HomeMy WebLinkAboutCC AG PKT 2007-12-10 # Y
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AGENDA REPORT
DATE: December 10, 2007
TO: Honorable Mayor and City Council
THRU: David N. Carmany. City Manager
FROM: Vince Mastrosimone, Director of Public Works
SUBJECT: ADJUSTMENT TO PUBLIC WORKS CONTRACTS IN
ACCORDANCE WITH SEAL BEACH CITY CHARTER
SECTION 1010
SUMMARY OF REQUEST:
The proposed City Council action will conduct a public hearing and adopt Resolution No. _
confirming the adjustment to the bidding threshold on Public Works Contracts as authorized by
the City Charter, Section 1010 from $23,300 to $24.000
BACKGROUND:
In March of 2002, the City Charter. Fiscal Administration, Section 1010 was amended to include
a formal procedure to calculate the bidding threshold for Public Works Contracts. At that time.
the bidding threshold was established at $20.000 with specific requirements for the City
Engineer to adjust the bidding threshold by "computing the percentage difference between the
current Engineering News Record (ENR) Construction Cost Index - 20 City Average and the
ENR for the previous June I" or previous increase. The previous July 2002 Construction Cost
Index was 6605 and the May 2005 Construction Cost Index was 7398 indicating a 12% increase.
which was approved. The July 2006 Construction Cost Index was 7721 indicating that a 4%
increase as approved. The July 2007 Construction Cost Index was 7959 reflecting a 3% increase
is warranted.
As stated in the Charter, the "City Council shall review such adjustment at a public hearing and
upon Council confirmation, the bidding threshold amount shall be the adjusted figure." This
adjustment is required by the City Charter to enable the Public Works Department to maintain
purchasing power current with inflation as it relates to construction. As reflected in the above
numbers, inflation necessitates the adjustment as was previously adjusted in July of 2006. As
proposed, all projects over $24,000 would require formal bidding procedures and contracts.
Projects under $24,000 would be permitted to use written informal bidding procedures and
contracts. (The current threshold is $23,300) All Departments are required to follow the specific
fiscal p~ocedures as outlined in the Charter and existing Policies and Procedures governing
contracting for Public Works.
Agenda Item Y
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FISCAL IMPACT:
As proposed, there will be no negative impact on the general fund. Rather. there may be cost
savings. All contracts completed under this threshold are within the existing budget as approved
by City Council. Maintaining the existing bidding threshold limits purchasing power and may
require additional expense to produce and use formal plans and specifications, reports, notices.
consultant services and staff resources. Thus. if the adjustment is confirmed, the City will not
have to incur this additional expense.
RECOMMENDATION:
It is recommended that City Council conduct a public hearing and adopt resolution _,
confirming an adjustment to the bidding threshold on Public Works Contracts as authorized by
the City Charter, Section 1010 from $23,300 to $24,000.
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Vince Mastrosimone
Director of Public Works
NOTED AND APPROVED:
cr~l
David N. Carmany. City Manager
Attachment: Resolution No. _ Bidding Threshold on Public Works Contracts
RESOLUTION NUMBER
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEAL BEACH CONFIRMING AN ADJUSTMENT TO THE
BIDDING THRESHOLD ON PUBLIC WORKS CONTRACTS IN
ACCORDANCE WITH SECfION 1010 OF THE CITY CHARTER
WHEREAS, the City Charter requires the City Engineer to adju,t the biddmg thre,hold
hy computing the percenlage difference between the curren I Engmeering
New, Record (ENR) Con,truclion Co,t Index - 20 City Average and the
ENR for the previou, June I;
WHEREAS, the CIty Charter requires the Clly Council to review such adjustment at a
public hearing and upon Council confirmation, the bidding threshold
amount ,hall be the adju,ted figure;
WHEREAS. the Engioeering New Record Construction Cost Index was 6605 for July
2002 and the bidding threshold was set at $20,000; and
WHEREAS, lhe Engineering New Record ConslNClton Co,t Index was 7721 for July
2006 representing a 4% increa,e.
WHEREAS, the Engineering New Record Construction Cost Index i, 7959 for July
2rn7 representing a 3% increa,e.
The City Council of the City of Seal Beach hereby resolve, as follows:
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SECTION I. The City Council hereby confirm, the adjustment to the bidding thre,hold
amount to $24,000 as required by City Charter Section 1010.
PASSED, APPROVED AND ADOPTED by the City Council of Seal Beach. at a regular
meeting held on the 10th day of December .2007 by the following vote:
A YES: COUNCILMEMBERS
NOES: COUNCILMEMBERS
ABSENT: COUNCa~ERS
ABSTAIN: COUNCILMEMBERS
Mayor
ATIEST:
City Clerk
STATEOfCAUFORNIA }
COUNTY Of ORANGE } SS
CITY Of SEAL BEACH }
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I, Unda Devine, City Clerk for the City of Seal Beach, California, do hereby certify that
the foregoing resolution is the original copy of Re,olution Number_ on file m the
office of the City Clerk, passed, approved, and adopted by the City Council of the City of
Seal Beach at a regular meeltng held on the 10th day of December. 2007.
City Clerk