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Item 4E Item 4E Page 1 of 2 M E M O R A N D U M (January 15, 2019) To: Shana Yelverton, City Manager From: Rob Cohen, Director of Public Works Subject: Approve annual purchase agreement with Reynolds Asphalt & Construction Co. (RAC) 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 agreement with Reynolds Asphalt & Construction Co. (RAC) 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 & 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 Tarrant County. 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 (Attachment A). In September 2018, Tarrant County awarded bid number 2018-165 with two (2) twelve (12) month renewal periods for an annual contract to six suppliers of asphalt road surfacing products. The City of Southlake anticipates only using one vendor, Reynolds Asphalt & Construction Co. (RAC), due to favorable service history, price and availability of product. Their pricing for Fine Grade Surface Course Hot Mix Asphaltic Concrete Type “D” is $61 per ton (Attachment B line item 3). Item 4E Page 2 of 2 With the favorable pricing received in this contract and ou r experience with the vendor, staff recommends approval of the annual purchase agreement. Financial Considerations: Funding for this contract is budgeted in the FY 2019 annual operating budget for the Streets & Drainage Division and the FY 2019 Capital Improvements Program (CIP) budget. Expenditures will not exceed budgeted funds. For the past four fiscal years, the City has spent the following with RAC on asphalt material:  FY 2015, $ 185,899  FY 2016, $ 271,429  FY 2017, $ 310,058  FY 2018, $ 491,703  FY 2019, $ 3,199 (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 & maintain high quality public assets. Citizen Input/ Board Review: N/A Legal Review: This agreement conforms to previous ILA that has been reviewed by the City attorney. Alternatives: The City Council may approve or deny this purchasing agreement. Supporting Documents: Attachment A: Interlocal Government Agreement for Purchasing Attachment B: County Commissioners Court Award Documents Staff Recommendation: Approve annual purchase agreement with Reynolds Asphalt & Construction Co. (RAC) 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