Report to Mayor and City Council
Tuesday, June 18, 2024
Consent
SUBJECT:
Title
CONSIDERATION OF CONTRACT AMENDMENTS WITH RJ NOBLE AND ALL AMERICAN ASPHALT FOR THE PUBLIC WORKS ANNUAL PAVING MAINTENANCE FOR EACH COUNCIL DISTRICT WITHIN THE CITY OF CARSON (CITY COUNCIL)
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I. SUMMARY
The Department of Public Works released Invitation for Bids (IFB- No. 23-26) on August 11, 2023. The scope of work entailed uniform cold mill and overlay of 2" Asphaltic Rubberized Hot Mix (ARHM). After the solicitation period ended on August 31, 2023, two bids were received for all four Council Districts. Following thorough evaluation, R.J. Noble Company emerged as the lowest, responsive, and responsible bidder for Districts 1, 3, and 4, while All American Asphalt secured the same status for District 2.
Considering the quality and cost-effectiveness of the bids received, City Council awarded four annual paving maintenance contracts to R.J. Noble Company and All-American Asphalt, each for three-year terms with the option to extend for two additional one-year terms, subject to the City's discretion. The not-to-exceed amount per contract is $8,000,000 with allocations per district at $2,000,000 for the first year and $3,000,000 for each of the remaining two years.
To facilitate these critical services and maintain project efficiency, staff requests amending the RJ Noble contracts for Districts 1, 3, and 4 and the All-American Asphalt contract for District 2 to remove the annual expenditure restrictions for the purpose of allowing additional expenditures during the first year, thereby ensuring Phases 2 and 3 of the project can be completed successfully.
Staff is requesting Council approval of the four amendments, removing the annual expenditure constraints for these essential services with R.J. Noble and All American Asphalt Inc.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. APPROVE three contract amendments with RJ Noble and one contract amendment with All American Asphalt Inc.
2. AUTHORIZE the Mayor to execute all four Amendments with RJ Noble and All American Asphalt Inc. following approval as to form by the City Attorney
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III. ALTERNATIVES
1. DO NOT ADOPT Amendments; however, this decision will lead to a delay in the project's progress.
2. TAKE another action the City Council deems appropriate, consistent with the requirements of the law.
IV. BACKGROUND
On November 21, 2024, the City Council approved the Public Works Department’s commencement of a city-wide pavement initiative spanning across all districts of the City. An initial funding allocation of $2,000,000 per district (total of $8,000,000) was approved to facilitate the completion of these essential tasks during FY 2023-2024.
To facilitate these critical services and maintain project efficiency, staff requests amending the RJ Noble contracts for Districts 1, 3, and 4 and the All-American Asphalt contract for District 2 to remove the annual expenditure restrictions for the purpose of allowing additional expenditures during the first year thereby ensuring Phases 2 and 3 of the project can be completed successfully. No other changes to the contracts would be made.
On June 4, 2024, City Council approved Resolution No. 24-047 transferring $9,141,174.84 from within the General Fund Public Works operating accounts to cover additional costs for year one related to all four (4) pavement maintenance contracts, to facilitate these critical services and maintain project efficiency and effectively carry out the pavement project, thereby enhancing the safety and quality of the City's roads for the benefit of all residents and visitors.
It should be noted that the June 4th staff report erroneously recommended transferring funds from the General Fund Reserve to address the increased expenses rather than specifying the transfer from various budgeted operating accounts into the Roadway Professional Services account number (101-80-840-281-6004), the necessary correction was made verbally on the floor during the meeting; it was based on such correction that City Council approved Resolution No. 24-047. No funds have been transferred or are requested from the General Fund Reserve.
V. FISCAL IMPACT
The funds needed for the proposed amendments were approved by the City Council on June 4, 2024, by adoption of Resolution No. 24-047.
VI. EXHIBITS
1. Amendment Contract for RJ Noble District 1 (pgs. 4-9)
2. Amendment Contract for RJ Noble District 3 (pgs. 10-15)
3. Amendment Contract for RJ Noble District 4 (pgs. 16-21)
4. Amendment Contract for All American District 2 (pgs. 22-27)
Prepared by: Dr. Arlington Rodgers,Jr., Director of Public Works