Loading...
HomeMy WebLinkAboutCC AG PKT 2009-08-10 #TADEN®A STAFF REPORT DATE: August 10, 2009 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. 5906 confirming the adjustment of the bidding threshold on Public Works Contracts as authorized by the City Charter, Section 1010 to $25,850. 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 or previous increase. At the August 25, 2008 City Council Meeting, Council approved a 4% bidding threshold increase from $24,300 to $25,000. This was adjusted based upon the July 2007 CCI of 7959 to July 2008 CCI of 8293. Now in July 2009, the CCI has increased 3.4% from 8293 to 8578. A 3.4% increase would increase the bidding threshold from $25,000 to $25,850. 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 2008. As proposed, all projects over $25,850 would require formal bidding procedures and contracts. Projects under $25,850 would be permitted to use written, Agenda Item T Page 2 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. This will allow the City Manager on behalf of the City to execute such contracts. FINANCIAL 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 No. 5906 confirming an adjustment to the bidding threshold from $25,000 to $25,850 on Public Works Contracts as authorized by the City Charter, Section 1010 and authorize the City Manager on behalf of the City to execute said contracts. SU M ED BY: Vince Mastrosimone Director of Public Works NOTED AND APPROVED: ~~ ~~ David Carmany, City Manager Attachments: A. Resolution No. 5906 B. ENR Construction Cost Index RESOLUTION NUMBER 5906 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 8293 for July 2008 and the bidding threshold was set at $25,000; and WHEREAS, the Engineering New Record Construction Cost Index is 8578 for June 2009 representing a 3.4% 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 $25,850 as required by City Charter Section 1010 and authorize the City Manager on behalf of the City to execute said contracts. PASSED, APPROVED AND ADOPTED by the City Council of Seal Beach, at a meeting hereof held on the 10th day of August , 2009 by the following vote: AYES: COUNCILMEMBERS NOES: COUNCILMEMBERS ABSENT: COUNCILMEMBERS ABSTAIN: COUNCILMEMBERS ATTEST: Mayor City Clerk 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 5906 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 10th day of August , 2009. City Clerk Economics ~ Current Costs ~ ENR: Engineering News Record ~ McGra... tlttp://enr.construction.com/economics/current costs/default.asp , = ~ -, .. .. '- `•vLeammoreat~7-PD^-n- -~I4=-..~ ., ~.- '. --.- e s.~m. ~ .- ,~;-- ... ... .-- -. - . - - ~ . --- °.- - ceorela~naarx - ~-. subscribe contact us advertise ~ careers ©events FAQ subscriber login > McGraw Hill CONSTRUCTION Subscribe to ENR Magazine far Orly •, [~': S82 a year (includes fut web access) ~' oV®~ Search our site: Brlgineerblg Nows-Record INFRASTRUCTURE BLDGS B¢ MGMi POLJCY EQUIPIV~NT PEOPLE VIDEO OPINION TECH EDUCATION ECONOMCS TOP IJSTS dIRRENT COSTS MATERIAL TRENDS HISTORICAL INDICES QUARTERLY COST REPORTS ECONOMIC STIIxUWS FAO Current Costs ENR's most recent Construction Cost IndeX Building Cost Index, Matedals Cost hdeX which an; updated monthly. Tables include monthly and annual percent changes. Construction Costs Ddven by both labor and material costs, inflation _ measured by the CCI jumped from 4.4% last month to 6.3%. - Click here to see the construction cost index history 20-CITY: JUNE 2008 7973 a 100 INDEX VAWE corlsntucnoN cosT 8578.28 coMMONLAaoR~ 18201.18 WAGE{AIR.'- 34.58 .- BUIIdIr1Q COStS r ~ Higher steel prices had a _ major impact on the BCI, • helping to push it up 2% far - the rtanth and 6.5% far the I year. _ _ _ _ l XCHANGE ~ %CHANGE ~ ~ MONTH ~ YEAR i~ +0.1 ~ +4.8 ;i +0.2 +6.2 -- - -I: +0.2 ----- +6.2 ; I 20-CITY: JUNE 2009 %CHANGE ~ XCHANGE 1873 = 700 INDEX VALUE MONTH YEAR BUIWINO COST 4770.53 -0.1 +2.6 sxILLED LABOR 8191.35 +0.3 ~ +4.8 WAGE S/HR., 45.46 +0.3 +4.8 Click here to see the buildinG cost index history Materials Costs 20-CITY: JUNE 2009 %CHANGE XCHANGE 1813=700 OtlDEX VALUE MONTH YEAR Virtualy all of this year's MATERIALS 2880.38 -D.6 ' -D.7 ~ 11.4% increase in the MCI - ~ - - comesfromthestrong20.3% CEMENTSRON 100,62 +0.2 ~ +0.5 increase in steel pdces. STEEL slcwr 44.02 -1.2 +0.5 WMeER aIM aF 411.40 +0.4 -3.8 Click here to see the matenal Drice index Labor Cost Indices - --- --- -- -Advertlsllq- _ -. ~ : • - .- Leam more. at • -_ , :'~ _ .._ ~~GPDens:~rn .. - ; - ~ .~ .. ~ ~-; ::iii is i I~:~i~-i- i~~liiii~iyiii~iiil - ~~ ~~~~~~r Gain Quick Access to ENR's H_is_torical Cost Index Tables_ Fnd ENR's Award-Winning Building Material Price Data (published later than March 1,2005). Monthly tables on 75 different bulding materials) Gidr here. Order ENR's Historical Prices For 75 Different Materials Our tables for cement and concrete and aggregate pdces are published in pdnt editions in the first issue of every month; pipe prices in the second; lumber and drywall pdces the third, and steel prices in the fourth. For information on how to order data sets prior to March, 2005, Gidr here. Construction Outlook 2009 Spring Update - -- - - - -- ou110,1ri. ears IF ~ A 14 page report Orl industry . _ -, '~' ~ trends and detailed forecasts ,~-,.'- - affecting the consWdion industry - r--, in 2009. .~- Purchase your copy today x Skilled Labor Index - . The Skilled Labor Index is the labor component of ENR's Building Cost hdex and tracks union wages, plus fringe benefits, for carpenters, bddktayers and iron workers. > Common Laborlndex The Common Labor hdex is the labor component of ENR's Construction Cast Index and tracks the union wage, plus fringe benefRS, for laborers. Cost Index History Tables by City The building and kxxlsWcfion cost indexes far ENR's individual does use fhe same components and weighting as those for the 20-city na0onal inde:~s. The dty indexes use local pdces for Portland cement and 2 X 4 lumber and the na8onal average price for stn,durel steel. The dty's BCI uses local union wages, plus fdnges, for carpenters, bricklayers and iron workers. The atys CCI uses fhe same union wages for laborers. ENR Cost Indexes in 20 Cities 1978-2009 > Atlanta. GA > Baltimore. MD > Birmingham. AL s Boston. MA > Chicago. IL > Cindnnati. OH > Cleveland. OH > Dallas. TX > Denver. CO > Detroit. MI > Kansas Citv. MO > Los Angeles. CA > Minneaodis. MN > New Odeans. lA > New York. NY > Philadelphia. PA - Atlvenisrtq - I of 2 6/24/2009 2:49 PM