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HomeMy WebLinkAboutP-20-330 Amend 4.pdf co County of Fresno INTERNAL SERVICES DEPARTMENT 18 &�Q Facilities• Fleet•Graphics•Purchasing•Security•Technology AMENDMENT NUMBER 4 (FOUR) Agreement Number: P-20-330-P September 6, 2023 Pavement Preservation Specialties Inc., DBA Environmental Concepts 27801 Hale Court Tehachapi, CA 93651 Contract Number P-20-330-P covering asphalt crack seal is amended as follows: The contract with your company expires September 14, 2023. The County of Fresno desires to extend this contract for an additional one (1)year period effective September 15, 2023 through September 14, 2024. Prices will be firm for the contract period. Amendment provisions shall remain in full force and effect with any contract renewals. The County of Fresno hereby accepts your price increase notice dated August 29, 2023 to be effective September 29, 2023 in accordance with the terms and conditions of our Contract Number P-20-330-P and (Revised Attachment).All orders placed prior to September 29,2023 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. If you have any questions, please contact Amber Nigam, Purchasing Analyst, at(559)600-7110 or email anigam(a)fresnocountyca.gov. 333 W.Pontiac Way,Clovis,CA 93612/(559)600-7110 "The County of Fresno is an Equal Employment Opportunity Employer CONTRACT NO. P-20-330-P Page 2 Pavement Preservation Specialties Inc., DBA Environmental Concepts September 6,2023 FOR THE COUNTY OF FRESNO signed by Gary Cornuelle Gary C O r n U e I I e Datle:2023 09.12 07:47:52-07 0 Gary E. Cornuelle Purchasing Manager 333 W. Pontiac Way Clovis, CA 93612 GEC:AN P-20-330 Amend 4.docx CONTRACT NO. P-20-330-P Page 3 Pavement Preservation Specialties Inc., DBA Environmental Concepts September 6,2023 CONTRACTOR TO COMPLETE: Company: k=t 11 1 ;W.'i�� C LY1�Ji�'UYltt�1L'�1k ( lilX i Type of Entity: Q Individual Limited Liability Company Sole Proprietorship Limited Liability Partnership Corporation ` Ej General Partnership Signature *ow, atw5 Print Nam and Title Date Signature Print Name and Title Date Address City State Zip TELEPHONE NUMBER FAX NUMBER E-MAIL ADDRESS ACCOUNTING USE ONLY ORG No.: 45104514 Account No.: 7260 Requisition No.: 5142400041 (8/2022) P-20-330 Amend 4.docx IMAN August 29, 2023 To: County of Fresno Dept Purchasing Division Manager Gary Cornuelle gcornuelle@fresnocountyca.gov From: Environmental Concepts-PO No. P-20-330 Nancy Davis Cell• 805.839.9829 envconcepts@bak.rr.com Re: Price increase to Contract Number (P-20-330) Dear Purchasing Division, We would like to exercise an additional renewal for term September 15.2023 through September 14, 2024 and with price increase approved, contract would go in effect September 29, 2023 (30 days from date of this letter). Coming out of the pandemic, we saw pricing stabilize, and experienced the price of goods to still remain high, and fuel pricing to still remain high, but stabilize. When servicing a Crafco crack seal contract, we are faced with two major components: The cost of manufacturing the material, and the cost to ship it to the end user. While we saw price increases across the board post pandemic, material and shipping, we have not experienced material price increase for this next annual contract. However, we have experienced higher trucking pricing. We shop the trucking pricing each and every time a truckload order is placed. We work with third party trucking brokers and independent trucking companies. The pricing is all over the map, and trucking companies do not guarantee their prices for more than 1 week at a time. Furthermore, the pandemic caused many independent trucking companies to close their doors, thus creating a shortage of qualified truck drivers.This all has impacted the market place industry wide and we as a population, undeniably, are experiencing higher pricing from all facets of commerce, The following is what we know to be true: 1. We have held our pricing to agencies for many years. We have passed on the savings from the back end. As our costs decreased, we have passed them onto the agencies with no increases. 2. The prices impacted are manufacturing,fuel prices, and availability of flatbed trucks. Revvaed h vn "A" 3. The CPI index percentage for January-July 2020 to same time January-July 2021 had a 3.4°% increase, from Jan-July 2021 to Jan-July 2022 had a 8.3%increase, and from Jan-July 2022 to Jan-July 2023 a 4.9% increase. The % change is still in an upward movement but less than the previous year. See Attached 12- Month percent Change. 4. When determining price increases for contracts if any, Environmental Concepts looks at three criteria. CPI movement (% increase) Cal Trans Fuel Index, and California Gasoline and Diesel Retail Prices (a 14.9% increase from month previous---see attached). Crafco has not increased pricing this next year and is holding to next year (barring any unforeseen surprises----as we have seen in the past), but trucking is still the wild card. We are proposing a conservative approach by increasing our FOB pricing to Fresno County by 5%. This is based on the CPI percent change and the volatility of diesel pricing. This means increasing the sealant price from .94/#to .987/#delivered, and increasing HP Bagged Mix from $16.20/bag to $17.00/bag. All full truck loads only. As material,trucking, and cost of goods pricing stabilize and come down, we will certainly pass the savings onto the County of Fresno. The County is still realizing an excellent contract value despite the increase. Please give this consideration and we hope to have a continued and valued relationship with the County of Fresno. Sincerely, C'A" Nancy Davis President 8129/23,2:15 PM California Gasoline and Diesel Retail Prices R@VIS$d Attachment „ i Ac��tni�e�s Irarf PETROLEUM & OTHER Lld-"'UID OVERVIEW DATA � ANALYSIS&PROJECTIONS GLOSSARY) FAQS r Washuly Fietail Gasoline and Diesel Prices (Dollars per Gallon,Including Taxes) Area: California v Period: Weekly v Show Data By: " View fa Product ( Area - g3•,s ;g; 7f3ili?3 ta%7i: !story Gasoline-All Grades 0 4.813: 4,935; 5.007 5.089, 5.208' 5.217i 2000-2023 All Grades-Reformulated Areas 0 1 4.813 4.935; 5.007 5.089' 5.208� 5.2171 1995-2023 Regular ❑ f 4.709 4.828; 4.901; 4.981 5.102 5.1061 2000-2023 _.._ Reformulated Areas ❑ s 4.709i 4.828i 4.901' 4.981 5.102�1 5.106. 1995-2023 Midgrade ❑ 4.993t 5.132; 5.196., 5.278+ 5.402 5.413 2000-2023 Reformulated Areas ❑ ? 4.993: 5.132 5.196; 5.2781 5.402; 5.413' 1995-2023 Premium 0 1 5.128 5.249 5.315 5.410 5.515 5.543� 2000 2023 t Reformulated Areas 0 ! 5.128i 5.249j 5.315 5.410 5.515; 5.543i 1995-2023 Diesel(On-Highway)-Ai!Types Q 4.944; 5.158 5.339s 5.518; 5.535� 5.678: 1995-2023 Ultra Low Sulfur(15 ppm and Under) ❑ 4.944 5.158; 5.339: 5.518: 5.535 5.678 2007-2023 Click on the source key icon to learn how to download s-enSlITT5519cel,or to embed a chart or map on your website. =No Data Reported; --=Not Applicable: NA=Not Available; W=Withheld to avoid disclosure of individual company data. Notes:Conventional area Is any area that does not require the sale of reformulated gasoline.All types of finished motor gasoline may be sold in this area.RFG area is an ozone nonattainment area designated by the U.S.Environmental Protection Agency(EPA),which requires the use of reformulated gasoline.We stopped publishing Low Sulfur On-Highway Diesel(LSD)prices at the U.S.level on December 8,2008,because fewer stations were selling LSD as a result of EPA diesel fuel regulations.We continued to collect LSD prices from retail outlets and included them in the Diesel Average All Types price until July 26,2010, when no more outlets reported LSD sales.Beginning July 26,2010,publication of Ultra Low Sulfur Diesel(ULSD)price became fully represented by the Diesel Average All Types price.As of December 1.2010(September 1,2006 in California),any on-highway diesel fuel sold is ULSD as mandated by EPA on-highway diesel fuel regulations.We did not collect weekly retail motor gasoline data between December 10,1990,and January 14,1991.Monthly and annual averages are simple averages of the weekly data.For months and years with incomplete weekly data series,the monthly and/or annual averages are not available.On May 14,2018,we implemented statistical methodology changes to improve the accuracy of the weekly retail gasoline price estimates.As a result of these statistical methodology changes,the published retail gasoline estimates for May 14,2018,are not directly comparable to those published for May 7,2018.On June 13,2022,we implemented statistical methodology changes to improve the accuracy of the weekly retail on-highway diesel fuel price estimates.As a result of these statistical methodology changes.the published retail on_highway diesel fuel prices for June 13,2022 are not directly comparable to those publishod for June u,zuzz. see Definitions,ZoUrCes,and Notes Ilnk above for more Information on tnis laole. Release Date:8/28/2023 Next Release Date:9/5/2023 f 04 https://www.eia.gov/dnav/pet/p&t_pri_gnd_dcus_sca_w.htm 1(1 �& Revised Attachment "A" U.S.BUREAU OF LABOR STATISTICS Databases, Tables & Calculators by Subject Change Output Options: From: 2021 v To: 2023 1- (V O include graphs Oinclude annual averages More Formattina Option sanfo. Data extracted on:August 29,2023(2:34:14 PM) CPI forAll Urban Consumers(CPl-U) Seriesld: CUUR0000SA0 Not Seasonally Adjusted Series Title: Alt items in U.S.city average,alt urban consumers,not seasonally adjusted Area: U.S.city average Item: All items Base Period: 1982-84=100 Download:a),xisx r-- _ l Year 1 Jan'j Feb Mar ' Apr 4'May ! Jun Jul i Aug ^ Sep Oct i Nov Dec HALF1 4 HALF2 j 20211 261582 1 263.014 264.8777 267.054 269.195{271.696(273.0031273,567,274.310 s 276.589 j 277,948, 802 266�236 k 275.703 +2022 281.1481i 283.716 287.504'289.109 292.296 2963111296.276 296.171 296.808 i 298.0121297.7111296.797I 288,3471296.9631 . 22 283 20231299.1701300.8, 301.836'303.363 1304.127`305.109 j 305.691 I ^— _ t {� �302.408 12-Month Percent Change Seriesid: CUUROOOOSAO Not Seasonally Adjusted Series Title: Alt items in U.S.city average,all urban consumers,not seasonally adjusted Area: U.S.city average Item: All items Base Period: 1982-84=100 Download:l3).xtsx Year';Ja_n j Feb i Mar}rApr Mai y�Jun,Jul Auk ep!Oct �De HALF1 ALF2� 2021i 1.4ff 1.71 2.61 4.21 5.01 5.415.4 5.3 1 5.416.2! 6.81 7.0 3.4 6.0 120221 T. 7.9�8.5'- 8.3� 8.6� 91+8.5 8.3L8.2�7.7( 7.1;�6.5� 8.3� 7.7 20231 6.4 U.S.BUREAU OF LABOR STATISTICS Postal Square Building 2 Massachusetts Avenue NE Washington,DC 20212-0001 Telephone:1-202-691-5200_Telecommunications Relay Service)-1-1- g9v Contact us 1/1