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STAFF REPORT
Public Works Services Department
DATE: January 21, 2014
TO: Honorable Mayor and City Council
FROM: Tom Tait, Public Works Services Director
By: Dave McVey, General Services Superintendent
SUBJECT: CONTRACT EXTENSION WITH VARGAS OLSON ENTERPRISES, INC.
FOR CONSTRUCTION MAINTENANCE SERVICES AT VARIOUS CITY
FACILIITES IN THE AMOUNT OF $105,770
Recommendation: Approve
SUMMARY
On February 1, 2011, the City Council approved a contract with Vargas Olson
Enterprises, Inc. for construction maintenance services at various City facilities. Vargas
Olson Enterprises, Inc. is reaching the end of their second contract extension and has
submitted a written offer to extend the existing contract for an additional year with no
increase in pricing. All other terms and conditions of the agreement will remain the
same.
Based on the excellent services provided by Vargas Olson Enterprises, Inc., it is
recommended that the City Council authorize and direct the City Manager to approve a
one year contract extension with Vargas Olson Enterprises, Inc. for construction
maintenance services at various City facilities in the amount of $105,770.
DISCUSSION
The Public Works Services Department is responsible for the maintenance of all City
facilities, which includes preventative maintenance programs at City parks and City
owned facilities. As part of the City's ongoing facilities maintenance program, the
construction maintenance services contract allows the contractor to conduct a variety of
scheduled and unscheduled improvements which are funded through the Capital
Improvement Program (CIP) and each department's operations and maintenance
budget. In addition, the construction maintenance services contract allows for
extraordinary services, such as emergency responses for sanitary sewer overflows,
which can cause damage to public facilities and /or private homes. The current Vargas
Extension of Construction Maintenance Services Contract
January 21, 2014
Page 2 of 2
Olson Enterprises, Inc. contract amount is a "not -to- exceed" amount. The work
performed is based on Capital Improvement Projects and extraordinary repair work
needed throughout the year.
Vargas Olson Enterprises, Inc. is reaching the end of their second contract extension
and has submitted a written offer to extend the existing agreement for an additional year
with no increase in pricing. All other terms and conditions of the agreement are to
remain in effect. The contract language allows for annual contract extensions, subject
to City Council approval. Vargas Olson Enterprises, Inc. has provided excellent
services to the City during the term of the contract.
FISCAL IMPACT
Sufficient funds have been budgeted in the 2013 -14 Capital Improvement Program and
funds are budgeted in each department's Operating and Maintenance budget accounts
for facility maintenance.
RECOMMENDATION
It is recommended that the City Council authorize and direct the City Manager to
execute a one year contract extension with Vargas Olson Enterprises, Inc. for
construction maintenance services at various City facilities in the amount of $105,770.
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