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Home My WebLink AboutMINUTES - 05112004 - C28 TO: BOARD OF SUPERVISORS CONTRA FROM: BARTON J. GILBERT, DIRECTOR OF GENERAL SERVICES COSTA DATE: MAY 11, 2004 COUNTY SUBJECT: APPROVE AMENDMENTS TO COUNTY ORDINANCE CODES � TO RAISE THE INFORMAL BIDDING LIMIT FOR PUBLIC PROJECTS FROM $50,000 TO $100,000 CONSISTENT WITH THE STATE PUBLIC CONTRACT CODE SPECIFIC REQUEST($)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION 1. INTRODUCE the following ordinances to raise from $50,000 to $104,000 the informal bidding limit for public construction projects; WAIVE reading and FIX May 11, 2004 for adoption: Ordinance amending Sections 1108-3.204(x) and 1108-3.208 of County Ordinance Code (County) Ordinance amending Ordinance No. 93-59 (Flood Control District) Ordinances amending Ordinances Nos. 93-61 (County Sanitation District No. 5) and 93-62 (County Sanitation District No. 6) Ordinances amending Ordinances Nos. 93-65 (Crockett-Carquinez Fire protection District); 93- 66 (Contra Costa County Fire Protection District); and 93-64, 93-67, and 93-69 (East Contra Costa Fire Protection District) 2. APPROVE increasing the Outreach program threshold for construction projects from $50,000 to $100,000. FINANCIAL IMPACT Raising the informal bidding limit will result in improved efficiencies and cost reductions in the administration and procurement of public construction projects that are $100,000 or less. CONTINUED ON ATTACHMENT: X YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR -RECOMMENDATION OF BOARD COMMITTEE APPROVE -OTHER SIGNATURE(S): ACTION OF BOARD ON may' 11, 9004 APPROVED AS RECOMMENDED� OTHER VOTE OF SUPERVISORS X UNANIMOUS(ABSENT NONE ) AYES: NOES: ABSENTS: ABSTAIN: MEDIA CONTACT:BARTON J.GILBERT(313-7100) Originating Dept.:General Services Department I HEREBY CERTIFY THAT THIS IS A TRUE cc: General Services Department AND CORRECT COPY OF AN ACTION TAKEN Administration AND ENTERED ON THE MINUTES OF THE BOARD Accounting OF SUPERVISORS ON THE DATE SHOWN. County Administrator's Office County Counsel ATTESTED MAY 11, 2004 Auditor-Controller(via GSD) JOHN WE@TEN,CLERK OF THE BOARD OF SUPERVISl RL. A OUNTY ADMINISTRATOR BY � < DEPUTY APPROVE AMENDMENTS TO COUNTY ORDINANCE April 27 CODES TO RAISE THE INFORMAL BIDDING LIMIT FOR PUBLIC PROJECTS FROM $50,000 TO $100,000 CONSISTENT WITH THE STATE PUBLIC CONTRACT CODE BACKGROUND In 1003, the Board of Supervisors eluted to use the Uniform Public Construction Cost Accounting Act (Public Contract Code Section 22000-22045) for construction contracts let by the County, Flood Control District, County Sanitation Districts Nos. 5 (Port Costa) and 6 (Alhambra Malley), the Contra Costa Fire Protection District, the Crockett-Carquinez Fire Protection District, and the East County Fire Protection District. As required by the Act, the Board adopted ordinances implementing the informal bidding procedures authorized by the Act. At the time the ordinances were adopted, the limit in the Act for informal bidding was $50,000 (Public Contract Code Section 22032(b)). On June 27, 2000, the Finance Committee presented a report to the Board of Supervisors regarding the County's purchasing policies and practices. The report included a recommendation to raise the informal bidding limit for construction projects from $50,000 to $75,000, which the Board unanimously approved. At the time of the Board's approval, the statutory limit for informal bidding had been increased to $75,000 (per Public Contract Code Section 22032(b)). Since that time, state law was amended further to increase the limit for informal bidding from $75,000 to $100,000. Since January 2002, Public Contract Code Section 22032 has allowed construction contracts of $100,000 or less to be let by informal bidding procedures. The attached ordinances, which would amend the ordinances originally adopted in 1993, would increase the informal bidding limit up to the current statutory limit--$100,000. To obtain the benefits of the new statutory limit for informal bidding, staff recommends that the Board introduce the attached ordinances, waive reading, and fix May 11, 2004 as the date for adoption of the ordinances. In addition, to coordinate the new informal bidding limit with the County's Outreach Program, it is recommended that the Outreach Program threshold also be increased from $50,000 (present level)to $100,000. The following table provides a comparison of the informal and formal bidding procedures. REQUIREMENT INFORMAL BIDDING FORMAL BIDDING Current bidding limit $25,001 to $50,000 $50,001 and above Proposed bidding limit $25,001 to $100,000 $100,001 and above County Outreach Program Not applicable Good faith effort by the bidder is required including mandatory subcontracting minimum (MSM) Approval of plans and specs Department (General Services, Board of Supervisors Public Works, or County Administrator) Notice to bidders Mailed notice at least 10 days Mailed notice at least 30 days (advertisement) before bid opening to: before bid opening to trade � a) Contractors on list; or journals Published notice in newspaper b) Trade journals, or of general circulation at least 14 c) Both (a) and (b) days before bid opening Contract award Department (General Services, Board of Supervisors Public Works, or County Administrator) Prevailing wages, bonding & required Required insurance APPROVE AMENDMENTS TO COUNTY ORDINANCE April 27 CODES TO RAISE THE INFORMAL. BIDDING LIMIT FOR PUBLIC PROJECTS FROM $50,000 TO $100,000 CONSISTENT WITH THE STATE PUBLIC CONTRACT" CODE Operational Efficiencies Increasing the informal bid limit would provide greater flexibility and efficiency in managing smaller projects. Project delivery time can be reduced by three months or more with an informal bidding process versus a formal bidding process. In addition, the informal bidding process can save between $5,000 and $8,000 in administrative costs on a per project basis depending upon the complexity of the project. Although informally bid projects are not subject to the Outreach Program, the General Services and Public Works Departments conduct 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 DVBs. The County, the Flood Control District, the Sanitation Districts, and Fire Districts will benefit from the time and cost savings of increasing the informal bidding limit to the $100,000 statutory limit.