Committee backs forwarding $23.9 million Granite Rock contract amendment for street materials

The Budget & Finance Committee voted to forward to the full Board a resolution to amend the city—s contract with Granite Rock Company to provide petroleum products, emulsions, sealants and concrete materials used by city departments. The Office of Contract Administration sought an increase of approximately $13.9 million to bring the not‑to‑exceed total to about $23.89 million and a two‑year extension of the term through Oct. 31, 2026.

Kirill, the Office of Contract Administration—s director, told supervisors that spending rose sharply after a price adjustment and that "the remaining contract balance of roughly $2,000,000 at this time will last only another 5 and a half months," a key reason OCA recommends continuing the current contract rather than issuing a new solicitation while market conditions stabilize.

Nick Menard of the Budget and Legislative Analyst—s office recommended approval of the amendment but flagged a procurement concern: only one bidder responded to the recent solicitation for this commodity. Menard suggested a broader review of the city—s purchasing approach and the feasibility of joint procurement with neighboring jurisdictions to increase competition.

Vice Chair Mandelmann and Supervisor Safaie asked OCA to explain why so few firms bid; OCA cited geographic and local presence requirements and said the city routinely outreaches to potential bidders. Supervisors requested a report from the purchaser and the City Administrator on procurement practices by June 2023, which the committee included as part of its recommendation.

The committee moved the resolution to the full Board with a positive recommendation; the roll call recorded three ayes.