HomeMy WebLinkAbout22E - SPEC - ASPHALT CONCRETE MATERIALSREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
JULY 18, 2011
TITLE:
CONTRACT RENEWALTO VULCAN
MATERIALS CO. FOR ASPHALT
CONCRETE MATERIALS
(SPEC. NO.09-029)
CITY MANAGER
CLERK OF COUNCIL USE ONLY:
APPROVED
? As Recommended
? As Amended
? Ordinance on 15t Reading
? Ordinance on 2"d Reading
? Implementing Resolution
? Set Public Hearing For_
CONTINUED TO
FILE NUMBER
RECOMMENDED ACTION
Renew the contract with Vulcan Materials Co. for the purchase of asphalt concrete materials for a
one-year period in an annual amount not to exceed $45,000.
DISCUSSION
The Public Works Agency Water Resources Division performs a variety of maintenance and repairs
on the City's water and sewer systems. Tasks include mainline leak repairs to the water main system,
repairs or replacement of water services and sewer laterals. Trench cuts are required in order to
perform repairs and temporary asphalt concrete mix is used to repair the trench cuts in asphalt
concrete streets. Permanent asphalt concrete trench resurfacing is provided under a separate
contract administered by the Public Works Agency Maintenance Services Division.
On July 6, 2009, the City Council awarded a contract to Vulcan Materials Co., for a one-year period,
with provisions for four one-year renewals. The vendor has performed satisfactorily during the past
contract period and has agreed to renew the contract; however the vendor has requested a 13
percent increase for a firm 12-month quote to cover the volatile pricing of petroleum product in the
asphalt cold mix. Discussion has led to a new price structure based on three month periods for a
fixed price quote with the option to requote per quarter with a price ceiling mark of 13 percent. Even
with the requested rate increase, Vulcan Materials, a Santa Ana vendor, remains very competitive in
their pricing. Staff recommends the second renewal of the contract.
FISCAL IMPACT
Funds are available in the various Public Work Agency departmental accounts (63001). The amount
of the contract is estimated, as the actual expenditures will depend upon the requirements throughout
the annual period.
APPROVED AS TO FUNDS AND ACCOUNTS:
Raul G Inez II ` `- Francisco Gutierrez y
Executive Director Executive Director
Public Works Agency Finance & Management Services Agency
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