From
max
Title
Price Agreement Renewal #3 for pavement resurfacing services, with Reynolds Asphalt & Construction Co., at an estimated annual cost of $3,269,104 for a total of $12,098,670 (2,780,213*2+3,269,104*2) if all renewal options are exercised; and authorize the City Manager to execute any additional renewal options with aggregate price fluctuations of the lesser of up to $50,000 or 25% of the original maximum price so long as sufficient funding is appropriated by the City Council to satisfy the City’s obligation during the renewal term(s)
Presenter
Ron McCuller, Public Works Director
Recommended Action
Approve
Analysis
A price agreement for pavement resurfacing services was awarded to Reynolds Asphalt & Construction Co. on September 6, 2011. 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 $2,780,213. The contract is up for renewal and the vendor is requesting a price increase of not to exceed $3,269,104. This increase is below the 25% but more than the $50,000 which requires City Council approval. The increase request is due to increased labor, equipment and material costs of approximately 17%. The price increase is allowed in the specification and initial contract.
Staff requests City Council approval of; the potential life value of the contract ($12,098,670); approval of current renewal option #3 for the cost increase; and authorization for City Manager to approve and execute any additional renewal options with aggregate price fluctuations of the lesser of up to $50,000 or 25% of the original maximum price so long as sufficient funding is appropriated by the City Council to satisfy the City’s obligation during the renewal term(s).
Financial Consideration
Funds are available in FY 2013/2014 budget 251210-68030 for Streets, Road and Highway Maintenance and will be charged accordingly on orders through the end of the current fis...
Click here for full text