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HomeMy WebLinkAboutMINUTES - 08062013 - C.116RECOMMENDATION(S): REFER to the Internal Operations Committee a proposal to increase the monetary limit for informal bidding and informal contracts, and to clarify the purchasing agent’s authority to award construction contracts, as recommended by the Public Works Director. FISCAL IMPACT: No fiscal impact, as this is a study referral only. It is anticipated that raising the informal bidding limit will result in improved efficiencies and cost reductions in the administration and delivery of public construction projects that are $175,000 or less. The figure of $175,000 is currently the informal bidding limit authorized by the State Public Contract Code. BACKGROUND: In 2004, the County’s informal bidding limit for construction projects was raised from $50,000 to $100,000 to be consistent with the State limit pursuant to Public Contract Code Section 22032(b). Since that time, state law was amended twice, increasing the limit for informal bidding to $175,000. The attached draft ordinance will increase the informal bidding limit to the current statutory limit of $175,000. Additionally, the ordinance will allow the County’s informal bid limit to automatically adjust to be consistent with future adjustments of the State limit. The ordinance also clarifies the purchasing agent’s authority to award APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 08/06/2013 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Candace Andersen, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Rob Lim, (925) 313-2000 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: August 6, 2013 David Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: PW Accounting, PW CPM Division Manager, PW CPM Clerical, Auditor's Office, County Counsel's Office, County Administrator's Office, County Administrator's Office C.116 To:Board of Supervisors From:Julia R. Bueren, Public Works Director/Chief Engineer Date:August 6, 2013 Contra Costa County Subject:Refer to the Internal Operations Committee a Proposal to Raise the Informal Bidding Limit BACKGROUND: (CONT'D) construction contracts pursuant to Public Contract Code Section 22032(a). To better understand the benefits of the higher statutory limit for informal bidding and in recognition that the proposal would affect the current monetary thresholds in the County's Outreach Program, which is overseen by the Internal Operations Committee, staff recommends that the Board refer this matter to the Internal Operations Committee for study and recommendation to the Board. Increasing the informal bid limit will provide greater flexibility and efficiency in managing smaller projects. Project delivery time can be reduced by three months with an informal bidding process versus a formal bidding process. In addition, the informal bidding process can save between $5,000 to $8,000 in administrative costs on a per project basis depending upon the complexity of the project. The County will benefit from the time and cost savings of increasing the informal bidding limit to the current $175,000 statutory limit. Although informally bid projects are not subject to the Outreach Program, the Public Works Department conducts outreach efforts for informally bid projects by advertising in construction trade journals and sending notices to contractors and subcontractors, including SBEs, LBEs, MBEs, WBEs, and DVBEs. CONSEQUENCE OF NEGATIVE ACTION: If the recommendation is not studied or implemented and the County Ordinance Code is not amended, the County’s informal bidding limit will not be consistent with the State Public Contract Code and the County will not be able to benefit from the cost and time savings associated with a higher informal bidding limit. CHILDREN'S IMPACT STATEMENT: Not applicable. ATTACHMENTS DRAFT Ordinance No. 2013-20 Construction Contracts