SR 05-09-2023 5B
City Council
Report
City Council Meeting: May 9, 2023
Agenda Item: 5.B
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Engineering and Street
Services
Subject: Award Purchase Order to Associated Ready Mixed Concrete, Inc. for
Concrete Materials
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 #2685-2 to Associated Ready Mixed Concrete, Inc., a California-
based Company, for the purchase and delivery of concrete materials for the
Public Works Department;
3. Authorize the Procurement Manager to issue a purchase order with Associated
Ready Mixed Concrete, Inc., in an amount not to exceed $200,000 for one year,
with four additional one-year renewal option(s) for a total amount not to exceed
$1,000,000 over a five-year period, with future year funding contingent on
Council budget approval.
Summary
The City utilizes concrete materials for various street maintenance projects, including
the repair and replacement of sidewalks, alleys, driveways, streets, curbs and gutters,
as well as for various emergency and urgent repairs to the public right-of-way. Staff
recommends issuing a purchase order to Associated Ready Mixed Concrete, Inc. for
the purchase and delivery of concrete materials for a total amount not to exceed
$1,000,000 over a five-year period.
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Discussion
The City utilizes concrete to maintain and repair sidewalks, alleys, driveways, curbs,
gutters, streets and alleys. The City’s Street Maintenance staff perform the work in-
house and use between 700 to 850 cubic yards of concrete materials annually to
conduct various repairs.
The 2022 Russian invasion of Ukraine has caused fluctuations in cement prices, which
has impacted the cost of concrete materials. Additionally, the COVID-19 pandemic has
caused increases to concrete materials and associated labor costs. Both factors above
have caused concrete cost increases of upwards of 40% over the past three years. The
bid has cost escalations built into the first two renewal periods and the City agrees with
these price adjustments. The vendor was not able to provide renewal terms beyond the
first two periods due to market uncertainty. The City would negotiate with Associate for
the third and fourth renewal period, and only issue a PO if the pricing is competitive and
in line with market trends during those periods.
Vendor Selection
Best and Only Bidder Associated Ready Mixed Concrete, Inc.
Submittals Received Selection Criteria
Associated Ready Mixed Concrete, Inc. $135,015 Municipal Code SMMC 2.24.180
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
The City is not required to select the bid with the lowest price.
Bid Data
Date Posted Posted On
Advertised In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
01/24/2023 City's Online
Bidding Site Santa Monica Daily Press 7 03/10/2023
Additional Vendor Outreach & Justification to Award
Staff conducted additional outreach to vendors who download ed the bid to see why they
did not submit a bid and received no responses. Associated Ready Mix, Inc., is the City’s
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current mixed concrete material supplier and has provided a competitive bid with
competitive and comparable unit prices in today’s construction materials market.
Associated Ready Mix, Inc. has successfully provided concrete materials to the City over
the past five years. The vendor has proven its ability to provide a quality product. The
vendor is able to deliver ready-to-use concrete mixes within ~24 hours of the order and
has a concrete plant within the city limits. It is for these reasons that Associated Ready
Mixed Concrete Inc. is recommended as the best bidder
Environmental Review
The awards for mixed concrete 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, or
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 mixed concrete materials purchase order would not result in any
modifications to existing facilities. 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 funding from the General Fund to award a purchase
order with Associated Ready Mixed Concrete, Inc. to provide mixed concrete materials.
Funds will be included in the FY 2023-25 Proposed Biennial Budget. Future year
funding is contingent on Council budget approval.
Purchase Order Request
FY 2023-24
Request Amount Future Years Department Account # Total Contract
Amount
$200,000 $800,000 01500033.529260 $1,000,000
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Prepared By: Steven Hull, Principal Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Associated_Oaks_Initiative
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5.B.a
Packet Pg. 93 Attachment: Associated_Oaks_Initiative (5536 : Award Bid #2685-2 to Associated Ready Mixed Concrete, Inc. and Issue PO for Concrete