CITY COUNCIL AGENDA ITEM NO. 23
Meeting Date: April 10, 2001
Subject/Title: Second Reading of Ordinance No. 661 amending Chapter 3.30 of the Municipal Code to increase the monetary limits from $75,000 to $100,000
Submitted by: Dennis Beougher
Approved by: Jon Elam, City Manager
Second Reading of Ordinance No. 661 amending the Brentwood Municipal Code Chapter 3.30, Bidding Procedures For Public Projects, to increase the monetary limits from $75,000 to $100,000.
In 1997, the City adopted Chapter 3.30 in order to promote uniformity in cost accounting standards and bidding procedures on construction work performed or contracted by the city. The ordinance provided an alternative method for bidding public works projects. This ordinance provided that public works projects valued at $25,000 or less could be performed by city employees, by negotiated contract, or purchase order. Public works projects of $75,000 or less may be contracted by the City Manager by complying with notice provisions and related procedures. The state legislation permitting this alternative bidding procedure also authorizes the State Controller every five years to recommend adjustments to the monetary limits. Effective July 1, 2000, the State Controller action allowed the upper spending limitation to become $100,000 and if approved by the City Council by a 4/5ths vote the limit would be $110,000.
On March 13, 2001, the City Council approved permitting the City Manager to execute public works contracts for the Brentwood Education and Technology Center ("BETC") up to $100,000 provided the contracts do not exceed the budget amount by more than 10%. The proposed ordinance would make Chapter 3.30 consistent with this previous approval.
By resolution approved in June, 1999, the City Council adopted a purchasing policy. Based on the need to streamline and expedite purchasing procedures, city staff seeks approval to increase the City Manager's monetary limitations for budgeted goods, equipment, and services from $25,000 to $50,000, to increase the monetary limits for purchase orders from $1,000 to $5,000, and to increase the credit card limit from $2,000 to $5,000 for city business expenditures.
In order to complete the work on the Technology Center, city staff provided the construction management type of delivery method to the City Council for its approval. This delivery method for BETC was recommended as the best method to complete the construction on a timely and cost effective basis. As part of this proposal, staff further recommended that the City Manager be authorized to execute public works contracts up to $100,000 to expedite the completion of this project and allow future minor public works projects of less $100,000 to be constructed using this alternative bidding procedure.
For budgeted items only, staff believes that it is also appropriate to amend the City's Purchasing Policy 10-7 to increase the City Manager's monetary spending limits from $25,000 to $50,000,to increase the expenditures limits for purchase orders from $1,000 to $5,000 and to increase credit card limits for city business expenditures from $2,000 to $5,000. Using the previous limits has proven to be inefficient for many goods and services purchased by the city and staff recommends the increase spending limits, as per the attached resolution and ordinance.
Attachments: Ordinance No. 661
ORDINANCE NO. 661
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD TO AMEND CHAPTER 3.30 TO INCREASE MAXIMUM MONETARY LIMITS TO $100,000 FOR PUBLIC WORKS PROJECTS
WHEREAS, in 1997 the City Council approved Ordinance No. 585, adding Chapter 3.30 to the Brentwood Municipal Code, in order to provide an alternative method for bidding public works projects;
WHEREAS, Public Contract Code Section 22020 provides that the California State Controller can every five years provide the California Uniform Construction Cost Accounting Commission a recommendation concerning adjustment to the monetary limits specified in Public Contract Code §22032 due to construction cost;
WHEREAS, the California State Controller sent a notice to affected public of the adjustment as required by Public Contract Code §22020 and the adjusted limits were effective July 1, 2000;
NOW, THEREFORE BE IT RESOLVED,
Chapter 3.30 is hereby amended to read as follows:
"3.30.020 Award of contract.
A. Public projects of twenty-five thousand dollars ($25,000) or less may be performed by the employees of the city by force account, by negotiated contract, or by purchase order.
B. Public projects of one hundred thousand dollars ($100,000) or less may be let to contract by informal procedures as set forth in this chapter.
C. Public projects of more than one hundred thousand dollars ($100,000) shall, except as otherwise provided in this chapter, be let to contract by formal bidding procedure, including without limitation those procedures contained within Public Contract Code §22037.
3.30.030 Award of informal contracts by city manager.
The City Council does delegate to the city manager, or his designated representative, the authority to award or reject contracts in accordance with this chapter, up to limit of fifty thousand dollars ($50,000).
3.30.080 Acceptance of informal bids in excess of seventy-five one hundred thousand dollars.
If all bids received are in excess of one hundred thousand dollars ($100,000), the city council may, by passage of a resolution by a four-fifths vote, award the contract at one hundred ten ($110,000) or less to the lowest responsible bidder if it determines the cost estimate prepared by city staff was reasonable. "
PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting on the 27th day of March 2001 by the following vote: