REPORT TO COUNCIL
SUBJECT
Title
Action on Amendment No. 1 to Agreements with C2R Engineering, Inc., Golden Bay Construction, Inc., O'Grady Paving, Inc., A Teichert & Son, Inc., and West Valley Construction Company, Inc. for As-Needed Asphalt Repair Services to Remove the Annual Compensation Limit Subject to the Previously Authorized Maximum Amount of $10,400,000
Report
BACKGROUND
On July 15, 2025, pursuant to Section 2.105.140(c) of the Santa Clara City Code, the City Council authorized the City Manager to execute an agreement with C2R Engineering, Inc. for as-needed asphalt repair services (RTC #25-709). In addition, the City Council authorized the City Manager to execute additional agreements for as-needed asphalt repair services. Subsequently, staff entered into four additional agreements with Golden Bay Construction, Inc., O'Grady Paving, Inc., A Teichert & Son, Inc., and West Valley Construction Company, Inc.
These agreements support the Water & Sewer Utilities Department's water main replacement program and unplanned emergency utility repairs.
The authorization included an aggregate maximum compensation across all as-needed asphalt repair agreements of $10,400,000, consisting of $10,000,000 for planned water main replacement work and $400,000 for emergency repairs. The agreements also include an annual compensation limit of $2,000,000 per fiscal year for planned water main replacement work. This limit was intended to align with anticipated annual expenditures and to provide a structured approach for managing contract activity across multiple firms.
DISCUSSION
Since implementation of the agreements, staff have identified operational challenges associated with the annual $2,000,000 compensation limit. Asphalt restoration needs fluctuate based on project timing and construction sequencing, and the annual cap limits staff's ability to schedule and complete work within the required timeframe.
In practice, pavement restoration needs may exceed the annual ...
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