Report to Mayor and City Council
Tuesday, July 16, 2024
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF AMENDMENT NO.1 TO AGREEMENT WITH PETROCHEM MATERIALS INNOVATIONS, LLC FOR PROJECT NO. 1763: CITYWIDE RUBBERIZED SLURRY SEAL PROGRAM (CITY COUNCIL)
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I. SUMMARY
On September 6, 2022, the City Council awarded a Construction and Materials Purchase Contract to Petrochem Materials Innovations, LLC (PMI) in the amount of $2,733,266.25, and authorized the expenditure of construction contingencies in the amount of $409,989.94 (15%) for change orders and any unforeseen construction work for Project No. 1763: Citywide Rubberized Slurry Seal program.
Section 1.8 "Additional Services" of the Agreement entered into on August 23, 2022, by and between the City of Carson and PMI, requires that any increase in compensation greater than ten percent (10%) of the contract sum to be approved by City Council.
Staff is requesting City Council to consider approval of Amendment No. 1 to the existing agreement with PMI. Amendment No.1 will authorize staff to approve increases greater than 10% of the contract sum for change orders and added scope up to the amount of the contingency (15%) approved by the City Council at the time the project was awarded to the contractor (Exhibit No. 1).
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. AUTHORIZE and REAFFIRM the expenditure of the full project contingency totaling $409,989.94 (15%) previously budgeted during the contract award per staff report 2022-730 (Exhibit No. 2).
2. APPROVE Amendment No. 1 to Public Works Agreement with Petrochem Materials Innovations, LLC.
3. AUTHORIZE the Mayor to execute Amendment No. 1 following approval as to form by the City Attorney.
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III. ALTERNATIVES
1. DO NOT APPROVE the above recommendations.
2. TAKE another action the City Council deems appropriate consistent with the requirements of the law. However, staff will not be able to spend the full contingency amount previo...
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