REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
June 2, 2020
FROM
BRENDON BIGGS, Interim Director, Department of Public Works - Transportation
SUBJECT
Title
Amendment to Contract with W.M. Kanayan Construction, Inc.
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 1 to Contract No. 17-573 with W.M. Kanayan Construction, Inc. increasing the contract amount by $750,000 from $750,000 to $1,500,000 for heavy equipment rental services, with no other changes to the contract period of July 1, 2017 through June 30, 2022.
(Presenter: Brendon Biggs, Interim Director, 387-7906)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will not result in the use of additional Discretionary General Funding (Net County Cost). Projects utilizing the heavy equipment rental services contracts include pavement improvement, preservation, and other routine maintenance projects. These projects are funded by Discretionary General Funds (allocated), Gas Tax, SB 1 Funding, Measure I, and other Federal, State and local funding. Annual expenditures will be based on planned road maintenance projects. Sufficient appropriation is included in the 2019-20 Road Operations Budget (6650002000) and will be included in future recommended budgets.
BACKGROUND INFORMATION
An increase in the total contract amount for Contract No. 17-573 with W.M. Kanayan Construction, Inc. (W.M. Kanayan) will allow the County to continue to receive bids from this vendor for heavy equipment rental services to be used on routine road maintenance projects, public projects not exceeding the amount identified in Public Contract Code section 22032(a), and emergency road projects (following applicable provisions of the Public Contract Code). This amendment will allow the County to continue to utilize this contractor for up to an additional $750,000 for specific projects on an as-needed basis, with no change to the term of the contract. Having a list of readily accessible pre-qualified vendors available for heavy equipment rental services provides good value to the County and aligns with the County and Chief Executive Officer’s goals to provide for the safety of County residents and to operate in a fiscally-responsible and business-like manner.
On June 27, 2017 (Item No. 87), the Board of Supervisors (Board) approved contracts with 33 vendors to be on the County’s on-call heavy equipment rental services list. This item included the contract with William Kanayan, the predecessor to W.M. Kanayan Construction, Inc., as part of this list. The contract with W.M. Kanayan is in an amount not-to-exceed $750,000 (Contract 17-573). Expenditures for Contract No. 17-573 with W.M. Kanayan are reaching the not-to-exceed amount of $750,000 due to W.M. Kanayan frequently being the lowest bidder on various paving projects and emergency call outs.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Suzanne Bryant, Deputy County Counsel, 387-5455) on April 27, 2020; Finance (Jessica Trillo, Administrative Analyst, 387-4222) on May 12, 2020; and County Finance and Administration (Matthew Erickson, County Chief Financial Officer, 387-5423) on May 17, 2020.