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November 6, 2018 — California General Election
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— Charter Amendment - Construction Contracts —

Local

City of San Jose
Measure S - Majority Approval Required

To learn more about measures, follow the links for each tab in this section. For most screenreaders, you can hit Return or Enter to enter a tab and read the content within.

Election Results

Passed

218,424 votes yes (79.48%)

56,377 votes no (20.52%)

  • 100% of precincts reporting (501/501).
  • 305,222 ballots counted.

Shall the City of San José Charter be amended to: Prioritize selecting contractors on cost, but enable consideration of factors like experience and work quality; Increase opportunities for small, local, and economically disadvantaged businesses to compete for contracts; Modify the bidding threshold from $100,000 to $600,000, adjusted annually for inflation; Lower the "design- build" contract threshold from $5,000,000 to $1,000,000; and allow modernization of public noticing?

Information provided by Pros/Cons — League of Women Voters of California

The Question

Shall the City of San José Charter be amended to: Prioritize selecting contractors on cost, but enable consideration of factors like experience and work quality; Increase opportunities for small, local, and economically disadvantaged businesses to compete for contracts; Modify the bidding threshold from $100,000 to $600,000, adjusted annually for inflation; Lower the “design-build” contract threshold from $5,000,000 to $1,000,000; and Allow modernization of public noticing?    

The Situation

Currently, Section 1217 of the City Charter makes public bidding the primary procurement method for public works contracts exceeding $100,000.  The City must award these contracts to the lowest responsive and responsible bidder.  For public works contracts under the $100,000 threshold, San Jose’s Municipal Code governs procurement.  Also currently, Section 1217 allows the City to procure a “design-build” contract without public bidding, wherein the same contractor would both design and build the project, if the contract is over $5 million and the Council determines the contract would save money or result in faster project completion.  Furthermore Section 1217’s low-bid requirements prevents the City from implementing programs supporting the use of small, local and economically disadvantaged businesses.

The Proposal

Measure S would increase the threshold to $600,000 and authorize annual adjustments for inflation in the construction industry.  While the bid amount would remain the primary means of determining the lowest responsive and responsible bidder, Measure S would add an alternative patterned on approaches used by University of California and San Francisco that would allow consideration of a bidder’s qualifications (known as Best Value Contracting).  A panel, before the bid prices are unsealed, would assign each bidder a qualification score based on an evaluation of objective criteria in such areas as a bidder’s safety record, past performance, labor compliance, management competence, financial condition and relevant experience.  The City will use a formula based on the bid amount and the qualification score to determine the low bidder.

Measure S would lower the “design-build” threshold to $1 million, consistent with State authority for local agencies.  It would add authorization to apply programs supporting the use of small, local and economically disadvantaged businesses. It allows electronic publication of notices. It would add to the current Section 1217 exclusion of maintenance and repairs incidental to maintenance, the exclusion of construction, erection, improvement or demolition incidental to maintenance.

 

Supporters say

Supporters Say:

-        Measure S ensures San Jose residents get projects built by contractors who offer the lowest cost together with the best record of accomplishment for experience, work quality and expertise. 

-        Measure S enables San Jose to stretch its public works dollars further by protecting taxpayers from shoddy construction and fraudulent bidding as well as promoting efficiency by lowering the “design-build” contract threshold.

-        Reforms the public works bidding process by increasing the opportunity for small, local, and economically disadvantaged businesses to compete, and modernizing how we notify the public about bidding opportunities to ensure that more construction firms will compete.

Supporters include Jim Cunneen, former California Assembly member, Plumbers and Pipefitters UA Local 393, Maria Aguilar, business owner, Claudia Folzman, CFO of 

Opponents say

 

 

No Opposition Argument Filed

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