TITLE
Recommendation to adopt Plans and Specifications No. R-6700 for the Annual Contract for Street Repairs and Minor Improvements; and authorize City Manager to execute a contract with Sully-Miller Contracting Company in an estimated amount of $8,500,000. (Citywide)
DISCUSSION
Each year, the City enters into a contract for the construction of minor improvements to streets, alleys and publicly owned properties such as parks, playgrounds, beaches and the airport. The work includes minor street, sidewalk and irrigation repairs and improvements.
This is a procurement tool with no funds actually committed to the base contract. Upon City Council approval, departments may issue purchase orders within their respective operating or project budgets. The award amount for the annual contract is based on anticipated expenditures. The contract is not for one specific project or department, but for various projects and departments throughout the year, with no specific contract expenditure amount guaranteed to the contractor. City departments expected to utilize this contract include Community Development, Long Beach Water, Long Beach Gas and Oil, Parks, Recreation and Marine and Public Works.
The specifications allows for an extension of the contract for up to two additional one year terms and an annual price increase not to exceed six percent (or $510,000), if both the City and the contractor agree to the extension or price increase.
City Council adoption of the plans and specifications and award of contract to the lowest responsible bidder are being recommended concurrently to expedite the project implementation. The project was advertised for bids on October 14, 2005, and bids were opened on November 9, 2005. Information regarding the bid and Sully-Miller Contracting Company is available on the attached contract awards document.
This matter was reviewed by Senior Deputy City Attorney Donna F. Gwin and Budget Management Officer David Wodynski on November 16, 2005. Environmental approvals, in accordance with the California Environmental Quality Act, will be obtained separately for each individual project.
TIMING CONSIDERATIONS
City Council action on this matter is requested on November 22, 2005, to allow emergency street repair projects to proceed without delay.
FISCAL IMPACT
Individual purchase orders issued under this contract will be funded by the department issuing the purchase order within current appropriations; no appropriation increases are required. The estimated base bid of $8,500,000 does not include the contingency of up to 15% ($1,275,000).
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
[Respectfully Submitted,]