City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-01768 11/12/2024 Consent Item 12.
Supplemental Agreement: Purchase of Aggregates, Asphalt Concrete, and Related Materials File ID: 2024-01768
Location: Citywide
Recommendation: Pass a Motion authorizing the City Manager or the City Manager's designee to execute Supplemental Agreement No. 1 to City Agreement PRC003115 with Granite Construction for an amount of $760,000, to purchase aggregates for an amount not-to-exceed $1,000,000.
Contact: Deanne Neighbours, Logistics Manager, [email protected], (916) 808- 3536; David Herrmann, Utilities Operations and Maintenance Manager, [email protected], (916) 808-5652; Charley Cunningham, Utilities Operation and Maintenance Manager, [email protected], (916) 808-5518; Pravani Vandeyar, Director, [email protected], (916) 808-3765; Department of Utilities Presenter: None
Attachments:
1-Description/Analysis
2-PRC003115-1_Granite Construction
Description/Analysis
Issue Detail: The Department of Utilities (DOU) has an ongoing need to purchase aggregate materials and related materials.
Policy Considerations: This supplemental agreement (PRC003115-1) exceeds the City Manager’s approval authority and requires approval by City Council. City Code Section 3.04.020 requires supplemental contracts of $250,000 or more to be approved by the City Council.
Economic Impacts: None.
Environmental Considerations: It has been determined that the proposed activity is not a project pursuant to the California Environmental Quality Act (CEQA) Guidelines Section 15378(b)(2).The purchase of asphalt and aggregate materials are continuing administrative or maintenance activities, such as purchases for supplies and are not subject to CEQA pursuant to CEQA Guidelines Section
File ID: 2024-01768 11/12/2024 Consent Item 12.
15060(c)(3).
Sustainability: The proposed supplemental agreement is consistent with the 2040 General Plan’s goals and policies related to LUP-11.8 Construction Processes: The City shall encourage onsite construction processes that reduce environmental harm and support sustainable methods.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: In February 2023, Invitation for Bid No. B23151631036 was issued by the Department of Public Works to price aggregate materials, asphalt concrete, and related materials. DOU sought to utilize the solicitation and entered into contract negotiations with Teichert Aggregates but was unable to come to mutually acceptable terms. DOU subsequently determined Teichert Aggregates to be unresponsive and entered into contract negotiations with the next lowest bidder, Granite Construction Company.
On August 9, 2024, DOU executed PRC003115 with Granite Construction Company for the purchase of aggregates, asphalt concrete, and related materials for $240,000. Supplement 1 is being proposed to increase the agreement by $760,000 bringing the agreement’s total not-to-exceed amount to $1,000,000.
Financial Considerations: Funding for the first year of this agreement of approximately $240,000 has been included in the approved Fiscal Year 2024/25 DOU Budget. Funding for future fiscal years shall be subject to funding availability in the adopted budgets for the applicable fiscal year in an amount not to exceed $1,000,000.00 over the contract term. Purchase orders encumbering funds under this agreement will not be created until needs and funding are identified in the applicable budget (operating, capital, multi-operating, or grants).
There are no General Funds planned or allocated for this project.
Local Business Enterprise (LBE): Granite Construction Company is an LBE.
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