AGENDA TITLE:
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Adopt a Resolution Authorizing Interim City Manager to Execute Amendment No. 3 for the 2021-2022 Asphalt Materials Contract with George Reed, Inc., of Modesto ($60,000) (PW)
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MEETING DATE:
May 1, 2024
PREPARED BY:
Public Works Director
recommendation
RECOMMENDED ACTION:
Adopt a resolution authorizing Interim City Manager to execute Contract Amendment 3 for 2021-2022 Asphalt Materials with George Reed, Inc, of Modesto to extend contract until June 30, 2025 and increase the contract amount by $60,000 for a total not-to-exceed contract amount of $232,128.
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BACKGROUND INFORMATION:
The asphalt materials purchase is needed to carry out preventive street maintenance and repairs. City street maintenance crews utilize the asphalt for localized roadway repairs, trench patching, thin overlays, and large sidewalk offset patching.
On April 21, 2021, Council authorized the City Manager to award the contract to the lowest responsive bidder and execute change orders (not-to-exceed $20,000). The project was awarded to George Reed, Inc., of Modesto, in the amount of $48,805. The contract allows for three extensions by mutual consent, through Fiscal Year 2024/2025. On July 20, 2022, City Council authorized the contract to be extended to June 30, 2023 and increased the contract amount by $62,333. On May 17, 2023, City Council authorized the contract to be extended to June 30, 2024 and increased the contract amount by $60,000.
Staff approached George Reed in regards to another potential contract extension for 2023/24. George Reed, Inc. agreed to extend the contract through June 30, 2024 contingent upon increasing the Environmental Fee from $9 to $10. The Environmental Fee is charged at a per load basis and Staff finds this fee consistent with other asphalt suppliers. The proposed unit prices in Exhibit A are consistent with the increases allowed by contract.
Staff recommends authorizing Interim City Manager to execute Amendment No. 3 for the 2021-2022 Asphalt Materials Contract with George Reed, Inc. to extend contract until June 30, 2025 and increase the contract amount by $60,000 for a total not-to-exceed contract amount of $232,128.
STRATEGIC VISION:
5E. Infrastructure: Proactive infrastructure development for Sphere of influence & growth areas.
FISCAL IMPACT:
Preventive maintenance will extend the useful life of our streets and reduce future street reconstruction costs. The proposed unit price increases are minimal. This project will not impact the General Fund.
FUNDING AVAILABLE:
Fiscal Year 2024/25 Budget:
Measure K (PWST-22003.Contracts.GasTax)
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Charles E. Swimley
Public Works Director
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Andrew C. Keys
Interim City Manager