14 Staff Report - Amending Town Code Chapter 2, Article V, Section 2.50.131~pW N 0
COUNCIL AGENDA REPORT
S.GA~
DATE: AUGUST 30, 2006
MEETING DATE: 09-18-2006
AGENDA ITEM:
I Li
TO: MAYOR AND TOWN COUNCIL
FROM: ORRY P. KORB, TOWN ATTORNEY6~/
SUBJECT: INTRODUCE ORDINANCE AMENDING TOWN CODE, CHAPTER 2,
ARTICLE V, SECTION 2.50.131 CONCERNING INFORMAL BID
PROCEDURES ON PUBLIC WORKS, AND AMENDING TOWN CODE,
CHAPTER 2, ARTICLE V, SECTION 2.50.140 CONCERNING NOTICE OF
FORMAL BID PROCEDURE ON PUBLIC WORKS.
RECOMMENDATION:
a. Direct the Clerk Administrator to read the title.
b. Waive the reading.
c. Introduce the ordinance and instruct the Clerk Administrator to publish a summary no
less than five days prior to adoption.
BACKGROUND:
Informal Bidding Procedure
State law (Public Contracts Code §20162) requires that all contracts for public works projects
valued in excess of $5,000 must be awarded to the low bidder in a competitive bidding process.
However, the Uniform Public Construction Cost Accounting procedures (Public Contracts Code
§22030, et seq.) provide an alternate process for awarding public works contracts. This allows
the use of informal bidding as a means of reducing the process, and the associated time and
expense associated with the award of small public works contracts. .
The alternative process, at the time of adoption by the Town (Town Code §2.50.130 et seq.)
allowed the use of informal bidding procedures to award contacts for projects valued up to
$75,000. The maximum amount has since been increased to $100,000. Town Code §2.50.130 et
seq. has not been amended to reflect this increase.
PREPARED BY: ORRY P. KORB, TOWN ATTORNEY OPKLMB/wp [NAATY\ReportBidding Ord Amendwpd]
Reviewed by: 6k' Town Manager Assistant Town Manager Clerk
Finance Community Development
Rev: 9/12106 2:44 pm
Reformatted: 7/19/99
File# 301-05
PAGE 2
MAYOR AND TOWN COUNCIL
INTRODUCE ORDINANCE AMENDING TOWN CODE
AUGUST 30, 2006
Formal Bidding Procedure
State law (Public Contract Code §20164) also requires that a city must publish a notice of intent
to accept formal competitive bids for public works projects a minimum of two times in a
newspaper of general circulation. Contrary to State law, Town Code §2.50:140(2) incorrectly
states that the notice be published a minimum of one time.
DISLTVSSIO V:
Amending Town Code § §2.50.131 will allow staff to employ informal bidding procedures for
-contracts-valued up_.to_$1.00,.000, thus_s.aving_the Town time and money in the competitive
bidding process for small public works projects. Amending Town Code §2.50.140(2) will
correct an error in the Code by insuring that notices of intent to accept formal bids for public
projects are published at least twice in conformance with State law.
Attachments: Proposed Ordinance
ORDINANCE
ORDINANCE OF THE TOWN OF LOS GATOS
AMENDING DIVISION 2 OF ARTICLE V. OF CHAPTER 2 OF THE LOS GATOS TOWN
CODE REGARDING COMPETITIVE BIDDING FOR PUBLIC WORKS PROJECTS
WHEREAS, California Public Contracts Code §20162 mandates formal procedures for the
competitive bidding of all contracts for "public projects," as defined therein, that exceed $5,000 in
value; a .d
WHEREAS, Public Contracts Code §22032(b) allows for competitive bidding by city using
informal procedures for certain public projects so long as the city has adopted the provisions of the
California Uniform Construction Cost Accounting Commission; and
WHEREAS, through the adoption of Los Gatos Town Code §2.50.130 et seq., the Town
adopted the provisions of the California Uniform Construction Cost Accounting Commission for public
projects costing seventy-five thousand dollars ($75,000) or less to be bid on using an informal
procedure; and
WHEREAS, Public Contracts Code §22032(b) has recently been amended to increase the
maximum value of a public project qualified for informal bidding procedures from seventy-five
thousand dollars ($75,000) to one hundred thousand dollars ($100,000); and
WHEREAS, amending Town Code §2.50.131 to raise the maximum value of a public project in
the Town qualified for informal bidding to one hundred thousand dollars ($100,000) would allow a
faster and more efficient process for contracting relatively small public projects; and
WHEREAS, California Public Contract Code §20164 requires that a notice soliciting
competitive bids in a formal bid process must be published at least twice and not less than five (5) days
apart; and
WHEREAS, Town Code §2.50.140(2) is inconsistent with the general law because it incorrectly
requires that notice inviting bids for public works projects be published at least one time.
Page 1 of 3
THE TOWN COUNCIL OF THE TOWN OF LOS GATOS ORDAINS AS FOLLOWS:
SECTION I.
A. Town Code §2.50.131 is amended to read as follows:
Informal bid procedures.
A public project, as defined by the Act, of more than twenty-five thousand dollars ($25,000.00)
and not more than seve y five thousand dellafs ($75,000 one hundred thousand dollars ($100, 000.00)
may be let to contract by informal procedures as set forth in Section 22032 et seq., of the Public
Contract Code.
B. Town Code .50.140(2)-is amended-to read as-follows-:
Publication of Notice.
Notice inviting bids shall be published by the Town Clerk at lease ten (10) days before the date
of opening of the bids. Notice shall be published at least eaeetwice in a newspaper of general
circulation, printed and published in the Town, or if there is none, it shall be posted in at least three (3)
public places in the Town. Notices shall conform to the requirements of Public Contract Code §20164.
SECTION 11.
This Ordinance takes effect 30 days after the date it is adopted.
This Ordinance was introduced at a regular meeting of the Town Council of the Town of Los
Gatos on September ,.2006, and adopted by the following vote as and Ordinance of the Town of
Los Gatos at a regular meeting of the Town Council on September , 2006.
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
- LOS GATOS, CALIFORNIA
li ATTEST:
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA