TO: Honorable Mayor and Council
FROM: W. Mark Clark, Maintenance Services Manager
SUBJECT:Title
Approve Purchase Order Renewal for Redi-Mix Concrete Products with Campbell Redi-Mix (ITB No. B15-OP-1)
Body
FUNDING SOURCE:
Various Departments
PURPOSE:
Renew purchase order for Redi-Mix Concrete Products in accordance with City Code Section ยง 3.10.020.12.
BACKGROUND:
On April 16, 2014, only one bid was received and opened from Campbell Redi-Mix, of Lake Havasu City, Arizona, in the amount of $222,753.39 including applicable sales tax. Campbell Redi-Mix has been the awarded supplier of redi-mix materials on as as-needed basis for the past three years.
This bid was originally awarded in 2014, and is recommended to be renewed with designated price changes. The original procurement consisted of supply and delivery of approximately 1,774 cubic yards of various types of redi-mix concrete products and approximately 1,150 full and half-size reinforced concrete blocks. The redi-mix concrete products are used by the Maintenance Services Division, Water Division, and Wastewater Division for daily work and special projects, such as in driveway approach sections, curbs, gutter, and sidewalks. The Maintenance Services Division utilizes reinforced concrete blocks along wash lengths as a flood control application for mitigating erosion caused by stormwater runoff.
Over the past several years, demand for cement products across the nation has resulted in vendors passing some of those cost increases to users. Staff has reviewed the bid prices and compared them to last year's pricing, and finds an average of 5% increase in the most common redi-mix products, and are confident that this represents a fair and honest bid by Campbell Redi-Mix.
Price increases for FY 15-16 range from 3.33 to 4.50% (average 4.05%) and are reasonable. Price increases are based on increased materials (cement) and labor (benefits) costs.
Staff sees no cost or service advantage in rebidding this contract out for FY 15-16.
COMMUNITY IMPACT:
Procuring redi-mix concrete products from the local supplier saves on the cost of products being transported from outside the city, which can also affect the quality of the mixed product. City forces and contracted labor are able to complete work with a quality assured product, and without suffering delivery delays.
FISCAL IMPACT:
Funds for redi-mix concrete products and reinforced concrete blocks have been included in the appropriate divisional budgets for FY 2015-16.
ATTACHMENTS:
Campbell Price Increase Notification
LHC Letter of Extension
FY 2014-15 Redi-Mix Concrete Products Bid Tabulation
SUGGESTED MOTION:Recommended Action
I move to approve the purchase order renewal for the supply and delivery of Redi-Mix Concrete Products with Campbell Redi-Mix for the itemized unit prices listed on the attached Price Letter plus applicable sales tax.