HomeMy WebLinkAboutCC AG PKT 2008-08-25 #GAGENDA STAFF REPORT
DATE: August 25, 2008
TO: Honorable Mayor and City Council
THRU: David 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 City Council is asked to conduct a public hearing and adopt Resolution No.
5778 confirming the adjustment to the bidding threshold on Public Works
Contracts as authorized by the City Charter, Section 1010 from $24,000 to
$25,000.
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. The bidding threshold is adjusted annually based upon
the "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 1"or previous increase.
At the December 2007 City Council Meeting, Council approved a 3% bidding
threshold increase from $23,300 to $24,000. This was adjusted based upon the
July 2006 CCI of 7721 to July 2007 CCI of 7959.
Now in July 2008, the CCI has increased 4.19% (say 4%) from 7959 to 8293. A
4% increase would increase the bidding threshold from $24,000 to $25,000.
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 December of 2007.
Agenda Item G
Page 2
As proposed, all projects over $25,000 would require formal bidding procedures
and contracts. Projects under $25,000 would be permitted to use written,
informal bidding procedures and contracts. All Departments are required to follow
the specific fiscal procedures as outlined in the Charter and existing Policies and
Procedures governing contracting for Public Works.
FINANCIAL IMPACT:
As proposed, there will be no negative impact on the genera{ 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 No. 5778 confirming an adjustment to the bidding threshold on Public
Works Contracts as authorized by the City Charter, Section 1010 from $24,000 to
$25,000.
SUB I BY:
Vince Mastrosimone
Director of Public Works
NOTED AND APPROVED:
~7 ~---r
David Carmany, City Manager
Attachments:
A. Resolution No. 5778
B. ENR Construction Cost Index
RESOLUTION NUMBER S77$
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 SECTION 1010 OF THE CITY CHARTER
WHEREAS, the City Charter requires the City Engineer to adjust the bidding
threshold by computing the percentage difference between the current
Engineering News Record (ENR) Construction Cost Index - 20 City Average and
the ENR for the previous June 1;
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;
WHEREAS, the Engineering New Record Construction Cost Index was 7952 for
July 2007 and the bidding threshold was set at $24,000; and
WHEREAS, the Engineering New Record Construction Cost Index is 8293 for
July 2008 representing a 4% increase.
THE CITY COUNCIL OF THE CITY OF SEAL BEACH HEREBY RESOLVES AS
FOLLOWS:
SECTION 1. The City Council hereby confirms the adjustment to the bidding
threshold amount to $25,000 as required by City Charter Section 1010.
PASSED, APPROVED AND ADOPTED by the City Council of Seal Beach, at a
meeting hereof held on the 25th day of August , 2008 by the following
vote:
AYES: COUNCILMEMBERS
NOES: COUNCILMEMBERS
ABSENT: COUNCILMEMBERS
ABSTAIN: COUNCILMEMBERS
ATTEST:
City Clerk
Mayor
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Linda Devine, City Clerk of the City of Seal Beach, California, do hereby certify
that the foregoing resolution is the original copy of Resolution Number 5778 on
file in the office of the City Clerk, passed, approved, and adopted by the City
Council of the City of Seal Beach, at a regular meeting held on the 2 th day
of Auoust , 2008.
City Clerk