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BACKGROUND It is not always practical or cost effective for City staff to perform certain maintenance functions that are essential to keep the City in good operating order. Out-sourcing certain services and contracting with specific trades has proven to be a cost-effective solution when cost assessments determine that the work can be provided at a lower rate by contractors and in some cases where City staff does not have specific trade expertise. The City funds these services through its operating budget for miscellaneous repairs from outside contractors when City staff cannot perform the work. As part of the bid process, all "As-Needed" contractors provided rates, product markup amounts and their Department of Industrial Relations (DIR) number. In addition, as a condition of the Agreement, each contractor will provide the required certificates of insurance and a City of Pleasanton business license number. This process allows staff to authorize the work and to have it completed in a much timelier manner then formally bidding each small project. For all projects over $25,000, staff will solicit multiple proposals from vendors in that specific trade to obtain the best possible price by the most qualified contractor. On June 6, 2017, City Council authorized the City Manager to enter into an Agreement with each vendor listed below for "As-Needed" services for a twelve-month period starting July 1, 2017 with a cumulative spending authority of$1,000,000 for all As- Needed contracts with the option to request additional spending authority by Council action. On June 5, 2018, City Council authorized the City Manager to amend the Agreement for all As-Needed contracts for an additional year through June 30, 2019 and allow for Prevailing Wage and/or Engineer News Records Construction Cost Index for the Northern California region rate changes. DISCUSSION The Agreements commenced on July 1, 2017 and will expire on June 30, 2019. Operations Services is requesting to increase the cumulative value to $1,565,000 to be able to carry out all existing work, all planned projects and any incidental work for the remainder of this fiscal year. As of February 19, 2019, the total amount spent this fiscal year on all as-needed contracts is $848,275.73. Operations Services estimated remaining expenditures of approximately $565,000 for the fiscal year for as-needed services throughout the city. The flexibility and fiscal responsibility this change affords is necessary due to the unexpected nature of as-needed services. Below is a listing of the contractors by trade specialty with the amount spent per contractor as of February 19, 2019. Page 2 of 4