AGENDA TITLE:
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Adopt a Resolution Authorizing City Manager to Execute Amendment No. 2 to 2021-2023 Sidewalk and Miscellaneous Concrete Repair Program to A.M. Stephens Concrete, Inc. of Lodi, CA, and Authorizing City Manager to Execute Additional Change Orders ($150,000) (PW)
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MEETING DATE:
June 5, 2024
PREPARED BY:
Public Works Director
recommendation
RECOMMENDED ACTION:
Adopt a Resolution Authorizing City Manager to Execute Amendment No. 2 to 2021-2023 Sidewalk and Miscellaneous Concrete Repair Program to A.M. Stephens Concrete, Inc. of Lodi, CA, and Authorizing City Manager to Execute Additional Change Orders ($150,000).
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BACKGROUND INFORMATION:
This project consists of the construction, removal, and/or the replacement of curb, gutter, sidewalk, ramps, or other miscellaneous concrete items at various locations throughout the City on an as-needed basis.
On April 21, 2021, Council approved specifications and adopted a resolution authorizing the City Manager to award a contract to the lowest responsive bidder, not-to-exceed $250,000. On July 7, 2021, the City Manager executed the contract with Popuch Concrete Contracting, Inc., of Lodi, in the amount of $190,480. A.M. Stephens Concrete, Inc. purchased Popuch Concrete Contracting, Inc. in June, 2022 and a Consent to Assignment was executed to continue the contract under A.M. Stephens Concrete, Inc. on November 29, 2022. The contract was extended once with a unit costs adjustment based on the annual Consumer Price Index (CPI). Various change orders have been executed, increasing the total contract amount to $793,212 over the past four fiscal years. All change orders were either directly executed by Council action or by the City Manager as authorized by City Council. Many times, the change orders were to address the needs of other City departments for miscellaneous concrete work.
The current contract with A.M. Stephens Concrete, Inc. is set to expire on June 30, 2024. The contract, consistent with previous contracts, has included the ability to extend the contract if mutually agreeable to the City and the contractor. A.M. Stephens Concrete, Inc. will not agree to extend the contract under the current terms due to increased operating costs.
To address the contractor’s concern, staff recommends extending the contract for an additional 1 year with a Consumer Price Index (CPI) adjustment. The proposed CPI adjustment reflects a 1-year increase of 3.33 percent based on data between January 2023 and January 2024. Staff believes that if the contract is bid again this year, the unit prices would increase by more than the proposed CPI adjustment of 3.33 percent.
If approved, and contingent on the Fiscal Year 2024/25 Budget being adopted by Council, this resolution would extend the contract through June 30, 2025, allow staff to add to the contract and utilize State Transit Development Act (TDA) funds and Measure K funds up to $100,000 for contract work, and authorize the City Manager to execute additional change orders thereafter up to $150,000 per fiscal year over the life of this contract, including extensions. The additional City Manager change order authority allows the City Manager to authorize additional expenditures on an as needed basis through the end of the contract term.
STRATEGIC VISION:
5C. Infrastructure: Address deferred maintenance.
FISCAL IMPACT:
This project extends the useful life of City sidewalks and miscellaneous concrete. If this street maintenance activity is not performed on a regular basis, future, more costly repairs may be necessary, and leave the City vulnerable to expensive claims. This project will not impact the City’s General Fund.
FUNDING AVAILABLE:
Budgeted Fiscal Year 2023/24:
Measure K (30599000.77020): $70,000
TDA Bike Ped (3199000.77020): $30,000
TOTAL: $100,000
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Charles E. Swimley
Public Works Director
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Melissa Munoz
Accounting Manager
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Andrew C. Keys
Interim City Manager