Title
Resolution to Approve Change Order No. 1 to the FY26 Renewal of the Pavement Marking Maintenance Contract with P.K. Contracting, LLC ($299,390.00 increase; $804,577.50 Total Contract, RFP No. 24-45)
Memorandum
Attached for your consideration is a resolution to approve a change order to the 2026 renewal construction contract with P.K. Contracting, LLC for Pavement Marking Maintenance - FY25 (RFP No. 24-45). The change order increase totals $299,390.00 and, if approved, would result in a total contract renewal amount of $804,577.50.
Contract Background
Engineering staff solicited proposals for the Pavement Marking Maintenance Program through the City’s Procurement Unit and received proposals on September 11, 2024.
The original construction contract with P.K. Contracting (RFP 24-45) was approved by City Council on November 7, 2024, in the amount of $505,187.50 for the maintenance of existing pavement markings throughout the City (R-24-412, File #: 24-1721).
RFP 24-45 included language that, if both the City and awarded Contractor agree, the contract could be renewed for a one (1) year period, subject to the availability of funding, with unit pricing remaining the same as the original FY25 bid and contract.
Both the City and Contractor agreed to the original terms outlined in the FY25 contract and moved forward with the option to extend this contract for a one-year period in October 2025 with the authorization of the City Administrator. The existing contract extension is valid through October of 2026, however additional funding is now available in FY27, and it is desirable to add that funding to this existing contract to take advantage of the established unit pricing.
2026 Program Responsibilities
The 2026 Pavement Marking Maintenance Program consists of citywide replacement of various types of markings utilizing a variety of materials both on Major and Local streets. Operationally, these pavement marking improvements aim to enhance the safety of all users on the City’s motorized and non-motorized transportation networks.
Staff expect the additional contracted work to begin in July 2026 and be completed by October 14, 2026.
Budget/Fiscal Impact: Change Order No. 1 authorizes $299,390.00 of additional funding for a total contract amount of $804,577.50. The additional funding is sourced from the approved FY 2027 Public Services Area, Major Street, Local Street, and Alternative Transportation Funds Operation and Maintenance Budgets. Of the $328,850.00 in available funding, $29,460.00 will be set aside for staff time and other soft costs.
Estimated revenue for the project comes from the following sources:
|
Revenue Source |
Amount |
|
FY 2027 Major Street Fund |
$ 205,500.00 |
|
FY 2027 Local Street Fund |
$ 74,250.00 |
|
FY 2027 Alternative Transportation Fund |
$ 49,100.00 |
|
Total |
$ 328,850.00 |
Staff
Prepared by: Nicholas Hutchinson, P.E., City Engineer
Reviewed by: Jordan Roberts, Public Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, It is appropriate to replace pavement markings throughout the City to help maintain a safe environment on the City’s roadways;
Whereas, The original construction contract with P.K. Contracting, LLC., (RFP 24-45) received council approval on November 7, 2024 (R-24-412, File #: 24-1721);
Whereas, Under the terms of the Contract, the Contract has been extended for a one-year period in the original amount using the existing FY25 bid and contract unit pricing;
Whereas, it is desirable to add available FY27 funding to the existing contract extension to utilize unit pricing established in FY25.
Whereas, Funding for maintaining additional pavement markings on Major Streets is available in the approved FY 2027 Public Services Area, Major Street, Local Street, and Alternative Transportation Funds Operation and Maintenance Budgets;
Whereas, The existing approved contingency amount $50,000.00 is insufficient to cover the Change Order No. 1; and
Whereas, P.K. Contracting, LLC complies with the requirements of the City’s Non-Discrimination and Living Wage ordinances;
RESOLVED, That City Council approves Change Order No. 1 to the construction contract with P.K. Contracting, LLC. in the amount of $299,390.00 for work to be completed in FY2027;
RESOLVED, That a contingency in the amount of $85,000.00 be established within the project budget, and that the City Administrator be authorized to approve additional change orders not to exceed that amount to satisfactorily complete the project; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution including approval of needed Traffic Control Orders, night work authorizations, and other similar administrative approvals to allow the work of the project to proceed without delay.