SR 04-25-2023 5C
City Council
Report
City Council Meeting: April 25, 2023
Agenda Item: 5.C
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Engineering and Street
Services
Subject: Authorization of Purchase Orders with Sully Miller Contracting Company and
Vulcan Construction Materials for Asphalt Paving Materia ls
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemption pursuant to Section 15301 (Existing
Facilities), of the California Environmental Quality Act (CEQA) Guidelines.
2. Award Bid #2685-3 to Sully Miller Contracting Company (Sully Miller), a
California-based company, as the primary vendor, and Vulcan Construction
Materials (Vulcan), an Alabama-based company, as the secondary vendor for the
purchase of asphalt paving materials for the Public Works Department.
3. Authorize the Procurement Manager to issue a purchase order with Sully Miller
for asphalt paving materials in the amount not to exceed $200,000 for one year,
with four additional one-year renewal option(s) to extend at mutually agreeable
price adjustment for a total amount not to exceed $1,000,000 with future year
funding contingent on Council budget approval.
4. Authorize the Procurement Manager to issue a purchase order with Vulcan for
asphalt paving materials in the amount not to exceed $50,000 for one year, with
four additional one-year renewal option(s) to extend at mutually agreeable price
adjustment for a total amount not to exceed $250,000, with future year funding
contingent on Council budget approval.
Summary
The City of Santa Monica utilizes asphalt materials to repave streets, repair
potholes, and maintain streets, alleyways, and sidewalks. In January 2023, the City
solicited bids for the purchase of asphalt paving materials. After reviewing the bids
received, staff recommends Sully Miller Contracting Company as the primary vendor
for the purchase of asphalt paving materials for a total amount not to exceed
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$1,000,000 over a five-year period. Vulcan Construction Materials would serve as a
secondary vendor to supply and deliver asphalt paving mixes (should Sully Miller’s
supply be interrupted by equipment, material, or labor shortages) in an amount not
to exceed $250,000 over a five-year period.
Discussion
The City utilizes asphalt to maintain and repair streets and alleys, and for use in
capital improvement projects such as alley repaving. Asphalt is also used in
temporary sidewalk repairs. In fiscal year 2021-22, Public Works Street
Maintenance crews used approximately 1,700 tons of asphalt to apply 5,086 street
and sidewalk patches, repair 1,408 potholes, and repave two (2) City alleys.
These in-house repairs accounted for 97,176 square feet of asphalt maintenance.
Supply Chain disruptions caused by the COVID-19 pandemic has caused
increases to asphalt material and associated labor costs. The 2022 Russian
invasion of Ukraine also caused fluctuations in crude oil prices, which impact the
cost of asphalt materials. Both factors have caused asphalt cost increases of
approximately 26% over the past three years.
Over the past three years, numerous plant closures have required staff to travel
further to alternative asphalt plants to pick up asphalt materials. In anticipation of
future supply interruptions, staff recommends a secondary vendor for asphalt
material procurement. Awarding to both a primary and a secondary vendor would
save the City travel and fuel costs, contribute to faster street repair turnaround
times, result in less wear and tear on vehicles, and allow staff to return to the City
faster for the completion of numerous street maintenance repairs. If the primary
vendor successfully performs, there will be no utilization of the secondary vendor.
Both purchase orders have cost escalations built into the five-year purchase
period.
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Vendor Selection
Bidder Recommendation
Best Bidder Sully Miller Contracting Company
Evaluation Criteria
Price, previous experience, the quality of the material offered; the
ability, capacity, and skill of the bidder to provide the materials; the
capacity of the bidder to provide the materials promptly, within the
time specified, and without delay or interference; and compliance
with the City specifications.
Municipal Code SMMC 2.24.180
Bid Data
Date Posted Posted On
Advertise In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
01/12/2023 City's Online
Bidding Site
Santa Monica Daily
Press 13 02/10/2023
Best Bidder Justification
Sully Miller Contracting is the City’s current asphalt material supplier and 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 majority of asphalt loads are picked up
directly from the plant by City’s 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.
Vulcan Construction Materials has also supplied the City with quality asphalt materials.
Vulcan Construction Materials’ pricing was three to nine percent higher for asphalt
pricing compared to Sully Miller; however, other non-asphalt materials were priced
substantially higher. Vulcan’s asphalt plant, which is located in the City of Los Angeles,
is within close proximity to the City. Vulcan Construction Materials is a reputable,
nationwide asphalt material supplier for cities and counties including City of Los
Angeles, City of San Diego, and Los Angeles County. It is for these reasons that Vulcan
Construction Materials is recommended as the secondary vendor.
Submittals Received
Sully Miller Contracting
Company
$234,910 Vulcan Construction Materials,
LLC
$581,020
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Environmental Review
The awards for asphalt material purchases are categorically exempt from the California
Environmental Quality Act (CEQA) under Section 15301. Section 15301 of the CEQA
State Guidelines provides Class 1 (existing facilities) exemption for projects that
consists of the operation, repair, maintenance, leasing, licensing, permitting, o r minor
alteration of existing public or private structures, facilities, mechanical equipment, or
topographical features, involving negligible or no expansion of the existing or former
use. The award for asphalt paving materials purchase order would not result in any
modifications to existing City facilities including streets, alleyways, and sidewalks. The
existing facilities would be maintained and repaired with replacement materials and the
award of the purchase order would not expand or materially change existing facilities or
operations. Therefore, the project is categorically exempt as set forth in Section 15301
of the CEQA State Guidelines.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the General Fund to award a
purchase order to Sully Miller Contracting Company as the primary vendor to provide
asphalt materials and a purchase order to Vulcan Construction Materials as secondary
vendor in the event Sully Miller is unable to fulfill the order. Funds will be included in the
FY 2023-25 Proposed Biennial Budget. Future year funding is contingent on Council
budget approval.
Sully Miller Purchase Order Request (Primary Vendor)
FY 2023-24
Request Amount Future Years Department Account # Total Contract
Amount
$200,000 $800,000 01500033.529260 $1,000,000
Vulcan Construction Materials Purchase Order Request (Secondary Vendor)
FY 2023-24
Request Amount Future Years Department Account # Total Contract
Amount
$50,000 $200,000 01500033.529260 $250,000
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Prepared By: Steven Hull, Principal Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Sully MIller Oaks Initiative Disclosure Form
B. Vulcan Oaks Initiative Disclosure Form
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5.C.a
Packet Pg. 95 Attachment: Sully MIller Oaks Initiative Disclosure Form (5537 : Award Bid #2685-3 for Asphalt
5.C.b
Packet Pg. 96 Attachment: Vulcan Oaks Initiative Disclosure Form (5537 : Award Bid #2685-3 for Asphalt Paving Materials)
5.C.b
Packet Pg. 97 Attachment: Vulcan Oaks Initiative Disclosure Form (5537 : Award Bid #2685-3 for Asphalt Paving Materials)
5.C.b
Packet Pg. 98 Attachment: Vulcan Oaks Initiative Disclosure Form (5537 : Award Bid #2685-3 for Asphalt Paving Materials)