TITLE
Recommendation to adopt Plans and Specifications No. R-6734 and award an as-needed contract to All American Asphalt for the annual contract for local street improvements in an amount not to exceed $4,551,115; and authorize City Manager to execute any amendments thereto with All American Asphalt. Further authorize City Manager to execute an amendment increasing the contract award amount by the amount of Proposition 1B funding when received. (Citywide)
DISCUSSION
This annual contract provides for improvements to local streets. The work includes street pavement, curbs and gutters, sidewalks, curb ramps, and irrigation repairs and improvements.
This is a procurement tool with no funds actually committed to the base contract. While Public Works will be responsible for the administrative control and monitoring of the contract, the contract is not for one specific project, but for various projects throughout the year, with no specific contract amount guaranteed to the contractor. The award amount for the annual contract is based on the following anticipated revenue and expenses:
RDA Funds $2,000,000
Local Street Improvements
Gas Tax Street Improvements $142,000
General Capital Projects $2,000,000
Prop 42 $409, 115
Total $4,551,115
The specifications allow for an extension of the contract for up to two additional one-year terms and an annual unit price increase not to exceed six percent, if both the City and the contractor agree to the extension or price increase. Additionally, Proposition 1 B, (Transportation Bond) approved by the voters in 2006, will allocate proceeds in the amount of $15,425,294 to the City of Long Beach over the next several years. Under recent legislation, cities are entitled to apply for release of a portion of these funds in 2007 and the remainder in 2009. The amount available for release to the City in the first allocation is $7,947,949. To comply with State requirements for application of the first release, an appropriation increase to the Transportation Fund (SR 182) in the Department of Public Works (PW) together with a request to amend the FY 08 Adopted Capital Improvement Program is being submitted to City Council under separate cover.
Because the funds will be placed in the City's Transportation Fund to address the Local Street Program, it is recommended that the City Manager be allowed to execute an amendment increasing the requested contract award to All American Asphalt by the amount of Proposition 1 B funding only when the funds are ultimately received.
City Council adoption of the plans and specifications and award of the contract to the lowest responsible bidder are being recommended concurrently to expedite the project implementation. The project was advertised for bids on November 9, 2007, and bids were opened on December 5, 2007. Information regarding All American Asphalt is provided on the attached Contract Awards sheet.
This matter was reviewed by Deputy City Attorney Lori A. Conway on December 10, 2007, and by Budget Management Officer Victoria Bell on December 11, 2007.
TIMING CONSIDERATIONS
City Council action on this matter is requested on December 18, 2007, to authorize commencement of this Public Works project.
FISCAL IMPACT
Due to the extensive use of this contract by various City Departments, the contract award is for an estimated amount of $4,551,115. Once revenue is received, 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.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
MICHAEL P. CONWAY |
APPROVED: |
DIRECTOR OF PUBLIC WORKS |
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PATRICK H. WEST |
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CITY MANAGER |