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<br />6.10 <br />Pa e 1 <br /> <br />R:E~PO:;RT . <br /> <br /> <br />July 26, 2010 <br /> <br />SUBJECT <br />Amendment No. 1 to the 2009-2010 Tree Preservation and Sidewalk Replacement <br />Project Agreement with Spencon Construction, Inc. <br /> <br />RECOMMENDATION <br />By motion approve Amendment No.1 to the 2009-2010 Tree Preservation and Sidewalk <br />Replacement Project Agreement with Spencon Construction, Inc. in the amount of <br />$500,000, and authorize the City Manager to increase the contract amount, if <br />necessary, up to ten percent of the amount awarded. <br /> <br />BACKGROUND <br />On June 15, 2009, the contract was awarded to Spencon Construction, Inc. of Danville, <br />CA in the amount of $712,920 for the 2009..2010 Tree Preservation and Sidewalk <br />Replacement Project (Minute Order 09-113). The project received .final acceptance by <br />the City Council on May 24, 2010. Contract language in the Agreement allowed for up <br />to four consecutive one-year extensions with a maximum yearly increase of five <br />percent. This amendment includes an increase of only 1.33 percent for each of the <br />individual unit prices. The total contract amount of this amendment is less than last <br />years contract amount due to less available funding. This is the first Amendment to <br />extend the contract for a one-year period. With this Amendment the total aggregate <br />Agreement amount shall not exceed $1,212,920. The contractor has performed their <br />work to accepted industry standards and staff is confident they will continue to perform <br />work in compliance with accepted industry standards. The project location is the <br />neighborhood bounded by Alameda de las Pulgas to the east, McGarvey Avenue to the <br />south, Farm Hill Boulevard to the west and Jefferson Avenue to the north. <br /> <br />AL lERNA liVES <br />Do not permit the Amendment to the Agreement and direct staff to re-bid the entire <br />project. Staff does not believe that re-bidding the project will result in significant cost <br />changes. <br /> <br />FISCAL IMPACT <br />Funds totaling $985,000 are available in the FY 2010-2011 Capital Improvement <br />Program Tree Preservation and Sidewalk Repair Program. Additional funds in the <br />amount of $113,000 are available in the Traffic Mitigation Fees Fund, Americans with <br />Disabilities Act Ramp Project to allow for the installation of curb ramps which are <br />installed at corners of street intersections in the project area. These amounts support <br />staff costs associated with managing the project as well as the cost of the two projects <br />funded by this program: the Cost Shared Sidewalk Repair Project and the Tree <br />Preservation and Sidewalk Repair Program. <br />