HomeMy WebLinkAboutItem 1d - Purchase Order with Holliday CompaniesDATE: July 1, 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: Maria Lourdes A. Taylor, Senior Management Analyst
SUBJECT: PURCHASE ORDER WITH HOLLIDAY COMPANIES TO PROVIDE
ASPHALT CONCRETE MIXES ON AN AS NEEDED BASIS IN AN
AMOUNT NOT TO EXCEED $40,000
Recommendation: Approve
SUMMARY
The Public Works Services Department ( "PWSD ") is responsible for the maintenance of
approximately 350 paved streets in the City and completes asphalt repairs on City
streets throughout the year. Asphalt repairs include filling potholes, removing and
replacing large cracked paved areas, and performing permanent repairs for utility cuts.
To ensure that the City is receiving the most competitive prices for the purchase of
asphalt concrete mixes, a formal bid process was conducted and Holliday Companies
submitted the lowest responsive bid.
It is recommended that the City Council approve a purchase order with Holliday
Companies to provide asphalt concrete mixes on an as needed basis in an amount not
to exceed $40,000 annually beginning in Fiscal Year 2014 -15, with the option of three
one -year renewals.
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. PWSD Street Maintenance Crew (Streets
Crew) utilizes approximately 400 tons of asphalt concrete mixes annually. Over the
years, the Streets Crew primarily picks up asphalt concrete mix from the vendor and
transports them to the work site.
Purchase of Asphalt Concrete Mixes
July 1, 2014
Page 2 of 3
Since hot asphalt concrete mix is needed to complete asphalt repairs, Streets 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 efficiently. Additionally, picking up the materials from the
vendor's plant site is more cost - effective since delivery fees are not incurred, and
maintenance crews can pick up asphalt multiple times during the day. Picking up
asphalt is especially important when emergency asphalt repairs are needed and
proximity of location is critical.
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. On June 16, 2014, the Office of the City Clerk received
and opened four sealed bids with the following results.
FIRM
LOCATION
BID AMOUNT
Sully - Miller Contracting Co (DBA Blue Diamond)
Brea, CA
$41,188.10
Vulcan Materials Co.
Irwindale, CA
$41,530.11
Holliday Companies
Upland, CA
$47,455.00
All American Asphalt
Corona, CA
$48,500.00
All bid documents were reviewed for content and the contractor's ability to best meet the
City's needs, including the plant's proximity to work sites as specified in the bid
standards. Although Sully - Miller Contracting Company and Vulcan Materials Company
provided the lowest bids, it was determined that they were unable to meet the overall
needs of the City for this service as required in the bid specifications.
Sully - Miller did not respond on one of the bid items (delivery cost of S -1 H emulsion) due
to lack of equipment for delivering such an item, and one of its facilities is located in Sun
Valley, California, which is approximately 55 miles roundtrip from and to the PWSD
Service Center. Likewise, Vulcan Materials Company did not respond on two of the bid
items (delivery and pick up costs of berm oil mix), as its plant facility is a 35 mile
roundtrip drive to Los Angeles. Given the importance of keeping the asphalt mix at the
proper temperature as it is being transported from the plant's location to the work site, it
is essential that the PWSD Street Maintenance Crew have prompt access to the
materials facility. Also, since the PWSD Street Maintenance Crew mostly picks up the
asphalt concrete mix, longer travel distances can negatively impact manpower costs
due to increased labor and equipment costs spent on additional travel time including
traffic.
Based on evaluation of the bids, it was concluded that Holliday Companies is the lowest
responsive bidder capable of providing immediate access to their asphalt concrete plant
in order to pick up hot asphalt concrete mix. It is estimated that the City of Arcadia has
annually purchased approximately $40,000 in asphalt material.
Purchase of Asphalt Concrete Mixes
July 1, 2014
Page 3 of 3
FISCAL IMPACT
Funds in the amount of $40,000 have been budgeted for the purchase of asphalt
material in the Fiscal Year 2014 -15 Operating Budget.
RECOMMENDATION
It is recommended that the City Council approve a purchase order with Holliday
Companies to provide asphalt concrete mixes on an as needed basis in an amount not
to exceed $40,000, with the option of three one -year renewals.
Approved:
Dominic Lazzareftd
City Manager