"Shall Section 1109 of the City Charter be amended to raise the requirement for formal bids on public works projects from $5,000 to $35,000 and to define public works projects?" CITY ATTORNEY'S IMPARTIAL ANALYSIS OF MEASURE I City Charter Section 1109 currently states that, pursuant to state statute California Government Code section 37902, contracts for certain public projects of more than the amount set forth in that statute, must be formally bid and awarded to the lowest responsible bidder, except in certain specified situations. That state statute has been repealed, and a successor statute has been adopted by the State which sets the amount when a formal bidding process is required as described in this section for contracts involving an expenditure of Five Thousand Dollars ($5,000) or more of City monies. This measure amends this section of the City Charter, in conformity with state law, to delete reference to the now superseded statute, California Government Code section 37902, and to require the formal advertised public bid process for public project contracts for projects involving an expenditure of Thirty Five Thousand Dollars ($35,000) or more of City monies. The measure also clarifies what is meant by public projects by including a statement that the section applies to contracts regarding the construction or improvement of public buildings, works, drains, sewers, utilities, parks and streets (exclusive of projects for maintenance and repair of streets.) LINDA A. CALLON City Attorney The above statement is an impartial analysis of Measure I. If you desire a copy of the measure, please call the City Clerk's office at 842-0202 and a copy will be mailed at no cost to you. ARGUMENT IN FAVOR OF MEASURE I Charter Amendment City Charter Section 1109 requires that the City conduct a formal bid process for public projects exceeding the dollar amount in Section 37902 of the State Government Code. Several years ago this State code section was repealed and replaced by Public Contract Code Section 20162. This State code section sets $5,000.00 (five thousand dollars) as the contracting limit. Other Public Contract Code sections allow cities to do informal bidding up to $75,000.00. The City Charter should be amended so the City bid process is not dictated by constantly changing State rules. Also, the formal bid process involves a great deal of red tape causing delays and significantly increasing the over-all cost of small projects. The City Council believes that projects of $35,000.00 (thirty-five thousand dollars) in Gilroy should go to formal bid. For public works projects under $35,000.00, the City will still require at least three competitive bids prior to selection of the lowest qualified bidder. The City Council recommends that you pass Measure I. City Council of Gilroy Mayor Protempore K.A. Mike Gilroy NO ARGUMENT AGAINST MEASURE I WAS SUBMITTED