CITY OF SAN MATEO
CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 14 Section Name: {{section.name}} Account Number: 10-4651 File ID: {{item.tracking_number}} TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: November 18, 2024
SUBJECT:
Contracts with Contingency Component – Update
RECOMMENDATION:
Receive a report on contingency fund expenditures for City contracts for the period from August 1, 2017, through June 30, 2024.
BACKGROUND:
When presenting contracts to City Council for an award, staff may request approval of contingency funds and authorization to approve additional work or issue change orders up to the contingency amount. The contingency amount generally amounts to 10 percent of the total contract but is sometimes higher depending on the type of project and associated risks. This approach provides flexibility and efficiency to reasonably adjust cost or scope, allowing projects to continue without returning to the City Council to approve change orders. The current report shows all active contracts Citywide with contingencies greater than $25,000 awarded from August 1, 2017, through June 30, 2024. Below is a summary table of active agreements by Department:
Department/Division Current Approved
Agreement Amount
Contingency
Budget
Contingency
Used
Percentage of
Contingency Used
Clean Water Program $593,012,141.69 $56,738,979.00 $38,651,604.06 68% Facilities $7,674,276.85 $1,194,000.00 $525,817.32 44% Parks & Recreation $2,772,792.50 $366,099.08 $ - 0% Police $475,534.44 $62,000.00 $ - 0%
Public Works Capital Projects $41,977,653.05 $3,810,353.40 $458,349.49 12% Grand Total $645,912,398.53 $62,171,431.48 $39,635,770.87 64% This report also includes an attachment showing completed projects with contingencies from this same period. The City’s practice has been to provide these updates approximately three times annually; however, due to staffing capacity challenges, the last update was conducted on June 20, 2022. These updates were temporarily paused and are now resuming and will be presented to Council on an annual basis after the close of the fiscal year.
BUDGET IMPACT:
As this is an update on previously awarded contracts, there is no budget impact. Sufficient funds have been allocated to each contract, including the contingency amounts.
CITY OF SAN MATEO
ENVIRONMENTAL DETERMINATION:
This informational update is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 - Contingency Funding Status Worksheet
Att 2 - Completed Projects with Contingency
STAFF CONTACT
Alonso Barahona, Management Analyst II
[email protected]
(650) 522-7334
Jamie Perez, Business Manager
[email protected]
(650) 522-7243