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    26.    
City Council Regular
Meeting Date: 12/11/2018  

SUBJECT:
INCREASE OF INFORMAL PUBLIC CONTRACTS LIMITS
RECOMMENDATION:
  1. Introduce an Ordinance entitled:  AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHINO HILLS, CALIFORNIA, AMENDING CHAPTER 3.20 OF THE CHINO HILLS MUNICIPAL CODE TO INCREASE THE INFORMAL BID LIMITS FOR PUBLIC CONTRACTS AWARDED PURSUANT TO CHAPTER 3.20 TO $200,000, AND AUTHORIZE THE CITY MANAGER TO AWARD SUCH CONTRACTS IN AN AMOUNT NOT TO EXCEED $200,000 AND AMEND THE AUTHORITY TO NEGOTIATE CONTRACTS, AWARD PURCHASE ORDERS OR PERFORM WORK BY CITY EMPLOYEES BY FORCE ACCOUNT ON PUBLIC PROJECTS IN AN AMOUNT NOT TO EXCEED $60,000.
     
  2. Adopt a Resolution entitled:  A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO HILLS, CALIFORNIA, DELEGATING AUTHORITY TO THE CITY MANAGER TO AWARD INFORMAL PUBLIC CONTRACTS IN AN AMOUNT OF $200,000 OR LESS AND AMEND THE AUTHORITY  TO NEGOTIATE CONTRACTS, AWARD PURCHASE ORDERS OR PERFORM WORK BY CITY EMPLOYEES BY FORCE ACCOUNT ON PUBLIC PROJECTS IN AN AMOUNT NOT TO EXCEED $60,000.
BACKGROUND/ANALYSIS:
The California Uniform Public Construction Cost Accounting Act (CUPCCAA) specified the thresholds for informal bidding procedures for public projects which are in the amount of $175,000 or less. Further, the CUPCCAA specified the threshold for public projects performed by negotiated contract, by purchase order, or by force account to be at a maximum limit of $45,000.

Assembly Bill 2249 was signed by the Governor on August 20, 2018, and the Legislature amended the CUPCCAA state law to raise the threshold for informal bidding procedures for public projects to $200,000, and the threshold for public projects performed by negotiated contract, by purchase order, or by force account to $60,000 or less effective January 1, 2019.

Proposed Ordinance
The existing Chino Hills Municipal Code, Chapter 3.20, establishes informal bidding procedures for public projects and adopts a threshold of not more than $175,000 for such contracts. The threshold for public projects performed by negotiated contract, by purchase order, or by force account is $45,000.  The proposed Ordinance, if approved, will amend Chapter 3.20 to increase the limit to not exceed $200,000 for public projects and to permit public projects of $60,000 or less to be performed by City employees by force account, by negotiated contract, or by purchase order. 

Additionally, the Ordinance will amend the chapter to delegate authority to award informally bid contracts to the City Manager or designee by separate resolution of the City Council in an amount not to exceed $200,000.

Proposed Resolution To Modify City Manager's Delegated Authority
Existing Resolution No. 2014R-14 delegates authority to the City Manager to award informally bid public project contracts in an amount of $175,000 or less and authorizes public projects, which do not exceed $45,000, to be performed by City employees by force account, by negotiated contract or by purchase order.  The proposed Resolution, if approved, will increase the informal bid limit to $200,000.  The resolution will also increase the limit to $60,000 for projects to be performed by force account, by negotiated contract or by purchase order. These limits, if approved, will take effect on thirty days after the ordinance is adopted.
ENVIRONMENTAL (CEQA) REVIEW:
This proposed action is exempt from review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and CEQA Guidelines (Title 14 California Code of Regulations §§ 15000, et seq.), because it does not involve any commitment to a specific project which could result in a potentially significant physical impact on the environment; and, constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment.  Accordingly, this action does not constitute a "project" that requires environmental review (see specifically 14 CCR §15378(b)(4-5)).
FISCAL IMPACT:
There is no fiscal impact for this agenda item.
REVIEWED BY OTHERS:
This agenda item has been reviewed by the City Attorney.
Attachments
Assembly Bill 2249
Ordinance
Resolution

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