TO: Honorable Mayor and Council
FROM: W. Mark Clark, Maintenance Services Manager
SUBJECT:Title
Approve Purchase Order Renewal for Aggregate Materials with Campbell Redi-Mix (ITB No. B15-OP-2)
Body
FUNDING SOURCE:
Various Departments
PURPOSE:
Renew purchase order for Aggregate Materials in accordance with City Code Section § 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 $174,018.67, including applicable sales tax. Campbell Redi-Mix has been the awarded supplier of aggregate materials for the past three years.
Over the past several years, demand for large size aggregate material has increased, necessitating the mining of additional acreage and additional costs for blasting (demolition). Staff has reviewed the bid prices and compared them to last year’s pricing, and finds an average of 5% increase in the cost of aggregate materials, and are confident that this represents a fair and honest bid by Campbell Redi-Mix.
Price increases for FY 15-16 are 4.9% and are reasonable. Price increases are based on increased labor (benefits) costs.
Staff sees no cost or service advantage in rebidding this contract out for FY 15-16.
COMMUNITY IMPACT:
Procuring aggregate products from the local supplier saves on the cost of products being transported from other areas of Arizona. Also, City forces and contracted labor are able to complete work without suffering any supply delays.
FISCAL IMPACT:
Funds for aggregate materials have been included in the appropriate divisional budgets for FY 2015-16.
ATTACHMENTS:
Campbell Price Increase Notification
LHC Letter of Extension
FY 2014-15 Aggregate Materials Bid Tabulation
SUGGESTED MOTION:Recommended Action
I move to approve the purchase order renewal for the supply and delivery of Aggregate Materials with Campbell Redi-Mix for the itemized unit prices listed on the attached Price Letter plus applicable sales tax.