TITLE
Recommendation to authorize City Manager to execute a Third Amendment to Contract No. 33031 with All American Asphalt for the annual contract for street improvements, increasing the contract amount by an additional $15,000,000, for a total amount not to exceed $45,000,000, and extend the contract term to February 26, 2016, at the discretion of the City Manager. (Citywide)
DISCUSSION
On February 19, 2013, the City Council authorized the City Manager to execute an on-call contract with All American Asphalt in the amount of $15,000,000 to construct street, parking lot, and airport taxiway improvements at fixed unit prices. Under this on-call contract, work is only performed by the contractor based on individual work orders issued by the City. Payment to the contractor, under this contract, is based on the originally bid-fixed unit prices, and the quantity of work issued in work orders by the City and then completed by the contractor as a typical public works construction project. This method of contract delivery provides staff with an extremely efficient contract delivery model for street improvement projects. However, the contract does not include any guaranteed minimum payment or retainer fee to the contractor.
On August 13, 2013, the City Council authorized a Second Amendment in the amount of $15,000,000 that was necessary to deliver the increase of infrastructure improvement projects resulting from additional one-time funding. During FY 2013, the City Council appropriated one-time funding of $2,600,000 for residential street resurfacing and slurry seal pavement maintenance, and $6,122,707 for infrastructure improvements. This funding was in addition to $18,425,000 of street rehabilitation funding and $1,450,000 of Tidelands funding for beach parking lot upgrades included in the FY 13 Adopted Capital Improvement Program budget.
The programmed street and airport-related projects included in the FY 14 Adopted Capital Improvement Program budget are ...
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