TITLE
Recommendation to authorize City Manager, or designee, to execute a Fifth Amendment to Contract No. 32487 with CJ Concrete Construction, Inc., of Santa Fe Springs, CA, for the Annual Contract for Concrete Repairs and Related Improvements, extending the contract term to December 30, 2017. (Citywide)
DISCUSSION
On January 10, 2012, the City Council authorized the City Manager to execute an annual contract for concrete repairs and related improvements with CJ Concrete Construction, Inc. (CJ Concrete), for an annual amount of $4,000,000. The City Council authorized four contract amendments, bringing the total contract authority to a not to exceed amount of $23,000,000, and extending the term to December 30, 2016. The on-call contract provides the City with fixed unit prices, for a 12-month period, and the quantity of work is issued in work orders, specified by the City, and then completed by CJ Concrete, 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. The contract does not include any guaranteed minimum payment or retainer fee to the contractor.
Work performed under this contract includes the repair and replacement of sidewalks, driveways, curbs and gutters, curb ramps, concrete cross gutters, bus stops, alleys, and other concrete-related improvements. CJ Concrete has done excellent work for the City, particularly in completing the construction of sidewalk, curb, and other concrete-related improvements, in a timely manner. CJ Concrete is currently constructing the concrete-related improvements for the Fiscal Year 2017 (FY 17) Measure A street improvements, and 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 and the existing total contract authority through December 30, 2017.
This matter was reviewed by Deputy City Attorney Linda T. Vu on November 9, 2016 and by Budget Management Officer Rhutu Amin Gharib on November 22, 2016.
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 is requested on December 13, 2016, to provide for the timely construction of Measure A street and concrete-related improvements budgeted in FY 17.
FISCAL IMPACT
The requested recommendation extends the term to December 30, 2017. No contract authority increase or appropriation increase is requested at this time. All work orders issued under this contract amendment will be funded with existing appropriations and will not exceed the remaining contract authority $4,800,000. Any work not currently budgeted will only proceed at such a 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,
CRAIG A. BECK
DIRECTOR OF PUBLIC WORKS
APPROVED:
PATRICK H. WEST
CITY MANAGER