TITLE
Recommendation to authorize City Manager to execute the First Amendment to Contract No. 29448 with Sully-Miller Contracting Company to extend the term of the contract to December 31, 2007, to increase the contract by $6,000,000 for a total cumulative contract amount of $14,500,000, and to replace Exhibit "A" with Exhibit "A-1," a listing of the annual revised pricing. (Citywide)
DISCUSSION
Each year, the City enters into a contract for the construction of minor improvements to streets, alleys and publicly-owned properties such as parks, playgrounds, beaches and the airport. This annual contract provides an expedient means of constructing public works, by establishing an agreement with a private contracting company selected as the lowest responsible bidder. The work includes minor street, sidewalk and irrigation repairs and improvements. The 2006 unit prices are included in Exhibit "A" of the contract and will be updated with the 2007 unit prices included in Exhibit "A-1".
This is a procurement tool with no funds actually committed to the base contract. Upon City Council approval, departments may issue purchase orders within their respective operating or project budgets. The award amount for the annual contract is based on anticipated expenditures. The contract is not for one specific project or department, but for various projects and departments throughout the year, with no specific contract expenditure amount guaranteed to the contractor. City departments expected to utilize this contract include Long Beach Gas and Oil, Water, Community Development, Parks, Recreation and Marine and Public Works.
On November 22, 2005, the City Council adopted Plans and Specifications No. R-6700 and awarded the contract to Sully-Miller Contracting Company for $8,500,000 (City Council letter attached). The Specifications allow for an extension of the contract for up to two additional one-year terms. Sully-Miller Contracting Company has indicated its interest in extending the term of the contract to December 31, 2007, with a small unit price increase of 6.6 percent, overall. The overall unit price escalation is greater than the CPI, due to anticipated PCC material increase of 6%, asphalt material increase of 15% and labor increases of 6%.
In addition to the term extension, the Departments of Public Works, Long Beach Gas and Oil, Community Development and Parks, Recreation and Marine are requesting additional contract authority of $2,500,000, $500,000, $500,000 and $500,000, respectively. The Water Department will also be requesting authorization of $2,000,000 from the Board of Water Commissioners. The combined increase is $6,000,000.
The proposed amendment was reviewed by Senior Deputy City Attorney Donna F. Gwin on September 18, 2006, and Budget Management Officer David Wodynski on September 21,2006.
TIMING CONSIDERATIONS
City Council action on this matter is requested on October 10, 2006, to allow on-going street repair projects to proceed without interruption and allow for immediate commencement of new projects.
FISCAL IMPACT
Individual purchase orders issued under this contract will be funded by the department issuing the purchase order within current appropriations; no appropriation increases are required.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
CHRISTINE F. ANDERSEN
DIRECTOR OF PUBLIC WORKS
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APPROVED: |
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GERALD R. MILLER |
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CITY MANAGER |