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HomeMy WebLinkAbout08 - Approval to Increase the Purchase Order Amount for As-Needed Procurement of Asphalt MaterialsQ �EwPpRT CITY OF s NEWPORT BEACH `q44:09 City Council Staff Report May 27, 2025 Agenda Item No. 8 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: John Salazar, Public Works Superintendent - 949-718-3460, jsalazar@newportbeachca.gov TITLE: Approval to Increase the Purchase Order Amount with Vulcan Materials Co. for As -Needed Procurement of Asphalt Materials for the Public Works Department Based on anticipated expenditures, staff requests City Council approval to increase the amount of Purchase Order No. 22500313 with Vulcan Materials Co. from $120,000 to $150,000 for Fiscal Year 2024-25 for as -needed procurement of asphalt materials. RECOMMENDATIONS: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Approve a change order to Purchase Order No. 22500313 with Vulcan Materials Co., increasing the amount from $120,000 to $150,000 for Fiscal Year 2024-25. DISCUSSION: The Public Works Department directly procures asphalt materials for staff to perform minor asphalt maintenance and repairs throughout the city. As of April 30, expenditures for asphalt materials totaled approximately $106,000, with a current $120,000 purchasing limit. With two months still remaining in the fiscal year, staff requests City Council approval to increase the amount of Purchase Order No. 22500313 with Vulcan Materials Co. from $120,000 to $150,000 to help fund the procurement of asphalt materials. The purchase order with Vulcan Materials Co. was originally approved under an exception to bidding requirements in accordance with Section J under "Special Requirements" of City Council Policy F-14 — Contract Procurement and Authority to Contract, and Section 4.4 of the City Purchasing Policy (Administrative Procedure/AP-001). The reasoning for that was trying to use other suppliers would result in excessive monetary costs and cause delays in performing repairs due to travel time and product availability issues. 8-1 Approval to Increase the Purchase Order Amount with Vulcan Materials Co. for As -Needed Procurement of Asphalt Materials for the Public Works Department May 27, 2025 Page 2 FISCAL IMPACT: The adopted budget includes sufficient funding for this purchase. Depending on the respective use of the equipment and materials in question, costs will be expensed to the Public Works Streets/Beaches account (0108061). ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). 8-2