HomeMy WebLinkAboutStaff Report 2301-0866CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Monday, May 15, 2023
Council Chambers & Hybrid
5:30 PM
Agenda Item
11.Authorization for approval of a Blanket Purchase Order with Granite Rock Company in
the Amount of $500,000 Annually for a Three-Year Term, beginning July 1, 2023 through
June 30, 2026, for a Total Not-to-Exceed Amount of $1,500,000 for Hot Mix Asphalt
Materials for Public Works and Utilities Departments; CEQA Status – Not a Project
1
6
2
2
CITY COUNCIL
STAFF REPORT
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: May 15, 2023
Report #: 2301-0866
TITLE
Authorization for approval of a Blanket Purchase Order with Granite Rock Company in the
Amount of $500,000 Annually for a Three-Year Term, beginning July 1, 2023 through June 30,
2026, for a Total Not-to-Exceed Amount of $1,500,000 for Hot Mix Asphalt Materials for Public
Works and Utilities Departments; CEQA Status – Not a Project
RECOMMENDATION
Staff recommends that Council authorize the City Manager or their designee to execute a
blanket purchase order with Granite Rock Company for Hot Mix Asphalt materials in the
not-to-exceed amount of $500,000 annually, for a total not-to-exceed amount of $1,500,000
over a three-year term from July 1, 2023 to June 30, 2026.
BACKGROUND
The Public Works and Utilities departments have working groups that use Hot Mix Asphalt.
Public Works uses Hot Mix Asphalt for performing repairs on damaged sections of roadway,
sidewalk, and bicycle paths, and for projects designed to ensure safety and durability of streets
as measured by the pavement condition index (PCI) throughout the City. Utilities typically uses
Hot Mix Asphalt for permanent trench restoration and roadway resurfacing. Cold Mix-Cut Back
Asphalt, which is supplied to through a separate blanket purchase order, is typically used for
temporarily backfilling trenches and ramping up metal trench plates.
ANALYSIS
There are two primary methods of manufacturing Hot Mix Asphalt, either using a batch plant or
a drum plant. A batch plant allows City crews to specify the mix needed for each unique job. A
drum plant does not have the ability to mix asphalt to order, and City crews are forced to use
whatever mix is being produced at the drum plant on any given day. The City requires that the
primary supplier of asphalt produce their product in a batch plant, as this affords the various
crews the most flexibility when it comes to scheduling and completing jobs throughout the
City. Staff also requires that the plant be located within 10 miles of Palo Alto’s Municipal
1
6
2
2
Services Center (MSC). The proximity of the plant is important due to the limited shelf life of
Hot Mix Asphalt; transporting hot material over an extended distance will impact the quality of
the Hot Mix Asphalt (HMA) as well as City repaving projects. With the importance of the City’s
PCI score, using the best materials for the job is imperative.
A Request for Quotation (RFQ) for Hot Mix Asphalt was sent to three potential vendors and
posted on Planet Bids. Quotes were received from Granite Rock Company and one other
company. The other company was deemed non-responsive because they were unable to
provide all the materials requested in the Scope of Work. Granite Rock Company met all the
requirements, including having a plant located less than 10 miles away, in Redwood City.
Table 1: Summary of Bid Process:
PlanetBids Link: https://pbsystem.planetbids.com/hub/bm/bm-detail/98552#bidInformation
Bid Name/Number
Hot Mix Asphalt Materials
RFQ #185945
Proposed Length of Project Three years
Total Days to Respond to Bid 17
Pre-Bid Meeting No
Number of Responsive Bids Received:1
Base Bid Price Range $1,499,505
The unit prices in the bid have increased significantly compared to the fixed prices for Fiscal
Years 2021-2023 under the current blanket purchase order. Under the recommended blanket
purchase order, the cost of materials has increased by roughly 35%, attributed to inflation and
overall rise of cost in commodities. Due to this increase in cost, staff recommends a total
blanket purchase order in the amount of $500,000 annually for a total not-to-exceed amount of
$1,500,000, whereas the existing blanket purchase order had a total not-to-exceed amount of
$1,200,0001. Table 2 compares the total annual contract prices for Fiscal Years 2023 and 2024.
1 City Council, November 2, 2020; Agenda Item #2 ; SR#11578,
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2020-2/id-11578.pdf
1
6
2
2
Table 2: Contract Price for Fiscal Year 2023 and 2024
Approx.
Qty. (Tons)Description
FY23
Unit
Price
FY24
Total
Price
FY23
Unit
Price
FY24
Total
Price
1,000 Asphalt Concrete ¾", medium $98.40 $98,400 $124.60 $124,600
2,000 Asphalt Concrete, ½", fine $101.40 $202,800 $125.78 $251,560
100 Asphalt Concrete, 3/8”, fine $111.90 $11,190 $128.45 $12,845
300 Asphalt Concrete, ¼”, fine $112.90 $33,870 $129.55 $38,865
100 Asphalt Concrete, Sheet Asphalt $124.40 $12,440 $130.65 $13,065
1,000 Track Coat, SS-1H $10.45 $10,450 $8.90 $8,900
Total $369,150 $499,835
Staff recommends that Council authorize the blanket purchase order for Hot Mix Asphalt with
Granite Rock Company as the primary supplier. Granite Rock Company has been the supplier
under previous blanket purchase orders, and staff has consistently received product that
met both state and the City’s standards for consistent temperature and aggregate size.
FISCAL/RESOURCE IMPACT
Funding for the purchase of material under this blanket order is available in the Fiscal Year 2023
Adopted Public Works and Utilities Department operating budgets. Staff recommends that
Council approve the not-to-exceed amount of $500,000 per year; however, actual spending is
dictated by need and will be controlled by each department. The bid table that Granite Rock
Company submitted represents a menu of available asphalt products with unit pricing2. Utilities
and Public Works estimate annual needs of $135,000 and $365,000, respectively. Staffing levels
and planned work deferments may impact those estimates and will be considered before
expending the funds. Funding for contract years two and three are contingent upon Council
approval of each department’s budget for each subsequent year.
STAKEHOLDER ENGAGEMENT
Stakeholder engagement for the recommended blanket order was limited to the procurement
process for reaching out to prospective bidders.
2 Granite Rock Co. Bid Form; https://www.cityofpaloalto.org/files/assets/public/public-works/public-
services/contracts/attachment-a-granite-rock-co.pdf
1
6
2
2
ENVIRONMENTAL REVIEW
This purchase is exempt from the California Environmental Quality Act under the CEQA
guidelines (Sections 15061 and 15301(c)).
APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer