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Item 4CAGENDA ITEM # 4C SEPTEMBER 10, 2007 CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM: Extension of Annual Utility Contractor -Service Contract Bid No. 0506-16 SUBMITTED BY: Donna Kaluzniak, Utility Director Rick Carper, P.E., Public Works Director DATE: August 28, 2007 BACKGROUND: On October 9, 2006 bids were opened for the City's contract for Annual Utility Contractor for underground utility work in the water, sewer and stormwater system. The low bidder was Gruhn May, Inc. They successfully met all bid requirements. Gnihn May, Inc. has performed point repair work for the City for many years. Gruhn May's personnel have the required background, knowledge, experience and equipment to perform the necessary work. The fees charged by Gruhn May, Inc. for labor and materials have been very reasonable and competitive. City has spoken to Gruhn May, Inc. regazding an extension of their contract for one yeaz at the current rates and they have agreed. As per Bid No. 0506-16: "The City reserves the right to renew the contract for two additional one-year periods pending a mutual agreement between the City and the vendor, and a review of the contract performance by vendor for the previous year." The vendor has agreed to renew his contract, and staff has been pleased with the performance of this contractor. BUDGET: These services are used on an as-needed basis, and funding is included in the Water, Sewer and Stormwater Funds in the amount of approximately $140,000 under account numbers 400- 5502-533-3400, 400-5504-533-3400, 410-5506-535-3400, 410-5508-535-3400, and 470-0000-538- 3400. RECOMMENDATION: Extend the Annual Utility Contractor contract for one additional yeaz to Gruhn May, Inc. at the contract prices. ATTACHMENTS: 1. Letter of agreement to extend contract from Gruhn May, Inc. REVIEWED BY CITY MANAGER: AGENDA ITEM # 4C FROM :Gruhn Mdy,tnc FAX N0. :9042680679 Sep. 0A 2007 1 SEPTEMBER 10, 2007 CITY of ATLANTIC QEAtai DEAAKfMISV'['~pUBLK; WORKS 1200 SANDPIPER LANE ATLANTIC BEACH, F1.URIbA 32x33-431 B TIiI-EPHQN$; (904) 247-563A nAx: t9o4) 247.3843 suNCOZ,~; asa-sa34 www.coxe.us Aught 2K, 2007 FAX: 268-0679 Air, Gordon Gnthn Gruhn stay, >~~. RE: Extension oFF)id Nu. OSQb-lb Deer Mr. Cirvbn: As You are aware, the annual ccmtract with the City oFAtlantic ficach for Annual Co11ua<x -Utility Contractor expires October 9, 2007. We would like Ga extcrxd the ~~ortttnlct Par urtulhcr year at tha cumml prices, if this is acceptable w your eampany. if acceptable, please sign blow and return to me by August 31, 21107, su 1 can prepare a sb-ff report f~ the City C:ommi98ipn, We look forward to recx~mmending that we contiauc our contract with your company. Sincerely, na iCal zniak Utility Director l:RUHN MAY, INC. AGREiR.ti TQ g~(TF,Np THE CONTM~tACT W[TH TH>~ C1TY OF ATLAIV't1C REACH AT THE PRICES SiUBMil7'CLD Clct Bln NO.OgOb-ib FOR AN ADDITIONAL YEAR LFFECTIV>F: f1G'T(1sER lQ 3N17. ~__1 (~afer.e., u r2, ~~C .