| | | | | | | | Agenda Item - 4.g.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C. Stiles
| From: | William E. Murray
| | Dept.: | City Manager
| Dept.: | Public Works
| | Subject: | Approval of Amendment No. 2 of the contract with American Asphalt South, Inc., for increased costs to provide as needed asphalt and slurry seal services. (Cost: $200,000) (Action Item) | Date: | 8/9/2022 |
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| | | | | | | | OBJECTIVE
For City Council approval of Amendment No. 2 of the contract with American Asphalt South, Inc., to increase the current annual contract amount from $825,000 to $950,000; and to increase authorized future option year contract amounts from $750,000 to $950,000. |
| | | | | | | | BACKGROUND
The Public Works Department’s Street Division is responsible for the rehabilitation of residential streets citywide as per the City’s Pavement Management Program. This requires the procurement of Type II Recycled Asphalt Pavement Slurry Seal on a per square foot basis for various streets and projects and also the procurement for asphalt cold milling, pulverization, trucking, street sweeping and operator services, as part of general operation requirements. |
| | | | | | | | DISCUSSION
This calendar year has seen price increases for commodities and equipment services that are essential for the residential street improvement program. For example, equipment rates have increased by at least 9% from calendar year 2021. Therefore, it is essential to increase the annual contractual amount in order to provide the same productive output as before, otherwise the City’s Pavement Condition Index will continue to decline. |
| | | | | | | | FINANCIAL IMPACT
There is no impact to the General Fund. This increase will be absorbed by the Public Works Streets capital budget, which includes gas tax funding. |
| | | | | | | | RECOMMENDATION
It is recommended that the City Council:
- Approve Amendment No. 2 with American Asphalt South, Inc., increasing the current annual contract term amount from $825,000 to $950,000 and future option year contract term amounts from $750,000 to $950,000; and
- Authorize the City Manager to execute Amendment No. 2, and to execute option years, with minor modifications as needed on behalf of the City.
By: Ana V. Neal, Principal Administrative Analyst
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| ATTACHMENTS: | | Description | Upload Date | Type | File Name | | Amendment No. 2 | 7/27/2022 | Agreement | AMENDMENT_2-American_Asphalt_South_2022.pdf |
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