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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JULY 7, 2008 TITLE: CONTRACT RENEWAL FOR ASPHALT CONCRETE MATERIALS (SPEC. NO. 05-066) CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1St Reading ^ Ordinance on 2"d Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER Renew the contract with Vulcan Materials Co. for asphalt concrete materials for a one-year period in an annual amount not to exceed $90,000. DISCUSSION The Public Works Agency performs a variety of maintenance and repairs on the City's water and sewer systems. Tasks include mainline leak repairs to the city's 450-mile water main system, repairs and/or replacements of the 47,000 water services, and repairs and/or replacements of the estimated 44,000 sewer laterals. As such, trench cuts are required in order to perform these repairs. The Water Resources Division requires temporary asphalt concrete mix to perform trench repairs in asphalt concrete streets. Permanent asphalt concrete trench resurfacing is provided under a separate contract administered by the Maintenance Services Division. On July 18, 2005, the City Council awarded a contract to Vulcan Materials Co., a Santa Ana vendor, for a one-year period with provision for three, one-year renewals. The vendor has agreed to renew the contract; however, the vendor has requested a 21 percent increase due to the rising costs of petroleum-based products. In addition, Vulcan Materials Co. can only offer fixed contract pricing for six months. Following the initial six months of the contract, the vendor is requesting an additional $2.00 increase on all contract items. Staff verified that the price increase is consistent with the market and that Vulcan continues to offer the best price to the City. The vendor has performed satisfactorily during the past contract period, and staff recommends the final renewal of the contract. 22B-1