Title
Consider and take action on a resolution authorizing a one-year renewal agreement with American Materials, Inc. for the purchase of hot mix asphalt material for city-wide street repairs in an amount not to exceed $324,500 (Director of Public Works)
Background:
Approval of this item will authorize a one-year renewal agreement with American Materials, Inc. for the purchase of hot mix asphalt material for city-wide street repairs from April 1, 2026 through March 31, 2027 in an amount not to exceed $324,500, with the option to renew for two (2) additional one-year periods.
On April 9, 2024 Council approved a two-year agreement with American Materials, for the purchase of hot mix asphalt material for city-wide street repairs from April 1, 2024 through March 31, 2026 in an amount not to exceed $649,000, with the option to renew for three (3) additional one-year periods.
On February 7, 2024, the City released an Invitation to Bid (ITB) #24-015 Hot Mix Asphalt for City-Wide Street Repairs for this item. Three bids were received on March 5, 2024. American Materials, Inc. was the lowest qualified bidder in the amount of $82.00 based on price per ton.
American Materials, Inc. will provide an estimated amount of 3,500 tons (one year) of hot mix asphalt for the City’s in-house asphalt roadway rehabilitation program. Materials for this program is currently funded by the Streets/Storm/ & Traffic Department operations budget and Capital Reinvestment Program Funding. City forces currently perform approximately two-lane miles of roadway rehabilitation per year. These efforts are focused on lesser scale asphalt roadway rehabilitation projects such as dead ends, short local roadways, roadways in remote locations, potholes, etc. Proposed streets for this contract period include but are not limited to the following: Abilene (PCI - 48), Bruce (PCI - 18), Steddum (PCI-56), Ave F (PCI - 23), Leisure Ln (PCI - 35), Weyer (PCI - 30); 18th Street (PCI - 12), Ohio Ave (PCI - 17), Orange Grove (PCI - 22), Palomino Lane (PCI - 19), Dellore (PCI - 43), League Street (PCI - 40), Willow (PCI - 30).The aforementioned Pavement Condition Index (PCI) ratings from the City’s Pavement Assessment Study range from 0-29 Failed, 30-49 Poor, and 50-69 Fair. The program also provides materials for incidental City asphalt projects i.e., parking lots, parking aprons, driveways, etc.
American Materials, Inc. has agreed to the terms of this renewal, and staff is requesting Council’s consideration to approve the first renewal option of the current contract agreement with American Materials, Inc. in an amount not to exceed $324,500. Staff recommends renewing the agreement for hot mix asphalt material based on the company’s performance history and fair market pricing.
FY2026 funding sources for asphalt materials will include $50,000 annually from Streets & Stormwater Operations Budget and $100,000 annually from Capital Reinvestment Funds. FY2027 will be determined during applicable budget development process.
Attachments:
1. Proposed Resolution
2. Exhibit A - Agreement with American Materials, Inc.
3. Contract Renewal Letter
4. Approved Data Sheet 04.09.2024
5. Original Agreement
6. Vendor Report Card
FUNDING
{X} Funding in the amount of $100,000 is available from fund 5017 Reinvestment Cash with expenses charged to project expense string RE1704F-CONSTRUCT-CONSTRUCT-RE CASH and $50,000 is available from Streets and Stormwater - Concrete, Asphalt and Aggregate Supplies Account #3300000-51910 for FY2026. For FY2027 and each additional renewal, thereafter, the hot mix asphalt material purchase will be based on that fiscal year’s budget. Historically, $50,000 is budgeted annually from Streets & Stormwater Operations Budget 3300000-51910 and $100,000 from Capital Reinvestment Funds (RE1704F).
STRATEGIC PLANNING
{X} Addresses Strategic Planning Critical Success Factor# 1 - Develop and Maintain Infrastructure