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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JULY 3, 2006 <br />TITLE: <br />CONTRACT RENEWAL FOR <br />ASPHALT CONCRETE MATERIALS <br />(SPEC. NO. 05-066) <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />^ As Recommended <br />^ As Amended <br />^ Ordinance on 1~' Reading <br />^ Ordinance on 2ntl Reading <br />^ Implementing Resolution <br />^ Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />Renew the contract with Vulcan Materials Co. for asphalt concrete materials <br />for a one-year period in an annual amount not to exceed $100,000. <br />The Public Works Agency performs a variety of maintenance and repairs on <br />the City's water systems and streets. As such, the Public Works Agency <br />requires an assortment of road materials. Asphalt concrete is the <br />principal component utilized when repairing any asphalted surface. <br />On July 18, 2005, the City Council awarded a contract to Vulcan Materials <br />Co., a Santa Ana vendor, for a one-year period with provision for three, <br />one-year renewals. The vendor has agreed to renew the contract; however, <br />the vendor has requested a 63 percent increase due to the rising costs of <br />petroleum based products, which is commensurate with the increase in the <br />City's fuel costs. Vulcan Materials Co. can only offer fixed contract <br />pricing for six months. The vendor is requesting an additional $5.00 <br />increase on all contract items, following the initial six-month contract <br />term. The vendor has performed satisfactorily during the past contract <br />period, and staff recommends the first renewal of the contract. <br />FISCAL IMPACT <br />Funds are available in the various departmental Operating Materials & <br />Supplies accounts (object code 6391). The amount of the contract is <br />estimat d, as the actual expenditures will depend upon the requirements <br />throug~ut th~iannual period. <br />r / /~ APPROVED AS TO FUNDS AND ACCOUNTS: <br />JaJ~ G. 5~ Francisco Gutierrez ~~ <br />Executive Di ctor Executive Director <br />Public Works Agency Finance & Mgmt. Services Agency <br />JGR/WO/OS-066R.9:uc ~ ~~ ~~ <br />