HomeMy WebLinkAbout3.c. Review Draft Position Paper to Adopt proposed revisions to BP 036- Informal Bidding Page 1 of 4
Item 3.c.
Algi CENTRAL SAN BOARD OF DIRECTORS
POSITION PAPER
DRAFT
MEETING DATE: OCTOBER 22, 2019
SUBJECT: REVIEW DRAFT POSITION PAPER TO ADOPT PROPOSED REVISIONS
TO BOARD POLICY NO. BP 036 - INFORMAL BIDDING
SUBMITTED BY: INITIATING DEPARTMENT:
DONNA ANDERSON, ASSISTANT TO THE SECRETARYOF THE DISTRICT
SECRETARY OF THE DISTRICT
KATI E YOUNG, SECRETARY OF THE
DISTRICT
REVIEWED BY: EDGAR LOPEZ, CAPITAL PROJECTS DIVISION MANAGER
JEAN-MARC PETIT, DIRECTOR OF ENGINEERING & TECHNICAL
SERVICES
PHILIP LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION
KENTON L.ALM, DISTRICT COUNSEL/ ROGER S. BAILEY, GENERAL
MANAGER
ISSUE
On August 16, 2018, the Board adopted new Board Policy No. BP 036 - Informal Bidding related to
Central San's adoption of informal bidding procedures under the Uniform Public Construction Cost
Accounting Act (UPCCAA).
This new policy was reviewed the Administration Committee in August 2018, along with two other new
policies: BP 035 — Purchasing, and BP 037 — Delegation of Authority to General Manager. The
Committee suggested that, if adopted by the Board, all three policies be reviewed by staff prior to their
normal biennial review to consider any fine tuning. All three policies are being brought forth at this time as
separate agenda items for ease of review and action.
BACKGROUND
The following changes are being proposed to BP 036 — Informal Bidding:
1. Increased UPCCAA Bidding Limits. Effective January 1, 2019, the State of California increased
the limits associated with the UPCCAA. The previous limit of $45,000, above which informal
bidding would be required, was increased to $60,000. The previous limit for formal bidding of
October 22, 2019 Regular ADM IN Committee Meeting Agenda Packet- Page 21 of 242
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$175,000 was increased to $200,000; public contracts above that limit require formal bidding. These
changes were anticipated when BP 036 and BP 037 were adopted in 2018 and both policies include
language providing that that higher limits will automatically go into effect upon adoption. The
proposed revisions merely insert those higher limits and maintain similar language that the policy will
conform to any future bid limit changes adopted by the State.
2. Section 3.a. On the advice of District Counsel Kent Alm, several words were added to this
paragraph for clarity.
3. Sections 4 and 5. Staff considered moving these two sections to an Administrative Procedure
because they are more procedural in nature than is usually included in a Board policy. However,
upon discussion with District Counsel, it was learned that the UPCCAA mandates that these
provisions be adopted by the Board. Therefore, they were left in the policy and staff proposes a few
minor wording changes for clarity purposes.
The above proposed changes are shown in strikeout in Attachment 1. If approved by the Board, BP 036
— Informal Bidding will come up for regular biennial review two years from now.
ALTERNATIVES/CONSIDERATIONS
The Board could choose not to adopt the proposed revisions to B P 036, or the Board could provide some
other direction to staff.
FINANCIAL IMPACTS
There are no fiscal impacts anticipated from adopting the proposed revisions.
COMMITTEE RECOMMENDATION
Staff presented these proposed revisions to the Administration Committee on October 22, 2019, and the
Committee recommended
RECOMMENDED BOARD ACTION
Adopt proposed revisions to BP 036 - Informal Bidding, effective immediately.
Strategic Plan Tie-In
GOAL THREE:Be a Fiscally Sound and Effective Water Sector Utility
Strategy 2- Manage costs
GOAL FIVE:Maintain a Reliable Infrastructure
Strategy 2- Facilitate long-term capital renewal and replacement
ATTACHMENTS:
1. BP 036 - Informal Bidding (with proposed changes in strikeout)
October 22, 2019 Regular ADM IN Committee Meeting Agenda Packet- Page 22 of 242
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Number: BP 036 ATTACHMENT 1
Authority: Board of Directors
Adopted: 8/16/18
Revised: _/ /19
Reviewed: Draft
Initiating Dept./Div.: Engineering/
Capital Projects CENTRALSAN
BOARD POLICY
INFORMAL BIDDING
PURPOSE
To establish a Central Contra Costa Sanitary District (Central San) Board Policy on
informal bidding pursuant to the Uniform Public Construction Cost Accounting Act
(UPCCAA) (California Public Contract Code (PCC) §§22000-22045).
POLICY
1. District Projects, as defined by PCC §20801, may be let to contract by the
informal procedures as set forth in the UPCCAA.
2. The Central San Board delegates the authority to award such informal bid
contracts to the General Manager or his designee.
3. UPCCAA Bidding Thresholds for District Projects
a. District Projects of $4560,000* or less may be performed by the
employees of the District by force account, negotiated contract, er-by
purchase order, or competitive quotes in accordance with the UPCCAA.
b. District Projects of greater than $60,000 and less than $4-7-5200,000* er
less may be let to contract by informal bidding procedures as set forth in
the UPCCAA.
1) If a District Project was let to contract by informal bidding under the
UPCCAA procedures, then Board approval is required for a change
order to the public project that would cause the total cost of the
project to exceed $4-75200,000*.
C. District Projects of more than $4-75200,000* must be let to contract by the
formal bidding procedures set forth in the PCC.
These limits shall be raised concurrently with changes to the UPCCAA.
October 22, 2019 Regular ADMIN Committee Meeting Agenda Packet- Page 23 of 242
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Number: BP 036
INFORMAL BIDDING
Page 2of2
4. Notice to Contractors Inviting Informal Bids
a. Central San will maintain a list of qualified contractors, identified by
categories of work. Contractors on the list for the category of work being
bW-solicited will be moiled faxed or emailed a notice inviting informal bids
or quotes at least 10 calendar days before bids are due.
b. Alternatively, Central San may elect to moil fax er email a notice inviting
informal bids or quotes to the applicable construction trade journals
specified in PCC §22036 or Central San's electronic bid management
system (i.e. PlanetBids).
C. The notice inviting informal bids must describe the project in general terms
and how to obtain more detailed information about the project and state
the time and place for the submission of bids.
5. Rejection of Bids
a. In its discretion, Central San may reject any bids by providing written
notice pursuant to the terms of PCC §22038.
b. If a contract is awarded, it must be awarded to the lowest responsible
bidder. If two or more bids are the same and the lowest, Central San may
accept the one it chooses.
C. If no bids are received through the formal or informal procedure, the
project may be performed by the employees of Central San by force
account or negotiated contract without further complying with the
UPCCAA.
6. Prohibition on Splitting Projects to Evade Bidding Thresholds
District Projects shall not be split or separated into smaller work orders or
projects for the purpose of evading the provisions of the UPCCAA requiring work
to be done by contract after formal or informal competitive bidding.
[Original retained by the Secretary of the District]
October 22, 2019 Regular ADMIN Committee Meeting Agenda Packet- Page 24 of 242