meeting held January 8, 2019. __________________________________ CHERYL BALZ, CITY CLERK 296/296