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Item 4F Memo Item 4F M E M O R A N D U M (January 16, 2018) To: Shana Yelverton, City Manager From: Rob Cohen, Director of Public Works Subject: Approve annual purchase agreements with various vendors for the purchase of asphalt through an Interlocal Agreement (ILA) with Tarrant County in an amount not to exceed $500,000. Action Requested: Approve annual purchase agreements with various vendors for the purchase of asphalt through an Interlocal Agreement (ILA) with Tarrant County in an amount not to exceed $500,000. Background Information: The Public Works Streets and Drainage 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 five suppliers of asphalt road surfacing products. In July 2017, Tarrant County renewed the purchasing agreement (Attachment A). The City of Southlake anticipates only using the following two vendors due to favorable service history, price and availability of product. • Reynold’s Asphalt & Construction • JLB Contracting, LLC The City anticipates primarily using Reynolds Asphalt due to their pricing for Fine Grade Surface Course Hot Mix Asphaltic Concrete Item 4F Page 2 of 2 Type “D” being the lowest price per ton at $52 per ton (Attachment B line item 3). 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 budgeted in the FY 2018 annual operating budget for the Streets and Drainage Division and the FY 2018 CIP budget. Expenditures will not exceed budgeted funds. For the last four fiscal years, the City has spent the following with Reynolds Asphalt & Construction and JLB Contracting, LLC: • FY 2014, $ 384,261 • FY 2015, $ 185,899 • FY 2016, $ 281,429 • FY 2017, $ 205,546 • FY 2018, $ 45,243 (to date) 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 (B2) to collaborate with select partners to implement service solutions and (F2) to invest to provide and maintain high quality public assets. Citizen Input/ Board Review: N/A Legal Review: This agreement conforms with previous ILAs 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: Pricing Staff Recommendation: Approve annual purchase agreements with various vendors for the purchase of asphalt through an Interlocal Agreement (ILA) with Tarrant County in an amount not to exceed $500,000. Staff Contact: Rob Cohen, Director of Public Works Cristina McMurray, M.P.A, C.P.M, Deputy Director of Public Works 1 2 5 9 9 1