ADMINISTRATIVE REPORT
MEETING DATE: August 27, 2025 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Randy McKeegan, Finance Director
DATE: August 13, 2025
SUBJECT: Amendment No. 4 to Agreement No. 2021-212 with Kern Asphalt Paving & Sealing Co. Inc. (extend term one year) to continue the supply of Oil Transport & Spreading Services.
RECOMMENDATION:
Staff recommends approval of the amendment.
BACKGROUND:
On September 1, 2021, the City Council approved the annual contract for Oil Transport & Spreading Services with Kern Asphalt Paving & Sealing, in the amount of $264,000; renewable annually thereafter for four consecutive one-year periods.
Per the terms of the contract, one amendment increasing the contract and/or extending the contract has been approved as follows:
• Amendment 1 approved August 31, 2022; extended term only to September 1, 2023. • Amendment 2 approved August 23, 2023; extended term only to September 1, 2024. • Amendment 3 approved August 28, 2024; extended term only to September 1, 2025.
This contract is utilized exclusively by the Public Works Department, Streets Division for oil transporting and spreading services only. Sealing material PMCQS1H, Topein C Ready to Spray 50/50 dilution, and CSS- 1H asphaltic emulsion is currently provided by the City under a separate contract.
Currently there is approximately $215,000 available on this contract. If approved, Amendment No. 4 will extend the term by one year allowing the continuance of oil transporting and spreading services. No additional funds will be needed at this time.
FISCAL IMPACT:
Funds are budgeted in various funds including, but not limited to, Capital Outlay Fund, Gas Tax Fund, and Utilities Surcharge Fund.
COUNCIL GOAL:
Reliable Infrastructure
ATTACHMENTS:
Amendment No. 4