Title
Recommendation to Amend the Contract with MCK Services, Inc. to Extend the Term and Increase Compensation by $5,300,000, Including Contingency, for a Total Cumulative Contract Amount of $20,378,600.41 for Repair and Resurfacing of Certain Streets, Phase 37, No. P.W. 01-18-01; and
Adoption of Resolution Amending the Measure B and BB Fund Budgets for Fiscal Year 2017-2018 and Fiscal Year 2018-2019. (Public Works 310)
Body
To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, Acting City Manager
Re: Recommendation to Amend the Contract with MCK Services, Inc. to Extend the Term and Increase Compensation by $5,300,000, Including Contingency, for a Total Cumulative Contract Amount of $20,378,600.41 for Repair and Resurfacing of Certain Streets, Phase 37, No. P.W. 01-18-01; and
Adoption of Resolution Amending the Measure B and BB Fund Budgets for Fiscal Year 2017-2018 and Fiscal Year 2018-2019
BACKGROUND
On June 7, 2014, the City Council awarded a contract in the amount of $2,356,430.63 including contingencies, to MCK Services, Inc., for an overlay of nine streets and slurry sealing of two streets. This was a competitive bid, with authorization from Council to extend the contract by up to four additional years. This year is the fourth of the four allowable extensions. On June 18, 2015, the City awarded a first amendment to the contract in the amount of $2,356,430.63, including contingencies, to MCK Services, Inc., for an overlay of nine streets and slurry sealing of three streets. On June 21, 2016, the City awarded the second amendment to the contract in the amount of $5,000,000, including contingencies, to MCK Services, Inc., for an overlay of 7.43 miles of streets and slurry seal of 0.42 miles of streets. On July 25, 2017 the City awarded the third amendment to the contract in the amount of $5,365,739.15, including contingencies, to MCK Services, Inc., for an overlay of 6 miles of streets. The proposed contract is for $5 million, with contingencies bringing the total to $5.3 million, for an overlay of at least 4.5 miles of street. This information is summarized below.
|
Contract |
Authorized Amount |
Expended to Date |
|
Original Contract |
$2,356,430.63 |
$2,146,659.03 |
|
First Amendment |
$2,356,430.63 |
$1,556,209.64 |
|
Second Amendment |
$5,000,000.00 |
$4,655,537.38 |
|
Third Amendment |
$5,365,739.15 |
$4,964,718.49 |
|
Fourth Amendment |
$5,300,000.00 |
$-0- |
|
Total |
$20,378,600.41 |
$13,323,124.54 |
DISCUSSION
The contract originally signed in 2014 has a clause allowing for a cost of living increase each year equal to the Consumer Price Index (CPI). This year, the CPI is 3.6%. The unit prices are adjusted in accordance with the CPI. The City is very pleased with the work performed by this contractor. This is the last extension permitted under this contract, and next year’s resurfacing project will be put out to competitive bid.
A copy of the amended contract is attached as Exhibit 1.
FINANCIAL IMPACT
On June 6, 2017, the City Council approved the Fiscal Year 2017-2019 Capital Budget with $8,139,000 being allocated for pavement management over a two-year period. With this resolution, the budget amendment to the City’s Fiscal Year 2017-2018 and 2018-2019 budgets are approved for advancing Measure B and BB funds in Project Number 91810 from Fiscal Year 2018-2019 to Fiscal Year 2017-2018 in the amount $3,010,000. The funds from various sources are budgeted in the Capital Improvement Program (Fund 310) Project Number 91810. These include:
• Measure B (Fund 215.1) $2,485,000
• Measure BB (Fund 215.11) $2,580,000
• Vehicle Registration Fund (VRF) (Fund 288) $649,000
• Gas Tax (Fund 211) $620,000
• Assessment District 92-1 - Harbor Bay Isle (Fund 835) $905,000
• Sewer Service (Fund 602) $600,000
• Integrated Waste (Fund 274.1) $300,000
• TOTAL $8,139,000
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This project is consistent with the Waste and Recycling Initiative of the Local Action Plan for Climate Protection by requiring recycling of 80% of all construction waste. In addition, the contractor is encouraged to use recycled content in the asphalt concrete.
ENVIRONMENTAL REVIEW
In accordance with the California Environmental Quality Act (CEQA), this project is Categorically Exempt under CEQA Guidelines Section 15301(c), Existing Facilities.
RECOMMENDATION
Amend the contract with MCK Services, Inc. to extend the term and increase compensation by $5,300,000, including contingency, for a total cumulative contract amount of $20,378,600.41 for repair and resurfacing of certain streets, Phase 37, No. P.W. 01-18-01; and adopt a resolution amending the Measure B and BB Fund budgets for Fiscal Year 2017-2018 and Fiscal Year 2018-2019.
Respectfully submitted,
Liam Garland, Public Works Director
By,
Scott Wikstrom, City Engineer
Financial Impact section reviewed,
Edwin Gato, Acting Finance Director
Exhibits:
1. Contract Amendment
2. Original Contract and Amendments 1-3