REPORT TO COUNCIL
SUBJECT
Title
Authorize the Issuance of Purchase Orders for Aggregate Base Materials for the Departments of Environmental Services and Public Works (F16-114)
Report
REPORT IN BRIEF
Approval is requested to authorize the issuance of three purchase orders for aggregate base materials, for a term of 8/24/16 to 6/30/18, as follows: $286,355 to Graniterock Company of Redwood City for the Department of Public Works (DPW), $184,008 to Graniterock for the Department of Environmental Services (ESD), and $141,982 to Stevens Creek Quarry of Cupertino for ESD. Approval is also requested for delegated authority to the City Manager to renew the purchase orders for two (2) additional one-year periods depending upon available funding and acceptable price and service.
EXISTING POLICY
Pursuant to Chapter 2.08 of the Municipal Code, Council approval is required to approve transactions greater than $100,000, and to award an Invitation for Bids to the lowest responsive and responsible bidder(s).
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
BACKGROUND AND DISCUSSION
Aggregate materials are used by Public Works Operations crews for regular repair work on City streets and parking lots, and also by ESD crews for pavement repairs related to water main breaks and sewer repairs in paved areas.
Invitation for Bids No. F16-114 was posted to the City website in May 2016 and directly provided to three known aggregate materials suppliers in the Bay Area. Sealed bids were publicly opened on June 8, 2016. Two responsive bids were received from Graniterock and Stevens Creek Quarry. The Bid Summary is contained in Attachment 1. Graniterock was the only firm to provide pricing on every item, while Stevens Creek Quarry bid on only two items.
The Invitation for Bids provided for the City to award multiple contracts which identify primary and backup suppliers. By doing this, City crews retain some flexibility in obtaining these materials as they are needed and available. Staff recommends awarding contracts to both bidders, based on bid pricing and to ensure the highest level of availability of materials to meet operational needs as they arise. Based on the pricing, and subject to availability, Granite Rock is the primary supplier on all materials with the exception of drain rock, which will be primarily supplied by Stevens Creek Quarry.
FISCAL IMPACT
Budgeted funds are available in the Department of Public Works operating budget (Program 120 - Pavement Maintenance) and the Environmental Services Department operating budget (Program 360 - Water Resources, and Program 367 - Wastewater Collection Systems).
Funding Source
Funding is provided by the General Fund for City streets and parking lots, and from the Water Supply and Distribution Fund and the Wastewater Management Fund for utility related work.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
1) Authorize the issuance of purchase orders for a term of 8/24/16 to 6/30/18 in the amounts of $286,355 for Public Works purposes and $184,008 for Environmental Services purposes to Graniterock Company; 2) authorize the issuance of a purchase order for a term of 8/24/16 to 6/30/18 in the amount of $141,982 to Stevens Creek Quarry; and 3) delegate authority to the City Manager to renew the purchase orders for two additional one-year periods, depending upon available funding and acceptable pricing and service.
Staff
Prepared by: Pete Gonda, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: John Stufflebean, Director of Environmental Services
Reviewed by: Manuel Pineda, Director of Public Works
Reviewed by: Walter C. Rossmann, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Bid Summary
2. Draft Purchase Orders