Title
Consider and take action on a resolution authorizing a two-year agreement with American Materials, Inc. for the purchase of hot mix asphalt material for city-wide street repairs in an amount not to exceed $649,000 (Director of Public Works)
Background:
Approval of this resolution will authorize an agreement with American Materials, Inc. 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. Bid tabulation is as follows:
American Materials, Inc. - $649,000 (2 years)
• $82/ton plus applicable delivery cost - First mile $4.50, each additional mile $0.30
• Estimated cost of delivered product - $242,500 annually
• Estimated cost of delivered product by City - $82,000 annually
Texas Materials Group - $649,500 (2 years)
• $85/ton plus applicable delivery cost - First mile $4.00, each additional mile $0.30
• Estimated cost of delivered product - $239,750 annually
• Estimated cost of delivered product by City - $85,000 annually
Vulcan Construction Materials, LLC - $705,000 (2 years)
• $90/ton plus applicable delivery cost
• Estimated cost of delivered product - $262,500 annually
• Estimated cost of delivered product by City - $90,000 annually
American Materials, Inc. will provide an estimated amount of 7000 tons (two years) 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 - 50), Bruce (PCI - 20), Boden (PCI - 29), Ave F (PCI - 25), Mayhaw (PCI - 37), Bess Rd (PCI - 16), Hill Avenue (PCI - 42), Delaware Ave. (PCI - 40), Coryell (PCI - 27), Orange Grove (PCI - 31), Dellore (PCI - 59), Linda St. (PCI - 28), Willow (PCI - 40). 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.
The proposed bid pricing reflects an approximate 21% increase in cost for asphaltic materials and is a representation of the current volatile market of petroleum-based products. The total award price of $649,000 is based on a maximum usage estimate for bid purposes, to account for unforeseen large volume projects with alternative funding. Expected two year expenditures will conform to approved annual budget amounts.
Based on the bid prices, staff recommends American Materials, Inc. be awarded the hot mix asphalt agreement.
FY24 funding sources for asphalt materials will include $50,000 annually from Streets & Stormwater Operations Budget and $100,000 annually from Capital Reinvestment Funds. FY25 & FY26 will be determined during applicable budget development process.
CONTRACT ORIGINATION: Agreement has been reviewed by the City Attorney’s Office.
Attachments:
1. Proposed Resolution
2. Exhibit A - Agreement with American Materials, Inc.
3. Recommendation Memorandum
4. Bid Tabulation
5. 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 FY2024. For FY2025 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