Rancho Palos Verdes City Council
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TO:

TO: HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL

FROM: DIRECTOR OF PUBLIC WORKS

DATE: JUNE 3, 2003

SUBJECT: ROADWAY MAINTENANCE CONTRACT FOR FY 2003-04, 04-05, 05-06

RECOMMENDATIONS

  1. Award a contract for Roadway Maintenance Services for Fiscal Years 2003 – 04, 2004 – 05, and 2005 –06 to Hardy and Harper Inc., and authorize the Mayor and City Clerk to execute a contract.
  2. Authorize the expenditure of up to $ 450,000 for this Roadway Maintenance contract for Fiscal Year FY 03 -04

BACKGROUND

The City of Rancho Palos Verdes utilizes contract services for roadway maintenance services. The contract is one of the city’s significant contracts in terms of both contract amount and scope of services. Some of the services included in this contract are:

  • Patching Potholes
  • Maintenance and periodic paving of Palos Verdes Drive South within the landslide area.
  • Storm drain maintenance
  • Sign maintenance
  • Guardrail Maintenance

A contract for these services was last advertised and awarded in 1997. In April of this year, a new contract was prepared and advertised. A pre bid meeting was held on May 5, 2003 and bids were opened on May 15, 2003.

DISCUSSION

The bid results are as follows:

Contractor

Amount of bid

Hardy and Harper Inc.

$ 373,800

Shawnan

$ 394,800

Terra Pave Inc.

$ 406,980

Excel Paving Company

$ 446,500

Some of the key provisions of this contract are as follows:

  • This contract establishes fixed unit prices for an estimated scope of services.
  • Unit prices are fixed for the first year, with an increase each July 1, 2003 thereafter, in accordance with the Producer Price Index.
  • The term of the contract is three years, with an option for three one-year extensions
  • The City may terminate this contract at any time with a thirty day written notice.

The apparent low bidder, Hardy and Harper Inc. is currently providing these services to the City. Staff is very pleased with their performance and believes that their familiarity with the city’s geography, staff, and procedures will result in efficiencies and savings beyond that of the difference in bid amount.

CONCLUSION

Adopting the staff recommendations will result in the award of a three-year contract for street maintenance services to Hardy and Harper Inc.

ALTERNATIVE ACTION

Request staff to re-advertise this contract to receive additional bids. Staff does not believe that re-advertising will result in additional bidders or lower prices.

FISCAL IMPACT

The authorized expenditure limit of $450,000 is included in the baseline FY 03 – 04 budget.

 

Respectfully Submitted,

Dean E. Allison

Director of Public Works

Reviewed,

Les Evans

City Manager

 

Attachment:

Contract