title
ADMINISTRATION - Administrative Services Director Dava Kohlman and Administrative Analyst Tom Provine
end
Requested Action(s)
recommendation
a) INFORMATIONAL PRESENTATION - Receive presentation regarding the Uniform Public Construction Cost Accounting Act (CUPCCAA)
b) ORDINANCE NO. 2136 - Request adoption of an ordinance amending Chapter 4.24 of the Tehama County Code to provide informal bidding procedures under the Uniform Public Construction Cost Account Act (Section 22000, et. Seq. of the Public Contract Code)
1) Waive the first reading
2) Accept the introduction
c) RESOLUTION - Review Resolution electing to become subject to the Act, with resolution to be presented for adoption at second reading
body
Financial Impact:
There will be staff time necessary to implement the new procedures and accounting standards; however, this will be greatly offset by the staff time saved with the reduction of bid packets necessary to prepare for the formal bid process.
Background Information:
For public projects under the Public Contract Code (PCC), small counties are required to use informal bidding for projects four thousand dollars ($4,000) or more and formal bidding for projects ten thousand ($10,000) or more, unless the project can use the Job Order Contracting process. However, there is an alternate procedure that is set forth in the Public Contract Code, known as the Unform Public Construction Cost Accounting Act (CUPCCAA), which may be voluntarily adopted by local agencies.
Under the Act:
• Projects $60,000 or less may be done by negotiated contract, purchase order or by the County’s own staff (force account);
• Projects over $60,000 but less than $200,000 may use informal bidding procedures as set forth in the act;
• Projects over $200,000 must use formal, sealed bidding procedures.
**** Note: These limits are expected to increase in the future pursuant to PCC 22020.
For lower-cost projects, adoption of this alternate bidding procedure will reduce the administrative burden of the formal bid process due to the ability to use a more streamlined bidding process. This will allow for projects to be expedited and completed without the delays associated with the formal bid process. Even though the CUPCCAA reduces the use of a formal, sealed bid process, solicitation may still involve multiple quotes before engaging in work; therefore, price comparison and negotiation may still occur even if projects are not subject to a sealed bid process.
Adoption by Other California Agencies: 1,618 participating agencies
• Counties - 46
• Cities - 297
• Schools - 778
• Community Colleges - 68
• Special Districts - 429
For most of these agencies, the purpose of adopting the Act provisions was for greater contracting flexibility, not the greater use of in-house staff. The County, as a practical matter, will likely not perform many in-house construction projects with force account labor but rather will use the provisions applying to the act allowing contracts $60,000 or less to be issued without informal or formal bidding, and allowing contracts $200,000 or less to be issued with informal bidding. Contracts more than $200,000 are subject to a formal bidding process. Projects completed in-house may be increased in the future depending on the staffing level of Facilities Maintenance staff.
The County evaluated using the Act several years ago but decided not to use it at that time due to the concern of the additional administrative burden. After review of work order software now available, Staff believes that the administrative work imposed by the Act is greatly offset by the benefits that the Act will provide.
The following summarizes advantages and disadvantages of adopting the Act:
Advantages:
• Expedited contracting for small public projects
• Ability to focus on local contractors qualified to perform the work
• Thresholds evaluated for adjustment by the Commission every five years
Disadvantages:
• Learning and implementing new rules and procedures takes staff time, especially when confronted with many competing needs
• If projects are performed using in-house staff, there are specific accounting requirements that must be followed.
There are two relatively simple Board actions required for implementation: 1) Resolution electing to become subject to the Act; and 2) Ordinance adopting informal bid procedure for public projects. After adoption, the resolution is forwarded to the Office of the State Controllers Office.
The Administrative Office will be responsible for any compliance relative to improvements and repairs to County facilities. The Public Works department will be responsible for compliance related to the construction, repair or maintenance of County roads.