Title
Approval of a Contract Amendment and Issuance of Purchase Orders for Limerock (NB)
Explanation
Limerock is used by the Wastewater Collection and Water Distribution Divisions as a base course for roadway construction. The Vegetation Management division utilizes limerock for right-of-way access roads. Other GRU operating departments and plants require limerock for various projects and/or processes.
The City Commission approved the award of a contract to Limerock Industries, Inc. on September 24, 2001 for a three year period. The contract allowed for two (2) twelve-month extensions of the contract based upon mutual agreement of the parties and negotiation of the contract prices. The parties entered into an Amendment to the Contract on October 1, 2004, extending the term through September 30, 2005. Limerock Industries, Inc. has agreed to extend the contract for an additional twelve months with a 10% increase based on increased fuel prices, which has directly impacted the company’s operational and hauling costs. This extension represents the last of the two available under this contract.
Limerock Industries, Inc. provides excellent service and the pricing remains competitive for the market and the requested increase is in line with the Producer Price Index for the past twelve months. Therefore, staff does not believe there would be any cost benefit gained by rebidding the contract at this time.
Recommendations
The City Commission authorize the General Manager or his designee to execute an amendment to extend the contract with Limerock Industries, Inc. for limerock for a one-year period and approve the issuance of purchase orders for FY 2006, not exceeding budgeted amounts and subject to the final appropriation of funds for FY 2006.
Fiscal Note
Funding for these services is included in the Proposed Operation and Maintenance portion of the FY 2006 budget.
Drafter
Prepared by: David M. Richardson, AGM for Water & Wastewater Systems
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