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03 Staff Report - Amending Town Code, Chapter 2, Article V, Section 2.50.131 and 140tpW N 0,c lps~ pS DATE TO FROM MEETING DATE: 10-2-2006 AGENDA ITEM: COUNCIL AGENDA REPORT September 27, 2006 MAYOR AND TOWN COUNCIL , ORRY P. KORB, TOWN ATTORNEY - Or, y SUBJECT: ADOPT AN ORDINANCE OF THE TOWN OF LOS GATOS 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: Adopt the ordinance introduced by Council on September 18, 2006. DISCUSSION: On September 18, 2006, Council voted to adopt an ordinance amending the Town's informal bid procedures on public works, and amending the Town Code concerning notice of formal bid procedure on public works. Adoption of the ordinance completes Council's action on this matter. The ordinance amending Town Code becomes effective 30 days after adoption. Attachment: Proposed Ordinance PREPARED BY: ORRY P. KORB, TOWN ATTORNEY OPK:LMB/wp [NAATY\RepgFt Bidding Procedure.wpd] Reviewed by: Town Manager Assistant Town Manager Clerk Finance Community Development Rev: 9/27/06 3:01 pm Reformatted: 7119/99 File# 301-05 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; and 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 2 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 seventy five thousand dollars 5,0004one 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 §2.50.140(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 eneetwice 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 II. 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 18, 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 October 2, 2006. COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA Page 2 of 2