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Item 4C - Memo Final CITY OF Item 4C SOUTH LAKE MEMORANDUM (January 17, 2017) To: Shana Yelverton, City Manager From: Rob Cohen, Director of Public Works Subject: Approve an annual purchase agreement with various vendors for the purchase of asphalt through an interlocal agreement with Tarrant County in an amount not to exceed $275,000. Action Requested: Approve an annual purchase agreement with various vendors for the purchase of asphalt through an interlocal agreement with Tarrant County in an amount not to exceed $275,000. Background Information: The Public Works Streets Division requires the purchase of asphalt paving materials for the purpose of building and repairing streets. The City's bidding process for this contract award was met through an interlocal agreement (ILA) with the City of Grapevine. Chapter 271 of the Texas Local Government Code allows governmental entities to enter into an ILA with other governmental entities to share contracts which have met the statutory bidding requirements as prescribed by the State of Texas. The City of Southlake has such an agreement with Tarrant County. In September 2015, Tarrant County awarded bid number 2015-189 with two (2) twelve (12) month renewal periods for an annual contract to six suppliers of asphalt road surfacing products. In September 2016, Tarrant County renewed the purchasing agreement. The City anticipates only using the following three vendors due to favorable service history and availability of product. • Reynold's Asphalt & Construction • Austin Asphalt, LP • JLB Contracting, LLC The City anticipates primarily using Reynolds Asphalt due to their pricing for Fine Grade Surface Course Hot Mix Asphaltic Concrete Type "D" being the lowest price per ton. Item 4C Page 2 of 2 The total of all the purchases during the twelve month contract will exceed the $50,000 authorization power of the City Manager; therefore, this agreement requires City Council Approval. With the favorable pricing received in this contract and our experience with the vendors, staff recommends approval of the annual purchase agreement. Financial Considerations: Funding for this contract is provided in the FY 2017 annual operating budget for the Streets Division and the FY 2017 CIP budget. Expenditures will not exceed budgeted funds. In FY 2014, the City spent a combined total of $384,261 with JLB Contracting, LLC and Reynolds Asphalt & Construction. In FY 2015, the City spent $185,899 with JLB Contracting, LLC and Reynolds Asphalt & Construction, in FY 2016, the City has spent $271 ,429 with Reynolds Asphalt & Construction and in FY 2017 to date, the City has spent $10,658.99 with Reynolds Asphalt & Construction. Strategic Link: This item relates to the City's strategy map focus areas of Infrastructure and Partnerships & Volunteerism. It specifically relates to the City's Corporate Objectives to invest to provide and maintain high quality public assets and to collaborate with select partners to implement service solutions. Citizen Input/ Board Review: N/A Legal Review: This agreement conforms with previous ILA that have been reviewed by the City attorney. Alternatives: The City Council may approve or deny this purchasing agreement. Supporting Documents: Attachment A: County Commissioners Court Award Documents Attachment B: Bid Award Recommendation Staff Recommendation: Approve an annual purchase agreement with various vendors for the purchase of asphalt through an interlocal agreement with Tarrant County in an amount not to exceed $275,000. Staff Contact: Rob Cohen, Director of Public Works Cristina McMurray, M.P.A, C.P.M, Deputy Director/Operations