Title
[Contract] Purchase of Aggregates, Asphalt Concrete, and Related Materials [Two-Thirds Vote Required] [Published for 10-Day Review 05/29/2026]
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FileID
File ID: 2026-00967
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion by two-thirds vote:1) awarding a contract with Teichert Rock Products, in an amount not-to-exceed $6,000,000; 2) authorizing the City Manager or designee to execute the contract with Teichert Rock Products; 3) awarding a contract with Granite Construction Company, in an amount not-to-exceed $6,000,000; and 4) authorizing the City Manager or designee to execute the contract with Granite Construction Company.
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Contact
Contact: Justin Hampton, Operations General Supervisor, (916) 808-4013, jhampton@cityofsacramento.org; Jose Sanchez, Streets Manager, (916) 808-2254, jgsanchez@cityofsacramento.org; Department of Public Works
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Goods Agreement - Teichert Rock Products
3-Goods Agreement - Granite Construction
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Description/Analysis
IssueDetail
Issue Detail: The Department of Public Works, Maintenance Services Division, including Pavement Maintenance and In-Source Concrete, requires the purchase of aggregate materials, asphalt, concrete, and related supplies. In March 2026, Invitation for Bid No. B26151631011 was issued to price those commodities. A total of five bids were received; however, only four were deemed responsive asthe fifth bid failed to provide most of the requested prices. To ensure the timely availability of these commodities, staff recommend entering contracts with the lowest two bidders, Teichert Rock Products and Granite Construction Company.
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PolicyConsiderations
Policy Considerations: The recommendations in this report are consistent with City Code Chapter 3.56, and with Sacramento City Code Section 4.04.020 and Council Rules of Procedure (Chapter 7, Section E.2.d) that mandates that all labor agreements and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to council action, unless publication is waived by a 2/3 vote of the City Council.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations:
California Environmental Quality Act (CEQA): The purchase of asphalt and aggregate materials has been determined to be exempt from the requirements of the California Environmental Quality Act (CEQA), under Section 15061(b)(3) of the CEQA guidelines.
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Sustainability
Sustainability: The purchase of supplies under this contract meets the City of Sacramento’s Sustainability goals by improving and optimizing the transportation infrastructure. Also, whenever practical, locally recycled aggregate materials are used to help reduce the over-consumption of natural resources.
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Commission/Committee
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: The Maintenance Services Division uses thousands of tons of asphalt and aggregate material each year to repair potholes, maintain alleyways, and perform routine street maintenance. These activities are essential to ensuring safe travel and maintaining acceptable pavement conditions throughout the City. Historically, the City spends between $3.5 million and $5 million annually on aggregates, asphalt concrete, and related materials, depending on available funding and project needs.
During the peak paving season, the Division requires a daily supply of materials to meet operational demands. To ensure timely and uninterrupted access, staff recommends awarding purchase agreements to two suppliers. Having dual suppliers provides necessary redundancy; if one vendor cannot meet the City’s schedule, material can be sourced from the alternate supplier.
Prices for aggregates, asphalt concrete, and related items are based on bids received in response to Invitation for Bid B26151631011. Staff recommends awarding three-year purchase agreements to Teichert Rock Products and Granite Construction Company, each with a not-to-exceed amount of $6,000,000, for a combined maximum of $12,000,000. The remaining responsive bidders submitted substantially higher pricing and therefore are not recommended for award.
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FinancialConsiderations
Financial Considerations: Purchases will be initially made from the Department of Public Works operating budget (General Fund, Fund 1001). The General Fund purchase of aggregates, asphalt concrete, and related materials are reimbursed from approved allocations of Measure A Maintenance (Fund 2026) and Gas Tax (Fund 2002), and Capital Improvement Projects (CIP) that support street maintenance. The General Fund, although initially used for purchases, will remain unaffected by the execution of this agreement.
Sufficient funding exists in the Department of Public Works Fiscal Year (FY) 2026/27 operating budget for purchases made through June 30, 2027. Purchases made after June 30, 2026, are subject to funding availability in the adopted budget for the applicable fiscal year.
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LocalBusinessEnterprise(LBE)
Local Business Enterprise (LBE): Teichert Rock Products and Granite Construction Company are LBEs.
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