TITLE
Recommendation to authorize City Manager to execute a Second Amendment to Contract No. 33031 with All American Asphalt for the Annual Contract for Street Improvements, increasing the contract amount by an additional $15,000,000 for a revised not-to-exceed total contract of $30,000,000, and extend the contract term to
February 28, 2015, at the discretion of the City Manager. (Citywide)
DISCUSSION
On February 19, 2013, 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 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.
On April 2, 2013, the City Council authorized an additional $2.6 million to be allocated to residential street resurfacing and slurry seal pavement maintenance projects, and $1 million for sidewalk improvements. Additionally, on June 11, 2013, the City Council authorized an additional one-time $6.1 million to be allocated to infrastructure improvements.
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 contract code. Staff would like to continue the use of the contractor’s current contract unit prices, which are typically lower than those now being received on other competitively bid street projects. Staff has spoken with All American Asphalt, and the contractor...
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