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Committee approves $542,187.50 amendment to on-call water utility contract with AAC Construction LLC
Summary
The committee approved Amendment No. 1 to the city’s on-call water utility construction and repair price agreement with AAC Construction, LLC, increasing compensation by $542,187.50 to a new total of $1,806,562.50 (including gross receipts tax).
The Finance Committee approved Amendment Number 1 to price agreement item number 201-378 with AAC Construction, LLC, to increase compensation by $542,187.50 to a new total of $1,806,562.50 (including New Mexico gross receipts tax) for an on-call citywide water utility construction and repair contract.
Councilor Lindell, who pulled the item from consent, asked whether the city performs spot market comparisons for the many line items that appear in these on-call contracts. Lindell said she wanted assurance the city is not overpaying for routine items and suggested spot-checking several bid-line items against market pricing. The city’s procurement representative responded that the contract and its bid items were competitively bid about four years ago and that emergency response work is billed differently than pre-priced work: contractors are called for main breaks and then bill based on repair work performed, rather than a fixed-per-item schedule.
Motion to approve the amendment passed on a committee roll call. The committee did not specify a detailed per-line market audit as part of the approval; Lindell’s request for spot-market comparisons was recorded as a substantive question for staff.
Ending: The amendment was approved; staff may follow up on pricing and reporting questions raised by Councilor Lindell.
