HomeMy WebLinkAbout1988-11-22; City Council; 9717; ADOPTION AND IMPLEMENTATION OF THE UNIFORM CONSTRUCTION COST ACCOUNTING PROCEDURES FOR PUBLIC CONSTRUCTION PROJECTSAB#=
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DEPT. PCH
DEPT.
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CITY M
TITLE:
ADOPTION AND IMPLEMENTATION OF THE UNIFORM CONSTRUCTION COST ACCOUNTING PROCEDURES
FOR PUBLIC CONSTRUCTION PROJECTS.
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RECOMMENDED ACTION:
Adopt Resolution No.
the Uniform Construction Cost Accounting Act.
Introduce Ordinance No. d 5 - 43
Ordinance to include informal bidding procedures for public
construction projects costing less than $50,000.
ITEM EXPLANATZON:
All contracts for public works projects have been administered in the manner provided by ArtiGle 4, Sections 20160 - 74 of the Public Contract Code, This Article provide6 for formal competitive bidding when the expenditure required for a public works project exceeds five thousand dollars.
Pn 1983, the State legislature amended the Public ContfaCt Code to permit public agencies to use alternate bidding procedures for public projects costing less than $50,000. The new section in the Public Contract Code also provided for public agencies to use standard cost accounting procedures for projects costing less than $15,000 when they are performed by force amount.
This is a voluntary program and if the City of Carlsbad elects to become subject to the Uniform Construction Cost Accounting
Act, there are two steps that are necessary. First, the City council needs to adopt a Resolution to become subject to the Cost Accounting procedures pursuant to Section 3203.9 of the Public Contract code. In addition to adopting the Resolution, the City is required to enact an informal bidding ordinance in accordance with Section 22034 of the Public Contract Code. The
ordinallce provides for informal bidding procedures €or public
construction projects less than $50,000.
Since the requirements for noticing and the authority tu solicit bids are less restrictive in the informal bidding ordinance, the City will be more responsive to requests for public projects
costing less than $50,000, procedures, the dollar amount of work that can be performed by
force account will be increased €rom $5,000 - $15,000. Implementation Of the Act and the informal bidding prcrcedures will enhance the flexibility and responsiveness of the City
staff to public works projects.
86-*384 , exeoting to become subject to
, amending the Purchasing
Also, under the cost accounting
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AB # 97/7
FISCAL IMPACT:
There will be no direct cost to the city; however, since the noticing requirements are less restrictive in the informal bidding procedures, there will be a savings in the legal advertising costs.
EXHIBITS :
1.
2. Memorandum from Utilities/Maintenance
3. Resolution No. ffH3 87
4. Ordinance No. n/3-+3
Summary of Combined Bidding Procedures
-Exhibit rlArr
Director dated October 4, 1988. Exhibit *rBrr
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0 @hibit “B”
5
October 4, 1988
TO: RUTH FLETCHER, PURCHASING OFFICER
FROM: Utilities & Maintenance Director Parks & Recreation Director
IMPLEMENTATION OF THE UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING ACT
At your request, we have reviewed the above Act to determine if the City shod
elect to become subject to the Act and its provisions. In our review, we hav found, as with most things, implementation of the Act will result in advantage and disadvantages to the City.
The principal advantage to the City appears to be increased responsiveness an flexibility that will result from the provisions which authorize an informa contracting procedure for pub1 ic works construction projects of $50,000 or less Moreover, the Act permits the maximum amount of work to be performed by forc account to be increased from $5,000 to $15,000 per project. This will serve t further enhance the flexi bil i ty and responsiveness of City staff.
The disadvantages identified are as follows:
1. When the City elects to become subject to the provisions of the Act, City public works construction and force account construction activities are then brought under the purview of the Construction Cost Accounting Commission of the State. Any complaint (e.g. Contractor or labor union initiated) about the City’s public works construction contracting or force account procedures would be within the jurisdiction of the Commission, and would likely be investigated by the Commission. The Commission at this time does not have any jurisdiction over the City of Carlsbad.
2. Compliance with provisions of the Act will require the implementation of significantly detailed cost accounting systems in the Parks and Recreation and the Utilities & Maintenance Departments. While the Utilities & Maintenance Department is well on its way towards the implementation of a Department-wide cost accounting system, the Parks and Recreation Department has yet to begin to implement such a system. Thus, to comply with the provisions of the Act will require additional staff time, and City funds to develop and implement cost accounting procedures for public works construction and force account projects.
Performance of public work construction projects of up to $15,000 in cost may create a demand for additional staffing in both the Parks and Recreation and Utilities & Maintenance Departments. If additional staff is not forthcoming and the need to be responsive dictates that the project must be constructed by City staff,
3.
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RUTH FLETCHER, PURCHASING OFFICER -2- October 4, 1988 (Implementation of the Uniform Public Construction Cost Accounting Act)
existing City staff will be required to accomplish the projects to the detriment of their normal maintenance responsibilities. This could create a significant burden on already limited maintenance resources.
After discussing the advantages and disadvantages, we believe that th advantages of enhanced flexibility and responsiveness may outweigh th disadvantages.
Therefore, it is our recommendation that the City Council be requested to ador a resolution electing to make the City of Carlsbad subject to the provisions c the Uniform Public Construction Cost Accounting Act, and to adopt the ordinanc providing for the informal bidding procedure.
&&WUd DAVE BRADSTREET RAL W. NDERSON
RIA : DB : ew
c: Assistant City Manager Assistant Director, U&M Super i n t enden t s , U&M Superintendents, Parks & Recreation
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RESOLUTION NO. 88-389
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ADOPTING UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING PROCEDURES.
WHEREAS, prior to the passage of Assembly Bill No. 1666, Chapt
Stats. 1983, which added Chapter 2 commencing with Section 2200 to Pi
Division 2 of the Public Contract Code, existing law did not provide a
cost accounting standard for construction work performed or contracted
public agencies;
WHEREAS, Pub1 ic Contract Code Section 2200, et. seq., the Unifor
Construction Cost Accounting Act, establishes such a uniform cost ac
standard;
WHEREAS, the Commission established under the Act has developed
pub1 ic construction cost accounting procedures for implementation t:
public agencies in the performance of or in the contracting for constru
public projects;
WHEREAS, the alternate bidding procedures provided for under the A
local public agencies to perform work by force account costing up to
Thousand Dollars ($15,000) and to let contract by informal procedures
projects of Fifty Thousand Dollars ($50,000) or less.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the
Carlsbad, California, hereby elects under Public Contract Code Section :
become subject to the uniform public construction cost accounting proced
forth in the Act and to the Commissioner’s policies and procedures mal
cost accounting review procedures, as they may each from time to
amended, and directs that the City Clerk to notify the State Cor
forthwith of this election.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Co
the City of Carlsbad on the 8th day of November , 1988, by the f
vote, to wit:
AYES: Council Members Lewis, Kulchin, Pettine, Mamaux and Larson
NOES: None
ABSENT: None
ATTEST:
ALeiid'Ng~y%i 1
(SEAL)
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1200 ELM AVENUE TELEPHOI CARLSBAD, CALIFORNIA 92008 (619) 434-2
Office of the City Clerk
aitp of aarrs’bab
December 1, 1988
Office of the State Controller
Division of LGFA
P.O. Box 942850
Sacramento, CA 94250-5876
Attention: Bob Brasfield
.Enclosed for your records, please find a copy of the
, adopted Resolution 88-389 following
by the Carlsbad City Council on November 8, 1988
&<- City EE RAUTENKRANZ Clerk
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Enclosures (1)
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ORDINANCE NO. NS-43
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARUBAD, CALIFORNIA, AMENDING TITLE 3,
CHAPTER 3.28 OF THE CARLSBAD MUNICIPAL CODE BY THE AMENDMENT AND ADDITION OF VARIOUS SECTIONS TO ADOPT A PROCEDURE FOR THE INFORMAL BIDDING
OF PUBLIC CONSTRUCTION PROJECTS OF $50,000 OR LESS.
The City Council of the City of Carlsbad, Californi
ordain as follows:
SECTION I:
1.
The City Council hereby finds:
That it is the public interest for the City to
to become subject to the Uniform Public Construction
Accounting Procedures adopted by the California U
Construction Cost Accounting Commission pursuant to Public Co:
Code Section 22000 et. seq.
2. Performance of City public projects in acco
with the procedures will enable the City to perform public prc
with its own forces or by contracts awarded through inl
bidding procedures or a combination of both when it is in thc
interest of the City to do so.
3. It is the intent of the City Council that
ordinance govern the selection of contractars by the City t€
informal bidding procedures, in accordance with Public COI
Code Section 22034.
I
SECTION 2: That Title 3, Chapter 3.28 of the Car
Municipal Code is amended by the amendment of Section 3.28.C
read as follows:
3.28.080 Public ?xoiects. Contracts for public prc
shall be governed by the "Local Agency Public Construction Division 2, Part 3, Chapters 1 and 2 of the California E
Contract Code, 121100 et. seq.
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SECTION 3: That Title 3, Chapter 3.28 of the Ca
Municipal Code is amended by the addition of Section 2.28.
read as follows:
3.28.082 Alternative Drocedure - informal biddin
(a) Public projects of Fifty Thousand Dollars ($5 or less may be let to contract by informal procedures as set
in this section.
projects pursuant to subsection (a) shall be governed 1 following procedures: The Purchasing Officer shall develop a 1 qualified contractors eligible to submit bids on informal cor awarded by the City. In development and maintaining the lis Purchasing Officer shall use the minimum criteria specified California Uniform Construction Cost Accounting Comn ("Commission") . In addition, the Purchasing Officer may from the contractors' State License Board, and from constr trade associates in the county, names and addresses of qua
contractors located in the county.
(2) The list shall be organized in accordanc the license classifications of the Contractor's State I
Board.
(3) The Purchasing Officer shall publish ann in all those construction trade journals identified L Commission in accordance with Public Contract Code Section notice that the City has elected to become subject to the u public construction cost accounting procedures, that it mai a list of contractors qualified to submit bids on in contracts, and of the City office to contract for a1 infor necessary for a qualified contractor to be included on the
(4) Any licensed California contractor ma request be added to the list at any time.
(5) The Purchasing Officer shall develc provide to contractors applying for inclusion on the : simplified form requesting the applicant's name, addre: California contractors license number and classification.
(6) The Purchasing Officer shall mail r inviting informal bids to all contractors on the list of qua
contractors, for the category of work being bid, and/(
construction trade journals specified in subsection (3).
(7) The Purchasing Officer shall complei mailing of notices inviting informal bids, as requir
subsection (6) not less than ten calendar days before bids ai
(8) The notice inviting informal bids describe the project in general terms, how to obtain more dE information about the project, and state the time and place 1
receiving and opening of sealed bids.
(9) The notice inviting informal bids sh
published at least 14 calendar days before the date of openj bids in a newspaper of general circulation in the City of Car
(b) The selection of Contractors to perform
(1)
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Section 3.28.024 Emeraencies. In cases of
emergencies, as determined by the City Council, including 1
limited to, states of emergency defined- in Section 8558 California Government Code, when repair or replacemenl necessary to permit the continued conduct of the operat services a public agency or to avoid danger to life or prc the City Council, by majority vote, may proceed at once to 1 or repair any public facility without adopting the specifications, strain sheets, or working details, or giving of bids to let contracts, The work may be done by day laboi
the direction of the City Council, by its City Manag( contract, or by a combination of the two. The City Mana
hereby delegated the power to declare the public emergency t to confirmation by the City Council, by a 4/5 vote at it
regular meeting.
Section 3.28.170 Award and execution of contracl
(a) Except in emergency situations, pursua subsection (1) of Section 3.28.090, all contracts for SUE services and equipment in an estimated amount of Fifteen Tk Dollars, or more, shall be awarded by the City Council. Cor
for supplies, services and equipment in an estimated amount( than Fifteen Thousand Dollars shall be executed by thc
Manager.
of less than Twenty Five Thousand Dollars when the study or E
is financed from deposits provided by persons or organiz other than the City or when the City's share of the cost i than Five Thousand Dollars. The City Manager may determine to accomplish projects of Fifteen Thousand Dollars or less without inform: and cause them to be performed by the employees of the C force account, by negotiated contract, or by purchase ordei City Manage shall have authority to act for the City in all i of for such projects, All contracts for public projects c than Fifteen Thousand Dollars shall be awarded by the City Cc
EFFECTIVE DATE: This ordinance shall be effective
days after its adoption, and the City Clerk shall certify
adoption of this ordinance and cause it to be published at
once in the Carlsbad Journal within fifteen days aftc
adoption ,
(b) The City Manager may award contracts in an
(c)
INTRODUCED AND FIRST READ at a regular meeting
Carlsbad City Council on the 8th day of November I
and thereafter
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PASSED AND ADOPTED at a regular meeting of th
Council of the City of Carlsbad on the 22nd day of Novembf
1988, by the following vote, to wit:
AYES: Council Members Lewis, Kulchin, Pettine, Mamaux anc
NOES: None
ABSENT: None
APPROVED AS TO FORM AND LEGALITY
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1 ATTEST:
ALETHA L. RAUTENKRANZ, City Plerk
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Instructions For Adoption and Implementation Of the Uniform Construction Cost Accounting Procedures By Local Agencies
(1) Governing Board must elect by resolution to become subject to the uniform construction cost accounting procedures promulgated by the Controller pursuant to Public Contract Code Section 22019. The resolution shall specify that the local agency will meet the requirements prescribed in the California Uniform Public Construction Cost Accounting Commission's Cost Accounting Policies and Procedures Manual and state the effective date the agency will implement the accounting and bidding procedures.
Local Agency must notify the Controller in writing of the election to become subject to the uniform construction cost accounting procedures. A copy of the resolution shall also be filed with the Controller. Send to: Office of the State Controller, Division of LGFA, P. 0. Box 942850,
Sacramento, CA 94250-5876, Attention: Bob Brasfield.
When a local agency elects to become subject to the uniform construction cost accounting procedures, the entire entity is considered subject to the act and no departments will be exempt. However, Special Districts which are governed by a board of supervisors or city council are only subject if a separate election is made.
(2)
(3)
(4) An informal bidding ordinance shall be enacted pursuant to Public Contract Code Section 22034.
(5) The governing board may discontinue the agency's participation under the uniform construction cost accounting procedures by adopting a resolution stating this fact. A copy of the resolution shall be filed with the
Tho Controller shall notify the Connnission of all local agencies electing to become subject to the uniform construction cost accounting
procedures. In addition, the Commission shall also be notified of local
agencies electing to discontinue participation under these procedures.
-1-
-d IS* -A?-
e "",/pL,L, [;&/;.&< /x/ e/& k2.j. +- fi *'" ".
JUNE 10, 1987
TO : LEE RAUTENKRANZ, CITY CLERK
F RON : Assistant City Attorney
PUBLIC WORKS CONTRACTS - RELEASE OF RETENTION
Thank you for your memorandum of June 2, 1987 regarding the above-referenced subject. The retention amounts held under a public works contract should not be released until the expirat
of thirty-five (35) days following recording of the Notice of Completion pursuant to Civil Code Section 3184 which states:
"TO be effective, any Stop Notice pursuant to this
chapter must be served before the expiration of: (a)
thirty 30 days after the recording of a Notice of Completion (sometimes referred to in public works as
Notice of Acceptance) or Notice of Cessation, if such notice is recorded. . .'I (emphasis hours) .
The additional five (5) days arises from the requirement that
Stop Notice claimant served a public entity within five (5) da
after he or she commences an action to enforce that notice
pursuant to Civil Code Section 3211.
Should you have any questions regarding the above, please do n hesitate to contact me.
cz.-
RONALD R. BALL
Assistant City Attorney
arb