HomeMy WebLinkAboutCC AG PKT 2006-07-27 #Q ;) (
AGENDA REPORT
DATE: July 24, 2005
TO: Honorable Mayor and City Council
THRU: John B. Bahorski, City Manager
FROM: Mark K. Vukojevic, P.E., Director of Public Works /City Engineer
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
confirming the adjustment to the bidding threshold on Public Works Contracts as authorized by
the City Charter, Section 1010 from $22,400 to $23,300.
BACKGROUND:
In March of 2002, the Official Charter of the City was amended as was routinely done during the
past 40 years. Fiscal Administration, Section 1010 was also amended to include a formal
procedure for 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 1" 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 current July 2006 Construction Cost Index is 7721 indicating that a 4% 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 June of 2005. As
proposed, all projects over $23,300 would require formal bidding procedures and contracts.
Projects under $23,300 would be permitted to use written informal bidding procedures and
contracts. (The current threshold is $22,400) 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.
Agenda Item aj
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 $22,400 to $23,300.
Prepared By:
7 „ 4
Mark K. Vukojevic, P.E.
Director of Public Works /City Engineer
NO
i ND APPRO , 1: it,
6 oh r:. Bahorski,C y Manager
achment: Resolution Bidding Threshold on Public Works Contracts
Agenda Item
RESOLUTION NUMBER
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 6605 for July 2002
and the bidding threshold was set at $20,000; and
WHEREAS, the Engineering New Record Construction Cost Index was 7398 for May 2005
representing a 12% increase.
WHEREAS, the Engineering New Record Construction Cost Index is 7721 for July 2006
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 $23,300 as required by City Charter Section 1010.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Seal Beach at a
meeting thereof held on the day of 2006 by the following
vote:
AYES: Council Members
NOES: Council Members
ABSENT: Council Members
Mayor
ATTEST:
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 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 meeting thereof held on the day of , 2006.
City Clerk