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BACKGROUND On August 20, 2018, Governor Brown signed Assembly Bill 2249 to increase the bid limits set forth in the Uniform Public Construction Cost Accounting Act (the Act.) Historically, the City's Municipal Code has mirrored state law with regard to bidding procedures for public projects. Both the Act, and the City's municipal code, currently authorize public projects of $45,000 or less to be let without competitive bidding, authorize public projects of $175,000 or less to be let by informal bidding procedures, and require public projects of more than $175,000 to be let by formal bidding procedures. The change in law signed by Governor Brown will increase these amounts from $45,000 to $60,000, and from $175,000 to $200,000 respectively. These changes would go into effect on January 1, 2019. DISCUSSION Enacted in 1983, the Act (Public Contract Code section 22000 et seq.,) provides that the State's California Uniform Construction Cost Accounting Commission must review the bid limits every five years for inflation and other factors to determine whether adjustments should be made. The last increase took effect seven years ago, in 2011. Staff proposes to amend the PMC to increase bidding limits with an effective date of January 1, 2019. (See proposed ordinance amendments.) In addition to amending the PMC, staff will modify the dollar limits contained in the City's Purchasing Procedures and Manual which was last reviewed and approved by the City Council in December 2017. (See attached modifications to the Purchasing Procedures and Manual, pages 4, 8, 12 and 13.) Submitted by: Approved by: ogaW I A/161— Daniel Sodergren Nelson Fialho City Attorney City Manager Attachments: 1. Proposed ordinance amendments 2. Proposed changes to the Purchasing Procedures and Manual Page 2of2