City Council
MEETING DATE: 7/22/2015
TITLE:
Title
Contract Award to Petrochem Manufacturing Incorporated for Central Mix Type II Rubberized Emulsion Aggregate Slurry (REAS), Tanks, Pumps and Personnel for the East Palm Canyon Drive Preventive Maintenance Project.
End
FROM:
Pat Milos, Community Development Director
RECOMMENDATION:
Recommendation
Staff recommends the City Council approve the award of a contract to Petrochem Manufacturing, Inc. (PMI) in the contract bid amount of $223,155.00 to furnish Type II REAS; authorize the City Engineer to issue a Notice of Award and request bonds and insurance for the project; and authorize the City Manager to execute the contract.
Body
BACKGROUND:
On March 25, 2015, Council approved a Cost Effective/Public Interest Finding that it best serves the City to contract with PMI to provide Type II Central Mix REAS to be furnished to a licensed contractor for application on East Palm Canyon from the West City Limits (Golf Club Drive) to 550 feet west of Canyon Plaza Drive and from Melrose Drive to the East City Limits.
DISCUSSION:
PMI is the sole supplier of Type II Central Mix REAS in Southern California. They also supply agitated storage tanks, and pumpers with personnel to operate the pumpers. PMI and the City of Los Angeles have previously entered into a contract that required PMI to offer to other governmental agencies the same pricing received by Los Angeles, for purchase of the Central Mix and rental of the agitated storage tankers. The Los Angeles price is the lowest price available for the REAS product.
FISCAL IMPACT:
On June 9, 2015, bids were opened for the application of the REAS product. On June 22, 2015, Council approved a contract with Pavement Coatings Company to apply the REAS product and complete the striping and pavement markings on East Palm Canyon Drive. The Pavement Coatings contract amount is $165,400, bringing the total cost for the project to $388,555. Pavement Coatings bid $523,300 to furnish and apply the REAS product when the project was first bid in February. By direct purchasing the REAS, the City will save nearly $135,000.
The CIP budget approved for the East Palm Canyon project is $380,614.Staff is requesting an additional $33,000 to cover the REAS purchase and the contingencies needed for the construction contract.
Staff time will be required to perform project oversight management and other related services.
Additional funds will be required to provide construction inspection and materials testing. The funding identified below includes $2,500 for these costs.
Adequate funding is available to support the award of the contract and contingency required to complete the project.
|
Fund |
Account No. |
Amount |
Budget |
|
Caltrans |
331-8901XXX |
$336,680.00 |
Capital/Existing |
|
Gas Tax |
241-8901-XXX |
$76,875.00 |
Capital/Existing |
ATTACHMENTS:
PMI Purchase Contract