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Home My WebLink AboutCC AG PKT 2013-08-26 #KAGENDA STAFF REPORT DATE: August 26, 2013 TO: Honorable Mayor and City Council THRU: Jill R. Ingram, City Manager FROM: Sean P. Crumby, P.E., Director of Public Works SUBJECT: ADJUSTMENT TO PUBLIC WORKS CONTRACTS IN ACCORDANCE WITH SEAL BEACH CITY CHARTER SECTION 1010 SUMMARY OF REQUEST: That the City Council conduct a public hearing, and, after considering all testimony and evidence presented, adopt Resolution No. 6405 confirming the adjustment of the bidding threshold for public works contracts to $28,797 pursuant to the City Charter Section 1010. BACKGROUND AND ANALYSIS: In March 2002, Section 1010 of the City Charter was amended to include a formal procedure to calculate the bidding threshold for Public Works Contracts. The bidding threshold is to be adjusted annually based upon "computing the percentage difference between the current Engineering News Record (ENR) Construction Cost Index (CCI) — 20 City Average and the ENR for the previous June" or previous increase. The purpose of the adjustment is to allow the City to maintain its bidding threshold current with inflation. The City Charter specifies that the City Engineer shall calculate the required adjustment and the City Council confirm the calculation following a public hearing on the matter. At the August 10, 2009 City Council meeting, Council approved a 3.4% bidding threshold increase from $25,000 to $25,850. This was adjusted based upon the July 2008 CCI of 8293 to July 2009 CCI of 8578. In July 2013, the CCI has increased 11.4% from 8578 to 9552. This increase includes four years of adjustments to the bidding threshold. An 11.4% increase would increase the bidding threshold from $25,850 to $28,797. Agenda Item %< This does not waive requirements of competitive bidding on projects. All projects over $28,797 would require formal bidding procedures and contracts per the City Charter and be awarded at a City Council meeting. Contracts for projects under $28,797 could be awarded pursuant to informal bidding procedures. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: The City Attorney has reviewed the proposed resolution and has approved it as to form. FINANCIAL IMPACT: As proposed, there will be no negative impact on the General Fund. Rather, there are expected cost savings. All contracts completed under this threshold are within the existing budget as approved by City Council. Maintaining the existing bidding threshold limits purchasing power and may require additional expense to produce and use formal plans and specifications, reports, notices, consultant services and staff resources. Thus, if the adjustment is confirmed, the City will not have to incur this additional expense. RECOMMENDATION: That the City Council hold a public hearing, and, after considering all testimony and evidence presented, adopt Resolution No. 6405 confirming the adjustment of the bidding threshold on public works contracts to $28,797 pursuant to City Charter Section 1010. SUBMITTED BY: Sean P. Crumby, P.E. Director of Public Works Attachments: A. Resolution No. 6405 B. ENR Construction Cost Index Page 2 NOTED AND APPROVED: RESOLUTION NUMBER 6405 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL CONFIRMING AN ADJUSTMENT TO THE BIDDING THRESHOLD FOR PUBLIC WORKS CONTRACTS TO $28.707 PURSUANT TO SECTION 1010 OF THE CITY CHARTER WHEREAS, Sectio 1010 of the City Charter requires the City Engineer to adjust the bidding threshold by computing the percentage difference between the current Engineering News Record (ENR) Construction Cost Index — 20 City Average and the ENR for the previous July 1; and WHEREAS, the City Charter requires the City Council to review such adjustment at a public hearing and upon Council confirmation, the bidding threshold amount shall be the adjusted figure; and WHEREAS, the Engineering New Record Construction Cost Index was 8578 for July 2009 and the bidding threshold was set at $25,850; and WHEREAS, the Engineering New Record Construction Cost Index is 9552 for June 2013 representing a 11.4% inonaasn, and raising the bidding threshold to $28,797; and WHEREAS, on August 26. 2013. the City Council held a duly noticed public hearing regarding the proposed adjustment to the bidding threshold; THE SEAL BEACH CITY COUNCIL HEREBY RESOLVES AS FOLLOWS: The City Council finds all facts stated in the above recitals are true and correct and hereby confirms the adjustment of the bidding threshold amount to $28.797 as required by City Charter Section 1010. PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 26th day of August , 2013 by the following vote: AYES: Council Members: NOES: Council Members: ABSENT: Council Members: ABSTAIN: Council Members: Mayor ATTEST: City Clerk STATE OF CALIFORNIA } COUNTY DFORANGE } SS CITY OF SEAL BEACH } |. Linda Devine, City Cler of the Gity of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution Number 8405 on file in the office of the City Qerk, pauoed, apppovnd, and adopted by the Seal Beach City Council at a regular meeting held on the 26th day ofAuqust, 2013. City Clerk Building and Construction Cost Indexes — Construction Materials Trends ... 1 of 2 fl This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Review our Privacy and Cookie Notice for more details. 0 http://enr.construction.com/economics/ CB subscribe J contact us J advertise] �.1 industry jobs J ® events J FAQ J ENR Subscriber Login » 5 ENR.com Engineering news- Record flAW V 0 S RUCi CN SUBSCRIBE TODAY & receive immediate web access Search our site: INFRASTRUCTURE I BLDGS I BIZ MGMT I POLICY I EQUIPMENT I PEOPLE I MULTIMEDIA I OPINION I TECH I EDUCATION ECONOMICS TOP LISTS I REGIONS CURRENT COSTS I MATERIAL TRENDS I HISTORICAL INDICES I QUARTERLY COST REPORTS I FAQ ! Construction Economics ENR publishes both a Construction Cost Index and Building Cost index that are widely used in the construction industry. This website contains an explanation of the indexes methodology and a complete history of the 20 -city national average for the CCI and BCI. Both indexes have a materials and labor component. In the second issue of each month ENR publishes the CCI, BCI, materials index, skilled labor index and common labor index for 20 cities and the national average. The first issue also contains an index review of all five national indexes for the latest 14 month period. ■ Click here for more on using ENR Indexes Current Cost Indices Construction Costs Building Costs Materials Cost A 0.2% increase in labor costs out- weighed a 0.3% decline in materials costs as the CCI increased 0.1 %. Materials Trends 20 -CITY: JUL2013 1913 =100 INDEX VALUE CONSTRUCTION COST 9551.78 %CHANGE %CHANGE MONTH YEAR +0.1 +2.5 COMMON LABOR 20277.76 WAGE $ /HR. 38.53 +0.2 +2.6 +0.2 +2.6 View all Materials Trends Cement/Concrete/Aggregate Steel Lumber /Drywall Pipe Asphalt Paving Costs Increase 0.5% Asphalt paving costs increase 0.5% Asphalt paving costs increased 0.5% this month after increasing 2.4% during the previous three months, leaving ENR's 20 -city average price for PG -58 liquid asphalt 4.4% above a year ago. However, asphalt paving prices should start to decline in the second half of this year, according to a forecast by IHS Global Insight, Washington, D.C. IHS predicts that asphalt paving prices will end the year 1.1% below last year's average price, which increased 6.8 %. ENR's 20 -city average price for portland cement held steady this month, which helped to pull back the annual rate of increase from 3.1% last month to 2.1%. N' Click for full report) [August 05, 2013] Historical Indices View all Historical Indices >, a Construction Cost Index History 200 hours of common labor at the 20 -city average of common labor rates, plus 25 cwt of standard structural steel shapes at the mill price prior to 1996 and the fabricated 20 -city price from 1996, plus 1.128 tons of portland cement at the 20 -city price, plus 1,088 board -ft of 2 x 4 lumber at the 20 -city price. a Building Cost Index History 68.38 hours of skilled labor at the 20 -city average of bricklayers, carpenters and structural ironworkers rates, plus 25 cwt of standard structural steel shapes at the mill price prior to 1996 and the fabricated 20 -city price from 1996, plus 1.128 tons of portland cement at the 20 -city price, plus 1,088 board ft of 2 x 4 lumber at the 20 -city price. Cost Index History Tables The building and construction cost indexes for ENR's individual cities use the same components and weighting as those for the 20 -city national indexes. The city indexes use local prices for portland cement and 2 X 4 lumber and the national average price for structural steel. The city's BCI uses local union wages, plus fringes, for carpenters, bricklayers and iron workers. The city's CCI uses the same union wages for laborers. ENR Cost Indexes in 20 Cities 1978 -2012 a Atlanta GA a Chicago IL a Denver, CO Baltimore MD a Cincinnati, OH a Detroit, MI a Birmingham, AL a Cleveland, OH a Kansas City, MO I, Boston, MA a Dallas TX a Los Angeles CA - - -- Advertising ENR's Energy Construction Summit November 15, 2013 Houston, Texas Tap into the Booming U.S. Energy Market! RCgIStsr NOW: Gain Quick Access to ENR's Historical Cost Index Tables Find ENR's Award - Winning Building Material Price Data (published later than March 1, 2005). Monthly tables on 75 different building materials! Click here. Order ENR's Historical Prices For 75 Different Materials Our tables for cement and concrete and aggregate prices are published in print editions in the first issue of every month; pipe prices in the second; lumber and drywall prices the third, and steel prices in the fourth. For information on how to order data sets prior to March, 2005 click here. Dodge Lead Center FIND LOCAL CONSTRUCTION PROJECTS Search by Project Type & State Al Project Types Select a State (Required) Advertising 7/31/2013 9:06 AM