REPORT TO THE CITY COUNCIL FROM: SCOTT L. MOZIER, PE, Director Public Works Department BY: BRIAN E. RUSSELL, Assistant Director Public Works Department, Streets, Landscape, and Graffiti Divisions MARK A. RIVAS, Management Analyst II Public Works Department, Street Maintenance Division SUBJECT ..Title Award a requirements contract to Clay Miranda Trucking, Inc. in the amount of $674,150.00 per year for the purchase of Trucking Services. Bid File No. 9640 (City Wide) ..Body RECOMMENDATION Staff recommends that the City Council award a requirements contract in the amount of $674,150.00 per year for one year with the option for four one-year extensions to Clay Miranda Trucking, Inc. of Fresno, California, as the lowest responsive and responsible bidder for the purchase of Trucking Services and to authorize the Public Works Director or designee to sign the contract on the City's behalf. EXECUTIVE SUMMARY The Street Maintenance Division of Public Works uses a requirements contract to purchase Trucking Services to transport asphalt and other materials to support the Street Maintenance paving and maintenance operations. These materials are then utilized by City crews on various projects throughout Fresno. This service does not replace work that the City crews perform, rather it allows for additional truck transportation resources on an as-needed basis. BACKGROUND The Street Maintenance Division crews self-perform paving and maintenance projects throughout Fresno. Typically, 10-15 large dump trucks are required to transport materials to keep these City crews supplied and operational. This trucking service is contracted out, and the prior Trucking Services contract has expired and needed to be rebid. A Request for Proposals for Trucking Services was published on Monday March 21, 2022, in the Fresno Business Journal and Planet Bids. Bid specifications were distributed to three separate prospective bidders. A public bid opening was held on April 12, 2022, and only one bid was received. Clay Miranda Trucking was the sole bidder with a bid amount of $674,150.00. Following the receipt of 1 competitive bid, a committee was formed which was comprised of the Public Works Manager, Street Maintenance Superintendent, Management Analyst II, and a Field Maintenance Supervisor from Public Utilities. A Senior Procurement Specialist was there to facilitate. The goal of the committee was to thoroughly review the proposal in order to provide the best value recommendation to City Council. Clay Miranda Trucking, Inc. was the prior trucking services contractor and has been the sole provider of these services for the last 5 years. Staff is in agreement that Clay Miranda Trucking, Inc. has a proven track record of providing the City of Fresno with professional trucking services. The selection was based on the proposal submitted and past experience with the vendor. Staff feels this bid price is competitive, especially considering the current climate as it relates to fuel prices. A requirements contract establishes a firm price, secured through a competitive process, for a specified time and allows the City to make purchases as needed. Specifications and pricing estimates for this contract were prepared using the annual services average over the past 5 years, as well as recent increases in fuel costs. Because the total contract bid is below $1,000,000, the Project Labor Agreement (PLA) is not applicable to this project. Furthermore, the City is currently waiting for a determination from the Fresno County Transportation Authority regarding authorization to incorporate the PLA on contracts funded by Measure "C", which is a primary funding source for services associated with this contract. The City Attorney's office has reviewed and approved to form. Council may reject all bids. If this were to happen, the City would be without a Trucking Services contract for approximately 90 days while the contract rebid, which could have a significant impact on the paving projects currently planned throughout the City. Staff recommends that the City Council award a requirements contract in the amount of $674,150.00 per year for one year with the option for four one-year extensions to Clay Miranda Trucking of Fresno, California, with the option to select services from all sections within the bid proposal, and a contingency amount not to exceed 20% for the purchase of Trucking Services and to authorize the Public Works Director or designee to sign the contract on the City's behalf. ENVIRONMENTAL FINDINGS This contact is not a project for the purposes of the California Environmental Quality Act. LOCAL PREFERENCE Local preference was not implemented because this contract uses state funding. FISCAL IMPACT Funding appropriations are included in the FY2022 and proposed FY2023 budget, and is funded through State Gas Tax, Measure C, and CDBG. Attachments: Bid Evaluation - Listing of Proposers Committee Evaluation Report - Pricing Summary