From
Glenda Peterson
Title
Price agreement renewal #1 for Concrete Paving with Santos Construction as the primary in the estimated annual amount of $10,308,525 and with McMahon Contracting as the secondary at the estimated annual amount of $9,469,952
Presenter
Ron McCuller, Public Works Director
Recommended Action
Approve
Analysis
On March 22, 2016 City Council approved a one year contract with four one-year renewals with Santos Construction, at an estimated annual cost of $9,985,525 with a secondary for McMahon Contracting at an annual cost of $9,226,667, tertiary with New Star Grading & Paving with an annual cost of $11,395,850, and a fourth to NACC, Inc. at an annual cost of $10,594,889. The award was based on best value criteria set up in the specification. Santos Construction has continued to demonstrate an eagerness to work expeditiously with the City. The initial term of the contract is set to expire March 31, 2017.
The contract is pending the first renewal option. Vendors are requesting a price increase of $323,000 for Santos bringing the total not to exceed to $10,308,525 and an increase of $243,285 for McMahon bringing the total not to exceed to $9,469,952. The increase requests are due to increased material and concrete costs of approximately 3.23% for Santos and 2.64% for McMahon over the previous year.
The increase are below the 25% but more than the $50,000 which requires City Council approval. Price increases are allowed in the specifications and initial contracts. Staff evaluated these increases, determined they were reasonable and recommends approval.
Financial Consideration
Funds are available in Streets, Roads, Highway Maintenance 1/4 cent Sales Tax Funds (232010-01713503-63030) FY 2016/2017 Street Maintenance Projects. All work will be charged accordingly on orders through the end of the fiscal year. Funding for future years will be paid from that year's approved budgets.