TITLE
Recommendation to authorize City Manager to execute a Third Amendment to Contract No. 32487 with CJ Concrete Construction, Inc., for the annual contract for concrete repairs and related improvements, increasing the contract amount by an additional $5,000,000, for a total amount not to exceed $18,000,000, and extend the contract term to December 30, 2015, at the discretion of the City Manager. (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. for an annual amount of $4,000,000. On November 20, 2012 and February 11, 2014, the City Council authorized the first and second contract amendments bringing the total contract authority to $13,000,000. 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.
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, 2015.
Current and anticipated projects are now estimated to be more than the remaining contract authority; therefore, staff is recommending augmenting the current contract authority. The maximum amount of work orders that can be issued under this on-call contract amendment will be an additional $5,000,000. 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 Vu on October 24, 2014 and by Budget Management Officer Victoria Bell on October 29, 2014.
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 18, 2014 in order to provide for the timely construction of concrete-related improvements budgeted in FY15.
FISCAL IMPACT
The contract authority increase of $5,000,000, for a revised total amount not to exceed $18,000,000 over the four-year term through December 30, 2015, is estimated based on current and anticipated projects within various City departments, including the Public Works Department (PW). No appropriation increase is requested at this time. Any work not currently budgeted will only proceed at such time that appropriations have been approved by the City Council. Approval of this recommendation will provide continued support to the local economy.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
ARA MALOYAN, PE
DIRECTOR OF PUBLIC WORKS
APPROVED:
PATRICK H. WEST
CITY MANAGER