TITLE
Recommendation to authorize City Manager to execute a Fourth Amendment to Contract No. 33031 with All American Asphalt for the Annual Contract for Street Improvements, increasing the contract amount by an additional $13,000,000, for a total amount not to exceed $58,000,000; and extend the contract term to February 28, 2017, at the discretion of the City Manager. (Citywide)
DISCUSSION
On February 19, 2013, the City Council authorized the City Manager to execute the City of Long Beach (City) annual contract with All American Asphalt in the amount of $15,000,000, to construct street, parking lot, and airport taxiway improvements at fixed unit prices. On August 13, 2013 and May 13, 2014, the City Council authorized the second and third contract amendments, bringing the total contract authority to $45,000,000. Under this on-call contract, work is only performed by the contractor, based on individual work orders issued by the City. Payment to the contractor, under this contract, is based on the originally bid-fixed unit prices, and the quantity of work issued in work orders by the City, and then completed by the contractor, 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. However, the contract does not include any guaranteed minimum payment or retainer fee to the contractor.
The programmed street, parking lot, and airport-related projects included in the FY16 Adopted Capital Improvement Program budget are now estimated to be more than the remaining contract authority available under the current contract limit. Staff is recommending augmenting the current contract authority by an additional $13,000,000, and extending the term for an additional year to February 28, 2017. Having this annual contract in place provides staff with a valuable tool to deliver projects in a timely manner, while still complying with the State public ...
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