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HomeMy WebLinkAboutItem 2b - Contract extension for construction maintenance services at various City facilitiesw 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. •'�I; rO. "c