TITLE
Recommendation to authorize City Manager, or designee, to execute a Third Amendment to Contract No. 34587 with All American Asphalt, of Corona, CA, for as-needed street improvements, increasing the contract amount by an additional $15,000,000, for a revised total amount not to exceed $55,000,000. (Citywide)
DISCUSSION
On March 21, 2017, the City Council authorized the City Manager, or designee, to execute an annual contract, including any necessary amendments, for street improvements with All American Asphalt (AAA) in the amount of $40,000,000 with the option to renew for two additional one-year periods. City Council approval is requested to increase the contract amount by an additional $15,000,000, for a total amount not to exceed $55,000,000.
This on-call contract provides staff with an efficient contract delivery model for street improvement projects. The contract provides the City with fixed unit pricing for work performed including the repair and replacement of street pavement, curbs and gutters, curb ramps, parking lots pavement, airport taxiway pavement, and other related improvements. Work under this contract is only performed by the contractor based on individual work orders issued by the City and does not include any guaranteed minimum payment or retainer fee. Payment to the contractor is based on the number of the work orders issued and completed by the contractor.
With passage of Measure A, Los Angeles County Measure M, and the Road Repair and Accountability Act of 2017 - Senate Bill 1 (SB 1), additional funding is available for street repairs. The programmed street, parking lot, and airport-related projects in the Fiscal Year 2018 (FY 18) Adopted Capital Improvement Program (CIP) budget, along with planned FY 19 CIP projects, are estimated to cost more than the remaining contract authority under the current contract limit. Staff recommends increasing the current contract authority by an additional $15,000,000 to ensure FY 18 and FY 19 CI...
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