ADMINISTRATIVE REPORT
MEETING DATE: February 12, 2025 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Randy McKeegan, Finance Director
DATE: January 31, 2025
SUBJECT: Amendment No. 5 to Agreement No. 2021-036 with Pavement Recycling Systems, Inc. (increase compensation by $700,000; revised not to exceed $3,642,050; extend term one year) to continue the supply of cold planing services.
RECOMMENDATION:
Staff recommend approval of the amendment.
BACKGROUND:
On February 17, 2021, the City Council approved the annual contract for the supply of cold planing services with Pavement Recycling Systems, Inc., in the amount of $497,350; renewable annually thereafter for four consecutive one-year periods. The City may exercise the option to extend the term of the agreement with price adjustments due to increases in the Consumer Price Index (CPI), and increases in labor costs (prevailing wages) based on the straight time hourly labor cost for classifications applicable to the work as published by the State of California Department of Industrial Relations for the Kern County Locality as stated in the bid specifications This contract is utilized by the Streets Division for preparation of asphalt roadway surface prior to City crews’ pavement reconstruction. The cold planing process is the removal of the top surface asphalt of a roadway. The removed milled asphalt material is recycled by City staff and used on other projects whereby eliminating any landfill impact.
Recycling Pavement Systems, Inc. has agreed to extend their bid price with a 5% increase, which is permissible due to the combined rise in the Consumer Price Index (CPI) and labor costs.
Per the terms of the contract, four amendments increasing the contract and/or extending the contract have been approved as follows:
Amendment 1 approved October 6, 2021; increase $250,000, funds only. Amendment 2 approved January 19, 2022; increase of $747,350 and extended term one year to February 16, 2023.
Amendment 3 approved February 3, 2023; increase of $747,350 and extended term one year to February 16, 2024.
Amendment 4 approved February 14, 2024; increase of $700,000 and extended term one year to February 16, 2025.
Currently, there is $200,000 remaining on the contract. If approved, Amendment No. 5 will increase compensation by $700,000 for a revised not to exceed amount of $3,642,050 and extend the term by one year to allow the continuance of the supply of cold planing services to the final term date of February 16, 2026.
FISCAL IMPACT:
Funds are budgeted in the General Fund and Capital Outlay Fund for this contract.
COUNCIL GOAL:
Reliable Infrastructure
ATTACHMENTS:
Signed Amendment