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HomeMy WebLinkAbout09. Adopt revisions to Board Policy No. BP 036 - Informal Bidding Page 1 of 5 Item 9. CENTRAL SAN BOARD OF DIRECTORS vie . , Hill. , , . . POSITION PAPER MEETING DATE: NOVEMBER 7, 2019 SUBJECT: ADOPT PROPOSED REVISIONS TO BOARD POLICY NO. BP 036 - INFORMAL BIDDING SUBMITTED BY: INITIATING DEPARTMENT: KATIE YOUNG, SECRETARY OF THE SECRETARY OF THE DISTRICT DISTRICT REVIEWED BY: EDGAR LOPEZ, CAPITAL PROJECTS DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING & TECHNICAL SERVICES PHILIP LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION Roger S. Bailey Kenton L. Alm General Manager District Counsel ISSUE Revisions to Board policies require Board approval. BACKGROUND 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 by 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. November 7, 2019 Regular Board Meeting Agenda Packet- Page 79 of 414 Page 2 of 5 The policies were brought to the Administration Committee on October 22, 2019 as separate items for ease of review and action. With regard to BP 036 - Informal Bidding, the Committee recommended Board approval of the following revisions as proposed by staff: 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 $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 the changes are 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 Board approval. 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 November 7, 2019 Regular Board Meeting Agenda Packet- Page 80 of 414 Page 3 of 5 ATTACHMENTS: 1. BP 036 - Informal Bidding (with proposed changes in strikeout) November 7, 2019 Regular Board Meeting Agenda Packet- Page 81 of 414 Page 4 of 5 Number: BP 036 Authority: Board of Directors Adopted: August 16, 2018 Revised: 11/07/19 Reviewed: 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 $ 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 $ 5200,000* 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. November 7, 2019 Regular Board Meeting Agenda Packet- Page 82 of 414 Page 5 of 5 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] November 7, 2019 Regular Board Meeting Agenda Packet- Page 83 of 414