Item 4 - Resolution to Award Bid to Vulcan Materials for Portions of Bid, Terminate Portions of Bid & Authorize Purchase of Materials; RFP No. 23-006DATE:
TO:
FROM:
CONTACT:
SUBJECT:
Summary:
AGENDA RE PO RT City of Poway
CITY COUNCIL
February 21, 2023
Honorable Mayor and Members of the City Co~ncil
Eric Heidemann, Director of Public Works tz
Will Wiley, Assistant Director of Public Works for Maintenance Operations ~./
(858) 668-4705 or wwiley@poway.org '/ JV
Resolution to Award Bid to Vulcan Materials Company for Portions of the Bid,
Terminate Portions of the Bid, and Authorize Open Market Purchase or
Competitive Negotiations for Asphalt, Aggregates and Related Materials; Bid No.
23-006
A request for bid (RFB) for Asphalt, Aggregates and Related Materials, Bid No. 23-006, was duly
advertised on December 8 and December 15, 2022. Bid specifications allowed the City of Poway (City)
to award one or more of each material bid to the same vendor or separate vendors and to reject any
or all bids or all items. One (1) bid was received and opened on January 19, 2023. The bid received
included pricing for 15 of the 19 items. Staff reviewed the bid and determined Vulcan Materials
Company to be responsible and responsive.
The length of the sale and purchase of goods and materials contract (contract) is one (1) year
beginning February 22, 2023. The contract may be extended annually dependent on Council
appropriation of funds for up to four (4) additional one (1) year terms, for a maximum total contract
length of five (5) years. In accordance with Poway Municipal Code sections 3.28.070 (E) and 3.28.080
(G), Council may adopt the Resolution authorizing open market purchase for the items not bid, which
were crushed coarse washed aggregate for Portland cement concrete (bid items 9 and 15) and sand
for Portland cement concrete (bid items 11 and 17).
Recommended Action:
It is recommended City Council:
(1) Adopt the Resolution terminating portions of the bid and authorizing an open market purchase
or competitive negotiations for the four (4) bid line items that did not receive bids;
(2) Award the bid for asphalt aggregates and related materials to Vulcan Materials Company for bid
items 1-8, 10, 12-14, 16, and 18-19;
(3) Authorize an appropriation totaling $163,000.00 from the General Fund Unassigned Fund Balance
(Fund 1000); and
(4) Authorize the City Manager to execute any necessary documents.
1 of 14 February 21, 2023, Item #4
Discussion:
In order for Public Works staff to maintain the City's streets and infrastructure, the purchase of asphalt
and related materials is necessary. This contract will provide supplies and materials for the annual
asphalt program and as-needed material purchases for various divisions within Public Works. Asphalt
products will be picked up from the plant by City vehicles and/or contract trucking, as well as delivered
by the vendor to the jobsite or the Public Works Materials Handling Yard.
On December 8 and December 15, 2022, staff duly advertised an RFB. The RFB was advertised on the
City's website, online bid portal, and in the local newspaper. In addition, staff contacted three (3)
vendors regarding the bid opportunity. One (1) bid was received and opened on January 19, 2023. A
summary of the bid received is provided in Tables 1 -4 below and on the following page.
Table 1: Vulcan Materials Company Bid Summary-Product for Annual Asphalt Program
ITEM DESCRIPTION ESTIMATED UNIT UNIT PRICE TOTAL NO. QUANTITY
1. 3/4" Asphalt Base Course 500 TON $104.36 $52,180.00
2. 1 /2" Asphalt Surface Course 3,000 TON $104.36 $313,080.00
3. 3/8" Asphalt Surface Course 1,000 TON $115.14 $115,140.00
4. Asphalt Skin Patching Sheet 200 TON $115.14 $23,028.00 Mix
5 Berm Mix 200 TON $131.30 $26,260.00
6. 3/8" Cold Mix 300 TON $131.30 $39,390.00
Table 2: Vulcan Materials Company Bid Summary -Disposal
ITEM DESCRIPTION QUANTITY UNIT TOTAL NO.
7. Asphalt/ Concrete Disposal 1 EA $1,000.00 10YDDUMP
Table 3: Vulcan Materials Company Bid Summary -Product and Delivery
ITEM DESCRIPTION ESTIMATED UNIT UNIT PRICE TOTAL PRICE
NO. QUANTITY DELIVERED
8. 3/4" Crushed Coarse 50 TON $46.94 $2,347.00 Aggregates
3/4" Crushed Coarse Washed No Bid No Bid 9. Aggregate for Portland 100 TON Submitted Submitted Cement Concrete
10. Sand / Fine Aggregate 100 TON $39.40 $3,940.00
11. Sand for Portland Cement 50 TON No Bid No Bid
Concrete Submitted Submitted
12. Crushed Aggregate Base 400 TON $52.33 $20,932.00
13. Class II Recycled Base 500 TON $22.78 $11,390.00
2 of 14 February 21, 2023, Item #4
Table 4: Vulcan Materials Company Bid Summary -Product Only
ITEM DESCRIPTION ESTIMATED UNIT UNIT PRICE TOTAL PRICE NO. QUANTITY
14. 3/4" Crushed Coarse 50 TON $28.94 $1,447.00 Aggregates
3/4" Crushed Coarse Washed No Bid No Bid 15. Aggregate for Portland Cemen 100 TON Submitted Submitted Concrete
16. Sand / Fine Aggregate 100 TON $21.40 $2,140.00
17. Sand for Portland Cement 50 TON No Bid No Bid
Concrete Submitted Submitted
18. Crushed Aggregate Base 400 TON $34.33 $13,732.00
19. Class II Recycled Base 500 TON $12.78 $6,390.00
It is recommended the bid be awarded to Vulcan Materials Company for the materials and services as
outlined in the bid summary tables. Due to increased materials and service costs, the estimated cost
of asphalt and materials required for the annual asphalt program is $591,200.00. This will exceed the
current available budget of approximately $428,200.00. Staff is requesting an appropriation in the
amount of $163,000.00 to cover the annual asphalt program for Fiscal Year 2022-23. The asphalt and ' materials purchased for the asphalt program will be monitored, not to exceed the amount requested.
Funds for subsequent fiscal years will be included in the annual budget process for Council
consideration. Staff is requesting open market purchases to be approved for the remaining four (4)
material items not bid. Open market purchases would allow staff to secure competitive quotes on a
case-by-case and as-needed basis for the remaining materials.
Environmental Review:
This action is not subject to review under the California Environmental Quality Act (CEQA).
Fiscal Impact:
The Fiscal Year 2022-23 Streets Division budget (411040-43201) includes $428,213.21 for the annual
asphalt program. An appropriation is being requested from the General Fund Unassigned Fund
Balance (Fund 1000) to cover the remaining amount of $163,000.00 for the initial year of the
agreement due to increased material costs. Amounts for subsequent fiscal years will be included in
the annual budget process for Council's consideration.
There is sufficient funding available in the following divisions' operating budgets for as-needed
asphalt, aggregate and purchase of related materials: Water Transmission and Distribution (402560-
47600); Wastewater Collection (403570-47600); Street Maintenance (411040-45900); Stormwater and
Flood Control (412040-47600); Park, Trail and Landscape Maintenance (414040-47600). Amounts for
subsequent fiscal years will be included in the annual budget process for Council's consideration.
Public Notification:
None.
3 of14 February 21, 2023, Item #4
Attachments:
A. Resolution
B. Contract
Reviewed/Approved By:
Assistant City Manager
4 of 14
Reviewed By:
Alan Fenstermacher
City Attorney
Approved By:
cff!!.2
City Manager
February 21, 2023, Item #4
RESOLUTION NO. 23-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
POWAY, CALIFORNIA, TERMINATING PORTIONS OF BID NO.
23-006 FOR ASPHALT, AGGREGATES AND RELATED
MATERIALS AND DIRECTING STAFF TO PROCEED WITH
OPEN MARKET PURCHASING OR COMPETITIVE
NEGOTIATIONS
WHEREAS, the City of Poway did duly advertise for bids for Asphalt, Aggregates and
Related Materials, Bid No. 23-006;
WHEREAS, the deadline to receive bids for asphalt, aggregates and related materials was
2:00 p.m. on January 19, 2023;
WHEREAS, no bids were received for four (4) of the 19 items by the City on or before the
deadline;
WHEREAS, pursuant to Poway Municipal Code Section 3.28.070 (E) and 3.28.080 (G),
the City Council may reject all bids or part thereof, and re-advertise for bids, or, in the event no
bids are received, the City Council may follow the procedures set forth in Public Contract Code
Section 20166 and 20167, and waive formal bidding and authorize the Director of Finance or
designee to proceed with purchasing materials through the open market process or competitive
negotiations; and
WHEREAS, due to the City receiving no bids for specific aggregate materials through
formal bidding procedures, the City Council believes it to be in the best interest of the City to
proceed with the purchasing of these materials through either open market purchasing or
competitive negotiations with one or more vendors.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as
follows:
SECTION 1: The City Council hereby finds that after fully complying with the City's
purchasing ordinance, no bids were received for four (4) items (9, 11, 15 and 17) in the Asphalt,
Aggregates and Related Materials, Bid No . 23-006.
SECTION 2: The City Council hereby terminates the bid process for the four (4) items in
the Asphalt, Aggregates and Related Materials bid and authorizes the Director of Finance or
designee to proceed with the purchase of materials for the project through either open market
purchasing or competitive negotiation with one or more vendors, such procedure to be determined
at the sole discretion of the Director.
SECTION 3: This Resolution shall require a four-fifths vote of the City Council.
5 of 11 ATTACHMENT A February 21, 2023, Item #4
Resolution No. 23-
Page 2
PASSED, ADOPTED AND APPROVED at a regular Meeting of the City Council of the
City of Poway, California on the 21st day of February, 2023 by the following vote, to wit:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
Steve Vaus, Mayor
ATTEST:
Carrie Gallagher, CMC, City Clerk
6 of14 February 21, 2023, Item #4
CONTRACT FOR THE
SALE AND PURCHASE OF GOODS AND MATERIALS
This Contract, entered into this 22nd day of February, 2023, by and between the
CITY OF POWAY, a general law city and municipal corporation (the "City"), and VULCAN
MATERIALS COMPANY, an Alabama corporation (the "Seller").
1. Sale and Purchase.
Seller will sell, transfer and deliver to City, and City will accept and purchase
from Seller at the locations identified in Section 5, below, and in Bid Schedule, attached
hereto as Exhibit "A" and made part hereof, all of the goods, materials and other items in
such quantities as City may require, of such specified sizes, quality and types,
classifications, and minimum order for each shipment, as defined by the Department of
Public Works, and as are identified in Bid Schedule.
The initial length of the City of Poway contract will be one (1) year, beginning
February 22, 2023, and ending on February 21, 2024. This contract may be extended for
up to four (4) additional one-year periods upon approval in writing of the City Manager
and Seller.
3. Price.
Seller agrees to invoice the goods and services, as it may apply, sold at the
prices identified in Bid Schedule for the first year of the contract, with an escalation of
price in the second year of the contract based on the following:
Asphalt Products: If a price increase is requested, prices will be negotiated by City
and Contractor based on the annual change in the previous calendar year's California
Statewide Crude Oil Price Index published by CalTrans, or other similar industry index.
Any negotiated price increases will be capped at 10%. The first adjustment would occur
no earlier than February 21, 2024.
Aggregate, Sand, and Other Materials: The annual change in the previous
calendar year's Consumer Price Index for the San Diego area (All Urban Consumers CPI-
U) or 5% whichever is less. The first adjustment would occur no earlier than February 21,
2024, and would be based on the change in the San Diego Region Consumer Price Index
for the previous calendar year.
7 of 14 ATTACHMENT B February 21, 2023, Item #4
4. Payment.
The City shall make payment within 30 days of receipt of invoice after
delivery of product. Payment shall be considered as having been made upon the date
such payment is deposited in the U.S. Mail, first-class postage pre-paid and addressed
to Seller.
5. Delivery.
The goods identified in the Bid Schedule will be delivered in accordance
with the Bid Specifications.
6. Supply and Output Capability of Seller.
If Seller is unable for any reason to supply City's requirements, Seller shall
immediately notify City and provide its best estimate of the delivery and installation, as it
may apply. City may, at its sole and exclusive option, notify Seller in writing of City's
decision to terminate the order without liability. If the inability to supply City with its needs
is not due to the negligence or faults of Seller, and Seller has notified City in writing as
soon as Seller discovers the circumstances necessitating a revised delivery date, the
termination of the order shall not entitle City to any damages.
7. Claims.
The shipment will be FOB Poway, CA at the address set forth in Section 5
above, and all delivery charges and claims for damage in route are the responsibility of
the Seller. Evident damage to any shipment will be indicated by a notation, which
will, with the exception of concealed damages, be made by the carrier's agent on the
delivery receipt before the receipt is signed for acceptance. The notation must clearly
specify the extent of damage. Concealed damage must be reported to the carrier within
15 days of delivery.
8. Assignment and Delegation: Successors.
Neither Seller nor City shall assign any rights or delegate any obligations to
the Contract without express written approval and acceptance of the other party. Any
such assignment or delegation without express written approval and acceptance shall be
null and void.
All terms, conditions and provisions of this Contract, the Seller's Bid, and
the Poway RFP shall inure to and bind each of the parties hereto, and each of their
successors in interest, executors, and administrators.
8 of 14 February 21, 2023, Item #4
9. Indemnification.
Seller agrees to indemnify, defend by an attorney of the City's own choice,
and hold harmless, the City, and its elected and appointed officers, agents and employees
(the "lndemnitees") against any and all liabilities, claims, actions, causes of action,
proceedings, suits, damages, judgments, liens, levies, costs and expenses of whatever
nature, including reasonable attorneys' fees and disbursements (collectively "Claims"),
which lndemnitees may suffer or incur or to which lndemnitees may become subject by
reason of or arising out of any injury to or death of any person(s), damage to property,
loss of use of property, economic loss or otherwise occurring as a result of or allegedly
caused by the City's use of the product or installation services sold by seller to City,
provided that City has not altered or tampered with such product in any way and has used
such product in accordance with Seller's or manufacturer's instructions and warnings.
If any action or proceeding is brought against lndemnitees by reason of any
of the matters against which Seller has agreed to indemnify lndemnitees as provided
above, Seller, upon notice from City, shall defend lndemnitees at Seller's expense in the
manner set forth above in this Section 9. lndemnitees need not have first paid for any of
the matters to which lndemnitees are entitled to indemnification in order to be so
indemnified. The insurance required to be maintained by Seller shall ensure Seller's
obligations under this section, but the limits of such insurance shall not limit the liability of
Seller hereunder. The provisions of this section shall survive the expiration or earlier
termination of this Contract.
The provisions of this section do not apply to Claims occurring as a result
of this City's sole negligence or willful acts or omissions.
The parties agree to cooperate fully in the resolution of any claims for such
liability, loss or damage.
10. Seller's Insurance.
The City shall be named as an additional insured with the bidder. Refer to
the Insurance Code of the State of California. Evidence shall be furnished that the
requirements of said code are met. Unless specified otherwise, the minimum
requirements are as follows:
9 of 14
a. Comprehensive General Liability: $1,000,000 Bodily Injury & Property
Damage combined each occurrence and $2,000,000 aggregate;
b. Automobile Liability, including owned, hired, and non-owned vehicles:
$1,000,000 Combined Single Limit coverage;
c. Workers' Compensation insurance: Per the statutory amount.
Each policy is to provide primary coverage to City and its elected and
February 21, 2023, Item #4
appointed boards, officers, agents, and employees. It is not secondary or in any way
subordinate to any other insurance or coverage maintained by City.
Upon request by City prior to the time of Award of Contract, the bidder
agrees to promptly provide City with letters from insurance companies meeting the
requirements of the contract documents verifying that they are prepared to issue
insurance to bidder meeting all requirements of the contract documents.
The failure of bidder to provide City with insurance meeting all requirements
of the contract documents within 15 calendar days after the Award of Contract shall
constitute a material breach of the contract, entitling City to terminate the contract.
All bonds and all insurance shall meet the following standards. The issuing
company:
a. Shall be an "admitted surety" or an insurance company listed by the
State Insurance Commissioner; and
b. Shall have a rating in the latest Best's Rating Guide of "A-" or better and
Class VI or better; or be "treasury listed" for the size of risk to be
undertaken.
In the event that the company does not satisfy subsection (b) above, the
City Attorney or City Manager may only approve such company if the small size of the
insurance or surety obligation or other risk factor justify approval, and satisfactory
evidence is produced by the company that its financial responsibility and performance
capability are sufficient to insure or secure adequately the risk obligation (See City
Council Resolution 90-082).
11. Integration.
The terms of this Contract are intended by the parties to be the final
expression of the parties' agreement with respect to such terms and also as a complete
and exclusive statement of such terms. There are no oral or written agreements other
than this Contract, and the Seller's Bid. However, in the event of any conflict between
the written expressions of this Contract and the Seller's Bid, the terms and interpretations
given to the provisions of this writing shall prevail.
12. Applicable Law.
The order shall be governed by the laws of the State of California. Any legal
action brought to enforce the terms and conditions of this Contract shall be filed in a court
of competent jurisdiction with San Diego County. Seller hereby waives any right to
remove any action from San Diego County as is otherwise provided in California Code of
Civil Procedure Section 394. In the event any legal action is taken by either party to this
Contract, the prevailing party shall be entitled to recover reasonable attorney fees and
court costs from the other party.
10 of 14 February 21, 2023, Item #4
IN WITNESS WHEREOF, the parties hereto have duly executed this
Contract on the date first above written.
CITY OF POWAY
By:------------Chris Hazeltine, City Manager
Date: -----------
ATTEST:
Carrie Gallagher, CMC, City Clerk
APPROVED AS TO FORM:
By: __________ _
Alan Fenstermacher, City Attorney
11 of 14
VULCAN MATERIALS COMPANY
By:-------------
David A. Church, Sales Analyst II
Date: ------------
February 21, 2023, Item #4
EXHIBIT "A"
PROPOSAL TO THE CITY OF POWAY, CALIFORNIA
Pursuant to and in compliance with the notice inviting sealed bids, the undersigned
bidder proposes and agrees to supply:
ASPHALT, AGGREGATES AND RELATED MATERIALS
Bid No. 23-006
in accordance with these specifications, instructions and conditions to the City of Poway
in the time, form and manner provided by law at the bid prices herein.
Firm Name: Vv\. / C;). n ·1;1\ct f eri':~ k (~ 'j"' f 0 {1\;\ ~/t~/ _} By: (signature)
Name and Title:
{Please print)
Address:
Telephone:
Fax:
Email Address:
A
I O(Jrs-J
Company State of California Business Registration Number: 3 0 9 3 L 7 'o
Please use https://businesssearch.sos.ca.gov/
12 of 14 February 21, 2023, Item #4
EXHIBIT "A" BID SCHEDULE
CITY OF POWAY
ASPHALT, AGGREGATES AND RELATED MATERIALS
Bid No. 23-006
The City reserves the right to award asphalt products, asphalt / concrete disposal and
aggregate materials to separate vendors.
TABLE1:PRODUCT
ITEM DESCRIPTION ESTIMATED UNIT UNIT PRICE NO. QUANTITY TOTAL
1. 3/4" Asphalt Base Course 500 TON $~.2~-$ S:2.,; f5◊-,
2. 1/2" Asphalt Surface Course 3,000 TON $J0L/1_¼_ $--2.l.1..Ql(Q.=_
3. 3/8" Asphalt Surface Course 1,000 TON $J ~.l.:L_ $jlJ , jL-i{J-
I
4. Asphalt Skin Patching Sheet 200 TON $ 115 ,I~ $ 27:),0 l.~--Mix V
5 Berm Mix 200 TON $ .J.3.L3.o_ $ 2.6, 2.60 --r-
6. 3/8" Cold Mix 300 TON $ ' .3.l.._3.Q 1 --$ .... 3.9.; 3 <J. 0 .-
TABLE 1 TOTAL BID IN FIGURES:£._$ __::5:.::.......::0:__· l..1,I ,-; ...::O:.......J.7~3 ..!.., _0.::....;:(J;....' ---------
TABLE 1 TOTAL BID IN WORDS: ____,F_-_;\_,t._. _ _,_H ::...:½=" {lc...:...>L;QC...:...(-'-<e,'-><J .__---=5:::....· .....:i x.::....t.,_3-1-· _-..... N .... · lc..:...r ..:....:, t-~:...._.....:T....:.h.:...:c:_\,::...:l ~=J..:..c.,1...;..,-='
_.S~e."-"v--"'e-'-11'--t-3_---'-f;:.---'-(J"-"\!+'-h-'--t-'-. __ DOLLARS and __ ......,M ....... oL _______ CENTS
Please nqte any additional cost to dump clean asphalt grinds:$ _____ _
per I oat.\ . This will be taken into consideration for the total bid pricing.
TABLE 2: DISPOSAL
ITEM DESCRIPTION QUANTITY UNIT I TOTAL NO.
7. Asphalt/ Concrete Disposal 1 EA I $ _4QQQ.l.QD 10 YD DUMP
TABLE 2 TOTAL BID IN ;..;Fl...::G...::U...:...R=E=S;_,;:$ _ ___,,,L,.......,,Q.,_1.....;o_o~,,.....,_C ... 1 .... C~---~-------
TABLE 2 TOTAL BID 1N woRDs:_---'C~)~;_..1 __ ~"-----➔l------h ...... o .... \A. .......... '2 ..... 0__,__n ..... J ..... · ______ _
-----~------DOLLARS and n/4., CENTS
13 of 14 February 21, 2023, Item #4
EXHIBIT "A" BID SCHEDULE {Page 2)
TABLE 3: PRODUCT AND DELIVERY
ITEM DESCRIPTION ESTIMATED UNIT UNIT PRICE TOTAL PRICE
NO. QUANTITY DELIVERED
8. 3/4" Crushed Coarse 50 TON i lj '.Ct ~ $ 2.3~7 -Aggregates
3/4" Crushed Coarse Washed
9. Aggregate for Portland Cement 100 TON $ -$ -
Concrete
10. Sand I Fine Aggregate 100 TON $ 3~.~' $ ~3. CL '-I u -
11. Sand for Portland Cement 50 TON $ -$ -
Concrete
12. Crushed Aggregate Base 400 TON $ 52,13 $ 20 , ~ 22--T
13. Class II Recycled Base 500 TON $ Z2J 'i5 $ 11, 3 j o ·-
TABLE 3 TOTAL BID IN FIGURES: $ 3 7.) 1 0 0 9 ---=-..:;...;., --'----------------
TABLE 3 TOTAL BID IN WORDS: _·..:...1...:.h-'-',..!...·,r_t:J..c.,(,· ..... -__...[,_,_.:)-=+d...,_'.).._f _ ..... T _h ..:;.c --""·-1 ...._:,i:1;,a..;" ·l...._10:....i..·1 _--"-'S--'-'ix ..... · _ .... -H'-'\A"-'t_,_1,...d-'r e .... ,_!
__ {\_J..._//J ........ f __ , ________ DOLLARS and ----'-Af'-'-,,_', ________ CENTS
TABLE 4: PRODUCT ONLY
ITEM DESCRIPTION ESTIMATED UNIT UNIT PRICE TOTAL PRICE
NO. QUANTITY NOT DELIVERED
14. 3/4" Crushed Coarse 50 TON $ 2 g, 9'-/ $ l .t./i./l ~ Aggregates
3/4" Crushed Coarse Washed
15. Aggregate for Portland Cement 100 TON $ -$ ----
Concrete
16. Sand I Fine Aggregate 100 TON $ 2 1.~o $ 2.i i.f 6 ·-
17. Sand for Portland Cement 50 TON $ -$ -Concrete
18. Crushed Aggregate Base 400 TON $ 34,.33 $15 :73 2-,.
19. Class II Recycled Base 500 TON $ l 2,1g $_4"3i0
TABLE 4 TOTAL BID IN FIGURES: $ L 3 · 7 0 9 , (J Q -----;---'-~~-------------
TABLE 4 TOTAL em IN woRDS: T we,aJ.9 -Th ,'"e,\,, l hov.:xtv1 d .Seven
/1 y(")dr e, d A I~'() e, DOLLARS and 1/4 CENTS ' ---~~--------
BIDDER'S TITLE: 5J It 5 A n11 !ys f J(-
sIGNATURE: ~/!:~--DATE: I lief /2-3 p-
14 of 14 February 21, 2023, Item #4