HomeMy WebLinkAbout05 - Engineering News Record - Construction Cost IndexCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 5
August 10, 2010
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Public Works Department
Dave Webb, Deputy Public Works Director /City Engineer
949 - 644 -3328, dwebb@newportbeachca.gov
SUBJECT: APPROVE A RESOLUTION DEFINING THE "ENGINEERING
NEWS RECORD — CONSTRUCTION COST INDEX" AS THE
MEANS TO ANNUALLY ADJUST THE MINIMUM CONTRACT
AMOUNT REQUIRING FORMAL BIDDING AS DEFINED IN THE
CITY CHARTER AMENDMENT BEING PLACED ON THE
NOVEMBER 2, 2010 BALLOT
ISSUE:
The City needs to identify and adopt an index to annually increase the minimum construction
contract amount requiring formal advertisement and bidding as a result of inflation as defined
in the proposed City Charter Amendment, provided that it is approved by the City's electorate
on November 2, 2010.
RECOMMENDATION:
Adopt Resolution 2010 approving the "Construction Cost Index," as developed and
maintained by the "Engineering News Record," to annually increase the minimum
construction contract amount requiring formal advertisement and bidding as a result of
inflation, and authorize the Mayor and City Clerk, on behalf of the City Council of Newport
Beach to execute the Resolution.
DISCUSSION:
The City recently established a Citizens Committee and underwent a thorough review of its
existing Charter. As a result, the committee recommended a number of minor modifications to
the existing Charter language to bring it up to date and make it consistent with current practices
and the desires of the City's residents. One of the recommendations was to amend Section
1110, to increase the threshold dollar amount from $30,000 to $120,000 for requiring formal
bidding of Public Works projects and to allow for an annual increase of the threshold
according to an index selected by the City Council. At the July 27, 2010 meeting, City
Council agreed to revise the upper threshold limit to $120,000 at the request of Construction
Industry Force Account Council (CIFAC). The Charter Amendment language has now been
finalized and submitted to the County for inclusion and consideration on the November 2,
2010, ballot.
Approve a Resolution Adopting a Construction Cost Index
August 10, 2010
Page 2
An additional concern was also raised by the Construction Industry Force Account Council
regarding the index that will be used to annually adjust the threshold amount for inflation. In
an effort to address their concerns, staff is proposing to identify the referenced index and
adopt the attached supporting Resolution approving the "Construction Cost Index," as
developed and maintained by the "Engineering News Record," as the adjusting index in
advance to the Charter Amendment election.
ENVIRONMENTAL REVIEW:
Not Applicable.
PUBLIC NOTICE:
Not Applicable.
FUNDING AVAILABILITY:
Not Applicable.
Prepared by:
of- David Webb
Deputy Public Works Director /City Engineer
Attachment: Resolution 2010 -
Submitted by:
12 --S)e 9
Stephen G. Badum eel?
Public Works Director
RESOLUTION NO. 2010 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH DEFINING THE "ENGINEERING NEWS
RECORD — CONSTRUCTION COST INDEX," AS THE MEANS
TO ANNUALLY ADJUST THE MINIMUN CONTRACT AMOUNT
REQUIRING FORMAL BIDDING AS DEFINED IN THE CITY
CHARTER AMENDMENT BEING PLACED ON THE
NOVEMBER 2, 2010, BALLOT FOR CONSIDERATION BY THE
CITY'S ELECTORATE
Whereas, the City of Newport Beach has included an amendment to the current City
Charter §1110 on the November 2, 2010, ballot, for consideration by the City's electorate,
that would raise the minimum construction contract amount requiring formal advertisement
and bidding to $120,000; and
Whereas, the new proposed Charter language also includes a provision that allows new
minimum construction contract amount of $120,000 to be increased annually for inflation
by an index;
Now, therefore, be it resolved by the City Council of the City of Newport Beach that the City
hereby approves and confirms that said referenced index to be used to annually increase
the minimum construction contract amount requiring formal advertisement and bidding as
a result of inflation as defined in the City Charter, provided that it is approved by the City's
electorate on November 2, 2010, shall be the "Construction Cost Index" as developed and
maintained by the "Engineering News Record," a monthly magazine published by McGraw
Hill Construction, or its successor.
Adopted this 10`" day of August, 2010.
Mayor Keith Curry
ATTEST:
City Clerk
Leilani I. Brown