REPORT TO COUNCIL
SUBJECT
Title
Amend an Existing Contract for Asphaltic Materials and Pavement Reinforcement Fabric (F16-01)
Report
REPORT IN BRIEF
Approval is requested to amend an existing 18-month contract with Reed & Graham for the purchase of asphaltic materials for use by Public Works Street Operations. These materials were bid in July 2014, and contracts to three suppliers were awarded by Council as follows: $956,400 to Granite Construction Company; $542,970 to Graniterock Company; and $169,260 to Reed & Graham (RTC No. 14-0715). Multiple contracts are awarded to primary and backup suppliers, based on the relative number of low bid items and estimated quantities, to help ensure that products are available when needed.
Due to the lack of availability of specific products from the main supplier, it is necessary to increase the Reed & Graham contract by $150,000. The Reed & Graham contract will increase to $319,260, and the Granite Construction Company contract will decrease to $806,400.
Council approval is also recommended to delegate authority to the City Manager to increase the three supplier contracts during the current term expiring January 31, 2016, should it become operationally necessary, subject to budget appropriation control limits.
EXISTING POLICY
Council approval is required to amend existing Council-approved contracts absent delegated authority to the City Manager to make such modification.
ENVIRONMENTAL REVIEW
N/A.
BACKGROUND AND DISCUSSION
The Street Operations Division relies upon a ready and reliable source of asphalt for patching and repairing City streets. The nature of the asphalt industry is such that plants can be closed or unavailable for a number of reasons, including seasonal cleaning, varying demand, focus on production of alternative materials (other mixes, or rubber asphalt), and mechanical failures.
During the past several months, Granite Construction was unable to supply the specific materials...
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