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Home My WebLink AboutF-1 Staff Report - Second Reading - Amended Purchasing Ordinance No. 2021-05 Section 2-529SECOND ORDINANCE READING F-1 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: TALIKA M. JOHNSON, DIRECTOR OF ADMINISTRATIVE SERVICES DATE: SEPTEMBER 20, 2021 SUBJECT: SECOND READING AND ADOPTION OF AN ORDINANCE AMENDED AND RESTATED ORDINANCE REVISING CHAPTER 2, SECTIONS 2-529, 2-530, 2- 532(i) AND 2-537(d)(e)(f) RELATED TO BIDDING THRESHOLDS FOR PUBLIC WORKS CONTRACTS BACKGROUND: The City's procurement ordinance (Article VII, Chapter 2 of the Azusa Municipal Code, Section 2-529) provides general rules and regulations for the bidding procedures for various Public Project Amounts. The City’s current procurement ordinance was adopted in 2015 and has not been updated in 6 years. To enable more effective and efficient Public Project Bidding processes, staff is recommending that the existing procurement ordinance be revised to match the California Public Contract Code. This action approves for second reading an ordinance revising the Bidding Procedures for Various Project Amounts. RECOMMENDATION: Staff recommends the City Council take the following action: 1) Waive further reading, read by title only, and adopt, Ordinance No. 2021-05. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA AMENDING AND RESTATING ARTICLE VII, CHAPTER 2, SECTION 2-529 OF THE AZUSA MUNICIPAL CODE RELATING TO BIDDING PROCEDURES FOR VARIOUS PUBLIC PROJECT AMOUNTS. ANALYSIS: At the August 16th meeting, the City of Azusa adopted an amended procurement ordinance that created better efficiencies and authorized the City’s participation in the Uniform Public Construction Cost Accounting system pursuant to California law (California Public Contract Code, Section 22010 et. seq.). The Construction Cost Accounting system was created in 1983 to authorize alternative financial thresholds for public projects. As an example, all general law cities must formally bid public works projects that cost over $1,000. Under the Construction Cost Accounting system, formal bids are required for public works projects that exceed $200,000. APPROVED CITY COUNCIL 9/20/2021 Revised Procurement Ordinance September 20, 2021 Page 2 The proposed ordinance addresses the bidding thresholds for Public Projects, the attached ordinance includes the following: 1. Updates the bidding thresholds in the ordinance to match those as definition in the Public Contract Code (PCC), Chapter 2, Article 3, Section 22032. 2. An added provision that allows for the bidding thresholds to be updated administratively pursuant to the California Public Contract Code as amended (see Sec 2.-529 (d) on the proposed ordinance). In addition, the ordinance includes a provision that allows for the bidding thresholds to be updated administratively pursuant to the current California Public Contract Code. FISCAL IMPACT: There is no additional fiscal impact associated with the recommended action. Prepared by: Reviewed and Approved: Adriana Garcia Talika M. Johnson Purchasing Agent Director of Administrative Services Reviewed and Approved: Sergio Gonzalez City Manager Attachment: 1) Ordinance No. 2021-05 09845.00500\9753855.5 ORDINANCE NO. 2021-05 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA AMENDING AND RESTATING ARTICLE VII, CHAPTER 2, SECTIONS 2-529, 2-530, 2-532(i), AND 2-537(d)(e)(f) OF THE AZUSA MUNICIPAL CODE RELATING TO BIDDING THRESHOLDS FOR PUBLIC WORKS CONTRACTS WHEREAS, California Public Contract Code (PCC) Chapter 2. Bidding on Public Contracts [2200-22045} (Chapter 2 added by Stats. 1983, Ch. 1054, Sec. 1.), ARTICLE 3. Public Projects: Section 22032 defines Bidding thresholds for Public Projects. WHEREAS, in order to match these revised, it is necessary for the City to amend Article VII, Chapter 2, Sections 2-529, 2-530, 2-532(i) and 2-537 (d)(e)(f) of the Azusa Municipal Code. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA DOES ORDAIN AS FOLLOWS: SECTION 1: Article VII, Chapter 2, Sections 2-529, 2-530, 2-532(i) and 2-537 (d)(e)(f) of the Azusa Municipal Code is hereby deleted in its entirety and restated to read as follows: “Sec. 2-529. Bidding procedures for various public project amounts. (a)A public project of Sixty Thousand and no/100ths ($60,000.00) Dollars or less may be performed by City employees by force account, by negotiated contract, or by Purchase Order. (b)A public project of an estimated amount exceeding Sixty Thousand and no/100ths ($60,000.00) Dollars but not more than Two Hundred Thousand and no/100ths ($200,000.00) Dollars may be let to contract by informal bid procedures as set forth in this article. (c)A public project in an amount exceeding Two Hundred Thousand and no/100ths ($200,000.00) Dollars shall, except as otherwise provided in this article, be let to contract by formal bidding procedures. (d)Amounts of bidding thresholds may be adjusted automatically pursuant to the California Public Contract Code (PCC) Chapter 2. Bidding on Public Contracts [2200-22045}” “Sec. 2-530. Adoption of plans. The City Engineer or his designee shall approve the plans, specification and working details of all public works projects. The City Council shall approve and adopt the plans, specifications, and working details, as well as authorize the bid request for all Public Works projects for an amount exceeding Two Hundred Thousand and no/100ths ($200,000.00) Dollars. The City Engineer is delegated authority to approve and adopt the plans, specifications, and working details for all Public Works projects less than Two Hundred Thousand and no/100ths ($200,000.00) Dollars. “ Attachment 1 Ordinance No. 2021-05 Page 2 of 4 “Sec. 2-532. Informal bidding procedures. (i) Change Orders. A Change Order shall be used to modify the contract documents regarding contract price, schedule of payments, completion date, plans and specifications, and for unit price overruns and under runs, as specified in the Contract. Work description and justification must relate to the original project and must be work necessary to achieve original scope of project. After a determination that costs are merited by developments in a specific project, the Purchasing officer is authorized to issue Contract Amendments or Change Orders up to the contract contingency approved by the City Council as awarded for the individual contract as follows: (1) Purchasing officer may approve Project Change Orders until the contract reaches Two Hundred Thousand and no/100ths ($200,000.00) Dollars. (2) Once the original contract plus all accumulated Change Orders are in an amount that is equal to Two Hundred Thousand and no/100ths ($200,000.00) Dollars the contract and subsequent Change Orders must be approved by City Council prior to commencing with the work. (3) Any single Change Order exceeding Fifty Thousand and no/100ths ($50,000.00) Dollars must be approved by City Council prior to commencing with the work. In urgency situations, where stopping the work will result in severe repair or replacement delays and subject the City to excessive additional costs due to the delay in the project, Purchasing officer may approve such Change Order and shall give notice to City Council at the next City Council meeting.” “Sec. 2-537. Bid protests. Any interested party may file a protest regarding the procurement decisions authorized under this chapter. (d) City Manager Review. The City Manager or designee shall review the protest and issue a written decision on the protest. The City Manager or designee may base the decision on the written protest alone or may informally gather evidence from the person(s) filing the protest or any other person having relevant information. For procurements having a value of Two Hundred Thousand and no/100ths ($200,000.00) Dollars or less, the City Manager's or designee's decision shall be final. (e) Hearing on Protest. If a bid was rejected on the grounds that the bidder was not a "responsible" bidder, the protesting party must submit materials set forth in subdivision (c) above for consideration. An opportunity to be heard will be set within a reasonable time to provide a decision before final approval of the selected low bid. For procurements having a value of Two Hundred Thousand and no/100ths ($200,000.00) Dollars or less, the City Manager's or designee's decision shall be final. Ordinance No. 2021-05 Page 3 of 4 (f) Appeal of City Manager's Decision to City Council. For procurements having a value exceeding Two Hundred Thousand and no/100ths ($200,000.00) Dollars, an appeal of the City Manager's decision may be filed with the City Council. All such appeals must be in writing, and shall be filed with the City Clerk within five (5) business days from the date of the City Manager's decision.” SECTION 2: Severability. If any section, sentence, clause or phrase of this Ordinance or the application thereof to any entity, person or circumstances is held for any reason to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect any other provisions or applications, of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The City Council of the City of Azusa hereby declares that it would have adopted this Ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared unconstitutional, invalid, or unenforceable. SECTION 3: Effective Date. This Ordinance shall become effective thirty (30) days following its adoption. SECTION 4: Publication. The City Clerk shall certify the adoption of this Ordinance. Not later than fifteen (15) days following the passage of the Ordinance, the Ordinance, or a summary thereof, along with the names of the City Council members voting for or against the Ordinance, shall be published in a newspaper of general circulation in the City of Azusa. Ordinance No. 2021-05 Page 4 of 4 PASSED, APPROVED and ADOPTED this 20th day of September, 2021. _______________________________ Robert Gonzales, Mayor ATTEST: ___________________________________ Jeffrey Lawrence Cornejo, Jr., City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) I HEREBY CERTIFY that the foregoing Ordinance No. 2021-05, was duly introduced and placed upon its first reading at a regular meeting of the Azusa City Council on the 16th day of August, 2021 and that thereafter, said Ordinance was duly adopted and passed at a regular meeting of the Azusa City Council on the 20th day of September, 2021 by the following vote to wit: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ___________________________________ Jeffrey Lawrence Cornejo, Jr., City Clerk APPROVED AS TO FORM: ________________________________ Best Best & Krieger LLP, City Attorney