ADMINISTRATIVE REPORT
MEETING DATE: March 12, 2025 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Randy McKeegan, Finance Director
DATE: February 28, 2025
SUBJECT: Amendment No. 4 to Agreement No. 2022-047 with San Joaquin Fence and Supply (increase compensation by $1,600,000; revised not to exceed $4,300,000 and extend term by one year) to continue the supply of installed fencing.
RECOMMENDATION:
Staff recommend approval of the amendment.
BACKGROUND:
On March 16, 2022, the City Council approved the annual contract for the supply of installed fencing with San Joaquin Fence and Supply, in the amount of $1,200,000; 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) or the Contractor’s costs increase by more than 10% due to extreme economic or market conditions as stated in the bid specifications The Annual Contract for installed fencing is utilized by the Recreation and Parks Department, Water Resources Department, Fire Department and Public Works Department’s Streets, Wastewater and Solid Waste Divisions.
Services include re-fencing, beautifications, and ongoing security measures at City locations San Joaquin Fence & Supply has agreed to extend their bid price with a 15% increase, which is permissible due to the Contractor’s increase in costs in excess of 10%.
Per the terms of the contract, amendments increasing the contract and/or extending the contract have been approved as follows:
Amendment 1 approved December 14, 2022; increased compensation by $150,000. Amendment 2 approved March 8, 2023; increased compensation by $1,350,000, and extended the term by one year to March 15, 2024
Amendment 3 approved March 13, 2024; extended term by one year to March 15, 2025
Currently, there is $300,000 remaining on the contract. If approved, Amendment No. 4 will increase compensation by $1,600,000 for a revised not to exceed amount of $4,300,000 and extend the term by one year to allow the City to continue to meet the fencing needs for various departments to the term date of March 15, 2026.
FISCAL IMPACT:
Funding for this work will be from a variety of sources including General Fund, Refuse, Water, Park Improvement and Capital Outlay. The various departments that use this contractor all have sufficient budgeted amounts and additional General Funds are not required at this time.
COUNCIL GOAL:
Reliable Infrastructure
ATTACHMENTS:
Signed Amendment