COUNCIL COMMUNICATIONS
TO: Honorable Mayor and Council
FROM: W. Mark Clark, Maintenance Services Manager
SUBJECT:Title
Award Bid for Aggregate Materials to Campbell Redi-Mix
Body
FUNDING SOURCE:
Various Departments
PURPOSE:
The Lake Havasu City Operations Department, Maintenance Services Division, is requesting the award of the above-mentioned Invitation to Bid (ITB). This procurement consists of supply and delivery of approximately 11,380 tons of various types of aggregate materials to the Operations Maintenance Facility and other locations throughout Lake Havasu City on an as-required basis. This material is used by the Maintenance Services Division, the Water Division, and the Wastewater Division for daily operational work and special projects.
BACKGROUND:
On June 8, 2017, only one bid was received and opened from Campbell Redi-Mix, of Lake Havasu City, Arizona, in the amount of $215,880.65 including applicable sales tax. Campbell Redi-Mix has been the awarded supplier of aggregate materials on an as-needed basis for many years.
Five (5) potential bidders were formally notified in addition to bidders that subscribe to DemandStar by Onvia, an online bid notification service provider.
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 the previous bid (2014) and found changes ranging from reductions in cost of 3% to increases of 21%. The prorated average change is a 10% increase in cost of aggregate materials, and staff is confident that this represents a fair and reasonable bid by Campbell Redi-Mix.
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 experiencing any supply or delivery delays.
FISCAL IMPACT:
Funds for aggregate materials have been included in the appropriate divisional budgets for FY 2017-18: HURF has $150,000 available in 221-5110-403.52-23 General Fund has $3,300 available in 110-3220-401.52 and Water has $200,000 available in 521-4110-421.43-31.
ATTACHMENTS:
FY 2017-18 Aggregate Materials Bid Tabulation
SUGGESTED MOTION:Recommended Action
I move to award a three year multi-term purchase order price agreement for supply and delivery of Aggregate Materials to Campbell Redi-Mix for the itemized unit prices listed on the attached ITB No. B17-OP-005-2625 bid tabulation plus applicable sales tax.