August 9, 2005

SUBJECT: Award of Bid No. F0406-73 for Asphaltic Materials for Street Maintenance and Repair

REPORT IN BRIEF

Approval is requested for the award of multiple one-year contracts to Granite Rock Company of Redwood City; Raisch Products of San Jose; and Reed and Graham, Inc., of San Jose to provide asphaltic materials on an “as-needed” basis for the Department of Public Works Street Maintenance Program.

BACKGROUND

Emulsion oils, asphalt concrete, pavement reinforcement fabric, aggregate base and various filler and sealer materials are required by City street crews for the regular repair and maintenance of City streets and parking lots. Because of volatility in the market place, these items are typically competitively bid for one-year periods.

DISCUSSION

Bid Specifications were prepared by Public Works and Purchasing staff, and local suppliers were directly notified that Invitation for Bids No. F0406-73 was available. Sealed bids were publicly opened on July 6, 2005.

Responsive bids were received from Granite Rock Company of Redwood City; Reed and Graham, Inc., of San Jose, Raisch Products of San Jose; and Tri-American, Inc., of Milpitas (crack filler, coating and hydro-patch only). Following is a chart indicating the lowest bidder for the highest usage items:

Staff recommends award of a primary contract to the low bidder for each product as well as award of contract to all other bidders as backup sources of supply. Granite Rock, Reed and Graham and Raisch are the only suppliers of emulsion oils and asphalt concrete in the Bay Area, and finding a consistent source for these materials have been difficult, due to high demand and plant shutdowns for scheduled and unscheduled maintenance. Although staff will first attempt to obtain asphalt concrete and emulsion oils from the low bidders, having a backup source ensures that street work in process can continue through completion.

Contracts for the lower volume products included in Invitation for Bids No. F0406-73 fall within the City Manager’s contract award authority of $50,000 and do not require Council action.       

FISCAL IMPACT

Assuming that emulsion oil and asphalt concrete are consistently available from the low bidders, total cost to the City for a one year period will not exceed $947,750, based on estimated requirements. Due to experiences with product shortages and plant shut downs in the past, however, staff recommends that Council not place specific dollar values on the recommended contracts. This will give the street crews flexibility to purchase product where it is available without exceeding Council-awarded dollar amounts.

Funds are available in various accounts in the Department of Public Works Program116 – Pavement Operations.

RECOMMENDATION

It is recommended that Council award one-year blanket purchase orders, in substantially the same form as the attached drafts, to Granite Rock Company, Raisch products and Reed and Graham, Inc. for asphaltic materials.

Prepared by:

Elaine Wesely
Purchasing Officer

Reviewed by:

Mary J. Bradley
Director, Finance

Reviewed by:

Marvin Rose
Director, Public Works 

Approved by:

Amy Chan
City Manager

Attachments
1. Draft Blanket Purchase Order – Granite Rock Company (.pdf format)
2. Draft Blanket Purchase Order – Reed and Graham, Inc. (.pdf format)
3. Draft Blanket Purchase Order – Raisch Products (.pdf format)