Loading...
HomeMy WebLinkAboutItem 1j - Reject Asphalt Concrete Mixes BidDATE: May 20, 2014 TO: Honorable Mayor and City Council STAFF REPORT Public Works Services Department FROM: Tom Tait, Public Works Services Director Dave Thompson, Streets Superintendent By: Carmen Masud, Management Analyst SUBJECT: REJECT THE ONE BID RECEIVED FOR THE PURCHASE OF ASPHALT CONCRETE MIXES AND DIRECT STAFF TO RE -BID Recommendation: Approve SUMMARY The Public Works Services Department ( "PWSD ") is responsible for the maintenance of approximately 350 paved streets in the City. Asphalt repairs include filling potholes, removing and replacing large cracked paved areas, and performing permanent repairs for utility cuts. Recently, PWSD conducted a formal bidding process for the purchase of asphalt concrete mixes and only received one bid. In order to ensure that the City is getting competitive pricing for the purchase of asphalt concrete mixes, it is recommended that the City Council reject the one bid received and direct staff to re -bid. DISCUSSION The PWSD completes asphalt repairs on City streets throughout the year in order to prevent hazards and to extend the useful life of the streets. Asphalt repairs include filling potholes, removing and replacing large cracked sections of streets, and doing permanent repairs following utility cuts. Street maintenance crews utilize approximately 400 tons of asphalt concrete mixes annually. Since hot asphalt concrete mix is needed to complete asphalt repairs, PWSD crews must have access to a nearby asphalt mix provider. The ability to pick up asphalt and transport the material to work sites rather than schedule delivery ensures that repairs can be completed at any time and efficiently. This is especially important when emergency asphalt repairs are needed. Similarly, having access to a nearby asphalt mix provider allows maintenance crews to pick up asphalt multiple times during the day. In order to receive the most competitive price for asphalt, a formal bid was conducted. A notice inviting bids was published in the City's adjudicated paper and sent directly to asphalt concrete mix providers. One bid was received with the following results: Reject Bid for Asphalt Concrete Mixes May 20, 2014 Page 2 of 2 FIRM LOCATION COST Holliday Rock Irwindale, CA $ 48,663 PWSD staff contacted the prospective bidders and found that a few asphalt mix providers no longer provide asphalt concrete mix or went out of business. Two asphalt mix providers that are located near the City limits did not receive a bid package because their address changed or the bid package was not received by the appropriate person who responds to bids. The City of Arcadia Purchasing Procedure Manual states that at least three bids shall be obtained whenever possible. It is anticipated that re- bidding for asphalt concrete mix providers will enable the City to receive more bids. This will ensure that the City is getting the lowest and best price for asphalt concrete mixes. FISCAL IMPACT Funds in the amount of $40,000 have been budgeted for asphalt in the Fiscal Year 2014 -15 Operating Budget. RECOMMENDATION It is recommended that the City Council reject the one bid received for the purchase of asphalt concrete mixes and direct staff to re -bid. Approved. Dominic Lazzareftd City Manager