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HomeMy WebLinkAboutItem G !4 SEA( ef\ %: r9n, AGENDA STAFF REPORT \,CgwIFORN,i/ DATE: June 26, 2017 TO: Honorable Mayor and City Council THRU: Jill R. Ingram, City Manager FROM: Steve Myrter, P.E., Director of Public Works SUBJECT: APPROVE A RESOLUTION ADJUSTING THE BIDDING THRESHOLDS! FOR PUBLIC WORKS CONTRACTS SUMMARY OF REQUEST: That the City Council conduct a public hearing, and, after considering all testimony and evidence presented, adopt Resolution No 6744 confirming the adjustment of the bidding threshold for public works contracts to $32,267 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 26, 2013 City Council meeting, Council approved an 11 .4% bidding threshold increase from $25,850 to $28,797. This was adjusted based upon the July 2009, CCI of 8578 to July 2013, CCI of 9552. In June 2017, the CCI has increased 12.05% from 9552 to 10703. This increase includes four years of adjustments to the bidding threshold. A 12.05% increase would increase the bidding threshold from $28,797 to $32,267. This does not waive requirements of competitive bidding on projects. All projects over $32,267 would require formal bidding procedures and contracts per the City Agenda Item G Charter and be awarded at a City Council meeting. Contracts for projects under $32,267 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 6744 confirming the adjustment of the bidding threshold on public works contracts to $32,267 pursuant to City Charter Section 1010. SUBMITTED BY: NOTED AND APPROVED: MIIV/ 11AL 641 Steve '°=r, RE. fir, JitE! Ingram, City Ma .5,er ' Director of Public Works Attachments: A. Resolution No. 6744 B. ENR Construction Cost Index Page 2 "Attachment A" RESOLUTION NUMBER 6744 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL CONFIRMING AN ADJUSTMENT TO THE BIDDING THRESHOLD FOR PUBLIC WORKS CONTRACTS TO $32,267 PURSUANT TO SECTION 1010 OF THE CITY CHARTER WHEREAS, Section 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 9552 for July 2013 and the bidding threshold was set at $28,797; and WHEREAS, the Engineering New Record Construction Cost Index is 10703 for June 2017 representing a 12.05% increase, and raising the bidding threshold to $32,267; and WHEREAS, on June 26, 2017, 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 $32,267 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 June, 2017 by the following vote: AYES: Council Members: NOES: Council Members: ABSENT: Council Members: ABSTAIN: Council Members: Sandra Massa-Lavitt Mayor ATTEST: Robin L. Roberts, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Robin L. Roberts, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution Number 6744 •on file in the office of the City Clerk, passed, approved, and adopted by the Seal Beach City Council at a regular meeting held on the 26th day of June, 2017. Robin L. Roberts, City Clerk Sip CONSTRUCTION`ECONOMICS ENR's 20-city average cost indexes,wages and material prices.Historical data and details forENR's 20 cities can be;found at ENIt.com/economics Construction Building ° Material I., Cost Index *0•O% Cost Index + ,,L�/0 Cost Index +oo • ■E 1tl:; --V'∎ JUNE 2017 CIA ,,\PA-. JUNE'2017 - ,,Tr •I r;,i- JUNE 2017' _ - 1913=100 INDEX VALUE- MONTN. YEAR 1813=100 INDEX VALUE MONTH YEAR 1913=100 INDEX VALUE MONTH YEAR CONSTRUCTION COST 1070181 +0.1% +3.5% BUILDING COST 5815.76 +02% +14% MATERIALS COST 32.10.41. +05% +62% COMMON LABOR 22530.96 0.0% .+2.5% SKILLED LABOR 10061.45 0.0% +1.6% CEMENT S/TON 116.41 +0.4% -5.3% WAGES/HR. 43.32 0.0% +2.5% WAGE3/HR. 55.41 0.0% +1.6% STEEL&CWT 52.05 0.0% +3.8% LUMBERSIMBF 557.98 +1.7% +11.7% The Construction Cost.Index's annual escalation rate The Building Cost Index's annual escalation rate slipped to 3.5%from.3.7%last month.as the labor increased to 3.4%in May,pushed mostly by a The MCI increased 0.7%this month,following last cost component held steady: 0.5%increase in the materials component. month's 0.6%gain. 1/11111111111111111111111111%11 11111/1/11111/11/111/111/11111111111111111/111111/1 111111111111111111111111/1111/1 111/1111/1/1/1lllllllllllll 11111/1/11111/1111111lllllll111111/1 11111 1111/11111111111 11111111 1/11/11/111111 111111111111111111111/11111 Inflation's Pulse Year-to-year and monthly percent changes for ENR's cost indexes 5.0 •ANNUAL CONSTRUCTION COST INDEX 4.3 •ANNUAL BUILDING COST INDEX - +3 5°/A X3.6 . 13.0 x2.3 __ - • 1.6 ' +3.4% 1.0 MAY'16 JUNE JULY AUG. SEPT. OCT. NOV. DEC. JAN.'17 FEB. MARCH APRIL MAY JUNE 1.0 •MONTHLY CONSTRUCTION COST INDEX +0.1%0.8 - •MONTHLY BUILDING COST INDEX 0.6 A. a x _ 0 - -0.2 --I , I I i 1 1 i I I i I ' i_ SOURCE ENI Cost Index Review uvoex REVISIONS CONSTRUCTION: BUILDING - SKILLED WAGES COMMON WAGES 1 i BASE YEAR 1913 1967 1913 1967 1913 1967 1913 1967 2016 May 10315.44 960.84 5637.09 834.61 9809.84 NA 22004.88 NA June 10337.05 962.85 5636.49 834.60 9878.50 NA 22070.89 NA + % July 10379.26 966.79 5659.51 838.05 9888.37 NA 22123.86 NA Aug. 10385.65 966.86 5669.50 839.19 9898.25 NA 22123.86 NA Sept. 10403.43 968.51 5657.28 83738 9898.25 NA 22123.86 NA ' ' Oct. 10434.56 971.41 5681.63 840.98 9927.94 975.29 22172.53 1071.59 CllllStl'uetiou Nov. 10442.61 .972.16 5690.35 842.27 9927.94 975.29 22172.53 1071.59 Cost llldex Dec. 10530.94 980.38 5722.81 847.08 10011:37 983.44 22394.25 1082.33 Jan. 10542.01 981.42 5733.88 848.78 10011.37 983.44 22394.25 1082.33 ANNUAL ESCALATION 2017 Feb. 10558.63 X98236 5742.06 849.93 1002137 983.58 22416.64 1083.48 SLIPPED TO Mar. 10667.39 993.09 5789.41 856.94 10021.37 983.66. 22530.96 1089.02 JUNE FROM 3:7% IN MAY; April 10678.15 994.09 5801.76 858.77 10061.45. 984:14 22530.96 1089.02 AS 1AB S TADY HELD STEEADY: May 10692.17 995.39 5815.76 938.89 10061.45 984:14 22530.96 1089.02 June 10702.81 996.38 5826.40 862.41 10061.02 984.14 22530.96 1089.02 .CONSTRUCTION ECONOMICS; Asphalt prices fell 3.4%in April, following a PRODUCER PRICE INDEX drop of 32% daring the two previous months, ASPHALT PAVING Monthly Percent Change according to the Bureau of Labor Statistics'producer 8 price index. The triple monthly price cuts helped 7 6 to dent February's 7.8% spike. The combined price 5 44% cuts drove the index 1.8% below April 2016's level, 3 according to.BLS. ENR's 20-city average price for i 2 PG-58 paving:asphalt increased 0.7% in June, _ __\ following a1.0°Io increase last month,but prices are 1 fir, a still 4.5% below a year ago. June's prices for asphalt ; cutback and emulsion held steady in June and are up 4 M'16 J s N J M'17 3% to 4% above a year ago. SOURCE:BUREAU OF LABOR smnsnOS i ENR''s Materials Prices For June 2017 CONCRETE BLOCK READY-MIX CONCRETE' 20-CITY AVERAGE ITEM UNIT SPRICE 7%MONTH %YEAR - % % ASPHALT'PAVING ; + • Cuba. Cutback,MC800 TON 379.50 +0.7 +3.0 TON 385.10 +0.1 +3.0 _._ _, _ _ . _. Emulsion,RAPID SET TON 357.97 0.0 +3.7 CONCRETE-BLOCK PRICES'ARE CONCRETE PRICES ARE UP Emulsion,SLOW SET TON 367.80 -0.1 +1.4 DOWN.15%FROM THISJIME ANOTHER 0i3%IN JUNE;:WHILE' LAST YEAR. YEARLY:RATES ARE UP:2:5%. zoo • zms z0n� 280 zm6 z_mr --n PORTLAND CEMENT 273 -�� Type one TON 117.17 +0.7 +3.2 �% te. 1 - - - /7 MASONRY'CEMENT �. .170 . 259 - _ -- - a6o l/ 70-lb BAG 9.30 -0.5 +8.8 160 ' - --_1 245 i i r I i i i i L I S 0' N '0'J17 F M.. A :M J 'S 0;'N ID`J17 F'-M- ,A-:M 'J., CRUSHED STONE 1992x100: - - - 1992=10L1 _ - Base course TON 10.01 0.0 -1.2 ASPHALT PAVING_ PORTLAND.CEMENT _Concrete course TON 10.74 0.0 +0.2 - �,% _ '°10 Mphalt course TON 11.05 '+0.1 +0.3 -� SAND f Concrete TON 9.08 -0.1 +1.1 Masonry, TON 10.96 I 0.0 +0.8 1, READY-MIX CONCRETE I ASPHALT-PRICESROSE6:2%..IN PRICES INCREASED 30% DURING THE LAST THREE,MONTHS,;BUT THE.PAST FOUR.MONTHS,:LIFTING. '3,000 psi cv 112.89 +0.3 +2.5 ARE'STILC4I5%BELOW 2016.' PRICES 3.2%ABOVE 2016. 4000 psi CY 126.18 +0.3 +10.3 ' '500 i 2016-2017 . 1es- 2016-2017 `5400 psi cY 148.42 +2.7 +22.9 380 - • 1 178 CONCRETE BLOCK „ 320 174- Normal weight:8 x 8'x 16" ° 134.81 0.0 -1.5 263 - -- - 170 \ -\ 7 Lightweight:8"x Er x 16" ° 167.63 +0.1 +2.1 200 1 - I L I n i i I. ^I 166 I I I I 12x8 x16" C 174.75 +0.1 -0.4 si 9 NDJ'17F:'M41 MJ' - S 0N11JI2;F, MA .xi J. 1992=100 1992=100 SOURCE:ENO CONSTRUCTION ECONOMICS Asphalt, Cenient, Aggregate, Concrete, Block For June 2017 Cityprices'reflectquotes from single sources and can be volatile.They are not meant to be the prevailing price for a city.Data are a mix of list and transaction'prices and may include ENR estimates.Do not compare prices between locations.Use city information to analyze national trends. . ITEM UNIT_ ATLANTA BALTIMORE BIRMINGHAM BOSTON CHICAGO CINCINNATI CLEVELAND DALLAS DENVER DETROIT ASPHALT.PAVING PG 58 TON -407.63 +405.00 358.85 395.20 +405.70 346.00 330.00 377.65 -390.35 402.50 CUTBACK;MC800 TON -406.25 - 378.37 390.88 +393.59 - 378.00 382.98 369.20 388.00 EMULSION,RAPID SET TON -374.10 - 370.09 357.99 +379.09 - 369.00 348.90 350.00 355.50 SLOW SET TON -383.68 - 373.52 366.20 +382.86 - 388.00 362.68 344.00 411.00 PORTLAND CEMENT TYPE ONE TON 117.30 134.04 +110.00 121.80 113.00 90.00 95.85 123.37 122.60 134.00 MASONRY CEMENT 70-LB BAG TON 9.58 10.25 +8.30 8.94 9.15 10.60 9.25 8.53 10.92 9.97 CRUSHED STONE BASE COURSE TON 10.40 12.25 +8.72 10.56 9.87 11.25 7.75 10.08 11.15 6.45 CONCRETE COURSE TON 11.00 14.15 -9,55, 10.79 11,72 11.45 8.29 10.62 9.91 7.80 ASPHALT COURSE TON 10.98 14.35 +9.50 10.32 10,93 - 10.96 10.96 11.10 9.58 SAND CONCRETE TON 9.20 15.75 -9.36 9.15 9.35 7.50 6.25 9.12 9.55 8.07 MASONRY TON 11.15 15.75 +10.00 10.82 10.40 14.90 14.00 10.98 10.67 8.20 CONCRETE READY-MIX. 3,000 PSI Cv 115.70 123.65 110.88 118.78 123.00 100.00 114.00 +116.79 +116.45 124.00 4,000 PSI cv 120.95 137.60 114.40 124.59 125.00 +129.60 145.60 +123.25 122.00 116.40 5,000 PSI cv. 127.62 174.40 117.00 133.85' 128.00 +197.60 +185.60 +129.90 131.33 197.20 CONCRETE BLOCK NORMAL WEIGHT:8"x8"x 16" c 146.05 130.50 128.29 +150.39 152.60 107.00 +148.50 148.15 -143.10 +99.00 LIGHTWEIGHT:8"x 8"x 16' c 162.35 187.00 144.40 +174.15 165.00 178.00 175.80 168.26 +159.33 200.00 ITEM UNIT. KANSAS CITY LOS ANGELES. MINNEAPOLIS. NEW ORLEANS NEW YORK PHILADELPHIA PITTSBURGH ST.LOUIS SAN FRANCISCO SEATTLE ASPHALT PAVING PG 58 TON +336.00 +378.00 392.00 364.80 -434.76 -432.62 +347.00 +330.00 378.00 378.00 CUTBACK,MC800 TON 342.00 +390.00 378.00 367.59 -405.05 -416.30 377.04 388.50 390.00 390.00 EMULSION;FIAPID SET TON 322.00 355.00 328.00 353.21 -387.57 390.82 314.20 378.00 355.00 355.00 SLOW SET TON 338.00 362.00 312.70 357.45 -394.09 402.10 314.20 404.00 362.00 362.00 PORTLAND CEMENT TYPE ONE TON 106.60 +113.55 126.91 +115.82 +120.62 115.00 136.17 -119.68 113.55 +113.55 MASONRY,CEMENT 70-LB BAG TON 8.65 8.28 8,47 +8.90 +8.73 8.70 -11.25 10.90 8.28 8.28 CRUSHED STONE BASE COURSE TON 10.64 970 8.18 10.76 13.40 11.93 9.80 8.00 9.70 9.70 CONCRETE COURSE TON 16.40 9:70 .8.88 10.99 14.09 11.85 10.38 7.91 9.70 i 9.70 ASPHALT COURSE TON 16.40 10.44 8.15 11.02 13.00 12.80 9.52 9.00 10.44 10.44 SAND CONCRETE TON 9.15 9.00 6.10 -10.55 11.25 9.92 7.86 6.50 9.00 9.00 MASONRY TON 14.00 10.33 8.32 -10.71 10.49 9.85 8.88 9.05 10.33 10.33 CONCRETE READY-MIX 3,000 PSI cv 112.25 +108.50 110.00 109.56 117.85 110.32 96.14 113.00 +108.50 +108.50 4,000 PSI cY 137.60 +117.00 146.40 115.70 121132 115.29 139.20 -137.60 +117.00 +117.00 5,000 PSI Cv' 124.40 +125.09 178.40 121.00 +128.76 125.35 +191.20 +201.60 +125.09 +125.09 CONCRETE BLOCK NORMAL WEIGHT:8"x8"x 16" C +135.00 145.00 -102,00 140.78 139.65 138.38 +116.00 135.00 145.42 145.42 UGHTWEIGH:8"x 8"x.16" O 142.00 +167.20 187.00 151.99 152.90 159.91 178.00 165.00 167.20 167.20 .OW DENOTES PRICE HAS RISEN OR FAllFN SINCE PREVIOUS REPORT.OUCHES ORE DELIVERED PRICES FOR PORTLAND AND MASDNIWCEMENT CONCRETE BLOCK AND READY-MIX CONCRETE,PRICES FOR CRUSHED STOW AND SAND ARE Edo PLANT SOME PRICES MAY INCLUDE TAMES aft DISOOUNTS FURTHER MASONRY RY SARi INCLUDE ESARE MORALON,UCIIH'RASELW0.5E,1N'OOWNTO DUST UNWASHED;CONCRETE CWWSE,ION'MflOLGH NA,WASHED;ASPHALT COMSE,K"TWODGI H.UNWASHED.CONCRETE SAND,ENS MEDIUM CLEAN;MARIXIR!SAND,PN5 FlNE CLEAN;CONCRETE&OCR,1CORE:OWdWRIESAPE GENQW.LYIPIILIfLDADS.