TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute a contract, and any necessary documents including any necessary amendments, with Petrochem Manufacturing, Inc., of Carlsbad, CA, for furnishing and delivering as-needed premix rubberized emulsion aggregate slurry (REAS) and related equipment, on the same terms and conditions afforded to the City of Los Angeles, in an annual amount of $1,000,000, with a 20 percent contingency in the amount of $200,000, for a total annual contract amount not to exceed $1,200,000, until the City of Los Angeles contract expires on December 31, 2022, with the option to renew for as long as the City of Los Angeles contract is in effect, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with Petrochem Manufacturing, Inc. (PMI), for the furnishing and delivery of as-needed premix REAS and related equipment as part of the City of Long Beach’s (City) operating expenses for the repair and maintenance of City roads. PMI will not participate in any City construction project beyond provision of premix REAS slurry and related equipment.
The Public Works Department (Public Works) researched procurement options for as-needed premix REAS and related equipment and discovered other agencies had completed an open, fair, transparent, and competitive procurement process. This research affirmed that the contract between the City of Los Angeles and PMI provided the best value to the City.
PMI was selected based on their competitive pricing, service level, and quality of their product. PMI has a mixing plant within a ten-mile radius of Long Beach. PMI meets the capacity requirements to provide the necessary resources for Public Works to order as-needed slurry and equipment for projects and job-related duties.
Slurry sealing is a method of applying a thin layer of asphalt emulsion and aggregate to pavement to seal minor imperfections, restore the street surface, and protect the underlying pavement. REAS differs from conventional slurry in that crumb rubber is blended into the asphalt emulsion at ambient temperature during the production process. Although the cost of REAS is higher than conventional slurry, the advantages include an approximate 50 percent increase in longevity, long lasting color contrast for striping and marking, and high skid-resistance. In addition, REAS uses rubber crumb from more than seventy-eight waste tires per lane mile, thereby diverting waste tires from traditional disposal.
City Charter Section 1802 provides an alternative procurement method by permitting the City to purchase or otherwise obtain services, supplies, materials, equipment, and labor with other governmental agencies. This alternative procurement method can save time and reduce costs through economies of scale by purchasing under existing contracts from other government agencies on a voluntary and selective basis when authorized by a Resolution adopted by the City Council.
This matter was reviewed by Deputy City Attorney Erin Weesner-McKinley and Purchasing Agent Michelle Wilson on March 15, 2022, and by Budget Management Officer Nader Kaamoush on March 18, 2022.
TIMING CONSIDERATIONS
City Council action to adopt a Resolution and award a contract concurrently is requested on April 5, 2022, to ensure the contract is in place expeditiously.
FISCAL IMPACT
The total annual amount of the contract will not exceed $1,200,000, inclusive of the 20 percent contingency. Sufficient appropriation to support the annual contract amount is budgeted in the General Fund Group and the Capital Projects Fund Group in the Public Works Department. Any work not currently budgeted will only proceed at such time that appropriations have been approved by the City Council. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
[Enter Body Here]
Respectfully Submitted,
ERIC LOPEZ
DIRECTOR OF PUBLIC WORKS
APPROVED:
THOMAS B. MODICA
CITY MANAGER