REPORT IN BRIEF

Approval is requested to increase expenditures under an existing contract with Raisch Products of Santa Clara for asphaltic materials for the Department of Public Works Field Services Division.

BACKGROUND

On August 7, 2001, Council awarded contracts to Raisch Products of Santa Clara, Reed & Graham, Inc., of San Jose and Tri-American, Inc., of Milpitas for the purchase of asphalt concrete materials and pavement reinforcement fabric (RTC 01-282). Traditionally, multiple contracts have been awarded because of the difficulty in obtaining a consistent supply of product for City street crews to meet targeted objectives.

DISCUSSION

During the past year, local suppliers have been plagued with asphalt shortages, plant shutdowns and customer lockouts. This problem has been exasperated by the timing of supplier shutdowns juxtaposed with the need for available product to meet the City’s escalating street repair schedule. City street crews have been forced to make the majority of their purchases of asphalt from Raisch Products, the most reliable source of the three contract suppliers. As the result, expenditures will exceed $265,000, the amount authorized by Council, before the contract expires on July 31, 2002.

 FISCAL IMPACT

Staff anticipates that additional expenditures up to $30,000 will be required under the existing contract with Raisch Products. It should be noted, however, that expenditures with Reed and Graham and Tri-America are less than the amounts Council authorized when awarding the contracts in June 2001. Therefore, the total expenditures for asphaltic materials during the past year are in line with expectations.

RECOMMENDATION

It is recommended that Council authorize additional expenditures in an amount not to exceed $30,000 under an existing contract with Raisch Products, making a total contact not-to-exceed amount of $295,000.

Prepared by:

Elaine Wesely
Purchasing Officer

Reviewed by:

Mary Bradley
Director, Finance

Reviewed by:

Marvin Rose
Director, Public Works

Approved by:

Robert S. LaSala
City Manager

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