From
Glenda Peterson
Title
Price agreement for hot mix asphalt from Reynolds Asphalt and Construction Co. for an annual cost of $450,000 through a Master Interlocal Agreement with the City of Arlington for one year with the option to renew for four additional one year periods totaling $2,250,000 if all extensions are exercised; and authorize the City Manager to execute the renewal options with aggregate price fluctuations of the lesser of up to $50,000 or 25% of the original maximum price so long as sufficient funding is appropriated by the City Council to satisfy the City's obligation during the renewal term(s)
Presenter
Gabriel Johnson, Public Works Director
Recommended Action
Approve
Analysis
This price agreement is for the purchase of hot mix asphalt and will be utilized by the Street Services Division, for pavement repairs to asphalt streets.
State purchasing laws, Local Government Code, Chapter 271, authorize local governments to enter into joint contracts and cooperative agreements for the performance of governmental functions normally associated with the operation of government such as purchasing necessary materials and supplies.
The City approved a Master Interlocal agreement with City of Arlington whereby the City could make use of all of that entity's agreements. This communication is to notify the Council that staff would like to make use of this particular agreement and enter into an annual contract with Reynold's Asphalt & Construction Company for the purchase of hot mix asphalt for the initial twelve (12) month term and, all of the four optional one-year renewals as executed by City of Arlington. The estimated annual expenditure will be $450,000.
Financial Consideration
Funds are available in FY 2018/2019 General Fund Budget, (251210) Street Maintenance (63030) Roads, Streets & Highway Maintenance; and will be charged accordingly on orders through the end of the current fiscal year. Funding for future fiscal years will be paid from that year's approved budgets.