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Home My WebLink AboutP-20-225 Adjustment Granite Construction One and letter.pdf COUP County of Fresno INTERNAL SERVICES DEPARTMENT ROBERT BASH,DIRECTOR—CIO O 185O Facility Services • Fleet Services • Graphics Information Technology • Purchasing FRSC.5 Security • Telecommunications ADJUSTMENT GRANITE CONSTRUCTION NUMBER ONE (1) Agreement Number: P-20-225 June 24, 2022 Granite Construction 2716 Granite Court Fresno, CA 93706 Contract Number P-20-225 covering the provision of Asphalt and Concrete and Aggregate Materials is amended as follows: The County of Fresno hereby accepts your price increase notice dated May 6, 2022 to be effective June 7, 2022 for Hot Mix Asphalt Products from our Coalinga Asphalt Plant. HMA Super Pave Cal Trans 2018 specification mixes, W &W HMA 2010 Cal Trans specification mixes, and 3/8" SC 800 & 3000 cold mixes, in accordance with the terms and conditions of our Contract Number P-20-225 and vendor's Revised Attachment"A". All orders placed prior to June 7, 2022 will be priced in accordance with current contract pricing. The County of Fresno hereby accepts your price increase notice dated June 14, 2022 to be effective July 15, 2022 for Environmental Fee in accordance with the terms and conditions of our Contract Number P- 20-225 and vendor's Revised Attachment"A". All orders placed prior to July 15, 2022 will be priced in accordance with current contract pricing. Electronic Signatures. The parties agree that this Agreement may be executed by electronic signature as provided in this section. A. An "electronic signature" means any symbol or process intended by an individual signing this Agreement to represent their signature, including but not limited to (1) a digital signature; (2) a faxed version of an original handwritten signature; or(3) an electronically scanned and transmitted (for example by PDF document) of a handwritten signature. B. Each electronic signature affixed or attached to this Agreement (1) is deemed equivalent to a valid original handwritten signature of the person signing this Agreement for all purposes, including but not limited to evidentiary proof in any administrative or judicial proceeding, and (2) has the same force and effect as the valid original handwritten signature of that person. C. The provisions of this section satisfy the requirements of Civil Code section 1633.5, subdivision (b), in the Uniform Electronic Transaction Act (Civil Code, Division 3, Part 2, Title 2.5, beginning with section 1633.1). D. Each party using a digital signature represents that it has undertaken and satisfied the requirements of Government Code section 16.5, subdivision (a), paragraphs (1)through (5), and agrees that each other party may rely upon that representation. This Agreement is not conditioned upon the parties conducting the transactions under it by electronic means and either party may sign this Agreement with an original handwritten signature. Please acknowledge your acceptance by returning all pages of this letter to my office via email or USPS. 333 W.Pontiac Way,Clovis,CA 93612/(559)600-7110 The County of Fresno is an Equal Employment Opportunity Employer' CONTRACT NO. P-20-225 Page 2 Granite Construction June 24, 2022 If you have any questions, please contact Erin Jones, Purchasing Analyst, at (559) 600-7110 or email ejones6dJresnocountyca.gov. FOR THE COUNTY OF FRESNO Digitally signed by Gary Cornuelle Gary C o r n U e I I e Date:2022.07.01 08:55:39-07'00' Gary E. Cornuelle Purchasing Manager 333 W. Pontiac Way Clovis, CA 93612 GEC:EJ G:\PUBLIC\CONTRACTS&EXTRACTS\2020 CONTRACTS\20-225 ASPHALT CONCRETE MASTER\CONTRACT AND AMENDMENTS\WORKING FILES\P-20-225 ADJUSTMENT GRANITE CONSTRUCTION ONE.DOCX CONTRACT NO. P-20-225 Page 3 Granite Construction June 24, 2022 CONTRACTOR TO COMPLETE: Company: Granite Type of Entity: ❑ Individual ❑ Limited Liability Company ❑ Sole Proprietorship ❑ Limited Liability Partnership ■❑ Corporation ❑ General Partnership Signature Jacob Hinc`hey, Materials Manager 6-28-2022 Print Name and Title Date Signature Print Name and Title Date 38940 CA-33 Coalinga CA 93210 Address City State Zip 209-373-8743 jake.hinchey@gcinc.com TELEPHONE NUMBER FAX NUMBER E-MAIL ADDRESS ACCOUNTING USE ONLY ORG No.: 45104514 Account No.: 7260 Requisition No.: 5142200093 (2/2021) G:\PUBLIC\CONTRACTS&EXTRACTS\2020 CONTRACTS\20-225 ASPHALT CONCRETE MASTER\CONTRACT AND AMENDMENTS\WORKING FILES\P-20-225 ADJUSTMENT GRANITE CONSTRUCTION ONE.DOCX CONTRACT NO. P-20-225 Page 4 Granite Construction June 24, 2022 R e vised A tta ch m en t "A" As of June 7, 2022 prices will increase to the line items below • $64.00/per ton HIVIA Super Pave Cal Trans 2018 specification mixes • $66.50/per ton for '/z" & 3/4" HMA 2010 Cal Trans specification mixes • $84/per ton for 3/8" SC 800 & 3000 cold mixes As of July 14, 2022 prices will increase to all Environmental fees. • Environmental fee$10.00 per load. Part A: Slow Cure (SC)Asphalt Concrete For each of the specified material below, please list cost per ton for plant pick-up rate. Please itemize any additional materials you are able to provide, not listed below. Quoted prices shall include all labor, materials, taxes, insurance, and miscellaneous fees per ton. Sales tax shall be excluded from the prices quoted. Item Description Yearly use New Unit Price Plant Location 3/8" SC - 3000 250 tons $84.00 per ton Granite Coalinga As of 06/07/22 Environmental Fee $10.00 per load as of Granite Coalinga 07/14/2022 Part B: Performance Graded (PG)Asphalt Concrete For the specified material below, please list cost per ton for plant pick-up rate Please itemize any additional materials you are able to provide, not listed below. Quoted prices shall include all labor, materials, taxes, insurance, and miscellaneous fees per ton. Sales tax shall be excluded from the prices quoted. Item Yearly use New Unit Price Plant Location Description PG 64-10, W 25,000 tons $65.50 per ton Granite Coalinga Max As of 06/07/22 PG 64-10, '/2" 80,000 tons $65.50 per ton Granite Coalinga Max As of 06/07/22 W HMA 64- 5 tons $66.50per ton Granite Coalinga 10 R 15 LAS B As of 06/07/22 Environmental Fee $ 10.00 per load as of Granite Coalinga 07/14/2022 G:\PUBLIC\CONTRACTS&EXTRACTS\2020 CONTRACTS\20-225 ASPHALT CONCRETE MASTER\CONTRACT AND AMENDMENTS\WORKING FILES\P-20-225 ADJUSTMENT GRANITE CONSTRUCTION ONE.DOCX CONTRACT NO. P-20-225 Page 5 Granite Construction June 24, 2022 Part C: Aggregates For the specified material below, please list cost per ton for plant pick-up rate. Please itemize any additional materials you are able to provide, not listed below. Quoted prices shall include all labor, materials, taxes, insurance, and miscellaneous fees per ton. Sales tax shall be excluded from the prices quoted. Item Description Yearly use Unit Price Plant Location 3/" Max Aggregate Base, Class 65,000 tons $11.00 per ton 2 Granite Coalinga 1/4" Caltrans Class 2 AB 5,000 tons $11.00 Granite Coalin a Environmental Fee $10.00 per load Granite Coalin a G:\PUBLIC\CONTRACTS&EXTRACTS\2020 CONTRACTS\20-225 ASPHALT CONCRETE MASTER\CONTRACT AND AMENDMENTS\WORKING FILES\P-20-225 ADJUSTMENT GRANITE CONSTRUCTION ONE.DOCX GRAnITE'" COALINGA PLANT 38940 Hwy 33 Coalinga, CA 93210 May 6, 2022 Gary E. Cornuelle Purchasing Manager County of Fresno 4525 East Hamilton Avenue Fresno, CA 93702-4599 RE: PROCUREMENT AGREEMENT NUMBER: P-20-225 Mr. Cornuelle; Regarding Procurement Agreement P-20-225, Provide Asphalt Concrete and Various Aggregates, we propose a price increase on our Hot Mix Asphalt Products from our Coalinga Asphalt Plant. Operating cost for this material has increased as well as the market price for this product. Since the date of this contract, Crude Oil prices has increased significantly, approximately$11 per ton,forcing us to increase our per ton price, internally and externally. Per our agreement dated March 30, 2016,Attachment "A" which states that the Contractor can request a price change once each quarter if there is a significant change in the market. Granite proposes a price increase to $64.00/per ton HMA Super Pave Cal Trans 2018 specification mixes, $66.50/per ton for%" & W HMA 2010 Cal Trans specification mixes and $84/per ton for 3/8" SC 800&3000 cold mixes, effective 30 days from the date of this letter. I have attached the State of California's Crude Oil Price Index for your review. May 2022 index is $596.7 If you should have any questions or concerns, please contact me directly. Sincerely, Baby 3Cw1,Cw Bobby Barlow Material Sales Coalinga Plant 38940 Hwy 33 Coalinga, CA 93210 Bobby.Barlow@gcinc.com www.graniteconstruction.com 1of2 cRAnITE COALINGA PLANT 38940 Hwy 33 Coalinga, CA 93210 STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION DIVISION OF CONSTRUCTION P.O. BOX 942873, SACRAMENTO, CA 94273-0001 916-227-5709 CALIFORNIA STATEWIDE CRUDE OIL PRICE INDEX IJan-16 1190.5 IL Jan-17 I272.7 Feb-16 156.5 Feb-17 279.8 Mar-16 149.5 Mar-17 284.7 Apr-16 190.0 Apr-17 266.5 May-16 205.9 May-17 275.3 Jun-16 236.7 Jun-17 260.6 Jul-16 243.2 Jul-17 242.5 Aug-16 225.0 Aug-17 252.0 Sep-16 229.7 Sep-17 267.5 Oct-16 232.3 Oct-17 284.6 Nov-16 257.7 Nov-17 301.2 Dec-16 233.1 Dec-17 335.4 STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION DIVISION OF CONSTRUCTION P.O. BOX 942873, SACRAMENTO, CA 94273-0001 916-227-5709 CALIFORNIA STATEWIDE CRUDE OIL PRICE INDEX Jan-17 272.7 A Jan-18 343.3 Feb-17 279.8 Feb-18 373.7 Mar-17 284.7 Mar-18 359.6 Apr-17 266.5 Apr-18 359.9 May-17 275.3 May-18 382.7 Jun-17 260.6 Jun-18 F Jul-17 242.5 Jul-18 F Aug-17 252.0 Aug-18 F Sep-17 267.5 Sep-18 F Oct-17 284.6 Oct-18 F Nov-17 301.2 Nov-18 F 2of2 GRAnITE'" COALINGA PLANT 38940 Hwy 33 Coalinga, CA 93210 Dec-17 335.4 � Dec-18 STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION DIVISION OF CONSTRUCTION P.O. BOX 942873, SACRAMENTO, CA 94273-0001 916-227-5709 CALIFORNIA STATEWIDE CRUDE OIL PRICE INDEX J u 1-21 402.1 Aug-21 403.9 Sep-21 381.7 Oct-21 405.7 Nov-21 456.2 Dec-21 433.5 Jan-22 404.7 Feb-22 460.7 Mar-22 507.2 Apr-22 622.0 May-22 596.7 3 of 2 GRAnITE'" COALINGA PLANT 38940 Hwy 33 Coalinga, CA 93210 June 14, 2022 Gary E. Cornuelle Purchasing Manager County of Fresno 4525 East Hamilton Avenue Fresno, CA 93702-4599 RE: PROCUREMENT AGREEMENT NUMBER: P-16-122-P CHANGE ORDER AGREEMENT P-20-225 Mr. Cornuelle; Regarding Procurement Agreement P-16-122-P, Provide Asphalt Concrete and Various Aggregates, we propose an Environmental Fee Increase from $7.50 per load to $10 per load. Please see attached price increase letter dated November 1, 2021. With energy inflation costs increasing significantly this year, Granite Construction Corporate distributed a letter dated March 15, 2022 in regards to implementing an Energy Surcharge Fee, please see attached. The Energy Surcharge is a per ton fee on asphalt and aggregate products. The fee amount updates each month per the U.S. Energy Information Administration website.The link is provided on the attached letter. We propose to implement these fees effective 30 days from the date of this letter. If you should have any questions or concerns, please contact me directly. Sincerely, Bobby 3"Low Bobby Barlow Material Sales Coalinga Plant PH: 559-310-3832 38940 Hwy 33 Coalinga, CA 93210 Bobby.Barlow@gcinc.com www.graniteconstruction.com 1of2 GRAnITE T11 March 15, 2022 Subject: Energy Surcharge — Effective April 1, 2022 Dear Valued Customer: Energy inflation over the past weeks has been very significant and costly to all of us. Crude oil costs were up 65% from January 1, 2022 through March 8, 2022. Our industry uses a lot of energy: burner fuel, electricity, diesel fuel, and gasoline. We are unable to absorb these additional costs in our business. Effective April 1, 2022, Granite will implement an energy surcharge. All list price sales as well as quoted sales will be subject to this surcharge. If energy costs decline to December's levels (listed below), we will suspend our surcharge. For simplicity, Granite will calculate the energy surcharge once per month. The energy surcharge will be updated on the last week of each month for the following month based upon published diesel fuel costs - https://www.eia.gov/petroleum/gasdiesel/ and according to the following formulas: March Example Calculation Dec 27, 2021 Diesel price— CA No 2 - $4.77/gallon Feb 28, 2022 Diesel price — CA No 2 - $5.08/gallon March Aggregate Energy Surcharge (for example only—surcharge starts in April)— [$5.08/gallon — $4.77/gallon] x 0.2 Gallons/Ton = $0.06/ton Aggregate Surcharge March Asphalt Energy Surcharge (for example only—surcharge starts in April )— [$5.08/gallon — $4.77/gallon] x 2.25 Gallons/Ton = $0.70/ton HMA Surcharge Page 1 of 2 Granite Construction Company 585 W Beach St Watsonville, CA 95076 The energy surcharge will be added to your materials invoices beginning on April 1. Please reach out to your local sales team to discuss projects quoted prior to April 1 or with further details on how the calculation works. Please note that this is a company-wide surcharge, and your sales team is unable to exempt customers from this surcharge. Thank you for your continued business. We look forward to meeting this challenge together. Sincerely GRANITE CONSTRUCTION COMPANY 3 s cat- Bradly st VP — Construction Materials Page 2 of 2 Granite Construction Company 585 West Beach St Watsonville, CA 95076 RAnITE'm November 1, 2021 Dear Valued Customer, Granite would like to thank you for our continued relationships and your decision to purchase our construction materials. Safety continues to be Granite's priority for our employees and partners as the pandemic continues. During the past year we have adjusted our work practices at our plants to continue to provide quality materials for your project needs. Raw material shortages and costs continue to rise exponentially in California. Diesel fuel, natural gas, plant maintenance parts, liquid asphalt, steel, permitting, and environmental expenses are just a few costly increases we're experiencing today with little end in sight for 2022. In addition, reduction in the availability of liquid asphalt is expected well into 2022. Because of these increased costs and raw material supply concerns, Granite finds it necessary to increase pricing for aggregates, asphalt products, and environmental fees at all of our Valley Region locations effective February 1, 2022. Bradshaw Aggregates-$1.50/ton Capay Aggregates-$1.50/ton Capay Incoming Rubble Fee-$300.00/load Coalinga Aggregates-$1.00/ton French Camp Aggregates-$1.00/ton Vernalis Aggregates-$1.25/ton HMA Products-contact your sales representative for pricing Environmental fee$10.00 per load-all Valley Region Plants Per San Joaquin County, the Vernalis Community Facility District Bird Road fee will be decreased to $0.26/ton effective April 1, 2022. Please be aware the fee could fluctuate in 2023. Please review all Granite Material Quotations. Granite will honor conditions of all signed and returned quotes. Please note that Quotes are valid for 30 days. All HMA prices are as quoted and are subject to special conditions and increases based on the liquid asphalt market. Unfortunately, Granite can't guarantee supply and can only react to what we know. Please continue to communicate project needs and concerns you have with your local sales representative to ensure you receive the service you expect. Thank you for the opportunity to serve your Construction Materials needs.Together we look forward to a successful 2022. Sincerely, Dale Evans Andy Fuertes Bobby Barlow Philip Neu Sacramento/Capay Sacramento/Capay Coalinga Vernalis/French Camp