ADMINISTRATIVE REPORT
MEETING DATE: June 10, 2026 AGENDA CATEGORY: Consent – Agreements TO: Honorable Mayor and City Council
FROM: Randy McKeegan
DATE: May 21, 2026
SUBJECT: Amendment No. 1 to Agreement No. 2025-094 with Granite Construction Company (incorporate approved contract price increase of five percent (5%), increase compensation by $6,400,000; revised not to exceed $17,400,000 and extend the term by one year) to continue the supply of street materials.
RECOMMENDATION:
Staff recommend approval of the amendment.
BACKGROUND:
On June 11, 2025, the City Council approved the annual contract for the supply of street materials with Granite Construction Company, in the amount of $11,000,000; renewable annually thereafter for four consecutive one -year periods. The City may exercise t he option to allow price adjustments based on fluctuations in fuel prices, labor expenses and other market -driven operational cost increases in accordance with the original bid specifications. This contract is primarily utilized by the Streets Division within the Public Works Department.
Granite Construction Company has agreed to extend its bid pricing with a five percent (5%) contract price increase, consistent with increases in fuel cost, labor expenses and other market-driven operational cost.
Staff have previously reviewed and approved the request in full accordance with the terms and conditions of the original bid specifications.
Staff recommend approval of Amendment No. 1 to incorporate a five percent (5%) increase to the contract price, extend the contract term by one year, and increase total compensation by $6,400,000 to allow the continued supply of street materials through June 10, 2027.
FISCAL IMPACT:
Funds are budgeted in the Capital Outlay and General Fund for this contract.
COUNCIL GOAL:
Reliable Infrastructure
ATTACHMENTS:
1. Amendment No. 1 to Agreement No. 2025-094
2. EXHIBIT A