| | | | | | | | Agenda Item - 4.d.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C. Stiles
| From: | William E. Murray
| | Dept.: | Public Works
| Dept.: | Public Works
| | Subject: | Authorize the issuance of purchase orders to All American Asphalt, Vulcan Materials, and R.J. Noble for asphalt products on an as-needed basis. (Cost: $600,000) (Action Item) | Date: | 10/23/2018 |
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| | | | | | | | OBJECTIVE
For the City Council to authorize issuance of a five (5) year purchase order to All American Asphalt, Vulcan Materials, and R.J. Noble in the amount of $600,000 per year. |
| | | | | | | | BACKGROUND
The City currently has purchase orders for All American Asphalt, Vulcan Materials, and R. J. Noble in the amount of $600,000 per year that will expire on October 31, 2018. The current purchase orders are used to obtain asphalt products on an as-needed basis. |
| | | | | | | | DISCUSSION
These three local vendors are the only vendors in close proximity to provide the City with reliable hot-mix asphalt at the required temperature on an as-needed basis. The cost of asphalt fluctuates constantly due to crude oil prices, demand, supply, and new plant technologies. These factors are clearly denoted in previous price quotes. To secure the lowest cost, staff requests quotes from each vendor for every project. Therefore, staff is recommending issuing a five (5) year blanket purchase order in the amount to $600,000 per year to continue funding on-going street improvement projects. |
| | | | | | | | FINANCIAL IMPACT
The three (3) combined purchase orders will not exceed $600,000 per year. Funding has been allocated in the Public Works Department Budget. |
| | | | | | | | RECOMMENDATION
It is recommended that the City Council:
- Authorize the City Manager or his designee to issue a five (5) year blanket purchase order for three (3) vendors for asphalt products in the firm and fixed amount of $600,000 per year; and
- Authorize the City Manager to review and approve annual renewals, provided that sufficient funds are budgeted for renewal.
By: Brent Hayes
Public Works Supervisor
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