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HomeMy WebLinkAboutCC AG PKT 2005-06-13 #JJ • 463 +8 Q AGENDA REPORT 6 ,0 DATE: June 13, 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 $20,000 to $22,400. 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 current May 2005 Construction Cost Index is 7398 indicating a 12% increase. 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 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. Although the City Engineer may recommend an adjustment on an annual basis, this is the first time since 2002 that it has been recommended. As proposed, all projects over $22,400 would require formal bidding procedures and contracts. Projects under $22,400 would be permitted to use written informal bidding procedures and contracts. (The current threshold is $20,000) 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 It 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 $20,000 to $22,400. Prepared d By: Mar Vukojev ic, P.E. Director of Public Works /City Engineer N 0 d: B. Bahorski,City Manager • r achment: Resolution _ Bidding Threshold on Public Works Contracts Agenda Item • PUBLIC HEARING THIS IS THE TIME AND PLACE FOR A PUBLIC HEARING FOR CONSIDERATION OF ADOPTION OF RESOLUTION ADJUSTING PUBLIC WORKS CONTRACTS IN ACCORDANCE WITH SEAL BEACH CITY CHARTER SECTION 1010. MRS. DEVINE, HAVE NOTICES BEEN POSTED AND /OR ADVERTISED AND MAILED AS REQUIRED BY LAW, AND HAVE YOU RECEIVED ANY COMMUNICATIONS EITHER FOR OR AGAINST THE MATTER? CITY MANAGER, IS THERE A STAFF REPORT? WRITTEN AND ORAL COMMUNICATIONS RELATING TO THE PUBLIC HEARING WILL BE RECEIVED BY THE CITY COUNCIL. ARE THERE MEMBERS OF THE AUDIENCE WHO WISH TO SPEAK IN FAVOR OF THE PROPOSED MATTER? IF SO, PLEASE COME TO THE MICROPHONE. ARE THERE MEMBERS OF THE AUDIENCE WHO WISH TO SPEAK IN OPPOSITION TO THE PROPOSED MATTER? IF SO, PLEASE COME TO THE MICROPHONE. I HEREBY DECLARE THE PUBLIC HEARING CLOSED. Agenda Item JJ • • 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 is 7398 for May 2005 representing a 12% 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 $22,400 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 2005 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 , 2005. City Clerk