The Uniform Public Construction Cost Accounting Act authorizes a public agency, whose governing board has by resolution elected, to become subject to uniform construction cost accounting procedures. Existing law declares that these procedures promote statewide uniformity of the cost accounting standards and bidding procedures on construction work performed or contracted by public entities. The act defines public agency as a city, county, city and county, including chartered cities and chartered counties, any special district, and any other agency of the state for the local performance of governmental or proprietary functions within limited boundaries, and also includes a nonprofit transit corporation wholly owned by a public agency and formed to carry out the purposes of the public agency. The act authorizes public projects of $45,000 or less to be performed by the employees of a public agency, authorizes public projects of $175,000 or less to be let to contract by informal procedures, and requires public projects of more than $175,000 to be let to contract by formal bidding procedures. The act permits the governing body of a public agency, in the event all bids received for the performance of that public project are in excess of $175,000, to award the contract at $187,500 or less to the lowest responsible bidder if it determines the cost estimate of the public agency was reasonable.

This bill would instead authorize public projects of $60,000 or less to be performed by the employees of a public agency, authorize public projects of $200,000 or less to be let to contract by informal procedures, and require public projects of more than $200,000 to be let to contract by formal bidding procedures. The bill would permit the governing body of a public agency, in the event all bids received for the performance of that public project are in excess of $200,000, to award the contract at $212,500 or less to the lowest responsible bidder if it determines the cost estimate of the public agency was reasonable.

The act creates the California Uniform Construction Cost Accounting Commission. The commission is required to consider whether there have been material changes in public construction costs and to make recommendations to the Controller regarding adjustments in the monetary limits described above that determine which bidding procedures shall apply to public projects. The act requires any adjustment to be effective beginning with the fiscal year which commences not less than 60 days following the Controllers notification of the adjustment to all public agencies.

This bill would, instead, require the Controller to notify only the participating public agencies of the adjustment prior to the adjustment taking effect.

The Uniform Public Construction Cost Accounting Act authorizes a public agency, whose governing board has by resolution elected, to become subject to uniform construction cost accounting procedures. Existing law declares that these procedures promote statewide uniformity of the cost accounting standards and bidding procedures on construction work performed or contracted by public entities. The act defines public agency as a city, county, city and county, including chartered cities and chartered counties, any special district, and any other agency of the state for the local performance of governmental or proprietary functions within limited boundaries, and also includes a nonprofit transit corporation wholly owned by a public agency and formed to carry out the purposes of the public agency. The act authorizes public projects of $45,000 or less to be performed by the employees of a public agency, authorizes public projects of $175,000 or less to be let to contract by informal procedures, and requires public projects of more than $175,000 to be let to contract by formal bidding procedures. The act permits the governing body of a public agency, in the event all bids received for the performance of that public project are in excess of $175,000, to award the contract at $187,500 or less to the lowest responsible bidder if it determines the cost estimate of the public agency was reasonable.

This bill would instead authorize public projects of $60,000 or less to be performed by the employees of a public agency, authorize public projects of $200,000 or less to be let to contract by informal procedures, and require public projects of more than $200,000 to be let to contract by formal bidding procedures. The bill would permit the governing body of a public agency, in the event all bids received for the performance of that public project are in excess of $200,000, to award the contract at $212,500 or less to the lowest responsible bidder if it determines the cost estimate of the public agency was reasonable.

The act creates the California Uniform Construction Cost Accounting Commission. The commission is required to consider whether there have been material changes in public construction costs and to make recommendations to the Controller regarding adjustments in the monetary limits described above that determine which bidding procedures shall apply to public projects. The act requires any adjustment to be effective beginning with the fiscal year which commences not less than 60 days following the Controllers notification of the adjustment to all public agencies.

This bill would, instead, require the Controller to notify only the participating public agencies of the adjustment prior to the adjustment taking effect.

The Uniform Public Construction Cost Accounting Act authorizes a public agency, whose governing board has by resolution elected, to become subject to uniform construction cost accounting procedures. Existing law declares that these procedures promote statewide uniformity of the cost accounting standards and bidding procedures on construction work performed or contracted by public entities. The act defines public agency as a city, county, city and county, including chartered cities and chartered counties, any special district, and any other agency of the state for the local performance of governmental or proprietary functions within limited boundaries, and also includes a nonprofit transit corporation wholly owned by a public agency and formed to carry out the purposes of the public agency. The act authorizes public projects of $45,000 or less to be performed by the employees of a public agency, authorizes public projects of $175,000 or less to be let to contract by informal procedures, and requires public projects of more than $175,000 to be let to contract by formal bidding procedures. The act permits the governing body of a public agency, in the event all bids received for the performance of that public project are in excess of $175,000, to award the contract at $187,500 or less to the lowest responsible bidder if it determines the cost estimate of the public agency was reasonable.

This bill would instead authorize public projects of $60,000 or less to be performed by the employees of a public agency, authorize public projects of $200,000 or less to be let to contract by informal procedures, and require public projects of more than $200,000 to be let to contract by formal bidding procedures. The bill would permit the governing body of a public agency, in the event all bids received for the performance of that public project are in excess of $200,000, to award the contract at $212,500 or less to the lowest responsible bidder if it determines the cost estimate of the public agency was reasonable.

The Uniform Public Construction Cost Accounting Act authorizes a public agency, whose governing board has by resolution elected, to become subject to uniform construction cost accounting procedures. Existing law declares that these procedures promote statewide uniformity of the cost accounting standards and bidding procedures on construction work performed or contracted by public entities. The act defines public agency as a city, county, city and county, including chartered cities and chartered counties, any special district, and any other agency of the state for the local performance of governmental or proprietary functions within limited boundaries, and also includes a nonprofit transit corporation wholly owned by a public agency and formed to carry out the purposes of the public agency. The act authorizes public projects of $45,000 or less to be performed by the employees of a public agency, authorizes public projects of $175,000 or less to be let to contract by informal procedures, and requires public projects of more than $175,000 to be let to contract by formal bidding procedures.

This bill would instead authorize public projects of $60,000 or less to be performed by the employees of a public agency, authorize public projects of $200,000 or less to be let to contract by informal procedures, and require public projects of more than $200,000 to be let to contract by formal bidding procedures.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 2249

Author:(Cooley)

As Amended Ver:June 4, 2018

Majority vote

Original Committee Reference: L. GOV.

SUMMARY: Increases project cost limits specified in the Uniform Public Construction Cost Accounting Act (UPCCAA).

The Senate amendments:

1. Remove a requirement that any adjustment to the cost limits shall be effective beginning with the fiscal year which commences not less than 60 days following the Controller's notification to all public agencies of the adjustment and, instead, require the Controller to notify all participating public agencies of the adjustment prior to the effective date.
2. Allow the governing body of a public agency, by adopting a resolution by a 4/5 vote, to award a contract at $212,500 or less to the lowest responsible bidder if all bids received are in excess of $200,000 and the governing body determines the public agency's cost estimate was reasonable.

EXISTING LAW:

1. Establishes the UPCCAA, which is a voluntary program that allows public agencies to perform projects costing $45,000 or less with the public agency's force account, by negotiated contract, or by purchase order, and to use an informal bidding procedure for projects costing $175,000 or less. Projects costing more than $175,000 are subject to formal bidding procedures.
2. Allows, pursuant to the informal bidding procedures established by the UPCCAA, if all informal bids received exceed $175,000, the governing body of the public agency to award the contract at $187,500 or less to the lowest responsible bidder, as long as the governing body adopts a resolution by a 4/5 vote and determines the cost estimate was reasonable.
3. Establishes the California Uniform Construction Cost Accounting Commission (Commission) to administer the UPCCAA and requires the Commission to make recommendations to the State Controller (Controller) every five years regarding adjustments in the UPCCAA's project cost limits.

AS PASSED BY THE ASSEMBLY, this bill:

1. Increased the dollar amount of projects that may be performed pursuant to the UPCCAA by the employees of a public agency by force account, by negotiated contract, or by purchase order from $45,000 to $60,000.
2. Increased the dollar amount of projects that are subject to the UPCCAA's informal bidding procedures from $175,000 to $200,000.
3. Increased the dollar amount of projects that are subject to the UPCCAA's formal bidding requirements from $175,000 to $200,000.

FISCAL EFFECT: None

COMMENTS:

1. Bill Summary. This bill increases project cost limits specified in the UPCCAA by:
   1. Increasing the dollar amount of projects that may be performed by the employees of a public agency by force account, by negotiated contract, or by purchase order from $45,000 to $60,000;
   2. Increasing the informal bidding threshold from $175,000 to $200,000; and,
   3. Increasing the formal bidding threshold from $175,000 to $200,000.

This bill also allows a public agency to exceed the $200,000 threshold and award a contract at $212,500 or less in cases where all bids exceed $200,000, and the governing body approves the higher amount by adopting a resolution by a four-fifths vote and determines the public agency's cost estimate was reasonable. This bill also allows the Controller to notify only participating public agencies, rather than all public agencies, of the cost limit changes. This bill is sponsored by State Controller Betty T. Yee.

1. Author's Statement. According to the author, "The UPCCAA was created in 1983 to permit local agencies to use informal bidding procedures for some public works contracts, up to a certain dollar amount and if the local agency uses specified accounting procedures. Every five years, the Commission reviews the current bid limits, and if they recommend adjusting the bid limit, the State Controller may then decide to accept or reject the recommendation. If the Controller accepts the recommendation, it is then up to the Legislature to amend the UPCCAA. This bill codifies the Commission's recommendation from its September, 2017 meeting."
2. Background. The Public Contract Code specifies the procedures that public agencies must follow when they build public works projects, including limits on project costs. The UPCCAA was enacted in 1983 as an alternative to these general requirements by allowing increased bid limits as long as participating agencies follow uniform accounting standards and bidding procedures. A voluntary program that is available to all public entities in the State, the UPCCAA allows public projects costing $45,000 or less to be performed by the public agency's force account, by negotiated contract, or by purchase order. Projects costing $175,000 or less can use informal bidding procedures set forth in the UPCCAA. Projects that cost more than $175,000 must be put out to bid under formal bidding procedures.

The Commission administers the UPCCAA and provides technical support to public agencies by prescribing uniform construction cost accounting procedures for agencies that opt into the UPCCAA. The Commission also reviews public complaints and recommends audits when the criteria of the UPCCAA are not fulfilled. In addition, the Commission conducts meetings open to the public, provides a manual for use by public agencies signatory to the UPCCAA and maintains a Commission web page on the Controller's website. Commissioners also facilitate and participate in outreach and training to participating agencies, candidate agencies, and professional organizations.

The UPCCAA requires the Commission to review the Act's force account and bid limits every five years to account changes in public construction costs. If the Commission recommends higher limits, the Controller promulgates the new limits and the Legislature amends the UPCCAA to reflect the adjusted amounts. This last occurred via AB 720 (Hall) Chapter 683, Statutes of 2011. The Commission on September 28, 2017, passed a resolution recommending that the Controller increase the UPCCAA bid limits to the amounts contained in this bill.

1. Arguments in Support. State Controller Betty T. Yee, sponsor of this measure, states, "The UPCCAA promotes consistency in accounting and bidding for construction work performed by or contracted for public entities in the state. This is a voluntary opt-in program for public agencies…(The UPCCAA) requires the Commission to review the current bid limits to account for higher costs...If the Controller accepts the recommendation, he or she must request the Legislature to amend the UPCCAA to reflect the adjusted bid limits in statute."
2. Arguments in Opposition. None on file.

Analysis Prepared by: Angela Mapp / L. GOV. / (916) 319-3958 FN: 0003606

 CONSENT  

Bill No: AB 2249

Author:

:

Vote:

SENATE GOVERNANCE & FIN. COMMITTEE: 7-0, 6/13/18

AYES: McGuire, Nguyen, Beall, Hernandez, Hertzberg, Lara, Moorlach

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 71-0, 4/19/18 (Consent) - See last page for vote

SUBJECT:

SOURCE: California State Controller

DIGEST:

This bill increases the Uniform Public Construction Cost Accounting Act’s informal bid limits.

ANALYSIS:

Existing law:

1. Establishes the Uniform Public Construction Cost Accounting Act (UPCCAA), which is a voluntary program that allows public agencies to perform projects costing $45,000 or less with the public agency’s force account, by negotiated contract, or by purchase order, and to use an informal bidding procedure for projects costing $175,000 or less. Projects costing more than $175,000 are subject to formal bidding procedures.
2. Allows, pursuant to the informal bidding procedures established by the UPCCAA, if all informal bids received exceed $175,000, the governing body of the public agency to award the contract at $187,500 or less to the lowest responsible bidder, as long as the governing body adopts a resolution by a 4/5 vote and determines the cost estimate was reasonable.
3. Establishes the California Uniform Construction Cost Accounting Commission (Commission) to administer the UPCCAA and requires the Commission to make recommendations to the State Controller (Controller) every five years regarding adjustments in the UPCCAA's project cost limits.

This bill:

1. Increases several bid limits for public agencies participating in the UPCCAA. Specifically, this bill increases:
   1. The dollar amount of projects that may be performed by the employees of a public agency by force account, by negotiated contract, or by purchase order from $45,000 to $60,000;
   2. The informal bidding threshold from $175,000 to $200,000;
   3. The formal bidding threshold from $175,000 to $200,000; and
   4. The informal bidding threshold from $187,500 to $212,500 if all bids received are in excess of $200,000 (instead of all bids being above $175,000 as in current law).
2. Clarifies the notification requirements and effective date of the adjustments to require the Controller to notify all public agencies prior to the effective date of the adjustment.

Background

The UPCCAA requires the Commission to review the Act's limits on contracting by force account (without bidding) and its bid limits every five years to account changes in public construction costs. If the Commission recommends higher limits, the Controller promulgates the new limits and the Legislature amends the UPCCAA to reflect the adjusted amounts. Any adjustment becomes effective at the start of the next fiscal year that is at least 60 days after the Controller notifies public agencies of the adjustment.

The Legislature last increased force account and bid limits in 2011 (AB 720, Hall, Chapter 683). Accordingly, the UPCCAA currently allows public projects costing $45,000 or less to be performed by the public agency’s force account, by negotiated contract, or by purchase order. Projects costing $175,000 or less can use informal bidding procedures set forth in the UPCCAA. Projects that cost more than $175,000 must be put out to bid under formal bidding procedures. The UPCCAA also provides an alternative cost cap in the event that all informal bids exceed $175,000. In this case, a local agency can award a contract at $187,500 or less to the lowest responsible bidder if the governing body determines that the public agency’s cost estimate was reasonable and it adopts a resolution by a 4/5 vote.

At its September 28, 2017, meeting, the Commission voted to increase bid thresholds to account for increased construction costs, as follows:

• Increase bid limits for employees of a public agency by force account, negotiated contract, or negotiated purchase order with a contractor from $45,000 to $60,000;
• Increase bid limits for public projects that can be contracted through informal procedures from $175,000 to $200,000; and
• Increase bid limits for public projects that must be contracted through formal procedures to $200,000.

The Commission also voted to increase the alternative cost cap to $212,500 if all informal bids are above $200,000 and to clarify when public agencies must be notified of its determinations at its May 17, 2018, meeting. The State Controller’s Office wants the Legislature to amend the UPCCAA to reflect its recent determinations.

Comments

Purpose of the bill. AB 2249 codifies the higher bid limits that the Commission recently adopted for projects performed by force account, the bid limit for projects that may be bid for through informal procedures, and the bid limit that applies when all informal bids on a project exceed the informal bid limit specified by the Commission. By increasing these limits to account for rapidly escalating construction costs, AB 2249 helps ensure that local agencies will continue to benefit from the UPCCAA’s flexibility and efficiency when they contract for public works. At the Commission’s request, AB 2249 also clarifies the responsibility of the Commission to notify public agencies of its determination, ensuring that these limits can become effective more quickly and reducing confusion.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 6/27/18)

California State Controller (source)

California Coalition for Adequate School Housing

California Special Districts Association

Community College Facility Coalition

County School Facilities Consortium

Los Angeles County Office of Education

Los Rios Community College District

Rural County Representatives of California

OPPOSITION: (Verified 6/27/18)

None received

ASSEMBLY FLOOR: 71-0, 4/19/18

AYES: Acosta, Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bigelow, Bloom, Bonta, Brough, Burke, Caballero, Carrillo, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dahle, Daly, Eggman, Flora, Fong, Frazier, Friedman, Gallagher, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk-Silva, Reyes, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon

NO VOTE RECORDED: Calderon, Cristina Garcia, Eduardo Garcia, Melendez, Mullin, Quirk, Rodriguez

Prepared by:

6/27/18 16:25:51

**** END ****

SENATE COMMITTEE ON GOVERNANCE AND FINANCE

Senator Mike McGuire, Chair

2017 - 2018 Regular

Public contracts: local agencies: alternative procedure

Increases the Uniform Public Construction Cost Accounting Act’s informal bid limits.

Background

The Public Contract Code spells out the procedures that local officials follow when they build public works projects, including limits on the contracts' values. When counties, cities, special districts, school districts, and community college districts voluntarily adopt the standards and procedures of the Uniform Public Construction Cost Accounting Act (UPCCAA), they can use higher limits for their contracts (Public Contract Code §22000, enacted by AB 1666, Cortese, 1983). About 1,220 local agencies participate in the UPCCAA. The UPCCAA created the Uniform Construction Cost Accounting Commission (Commission), which is responsible for administering the UPCCAA. The Commission consists of 14 members: 13 are appointed by the State Controller and one is a designated member of the Contractors State License Board. Seven members represent the public sector (counties, cities, school districts, and special districts) and six members represent the private sector (public works contractors and unions).

The Commission administers the UPCCAA and provides technical support to public agencies by prescribing uniform construction cost accounting procedures for agencies that opt into the UPCCAA. The Commission also reviews public complaints and recommends audits when the criteria of the UPCCAA are not fulfilled. In addition, the Commission conducts meetings open to the public, provides a manual for use by public agencies signatory to the UPCCAA, and maintains a Commission web page on the Controller's website. Commissioners also facilitate and participate in outreach and training to participating agencies, candidate agencies, and professional organizations.

The UPCCAA requires the Commission to review the Act's limits on contracting by force account (without bidding) and its bid limits every five years to account changes in public construction costs. If the Commission recommends higher limits, the Controller promulgates the new limits and the Legislature amends the UPCCAA to reflect the adjusted amounts. Any adjustment becomes effective at the start of the next fiscal year that is at least 60 days after the Controller notifies public agencies of the adjustment.

The Legislature last increased force account and bid limits in 2011 (AB 720, Hall). Accordingly, the UPCCAA currently allows public projects costing $45,000 or less to be performed by the public agency’s force account, by negotiated contract, or by purchase order. Projects costing $175,000 or less can use informal bidding procedures set forth in the UPCCAA. Projects that cost more than $175,000 must be put out to bid under formal bidding procedures. The UPCCAA also provides an alternative cost cap in the event that all informal bids exceed $175,000. In this case, a local agency can award a contract at $187,500 or less to the lowest responsible bidder if the governing body determines that the public agency’s cost estimate was reasonable and it adopts a resolution by a 4/5^ths vote.

At its September 28^th, 2017 meeting, the Commission voted to increase bid thresholds to account for increased construction costs, as follows:

• Increase bid limits for employees of a public agency by force account, negotiated contract, or negotiated purchase order with a contractor from $45,000 to $60,000;
• Increase bid limits for public projects that can be contracted through informal procedures from $175,000 to $200,000; and
• Increase bid limits for public projects that must be contracted through formal procedures to $200,000.

The Commission also voted to increase the alternative cost cap to $212,500 if all informal bids are above $200,000 and to clarify when public agencies must be notified of its determinations at its May 17^th, 2018, meeting. The State Controller’s Office wants the Legislature to amend the UPCCAA to reflect its recent determinations.

Proposed Law

Assembly Bill 2249 increases several bid limits for public agencies participating in the UPCCAA. Specifically, AB 2249 increases:

• The dollar amount of projects that may be performed by the employees of a public agency by force account, by negotiated contract, or by purchase order from $45,000 to $60,000;
• The informal bidding threshold from $175,000 to $200,000;
• The formal bidding threshold from $175,000 to $200,000; and
• The informal bidding threshold from $187,500 to $212,500 if all bids received are in excess of $200,000 (instead of all bids being above $175,000 as in current law).

AB 2249 also clarifies the notification requirements and effective date of the adjustments to require the Controller to notify all public agencies prior to the effective date of the adjustment.

State Revenue Impact

No estimate.

Comments

Purpose of the bill. AB 2249 codifies the higher bid limits that the California Uniform Public Construction Cost Accounting Commission recently adopted for projects performed by force account, the bid limit for projects that may be bid for through informal procedures, and the bid limit that applies when all informal bids on a project exceed the informal bid limit specified by the Commission. By increasing these limits to account for rapidly escalating construction costs, AB 2249 helps ensure that local agencies will continue to benefit from the UPCCAA’s flexibility and efficiency when they contract for public works. At the Commission’s request, AB 2249 also clarifies the responsibility of the Commission to notify public agencies of its determination, ensuring that these limits can become effective more quickly and reducing confusion.

Assembly Actions

Assembly Local Government Committee: 9-0

Assembly Floor: 71-0

Support and Opposition

(6/7/18)

Support: California State Controller (sponsor); California Coalition for Adequate School Housing; California Special Districts Association; Community College Facility Coalition; County School Facilities Consortium; Los Angeles County Office of Education; Los Rios Community College District; Rural County Representatives of California.

Opposition: Unknown.

-- END --

Date of Hearing: April 11, 2018

ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT

Cecilia Aguiar-Curry, Chair

ABPCA Bill Id:AB 2249 (

Author:Cooley) – As Introduced Ver:February 13, 2018

SUBJECT: Public contracts: local agencies: alternative procedure.

SUMMARY: Increases project cost limits specified in the Uniform Public Construction Cost Accounting Act (UPCCAA). Specifically, this bill:

1. Increases the dollar amount of projects that may be performed pursuant to the UPCCAA by the employees of a public agency by force account, by negotiated contract, or by purchase order from $45,000 to $60,000.
2. Increases the dollar amount of projects that are subject to the UPCCAA's informal bidding procedures from $175,000 to $200,000.
3. Increases the dollar amount of projects that are subject to the UPCCAA's formal bidding requirements from $175,000 to $200,000.

EXISTING LAW:

1. Establishes the UPCCAA, which is a voluntary program that allows public agencies to perform projects costing $45,000 or less with the public agency’s force account, by negotiated contract, or by purchase order, and to use an informal bidding procedure for projects costing $175,000 or less. Projects costing more than $175,000 are subject to formal bidding procedures.
2. Allows, pursuant to the informal bidding procedures established by the UPCCAA, if all informal bids received exceed $175,000, the governing body of the public agency to award the contract at $187,500 or less to the lowest responsible bidder, as long as the governing body adopts a resolution by a 4/5 vote and determines the cost estimate was reasonable.
3. Establishes the California Uniform Construction Cost Accounting Commission (Commission) to administer the UPCCAA and requires the Commission to make recommendations to the State Controller (Controller) every five years regarding adjustments in the UPCCAA's project cost limits.

FISCAL EFFECT: None

COMMENTS:

1. Bill Summary. This bill increases project cost limits specified in the UPCCAA by:
   1. Increasing the dollar amount of projects that may be performed by the employees of a public agency by force account, by negotiated contract, or by purchase order from $45,000 to $60,000;
   2. Increasing the informal bidding threshold from $175,000 to $200,000; and,
   3. Increasing the formal bidding threshold from $175,000 to $200,000.

This bill is sponsored by State Controller Betty T. Yee.

1. Author's Statement. According to the author, "The UPCCAA was created in 1983 to permit local agencies to use informal bidding procedures for some public works contracts, up to a certain dollar amount and if the local agency uses specified accounting procedures. Every five years, the Commission reviews the current bid limits, and if they recommend adjusting the bid limit, the State Controller may then decide to accept or reject the recommendation. If the Controller accepts the recommendation, it is then up to the Legislature to amend the UPCCAA. This bill codifies the Commission’s recommendation from its September, 2017 meeting."
2. Background. The Public Contract Code specifies the procedures that public agencies must follow when they build public works projects, including limits on project costs. The UPCCAA was enacted in 1983 as an alternative to these general requirements by allowing increased bid limits as long as participating agencies follow uniform accounting standards and bidding procedures. A voluntary program that is available to all public entities in the State, the UPCCAA allows public projects costing $45,000 or less to be performed by the public agency’s force account, by negotiated contract, or by purchase order. Projects costing $175,000 or less can use informal bidding procedures set forth in the UPCCAA. Projects that cost more than $175,000 must be put out to bid under formal bidding procedures.

The Commission administers the UPCCAA and provides technical support to public agencies by prescribing uniform construction cost accounting procedures for agencies that opt into the UPCCAA. The Commission also reviews public complaints and recommends audits when the criteria of the UPCCAA are not fulfilled. In addition, the Commission conducts meetings open to the public, provides a manual for use by public agencies signatory to the UPCCAA and maintains a Commission web page on the Controller's website. Commissioners also facilitate and participate in outreach and training to participating agencies, candidate agencies, and professional organizations.

The UPCCAA requires the Commission to review the Act's force account and bid limits every five years to account changes in public construction costs. If the Commission recommends higher limits, the Controller promulgates the new limits and the Legislature amends the UPCCAA to reflect the adjusted amounts. This last occurred via AB 720 (Hall). The Commission on September 28, 2017, passed a resolution recommending that the Controller increase the UPCCAA bid limits to the amounts contained in this bill.

1. Technical Amendment. As noted above, the UPCCAA specifies the procedures a public agency must follow for informal bidding, including a project cost limit of $175,000. However, the UPCCAA provides an alternative cost cap in the event that all informal bids exceed $175,000. In this case, a local agency can award a contract at $187,500 or less to the lowest responsible bidder if the governing body determines that the public agency’s cost estimate was reasonable and it adopts a resolution by a 4/5 vote. This bill codifies the increased force account and bid limits that the Commission recently adopted, but it does not increase the amounts specified in this exception. The Committee may wish to adopt a technical, conforming amendment to this exception to ensure consistency within the UPCCAA.
2. Arguments in Support. State Controller Betty T. Yee, sponsor of this measure, states, "The UPCCAA promotes consistency in accounting and bidding for construction work performed by or contracted for public entities in the state. This is a voluntary opt-in program for public agencies…(The UPCCAA) requires the Commission to review the current bid limits to account for higher costs...If the Controller accepts the recommendation, he or she must request the Legislature to amend the UPCCAA to reflect the adjusted bid limits in statute."
3. Arguments in Opposition. None on file.

REGISTERED SUPPORT / OPPOSITION:

Support

State Controller Betty T. Yee [SPONSOR]

Coalition for Adequate School Housing (CASH)

Community College Facility Coalition

Rural County Representatives of California

San Luis Obispo County

Opposition

None on file

Analysis Prepared by: Angela Mapp / L. GOV. / (916) 319-3958