Following a public hearing on Monday, June 22, the City Council voted unanimously to increase the Public Works director’s bidding threshold for approving contracts.
The increase occurs annually in Seal Beach.
The threshold would allow the Public Works director to approve contracts up to $42,982. After that, contracts would require council approval.
The council also adjusted the city manager’s authority to bind Seal Beach to contracts, written or otherwise, up to $42,982, according to the staff report.
Background
“In March 2002, Section 1010 of the City Charter was amended to include a formal procedure to calculate the bidding threshold for Public Works contracts,” according to the staff report prepared by Kathryne Cho, deputy director of Public Works/City Engineer.
“The bidding threshold is to be adjusted annually based upon ‘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 1st’. The purpose of the adjustment is to allow the City to maintain its bidding threshold current with inflation,” Cho wrote.
“The City Charter specifies that the City Engineer shall calculate the required adjustment and the City Council shall confirm the calculation following a public hearing on the matter,” Cho wrote.
“In June 2013, the City Council adopted Resolution 6384 authorizing the City Manager to bind the City for the acquisition of equipment, materials, supplies, labor, services or other items included in the budget up to the amount for each acquisition equal to the bidding threshold amount for public works projects applicable under Section 1010 of the City Charter,” Cho wrote.
“On July 2, 2025, the City Council adopted Resolution 7538, which increased the Public Works bidding threshold to $41,818 to account for a CCI increase of 2.4 percent,” Cho wrote.
“Based on the June 2026 ENR publication, the CCI has increased 2.8 percent from 13871.21 to 14257.36,” Cho wrote.
“This increase includes one year of adjustments to the bidding threshold. The 2.8% percent increase would increase the bidding threshold from $41,818 to $42,982,” Cho wrote.
“Adjusting the bidding threshold does not waive requirements of competitive bidding on public projects. All projects over the proposed threshold of $42,982 would require formal bidding procedures and contracts per the City Charter unless exempt and approval at a City Council meeting. Contracts for projects under the proposed threshold of $42,982 may be awarded pursuant to informal bidding procedures,” Cho wrote.
“The proposed adjustment to the Public Works bidding threshold would result in an increase in the City Manager’s threshold to bind the City, with or without a written contract, for the acquisition of equipment, materials, supplies, labor, services, or other items within the budget approved by City Council to $42,982 pursuant to Resolution 6384,” Cho wrote.