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HomeMy WebLinkAboutAgenda Packet 08122019A G E N D A MEETING OF THE CITY COUNCIL Monday,August 12,2019 ~7:00 PM City Council Chambers 211 Eighth Street Seal Beach,California THOMAS MOORE MAYOR Second District SCHELLY SUSTARSIC MAYOR PRO TEM Fourth District JOE KALMICK COUNCIL MEMBER First District MIKE VARIPAPA COUNCIL MEMBER Third District SANDRA MASSA-LAVITT COUNCIL MEMBER Fifth District This Agenda contains a brief general description of each item to be considered.No action or discussion shall be taken on any item not appearing on the agenda,except as otherwise provided by law.Supporting documents,including agenda staff reports,and any public writings distributed by the City to at least a majority of the Council Members regarding any item on this agenda are available for review at City Hall in the City Clerk's Office located at 211 Eighth Street,Seal Beach,California,Monday through Friday,between the hours of 8:00 a.m.and 5:00 p.m.or contact the City Clerk, at (562)431-2527. City Council meetings are broadcast live on Seal Beach TV3 and on the City's website www.sealbeachca.gov).Check the SBTV3 schedule for rebroadcast of —meetings are available on-demand on the website (starting 2012).meeting In compliance with the Americans with Disabilities Act of 1990,if you require disability -related modification or accommodation to attend or participate in this meeting,including auxiliary aids or services,please call the City Clerk' s office at (562)431 -2527 at least 48 hours prior to the meeting. CALL TO ORDER MOMENT OF SILENCE –In remembrance of the victims of the recent tragedies in Gilroy, California;El Paso,Texas;and Dayton,Ohio. PLEDGE OF ALLEGIANCE COUNCIL ROLL CALL APPROVAL OF AGENDA &WAIVER OF FULL READING OF RESOLUTIONS ORDINANCES By motion of the City Council this is the time to notify the public of any changes to the agenda and /or rearrange the order of the agenda. PRESENTATIONS /RECOGNITIONS •Seal Beach Lions Club •Dave’s Cosmic Subs •Introduction of new City Employees:Assistant Planner Marco Cuevas and Code Enforcement Officer Samuel Funes ORAL COMMUNICATIONS At this time members of the public may address the Council regarding any items within the subject matter jurisdiction of the City Council.Pursuant to the Brown Act,the Council cannot discuss or take action on any items not on the agenda unless authorized by law. Matters not on the agenda may,at the Council's discretion,be referred to the City Manager and placed on a future agenda. Those members of the public wishing to speak are asked to come forward to the microphone and state their name for the record.All speakers will be limited to a period of five (5)minutes.Speakers must address their comments only to the Mayor and entire City Council,and not to any individual,member of the staff or audience.Any documents for review should be presented to the City Clerk for distribution. Oral Communications CITY ATTORNEY REPORT Craig A.Steele,City Attorney CITY MANAGER REPORT Jill R.Ingram,City Manager COUNCIL COMMENTS General Council Member comments and reporting pursuant to AB 1234. COUNCIL ITEMS –None CONSENT CALENDAR Items on the consent calendar are considered to be routine and are enacted by a single motion with the exception of items removed by Council Members. A.Approval of the July 22,2019 City Council Minutes -That the City Council approve the minutes of the Closed Session/Regular City Council meeting held on July 22,2019. B.Demands on City Treasury (Fiscal Year 2019)–August 12,2019 -Ratification. C.Authorize the City Manager to execute a Professional Services Agreement with Transtech Engineers,Inc.,for Building Division Services -That the City Council adopt Resolution 6947 authorizing the City Manager to execute a professional services agreement with Transtech Engineers,Inc.,for Building Division Services. ITEMS REMOVED FROM THE CONSENT CALENDAR PUBLIC HEARING D.Resolution Adjusting the Bidding Thresholds for Public Works Contracts -It is requested that the City Council conduct a public hearing,and after considering all testimony and evidence presented,adopt Resolution 6948 confirming the adjustment of the bidding threshold for Public Works contracts to $33,970 pursuant to the City Charter Section 1010. UNFINISHED /CONTINUED BUSINESS –None NEW BUSINESS –None ADJOURNMENT Adjourn the City Council to Monday,September 9,2019 at 5:30 p.m.to meet in closed session,if deemed necessary. Agenda Item: A AGENDA STAFF REPORT DATE:August 12, 2019 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Gloria D. Harper, City Clerk SUBJECT:Approval of the July 22, 2019 City Council Minutes ________________________________________________________________ SUMMARY OF REQUEST: That the City Council approve the minutes of the Closed Session/Regular City Council meeting held on July 22, 2019. BACKGROUND AND ANALYSIS: This section does not apply. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: No legal analysis is required for this item. FINANCIAL IMPACT: There is no financial impact for this item. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. MEASURE BB: This item is not applicable to Measure BB, the Seal Beach Neighborhood and Essential Services Protection Measure. 5 7 4 RECOMMENDATION: That the City Council approve the minutes of the Closed Session/Regular City Council meeting held on July 22, 2019. SUBMITTED BY: NOTED AND APPROVED: Gloria D. Harper Jill R. Ingram Gloria D. Harper, City Clerk Jill R. Ingram, City Manager Prepared by: Dana Engstrom, Deputy City Clerk ATTACHMENTS: A. Minutes - Closed Session B. Minutes - Regular Session 4 3 2 6 Seal Beach, California July 22, 2019 The City Council met in Closed Session at 4:30 p.m. in the City Hall Conference Room. ROLL CALL Present: Mayor Moore Council Members: Varipapa, Kalmick, Massa-Lavitt, Sustarsic Absent: None City Staff: Craig A. Steele, City Attorney Jill R. Ingram, City Manager Patrick Gallegos, Assistant City Manager Victoria L. Beatley, Director of Finance/City Treasurer Gloria D. Harper, City Clerk ORAL COMMUNICATIONS Mayor Moore opened oral communications. Speakers: Joyce Ross-Parque. Mayor Moore then closed oral communications. CLOSED SESSION A. CONFERENCE WITH LABOR NEGOTIATOR Government Code §54957.6 City Negotiator(s): City Manager Employee Organization(s): Executive Management Orange County Employees Association Mid-Management and Confidential Employees Seal Beach Marine Safety Management Association Seal Beach Supervisors and Professionals Association ADJOURNMENT Mayor Moore adjourned the Closed Session meeting at 6:37 p.m. Gloria D. Harper, City Clerk Approved: Thomas Moore, Mayor Attested: Gloria D. Harper, City Clerk Seal Beach, California July 22, 2019 The City Council met in regular session at 7:02 p.m. in the City Council Chambers. Council Member Massa-Lavitt led the Pledge of Allegiance. ROLL CALL Present: Mayor Moore Council Members: Varipapa, Kalmick, Massa-Lavitt, Sustarsic Absent: None City Staff: Craig A. Steele, City Attorney Jill R. Ingram, City Manager Patrick Gallegos, Assistant City Manager Chief Joe Miller, Seal Beach Police Department Chief Joe Bailey, Marine Safety/Lifeguard Department Victoria L. Beatley, Director of Finance/City Treasurer Steve Myrter, P.E., Director of Public Works Steven Fowler, Interim Director of Community Development Gloria D. Harper, City Clerk APPROVAL OF AGENDA & WAIVER OF FULL READING OF RESOLUTIONS AND ORDINANCES Mayor Pro Tem Sustarsic pulled Items F, H, and N from the Consent Calendar for separate consideration. City Clerk Harper read into the record that three (3) communications were received after the posting of the agenda regarding various agenda items that were distributed to City Council and made available to the public. Council Member Kalmick moved, second by Mayor Pro Tem Sustarsic to approve the agenda. AYES: Varipapa, Kalmick, Massa-Lavitt, Moore, Sustarsic NOES: None ABSENT: None ABSTAIN: None Motion carried PRESENTATIONS / RECOGNITIONS Introduction of New Police Officers Introduction of New VIP Members ORAL COMMUNICATIONS Mayor Moore opened oral communications. Speakers: Seth Eaker, Robert Goldberg, and Joyce Ross-Parque. Mayor Moore closed oral communications. CITY ATTORNEY REPORT City Attorney Craig A. Steele stated that prior to this meeting the City Council met in closed session to discuss employment negotiations as listed on the agenda. City Council heard a report from staff and took no reportable action. CITY MANAGER REPORT City Manager Ingram thanked Patrick Gallegos, Rebekah Baird, Dana Engstrom, and Jennifer Robles for their efforts in planning a successful Pier Ribbon Cutting event. COUNCIL COMMENTS Council Member Massa-Lavitt provided an Orange County Vector Control update on mosquitos and West Nile Virus. Additionally, she indicated she attended a West Orange County Water Board meeting, Orange County Sanitation District meeting, and a San Gabriel and Lower Los Angeles Rivers and Mountains Conservancy Governing Board meeting. Council Member Varipapa indicated that he attended the Sea Level Rise Vulnerability Assessment Workshop. He also attended the Lions Club Fish Fry and commended them for a great event. Additionally, he thanked staff for a successful Pier Ribbon Cutting event that was well attended by the elected officials and the community. Council Member Kalmick indicated that he attended the Sea Level Rise Vulnerability Assessment Workshop and expressed the importance of staying informed and stated he was pleased by the turnout. He thanked staff on the very professional Pier Ribbon Cutting Ceremony indicating that it was a great event and was well attended by the community as well as elected officials: Congressman Harley Rouda, Assemblyman Tyler Diep, State Senator Tom Umberg, and Orange County Supervisor Michelle Steel. Council Member Kalmick expressed his appreciation for the Community Police Officers and their impact on safety in the community. He also expressed his appreciation for the opportunity and courtesy of the United States Navy for his recent aircraft carrier experience. Mayor Pro Tem Sustarsic indicated that she attended the Sea Level Rise Vulnerability Assessment Workshop and thanked Interim Community Development Director Steve Fowler for setting up the workshop. She also attended the Lions Club Fish Fry, College Park East Neighborhood Association’s 4th of July Bike Parade, Joint Forces Training Base Fireworks, Pier Ribbon Cutting Ceremony, Metropolitan Water Department Water briefing, and the Installation of Laura Yeager, the first woman Commander of the California National Guard at the Los Alamitos Joint Forces Training Base. Mayor Moore volunteered at the Lions Club Fish Fry and attended the Annual Joint Powers Insurance Authority meeting. He also indicated he attended the Orange County Fire Authority board meeting where they announced receipt $4 million dollar grant from Southern California Edison allowing them to purchase two (2) helicopters to be used to fight forest fires. Mayor Moore expressed his excitement for the new Seal Beach entrance sign at Seal Beach Boulevard and the 405 freeway near Fire Station #48. Additionally, he thanked the City for a great Pier Ribbon Cutting Ceremony and indicated how great it was to have so many elected officials in attendance. COUNCIL ITEMS There were no Council items. CONSENT CALENDAR Council Member Varipapa moved, second by Mayor Pro Tem Sustarsic, to approve the recommended actions on the consent calendar with exception of Items F, H, and N that were pulled for separate consideration. A. Approval of the June 10, 2019 City Council Minutes - That the City Council approve the minutes of the Special City Council Budget Workshop held on June 10, 2019. B. Approval of the June 24, 2019 City Council Minutes - That the City Council approve the minutes of the Regular City Council meeting held on June 24, 2019. C. Demands on City Treasury (Fiscal Year 2019) – July 22, 2019 - Ratification. D. Demands on City Treasury (Fiscal Year 2020) – July 22, 2019 - Ratification. E. Monthly Investment Report – June 30, 2019 - Receive and file. F. Approve and Authorize the City Manager to execute an Agreement with Southern California Edison to replace High-Pressure Sodium Vapor (HSPV) Street Lights with Light Emitting Diode (LED) Street Lights - That the City Council adopt Resolution 6932: 1. Approving and authorizing the City Manager to execute an agreement with Southern California Edison for LS-1 Option E, Energy Efficiency Light Emitting Diode Fixture Replacement Rate; and, 2. Authorizing the City Manager to execute any additional documents related to the Agreement. G. Professional Services Agreement to Utiliworks Consulting, LLC., for Advanced Water Metering Infrastructure Project Assessment and Plan - That the City Council adopt Resolution 6933 approving and authorizing the City Manager to execute a professional services agreement with UtiliWorks Consulting, LLC. In the amount of $116,014 for the Annual City-wide Water Meter Replacement CIP Project WT1904. H. Professional Services Agreements for On-Call Traffic and Transportation Engineering Services, Professional Engineering Services and Professional Inspection Services - That the City Council adopt Resolution 6934: 1. Authorizing the City Manager to execute a professional services agreement and Addendum No. 1 with W. G. Zimmerman Engineering, Inc., in the amount of $240,000 to provide On-Call Traffic and Transportation Engineering Services for a three-year term; and, 2. Authorizing the City Manager to execute a professional services agreement and Addendum No. 1 with Iteris, Inc. in the amount of $240,000 to provide OnCall Traffic and Transportation Engineering Services for a three-year term; and, 3. Authorizing the City Manager to execute a professional services agreement with GHD, Inc. in the amount of $300,000 to provide On-Call Professional Engineering Services for a three-year term; and, 4. Authorizing the City Manager to execute a professional services agreement with Stantec Consulting Services, Inc. in the amount of $300,000 to provide On- Call Professional Engineering Services for a three-year term; and, 5. Authorizing the City Manager to execute a professional services agreement with Kreuzer Consulting Group in the amount of $300,000 to provide On-Call Professional Engineering Services for a three-year term; and, 6. Authorizing the City Manager to execute a professional services agreement with Tait & Associates, Inc. in the amount of $300,000 to provide On-Call Professional Engineering Services for a three-year term; and, 7. Authorizing the City Manager to execute a professional services agreement with EXP U.S. Services, Inc. in the amount of $300,000 to provide On-Call Professional Engineering Services for a three-year term; and, 8. Authorizing the City Manager to execute a professional services agreement and Addendum No. 1 with NV5, Inc. in the amount of $240,000 to provide OnCall Professional Inspection Services for a three-year term; and, 9. Authorizing the City Manager to execute a professional services agreement with Interwest Consulting Group, Inc. in the amount of $240,000 to provide OnCall Professional Inspection Services for a three-year term; and, 10. Authorizing the City Manager to execute a professional services agreement with Ardurra Group, Inc. dba AndersonPenna Partners, Inc. in the amount of $240,000 to provide On-Call Professional Inspection Services for a three-year term; and, 11. Authorizing the City Manager the option to execute a professional service agreement amendment to extend any or all of the agreements up to two (2) additional one-year terms after its original term. I. Notice of Completion for 15 1st Street Roof Repair Project - That the City Council adopt Resolution 6935: 1. Accepting the 15 1st Street Roof Repair Project by Garland/DBS, Inc. in the amount of $78,919 (Project No. BG1808); and, 2. Directing the City Clerk to file a “Notice of Completion” with the Orange County Clerk-Recorder within fifteen (15) days from the date of acceptance and to release retention in 35 days. J. Notice of Completion for 2018 Environmental Cleanup Program Project CIP SD1901 - That the City Council adopt Resolution 6936: 1. Accepting the 2018 Environmental Cleanup Program Project CIP SD1901 by G2 Construction, Inc. in the amount of $153,263; and, 2. Directing the City Clerk to file a “Notice of Completion” with the Orange County Clerk-Recorder within fifteen (15) days from the date of acceptance and to release retention in 35 days. K. Professional Services Agreement with Superior Pavement Markings, Inc., for Pavement Marking Maintenance Services - That the City Council adopt Resolution 6937: 1. Approving and authorizing the City Manager to execute a professional services agreement with Superior Pavement Markings, Inc., in the amount of $160,000 to provide Pavement Marking Maintenance Services for a three-year term; and, 2. Authorizing the City Manager to administratively approve and execute an amendment to extend the professional service agreement for up to two (2) additional one-year terms, in the amount of $55,000 for each oneyear extension. L. Renewal of License Agreement for Use of Public Parking Between the City of Seal Beach and Grace Community Church - That the City Council adopt Resolution 6938 authorizing the City Manager to execute a Parking Agreement with Grace Community Church. M. Dixon Resources Unlimited On-Call Parking Support Services - That the City Council adopt Resolution 6939 approving a Professional Services Agreement with Dixon Resources Unlimited (Dixon) in an amount not to exceed $45,000 for on-call services relating to parking, and authorizing the City Manager to execute the agreement. N. Professional Services Agreement with ClearSource Financial Consulting for a Cost Allocation Plan and Cost Recovery Schedule (Fees) - That the City Council adopt Resolution 6940 approving and authorizing the City Manager to execute a professional services agreement with ClearSource Financial Consulting in an amount not to exceed $32,300. O. Annual Sand Berm Construction and Removal Contract - That the City Council adopt Resolution 6941: 1. Awarding and authorizing the City Manager to execute a construction contract to Crew, Inc. in the amount of $379,982; and, 2. Authorizing the City Manager to approve contract changes in the cumulative amount of $38,000. P. Public Works Agreement with Streetlight Restoration Specialists, Inc. for Main Street Streetlight Restoration Project - That the City Council adopt Resolution 6942: 1. Awarding and authorizing the City Manager to execute a public works agreement with Streetlight Restoration Specialists, Inc., in the amount of $88,000 for the Main Street Streetlight Restoration Project. 2. Authorizing the City Manager to approve additional work requests in connection with the Project in the cumulative amount of $8,000. Q. Agreement with CivicStone, Inc. to Administer the Community Development Block Grant (CDBG) Leisure World Bathroom Accessibility Program - That the City Council adopt Resolution 6943 approving a professional services agreement with CivicStone, Inc. (“CivicStone”) for the administration of the FY 2019-20 Community Development Block Grant (“CDBG”) Leisure World Bathroom Accessibility Program AYES: Varipapa, Kalmick, Massa-Lavitt, Moore, Sustarsic NOES: None ABSENT: None ABSTAIN: None Motion carried ITEMS REMOVED FROM CONSENT CALENDAR F. Approve and Authorize the City Manager to execute an Agreement with Southern California Edison to replace High-Pressure Sodium Vapor (HSPV) Street Lights with Light Emitting Diode (LED) Street Lights - That the City Council adopt Resolution 6932: 1. Approving and authorizing the City Manager to execute an agreement with Southern California Edison for LS-1 Option E, Energy Efficiency Light Emitting Diode Fixture Replacement Rate; and, 2. Authorizing the City Manager to execute any additional documents related to the Agreement. City Manager Ingram introduced Public Works Director Steve Myrter, who gave a brief overview of the benefits of converting the City’s street lights to LED type lighting and answered questions. Mayor Pro Tem Sustarsic moved, second by Council Member Kalmick, to adopt Resolution 6932: 1. Approving and authorizing the City Manager to execute an agreement with Southern California Edison for LS-1 Option E, Energy Efficiency Light Emitting Diode Fixture Replacement Rate; and, 2. Authorizing the City Manager to execute any additional documents related to the Agreement. AYES: Varipapa, Kalmick, Massa-Lavitt, Moore, Sustarsic NOES: None ABSENT: None ABSTAIN: None Motion carried H. Professional Services Agreements for On-Call Traffic and Transportation Engineering Services, Professional Engineering Services and Professional Inspection Services - That the City Council adopt Resolution 6934: 1. Authorizing the City Manager to execute a professional services agreement and Addendum No. 1 with W. G. Zimmerman Engineering, Inc., in the amount of $240,000 to provide On-Call Traffic and Transportation Engineering Services for a three-year term; and, 2. Authorizing the City Manager to execute a professional services agreement and Addendum No. 1 with Iteris, Inc. in the amount of $240,000 to provide OnCall Traffic and Transportation Engineering Services for a three-year term; and, 3. Authorizing the City Manager to execute a professional services agreement with GHD, Inc. in the amount of $300,000 to provide On-Call Professional Engineering Services for a three-year term; and, 4. Authorizing the City Manager to execute a professional services agreement with Stantec Consulting Services, Inc. in the amount of $300,000 to provide On- Call Professional Engineering Services for a three-year term; and, 5. Authorizing the City Manager to execute a professional services agreement with Kreuzer Consulting Group in the amount of $300,000 to provide On-Call Professional Engineering Services for a three-year term; and, 6. Authorizing the City Manager to execute a professional services agreement with Tait & Associates, Inc. in the amount of $300,000 to provide On-Call Professional Engineering Services for a three-year term; and, 7. Authorizing the City Manager to execute a professional services agreement with EXP U.S. Services, Inc. in the amount of $300,000 to provide On-Call Professional Engineering Services for a three-year term; and, 8. Authorizing the City Manager to execute a professional services agreement and Addendum No. 1 with NV5, Inc. in the amount of $240,000 to provide OnCall Professional Inspection Services for a three-year term; and, 9. Authorizing the City Manager to execute a professional services agreement with Interwest Consulting Group, Inc. in the amount of $240,000 to provide OnCall Professional Inspection Services for a three-year term; and, 10. Authorizing the City Manager to execute a professional services agreement with Ardurra Group, Inc. dba AndersonPenna Partners, Inc. in the amount of $240,000 to provide On-Call Professional Inspection Services for a three-year term; and, 11. Authorizing the City Manager the option to execute a professional service agreement amendment to extend any or all of the agreements up to two (2) additional one-year terms after its original term. City Manager Ingram introduced Deputy Director Public Works/City Engineer Iris Lee, who gave a brief overview of the on-call agreement process and answered questions. Mayor Pro Tem Sustarsic moved, second by Council Member Varipapa, to adopt Resolution 6934: 1. Authorizing the City Manager to execute a professional services agreement and Addendum No. 1 with W. G. Zimmerman Engineering, Inc., in the amount of $240,000 to provide On-Call Traffic and Transportation Engineering Services for a three-year term; and, 2. Authorizing the City Manager to execute a professional services agreement and Addendum No. 1 with Iteris, Inc. in the amount of $240,000 to provide OnCall Traffic and Transportation Engineering Services for a three-year term; and, 3. Authorizing the City Manager to execute a professional services agreement with GHD, Inc. in the amount of $300,000 to provide On-Call Professional Engineering Services for a three-year term; and, 4. Authorizing the City Manager to execute a professional services agreement with Stantec Consulting Services, Inc. in the amount of $300,000 to provide On- Call Professional Engineering Services for a three-year term; and, 5. Authorizing the City Manager to execute a professional services agreement with Kreuzer Consulting Group in the amount of $300,000 to provide On-Call Professional Engineering Services for a three-year term; and, 6. Authorizing the City Manager to execute a professional services agreement with Tait & Associates, Inc. in the amount of $300,000 to provide On-Call Professional Engineering Services for a three-year term; and, 7. Authorizing the City Manager to execute a professional services agreement with EXP U.S. Services, Inc. in the amount of $300,000 to provide On-Call Professional Engineering Services for a three-year term; and, 8. Authorizing the City Manager to execute a professional services agreement and Addendum No. 1 with NV5, Inc. in the amount of $240,000 to provide OnCall Professional Inspection Services for a three-year term; and, 9. Authorizing the City Manager to execute a professional services agreement with Interwest Consulting Group, Inc. in the amount of $240,000 to provide OnCall Professional Inspection Services for a three-year term; and, 10. Authorizing the City Manager to execute a professional services agreement with Ardurra Group, Inc. dba AndersonPenna Partners, Inc. in the amount of $240,000 to provide On-Call Professional Inspection Services for a three-year term; and, 11. Authorizing the City Manager the option to execute a professional service agreement amendment to extend any or all of the agreements up to two (2) additional one-year terms after its original term. AYES: Varipapa, Kalmick, Massa-Lavitt, Moore, Sustarsic NOES: None ABSENT: None ABSTAIN: None N. Professional Services Agreement with ClearSource Financial Consulting for a Cost Allocation Plan and Cost Recovery Schedule (Fees) - That the City Council adopt Resolution 6940 approving and authorizing the City Manager to execute a professional services agreement with ClearSource Financial Consulting in an amount not to exceed $32,300. City Manager Ingram introduced Director of Finance/City Treasurer Victoria L. Beatley, who provided a brief overview of the benefits of consulting services with ClearSource and answered questions. Mayor Pro Tem Sustarsic moved, second by Council Member Massa-Lavitt, to adopt Resolution 6940 approving and authorizing the City Manager to execute a professional services agreement with ClearSource Financial Consulting in an amount not to exceed $32,300. AYES: Varipapa, Kalmick, Massa-Lavitt, Moore, Sustarsic NOES: None ABSENT: None ABSTAIN: None PUBLIC HEARING There were no Public Hearing items. UNFINISHED / CONTINUED BUSINESS There were no Unfinished/Continued Business items. NEW BUSINESS R. Approval of the Annual Special Taxes for Community Facilities District No. 2002-01 “Heron Pointe” - That the City Council adopt Resolution 6944 approving the Fiscal Year 2019-20 special tax levy for Community Facilities District No. 2002-01 “Heron Pointe”. City Manager Ingram introduced Director of Finance/City Treasurer Victoria L. Beatley, who explained the process of evaluation and requirements of the annual special tax levy for Community Facilities Districts (including Item S and T) and answered questions. Council Member Massa-Lavitt moved, second by Mayor Pro Tem Sustarsic, to adopt 6944 approving the Fiscal Year 2019-20 special tax levy for Community Facilities District No. 2002-01 “Heron Pointe”. AYES: Varipapa, Kalmick, Massa-Lavitt, Moore, Sustarsic NOES: None ABSENT: None ABSTAIN: None S. Approval of the Annual Special Taxes for Community Facilities District No. 2002-02 “Seal Beach Blvd/ Lampson Ave. Landscape Maintenance District” - That the City Council adopt Resolution 6945 approving the Fiscal Year 2019-20 special tax levy for Community Facilities District No. 2002-02 “Seal Beach Blvd/Lampson Ave. Landscape Maintenance District”. Director of Finance/City Treasurer Victoria Beatley provided a brief overview of the Seal Beach Blvd/Lampson Ave. Landscape Maintenance District. There were no questions. Council Member Massa-Lavitt moved, second by Mayor Pro Tem Sustarsic, to adopt Resolution 6945 approving the Fiscal Year 2019-20 special tax levy for Community Facilities District No. 2002-02 “Seal Beach Blvd/Lampson Ave. Landscape Maintenance District”. AYES: Varipapa, Kalmick, Massa-Lavitt, Moore, Sustarsic NOES: None ABSENT: None ABSTAIN: None T. Approval of the Annual Special Taxes for Community Facilities District No. 2005-01 “Pacific Gateway Business Center” - That the City Council adopt Resolution 6946 approving the Fiscal Year 2019-20 special tax levy for Community Facilities District No. 2005-01 “Pacific Gateway Business Center”. Director of Finance/City Treasurer Victoria L. Beatley provided a brief overview of the Pacific Gateway Business Center District. There were no questions. Council Member Massa-Lavitt moved, second by Mayor Pro Tem Sustarsic, to adopt Resolution 6946 approving the Fiscal Year 2019-20 special tax levy for Community Facilities District No. 2005-01 “Pacific Gateway Business Center”. AYES: Varipapa, Kalmick, Massa-Lavitt, Moore, Sustarsic NOES: None ABSENT: None ABSTAIN: None ADJOURNMENT Mayor Moore adjourned the City Council meeting in memory of Richard Davies at 8:10 p.m. to Monday, August 12, 2019 at 5:30 p.m. to meet in closed session, if deemed necessary. ______________________ Gloria D. Harper, City Clerk City of Seal Beach Approved: ___________________________ Thomas Moore, Mayor Attested: ______________________ Gloria D. Harper, City Clerk Agenda Item: C AGENDA STAFF REPORT DATE:August 12, 2019 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Steve Fowler, Interim Community Development Director SUBJECT:Authorize the City Manager to execute a Professional Services Agreement with Transtech Engineers, Inc., for Building Division Services ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 6947 to authorize the City Manager to execute a professional services agreement with Transtech Engineers, Inc. for Building Division Services. BACKGROUND AND ANALYSIS: In 2016, staff conducted an open recruitment process for the Building Official position but was unable to find a satisfactory candidate. In 2017, the City contracted the services of Transtech Engineers to provide the qualified services required of a Building Official. In 2018, the City faced fiscal constraints that limited consideration of a new recruitment to seek a full time Building Official; therefore, City Council approved the use of Transtech Engineers for Building services for a period of one year. Staff is now requesting to continue to utilize the services provided by Transtech Engineers, Inc. (Transtech) for an additional year. Transtech has provided the City with building division services, including Building Official services on a part-time basis, building inspector services to fill-in when needed, and building code plan check services. The one year period will allow continued service to the community along with assistance in the adoption of the new California Building Code. An updated California Building Code was released in 2019 and must be adopted by January 2020. The contract will include the use of Transtech’s services for the Building Code adoption process. Transtech has offered engineering, public works and building services to municipalities since 1989. Because the current professional services agreement will expire on August 30, 2019, staff is requesting that we continue with Transtech’s services given that they have become familiar with the unique needs of the 5 8 1 community and continued use of their services will maintain continuity in providing building services. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: The City Attorney has approved the proposed resolution and approved as to form. FINANCIAL IMPACT: The on-going Building Official and Building Inspector services will not require a budget amendment. Sufficient funds have been allocated for the position through the Department’s annual budget. The agreement is until August 30, 2020 in the amount not to exceed $165,000 for building division personnel services. Additionally, under the proposed Agreement, any plan check services provided will be charged to the City based on a fee in the amount not to exceed 65% of the plan check fee. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. MEASURE BB: This item is not applicable to Measure BB, the Seal Beach Neighborhood and Essential Services Protection Measure. RECOMMENDATION: That the City Council adopt Resolution 6947 authorizing the City Manager to execute a professional services agreement with Transtech Engineers, Inc., for Building Division Services. SUBMITTED BY: NOTED AND APPROVED: Steve Fowler Jill R. Ingram Steve Fowler, Interim Community Development Director Jill R. Ingram, City Manager 5 8 1 ATTACHMENTS: A. Resolution 6947 B. Professional Services Agreement Transtech Engineers, Inc RESOLUTION 6947 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH TRANSTECH ENGINEERS, INC. FOR BUILDING DIVISION SERVICES WHEREAS, pursuant to the Seal Beach City Charter, Seal Beach Municipal Code Chapter 3.20 establishes a central purchasing system including procedures for competitive bidding and exemptions from competitive bidding; and, WHEREAS, Seal Beach Municipal Code Section 3.20.025(C) provides for an exemption from competitive bidding requirements for purchases of professional services, including without limitation, architectural services; bond services; election services; engineering services; insurance services; legal services; public relations services; real estate services; and solid waste disposal services. NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: SECTION 1. The City Council hereby approves that Professional Services Agreement for on-going Building Division Services dated August 30, 2019 between the City of Seal Beach and Transtech Engineers, Inc., in an amount not to exceed $165,000 for Building Division personnel, and plan check services in the amount not to exceed 65 percent of the plan check fee, as set forth in Exhibit “A”, attached hereto and incorporated herein by this reference as though set forth in full. SECTION 2. The City Council hereby authorizes and directs the City Manager to execute the attached Agreement on behalf of the City. PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 12th day of August, 2019 by the following vote: AYES: Council Members: NOES: Council Members: ABSENT: Council Members: ABSTAIN: Council Members: Thomas Moore, Mayor Resolution 6947 ATTEST: Gloria D. Harper, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 6947 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 12th day of August, 2019. Gloria D. Harper, City Clerk {01601605;1} 2324639v2 PROFESSIONAL SERVICES AGREEMENT FOR BUILDING AND SAFETY SERVICES between City of Seal Beach 211 - 8th Street Seal Beach, CA 90740 & Transtech Engineers, Inc. 13367 Benson Avenue Chino, CA 91710 T (949) 595-8599, F (909) 590-8599 This Professional Services Agreement (“the Agreement”) is made as of August 30, 2019, (the “Effective Date”), by and between Transtech Engineers, Inc. (“Consultant”), a California corporation, and the City of Seal Beach (“City”), a California charter city, (collectively, “the Parties”). {016016051} 2 of 20 2324639v2 RECITALS A. City desires certain professional services with respect to building services. B. Pursuant to the authority provided by its City Charter and Seal Beach Municipal Code § 3.20.025(C), City desires to engage Consultant to provide professional building services in the manner set forth herein and more fully described in Section 1.0. C. Consultant represents that the principal members of its firm are qualified professional inspectors, plan checkers and building officials and are fully qualified to perform the services contemplated by this Agreement in a good and professional manner; and it desires to perform such services as provided herein. NOW THEREFORE, in consideration of the Parties' performance of the promises, covenants, and conditions stated herein, the Parties hereto agree as follows. AGREEMENT 1.0 Scope of Services 1.1. Consultant shall provide those services (“Services”) set forth in Exhibit A (Scope of Services), attached hereto and incorporated herein by this reference. To the extent that there is any conflict between Exhibit A and this Agreement, this Agreement shall control. 1.2. Consultant shall perform all Services under this Agreement in accordance with the standard of care generally exercised by like professionals under similar circumstances and in a manner reasonably satisfactory to City. 1.3. In performing this Agreement, Consultant shall comply with all applicable provisions of federal, state, and local law. 1.4. As a material inducement to City to enter into this Agreement, Consultant hereby represents that it has the experience necessary to undertake the Services to be provided. In light of such status and experience, Consultant hereby covenants that it shall follow the customary professional standards in performing all Services. The City relies upon the skill of Consultant, and Consultant’s staff, if any, to do and perform the Services in a skillful, competent, and professional manner, and Consultant and Consultant’s staff, shall perform the Services in such manner. Consultant shall, at all times, meet any and all applicable professional standards of care. The acceptance of Consultant’s work by the City shall not operate as a release of Consultant from such standard of care. 1.5. Consultant will not be compensated for any work performed not specified in the Scope of Services unless the City authorizes such work in {016016051} 3 of 20 2324639v2 advance and in writing. The City Manager may authorize extra work to fund unforeseen conditions up to the amount approved at the time of award by the City Council. Payment for additional work in excess of this amount requires prior City Council authorization. 2.0 Term 2.1. The term of this Agreement shall commence on August 30, 2019, and shall remain in full force and effect until August 30 2020 unless sooner terminated as provided in Section 5.0 of this Agreement. 3.0 Consultant’s Compensation 3.1. City will pay Consultant for Services performed in accordance with the hourly rates shown in the fee schedule set forth in Exhibit A and the Standard Hourly Rates set forth on Exhibit B, but in no event will the City pay more than the following during the term of this Agreement: (i) for building division personnel services, including Building Official/Plan Checker and Building Inspector, the City will not pay more than a total sum of $165,000 (one hundred sixty thousand dollars) during the term of this Agreement; and (ii) for Plan Check Services, the City will not pay more than 65% of the plan review fees collected per the City’s fee schedule. Any additional work authorized by the City pursuant to Subsection 1.4 will be compensated in accordance with the Standard Hourly Rates set forth in Exhibit B. In the event of any conflict or inconsistency between Exhibit A and/or Exhibit B, on the one hand, and this section, on the other hand, the terms of this section shall prevail. 3.2. Consultant will not be compensated for any work performed not specified in the Scope of Services unless the City authorizes such work in advance and in writing. The City Manager may authorize extra work to fund unforeseen conditions up to the amount approved at the time of award by the City Council. Payment for additional work in excess of this amount requires prior City Council authorization. Any additional work authorized by the City Coun cil pursuant to this Section will be compensated in accordance with the fee schedule set forth in Exhibit A. 4.0 Method of Payment 4.1. Consultant shall submit to City monthly invoices for all Services rendered pursuant to this Agreement. Such invoices shall be submitted within 15 days of the end of the month during which the Services were rendered and shall describe in detail the Services rendered during the period, the days worked, number of hours worked, the hourly rates charged, and the Services performed for each day in the period. City will pay Consultant within 30 days of receiving Consultant’s invoice. City will not withhold any applicable federal or state payroll {016016051} 4 of 20 2324639v2 and other required taxes, or other authorized deductions from payments made to Consultant. 4.2. Upon 24-hour notice from City, Consultant shall allow City or City’s agents or representatives to inspect at Consultant’s offices during reasonable business hours all records, invoices, time cards, cost control sheets and other records maintained by Consultant in connection with this Agreement. City’s rights under this Section 4.2 shall survive for three (3) years following the termination of this Agreement. 5.0 Termination 5.1. This Agreement may be terminated by City, without cause, or by Consultant based on reasonable cause, upon giving the other party written notice thereof not less than 30 days prior to the date of termination. 5.2. This Agreement may be terminated by City upon 10 days’ notice to Consultant if Consultant fails to provide satisfactory evidence of renewal or replacement of commercial general liability insurance as required by this Agreement at least 20 days before the expiration date of the previous policy. 6.0 Party Representatives 6.1. The City Manager is the City’s representative for purposes of this Agreement. 6.2. Ayla Jefferson, CBO, is the Consultant's primary representative for purposes of this Agreement. Ayla Jefferson shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the Services hereunder. Consultant may not change its representative without the prior written approval of City, which approval shall not be unreasonably withheld. 7.0 Notices 7.1. All notices permitted or required under this Agreement shall be deemed made when personally delivered or when mailed 48 hours after deposit in the United States Mail, first class postage prepaid and addressed to the party at the following addresses: To City: City of Seal Beach 211-8th Street Seal Beach, California 90740 Attn: City Manager To Consultant: Transtech Engineers, Inc. {016016051} 5 of 20 2324639v2 13367 Benson Avenue Chino, CA 91710 Attn: Ayla Jefferson, CBO 7.2. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 8.0 Independent Contractor 8.1. Consultant is an independent contractor and not an employee of the City. All work or other Services provided pursuant to this Agreement shall be performed by Consultant or by Consultant’s employees or other personnel under Consultant’s supervision, and Consultant and all of Consultant’s personnel shall possess the qualifications, permits, and licenses required by State and local law to perform such Services, including, without limitation, a City of Seal Beach business license as required by the Seal Beach Municipal Code. Consultant will determine the means, methods, and details by which Consultant’s personnel will perform the Services. Consultant shall be solely responsible for the satisfactory work performance of all personnel engaged in performing the Services and compliance with the customary professional standards. 8.2. All of Consultant’s employees and other personnel performing any of the Services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant's exclusive direction and control. Consultant and Consultant’s personnel shall not supervise any of City’s employees; and City’s employees shall not supervise Consultant’s personnel. Consultant’s personnel shall not wear or display any City uniform, badge, identification number, or other information identifying such individual as an employee of City; and Consultant’s personnel shall not use any City e-mail address or City telephone number in the performance of any of the Services under this Agreement. Consultant shall acquire and maintain at its sole cost and expense such vehicles, equipment and supplies as Consultant’s personne l require to perform any of the Services required by this Agreement. Consultant shall perform all Services off of City premises at locations of Consultant’s choice, except as otherwise may from time to time be necessary in order for Consultant’s personnel to receive projects from City, review plans on file at City, pick up or deliver any work product related to Consultant’s performance of any Services under this Agreement, or as may be necessary to inspect or visit City locations and/or private property to perform such Services. City may make a computer available to Consultant from time to time for Consultant’s personnel to obtain information about or to check on the status of projects pertaining to the Services under this Agreement. 8.3. Consultant shall be responsible for and pay all wages, salaries, benefits and other amounts due to Consultant’s personnel in connection with their performance of any Services under this Agreement and as required by law. {016016051} 6 of 20 2324639v2 Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: Social Security taxes, other retirement or pension benefits, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. Notwithstanding any other agency, State, or federal policy, rule, regulation, statute or ordinance to the contrary, Consultant and any of its officers, employees, agents, and subcontractors providing any of the Services under this Agreement shall not become entitled to, and hereby waive any claims to, any wages, salaries, compensation, benefit or any incident of employment by City, including but not limited to, eligibility to enroll in, or reinstate to membership in, the California Public Employees Retirement System (“PERS”) as an employee of City, and entitlement to any contribution to be paid by City for employer contributions or employee contributions for PERS benefits. 8.4. Consultant shall indemnify and hold harmless City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City o fficials, from any and all liability, damages, claims, costs and expenses of any nature to the extent arising from , caused by, or relating to Consultant’s personnel practices. or to the extent arising from, caused by or relating to the violation of any of the provisions of this Section 8.0. In addition to all other remedies available under law, City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consu ltant’s failure to promptly pay to City any reimbursement or indemnification arising under this Section. This duty of indemnification is in addition to Consultant’s duty to defend, indemnify and hold harmless as set forth in any other provision of this Agreement. 9.0 PERS Compliance and Indemnification 9.1. General Requirements. The Parties acknowledge that City is a local agency member of PERS, and as such has certain pension reporting and contribution obligations to PERS on b ehalf of qualifying employees. Consultant agrees that, in providing its employees and any other personnel to City to perform any work or other Services under this Agreement, Consultant shall assure compliance with the Public Employees’ Retirement Law, commencing at Government Code § 20000, the regulations of PERS, and the Public Employees’ Pension Reform Act of 2013, as amended. Without limitation to the foregoing, Consultant shall assure compliance with regard to personnel who have active or inactive membership in PERS and to those who are r etired annuitants and in performing this Agreement shall not assign or utilize any of its personnel in a manner that will cause City to be in violation of the applicable retirement laws and regulations. 9.2. Indemnification. Consultant shall defend (with legal counsel approved by City, whose approval shall not be unreasonably withheld), indemnify and hold harmless City, and its City and its elected officials, officers, employees, {016016051} 7 of 20 2324639v2 servants, designated volunteers, and agents serving as independent con tractors in the role of City officials, from any and all liability, damages, claims, costs and expenses of any nature to the extent arising from, caused by, or relating to Consultant’s violation of any provisions of this Section 9.0. This duty of indemnification is in addition to Consultant’s duty to defend, indemnify and hold harmless as set forth in any other provision of this Agreement. 10.0 Confidentiality Consultant covenants that all data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without prior written authorization by City. City shall grant such authorization if applicable law requires disclosure. All City data shall be returned to City upon the termination of this Agreement. Consultant’s covenant under this Section shall survive the termination of this Agreement. 11.0 Subcontractors No portion of this Agreement shall be subcontracted without the prior wr itten approval of the City. Consultant is fully responsible to City for the performance of any and all subcontractors. 12.0 Assignment Consultant shall not assign or transfer any interest in this Agreement whether by assignment or novation, without the prior written consent of City. Any purported assignment without such consent shall be void and without effect. 13.0 Inspection and Audit of Records Consultant shall maintain complete and accurate records with respect to all Services and other matters covered under this Agreement, including but expressly not limited to, all Services performed, salaries, wages, invoices, time cards, cost control sheets, costs, expenses, receipts and other records with respect to this Agreement. Consultant shall maintain adequate records on the Services provided in sufficient detail to permit an evaluation of all Services in connection therewith. All such records shall be clearly identified and readily accessible. At all times during regular business hours, Consultant shall provide City with free access to such records, and the right to examine and audit the same and to make copies and transcripts as City deems nece ssary, and shall allow inspection of all program data, information, documents, proceedings and activities and all other matters related to the performance of the Services under this Agreement. Consultant shall retain all financial and program service records and all other records related to the Services and performance of this Agreement for at least three (3) years after expiration, termination or final payment under this Agreement, whichever occurs later. City’s rights under this Section 13.0 shall {016016051} 8 of 20 2324639v2 survive for three (3) years after expiration, termination or final payment under this Agreement, whichever occurs later. 14.0 Safety Requirements All work performed under this Agreement shall be performed in such a manner as to provide safety to the public and to meet or exceed the safety standards outlined by CAL OSHA. The City may issue restraint or cease and desist orders to Consultant when unsafe or harmful acts are observed or reported relative to the performance of the Services. Consultant shall maintain the work sites free of hazards to persons and property resulting from its operations. Consultant shall immediately report to the City any hazardous condition noted by Contractor. 15.0 Insurance 15.1. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to the City that Consultant has secured all insurance required under this Section. Consultant shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Agreement on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by the City if requested. All certificates and endorsements shall be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. 15.2. Consultant shall, at its expense, procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damages to property that may arise from or in connectio n with the performance of this Agreement. Insurance is to be placed with insurers with a current A.M. Best's rating no less than A:VIII, licensed to do business in California, and satisfactory to the City. Coverage shall be at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001); (2) Automobile Liability: Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto); (3) Workers’ Compensation and Employer’s Liability coverages; and (4) if required by the City , Professional Liability coverage (or Errors and Omissions coverage). Consultant shall maintain limits no less than: (1) General Liability: $2,000,000 per occurrence for bodily injury, personal injury and property damage and if Commercial General Liability Insurance or other form with a general aggregate limit is used, eith er the general aggregate limit shall apply separately to this Agreement/location or the general aggregate limit shall be twice the required occurrence limit; (2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage; (3) Workers’ Compensation in the amount required by law and Employer’s Liability: $1,000,000 per accident and in the aggregate for bodily injury or disease ; and (4) Professional Liability (or Errors and Omissions Liability, as appropriate): $1,000,000 per {016016051} 9 of 20 2324639v2 claim/aggregate, and if a “claims made” policy is provided, then the policy shall be endorsed to provide an extended reporting period of not less than three years. 15.3. The insurance policies shall contain the following provisions, or Consultant shall provide endorsem ents on forms supplied or approved by the City to state: (1) coverage shall not be canceled except after 30 days prior written notice by certified U.S. mail, return receipt requested, has been given to the City (or ten (10) days if cancellation is due to nonpayment of premiums); (2) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to the City, its directors, officials, officers, (3) coverage (except for professional liability) shall be primary insurance as respects the City, its directors, officials, officers, employees, agents and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Consultant's scheduled underlying coverage and that any insurance or self - insurance maintained by the City, its directors, officials, officers, employees, agents and volunteers shall be excess of the Consultan t's insurance and shall not be called upon to contribute with it; (4) for general liability insurance, that the City, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insureds with respect to the services or operations performed by or on behalf of the Consultant, including materials, parts or equipment furnished in connection with such work; and (5) for automobile liability, that the City, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Consultant or for which the Consultant is responsible. 15.4. All insurance required by this Section (except for professional liability) shall contain standard separation of insureds provisions and shall not contain any special limitations on the scope of protection afforded to the City, its directors, officials, officers, employees, agents, and volunteers. 15.5. Any deductibles or self-insured retentions shall be declared to and approved by the City. Consultant guarantees that, at the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its directors, officials, officers, employees, agents, and volunteers; or (2) the Consultant shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses. 16.0 Indemni fication, Hold Harmless, and Duty to Defend Consultant and the City agree that the City, its elected officials, officers, attorneys, agents, employees, designated volunteers, successors, assigns and those City agents serving as independent contractors in the role of City officials (collectively “Indemnitees” in this Section 16.0) should, to the fullest extent permitted by law, be fully protected from any loss, injury, damage, claim, liability, lawsuit, cost, {016016051} 10 of 20 2324639v2 expense, attorneys’ fees, litigation costs, defense costs, court costs and/or any other cost to the extent arising out of or related to the Consultant’s performance of this Agreement. Accordingly, the provisions of this indemnity provision are intended by the Parties to be interpreted and construed to provide the fullest protection possible under the law to the City and all other Indemnitees. Consultant acknowledges that the City would not have entered into this Agreement in the absence of the commitment of Consultant to indemnify and protect the City and the other Indemnitees, as set forth in this Agreement. 16.1. Indemnity for Professional Services. To the fullest extent permitted by law, Consultant shall, at its sole cost and expense, defend indemnify and hold harmless the City, its elected officials, officers, attorneys, agents, employees, designated volunteers, successors, assigns and those City agents serving as independent contractors in the role of City officials (collectively "Indemnitee s" in this Section 16.0), from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, judgments, penalties, liens, and losses of any nature whatsoever, including fees of accountants and other professionals, and all costs associated therewith, and reimbursement of reasonable attorneys' fees and costs of defense (collectively "Claims"), whether actual, alleged or threatened, , which to the extent they arise out of, pertain to, or relate to, in whole or in part, the negligence, recklessness or willful misconduct of Consultant, and/or its officers, agents, servants, employees, subcontractors, contractors or their officers, agents, servants or employees (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this Agreement. Consultant shall defend the Indemnitees in any action or actions filed in connection with any such Claims with counsel of the Indemnitees’ choice, and shall pay all costs and expenses, including all attorneys’ fees and experts’ costs actually incurred in connection with such defense. Consultant shall reimburse the Indemnitees for any and all legal expenses and costs incurred by the Indemnitees in connection therewith . 16.2. Indemnification for Other than Professional Services. Other than in the performance of professional services, and to the fullest extent permitted by law, Consultant shall, at its sole cost and expense, protect, defend, hold harmless and indemnify the Indemnitees from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, judgments, penalties, liens and losses of any nature whatsoever, including reasonable fees of accountants, attorneys and other professionals, and all costs associated therewith, and the payment of all consequential damages (collectively “Damages”), in law or equity, whether actual, alleged or threatened, which arise out of, pertain to, or relate to the acts or omissions of Consultant, its officers, agents, servants, employees, subcontractors, materialmen, suppliers, or contractors, or their officers, agents, servants or employees (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of this Agreement, includi ng the Indemnitees’ active or passive negligence, except to the extent Damages arise {016016051} 11 of 20 2324639v2 from the sole negligence or willful misconduct of the Indemnitees, as determined by final arbitration or court decision or by the agreement of the Parties. Consultant shall defend the Indemnitees in any action or actions filed in connection with any Damages with counsel of the Indemnitees’ choice, and shall pay all costs and expenses, including all attorneys’ fees and experts’ costs actually incurred in connection with such defense. Consultant shall reimburse the Indemnitees for any and all legal expenses and costs incurred by the Indemnitees in connection therewith. 16.3. Subcontractor Indemnification. Consultant shall obtain executed indemnity agreements with provisions identical to those in this Section 16.0 from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. If Consultant fails to obtain such indemnities, Consultant shall be fully responsible and indemnify, hold harmless and defend the Indemnitees from and against any and all Claims in law or equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Consultant’s subcontractor, its officers, agents, servants, employees, subcontractors, materialmen, contractors or their officers, agents, servants or employees (or any entity or individual that Consultant’s subcontractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Claims or Damages arising from the sole negligence or willful misconduct of the Indemnitees, as determined by final arbitration or court decision or by the agreement of the Parties. 16.4. The obligations of Consultant under this or any other provision of this Agreement shall not be limited by the provisions of any workers’ compensation act or similar act. Consultant expressly waives any statutory immunity under such statutes or laws as to the Indemnitees. Consultant’s indemnity obligation set forth in this Section 16.0 shall not be limited by the limits of any policies of insurance required or provided by Consultant pursuant to this Agreement. 16.5. Consultant’s covenants under this Section 1 6.0 shall survive the expiration or termination of this Agreement. 17.0 Equal Opportunity Consultant affirmatively represents that it is an equal opportunity employer. Consultant shall not discriminate against any subcontractor, employee, or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex, sexual orientation, or age. Such non-discrimination includes, but is not limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, or termination. {016016051} 12 of 20 2324639v2 18.0 Labor Certification By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code that require every employer to be insured against liability for Workers’ Compensation or to undertake self -insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services. 19.0 Prevailing Wage and Payroll Records If this Agreement calls for services that, in whole or in part, constitute “public works” as defined in the California Labor Code, then Consultant shall comply in all respects with all applicable provisions of the California Labor Code, including those set forth in Exhibit B, attached hereto and incorporated by reference herein. 20.0 Entire Agreement This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings, or agreements. This Agreement may only be modified by a writing signed by both Parties. 21.0 Severability The invalidity in whole or in part of any provisions of this Agreement shall not void or affect the validity of the other provisions of this Agreement. 22.0 Governing Law This Agreement shall be governed by and construed in accordance with the laws of the State of California. 23.0 No Third Party Rights No third party shall be deemed to have any rights hereunder against either party as a result of this Agreement. 24.0 Waiver No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a party shall give the o ther party any contractual rights by custom, estoppel, or otherwise. 25.0 Prohibited Interests; Conflict of Interest {016016051} 13 of 20 2324639v2 25.1. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the Services, or which would conflict in any manner with the performance of the Services. Consultant further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, Consultant shall avoid the appearance of having any interest, which would conflict in any manner with the performance of the Services. Consultan t shall not accept any employment or representation during the term of this Agreement which is or may likely make Consultant "financially interested" (as provided in California Government Code §§ 1090 and 87100) in any decision made by City on any matter i n connection with which Consultant has been retained. 25.2. Consultant further warrants and maintains that it has not employed or retained any person or entity, other than a bona fide employee working exclusively for Consultant, to solicit or obtain this Agreem ent. Nor has Consultant paid or agreed to pay any person or entity, other than a bona fide employee working exclusively for Consultant, any fee, commission, gift, percentage, or any other consideration contingent upon the execution of this Agreement. Upon any breach or violation of this warranty, City shall have the right, at its sole and absolute discretion, to terminate this Agreement without further liability, or to deduct from any sums payable to Consultant hereunder the full amount or value of any such fee, commission, percentage or gift. 25.3. Consultant warrants and maintains that it has no knowledge that any officer or employee of City has any interest, whether contractual, non - contractual, financial, proprietary, or otherwise, in this transaction or in the business of Consultant, and that if any such interest comes to the knowledge of Consultant at any time during the term of this Agreement, Consultant shall immediately make a complete, written disclosure of such interest to City, even if such interest would not be deemed a prohibited "conflict of interest" under applicable laws as described in this subsection 26.0 Attorneys' Fees If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party all of its attorneys’ fees and other costs incurred in connection therewith. 27.0 Exhibits All exhibits referenced in this Agreement are hereby incorporated into the Agreement as if set forth in full herein. In the event of any material discrepancy {016016051} 14 of 20 2324639v2 between the terms of any exhibit so incorporated and the terms of this Agreement, the terms of this Agreement shall control. 28.0 Corporate Authority The person executing this Agreement on behalf of Consultant warrants that he or she is duly authorized to execute this Agreement on behalf of said party and that by his or her execution, the Consultant is formally bound to the provisions of this Agreement. IN WITNESS WHEREOF, the Parties hereto, through their respective authorized representatives have executed this Agreement as of the date and year first above written. CITY OF SEAL BEACH By: _________________________ Jill R. Ingram, City Manager Attest: By: _________________________ Gloria D. Harper, City Clerk Approved as to Form: By: _________________________ Craig A. Steele, City Attorney {01601605;1} 15 of 20 2324639v2 CONSULTANT: TRANSTECH ENGINEERS, INC. By: __________________________ Name: Ayla Jefferson Its: Principal Building Official By: __________________________ Name: Dennis Tarango Its: Principal Building Official {01601605;1} 16 of 20 2324639v2 EXHIBIT A SCOPE OF SERVICES {01601605;1} 17 of 20 2324639v2 {01601605;1} 18 of 20 2324639v2 EXHIBIT B TERMS FOR COMPLIANCE WITH CALIFORNIA LABOR LAW REQUIREMENTS 1. This Agreement calls for services that, in whole or in part, constitute “public works” as defined in Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code (“Chapter 1”). Further, Consultant acknowledges that this Agreement is subject to (a) Chapter 1 and (b) the rules and regulations established by the Department of Industrial Relations (“DIR”) implementing such statutes. Therefore, as to those Services that are “public works”, Consultant shall comply with and be bound by all the terms, rules and regulations described in 1(a) and 1(b) as though set forth in full herein. 2. California law requires the inclusion of specific Labor Code provisions in certain contracts. The inclusion of such specific provisions below, whether or not required by California law, does not alter the meaning or scope of Section 1 above. 3. Consultant shall be registered with the Department of Industrial Relations in accordance with California Labor Code Section 1725.5, and has provided proof of registration to City prior to the Effective Date of this Agreement. Consultant shall not perform work with any subcontractor that is not registered with DIR pursuant to Section 1725.5. Consultant and subcontractors shall maintain their registration with the DIR in effect throughout the duration of this Agreement. If Consultant or any subcontractor ceases to be registered with DIR at any time during the duration of the project, Consultant shall immediately notify City. 4. Pursuant to Labor Code Section 1771.4, Consultant’s Services are subject to compliance monitoring and enforcement by DIR. Consultant shall post job site notices, as prescribed by DIR regulations. 5. Pursuant to Labor Code Section 1773.2, copies of the prevailing rate of per diem wages for each craft, classification, or type of worker needed to perform the Agreement are on file at City Hall and will be made available to any interested party on request. Consultant acknowledges receipt of a copy of the DIR determination of such prevailing rate of per diem wages, and Consultant shall post such rates at each job site covered by this Agreement. 6. To the extent applicable, Consultant shall comply with and be bound by the provisions of Labor Code Sections 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. Consultant shall, as a penalty to City, forfeit $200.00 for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the DIR for the work or craft in which the worker is employed for any public work done pursuant to this Agreement by Consultant or by any subcontractor. 7. To the extent applicable, Consultant shall comply with and be bound by the provisions of Labor Code Section 1776, which requires Consultant and each subcontractor to: keep accurate payroll records and verify such records in writing under penalty of perjury, as {01601605;1} 19 of 20 2324639v2 specified in Section 1776; certify and make such payroll records available for inspection as provided by Section 1776; and inform City of the location of the records. 8. To the extent applicable, Consultant shall comply with and be bound by the provisions of Labor Code Sections 1777.5, 1777.6 and 1777.7 and California Code of Regulations, Title 8, Section 200 et seq. concerning the employment of apprentices on public works projects. Consultant shall be responsible for compliance with these aforementioned Sections for all apprenticeable occupations. Prior to commencing work under this Agreement, Consultant shall provide City with a copy of the information submitted to any applicable apprenticeship program. Within 60 days after concluding work pursuant to this Agreement, Consultant and each of its subcontractors shall submit to City a verified statement of the journeyman and apprentice hours performed under this Agreement. 9. Consultant shall not perform work with any Subcontractor that has been debarred or suspended pursuant to California Labor Code Section 1777.1 or any other federal or state law providing for the debarment of contractors from public works. Consultant and subcontractors shall not be debarred or suspended throughout the duration of this Contract pursuant to Labor Code Section 1777.1 or any other federal or state law providing for the debarment of contractors from public works. If Consultant or any subcontractor becomes debarred or suspended during the duration of the project, Consultant shall immediately notify City. 10. To the extent applicable, Consultant acknowledges that eight hours labor constitutes a legal day’s work. To the extent applicable, Consultant shall comply with and be bound by Labor Code Section 1810, and Consultant shall comply with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours. Consultant shall, as a penalty to City, forfeit $25.00 for each worker employed in the performance of this Agreement by Consultant or by any subcontractor for each calendar day during which such worker is required or permitted to work more than eight hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the Labor Code. To the extent applicable, pursuant to Labor Code Section 1815, work performed by employees of Consultant in excess of eight hours per day, and 40 hours during any one week shall be permitted upon public work upon compensation for all hours worked in excess of eight hours per day at not less than one and one-half times the basic rate of pay. 11. California Labor Code Sections 1860 and 3700 provide that every employer will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, Consultant hereby certifies as follows: “I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.” 12. For every subcontractor who will perform work on the project, Consultant shall be responsible for such subcontractor’s compliance with Chapter 1 and Labor Code Sections {01601605;1} 20 of 20 2324639v2 1860 and 3700, and Consultant shall include in the written contract between it and each subcontractor a copy of those statutory provisions and a requirement that each subcontractor shall comply with those statutory provisions. Consultant shall be required to take all actions necessary to enforce such contractual provisions and ensure subcontractor’s compliance, including without limitation, conducting a periodic review of the certified payroll records of the subcontractor and upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages. Consultant shall diligently take corrective action to halt or rectify any failure. 13. To the maximum extent permitted by law, Consultant shall indemnify, hold harmless and defend (at Consultant’s expense with counsel reasonably acceptable to City) City, its officials, officers, employees, agents and independent contractors serving in the role of City officials, and volunteers from and against any demand or claim for damages, compensation, fines, penalties or other amounts arising out of or incidental to any acts or omissions listed above by any person or entity (including Consultant, its subcontractors, and each of their officials, officers, employees and agents) in connection with any work undertaken or in connection with the Agreement, including without limitation the payment of all consequential damages, attorneys’ fees, and other related costs and expenses. All duties of Consultant under this Section shall survive the termination of the Agreement. Agenda Item: D AGENDA STAFF REPORT DATE:August 12, 2019 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Steve Myrter, P.E., Public Works Director SUBJECT: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 6948 confirming the adjustment of the bidding threshold for Public Works contract to $33,970 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 1st.” 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. On July 23, 2018, the City Council adopted Resolution 6851 increasing the Public Works contracts threshold to $33,367 to account for a CCI increase of 3.41 percent. Based on the June 2019 ENR publication, the CCI has increased 1.81 percent, from 11068 to 11268. This increase includes one year of adjustments to the bidding threshold. A 1.81 percent increase would bring the bidding threshold from $33,367 to $33,970. 5 7 6 This does not waive requirements of competitive bidding on projects. All projects over the proposed threshold of $33,970 would require formal bidding procedures and contracts per the City Charter and be awarded at a City Council meeting. Contracts for projects under the proposed threshold of $33,970 may 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 resolution and approved as to form. FINANCIAL IMPACT: There is no financial impact for this item. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. MEASURE BB: This item is not applicable to Measure BB, the Seal Beach Neighborhood and Essential Services Protection Measure. RECOMMENDATION: That the City Council conduct a public hearing, and after considering all testimony and evidence presented, adopt Resolution 6948 confirming the adjustment of the bidding threshold for Public Works contract to $33,970 pursuant to the City Charter Section 1010. SUBMITTED BY: NOTED AND APPROVED: Steve Myrter Jill R. Ingram Steve Myrter, P.E., Public Works Director Jill R. Ingram, City Manager Prepared by: Iris Lee, Deputy Director of Public Works/City Engineer ATTACHMENTS: A. Resolution 6948 B. ENR Construction Cost Index RESOLUTION 6948 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL CONFIRMING AN ADJUSTMENT TO THE BIDDING THRESHOLD FOR PUBLIC WORKS CONTRACTS TO $33,970 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 and the ENR for the previous June 1st; 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 ENR Construction Cost Index was 11068 for June 2018, and the bidding threshold was set at $33,367; and, WHEREAS, the ENR Construction Cost Index is 11268 for June 2019, representing a 1.81 percent increase, and raising the bidding threshold to $33,970; and, WHEREAS, on August 12, 2019, the City Council held a duly noticed public hearing regarding the proposed adjustment threshold. NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: The City Council finds all facts in the above recitals are true and correct and hereby confirms the adjustment of the bidding threshold amount to $33,970 as required by City Charter Section 1010. PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 12th day of August 2019 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Thomas Moore, Mayor ATTEST: Gloria D. Harper, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 6948 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 12th day of August 2019. Gloria D. Harper, City Clerk +0.3% CCI +1.8% CCI +0.4% BCI +1.9% BCI 6.0 4.0 5.0 1.0 3.0 2.0 -.25 1.0 7.0 % CHANGE0 -.50 .25 .75 .50 % CHANGE ANNUAL CONSTRUCTION COST INDEX ANNUAL BUILDING COST INDEX MONTHLY BUILDING COST INDEX MONTHLY CONSTRUCTION COST INDEX FEB.MAR.JUNE ’19MAY ’18 JUNE JULY AUG.SEPT.OCT.APR.MAYNOV.JAN.DEC. FEB.MAR.JUNE ’19MAY ’18 JUNE JULY AUG.SEPT.OCT.APR.MAYNOV.JAN.DEC. Inflation’s Pulse Year-to-year and monthly percent changes for ENR’s cost indexes Cost Index Review SOURCE: ENR INFLATION ANNUAL ESCALATION FOR COMMON LABOR REACHED 1.8% IN MAY, WHILE SKILLED LABOR EXPERIENCED A 2.0% ESCALATION IN THE SAME TIME PERIOD. +1.8% Common Labor Index CONSTRUCTION BUILDING SKILLED WAGES COMMON WAGES 2018 May 11012.77 1025.34 5995.06 887.38 10276.76 1009.88 23204.81 1120.39 June 11068.57 1030.65 6004.80 889.15 10276.76 1009.88 23320.83 1125.51 July 11116.42 1034.89 6042.91 894.46 10276.76 1009.88 23344.15 1126.71 Aug.11124.49 1035.64 6060.07 897.00 10297.31 1012.35 23344.15 1126.71 Sept.11170.28 1039.90 6081.34 900.15 10348.80 1017.01 23437.53 1131.46 Oct.11183.28 1040.94 6092.62 901.95 10379.85 1020.38 23484.41 1133.55 Nov.11183.78 1041.16 6093.13 902.02 10379.85 1020.38 23484.41 1133.55 Dec.11185.51 1041.32 6105.29 903.69 10410.99 1023.12 23484.41 1133.55 Jan.11205.74 1043.21 6107.70 904.05 10431.81 1024.67 23531.38 1136.25 Feb.11213.07 1043.89 6108.09 904.11 10435.98 1025.12 23554.91 1137.38 2019 Mar.11227.88 1045.27 6109.67 904.34 10441.20 1025.62 23602.02 1139.41 Apr.11228.07 1045.28 6109.83 904.36 10441.20 1025.62 23602.02 1139.41 May 11230.01 1045.47 6111.77 904.65 10441.20 1025.62 23602.02 1139.41 June 11268.48 1049.05 6118.34 905.52 10482.96 1029.43 23743.63 1146.06 1913 1967 1913 1967 1913 1967 1913 1967BASE YEAR Building Cost Index 1913=100 INDEX VALUE MONTH YEAR BUILDING COST 6118.34 +0.1%+1.9% SKILLED LABOR 10482.96 +0.4%+2.0% WAGE $/HR.57.96 +0.4%+2.0% The Building Cost Index’s annual escalation rate stayed at 1.9%, while the monthly component showed increased 0.1%. Construction Cost Index 1913=100 INDEX VALUE MONTH YEAR CONSTRUCTION COST 11268.48 +0.3%+1.8% COMMON LABOR 23743.63 +0.6%+1.8% WAGE $/HR.45.56 +0.6%+1.8% The Construction Cost Index’s annual escalation rate fell to 1.8% this month, with the monthly component showing increasing 0.3%. Material Cost Index 1913=100 INDEX VALUE MONTH YEAR MATERIALS COST 3442.37 –0.3%+3.8% CEMENT $/TON 135.63 +2.4%+17.8% STEEL $/CWT 54.55 0.0%+2.9% LUMBER $/MBF 588.87 –1.6%–3.1% The MCI decreased 0.3% this month, while the annual escalation rate is 3.8%. +1.8%–0.3% JUNE 2019 JUNE 2019 +1.9 % JUNE 2019 MONTHLY INFLATION RATEANNUAL INFLATION RATEANNUAL INFLATION RATE ENR’s 20-city average cost indexes, wages and material prices. Historical data and details for ENR’s 20 cities can be found at ENR.com/economics CONSTRUCTION ECONOMICS 0603_CE_WK1.indd 96 5/29/19 3:04 PM 2018-2019 270 280 290 300 310 320 1992=100 PAVING ASPHALT MAS’18 MF J’19ONDJ 2018-2019 150 151 152 153 154 155 1992=100 CONCRETE BLOCK MAS’18 MF J’19ONDJ 2018-2019 175 180 185 190 195 200 1992=100 PORTLAND CEMENT MAS’18 MF J’19ONDJ 2018-2019 350 354 358 362 366 370 1992=100 READY-MIX CONCRETE MAS’18 MF J’19ONDJ Cement prices rose 1.9% in April following a 0.2% increase in March, according to the Bureau of Labor Statistics’ producer price index. Annual escalation for the index increased to 3.5%, after sitting at 2.3% in March. ENR’s 20-city average price for masonry cement rose 2.6% in June, with yearly prices 9.1% above June 2018’s level. All four types of asphalt paving and all three types of concrete block had yearly increases in June. Monthly prices for portland cement rose 2.6%, with yearly prices up 19.0%. Yearly prices for all three types of crushed stone rose in June. PRODUCER PRICE INDEX CEMENT Monthly Percent Change SOURCE: BUREAU OF LABOR STATISTICS ENR’s Materials Prices For June 2019 ASPHALT PAVING CONCRETE BLOCK PORTLAND CEMENT READY-MIX CONCRETE ASPHALT PRICES ROSE 0.8% THIS MONTH, WHILE YEARLY PRICES ARE UP 9.1%. PRICES FOR CONCRETE BLOCK EXPERIENCED NO CHANGE SINCE LAST MONTH. MONTHLY PRICES FOR PORTLAND CEMENT INCREASED 1.3% SINCE MAY. READY-MIX-CONCRETE PRICES INCREASED 0.4% THIS MONTH AND 1.3% FOR THE YEAR. +1.3% +0.8 % 0.0% +0.4% 1992=100 1992=100 1992=100 1992=100 SOURCE: ENR 2.0 1.5 2.5 1.0 0.5 -0.5 -1.0 -1.5 -2.0 -3.0 -2.5 0 3.0 PERCENTAGE+1.9% NM’18 SJ M’19J 20-CITY AVERAGE ASPHALT PAVING PG 58 TON 431.81 +0.8 +9.1 Cutback, MC800 TON 393.29 +0.3 +1.4 Emulsion, RAPID SET TON 360.82 0.0 +0.4 Emulsion, SLOW SET TON 371.20 0.0 +0.3 PORTLAND CEMENT Type one TON 137.44 +1.3 +19.0 MASONRY CEMENT 70-lb bag TON 10.43 +2.6 +9.1 CRUSHED STONE Base course TON 10.30 +0.4 +2.4 Concrete course TON 10.85 –0.1 +0.2 Asphalt course TON 11.25 +0.1 +0.3 SAND Concrete TON 9.30 +0.9 +1.4 Masonry TON 11.96 +6.5 +8.6 READY-MIX CONCRETE 3,000 psi CY 116.03 +0.4 +1.3 4,000 psi CY 133.17 –0.4 –1.5 5,000 psi CY 175.49 +1.1 +11.7 CONCRETE BLOCK Normal weight: 8” x 8” x 16”C 144.51 0.0 +2.2 Lightweight: 8” x 8” x 16”C 169.99 –0.1 +1.1 12” x 8” x 16”C 180.04 0.0 +1.0 ITEM UNIT $PRICE %MONTH %YEAR CONSTRUCTION ECONOMICS 0603_CE_WK1.indd 97 5/29/19 3:04 PM Asphalt, Cement, Aggregate, Concrete, Block For June 2019 + OR – DENOTES PRICE HAS RISEN OR FALLEN SINCE PREVIOUS REPORT. QUOTES ARE DELIVERED PRICES FOR PORTLAND AND MASONRY CEMENT, CONCRETE BLOCK AND READY-MIX CONCRETE. PRICES FOR CRUSHED STONE AND SAND ARE FOB PLANT. SOME PRICES MAY INCLUDE TAXES OR DISCOUNTS. FURTHER PRODUCT SPECIFICATIONS INCLUDE RAPID-SET EMULSION, CRS2; SLOW-SET EMULSION, CSS1H; BASE COURSE, 1½’’ DOWN TO DUST, UNWASHED; CONCRETE COURSE, 1½’’ THROUGH #4, WASHED; ASPHALT COURSE, ½’’ THROUGH #4, UNWASHED; CONCRETE SAND, 2NS MEDIUM CLEAN; MASONRY SAND, 2NS FINE CLEAN; CONCRETE BLOCK, 2 CORE. QUANTITIES ARE GENERALLY TRUCKLOADS. City prices reflect quotes 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 in- formation to analyze national trends. ITEM UNIT ATLANTA BALTIMORE BIRMINGHAM BOSTON CHICAGO CINCINNATI CLEVELAND DALLAS DENVER DETROIT ASPHALT PAVING PG 58 TON 423.00 +508.33 +397.16 +439.15 407.79 +508.37 +484.17 413.02 +409.97 402.50 CUTBACK, MC800 TON 408.62 ––+387.70 +427.70 397.65 ––378.00 396.46 +398.33 388.00 EMULSION, RAPID SET TON 370.85 ––361.56 +381.39 383.45 ––369.00 365.10 +367.00 355.50 EMULSION, SLOW SET TON 378.56 ––370.45 +383.92 390.22 ––388.00 380.75 +369.73 411.00 PORTLAND CEMENT TYPE ONE TON 115.29 +147.34 111.15 121.37 +119.41 +107.30 +114.27 117.07 124.00 146.37 MASONRY CEMENT 70-LB BAG TON 9.35 +10.88 +8.96 10.00 +9.90 +13.25 9.45 9.61 11.10 10.60 CRUSHED STONE BASE COURSE TON 10.18 12.25 8.70 10.60 –9.98 12.75 +9.95 10.01 11.45 6.45 CONCRETE COURSE TON 10.90 14.15 9.88 10.88 –11.56 11.45 8.29 10.32 10.91 7.80 ASPHALT COURSE TON 11.28 14.35 10.30 10.52 +11.09 ––10.96 10.99 11.58 9.58 SAND CONCRETE TON 9.25 17.50 9.44 9.84 9.41 +8.50 +6.50 9.10 9.78 8.07 MASONRY TON 11.03 17.50 10.69 11.11 11.05 15.00 12.75 10.97 11.42 8.20 READY-MIX CONCRETE 3,000 PSI CY +119.91 123.65 114.81 122.90 125.80 100.00 114.00 +118.14 125.10 124.00 4,000 PSI CY +131.36 +126.80 126.65 133.49 147.53 –126.00 128.52 +125.36 131.89 –136.00 5,000 PSI CY +147.79 +212.80 139.72 150.10 165.77 –191.20 255.36 +137.80 146.37 –218.60 CONCRETE BLOCK NORMAL WEIGHT: 8” x 8” x 16”C +150.88 163.00 133.86 148.09 145.39 125.00 184.00 142.46 148.60 121.00 LIGHTWEIGHT: 8” x 8” x 16”C +170.65 187.00 160.45 171.50 178.84 178.00 175.80 165.20 167.08 200.00 ITEM UNIT KANSAS CITY LOS ANGELES MINNEAPOLIS NEW ORLEANS NEW YORK PHILADELPHIA PITTSBURGH ST. LOUIS SAN FRANCISCO SEATTLE ASPHALT PAVING PG 58 TON +484.00 –370.00 392.00 +401.00 433.45 428.91 +500.00 +495.00 378.00 +420.28 CUTBACK, MC800 TON 342.00 +380.00 378.00 –380.45 407.98 447.23 377.04 388.50 390.00 +405.56 EMULSION, RAPID SET TON 322.00 350.00 328.00 –362.86 376.19 387.65 314.20 378.00 355.00 367.00 EMULSION, SLOW SET TON 338.00 344.00 312.70 –371.09 381.33 403.58 314.20 404.00 362.00 378.00 PORTLAND CEMENT TYPE ONE TON 117.55 +215.96 +146.28 120.86 +126.97 118.04 141.89 145.21 117.05 117.49 MASONRY CEMENT 70-LB BAG TON 9.55 11.25 +10.87 9.54 +9.90 9.80 –11.15 +13.07 +12.97 9.00 CRUSHED STONE BASE COURSE TON 10.64 11.33 8.18 10.50 –12.85 11.54 10.40 8.00 9.70 +10.00 CONCRETE COURSE TON 16.40 9.78 8.88 +10.91 –14.85 11.90 10.38 7.91 9.70 +10.12 ASPHALT COURSE TON 16.40 10.98 8.15 11.11 +13.77 12.58 9.52 9.00 10.44 +11.18 SAND CONCRETE TON 9.15 9.46 6.10 +10.42 +11.26 9.74 7.86 6.50 9.00 9.15 MASONRY TON 14.00 10.56 8.32 +10.90 –10.99 10.11 9.42 9.05 +25.00 11.07 READY-MIX CONCRETE 3,000 PSI CY 112.25 +123.50 110.00 115.89 117.08 +118.47 96.14 113.00 108.50 117.52 4,000 PSI CY –156.80 +132.00 124.80 130.20 126.56 –137.40 –151.94 –137.20 117.00 135.71 5,000 PSI CY –228.00 +137.50 +188.80 144.05 139.57 +161.05 –207.60 212.00 125.09 158.65 CONCRETE BLOCK NORMAL WEIGHT: 8” x 8” x 16”C 163.00 +145.00 110.00 –139.12 149.00 157.71 142.00 136.00 142.80 143.32 LIGHTWEIGHT: 8” x 8” x 16”C 142.00 159.33 187.00 –152.65 170.14 175.06 178.00 165.00 –167.00 167.70 CONSTRUCTION ECONOMICS 0603_CE_WK1.indd 98 5/29/19 3:05 PM