04-06-2021 - AGENDA ITEM 10 CONSIDERATION OF ORDINANCE ADOPTING CALIFORNIA UNIFORM PUBLIC CONSTRUCTION ACT COST ACCOUNTING ACT PROCEDURESAGENDA ITEM NO. 10
AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
DATE: April 6, 2021
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF ORDINANCE ADOPTING CALIFORNIA UNIFORM PUBLIC
CONSTRUCTION ACT COST ACCOUNTING ACT PROCEDURES
RECOMMENDATION:
It is recommended that the City Council introduce the first reading, by title only, further reading waived, the
following ordinance:
ORDINANCE NO.2477 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, REPEALING ARTICLE X (PUBLIC WORKS CONTRACTS)
OF CHAPTER 19 (STREETS, SIDEWALKS AND PUBLIC PLACES) AND ADDING DIVISION
3 (CONTRACTING FOR PUBLIC PROJECTS) TO ARTICLE VII (PURCHASES AND SALES)
OF CHAPTER 2 (ADMINISTRATION) OF THE WEST COVINA MUNICIPAL CODE
BACKGROUND:
West Covina is a general law city. State law requires that general law cities competitively bid public works
contracts for all public projects over $5,000. Pursuant to the California Public Contract Code, cities are
required to let any public project in excess of $5,000 to the lowest responsible bidder after complying with
noticing and bidding requirements set forth by statute.
The City's Financial Recovery Plan, State Auditor Objective number 9, anticipates that the City will Adopt an
ordinance enacting the California Uniform Public Construction Cost Accounting Act.
In 1983, the California Legislature adopted Public Contract Code section 22000 et seq., now known as the
California Uniform Public Construction Cost Accounting Act (the "Act"), which provides for alternative
bidding procedures when a public agency performs public project work by contract. The Act outlines less
formal procedures for contracts under a specified amount. These less formal procedures provide local agencies
with more flexibility in letting small public projects if the agency adheres to certain uniform cost and
accounting standards.
In lieu of the $5,000 threshold for general bidding requirements, if a city elects to become subject to the
alternative procedures set forth in the Act, the following dollar thresholds, which are updated periodically by
the California Uniform Public Construction Cost Accounting Commission, and procedures apply to public
projects:
irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or
portions be declared invalid or unconstitutional.
SECTION 5. Effective Date. This Ordinance shall take effect thirty (30) days after its
final passage.
SECTION 6. Certification The City Clerk shall certify to the passage and adoption of
this Ordinance and shall cause the same to be published or posted in the manner required by law.
PASSED, APPROVED AND ADOPTED on the day of , 2021.
Letty Lopez- Viado
Mayor
APPROVED AS TO FORM ATTEST
Thomas P. Duarte Lisa Sherrick
City Attorney Assistant City Clerk
I, LISA SHERRICK, ASSISTANT CITY CLERK of the City of West Covina, California,
do hereby certify that the foregoing Ordinance No. 2477 was introduced at a regular meeting of
the City Council held on the 6th day of AprH, 2021, and adopted at a regular meeting of the City
Council held on the day of , 2021, by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Lisa Sherrick
Assistant City Clerk
(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 Section 22034 of the Act. Section 22034 requires that a local agency that has elected
to become subject to the Act adopt an informal bidding ordinance that contains specified provisions.
(c) Public projects of more than two hundred thousand dollars ($200,000) must be let to contract by formal
bidding procedures set forth in the Act.
Pursuant to Public Contract Code section 22034, each public agency that elects to become subject to the
uniform construction cost accounting procedures is required to enact an informal bidding ordinance to govern
the selection of contractors to perform public projects pursuant to subdivision (b) of Public Contract Code
section 22032. Section 22034 sets forth the requirements of said informal bidding ordinance.
In December 2007, the West Covina City Council adopted Resolution No. 2007-83, adopting the Act's
procedures. However, the City did not adopt an informal bidding ordinance in accordance with the
requirements of Section 22034 of the Act.
DISCUSSION:
The current Article X (Public Works Contracts) of Chapter 19 (Streets, Sidewalks and Public Places) of the
West Covina Municipal Code references the City's adoption of the Act and provides for the ability of the City
to use the alternative bidding procedures pursuant to the Act. However, the existing provisions of Article X of
Chapter 19 do not include the informal bidding provisions required by Section 22034 of the Public Contract
Code.
In order to comply with Public Contract Code section 22034, staff recommends that the City Council adopt the
proposed ordinance, which would repeal Article X of Chapter 19 in its entirety and add a new Division 3
(Contracting for Public Projects) to Article VII (Purchases and Sales) of Chapter 2 (Administration) of the
West Covina Municipal Code.
The proposed ordinance includes:
• Authorization for the Public Services Director and City Engineer to approve and/or adopt the plans,
specifications and working details for all public projects, including projects that require formal bidding
(projects over $200,000). This is consistent with the City's current practice regarding such approval.
• Authorization for public projects and maintenance work in the amount set forth in Public Contract Code
section 22032(a) (currently $60,000 or less) to be performed by City employees by force account, by
negotiated contract, or by purchase order, and authorization for the City Manager to approve and execute
such contracts, provided the expenditure is within the approved budget.
• Informal bidding procedures as required by Section 22034 of the Public Contract Code.
• Authorization for the City Manager to award and execute contracts that are informally bid, provided the
expenditure is within the approved budget and the contract is approved as to form by the City Attorney.
Based on the current threshold set forth in Public Contract Code section 22032(b), this gives the City
Manager authorization to award contracts for public projects and maintenance work in an amount up to
$200,000.
• Authorization for the City Manager to accept work and authorize the filing of the notice of completion
and release of bonds upon the completion of work on an informally bid contract.
• Formal bidding procedures, consistent with the requirements of the Act.
• Reporting requirements that require the City Manager to provide a report to the City Council semi-
annually regarding contracts and purchase orders awarded by the City Manager (projects up to
$200,000).
Emergency procedures, which include the authorization for the City Manager to order the emergency
repair or replacement of a public facility and take directly related and immediate action required by
the emergency when it is impractical to convene a meeting of the City Council. This authorization
requires a 4/5 vote of the City Council.
Authorization relating to change orders, which allows the City Manager to approve change orders up to
$60,000 for contracts awarded for "small" projects (a project under $60,000), up to $200,000 on a
contract awarded by the City Manager following informal bidding procedures, and within the
contingency amount provided by Council if Council approves contingency when it awards a contract.
Staff recommends the City Council introduce the ordinance for first reading. If the City Council introduces the
ordinance for first reading, staff anticipates presenting the ordinance for second reading and adoption at the
April 20, 2021 meeting. The ordinance will be effective on the 31 st day after adoption.
LEGAL REVIEW:
The City Attorney's Office has reviewed the ordinance and approved it as to form.
OPTIONS:
The City Council has the following options:
1. Approve Staffs recommendation; or
2. Provide alternative direction.
Prepared by: Okan Demirci, PE, CIP Manager
Fiscal Impact
FISCAL IMPACT:
There is no fiscal with adoption of the ordinance.
Attachments
Attachment No. 1 - Ordinance No. 2477
CITY Achieve Fiscal Sustainability and Financial Stability
COUNCIL Enhance the City Image and Effectiveness
GOALS & Financial Recovery Plan/Corrective Action
OBJECTIVES:
117IgUh/:V[S]- D W rim-7_1 W
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF WEST COVINA, CALIFORNIA, REPEALING ARTICLE
X (PUBLIC WORKS CONTRACTS) OF CHAPTER 19
(STREETS, SIDEWALKS AND PUBLIC PLACES) AND
ADDING DIVISION 3 (CONTRACTING FOR PUBLIC
PROJECTS) TO ARTICLE VH (PURCHASES AND SALES)
OF CHAPTER 2 (ADMINISTRATION) OF THE WEST
COVINA MUNICIPAL CODE
WHEREAS, on December 18, 2007, the City Council adopted Resolution No. 2007-83,
adopting the California Uniform Public Construction Cost Accounting Act ("CUPCCAA' or the
Act') procedures, which provide alternative procedures for public project construction performed
or contracted by public agencies, including an increased force account limit for public agencies
and simplified bidding for projects under a specified threshold, resulting in a more streamlined and
efficient process; and
WHEREAS, pursuant to Public Contract Code section 22034, each public agency that
elects to become subject to the uniform construction cost accounting procedures is required to
enact an informal bidding ordinance to govem the selection of contractors to perform public
projects pursuant to subdivision (b) of Public Contract Code section 22032; and
WHEREAS, Public Contract Code section 22034 sets forth the requirements of said
informal bidding ordinance; and
WHEREAS, the current Article X (Public Works Contracts) of Chapter 19 (Streets,
Sidewalks and Public Places) references the City's adoption of the Act and provides for the ability
of the City to use the alternative bidding procedures pursuant to the Act; and
WHEREAS, the existing provisions of Article X of Chapter 19 and the West Covina
Municipal Code do not include the informal bidding provisions required by Section 22034 of the
Public Contract Code; and
WHEREAS, in order to comply with Public Contract Code section 22034, the City
Council desires to repeal Article X of Chapter 19 in its entirety and add a new Division 3
(Contracting for Public Projects) to Article VII (Purchases and Sales) of Chapter 2
(Administration) of the West Covina Municipal Code; and
WHEREAS, all legal prerequisites prior to the adoption of this Ordinance have occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA,
CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Repeal of Article X of Chapter 19. Article X (Public Works Contracts)
of Chapter 19 (Streets, Sidewalks and Public Places) of the West Covina Municipal Code is hereby
repealed in its entirety. Article X shall be reserved for later use.
SECTION 2. Amendment to Article VII of Chapter 2. Article VH (Purchases and
Sales) of Chapter 2 (Administration) of the West Covina Municipal Code is hereby amended to
add a Division 3, to read as follows:
DIVISION 3. - CONTRACTING FOR PUBLIC PROJECTS
Sec. 2-250. —Uniform construction cost accounting procedures.
The city, by adoption of Resolution No. 2007-83, has elected to become subject to the uniform
construction cost accounting procedures promulgated by the State Controller pursuant to the
California Uniform Public Construction Cost Accounting Act (the "Act"; Public Contract Code
section 22000 et seq.). The purpose of this division is to set forth the requirements for contracting
for public projects in accordance with the Act and state law.
Sec. 2-251. — Definitions.
The following words, tenor and phrases when used in this division shall have the meanings
ascribed to them in this section, except where the context clearly indicates a different meaning:
(a) Act" means the California Uniform Public Construction Cost Accounting Act, Public
Contract Code section 22000 et seq.
(b) "Emergency" has the meaning set forth in Public Contract Code section 1102.
(c) `Facility" has the meaning set forth in Public Contract Code section 22002.
(d) `Maintenance work" has the meaning set forth in Public Contract Code section 22002.
(e) `Public Contract Code" means the Public Contract Code of the State of California.
(1) `Public project" has the meaning set forth in Public Contract Code section 22002.
Sec. 2-252. — Adoption of plans, specifications, and working details.
The city council delegates to the public services director and the city engineer the authority to
approve and/or adopt the plans, specifications, and working details for all public projects and
maintenance work, including public projects exceeding the amount specified in Public Contract
Code section 22032(c).
Sec. 2-253. — Small project procurement procedures.
Public projects and maintenance work in the amount set forth in Public Contract Code section
22032(a), as amended from time to time, or less may be performed by employees of the city by
force account, by negotiated contract, or by purchase order without competitive bidding. The city
manager is authorized to approve and execute contracts or purchase orders issued pursuant to this
section, provided that the expenditure is within the approved budget.
Sec. 2-254. — Informal bidding procedures.
Public projects and maintenance work in the amount set forth in Section 22032(b) of the Public
Contract Code, as amended from time to time, or less may be let to contract by informal procedures
as set forth in the Act, including the following procedures:
(a) Contractors list. The city shall comply with the requirements of Public Contract Code
section 22034 regarding maintaining a list of qualified contractors identified according to
categories of work.
(b) Notice inviting informal bids —circulation. Where a public project or maintenance work is
to be performed which is subject to the provisions of this section, a notice inviting informal
bids shall be circulated using one or both of the following alternatives:
(1) Notices inviting informal bids may be mailed, faxed, or emailed to all contractors for
the category of work to be bid, as shown on the list developed in accordance with
subsection (a) above.
(2) Notices inviting informal bids may be mailed, faxed, or eeailed to all construction
trade journals as specified by the California Uniform 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 services director or designee.
(c) Notice inviting informal bids — proprietary products and services. Notwithstanding the
foregoing requirements, if the product 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) Notice inviting informal bids — mailing. All mailing of notices to contractors and
construction trade journals pursuant to this section shall be completed at least ten (10)
calendar days before bids are due.
(e) Notice inviting informal bids — contents. 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.
(f) Rejection of bids; bid irregularities. The city manager may, in his/her sole discretion, reject
any or all bids presented and waive any minor irregularity or informality in such bids.
(g) Award of contract. The city manager is authorized to award and execute contracts
informally bid in accordance with this section, provided that the expenditure is within the
approved budget and the contract is in a form approved by the city attorney. Such contracts
shall be awarded to the lowest responsible bidder.
(h) Tie bids; no bids received. If two or more bids are the same and the lowest, the city manager
may accept the one he/she chooses. If no bids are received through the informal procedures
set forth in this section, the project may be performed by city employees, by force account
or negotiated contract without further complying with this section.
(i) Bids over informal bidding limit. If all bids received are in excess of the amount set forth
in Public Contract Code section 22034(d), as amended from time to time, the city council
may, by adoption of a resolution by a four -fifths (4/5) vote, award the contract, at the
amount specified in Public Contract Code section 22034(d), as amended from time to time,
or less, to the lowest responsible bidder, if it determines the cost estimate of the city was
reasonable.
0) Acceptance of work. Upon the completion of work pursuant to a contract awarded pursuant
to this section, the city manager may accept the work and may authorize the filing of the
notice of completion, the release of funds retained upon such filing, and the release of any
bonds upon the conclusion of their respective warranty periods.
(k) Performance bonds. The city may require a performance bond before entering a contract
awarded pursuant to this section in such amount as the public services director or his/her
designee finds reasonably necessary to protect the best interests of the city. If the city
requires a performance bond, the form and amount of the bond shall be described in the
notice inviting bids.
Sec. 2-255. —Formal bidding procedures.
Public projects and maintenance work in the amount set forth in Section 22032(c) of the Public
Contract Code, as amended from time to time, or greater shall be let to contract in accordance with
the procedures set forth in Public Contract Code section 22037 et seq., including the following
procedures:
(a) Advertising; contents. The notice inviting formal bids shall state the time and place for the
receiving and opening of sealed bids and distinctly describe the project. The notice shall
be published at least fourteen (14) calendar days before the date of opening the bids in a
newspaper of general circulation, printed and published in the city; or, if there is no
newspaper printed and published within the city, in a newspaper of general circulation
which is circulated within the city, or, if there is no newspaper which is circulated within
the city, publication shall be by posting the notice in at least three (3) places within the city
as have been designated by ordinance or regulation of the city as places for the posting of
its notices. The notice inviting formal bids shall also be sent electronically, if available, by
either facsimile or electronic mail and mailed to all construction trade journals specified
in Section 22036 of the Public Contract Code. The notice shall be sent at least fifteen (15)
calendar days before the date of opening the bids. In addition to notice required by this
section, the city may give such other notice as it deems proper.
(b) Sealed bids. All bids shall be presented under sealed cover to the department identified in
the invitation for bids. Bids shall be opened in public at the time and place stated in the
notice inviting bids.
(c) Bidder's security. AD bids presented shall be accompanied by bidder's security in the form
and amount prescribed by Public Contract Code section 20170 et seq., which security shall
be deck with as described therein. 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 second lowest bidder, the amount of the lowest
bidder's security shall be applied by the city to the difference between the low bid and the
second lowest bid, and the surplus, if any, shall be returned to the lowest bidder if cash or
a check is used, or to the surety on the bidder's bond if a bond is used. This procedure shall
be followed with the next lowest bidder in order upon any additional refusal or failure of
the next lowest responsible bidder to execute the contract.
(d) Rejection of bids; bid irregularities. The city council, in its discretion, may reject any and
all bids presented in accordance with the requirements of Public Contract Code section
22038 and waive any minor irregularity or informality in such bids. If after the first
invitation of bids all bids are rejected, after reevaluating its cost estimates of the project,
the city shall have the option of either of the following:
(1) Abandoning the project or readvertising for bids in the manner described by this
division.
(2) By passage of a resolution by a four —fifths vote of the city council declaring that the
project can be performed more economically by the employees of the city, the city may
have the project done by force account without further complying with this division.
(e) Award of contract. Contracts for public projects and maintenance work subject to formal
bidding requirements shall be awarded by the city council Such contracts shall be awarded
to the lowest responsible bidder.
(fl Tie bids; no bids received. If two or more bids are the same and the lowest, the city council
may accept the one it chooses. If no bids are received through the formal procedures set
forth in this section, the project may be performed by employees of the city by force
account, or negotiated contract, without further complying with this division.
(g) Performance bonds. The city may require a performance bond before entering a contract
awarded pursuant to this section in such amount as the public services director or his/her
designee finds reasonably necessary to protect the best interests of the city. If the city
requires a performance bond, the form and amount of the bond shall be described in the
notice inviting bids.
Sec. 2-256. — Reporting requirements.
On a semi-annual basis, the city manager shall present to the city council doming an open meeting
a report listing all contracts and purchase orders that have been awarded by the city manager
pursuant to the city manager's authority pursuant to this division during the preceding six months.
Such reports shall include, at minimum, a description of the public project or maintenance work
performed, the name of the party or parties with whom the city contracted, and the total amount of
the expenditure associated with the contract (including any amendments or change orders).
Sec. 2-257. —Emergency procedures.
(a) In cases of an emergency, the city council, after making a finding, based on substantial
evidence set forth in the minutes of the meeting, that the emergency will not permit a delay
resulting from a competitive solicitation for bids, and that the action is necessary to respond
to the emergency, may, by a four -fifths (4/5) vote of the city council, repair or replace a
public facility, take any directly related and immediate action required by that emergency,
and procure the necessary equipment, services, and supplies for those purposes, without
giving notice for bids to let contracts. The city council shall review the emergency action
in accordance with the requirements of Public Contract Code section 22050(c).
(b) In cases of an emergency, when it is impractical to convene a meeting of the city council,
the city manager shall have the power to order the repair or replacement of a public facility,
take any directly related and immediate action required by that emergency, and procure the
necessary equipment, services, and supplies for those purposes, without giving notice for
bids to let contracts. If the city manager takes such action, the city manager shall report to
the city council at its next regularly scheduled meeting the reasons justifying why the
emergency will not permit a delay resulting from a competitive solicitation for bids and
why the action is necessary to respond to the emergency.
Sec. 2-258. — Change orders on contracts for public projects.
(a) The city has, in Section 19-1 of this Code, adopted the standard specifications for public
works construction ("the Green Book'), except to the extent those specifications conflict
with any other provision of the city's municipal code or standard specifications. The city
council intends to limit the use of change orders for public works contracts notwithstanding
any contrary provision of the Green Book.
(b) Following the award of a public project or maintenance work contract or purchase order
awarded pursuant to this division, such contract or purchase order may be amended by the
issuance of a change order or contract amendment, provided the change which is the subject
of the change order or contract amendment is reasonably related to the scope of the original
contract or purchase order. Notwithstanding any provision of this division to the contrary,
unless a lower limit has been set by applicable law or the city council, the city manager is
authorized to approve and execute the following change orders or contract amendments for
public project and maintenance work contracts and purchase orders awarded pursuant to
this division without city council approval, provided that the expenditure is in the approved
budget:
(1) For contracts or purchase orders issued pursuant to Section 2-253 of this Code, any
change order or contract amendment which results in the total contract price of the
amount set forth in Public Contract Code section 22032(a) or less; and
(2) For contracts awarded pursuant to Section 2-254 of this Code, any change order or
contract amendment which results in a total contract price of the amount set forth in
Public Contract Code section 22032(b) or less.
(3) For contracts awarded by the city council with an approved contingency, change orders
within such contingency.
(c) Any change order or contract amendment for any contract awarded pursuant to this division
which results in a total contract price in excess of the amounts specified in subsection (b)
of this section must be approved by the city council.
(d) AD change orders and contract amendments approved by the city manager pursuant to
subsection (b)(1) and (2) of this section shall be reported to the city council in the city
manager's semi-annual report required pursuant to Section 2-256 of this Code.
SECTION 3. Environmental Compliance. The City Council hereby finds that it can be
seen with certainty that there is no possibility the adoption and implementation of this Ordinance
may have a significant effect on the environment. The Ordinance is therefore exempt from the
environmental review requirements of the California Environmental Quality Act pursuant to
Section 15061(b)(3) of Title 14 of the California Code of Regulations.
SECTION 4. Severability. 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 West Covina hereby declares that it would have
adopted this Ordinance and each section, subsection, sentence, clause, phrase, or portion thereof,