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SR 12-18-2018 3C City Council Report City Council Meeting: December 18, 2018 Agenda Item: 3.C 1 of 3 To: Mayor and City Council From: Susan Cline, Director, Public Works, Street & Fleet Services Subject: Award Bid to Sully-Miller Contracting for Asphalt Paving Mixes Recommended Action Staff recommends that the City Council: 1. Award Bid #4345 to Sully-Miller Contracting, a California-based company, for the purchase of asphalt paving mixes for the Public Works Department; 2. Authorize the Procurement Manager to issue a purchase order with Sully-Miller Contracting for asphalt paving mixes in an amount not to exceed $179,795 for one year, with four additional one-year renewal options at 5% annual increases for a total amount not to exceed $993,481 with future year funding contingent on Council budget approval. Summary The City utilizes asphalt to repave streets, fill potholes and otherwise maintain City streets, alleyways and sidewalks. In September 2018, the City solicited bids for the purchase and delivery of asphalt paving mixes. After reviewing the bids received, staff recommends Sully-Miller Contracting, dba Blue Diamond Materials, as the best bidder for the purchase and delivery of asphalt paving mixes for a total amount not to exceed $993,481 over five years. Discussion The City utilizes asphalt to maintain sidewalks, streets and alleys, and for use in improvement projects for City property and special public right-of-way projects. In FY 2017-18, Street Maintenance crews used approximately 2,955 tons of asphalt paving mixes to apply 4,860 sidewalk patches, repair 1,102 potholes, and complete 244,208 square feet of asphalt maintenance repairs including improvements to 20 City alleys. Fluctuations in crude oil prices can cause fluctuations in the cost of asphalt. Expenditures for asphalt paving mixes are anticipated to increase slightly in FY 2018- 19. 2 of 3 Vendor Selection Financial Impacts and Budget Actions Staff seeks authority to award a purchase order with Sully-Miller Contacting, dba Blue Diamond Materials, for the purchase of asphalt paving mixes. Purchase Order Request Request Amount FY 2018-19 Budget Public Works Department, CIP Account # Total Contract Amount $90,795 01500013.529260 $501,700 $20,000 01500013.529270 $110,513 $60,000 C0104610.689000 $331,538 $9,000 C5004850.689000 $49,730 Total $993,481 Bid Data Bid Posting Date Bid Posted On Bid Advertised In (City Charter & Municipal Code) # of Vendors Downloaded # of Submittals Received Date Publicly Opened 09/25/2018 City's Online Bidding Site Santa Monica Daily Press 250 2 10/10/2018 Submittals Received Selection Criteria Sully-Miller $179,794.50 Municipal Code SMMC 2.24.072 Kelterite $210,884.00 Evaluation Criteria Price, previous experience, ability to deliver, quality of product, and compliance with City specifications. Best and Lowest Bidder Sully-Miller Best Bidder Justification Sully-Miller Contracting, dba Blue Diamond Materials, is the City’s current asphalt supplier. The vendor has proven its ability to provide a quality product at competitive prices. The asphalt plant, which is located in the City of Inglewood, is within close proximity to the City compared to other asphalt plants in Los Angeles County. The vast majority of asphalt loads are picked up directly from the plant by Street Maintenance staff, making travel distance a strong consideration in the selection process. It is for these reasons that Sully-Miller is recommended as the best and lowest bidder. 3 of 3 Future year funding is contingent on Council budget approval. Prepared By: Kori Jones, Administrative Analyst Approved Forwarded to Council Attachments: A. Sully_Miller Contracting Oaks Initiative Form