Extend Street Striping and Pavement Marking Contract
March 15, 2022
DATE: March 15, 2022
TO: Honorable Mayor and City Council
FROM: Paul Cranmer, Public Works Services Director
By: Dave Thompson, Streets Superintendent
SUBJECT: EXTENSION TO THE CONTRACT WITH SUPERIOR PAVEMENT MARKINGS, INC. FOR STREET STRIPING AND PAVEMENT MARKING SERVICES IN THE AMOUNT OF $135,696.60
Recommendation: Approve
SUMMARY
On January 19, 2021, the City Council approved a contract with the option of three one- year extensions, with Superior Pavement Markings, Inc. for street striping and pavement marking services in the amount of $125,645. Superior Pavement Markings, Inc. has reached the end of their first contract term and has submitted a written offer to extend the contract for an additional year. The offer reflects an 8%, or $10,051.60, cost increase to offset an increase in the consumer price index of goods related to their operations. This will be Superior Pavement Markings, Inc.’s first contract extension. All other terms and conditions will remain in effect.
Based on the excellent services provided by Superior Pavement Markings, Inc., it is recommended that the City Council approve, authorize, and direct the City Manager to execute a one-year contract extension with Superior Pavement Markings, Inc. for Street striping and pavement marking services in the amount of $135,696.60.
BACKGROUND
The existing Street Striping and Pavement Marking Program includes annual striping on all major arterial streets. Collector streets are re-done once every two years and commercial and residential streets are striped once every three years. All pavement markings around schools are re-done annually in July before school begins.
Miscellaneous striping service requests and requests from the Traffic Advisory Committee are handled on an as-needed basis.
Extend Street Striping and Pavement Marking Contract
March 15, 2022
DISCUSSION
On January 19, 2021, the City Council approved a contract, with the option of three one- year extensions, with Superior Pavement Markings, Inc. for street striping and pavement marking services in the amount of $125,645. Superior Pavement Markings, Inc. has reached the end of their first contract term and has submitted a written offer to extend the contract for an additional year. The offer reflects an 8%, or $10,051.60, cost increase to offset an increase in the consumer price index of goods related to their operations. The rate increase is based on the calendar year 2021 Consumer Price Index (“CPI”) increase of 6.6% among all goods and services in the Los Angeles Area. The items measured by the CPI that directly affect the operations of Superior Pavement Markings, Inc. along with their specific CPI increases are identified below:
Item CPI Increase – Calendar Year 2021
Fuels and utilities (facilities) 14.2%
Motor Fuel 46.4%
New and used vehicle purchases 13.7%
Motor vehicle insurance 7.2%
Although the direct operational expenses incurred by Superior Pavement Markings, Inc. have surpassed the CPI annual average among all sectors, Superior Pavement Markings, Inc has only requested an 8% contract increase to limit the fiscal impact and maintain a positive relationship with the City. Superior Pavement Markings, Inc has provided quality service to the City of Arcadia for the past year. Attached is the proposed contract amendment with Superior Pavement Markings, Inc., for reference.
ENVIRONMENTAL IMPACT
The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA.
FISCAL IMPACT
The total contract cost will be set at a not-to-exceed amount of $135,696.60, and sufficient funding is budgeted in the Fiscal Year 2021-22 Operating Budget. All work performed is on a time and materials basis and the contractor is only paid for work performed.
RECOMMENDATION
It is recommended that the City Council determine that this contract is exempt under the California Environmental Quality Act (“CEQA”); and authorize and direct the City Manager to execute a one-year extension to the contract with Superior Pavement Markings, Inc. for street striping and pavement marking services in the amount of $135,696.60.
Extend Street Striping and Pavement Marking Contract
March 15, 2022
Attachment: Proposed Amendment No. 1 to the Contract
AMENDMENT NO. 1 TO THE STREET STRIPING AND PAVEMENT MARKING
SERVICES CONTRACT BY AND BETWEEN THE CITY OF ARCADIA
AND SUPERIOR PAVEMENT MARKINGS, INC.
This Amendment No. 1 (“Amendment No. 1”) is hereby entered into this ______ day of ______________, 2022 by and between the City of Arcadia, a municipal corporation of the State of California, and Superior Pavement Markings, Inc., a California Corporation, with respect to that certain Contract between the parties dated March 30, 2021 (“Agreement”).
The Parties agree as follows:
1. Section B of the Contract Term is hereby extended to include the period from March 30, 2022 to and including March 30, 2022. (“Extended Term”).
2. Section C of the Contract, during the Extended Term Contract Price shall not exceed One Hundred Thirty-Five Thousand, Six Hundred Ninety-Six Dollars and Sixty Cents ($135,696.60).
3. All terms and provisions of the Contract not amended by this Amendment No. 1 are hereby reaffirmed.
In witness whereof the Parties have executed this Amendment No. 1 on the date set forth below.
CITY OF ARCADIA SUPERIOR PAVEMENT MARKINGS, INC. By: By: Dominic Lazzaretto City Manager Title: Dated: Dated: By: ATTEST: Title: Dated: City Clerk APPROVED AS TO FORM CONCUR: Stephen P. Deitsch Paul Cranmer City Attorney Public Works Services Director