Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Ann M. Stillman, Interim Director, Department of Public Works
Subject: Vendor Agreements with Granite Rock and Reed & Graham, Inc., for Asphaltic Road Materials
RECOMMENDATION:
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Adopt a resolution:
A) Authorizing the Purchasing Agent to establish vendor agreements with Granite Rock and Reed & Graham, Inc., for the provision of asphaltic road materials for the term of five years in an amount not to exceed $1,000,000 per year per vendor agreement; and
B) Authorizing the Purchasing Agent to execute subsequent amendments and minor modifications.
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BACKGROUND:
On November 1, 2016, this Board adopted Resolution No. 074867, which authorized the establishment of vendor agreements with Granite Rock and Reed & Graham, Inc., for the provision of asphaltic road materials.
The County of San Mateo's Ordinance 2.83.050 (e) allows this Board to waive the Request for Proposals (RFP) process in any situation where this Board determines that a formal process would not be in the best interest of the County.
DISCUSSION:
The Department of Public Works Road Maintenance Division (Division) performs routine maintenance and emergency repairs on approximately 315 miles of County-maintained roadway. Routine maintenance is performed to preserve and extend the lifespan of the roadway and manage the rate of deterioration of the roadway until more extensive road treatments can be applied. Without maintenance treatments such as crack sealing, pothole repair, chip sealing, oil and sanding, and asphalt patching, roads would deteriorate more rapidly and would require costly surface treatments, roadway resurfacing, or reconstruction.
Granite Rock and Reed & Graham, Inc. are the only two vendors on the Peninsula who can supply large quantities of asphaltic materials in the quantities that can meet both the Department’s requirements (County Specifications and California Department of Transportation’s Specifications) and the timeframe needed to complete repairs.
Because of the large fluctuations in the cost of the asphaltic materials, neither Granite Rock nor Reed & Graham, Inc. will agree to a preset price for volume purchases.
The Department purchases most of its asphaltic materials from Granite Rock, located in Redwood City. The cost of transporting asphaltic materials from Reed & Graham, Inc. in San Jose is only cost effective when Granite Rock cannot provide these materials in a timely manner.
Staff recommends that this Board find that it is in the County's best interest to waive the Request for Proposals process for these vendor agreements.
County Counsel has reviewed and approved the resolution as to form.
FISCAL IMPACT:
The purchase of asphaltic road materials will be funded by Road Funds. There is no impact to the General Fund.