HomeMy WebLinkAboutItem 12 - Asphalt Road Surfacing Products _ � .���.����.�.�„� �.,. <.,,� � �,,�,�,.�,.,.,�.� , _
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MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER �Z
MEETING DATE: JULY 15, 2008
SUBJECT: APPROVAL OF A RESOLUTION TO RENEW AN ANNUAL
CONTRACT FOR ASPHALT ROAD SURFACING PRODUCTS
THROUGH AN INTERLOCALAGREEMENTAND ESTABLISHED
CONTRACT WITH TARRANT COUNTY, TEXAS
RECOMMENDATION:
City Council to consider approval of a resolution to renew an annual contract with Reynolds
Asphalt and Construction Company for asphalt road surfacing products through an existing
Interlocal Agreement and Contract with Tarrant County, Texas.Annual expenditures will be
limited to the annual budgeted amount for this service.
FUNDING SOURCE:
Funds for this purchase are available in account 174-43301-090-000 Street Maintenance/
Capital Replacement/Transportation Infrastructure Maintenance in the amount of
$500,000.
BACKGROUND:
The contract and subsequent purchases will be made in accordance with an existing
Interlocal Agreement with Tarrant County, Texas under Bid number 2006-186 and as
allowed by Texas Local Government Code, Section 271.102. This commodity was bid by
Tarrant County and a contract was awarded by the Commissioners Court on July 24, 2007.
The contract included two one-year renewals. If approved, this would be the first one-year
renewal period and will begin on July 15,2008 and include any subsequent renewal period
until September 2009.
In the past, the City had established its own contract for asphalt. Several years ago a cost
analysis was conducted to determine the pricing the City could receive through individual
contracts in relation to pricing established through the cooperative purchasing process. It
was determined that purchasing through the cooperative purchasing process would
present a significant cost advantage for the City. With a number of different public entities
participating (25) in the contract, including Tarrant County,the collected volume has helped
secure a lower cost for asphalt for the last few years.
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The current cooperative contract includes the Cities of Colleyville, Grand Prairie, Bedford,
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Haltom City, Southlake, Keller, Hurst and Flower Mound.
Due to increases in liquid asphalt and fuel, Reynolds had a recent price increase that was
approved and accepted by Tarrant County (see attached documentation). Reynolds
Asphalt and Construction Company has provided this service in the past with satisfactory
results.
Staff recommends approval of the resolution to renew the contract for asphalt road
surfacing products to Reynolds Asphalt and Construction Company.
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P.O. Box 370—Euless, Tezas 760�9
Metro S 17)267-3131
F.4X ( 17) 26?-1878
I�iay 2, 2008
\eii ��vin�7
Se�lior Coull�act Adi»iilistrator
Fiu-cl�asin� Departnlent
1 CO �. VVeatherford Ste 303
:ort Worel�. 1'exas 76102
s�i;: �id #2C06-1 S6
�ca� 1�/lr. I��-ving:
Itey��olds f�sphalt & Construction Company has enjoyed serving the Hot� Iv1ix needs of "I�a��F-a�lt C��unty ani?
severai cities durin� its 27 yeai- histor}'. 1t has always been our goal to deliver a quality product at a competitive price, and
� believe ti�at we have been successfiil with that goal. We always regret to have to raise the price-s o(�o�u- product anc'
�.acticed restraints in holdinb on as (ong as possible prior to doinQ so. However, ���e have� sufferec! si��nii�icant inceeases in
ottr Iic;L�id asphait, b�u-ner fuels, and diesel fuels within the past few �.veeks. O�u� prices fer the above retere;iceci co��tract
for Asphalt Ro�d Sarfacin� Froducts—A1I precinets, for Tarrant County at the present tili�e are as fof(ows:
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Type `B" HMAC - $37.50 per ton
Type "D" HN1AC - $38.50 per toil
In accordance. with our contract, page 11, under "Pricin� and Adj�ist�uenis," I I�ave enclosed an
explanation for the i�lcrease along witl� the attacl�e.d copies of invoices dated ApriE 2008 that sl�ow our c�Errent prices 'ror
�naterial, fuel oil, liquid asphalt, and delivery. Please keep this iniormation confidential. Youi- ilew p�-iciilg ���il! be �ut i��t�
e1'�eci immediately upon youc acl�no��ledgeinei�t of this letter. Adjusted pi•iciiig�vill be as follows:
Ty�e "�" HMAC - $4�.58 per ton
��},E�e :`D'> HIl�IA� -$49.58 pe�to❑
_�ii �,rices ai�e FC�B.
Nea?, we f�ope tl�ese drasiic increases in petroleui�: wi11 stabilize sooi; bee�ause it is i�ut-tin� tl�e entire ecoi�omy. We ]�cpe
that our tic-�t comn�unicatioz7 is n positive affect on the market. ti1e sincerefy appreciate }�our cont�ii�ued patronage of our
ei�of-ts. It is o��r coi�tinired goa! to ses�vice Tai-rant Coimty �iot iVti� ileeds. If yoii I�ave ar�y qt�e�stio«s, please ci��;`t hes�tate
to coi�tact «���seli�e���3ob Cuykendall in this re.�arc!.
Tl�anl:yo�i fol�}�ou� bt�siiiess.
Sincerel�-
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Ga;-y E. (Ze�molds
�1"eSlC��ilt'
Sa�!na�v—PlaYit�3 i l00]� Hicks Field Rd. /Mztro(817)498-200G
E�Etess—Pd�eadt#�/ 126�0 Calloway Cen�etety Rd_/Metro(817)267-3131 1 Le�visvilic—Plairt#�(617 F. Colle�c/;��letru(_�);2)43=}-2OU�'
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PLrR�I-�ASING DEPAF�TIv1EN i
J�1CK BIiA��H,i�L1,C'1'.1•.1. RUB(��J.1',C.P.A!.
�'l iXCHA,SYA'�l:?(��:A'7' /t;��l.�'i:-iid;"l'!;i.C71.-t.S'l.!;R�:i(;/',A'7
�/ay �, 2008
Rey��oids �s�ha�t ai��t CcnsTr�ciior� Compary .
Gary Reynolds, President
�'.O. Bor. 370
�uless, TX 76039
817-267-3131
817-267-�878 fax
.-��c: RFB f�o. 2006-186, F�nnua� Contracf for Asphait Road Surfac�na Proc�ucfs
�ear �V?r. Reynolds:
i �m in receipf of yo�r letter dafe� iVlay 2, 2008 referencin� the price increases concerning RFB 2006-
�80. Tarrant Counfy accepis ihe price increase as ouflinea in the information you provided and I wil{
a�� fhis information to the bic! �older.
Sincer�ly,
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�!�t r�,r(,�c��-<�
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6�eii Evving, C.P.�., Se�ior Buy2r
i ar�a��� Counf;, ��rch�sing �Jepartr��e.r��
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RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, AUTHORIZING THE CITY MANAGER
OR THE CITY MANAGER'S DESIGNEE TO RENEW AN
ANNUAL CONTRACT FOR ASPHALT ROAD SURFACING
PRODUCTS THROUGH AN ESTABLISHED INTERLOCAL
AGREEMENT AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of Grapevine, Texas is a local government in the State of
Texas and as such is empowered by the Texas Local Government Code, Section 271.102
to enter into a Cooperative Purchasing Program Agreement with other qualified entities in
the State of Texas; and
WHEREAS, the Tarrant County, Texas Purchasing Program is a qualified
purchasing cooperative program as authorized by Section 271.102 of the Texas Local
Government Code; and
WHEREAS, the City of Grapevine, Texas has established an Interlocal Agreement
with Tarrant County, Texas and wishes to utilize an established contract for Asphalt Road
Surfacing Products that has met all State of Texas bidding requirements.
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS:
Section 1. That all matters stated in the above preamble are true and correct and
are incorporated herein as if copied in their entirety.
Section 2. That the City Council of the City of Grapevine authorizes participation
in the contract established by Tarrant County, Texas.
Section 3. That the City Manager, or his designee, is authorized to take all steps
necessary to establish participation in the contract for Asphalt Road Surfacing Products.
Section 4. That this resolution shall take effect from and after the date of its
passage.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 15th day of July, 2008.
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APPROVED:
ATTEST:
APPROVED AS TO FORM:
RES. NO. 2