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SR 04-26-2016 3C City Council Report City Council Meeting: April 26, 2016 Agenda Item: 3.C To: Mayor and City Council From: Martin Pastucha, Director, Public Works, Street & Fleet Services Subject: Reject All Bids for the Purchase of Concrete Materials Recommended Action Staff recommends that the City Council: 1. Reject all bids for Bid #4232, Furnishing and delivering Portland cement concrete. 2. Direct staff to reissue a bid in order to obtain the best bidder for Furnishing and Delivering Portland cement concrete. Executive Summary The City uses mixed Portland cement concrete for various street maintenance projects. In February 2016, the City solicited bids for the purchase and delivery of mixed Portland cement concrete. One bid was received. Staff recommends rejecting all bids for bid #4232 and reissue a bid in order to obtain the best bidder for the supply of Portland cement concrete. Background The City utilizes Portland cement concrete to repair sidewalks, alleys, driveways, curbs and gutters, and for various emergency repairs. Portland cement is the most common type of cement and used as a basic ingredient of concrete. The approximate annual usage of concrete is 421 cubic yards. Discussion On February 18, 2016, the City published Notices Inviting Bids to furnish and deliver Portland cement concrete, in accordance with City specifications. The bid was posted -line bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. 511 vendors were notified, 15 vendors downloaded the bid. One bid was received and publicly opened on March 7, 2016, per Attachment A. 1 of 2 The bid was evaluated based on the criteria in SMMC 2.24.072, including competitive price, previous experience, ability to deliver, quality of product, and compliance with City specifications. Current costs for Portland cement concrete in FY2015-16 are twenty- percent less expensive than the prices submitted by the sole bidder, who acts as a brokerage house. Staff believes that a greater cost savings may be achieved by establishing a direct agreement with a concrete plant rather than a brokerage house. Staff recommends the Council reject all bids and direct staff to issue a new Notice Inviting Bids in order to obtain the best bidder for this project in accordance with City specifications. Financial Impacts and Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. Prepared By: Kori Jones, Administrative Analyst Approved Forwarded to Council Attachments: A. 4232 Bid Results 2 of 2 CITY OF SANTA MONICA QUOTATION TABUCONCRETE QUICK BIDREMARKS: RECOMMEND TO REJECT ALL BIDS OR Number: 2/18/2016Kori Jones Date Opened:Prepared By: LOGANS MARKETING Vendor Name 30 DAYS Payment Terms 24 HOURS Delivery Terms SANTA MONICA, CA Location ITEMDESCRIPTIONQTYUNIT PRICEEXTENSION 12500 PSI CITY MIX 1"1110.00$ 110.00$ 23500 PSI 1"1113.00$ 113.00$ 32500 PSI PUMP MIX 3/8"1117.00$ 117.00$ 4PERVIOUS NO.GM4-PMAX/767441126.00$ 126.00$ 5ENVIRO FEE125.00$ 25.00$ 6ENERGY FEE135.00$ 35.00$ 7SHORTLOAD CHG/ EACH115.00$ 15.00$ AFTER 5 F/L ($25 PER YARD) 8SHORTLOAD WAIVED 9STANDBY TIME/HR $2.75/MIN, 10LEAD TIME TO DELIVER TO 9040448HOURS $ 541.00-$ 9.50%51.40$ $ 1,133.40