HomeMy WebLinkAboutItem 1f - Contract Extension for Construction Maintenance Servicesw
STAFF REPORT
Public Works Services Department
DATE: March 3, 2015
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 $132,213
Recommendation: Approve
SUMMARY
On February 1, 2011, the City Council approved a contract with Vargas Olson
Enterprises, Inc. in the amount of $105,770, for construction maintenance services at
various City facilities. Vargas Olson Enterprises, Inc. is reaching the end of their current
contract extension and has submitted a written offer to extend the existing contract for
an additional year. The contract amount reflects an additional cost of $26,443, to offset
an increase in labor costs due to the recent changes pertaining to the administration of
prevailing wage under Senate Bill 7 ( "SB 7 "). This would be the contractor's final
extension and all other terms and conditions of the contract will remain in effect.
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 $132,213.
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 and each department's operations and maintenance budget. In
addition, the construction maintenance services contract allows for extraordinary
Extension of Construction Maintenance Services Contract
March 3, 2015
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services, such as emergency responses for sanitary sewer overflows, which can cause
damage to public facilities and /or private homes.
Effective January 1, 2015, SB 7 requires public works contracts of $25,000 or more for
construction work; or projects of $15,000 or more for alteration, demolition, repair, or
maintenance work, be paid by prevailing wage labor rate or the City will be prohibited
from receiving state funding or financial assistance. The City has elected to adhere to
these requirements and an analysis determined that compliance would increase annual
public works maintenance and Capital Improvement Program contracts by
approximately 25 %. The proposed 25% contract increase in the amount of $26,443 is
to offset increased labor costs pertaining to the administration of prevailing wage rates.
The total contract amount is a "not -to- exceed" amount and the work performed is based
on Capital Improvement Projects and extraordinary repair work on an as- needed basis
throughout the year. Legal Counsel for the City has advised that contract extensions
that are awarded after January 1, 2015, will need to be amended to include this
requirement and may be amended without re- bidding provided that all other terms of the
contract remain unchanged.
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 and this would be the contractor's final extension. All
other terms and conditions of the contract will remain in effect.
FISCAL IMPACT
Sufficient funds have been budgeted in the FY 2014 -15 Capital Improvement Program
and funds are budgeted in each department's Operating and Maintenance budget
accounts for facility maintenance. All work performed is on a time and material basis
and the contractor is only paid for work performed.
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 $132,213.
Approved:
Dominic Lazza
City Manager