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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JUNE 6, 2011 <br />TITLE: <br />CHANGE ORDER FOR ASPHALT <br />STREET MAINTENANCE CONTRACT <br />(SPEC. NO. 10 -039) <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 15' Reading <br />❑ Ordinance on 2" Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />Approve the attached change order to the contract with All American Asphalt for asphalt street <br />maintenance. <br />DISCUSSION <br />On November 15, 2010, the City Council awarded a contract for asphalt street maintenance to All <br />American Asphalt for a one -year period with provision for three one -year renewals in an amount <br />not to exceed $580,000 annually. The services provided under this contract are on an as- <br />needed /on -call basis and the annual amount was budgeted based on staff's projection of asphalt <br />street maintenance for the next year. The services are essential to the City's effort to maintain its <br />roadways and include the excavation and cold milling of existing roadways, construction of cement <br />and asphalt pavements and crack sealing. A main portion of the contract provides asphalt <br />concrete for water and sewer utility repairs and the adjustment of water valve boxes and manhole <br />frames and covers to grade. <br />To evaluate costs, vendors provided quotations based on various line items and estimated <br />quantities in the specifications. Bids were opened on October 11, 2010, where All American <br />Asphalt was established as the lowest bidder. A few weeks after the contractor commenced work, <br />they determined that they were operating at a loss and could not sustain working at the quoted <br />rate. In February, All American Asphalt contacted the City and requested a pricing change to Line <br />Item No. 12 of the specifications which is for asphalt concrete for utility service patches at various <br />locations with an estimated quantity of 1,000 tons. All American interpreted and bid the line item <br />for tonnage in excess of 1,000 tons per service patch, resulting in a low bid of $80.00 per ton and <br />consequently, unsustainable losses. The City intended the line item to cover service patches for <br />lower unit amounts, typically one to five tons, and citywide, with a total of all patches approximating <br />1,000 tons. As a result of the misinterpretation All American is requesting an increase to $287 per <br />ton to this line item to cover their operating costs. <br />22E -1 <br />