HomeMy WebLinkAbout22E - SPEC - CHANGE ORDER ASPHALTREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
JUNE 6, 2011
TITLE:
CHANGE ORDER FOR ASPHALT
STREET MAINTENANCE CONTRACT
(SPEC. NO. 10-039)
CITY MANAGER
RECOMMENDED ACTION
CONTINUED TO
FILE NUMBER
Approve the attached change order to the contract with All American Asphalt for asphalt street
maintenance.
DISCUSSION
On November 15, 2010, the City Council awarded a contract for asphalt street maintenance to All
American Asphalt for a one-year period with provision for three one-year renewals in an amount
not to exceed $580,000 annually. The services provided under this contract are on an as-
needed/on-call basis and the annual amount was budgeted based on staff's projection of asphalt
street maintenance for the next year. The services are essential to the City's effort to maintain its
roadways and include the excavation and cold milling of existing roadways, construction of cement
and asphalt pavements and crack sealing. A main portion of the contract provides asphalt
concrete for water and sewer utility repairs and the adjustment of water valve boxes and manhole
frames and covers to grade.
To evaluate costs, vendors provided quotations based on various line items and estimated
quantities in the specifications. Bids were opened on October 11, 2010, where All American
Asphalt was established as the lowest bidder. A few weeks after the contractor commenced work,
they determined that they were operating at a loss and could not sustain working at the quoted
rate. In February, All American Asphalt contacted the City and requested a pricing change to Line
Item No. 12 of the specifications which is for asphalt concrete for utility service patches at various
locations with an estimated quantity of 1,000 tons. All American interpreted and bid the line item
for tonnage in excess of 1,000 tons per service patch, resulting in a low bid of $80.00 per ton and
consequently, unsustainable losses. The City intended the line item to cover service patches for
lower unit amounts, typically one to five tons, and citywide, with a total of all patches approximating
1,000 tons. As a result of the misinterpretation All American is requesting an increase to $287 per
ton to this line item to cover their operating costs.
CLERK OF COUNCIL USE ONLY:
APPROVED
? As Recommended
? As Amended
? Ordinance on 15' Reading
? Ordinance on 2" Reading
? Implementing Resolution
? Set Public Hearing For
22E-1
Change Order for Asphalt
Street Maintenance Contract
June 6, 2011
Page 2
Staff evaluated this request by performing research and inquiries of the two other bids received
and the previous contract. The second place bidder, Elite Bobcat Services, quoted the same line
item at $75 and indicated that they had incorrectly bid and would not be able to work at that rate.
The third place bid was $320 per ton, from Hardy and Harper, who at that time held the Asphalt
Street Maintenance Contract. Prior to this bid, Hardy and Harper had maintained a bid price of
$285 per ton for four years without an increase.
When considering this information, recent increases in asphalt costs and public works contract
arbitration awards that favor the contractor, staff has concluded that $287 per ton is a fair and
competitive price for this service. This change will also maintain the total bid price amount below
the two other bids received. As an as-needed maintenance service contract, the contract amount
of $580,000 will not change as this service is provided only to the extent funds are available.
FISCAL IMPACT
Funds are available in the Public Works Agency Water System Maintenance and Sanitary Sewer
Service programs (accounting units 06017641-62300 and 05617640-62300).
APPROVED AS TO FUNDS AND ACCOUNT:
r
Raul Godinez II
Executive Direct r
Public Works Agency
RG/PG
Exhibit: Change Order No. 1
"IV
Francisco Gutierrez
Executive Director
Finance & Mgmt. Services Agency
22E-2
CHANGE ORDER NO 1;
ANNUAL ASPHALT STREET MAINTENANCE SPECIFICAITON 10-039
CONTRACTOR: All American Asphalt
P.O. Box 2229
Corona, CA 92878
PROJECT DESCRIPTION: Annual Asphalt Street Maintenance - Citywide (On-Call)
CHANGE ORDER NUMBER:1 ESTIMATED AMOUNT: $0.00
ACCOUNT UNITS: 05617640 and 06017641 ACCOUNT: 62300
ORIGINAL CONTRACT COST: $580,000
Item # Bid Item Unit Quantity Unit Price
12. Asphalt Concrete for utility service patches at TN 4,0W $--i?8 69
various locations.
12.a. 1-500 Tons TN $ 287.00
12.b. 500-1000 Tons TN $ 80.00
ATTEST:
MARIA D. HUIZAR
Clerk of the Council
CITY OF SANTA ANA
PAUL WALTERS
Acting City Manager
APPROVED AS TO FORM:
JOSEPH STRAKA
Interim City Attorney
ALL AMERICAN ASPHALT
By:
Laura Sheedy
Assistant City Attorney
RECOMMENDED FOR APPROVAL:
RAUL GODINEZ, II
Executive Director
Public Works Agency
Owner
Exhibit 1
22E-3
22E-4