TITLE
Recommendation to authorize City Manager to execute the Second Amendment to Contract No. 31471 with All American Asphalt for the annual contract for street improvements to increase the contract amount by an additional amount not to exceed $6,000,000 through the authorized final contract term ending December 15, 2012. (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 done by the contractor based on individual work orders issued by the City. Payment to the contractor, under this contract, is based on the fixed unit prices and the quantity of work issued in work orders issued by the City and fully completed by the contractor. The contract does not include any guaranteed minimum payment or retainer fee to the contractor.
The current term of the contract, as well as the original contract authority of $6 million, will soon expire. The contractor has done excellent work for the City, particularly keeping the residential resurfacing program within budget and completing jobs 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 December 2009. 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 15, 2012 as previously authorized by the City Council.
The maximum amount of work orders that can be issued under this on-call contract amendment will be $6,000,000. 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.
While ...
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