From
Angi Mize
Title
Price agreement renewal #2 for utility cuts, with primary vendor, New Star Grading & Paving Construction Co., at an estimated annual cost of $1,293,076 for a total of $6,192,828 ($1,156,800 1 & 2 years + 1,293,076 3,4 & 5 years)
Presenter
Robert Myers, Purchasing Manager
Recommended Action
Approve
Analysis
A price agreement for utility cuts was awarded to New Star Grading as primary vendor on August 19, 2014. The agreement was for one year with the option to renew for four additional one year periods. The annual contract amount was awarded for an amount not to exceed $1,156,800. The contract is pending the second renewal option and the vendor is requesting a price increase of $136,276 bringing the total not to exceed to $1,293,076. The increase requests are due to increased material and concrete costs of approximately 20% over previous year.
The increases are below the 25% but more than the $50,000 which requires City Council approval. Price increases are allowed in the specification and initial contracts.
Staff requests City Council approval of; the potential life value of the contract ($6,192,828); approval of renewal option #2 for the cost increase.
Financial Consideration
Funds are available in FY 2015/2016 Varies Budgets, Water Capital Projects Fund (500592) WO #01608003 (FY16 Utility Cuts), Streets, Road and Highway Maintenance and will be charged accordingly on orders through the end of the current fiscal year. Funding for future fiscal years will be paid from that year’s approved budgets.