From
Glenda Peterson
Title
Renew the price agreement for pavement resurfacing services Amendment No. 3 with Reynolds Asphalt and Construction Company, in the amount of $4,013,715
Presenter
Gabriel Johnson, Public Works Director
Recommended Action
Approve
Analysis
On August 16, 2016 Council awarded an annual price agreement for Pavement Resurfacing to Reynolds Asphalt and Construction Company for an annual amount of $3,523.900.
The above referenced agreement provides that Vendor may request a price increase through a price redetermination request, substantiated in writing, to become effective on the anniversary date of the contract to cover verifiable increases in cost to the applicable industry. This is the vendor's first price redetermination request on this contract since winning the bid in 2016.
The estimated annual amount to be paid to Vendor shall be increased by the sum of $489,815.00, to reflect the price redetermination as described in Exhibit "A", making the total estimated annual amount to be paid to Vendor under such contract $4,013,715, to reflect the one year renewal.
State statues require City Council approval of a change order when the cumulative cost of the change order exceeds $50,000. With approval of this change order, the City Manager will be able to approve the change order to a cumulative value of $50,000 without additional Council approval. The City, as an owner, reserves the right to increase the amount of the work to be performed in a given contract by an amount not to exceed twenty-five (25%) percent of the original bid.
Financial Consideration
Funds are available in FY 2018/2019 budget for Streets, Roads, Highway Maintenance (251210-63030), as well as FY19 Sales Tax, Street Maintenance Projects (253010-01900703-63030) and will be charged accordingly through the end of the current fiscal year. Funding for future fiscal years will be paid from that year's approved budgets.