San Rafael streamlines public works contract approvals

San Rafael is streamlining contract approvals for certain public works projects to lessen the administrative burden on city staff.

A new ordinance approved Tuesday came about because officials said the city’s spending caps for minor public works contracts had fallen behind the rising construction cost indexes, encumbering staff and sometimes hampering routine projects.

A recent construction trade report showed that costs have increased more 30% in the last decade, and the annual inflation rate was 8.5% in May, the city said.

“This will help us move forward more quickly with storm drain repair or replacement, sidewalk repair or road striping projects, a lot of maintenance or refresh projects,” said Joanna Kwok, a civil engineer with the city.

The city’s limit to exempt contracts from competitive bidding was last set by ordinance at $30,000 in 1994. The limit for minor projects — which require bids but can be approved by staff without a council vote — was set at $175,000 in 2017.

The new ordinance increases the city’s minor-contract limit to match those set by the California Uniform Construction Cost Accounting Commission. The commission, which is governed by the Uniform Public Construction Cost Accounting Act (UPCCAA), updates its standards every five years.

The commission standard was last set in 2019. Project contracts of $60,000 or less do not require a competitive bid. Contracts from $60,001 to $200,000 require bidding, but can be approved by staff without a council vote. Any project over $200,000 will trigger a competitive bid process and City Council approval.

The San Rafael ordinance was written to match the limits set by the commission, Kwok said.

“This will ensure that the city’s limits will be automatically updated and adjusted when UPCCAA limits are updated,” she said. The next update is expected in 2024.

Kwok said the strategy falls in line with other charter cities about the size of San Rafael, including Novato, Napa and Alameda.

The county of Marin, Tiburon, Ross, San Anselmo, Fairfax, Corte Madera, Sausalito, Mill Valley, Larkspur and Belvedere have opted into the UPCAA procedures, according to a staff report prepared by April Miller, director of public works.

“This is very sensical,” Councilmember Eli Hill said. Hill said the ordinance brings the city “in line with where we actually need to be to make certain that we can be as responsive as wee need to be for public works projects.”

Councilmember Maribeth Bushey agreed.

“Seems like an orderly update so that we can be in step with the agencies around us,” she said.