File #: 14-4153    Version: 1 Name: Price Agreement final renewal for large concrete pavement repairs, with primary contractor, Santos Construction, at an estimated annual cost of $9,891,150 for a total of $39,040,890 (9,716,580 yr1 + 9,716,580 yr2 + 9,716,580 yr3 + 9,891,150 yr4); and seco
Type: Agenda Item Status: Consent Agenda
File created: 10/15/2014 In control: Engineering
On agenda: 11/4/2014 Final action: 11/4/2014
Title: Price Agreement final renewal for large concrete pavement repairs, with primary contractor, Santos Construction, at an estimated annual cost of $9,891,150 for a total of $39,040,890 (9,716,580 yr1 + 9,716,580 yr2 + 9,716,580 yr3 + 9,891,150 yr4); and ratification of the third renewal and approval of the fourth renewal of the secondary contractor, McMahon Contracting, at an estimated annual cost of $10,164,029 for a total of $37,910,779 (9,078,834 yr1 + 9,078,834 yr2 + 9,589,082 yr3 + 10,164,029 yr4).
Attachments: 1. 12011 Large Concrete Pavment Replacement details, 2. 12011 R3 Large Concrete Repairs - Santos - Primary Exhibit A, 3. 12011 R3 Large Concrete Repairs - McMahon - Secondary Exhibit A

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Title

Price Agreement final renewal for large concrete pavement repairs, with primary contractor, Santos Construction, at an estimated annual cost of $9,891,150 for a total of $39,040,890 (9,716,580 yr1 + 9,716,580 yr2 + 9,716,580 yr3 + 9,891,150 yr4); and ratification of the third renewal and approval of the fourth renewal of the secondary contractor, McMahon Contracting, at an estimated annual cost of $10,164,029 for a total of $37,910,779 (9,078,834 yr1 + 9,078,834 yr2 + 9,589,082 yr3 + 10,164,029 yr4). 

 

Presenter

Ron McCuller, Director of Public Works

 

Recommended Action

Approve

 

Analysis

A price agreement for large concrete pavement repairs and replacements was awarded to Santos Construction as primary vendor on November 7, 2011. The $9,716,580 contract was for one year with a city option to renew for three additional one year periods. The city exercised its option and renewed the contract in 2012 and 2013. The third and final option is now pending and the vendor is requesting a price increase of approximately 1.02% or an amount not to exceed $9,891,150. The increase requests are due to increased labor, equipment and material costs.

 

A secondary price agreement for large concrete pavement repairs and replacements was awarded to McMahon Contracting LP on November 7, 2011. This contract also was for one year with a city option to renew for three additional one year periods. The annual contract amount was awarded for an amount not to exceed $9,078,834. The City exercised its 2012 option. McMahon Contracting LP requested a price increase for renewal 2 in 2013, for a rate increase resulting in an amount not to exceed $9,589,082 but it was not approved by City Council. The staff signed the contract none the less and paid based on the new rate. The contract is pending third and final renewal and the vendor is requesting an additional price increase of  approximately 11% or not to exceed $10,164,029. The increase requests are due to increased labor, equipment and material costs.

 

The increases are below the 25% maximum allowed by statute but more than $50,000 requiring City Council approval. Price increases are allowed in the original bid specifications and initial contracts.

 

For renewal option #3 with McMahon Contracting, Staff failed to request Council approval for a price increase in access of $50,000 but signed a renewal at the higher rate. McMahon Contracting was paid the higher rate.  At this time, Staff is requesting ratification by the Council of the higher rate paid in renewal option #3.

 

Staff requests City Council approval of the final renewal option #4 for both Santos Construction and McMahon Contracting with their proposed 2014/2015 cost increases.

 

Financial Consideration

Funds are available in various departments operating budgets and 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.