Laserfiche WebLink
REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JULY 18, 2011 <br />TITLE: <br />CONTRACT RENEWALTO VULCAN <br />MATERIALS CO. FOR ASPHALT <br />CONCRETE MATERIALS <br />(SPEC. NO.09 -029) <br />CITY MANAGER <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 15t Reading <br />❑ Ordinance on 2 "d Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />RECOMMENDED ACTION <br />Renew the contract with Vulcan Materials Co. for the purchase of asphalt concrete materials for a <br />one -year period in an annual amount not to exceed $45,000. <br />DISCUSSION <br />The Public Works Agency Water Resources Division performs a variety of maintenance and repairs <br />on the City's water and sewer systems. Tasks include mainline leak repairs to the water main system, <br />repairs or replacement of water services and sewer laterals. Trench cuts are required in order to <br />perform repairs and temporary asphalt concrete mix is used to repair the trench cuts in asphalt <br />concrete streets. Permanent asphalt concrete trench resurfacing is provided under a separate <br />contract administered by the Public Works Agency Maintenance Services Division. <br />On July 6, 2009, the City Council awarded a contract to Vulcan Materials Co., for a one -year period, <br />with provisions for four one -year renewals. The vendor has performed satisfactorily during the past <br />contract period and has agreed to renew the contract; however the vendor has requested a 13 <br />percent increase for a firm 12 -month quote to cover the volatile pricing of petroleum product in the <br />asphalt cold mix. Discussion has led to a new price structure based on three month periods for a <br />fixed price quote with the option to requote per quarter with a price ceiling mark of 13 percent. Even <br />with the requested rate increase, Vulcan Materials, a Santa Ana vendor, remains very competitive in <br />their pricing. Staff recommends the second renewal of the contract. <br />FISCAL IMPACT <br />Funds are available in the various Public Work Agency departmental accounts (63001). The amount <br />of the contract is estimated, as the actual expenditures will depend upon the requirements throughout <br />the annual period. <br />APPROVED AS TO FUNDS AND ACCOUNTS: <br />Raul Godinez II ` `- Francisco Gutierrez y <br />Executive Director Executive Director <br />Public Works Agency Finance & Management Services Agency <br />km <br />22E -1 <br />