TITLE
Recommendation to authorize City Manager to execute a Third Amendment to Contract No. 31471 with All American Asphalt for the annual contract for street improvements for an additional amount not to exceed $3,000,000, for an aggregate amount not to exceed $15,000,000. (Citywide)
DISCUSSION
On December 15, 2009, the City Council authorized the City Manager to execute an on-call contract with All American Asphalt to construct street 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.
In the past two years, the contractor has performed well for the City, particularly in keeping the residential resurfacing program within budget and completing work in a timely manner. In addition, staff from All American Asphalt has been very successful with community relations on residential street projects.
Finally, having this annual contract in place provides staff with a valuable tool to deliver projects in a timely manner, while still complying with the State public contract code. Staff would like to continue the use of the contractor’s current contract unit prices, which are typically lower than those now being received on other competitively bid street projects. Staff has spoken with All American Asphalt, and the contractor has agreed to continue providing construction services at the same unit prices originally bid in December 2009. However, the current programmed ...
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