ITEM 6-U

Council Meeting:  June 11, 1991

TO:       Mayor and City Council

FROM:     City Staff

SUBJECT:  Recommendation to Award Bid to  Furnish  Hot  Asphaltic
          Concrete Paving Mixes, Bid 2357

Introduction

This report concerns award of bid  to  furnish  and  deliver  hot
asphaltic  concrete paving mixes for the Street Division, General
Services  Department,  per  specified  unit   prices,   including
applicable sales tax, and a one-year renewal option.

Background

In response to published Notices Inviting Bids  (published  May 3
and  6,  1991)  to furnish hot asphaltic concrete paving mixes in
accordance with  City  specifications,  bids  were  received  and
publicly  opened  and  read on May 14, 1991.  Proposal forms were
mailed to two vendors and notices were advertised  in  accordance
with  City  Charter  and Municipal Code provisions.  One proposal
was received as follows:

                                               Industrial Asphalt

1.   Code 43 B Mix 3/4"                               $25.83
2.   Code 497 Mix (Sheet)                              27.83
3.   Code 48 E Mix (School Mix)                        26.83
4.   Code 47 D2 Mix                                    25.83
5.   Code 44 C1 Mix                                    25.83
6.   Code 45 C2 Mix                                    25.83
7.   Code 3  1/2 Mix                                   25.83
8.   Code 60 SS1 Emulsion Oil                           2.95

These types of paving mixes cannot be trucked very  far  as  they
must  be delivered hot.  Consequently, only two firms can provide
this service in this area.  The other "No Bid" vendor  is  unable
to  bid  due  to  current workload.  They already have sufficient
customers which require the full utilization  of  their  delivery
staff.   This  requirement was bid in 1990 and the current bid is
below the market inflation margin of 4%.  Staff has evaluated the
low bid and finds that it meets City specifications.

Budget/Financial Impact

Fiscal Year 1991/92 appropriation authority for this purchase  is
in  the  Streets  Division,  General Services Department, account
number 01-500-421-00000-4412-00000.

Recommendation

It is recommended  that  the  award  of  Bid  #2357  be  made  to
Industrial   Asphalt   per   specified   unit  prices,  including
applicable sales tax, and  a  one-year  renewal  option,  as  the
lowest and best bidder.

Prepared By:   Pamela Wortham, Acting Purchasing Agent