ADMINISTRATIVE REPORT
MEETING DATE: August 13, 2025 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Randy McKeegan, Finance Director
DATE: August 6, 2025
SUBJECT: Amendment No. 4 to Agreement No. 2023-238 with Cen-Cal Construction (increase by $2,500,000; revised not to exceed $6,571,500) to continue the supply of concrete construction.
RECOMMENDATION:
Staff recommend approval of the amendment.
BACKGROUND:
On September 27, 2023, the City Council approved the annual contract for the supply of concrete construction with J. L. Plank, Inc., dba Cen -Cal Construction, in the amount of $1,511,500; renewable annually thereafter for four consecutive one-year periods.
This contract is on -call as needed, used by multiple departments within the City, including Water Resources Department, Fire Department, Recreation and Parks Department, and Public Works Department.
Per the terms of the contract, two (2) amendments to increase the contract and/or to extend the contract have been approved as follows:
Amendment 1 approved September 11, 2024; increased compensation by $1,560,000 for a revised not to exceed amount of $3,071,500 and extended the term by one year to September 26, 2025.
Amendment 2 approved April 9, 2025; increased compensation by $500,000 for a revised not to exceed amount of $3,571,500.
Amendment 3 approved June 11, 2025; increased compensation by $500,000 for a revised not to exceed amount of $4,071,500.
Per the bid specifications, t he City may exercise the option to extend the term of the agreement with price adjustments determined by a combined evaluation of labor cost increases based on applicable w ork classifications published by the California Department of Industrial Relations for Kern County as well as changes in material and overhead costs, as reflected in the U.S. Department of Labor's Producer Price Index (PPI). J.L.
Plank, Inc., dba Cen -Cal Construction, has proposed a 2.7% increase to their bid price, which is below the combined increase indicated by the most recent PPI data and labor cost adjustments from the State of California.
Increased demand for concrete construction, along with requir ements for ADA compliance, has significantly raised the level of contract usage. If approved, Amendment No. 4 will increase the contract compensation by $2,500,000, bringing the total not-to-exceed amount to $6,571,500 allowing the City to continue address ing concrete construction needs through the contract’s term ending September 26, 2026.
FISCAL IMPACT:
Sufficient funds are budgeted in the various departments Enterprise Funds, Capital Projects Funds as well as General Fund operating accounts.
COUNCIL GOAL:
Reliable Infrastructure
ATTACHMENTS:
1. Agreement