HomeMy WebLinkAboutItem 15 - Micro Surfacing and Slurry Seal ServicesM Mm. r
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: MARCH 15, 2011
SUBJECT: APPROVAL TO RENEW AN ANNUAL CONTRACT FOR MICRO -
SURFACING AND SLURRY SEAL SERVICES THROUGH AN
INTERLOCAL AGREEMENT AND ESTABLISHED CONTRACT
WITH THE CITY OF EULESS.
RECOMMENDATION:
City Council to consider approval to renew an annual contract with Viking Construction
Inc. through an Interlocal Agreement with the City of Euless for the purchase of micro -
surfacing and slurry seal services by the Street Department on an as- required basis.
FUNDING SOURCE:
Funds are available in account number 174 - 43301 - 090 -000 Street Maintenance /Capital
Replacement/Annual Street Maintenance and Overlay/ Transportation Infrastructure
Maintenance in the amount of $40,000.
BACKGROUND:
This request is to approve a contract for the purchase of micro - surfacing and slurry seal
services. Purchases will be made as required and in accordance with an existing
interlocal agreement with the City of Euless as allowed by Texas Local Government
Code, Section 271.102.
Council approved a resolution on May 19, 2009 authorizing participation in an interlocal
agreement with the City of Euless. The interlocal and cooperative purchasing agreement
allows each City to purchase from existing contracts and satisfies all bidding
requirements under the Local Government Code.
Bids were taken by the City of Euless and a contract was awarded to Viking Construction
Inc. under bid number 006 -09 by the City of Euless City Council on April 28, 2009. The
contract term was for one year with four, one -year renewals. This contract renewal is for
the second renewal period and runs through February 28, 2012 (see attached
paperwork).
Micro- surfacing is the application of '/4° to W of oil and sandy aggregate applied to the
surface of asphalt streets to restore the wear surface, while rejuvenating the oxidized
asphalt. There is no bleeding and the street will have the appearance of new overlay for
approximately 113 of the cost of other types of applications. The slurry seal process is a
mixture of rock, emulsion, water, polymers and portland cement that prolongs the life of
the street while adding a rich black texture to the roadway surface.
Annual expenditures will be limited to the annual budget for this product. Due to the
rising cost of raw materials, Viking Construction Inc. requested a 5% increase in price
which was approved by the City of Euless (see attached paperwork). Viking Construction
Inc. has provided this service in the past with satisfactory results.
Staff recommends approval to renew an annual contract for the purchase of micro -
surfacing and slurry seal services on an as- required basis from Viking Construction Inc.
through an Interlocal Agreement with the City of Euless.
VTKTNCT
2592 Sbell Road.
Georgetown, I.X 78628
Construction, Inc. Office 1(512)930-5777 V Facsimile 1(512) 868 -1955
Preserving Texas malts will,
stride and haegriot
Specializing in Micro - Surfacing and Slurry Seal
pavement maintenance
February 3, 2010
City of Euless
ATTIC: J.T. Ackermann, Public Works Manager
1513 West Park Way
Euless, TX 76040
Re: Bid # 006 -09 Annual Agreement to provide Slurry Seal and Micro- Surfacing
Dear Mr. Ackerman.
Following up our letter of Jan. 21, 2010 regarding our request for a price increase on the above
referenced contract we offer the following documentation as justification for our request.
1. Copies of "Asphalt Weekly Monitor" for the week of April 6-10,2009 (Bid date was April 16, 2009)
and the most current week of Jan. 25 -29, 201(1 are enclosed.
On page 10 of the April 09 report for the Dallas, TX area Asphalt cement was selling at 3 65-3 85 or
average of $375.00/ton.
On page 11 of the Jan. 2010 report the prices has increased to 400 -450, average $425.00 /ton, a 13.3%
increase.
Our Asphalt Emulsion supplier expects sharp increases above this, as we get into the 2010 paving
season.
Additionally enclosure marked as #3 gives the BLS producer price index for asphalt. From April 09
at 163.6 to December 09 at 209.8 indicates an increase of 28.2 %. December 09 are the latest BLS
statistics available.
2. Diesel Fuel
Affects not only our operating costs for equipment but also delivery process for the aggregate and
asphalt emulsion. The enclosed report #4 from U.S. EIA pages 1 & 2 indicate diesel fuel going from
$2.46/gal in 09 to $2.981 gal in 2010. A 21.1% increase.
Report #5 from Fleet Owner indicate the same increases for diesel fuel for 2010.
The BLS price index for diesel fuel (report #6) has April 09 at 2095 and Dec. 09 at 256.6, a 22.5%
increase.
VIKING Georg-et wn t X Road
78628
Construction, Inc. Office 1.(512)930 -5777 T Facsimile 1 (5:12) 868 -1955
=iag .Texas gads )VU11
pride and iniegHt)t
3. Labor Cost
Although cost of living and wage surveys show basically flat we are expecting to provide
modest wage increases for our employees in order to continue to provide incentives.
We trust this information proves sufficient backup for you to approve the 7% increases we have
requested. for the 2010 season.
Sincerely,
Barry H. Dunn
President
Viking Construction; Inc.
VIKING CONSTRUCTION INC
2592 SHELL RD
GEORGETOWN, TX 78628
ACCOUNT NO.
DESCRIPTION
pURbKASE
ORDER Th . Nuni ew Mu pees �n All
Invoices. Delivery Slips, Cases, -,
Boxes, packing Slips & B L's.
!VOTE VENDOR
INSTRUCTIONS
DELIVER TO: _
F Y OF EULESS
LIC WORKS
3 WESTPARK WAY
LESS, TX 78040
QUANTITY I UNIT PRICE I EXTENSION
0
i
h��P?
0
ANNUAL CONTRACT FOR SLLRR SEAL & MIGRo-°SU FACING
EFFECTIVE DATEi 02928/11
RjTITTECED DATE: s�2124500. .00 �I4
KS. T❑ BE ORDERED ON AN A NEEDED BASIS.
ITIES
— SURFACING $2.68/Sy
NOTE: The delivered of Euje_ will without s purchase order. any
VENDOR INSTRUCTIONS
Euless -
I. INVOICING: Original and 2 spy >o: ®pa �r¢ment ai. Financing
201 N. _.tor Drive
Euless, Texas:76Q39
?, NO F=EDERAL TAX or STATE SALES TAX shall be i1cluded in prices billed.
Limited Sales Tax #75- 60046+44
3. TERMS: 2% 10 Net 30 Unless otherwise specified.
cuiooinir- 11%MTRiiCTIONS: F.O.B. DESTINATION. (Unless Otherwise Stat
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