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HomeMy WebLinkAbout05.B- 05.B- City Attorney 5.B ORDINANCE (ID # 3741) DOC ID: 3741 C CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION Municipal Code From: Gary D. Saenz M/CC Meeting Date: 04/06/2015 Prepared by: Linda Wynn, (909) 384- 5355 Dept: City Attorney Ward(s): All Subject: Ordinance of the Mayor and Common Council of the City of San Bernardino Amending Sections 3.04.070, 3.04.080, 3.04.085, and 3.04.115 of the San Bernardino Municipal Code Relating to Purchases. (FINAL READING) (#3741) Current Business Registration Certificate: Financial Impact: It is anticipated that reducing administrative costs and other related expenses pertaining to the generation, preparation, implementation and monitoring of contracts would provide significant savings to the City. Motion: Adopt the Ordinance. Synopsis of Previous Council Action: 3/4/15: This item was scheduled to be discussed at the Ways and Means Committee on this date; however, the meeting was cancelled and the Chairman gave permission for this item to be sent directly to the Mayor and Common Council for approval. 12/5/88: The Mayor and Common Council approved Ordinance No. MC-646, amending Sections 3.04.070 and 3.040.080 to increase the Purchasing Agent's authorization amount to $25,000. 6/2/87: The Mayor and Common Council approved Ordinance No. MC-602, amending L' 11 11�A I /l A!1 !1(l 1. 1L. Purchasing Agent's 1 1' Sections 3.04.07 0 and 3.O40.080 to increase he Puic casing Agents auu orizacion amount to $15,000. 7/6/82: The Mayor and Common Council approved Ordinance No. MC-183, amending Sections 3.04.070 and 3.04.080 to increase the Purchasing Agent's authorization amount to $10,000. 1/8/80: The Mayor and Common Council approved Ordinance No. 3893, amending Sections Seven and Eight to increase the Purchasing Agent's authorization amount to $7,000. 7/23/64: The Mayor and Common Council approved Ordinance No. 2588 providing for the purchase and sale of supplies, services and equipment. Sections Seven and Eight of this Ordinance authorized the Purchasing Agent to contract and/or purchase services, supplies and/or equipment in an amount up to $2,000. Undated- 3/17/2 15 by I inda SiJhPrland C Packet Pg. 18 5.B 3741 Background: As part of Management Partners' review of current City policies and procedures, and relying on its experience with other municipalities, a recommendation was made that the Purchasing Agent's current authorization amount of $25,000 be increased to $50,000. This amount would reduce and alleviate administrative costs and other related expenses, thus providing additional savings to the City. Implementation of the proposed changes will require amendments to Municipal Code Sections 3.04.070, 3.04.080 and 3.04.085. A proposed amendment to Section 3.04.115 has been included in the Ordinance only for the purpose of updating the language from "City Administrator" to "City Manager." Analysis: In an effort to generate cost efficiencies and to implement various efficiencies that will be identified in the Plan of Adjustment, the City Attorney's Office surveyed 13 local cities (including San Bernardino) to ascertain at what amount Council approval was required for purchases, contracts, etc. The results ranged from $10,000 upward to $175,000, with an average being $59,000. In reviewing historical inflation rates (1989-2014) since the increase was authorized to $25,000 in December of 1988, the annual rate has increased approximately 3%, reflecting that December 1988's purchasing power of $25,000 equates to $52,131 in 2015. The proposed increase correlates with the historical rates of inflation. City Attorney Review: Supporting Documents: Ordinance. MC Amendment re Financial threshold for MCC 3-16-15(DOC) Proposed Ordinance.Red-line. Amendment re Financial threshold for hAr('[PDF) MCC Financial Threshold History (PDF) Local Cities Contact Info (PDF) City of San Bernardino Inflation Cost Estimate (PDF) t Inrlatari• '1/17/9n1.r, by I inria .I Itharlanri r Packet Pg. 19 5:B.a 0 1 ORDINANCE OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN N BERNARDINO AMENDING SECTIONS 3.04.070, 3.04.080, 3.04.085, AND 3.04.115 OF 2 THE SAN BERNARDINO MUNICIPAL CODE RELATING TO PURCHASES. 0 3 _ �a 4 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN U- a� 5 BERNARDINO DO ORDAIN AS FOLLOWS: N m U 6 = SECTION 1. Section 3.04.070 of the San Bernardino Municipal Code is hereby 2 7 _ amended to read as follows: E 8 = a� E 9 "3.04.070 Formal Contract Procedure. a) U 10 Except as otherwise provided in this Chapter, purchases and contracts for supplies, c 11 materials and equipment of a value greater than fifty thousand dollars shall be by a written 0 12 contract with the lowest possible and best bidder, pursuant to the procedures described in this V- ti M 13 section. y 14 T 15 A. Notice Inviting Bids. Notice inviting bids shall include a general description of the v articles to be purchased, shall state where bid blanks and specifications may be E 16 L secured, and the time and place for opening bids. w 17 0 18 B. Notice, Publication and Mailing. Notice inviting bids shall be published at least ten w 19 days before the opening of bids in a newspaper of general circulation printed and 2 _ 20 published in the City. 21 L _ 22 The Purchasing Agent may establish and maintain a list of prospective bidders. The E 23 prospective bidders shall be listed on said list according to the service or product E 24 provided as indicated by the prospective bidder. It shall not be the responsibility of v 2 25 the Purchasing Agent to ensure that the list contains current information in respect c 26 to the address, service or product of the prospective bidder. The Purchasing Agent is 27 authorized to ail invitations to bid directly to appropriate prospective bidders p` 28 appearing on said list and to other prospective bidders. E s w w a i Packet Pg.20 5.B.a 0 1 C. Bidder's Security. Each bid or proposal may be required by the Purchasing Agent to y a� 2 be accompanied by a bidder's bond, certified or cashier's check, or cash in an amount not more than ten percent of the total bid. The City Manager shall establish 3 = 4 standards for determining under what circumstances a bidder's security shall be c required in order to protect the interests of the City. When deemed necessary by the U 5 m City Manager, bidder's security may be prescribed in the public notices inviting 6 S bids. When bid security is required,bidders shall be entitled to return of bid security, ° 7 = provided that a successful bidder shall forfeit his bid security upon refusal or failure 0 8 to execute the contract within ten days after the notice of award has been mailed, a E 9 unless and to the extent the City is responsible for the delay. The Common Council � 0 r- 10 may, on refusal or failure of the successful bidder to execute the contract, award it to 11 the next lowest and best bidder. If the Common Council awards the contract to the 12 next lowest and best bidder, the amount of the lowest bidder's required security rl- 13 shall be applied by the City to the difference between the low bid and the second C LO 14 lowest bid and the surplus, if any, shall be returned to the lowest bidder. M 15 U D. Bid Opening Procedure. Sealed bids shall be submitted to the Purchasing Agent and 16 a shall be identified as bids on the envelope. Bids shall be opened in public at the time 17 0 and place stated in the public notices. A record of the bids received shall be N 18 available for public inspection after bids have been opened, indicating the amounts 19 bid by the various bidders and the basis for awarding the contract or purchase order 20 if other than the lowest bidder. Such list shall be available for thirty days after the 21 award has been made. a� 22 E 23 E. Rejection of Bids. At its discretion, the Mayor and Common Council shall have the _ Q 24 power to reject any and all bids presented and readvertise for bids. v 25 v _ 26 F. Award of Contracts. Contracts shall be awarded by the Mayor and Common = Council, by resolution, to the lowest and best bidder except as otherwise provided p` 27 +; herein. d 28 E a 2 Packet Pg.21 0 1 � L 2 G. Tie Bids. If two or more bids received are for the same total amount or unit price, 3 quality and service being equal and if the public interest will not permit the delay of .5 readvertising for bids, the Mayor and Common Council may accept the one it ., chooses or accept the lowest bid made by negotiation with the tie bidders at the time 5 m of the bid opening. 6 — 0 r 7 H. Performance Bonds. The Mayor and Common Council shall have authority to 8 M require a performance bond before executing a contract in such amount as it shall a 9 E find reasonably necessary to protect the best interests of the City. If the Mayor and Q as i 10 Common Council require a performance bond, the form and amount of the bond 11 shall be described in the notice inviting bids. 0 12 ti 13 I. Negotiated Purchases. At the discretion of the City Manager, the Purchasing Agent 14 may authorize the purchase of technical or specialized supplies and equipment by 15 competitive negotiation when such a method of purchase would be more v U advantageous to the City, and any one of the following conditions exists: 16 0 0 17 0 1. The supplies or equipment are such that suitable technical or performance N 18 specifications are not readily available; Y 19 U ai 20 2. The City is not able to develop descriptive specifications; or, U. 21 _ 22 3. The quality of the supplies and equipment cannot be accurately determined 4 a 23 by reference to their specifications alone. Q 24 U 25 At the completion of such a negotiated purchase a written report thereon 26 shall be made to the City Manager." _ �a L 27 Y c d 28 E t v ca Q 3 Packet Pg.22 wo 5.B.a 0 1 SECTION 2. Section 3.04.080 of the San Bernardino Municipal Code is hereby N ® L 2 amended to read as follows: � 3 v 0 4 "3.04.080 Open market procedure. u Purchase of supplies, materials, and equipment of a value in the amount of fifty n 5 d thousand dollars or less may be made by the Purchasing Agent in the open market, in 0 6 — accordance with the following procedure: ° 7 a� E 8 'a A. Minimum Number of Bids. Open market purchases shall, wherever possible, be a E 9 based on at least three bids, and shall be awarded to the lowest and best bidder. 10 c 11 B. Notice Inviting Bids. The Purchasing Agent shall solicit bids by written requests or O 12 by telephone to prospective vendors. V_ r, 13 U, 14 C. Written Bids. Sealed written bids shall be submitted to the Purchasing Agent who 15 shall keep a record of all open market orders and bids for the required period of time v 16 after the submission of bids or the placing of orders. This record while so kept shall 0 be open to public inspection. 17 0 � s 18 D. Open Market Purchases For Which No Bids Are Required. For open market 19 purchases not exceeding twenty-five hundred dollars, the Purchasing Agent shall 20 have the authority to select a specific vendor and place an order without obtaining 21 additional competitive bids." 22 E c 23 SECTION 3. Section 3.04.085 of the San Bernardino Municipal Code is hereby 24 amended to read as follows: U L 25 0 U C 26 "3.04.085 Services. �a 27 A. The Purchasing Agent may contract for services of a value of fifty thousand dollars O` �.: 28 or less in accordance with the following procedure: w w a 4 Packet Pg.23 5.B.a 0 1 � N L 2 1. Minimum Number of Proposals. Contracts for services shall, whenever � 3 possible, be based on at least three proposals, and shall be awarded to the 4 provider who can best meet the needs of the City. Although cost shall be considered by the Purchasing Agent in entering into such contracts, it shall 5 not be the sole determining factor. 6 0 7 = 2. Request for Proposals (RFP). The Purchasing Agent shall solicit proposals 8 by written requests or by telephone to prospective providers. 9 Q a� 10 3. Written Proposals. Sealed written proposals shall be submitted to the 11 Purchasing Agent, who shall keep a record of all such proposals for not less 0 12 than 180 days. This record while kept shall be open to public inspection. V_ 13 LO 14 4. Contractual Services For Which No Proposals Are Required. For contractual 15 services not exceeding twenty-five hundred dollars in value, the Purchasing U U Agent shall have the authority to select a specific provider and enter into a M 16 0 contract without obtaining additional proposals. 17 0 s 18 B. Contractual services with a value in excess of fifty thousand dollars must be i 19 i approved by the Mayor and Common Council pursuant to Requests for Proposals as 20 authorized by the Mayor and Common Council. 21 L _ 22 C. The provisions of Subsection A above shall not apply to contracts for special E 23 counsel services which are provided for pursuant to Chapter 2.20 of this Code." Q 24 U 25 SECTION 4. Section 3.04.115 of the San Bernardino Municipal Code is hereby a; _ 26 amended to read as follows: _ E L 0 27 "Section 3.04.115 City Manager. 28 s ca Q 5 Packet Pg.24 SBA, -a 1 Any duty or responsibility given to the Purchasing Agent by this Chapter may likewise OW i 2 be performed or fulfilled by the City Manager or his or her designee." 3 4 u. m N 5 d 6 0 7 a> E 8 c d 9 Q a� U 10 c 11 O 12 ti M 13 LO V- 14 c6 T- C; 15 U 16 C w 17 0 t N 18 19 �U i 20 C LL 21 i- 22 E E c 23 E a 24 U 25 U C 26 S L 27 O y 28 E t U ca a 6 Packet Pg. 25 5.B:a 0 1 ORDINANCE OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN N t"= BERNARDINO AMENDING SECTIONS 3.04.070, 3.04.080, 3.04.085, AND 3.04.115 OF 2 THE SAN BERNARDINO MUNICIPAL CODE RELATING TO PURCHASES. 0 3 I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor and CM 4 Common Council of the City of San Bernardino at a meeting thereof, held d N 5 on the day of , 2015,by the following vote, to wit: 6 � 0 7 COUNCIL MEMBERS: AYES NAYS ABSTAIN ABSENT a� E 8 MARQUEZ v E 9 BARRIOS 10 VALDIVIA S �a 11 L 0 12 SHORETT T 13 NICKEL 14 JOHNSON M 15 V MULVIHILL v 16 p 17 0 t 18 Georgeann Hanna, City Clerk i 19 The foregoing Ordinance is hereby approved this day of , 2015. i 20 c ii 21 R. Carey Davis, Mayor 22 City of San Bernardino Ea Approved as to form: 23 E Q 24 Gary D. Saenz, City Attorney c> 25 c ca 26 By: 0 27 ;. c 28 t Q 7 Packet Pg.26 1 ORDINANCE OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AMENDING SECTIONS 3.04.070, 3.04.080, 3.04.085, AND 2 3.04.115 OF THE SAN BERNARDINO MUNICIPAL CODE RELATING TO 3 PURCHASES. n L 4 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN ° 5 6 BERNARDINO DO ORDAIN AS FOLLOWS: _ d 7 SECTION 1. Section 3.04.070 of the San Bernardino Municipal Code is hereby Q aD 8 amended to read as follows: c _ 9 10 "3.04.070 Formal Contract Procedure. v i Except as otherwise provided in this Chapter, purchases and contracts for supplies, M 11 materials and equipment of a value greater than twenty-f five fifty thousand dollars shall be by a v 12 V written contract with the lowest possible and best bidder, pursuant to the procedures described c 13 '~ in this section. 2 0 14 _ N d L s 15 A. Notice Inviting Bids. Notice inviting bids shall include a general description of the 16 articles to be purchased, shall state where bid blanks and specifications may be _ 17 secured, and the time and place for opening bids. U. L 18 = 19 B. Notice, Publication and Mailing. Notice inviting bids shall be published at least ten 20 days before the opening of bids in a newspaper of general circulation printed and Q published in the City. c 21 - a� 22 Q! The Purchasing Agent may establish and maintain a list of prospective bidders. The 23 = prospective bidders shall be listed on said list according to the service or product c 24 provided as indicated by the prospective bidder. It shall not be the responsibility of o 25 the Purchasing Agent to ensure that the list contains current information in respect o M 26 to the address, service or product of the prospective bidder. The Purchasing Agent is a 27 authorized to ail invitations to bid directly to appropriate prospective bidders a� 28 appearing on said list and to other prospective bidders. s U t4 w Q 1 Packet Pg.27 5.B.li 1 C. Bidder's Security. Each bid or proposal may be required by the Purchasing Agent to 2 be accompanied by a bidder's bond, certified or cashier's check, or cash in an LL 3 amount not more than ten percent of the total bid. The City Admi-nist-r-at Manager shall establish standards for determining under what circumstances a bidder's 4 E security shall be required in order to protect the interests of the City. When deemed ° 5 C necessary by the City ^d,, inistr-at(,,. Manager, bidder's security may be prescribed E 6 "a in the public notices inviting bids. When bid security is required, bidders shall be r- 7 E entitled to return of bid security, provided that a successful bidder shall forfeit his a s bid security upon refusal or failure to execute the contract within ten days after the c 9 notice of award has been mailed, unless and to the extent the City is responsible for o 10 the delay. The Common Council may, on refusal or failure of the successful bidder 11 to execute the contract, award it to the next lowest and best bidder. If the Common M. 12 Council awards the contract to the next lowest and best bidder, the amount of the 13 lowest bidder's required security shall be applied by the City to the difference 0 V between the low bid and the second lowest bid and the surplus, if any, shall be 0 14 N returned to the lowest bidder. 15 +' 16 D. Bid Opening Procedure. Sealed bids shall be submitted to the Purchasing Agent and 17 shall be identified as bids on the envelope. Bids shall be opened in public at the time L 18 and place stated in the public notices. A record of the bids received shall be 5- 19 available for public inspection after bids have been opened, indicating the amounts 20 bid by the various bidders and the basis for awarding the contract or purchase order Q a; 21 if other than the lowest bidder. Such list shall be available for thirty days after the E 22 award has been made. ai U 23 = O E. Rejection of Bids. At its discretion, the Mayor and Common Council shall have the 24 power to reject any and all bids presented and readvertise for bids. -a 25 d N O Q O 26 F. Award of Contracts. Contracts shall be awarded by the Mayor and Common a` 27 Council, by resolution, to the lowest and best bidder except as otherwise provided E 28 herein. a 2 Packet Pg.28 53.6- 1 'v 2 G. Tie Bids. If two or more bids received are for the same total amount or unit price, U- 3 quality and service being equal and if the public interest will not permit the delay of 0) readvertising for bids, the Mayor and Common Council may accept the one it c 4 — chooses or accept the lowest bid made by negotiation with the tie bidders at the time ° 5 C of the bid opening. E 6 c a> 7 E H. Performance Bonds. The Mayor and Common Council shall have authority to ¢ a� U 8 require a performance bond before executing a contract in such amount as it shall 9 find reasonably necessary to protect the best interests of the City. If the Mayor and 0 10 Common Council require a performance bond, the form and amount of the bond ti 11 shall be described in the notice inviting bids. U U 12 g 13 1. Negotiated Purchases. At the discretion of the City "dnii, stfat^' Manager, the ,o Purchasing Agent may authorize the purchase of technical or specialized supplies 14 N and equipment by competitive negotiation when such a method of purchase would 15 }' be more advantageous to the City, and any one of the following conditions exists: 16 c 17 U- 1. The supplies or equipment are such that suitable technical or performance L 18 specifications are not readily available; 19 c 20 2. The City is not able to develop descriptive specifications; or, Q a� 21 22 3. The quality of the supplies and equipment cannot be accurately determined ai 23 by reference to their specifications alone. c c �a 24 At the completion of such a negotiated purchase a written report thereon 25 shall be made to the City star-Manager.,, 0 26 0 a. 27 SECTION 2. Section 3.04.080 of the San Bernardino Municipal Code is hereby E 28 amended to read as follows: R 3 Packet Pg.29 5.B.b �a 1 _ 2 "3.04.080 Open market procedure. ii 3 Purchase of supplies, materials, and equipment of a value in the amount of twee a fifty thousand dollars or less may be made by the Purchasing Agent in the open market, in 4 _ accordance with the following procedure: ° 5 m E 6 a A. Minimum Number of Bids. Open market purchases shall, wherever possible, be 10 7 E based on at least three bids, and shall be awarded to the lowest and best bidder. Q a� 8 c R C 9 B. Notice Inviting Bids. The Purchasing Agent shall solicit bids by written requests or 10 by telephone to prospective vendors. 11 12 C. Written Bids. Sealed written bids shall be submitted to the Purchasing Agent who L) 13 shall keep a record of all open market orders and bids for the required period of time ,o a after the submission of bids or the placing of orders. This record while so kept shall -6 14 be open to public inspection. 15 16 c D. Open Market Purchases For Which No Bids Are Required. For open market 1 purchases not exceeding twenty-five hundred dollars, the Purchasing Agent shall 18 have the authority to select a specific vendor and place an order without obtaining 19 additional competitive bids." 20 E a 21 SECTION 3. Section 3.04.085 of the San Bernardino Municipal Code is hereby S 22 amended to read as follows: m 23 = co "3.04.085 Services. 0 24 L A. The Purchasing Agent may contract for services of a value of twenty 0 25 N thousand dollars or less in accordance with the following procedure: Q 26 0 a 27 1. Minimum Number of Proposals. Contracts for services shall, whenever 5 E 28 possible, be based on at least three proposals, and shall be awarded to the a 4 Packet Pg. 30 II 1 provider who can best meet the needs of the City. Although cost shall be 2 considered by the Purchasing Agent in entering into such contracts, it shall = U_ 3 not be the sole determining factor. cn L V 4 2. Request for Proposals (RFP). The Purchasing Agent shall solicit proposals ° 5 by written requests or by telephone to prospective providers. E 6 _ m 7 E 3. Written Proposals. Sealed written proposals shall be submitted to the Q a� a Purchasing Agent, who shall keep a record of all such proposals for not less _ 9 than 180 days. This record while kept shall be open to public inspection. o to 11 4. Contractual Services For Which No Proposals Are Required. For contractual U 12 services not exceeding twenty-five hundred dollars in value, the Purchasing U 13 Agent shall have the authority to select a specific provider and enter into a contract without obtaining additional proposals. 0 14 N 15 s w B. Contractual services with a value in excess of tik,eaty five fifty thousand dollars 16 _ must be approved by the Mayor and Common Council pursuant to Requests for = 17 Proposals as authorized by the Mayor and Common Council. 18 c d E 19 C. The provisions of Subsection A above shall not apply to contracts for special 20 counsel services which are provided for pursuant to Chapter 2.20 of this Code." Q a� 21 = 22 SECTION 4. Section 3.04.115 of the San Bernardino Municipal Code is hereby 23 amended to read as follows: _ 24 O "Section 3.04.115 City ^dmi istfato-Manager. .� 25 m Any duty or responsibility given to the Purchasing Agent by this Chapter may likewise Q 26 L be performed or fulfilled by the City A m a ist,., , Manager or his or her designee." ,a,, 27 d 28 E t v Q 5 Packet Pg. 31 5.B.b �a c _ 2 LL CD LO 3 m L U 4 O 5 c E 6 $ c d 7 Q d U 8 Cu C 9 $ O 10 T' ti 11 U 12 Use O 13 -0 O 14 N s 15 U 16 C m C 17 L" N L 18 C a> E 19 c m 20 Q ai 21 a� 22 ai U 23 24 .a 25 N O a- 26 0 IL 27 C m E 28 s U R w Q 6 Packet Pg. 32 1 ORDINANCE OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AMENDING SECTIONS 3.04.070, 3.04.080, 3.04.085, AND 3.04.115 OF = 2 THE SAN BERNARDINO MUNICIPAL CODE RELATING TO PURCHASES. u. d 3 I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor and a 4 Common Council of the City of San Bernardino at a meeting thereof, held c 5 on the day of , 2015, by the following vote, to wit: E 6 -a _ 7 COUNCIL MEMBERS: AYES NAYS ABSTAIN ABSENT E Q a� 8 MARQUEZ _ c 9 BARRIOS O 10 VALDIVIA 11 M SHORETT v 12 V L 13 NICKEL w 0 14 JOHNSON a� L 15 MULVIHILL 0 16 c _ 17 L- Georgeann Hanna, City Clerk 18 = m 19 The foregoing Ordinance is hereby approved this day of , 2015. a� 20 E Q ai 21 R. Carey Davis, Mayor 22 City of San Bernardino Approved as to form: 23 = tC 24 Gary D. Saenz, City Attorney O 25 O N O 0- 2 6 By: 0- CL 27 m 28 E v ca .r a 7 Packet Pg. 33 5.B.c °O °O °O o CD O O O O O ; N f` O L � Q. u} (f} T- N a O U = O � C C. O H O Z _0 o 0 -0 N a� Q O O O O O L N O O O O O O - ~ O O O O O }' - V N ti O LO L 6q Eft T- T- N Co O 6q 601 O = LL 0 _0 N V Q O U U ° _ a) m m a) a) a) a)c .W C c C C= C c C= _0 E Q Q Q Q Q Q Q c �a O O O O O O O LO f` 00 f` 00 i` 00 �- 0 Co O O O O O O ti a) 4) 0 z ti O O O O O O O C 7 C7 M C7 M C15 M p w O N 1` 00 Cy') .� CV G) 0') CA m C j LO N 0\0 CEO N f` C.0O N v c c Z U C7 N O 00 V o0 Co 00 O d' U 00 CA CD CO 00 = N Co L a.. 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City of San Bernardino Q U RE: Estimation of 1988 dollars in 2015 dollars U L 1988 dollars can be estimated in 2015 through several alternatives. $25,000 is used as the base figure. 0 N Shown below are three alternatives: 1. Straight-line appreciation -This method assumes a constant inflationary rate of 3 percent over the term,with an estimated 2015 value of$55,532 2. Engineering New Record Index - This method is based on associating increase in construction costs, and is often appropriate to use in the case that primary expenditure of dollars will be for m new construction or maintenance of existing assets.The estimated 2015 value is $56,473. 3. U.S. Annual Inflation Rate - This method is based on the annual average for each year of the 0 period considered.The estimated 2015 value is$52,131. o Year ENR-Records Index U.S.Annual Inflation Rate _ a� E Appreciation -a _ 1988 3% $25,000 4,519 $25,000 4.08% $25,000 E 1989 3% 25,750 4,615 25,531 4.83% 26,020 Q 1990 3% 26,523 4,732 26,178 5.39% 27,277 1991 3% 27,318 4,835 26,748 4.25% 28,747 0 = 1992 3% 28,138 4,985 27,578 3.03% 29,969 1993 3% 28,982 5,210 28,823 2.96% 30,877 O 1994 3% 29,851 5,408 29,918 2.61% 31,791 r. 1995 3% 30,747 5,471 30,267 2.81% 32,620 M 1996 3% 31,669 5,620 31,091 2.93% 33,537 a� 1997 3% 32,619 5,826 32,231 2.34% 34,520 1998 3% 33,598 5,920 32,751 1.55% 35,328 E r 1999 3% 34,606 6,059 33,520 2.19% 35,875 �j 2000 3% 35,644 6,221 34,416 3.38% 36,661 2001 3% 36,713 6,343 35,091 2.83% 37,900 0 U 2002 3% 37,815 6,538 36,170 1.59% 38,972 2003 3% 38,949 6,694 37,033 2.27% 39,592 2004 3% 40,118 7,115 39,362 2.68% 40,491 2005 3% 41,321 7,446 41,193 3.39% 41,576 0 2006 3% 42,561 7,751 42,880 3.24% 42,985 L 2007 3% 43,838 7,966 44,069 2.85% 44,378 = 2008 3% 45,153 8,310 45,973 3.85% 45,643 m 2009 3% 46,507 8,570 47,411 -0.34% 47,400 = 2010 3% 47,903 8,802 48,694 1.64% 47,239 to 2011 3% 49,340 9,070 50,177 3.16% 48,014 0 0 2012 3% 50,820 9,342 51,682 2.07% 49,531 r 2013 3% 52,344 9,622 53,233 1.47% 50,556 U 2014 3% 53,915 9,911 54,830 1.62% 51,299 2015 3% $55,532 10,208 $56,473 2.00% $52,131 E Sources: UP Estimation ENR Records Bureau of Labor Statistics v c6 Q Urban Futures, Inc. -2015 Packet Pg. 37