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<br />REQUEST FOR CITY COUNCIL AGENDA ITEM <br /> <br />Agenda Date Requested: <br /> <br />Februarv 12. 2007 <br /> <br />~ <br /> <br />Appropriation <br /> <br />Requested By: S Gillett <br /> <br />Source of Funds: N/A <br /> <br />Department: <br /> <br />Publi<: WQrla <br /> <br />Account Number: N/A <br /> <br />Report: <br /> <br />Resolution: <br /> <br />Ordinance: <br /> <br />x <br /> <br />Amount Budgeted: N/ A <br /> <br />Exhibits: <br /> <br />Ordinance <br /> <br />Amount Requested: <br /> <br />NIl\. <br /> <br />Exhibits: <br /> <br />Table A <br /> <br />Budgeted Item: N/A <br /> <br />Exhibits <br /> <br />SUMMARY & RECOMMENDATION <br /> <br />Chapter 2 of the Code of Ordinances includes the administration of Public Works Contracts. Section 2- <br />106 establishes the prequalification of contractors for contracts over $300,000, and Section 2-108 <br />establishes the dollar threshold for performance and payment bonds. Both sections need revision to <br />increase the prequalification threshold and to bring the performance and payment bond requirements in <br />line with current state law, <br /> <br />Section 2-106 was codified in 1991. The original ordinance (Ord. 1476) was passed on October 28, 1985 <br />to establish the prequalification of contractors for projects over $300,000. Since that time, the cost of <br />construction projects has increased, mandating prequalification for more projects. The process of <br />prequalification is costly for the city as well as contractors. Many contractors forgo bidding due to the <br />need to prequalify. The attached Table A illustrates the effect of inflation on construction costs since <br />1985, using the U.S Army Corps of Engineers Index ($499,612) as well as the Consumer Price Index -All <br />Urban Consumers - South ($551,446). It is recommended that Section 2-016 be amended to require <br />prequalification for projects over $500,000. <br /> <br />Section 2-108 requires performance bonds for projects in excess of$100,000. This requirement is in <br />accordance with Chapter 2253.001 of the Texas Government Code, However, the City Attorney's office <br />has interpreted Chapter 252.044 of the Texas Local Government Code to require a performance bond for <br />projects in excess of $25,000. Section 2-108 A (1) should be amended to reflect this recommendation. <br /> <br />Action Required bv Council: Approve an ordinance amending Section 2-106 and 2-108 of the Code of <br />Ordinances. <br /> <br />Approved for City Council Al!enda <br /> <br />John Joerns, Interi <br /> <br /> <br />c9;( ~7 <br />(Date! <br />