HomeMy WebLinkAboutAgenda Report - July 19, 2006 E-03AGENDA ITEM E-3
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Authorize Sale of Asphalt Grindings as Surplus Property during Calendar
Year2006
MEETING DATE: July ", 2006
PREPARED BY: Public Works Director
RECOMMENDED ACTION: That the City Council authorize the sale of asphalt grindings as
surplus property during calendar year 2006.
BACKGROUND INFORMATION: During maintenance of City streets, the Street Division generates a
by-product in the form of asphalt grindings. These grindings are
normally recycled at no cost, except for trucking costs. The Street
Division has approximately 5,000 tons of this excess grinding
material stockpiled on the north side of Salas Park.
An inquiry from Frank Alegre, of Frank C. Alegre Trucking, Inc., to purchase the asphalt grindings
prompted this request. Mr. Alegre has asked to purchase the grinding material for $2 per ton ($50 per
truck load). Staff attempted to obtain competitive quotes. The only other interested party was
A. M. Stephens Construction, who offered a price of $1 per ton, when and if they have a use for it. They
have no interest in purchasing any at this time. Over the years, various parties have requested asphalt
grindings at no cost. (The City has used some for its own purposes as well_) The two firms mentioned
above are the only ones who have offered to pay for the grindings. Staff feels the $2 per ton price is a
good one.
Lodi City Municipal Code §2.12.120, Disposition of Surplus Personal Property, requires City Council
approval for sale of surplus property having a value in excess of $2,000. Also, formal bidding is specified
as part of this process.
Staff is requesting authorization to waive the bidding process given the limited market and to sell the
surplus grinding material for $2 per ton on a continuous basis through December 31, 2006, or until all
material is gone. Staff would also sell the material to any responsible party under the same terms and
price as extended to Frank C. Alegre Trucking, Inc.
FISCAL IMPACT: Cost recovery may be as much as $10,000. Funds will be deposited in the
Street Fund.
FUNDING AVAILABLE: None required.
Richard C. Prima, Jr.
Public Works Director
Prepared by Curt Juran, Assistant Street Superintendent
cc: George M. Bradley, Street Superintendent
Curt Juran, Assistant Street Superintendent
Rebecca Areida, Management Analyst
Joel Harris, Purchasing Agent
APPROVED: � .�
Blair King—,—City Manager
.1 1COUNCI L�061AsphaItGrindi ngsSu rpl us. doc 7113/2006