Staff recommends the City Council adopt a resolution to approve a purchase order with CalMat Co. dba Vulcan Materials as the lowest responsive and responsible bidder for the purchase of asphalt products in response to RFQ 10-3301.

The bid allowed for four optional renewal years at one-year intervals. Staff requests authorization to continue utilizing the remaining optional renewal years without further Council approvals until the contract expires or until City staff determines that continuing with the same vendor is not in the City's best interest.

Various City departments, including the Public Works Department's Street Maintenance Division and the Environmental Utilities (EU) Department's Water and Wastewater Divisions, have ongoing requirements for asphalt products. The Street Maintenance Division uses asphalt materials for street repair work, to include: routine maintenance, emergency pothole repairs, and preparing streets for resurfacing projects. The EU Water Division uses asphalt products for street patching due to utility maintenance and water service line repairs, and the Wastewater Division uses asphalt products for trench patching repairs.

Bidders were asked to quote “will call” pricing for the asphalt products. The purchases will be made on an as-needed basis throughout the City’s fiscal year. The difference between the estimated annual spend of $420,000 and the bid total of $821,300 is because the estimated annual usage in the bid specification reflects the potential for higher than usual requirements if needed.

After evaluating all of the bid submittals, Vulcan Company was deemed the lowest responsive bidder because the bid award is based on the lump sum total of all asphalt products, and none of the other bidders were able to supply all of the specified asphalt products. Therefore, they were deemed non-responsive.

A formal bid was issued with the following vendor responses:

Vendor                                                           Total

Vulcan Materials Company                         $821,300.00 + $5 per load environmental fee
Roseville, CA

Vulcan Materials Company                            $903,500.00 + $5 per load environmental fee
Grass Valley, CA

Granite Construction Co.                               $658,250.00
Sacramento, CA

Syar Industries, Inc.                                       $23,266.25
Napa, CA

The estimated total annual spend is $420,000 for FY2021-22 contingent upon Council approval of budgets. Funding is included in the proposed FY2021-22 budget for the Street Maintenance Division in the General Fund, Gas Tax Fund, and Highway Users Tax Fund. Funding for Environmental Utilities' Water Division is included in the Water Rehabilitation Fund budget and funding for the Wastewater Division is included in the Wastewater Rehabilitation Fund budget.  Spending for future renewals will be contingent upon Council approval of budgets. Estimated spending for the optional renewal years is as follows: FY2022-23, $444,000; FY2023-24 $468,400; FY2024-25 $493,240; FY2025-26 $518,564.

The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378.  Approval for the purchase of asphalt meets the above criteria and is not subject to CEQA. No additional environmental review is required.

Goal F - Invest in well-planned infrastructure and growth

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Dominick Casey, City Manager