CITY OF POMONA
COUNCIL REPORT
July 18, 2022
To: Honorable Mayor and Members of the City Council
From: James Makshanoff, City Manager
Submitted By: Rene Guerrero, Public Works Director
SUBJECT: AWARD OF RETROACTIVE CONTRACT TO HOLLIDAY ROCK CO., INC. FOR THE WILL CALL PURCHASE OF ASPHALT, CONCRETE, AND HOT-MIX MATERIALS RECOMMENDATION:
It is recommended that the City Council take the following actions:
Retroactively award a three-year contract, beginning October 14, 2020 through October 13, 2023, with the option to renew for up to two (2) additional years, to Holliday Rock Co., Inc. for a not-to-exceed amount of $365,000 during the initial three-year term for the will call purchase of asphalt, concrete, and hot-mix materials; and Authorize the City Manager to execute the contract and all necessary documents/amendments, subject to approval by the City Attorney.
EXECUTIVE SUMMARY: Approval of the above-recommended actions will allow the City to enter into a contract with Holliday Rock Co., Inc. for the continued will call purchase of asphalt, concrete, and hot-mix materials as needed throughout the City of Pomona. These materials are required by the Public Works Department to repair and maintain the City’s infrastructure, including streets and alleyways.
FISCAL IMPACT: Funding for the will call purchase of asphalt, concrete, and hot-mix materials is included in the FY 2021-22 and FY 2022-23 Public Works Street Maintenance Operating Budgets, 208-2520-52530-00000, 138-2520-52530-00000, and 128-2520-52530-00000.
PUBLIC NOTICE REQUIREMENTS: In accordance with Pomona City Code Section 2-993.1., the Notice Inviting Bids was posted on Planet Bids on August 17, 2020, with a due date of September 13, 2020.
DISCUSSION: The Public Works Department is responsible for the repair and maintenance of the City’s infrastructure, including roads and alleyways. To perform this work, the Department must purchase required materials comprising of different grade asphalt concrete (hot mix).
On August 17, 2020, the City published Request for Proposal #2020-29 on Planet Bids for Asphalt, Concrete, Hot-Mix Materials (Will Call), with a due date of September 13, 2020. Twenty vendors were notified and two responses were received. Holliday Rock’s bid was the second lowest response at $330,760 for the three-year contract. However, there are significant factors to consider in determining the lower responsible bidder for “will call” asphalt purchases. Due to the nature and timing of street repair work, staff picks up materials at vendor’s location. Consequently, travel distance and time can become a significant factor when reviewing bids. Specifically, the Holliday Rock plant is 12 miles away located in the City of Upland, and given current high gas prices, transportation costs must be considered.
A Purchase Order for Holliday Rock was issued on October 14, 2020. At that time, staff did not believe the annual amount would exceed $150,000; hence, staff did not take this item to City Council for approval. Per Pomona City Code Section 2-993.1 (g), “Formal bids or proposals over $100,000 and less than $150,000 shall be awarded by the City Manager to the bidder or proposer determined to be the lowest, responsive, and responsible bidder, or the most qualified proposer…Formal bids or proposals in the amount of $150,000 or more shall be awarded by the City Council.” Unfortunately, due to inflation, material costs have increased significantly in the last two years. In fact, the Consumer Price Index (CPI) has increased to 8.6 percent over the last 12 months. Due to the rising costs, it is necessary to retroactively award a three-year agreement, with two optional one-year extensions, to allow for the purchase of required materials for the continued repair and maintain of City streets. By entering into this agreement, staff will be able to exceed the cumulative amount of $150,000 with City Council approval.
Prepared by:
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Maritza Sosa-Nieves
Senior Management Analyst
Award of Retroactive Contract to Holliday Rock Co., Inc. for the Will Call Purchase of Asphalt, Concrete, and Hot-Mix Materials