From
Glenda Peterson, Street Operations Supervisor
Title
Final renewal on the price agreement with Santos Construction, Inc. for concrete paving; approve a monetary increase of 1.11%, increasing the estimated annual amount to $11,356,750.01; final renewal on the price agreement with McMahon Contracting for concrete paving and approve a monetary increase of 5.46%, increasing the estimated annual amount to $11,215,149.62; final renewal on the price agreement with New Star Grading & Paving and approve a monetary increase of 0.96406%, increasing the estimated annual amount to $13,420,371.96
Presenter
Gabriel Johnson, Public Works Director
Recommended Action
Approve
Analysis
On March 22, 2016, City Council awarded RFB# 16040 to Santos Construction, McMahon Contracting, New Star Grading & Paving, and NACC, Inc. In 2008, the City did not renew its contract with NACC, Inc. The City is satisfied with the performance of the three current vendors.
These price agreements are currently utilized for large concrete pavement repairs and replacements in order to maintain the City's streets and roadways. It should be noted that the total amount for each contract does not represent the total actual amount that will be spent, but is the total amount of the price agreements if all items were actually done by all three contractors. By pricing every item with each vendor, we have the flexibility of using any one of the three for repairs and construction needs since the availability of the vendors varies and much of our work requires response in a short time frame. The actual amount spent on the 1/4 cent Street Sales Tax program shall not exceed the street sales tax receipts. These vendors are also used for projects by other Departments throughout the City due to the flexibility in not having to take individual bids on different projects.
Due to an escalation of concrete aggregate materials and rising market trends, each concrete paving vendor has requested a price redetermination increasing the cost and subsequently the contract amount needed for future terms. Because each contract would be raised in excess of $50,000, City Council approval is required. This action would allow City staff to renew the price agreements with authorization to increase the contract values by the following amounts:
Vendor % Increase Dollar Increase Proposed Contract Value
Santos Construction 1.11% $124,250.00 $11,356,750.01
McMahon Contracting 5.46% $612,903.80 $11,215,149.62
New Star Grading & Paving .96406% $428,284.96 $13,420,371.96
Financial Consideration
Funds are available for this price agreement from the FY20 Streets 1/4 cent Sales Tax Funds (232010), FY/20 Street Maintenance Projects (02004703), Street Maintenance (63030), as well as the Streets Capital Improvement Projects Fund (400192). FY20 Street Assessment Implementation (02006503), Street Maintenance (63030). Projects by other Departments that utilitze this price agreement will be funded through those Departments. All work will be charged accordingly on orders through the end of the fiscal year. Funding for future fiscal years will be paid from that year's approved budgets.