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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