TITLE
Recommendation to authorize City Manager to execute a second amendment to Contract No. 32487 with CJ Concrete Construction, Inc., for the annual contract for concrete repairs and related improvements to increase the contract amount by an additional $4,000,000, for a total not to exceed amount of $8,000,000, through the authorized final contract term ending December 30, 2013. (Citywide)
DISCUSSION
On January 10, 2012, the City Council authorized the City Manager to execute the City's annual contract for concrete repairs and related improvements with CJ Concrete Construction, Inc. The annual contract provides the City with fixed unit prices for a 12-month period to construct concrete-related improvements. Work generally performed under this contract includes the repair and replacement of sidewalks, driveways, curbs and gutters, curb ramps, concrete cross gutters, bus stops, alleys, and related improvements.
In the past 10 months, the contractor has done excellent work for the City, particularly in completing the construction of sidewalk, curb, and other concrete-related improvements in a timely manner. The contractor has provided the City with a written offer to extend the contract term for another year at the same unit prices originally bid in November 2011. Considering that the current contract unit prices are typically lower than those now being received on other competitively bid street projects, staff is recommending that the City accept this offer and have the City Manager extend the contract term through December 30, 2013 as previously authorized by the City Council.
The current contract authority is $4,000,000. The maximum amount of work orders that can be issued under this on-call contract amendment will be an additional $4,000,000. All work orders issued under this contract will be funded with existing appropriations, as well as additional appropriations made during the term of the contract.
This matter was reviewed by Deputy City Attorney Linda Trang on October 29, 2012 and by Budget Management Officer Victoria Bell on November 1, 2012.
SUSTAINABILITY
All concrete removed under this contract will be recycled as base rock for street construction projects. All new concrete installed under this contract will utilize waste ash, thereby diverting this material from local landfills.
TIMING CONSIDERATIONS
City Council action on this matter is requested on November 20, 2012 in order to provide for the timely construction of concrete-related improvements budgeted in FY 13.
FISCAL IMPACT
The maximum amount of work orders that can be issued under this on-call contract is $8,000,000. Individual work orders issued under this contract will be funded by the Department issuing the purchase order within their current appropriations; no appropriation increases are required for this recommendation. There is no fiscal impact to the General Fund. Approval of this recommendation will result in a positive local job impact.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
MICHAEL P. CONWAY
DIRECTOR OF PUBLIC WORKS
APPROVED:
PATRICK H. WEST
CITY MANAGER