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MOTION APPROVING THE SPECIFICATIONS AND AWARDING A SERVICE CONTRACT TO CALIFORNIA MATERIALS, INC. FOR TRUCK HAULING SERVICES FOR ASPHALT CONCRETE AND ASPHALT CONCRETE GRINDINGS
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Approve the specifications for Truck Hauling Services for Asphalt Concrete and Asphalt Concrete Grindings, Project No. OM-17-103.
2. Award a Service Contract in the amount of $350,000 to the responsive bidder, California Materials, Inc., of Stockton, CA, and approve up to two one-year extensions to this contract.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this motion.
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Summary
The City uses contracted trucking services to haul asphalt concrete to job sites and to haul asphalt grindings and other debris away from job sites. On April 13, 2017, one bid was received for the Truck Hauling Services for Asphalt Concrete and Asphalt Concrete Grindings, Project No. OM-17-103. Staff recommends awarding the Service Contract to the responsive bidder, California Materials, Inc., of Stockton, CA, in the amount of $350,000. The initial contract will expire on December 31, 2017, with the option for two one-year extensions by mutual agreement (Attachment A). The Service Contract will be funded from the Fiscal Year (FY) 2016-17 Street Maintenance operations budget.
DISCUSSION
Background
The proposed Service Contract provides general truck hauling services for City projects on an as-needed basis. These services include pick up and delivery of asphalt concrete for use by City forces at specified job sites, and removal of asphalt concrete grindings.
These material hauling services are in support of street repairs that are primarily: 1) grinding and repaving of large areas of failed pavement on major streets, and 2) excavation and replacement of severely distressed pavement and underlying base materials at isolated locations on residential streets. These repairs improve the ride and safety for roadway users and slow the rate of deterioration of the overall pavement structure. During the calendar year 2017, staff anticipates completing more than 15 large grind and pave projects, and 30 residential excavate and repair projects.
This is an on-call hourly rate service contract that is not project specific. As a result, the total contract value is calculated, for bid comparison purposes, on the estimated number of trucking hours required for the calendar year. It is estimated there will be 2,000 hours needed for asphalt concrete deliveries, and 1,500 hours needed for hauling off asphalt concrete grindings. The actual amount paid to the contactor will depend on the actual number of hours of trucking provided, up to a maximum of the contract value plus approved change orders.
The City of Stockton entered into a Community Workforce and Training Agreement (CWTA) with the San Joaquin Building and Construction Trades Council, AFL-CFO in August of 2016. The CWTA applies to any construction project with a value of one million dollars or more. Since this on-call Service Contract is not project specific, it does not fall within the definition of a covered project pursuant to the Agreement. Therefore, the CWTA does not apply.
Present Situation
On April 13, 2017, one bid was opened with the following results:
|
COMPANY NAME |
BID AMOUNT |
|
California Materials, Inc., Stockton, CA |
$350,000 |
|
Engineer’s Estimate |
$350,000 |
The Local Business Preference Ordinance (Stockton Municipal Code Section 3.68.090) applies to this contract, which provides two percent preference on bidders who have a physical business location within the boundaries of San Joaquin County, and five percent preference on bidders who have a physical business location within the boundaries of Stockton. With only one bidder, application of the bid preference has no effect on the final bid outcome.
California Materials, Inc.’s bid was regular in all respects, and the price is exactly as estimated. Staff recommends awarding a Service Contract for Truck Hauling Services for Asphalt Concrete and Asphalt Concrete Grindings, Project No. OM-17-103, to the responsive bidder, California Materials, Inc., in the amount of $350,000 (Attachment A). The initial contract will expire on December 31, 2017, with the option for two one-year extensions by mutual agreement.
FINANCIAL SUMMARY
The Service Contract with California Materials, Inc. for Truck Hauling Services for Asphalt Concrete and Asphalt Concrete Grindings, Project No. OM-17-103 is proposed to be funded from the Street Maintenance operating budget account (030-3062-540), which is funded by Gas Tax funds. Sufficient funding is available for the proposed Service Contract. No new appropriations are required.
Attachment A - Service Contract with California Materials, Inc.