City of Long Beach - File #: 21-1183

• File #: 21-1183
• Version: 2
• Name: PW - Job Order Contracts
• Type: Ordinance
• Status: Adopted
• File created: 10/20/2021
• In control: City Council
• On agenda: 11/9/2021
• Final action: 11/16/2021
• Title: Recommendation to declare ordinance amending the Long Beach Municipal Code by amending Section 2.84.100 and Section 2.84.110, all relating to procurement and management of Job Order Contracts, read and adopt as read. (Citywide)
• Sponsors: Public Works

Date	Ver.	Action By	Action	Result
11/16/2021	2	City Council	approve recommendation and adopt	Pass
11/9/2021	1	City Council	declare ordinance read the first time and laid over to the next regular meeting of the City Council for final reading	Pass

TITLE
Recommendation to declare ordinance amending the Long Beach Municipal Code by amending Section 2.84.100 and Section 2.84.110, all relating to procurement and management of Job Order Contracts, read and adopt as read. (Citywide)

DISCUSSION
On May 24, 2016, the City Council approved an amendment to Long Beach Municipal Code (LBMC) Section 2.84.100 (Term) and adopted Ordinance ORD-16-0008 relating to Job Order Contracts (JOC). JOC contractors are prequalified and enter into a competitively bid, fixed price, multi-year construction contract based on an established Construction Task Catalog for construction projects. JOC programs are used at many public agencies as a cost-effective option for the delivery of renovation, repair, and minor construction projects.

The JOC project delivery system provides a significant benefit to the City of Long Beach (City), including faster completion of projects, cost savings, and reduced complexity of processes. The City uses the JOC program for smaller construction projects like roof repairs, doorway replacements, tenant improvements, painting, park improvements, demolition, electrical maintenance, and other repairs including emergency requests.

Pursuant to LBMC 2.84.100, the JOC program can only be utilized for single job order projects that are less than $500,000. As a result of this threshold, the City’s JOC program is currently being underutilized due to inflation resulting in increased cost of materials and increased demand for construction services. Several projects have been rebid due to proposals exceeding the current JOC threshold of $500,000. Increasing the single job order project cost threshold to $750,000 will allow the City to better utilize the JOC program for renovations, repairs, and minor construction projects and deliver these improvements in a timely manner.

Reducing the contractor performance requirement in LBMC 2.84.110 from 20 to 15 percent will allow more opportunities for small businesses to be...