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Agenda Item 4BCITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM: Extension of Utility Contractor Annual Contract Bid No. 1011 -02 SUBMITTED BY: Donna Kaluzniak, Utility Directo DATE: November 4, 2013 STRATEGIC PLAN LINK: None BACKGROUND: The City's annual contract with Gruhn May, Inc. for Utility Contractor will expire on January 10, 2014. AGENDA ITEM # 4B DECEMBER 9, 2013 Gruhn May has performed utility contracting for the City for many years. This work requires specialized skill, experience and equipment. Gruhn May's personnel have the required background, knowledge, experience and equipment. The fees charged by Gruhn May for labor and materials have been very reasonable and competitive. Also, their knowledge of our system has allowed them to come up with cost - saving solutions to problems and to handle emergencies efficiently. The existing contract was for three years, and allows the City to renew the contract for two additional 1 -year periods as long as the contractor agrees and the City is satisfied with the service. 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 and Sewer Funds in the amount of approximately $85,000 under account numbers 400 - 5504 -533 -3400, 410 - 5506 -535 -3400, and 410 - 5508 -535 -3400. RECOMMENDATION: Extend the Utility Contractor contract for one additional year to Gruhn May, Inc. at the current contract prices, effective January 11, 2013. ATTACHMENTS: 1. Letter of agreement to extend contract from Gruhn May, Inc. REVIEWED BY CITY MA November 4, 2013 Mr. Gordan Gruhn Gruhn May, Inc, 6897 Phillips Parkway Dr. N. Jacksonville, FL 32266 RE: Extension of Bid No, 1011-02 Dear Mr, Gruhn: AGENDA 1TEM !! 413 DECi:M13G[t 9, 2013 As you are aware, the annual contract with the City of Atlantic Beach for Utility Contractor expires on January 10, 2014. We would like to extend the contract for another year at the current prices if this is acceptable to your company. If acceptable. please sign below and return to me by November 11, 2013 so I can prepare a staff report for the City Commission. We look forward to recommending that we continue our contract with your company. Sincerely, Donna Kaluxnial CEP Utility Director GRUHH MAY, INC. AGREES TO EXTEND THE CONTRACT WITH THE CITY OF ATLANTIC BEACH AT THE PRICES SUBMITTED IN BID NO. 1011 -02 FOR AN ADDITIONAL YEAR, EFFECTIVE JANUARY 11, 014. Gordon Gruhn Public Utilities Department Jam' /3 at 1200 Sandpiper Lane Atlantic Beach, FL 32233 (904) 247 -5834