TITLE
Recommendation to authorize City Manager, or designee, to execute a Sixth Amendment to Contract No. 32487 with CJ Concrete Construction, Inc., of Santa Fe Springs, CA, for the Annual Contract for Concrete Repairs and Related Improvements, increasing the contract amount by an additional $5,000,000, for a total contract amount not to exceed $28,000,000, and extending the contract term to December 31, 2018. (Citywide)
DISCUSSION
On January 10, 2012, the City Council authorized the City Manager to execute an annual contract for concrete repairs and related improvements with CJ Concrete Construction, Inc. (CJ Concrete), for an annual amount of $4,000,000. Subsequently, the City Council authorized five contract amendments, bringing the total contract authority to a not exceed amount of $23,000,000, and extending the term to December 30, 2017. The on-call contract provides the City with fixed unit prices, for a 12-month period, and the quantity of work is issued in work orders, specified by the City, and then completed by CJ Concrete, as a typical Public Works construction project. This method of contract delivery provides staff with an extremely efficient contract model for street improvement projects. The contract does not include any guaranteed minimum payment or retainer fee to the contractor.
Work performed under this contract includes the repair and replacement of sidewalks, driveways, curb and gutters, curb ramps, concrete cross gutters, bus stops, alleys, and other concrete-related improvements. CJ Concrete has done excellent work for the City, particularly in completing the construction of sidewalk, curb, and other concrete-related improvements for the Fiscal Year 2017 (FY 17) Measure A street improvements, in a timely manner. CJ Concrete has provided the City with a written offer to extend the contract term for another year with an increase of 6 percent applied to the current contract unit prices. Considering that the current contract unit prices, with a 6 percent increase, are typically lower than those now being received on other competitively bid street projects, staff is recommending that the City accept this offer and extend the contract term through December 31, 2018. Staff will be issuing a new Request for Proposals (RFP) for annual concrete repairs and related improvements this year, but on-call concrete services are needed in the interim to assist with emergency Americans with Disabilities Act (ADA) repairs.
This matter was reviewed by Deputy City Attorney Linda T. Vu on October 19, 2017 and by Budget Analysis Officer Julissa Jose-Murray on October 18, 2017.
SUSTAINABILITY
All concrete removed under this contract will be recycled as base rock for street construction projects. All new concrete installed under this contract will utilize waste ash, thereby diverting this material from local landfills.
TIMING CONSIDERATIONS
City Council action is requested on November 7, 2017, to provide for the timely construction of Measure A street and concrete-related improvements budgeted in FY 18.
FISCAL IMPACT
The contract authority increase of $5,000,000, for a revised total contract amount not to exceed $28,000,000 through the term ending December 31, 2018, is estimated based on current and anticipated projects within various City departments, including the Public Works Department (PW). No appropriation increase is requested at this time. Any work not currently budgeted will only proceed at such a time that appropriations have been approved by the City Council. Approval of this recommendation will provide continued support to the local economy.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
CRAIG A. BECK
DIRECTOR OF PUBLIC WORKS
APPROVED:
PATRICK H. WEST
CITY MANAGER