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Item 4K - MemoItem 4K CITY OF SOUTHLAKE MEMORANDUM June 18', 2024 To: Alison Ortowski, City Manager From: Robert Cohen, Director Public Works Timothy Slifka, Purchasing Manager Subject: Approve contract renewal with Apex Concrete Construction Inc., for citywide concrete services in an amount not to exceed $4,000,000. Action Requested: Approve contract renewal with Apex Concrete Construction Inc., for citywide concrete services in an amount not to exceed $4,000,000. Background Information: In June 2022, the City Council approved the contract for citywide concrete services. The first renewal of the contract occurred in June 2023. An economic price adjustment contained in the agreement allows Apex Concrete to apply a maximum of a 4% markup on their proposed line items annually. Apex Concrete did not escalate its prices in 2023. The current request is for the second of four possible contract renewals. Each annual renewal contains provisions for Apex Concrete to consider an economic price adjustment of 4%. The vendor, per contract allowance, is requesting a 4% increase as part of this renewal. The contract provides concrete -related services for the City of Southlake, including: • Concrete flat work, including removal • Curb and gutter repairs and new installations • Sidewalk new installation and repair service • Exposed aggregate finish • Colored concrete service • Stamped concrete service Page 1 of 3 Item 4K • Brick pavers and truncated domes service • Vertical retaining wall installation and repair services • French drain installation services Financial Considerations: This is an annual contract whose contract terms extend from August to August every year. The following provides a summary of total spending amounts and approved authorizations: Fiscal Year Spend Spend -to -Date Authorization Amount 2023 $1,000,000 $670,000 2024 $1,980,000 $1,044,960 2025 $4,000,000 - The spending authorization for concrete services in FY 2023 was $1,000,000. The total spend for FY 2023 concrete services was approximately $670,000, which did not include any CIP projects. The Year -to -Date spending for concrete services in FY 2024 is $1,044,960. The current spending authorization for FY 2024 is $1,980,000. We anticipate a greater number of CIP projects in FY 2025 and are requesting a not -to -exceed spending authorization of $4,000,000. Funding for these projects is budgeted in the Capital Improvements Program, the approved FY 2024 operating budgets, and the proposed FY 2025 operating budgets. Project Name Estimated Cost Operations Various Drainage Projects $250,000 Various Street and Sidewalk Projects $250,000 SILTS Enhancement Projects (E & W $250,000 Grand Ave) Various Parks Projects $180,000 Capital Imrovements CIP CIP Project — Union Church/Pearson Ln $200,000 Sidewalk CIP Project— Randol Mill Rd Sidewalk $1,000,000 CIP Project — Morgan Rd Sidewalk $350,000 CIP Project — Dove Rd Sidewalk $660,000 Page 2 of 3 Item 4K CIP Project — S Peytonville Rd Sidewalk $150,000 CIP Project — Maranatha Way Connector $350,000 Contingency $214,400 Total: $4,000,000 2024 Rate Increase 4% Strategic Link: Focus Areas — Infrastructure and Development Financial Objectives: F2 — Investing to provide & maintain high quality public assets. Business Objectives: B2 — Collaborating with select partners to implement service solutions. Citizen Input/ Board Review: None Legal Review: The City Attorney reviewed the original proposal documents to form. Alternatives: Deny approval and re -bid citywide concrete services Supporting Documents: Attachment A: Apex Concrete Renewal 24-25 Full Packet Staff Recommendation: Approve contract renewal for this service. Page 3 of 3