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Recommendation to authorize City Manager to execute a second amendment to Contract No. 30422 with Sully-Miller Contracting Company for the contract for minor street repairs and improvements increasing the contract amount by $8,650,000. (Citywide)
DISCUSSION
On December 4, 2007, City Council awarded a contract to Sully-Miller Contracting Company for the construction of minor improvements to streets, alleys, and publicly owned properties such as parks, playgrounds, beaches and the airport (Exhibit A). The contract was bid with an estimated value of work to be done over the 12-month contract period and includes contract language that allows the City to adjust the quantities of work based on need and budgetary considerations.
The contract provides for an "on-call" arrangement, whereby the contractor will provide the City with fixed unit prices to construct utility trench repairs for Gas & Water, minor street repairs, concrete repairs, storm drain repairs, taxiway and runway repairs, and irrigation repairs and improvements. The City will issue work orders to the contractor for specific locations with assigned work to be completed within a specified period. Upon the successful completion of a given work order, additional work orders will be assigned until available funding sources for this type of work have been depleted.
Work orders for items included in this contract will be issued as City departments identify repairs and improvements to be made. Following consultation with other departments that also utilize this contract, staff is proposing to increase the contract amount to cover anticipated needs for the following departments: Public Works, Airport, Water, Gas and Oil, and Community Development. Due to the extensive usage of Sully-Miller's services, an increase of $8,650,000 is requested for Contract No. 30422. Note that the City is anticipating an 8.66 percent increase in Sully-Miller's contract charges for 2009, primarily due to increases sustained in union labor contracts, equipment costs, asphalt materials, and dump fees.
This matter was reviewed by Deputy City Attorney Linda Trang on December 17, 2008 and by Budget Management Officer Victoria Bell on December 17, 2008.
TIMING CONSIDERATIONS
City Council action on this matter is requested on January 6, 2009 in order to allow Public Works projects provided under Sully-Miller's contract to continue throughout 2009.
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. Projects supported by State transportation funding such as Gasoline Tax or Proposition 42 Traffic Congestion Relief will commence when the funding has been received from the State.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
MICHAEL P. CONWAY
DIRECTOR OF PUBLIC WORKS
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APPROVED: |
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PATRICK H. WEST |
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CITY MANAGER |