SUBJECT
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Consideration to renew annual supply contract number FY21-078 with the following vendors:
1.) Emperor Services LLC, Laredo, Texas in an amount up to $500,000.00 for the purchase of:
a. Gravel delivered to Public Works and Utilities Job Site - $33.00/Cubic Yard;
b. Gravel picked up by City Trucks - $14.00/Cubic Yard;
c. 3/8" Pea Gravel picked up by City Trucks - $20.00/ton;
d. 3/8" Pea Gravel delivered to Public Works and Utilities Job Site- $33.00/ton;
e. Flexible Base-Caliche delivered to Public Works and Utilities Job Site- $18.15/ Cubic Yard;
f. Flexible Base-Caliche picked up by City Trucks - $8.49/Cubic Yard;
2.) La Flecha Materials, Laredo, Texas in an amount up to $70,000.00 for the purchase of:
a. Red Top Soil Job Site Delivery - $39.00/Cubic Yard w/$60.00 delivery charge;
b. Fill Dirt Job Site Delivery - $26.00/Cubic Yard w/$60.00 delivery charge.
This contract is for the purchase of materials required for all city paving and construction projects. The term of this contract shall be for a period of one year beginning as of the date of its execution. The contract may be extended for one additional one year period, each upon mutual agreement of the parties and contingent upon future funding appropriations. Emperor Services has submitted an average 11% price increase during the last extension period due to a cost increase in materials. La Flecha Materials has submitted an average 16% increase due to a cost increase in materials. All materials are purchased on an as needed basis and funding is available
in General Fund-Public Works and Parks & Recreations Departments, Utilities Department, and other various construction project budgets.
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PREVIOUS COUNCIL ACTION
Approved a one-year contract 6/05/23.
BACKGROUND
This contract establishes pricing for the purchase of materials used in street paving, street reconstruction, and general repair projects for all City Departments. Bid pricing is F.O.B. job site delivery of materials and F.O.B picked up by City Trucks at the material provider's plant. Due to a price increase in materials, there was an average 16% price increase submitted by La Flecha Materials and 11% price increase submitted by Emperor Services during the last extension period due to a cost increase in materials. The term of this contract shall be for a period of one year beginning as of the date of its execution. This is the last extension period for this contract.
Current Pricing and Proposed increase list attached.
COMMITTEE RECOMMENDATION
None.
STAFF RECOMMENDATION
recommendation
It is recommended that these contracts be renewed.
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Fiscal Impact
Fiscal Year: 2024.
Budgeted Y/N?: Yes.
Source of Funds: Various Funds.
Account #: Various Funds.
Change Order: Exceeds 25% Y/N: No.
FINANCIAL IMPACT:
These materials are used by city departments required for all city paving, repair and construction projects. The purpose of this contract is to establish prices for the commodities or services needed, should the City need to purchase these commodities or services. The City’s obligation for performance of an annual supply contract beyond the current fiscal year is contingent upon the availability of appropriated funds from which payments for the contract purchases can be made. If no funds are appropriated and budgeted during the next fiscal year, this contract becomes null and void.