AgdaPkt 2008-09-08 - Laserfiche WebLink

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R....I!.... PO"'" .'. R.."....T..'..,... . '. . . . . -. - ... . ." -....- .~ - - . -"- : - - - . .". - ~ - . . ~ .." . . . -- . - ~. . . . . . ..-..-.-. ,.. 6.18 Page 1 T." . ~ H' '. "'-.~ '.1_ . MI.....~. ,. ".' .,:~~ ,....~ .'" .... ". 0- \tn:: t:huna:uR:' ....yor Gnu Vii..; vuufllGl.: F"~rfJ #I~, t;t"'.M.ffll:::-' September 8, 2008 SUBJECT Asphalt Materials Purchase for Roadway Maintenance Activities RECOMMENDATION 1. Approve by motion, the acceptance of the asphalt materials bid from Grantterock, Inc. of Redwood City, CA for the 2008-2009 Asphalt Materials Purchase in the amount of $364,600.00 2. Award by motion, an agreement in the amount of $220,000 with Graniterock, Inc. and authorize the City Manager to increase the contract amount, if necessary, up to 10% of the amount awarded. BACKGROUND The asphalt products purchased under this agreement are used for the City's street and sidewalk maintenance activities and the Capital Improvement Program paving activities. The City will either pick up the materials at the supplier's plant or have the materials delivered directly to job sites depending on the needs of the specific project being completed. On July 18,2008, the City Clerk advertised the asphalt materials purchase bid request and one bid was received and opened by the City Clerk on August 13, 2008, and the bid is considered responsive, responsible, and reasonable. Because the bidder is a local Redwood City business, delivery and transportation costs are lower than they would be for a supplier from outside the immediate area. Other potential bidders are located in the San Jose area and with travel distance and time required to make deliveries of this perishable product (asphalt must be laid on the street while still at an acceptable temperature) would not make their bid competitive. It is believed that only one bid was received because the aforementioned factors of travel distance, travel time, and the perishable nature of asphalt would have resulted in greater costs for bidders located outside of Redwood City. The higher costs would have rendered bids from businesses located outside of Redwood City noncompetitive. The contract award amount has been reduced to $220,000 to reflect the available remaining funds in the FY 2008/09 Street System Maintenance operating budget. The request to allow the City Manager to increase the contract amount by up to 10% of the amount awarded is to permit use of these bid prices for purchase of asphalt materials for unforeseen roadway repair projects which may occur during the year. AL TERNA TIVES Reject this bid and direct staff to rebid this purchase. Staff believes the bid is valid and that rebidding the purchase will not result in a better price. FISCAL IMPACT The total award amount is $220,000.00. Funds in the amount of $70.000 have been approved and appropriated by the City Council in the FY 2008-2009 Street System