HomeMy WebLinkAboutItem 14 - Micro-Surfacing and Slurry Seal Services ITEM # 1
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: APRIL 6, 2010
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 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 renewal of an annual contract for the purchase of
micro-surfacing and slurry seal services. Purchases will be made on an as
required basis from Viking Construction through an Interlocal Agreement with the
City of Euless, Texas. Bids were taken by the City of Euless, Texas and a
contract was awarded to Viking Construction, Inc. under bid number 006-09. The
Interlocal Agreement and Cooperative Purchasing Agreement satisfy all bidding
requirements under the Local Government Code. Council approved establishing
this contract on May 19,2009.
Micro-surfacing is the application of a % to Yz inch 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 one-third 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 fife of the street while
adding a rich black texture to the roadway surface.
Bids for micro-surfacing and slurry seal services were solicited by the City of
Euless, and an annual contract was established with Viking Construction, Inc.
effective April 28, 2009 and has been renewed through February 2011. Annual
expenditures will be limited to the annual budget for this product. Due to the
rising cost of raw materials,.Viking Construction requested a 7% increase in price
which was approved by the City of Euless. Viking Construction has prodded this
service in the past with satisfactory results.
Staff recommends approval to renew an annual contract for micro-surfacing and
slurry seal services from Viking Construction through an Interlocal Agreement
with the City of Euless.
GR
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VIKING 2592 Shell Road
Georgetam,TX 78628
Construction, Inc. Office 1(512)930-5777 Y Facsimile 1(512)868-1955
Preverving Texas roads with
isrdcle and inlen°mil=
Specializing in Micrd-Surfacing and Slurry Seal
pavement maintenance
February 3, 2010
City of Euless
ATTN. 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. 25-29,2010. are enclosed..
On page 10 of the April 09 report for the Dallas, TX area Asphalt cement was selling at 365-385 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 43 gives the BLS producer price index for asphalt. From April 09
at 163.6 to December 09 at 209.8 indicates an increase of 2.8.2%. 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 44 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 209.5 and Dec. 09 at 256.6, a 22.5%
increase.
' ����� 2592 Sher Road
Georgetown,TX 78628
Construction, Inc. Office 1(512)930-5777 V Facsimile 1(512)865-1955
Preserving Texas roads ivuh
,pride and integrity.
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 201.0 season.
Sincerely,
Barry H. Dunn
President
Viking Construction, Inc.
Viking Construction
2009 2010
Pricing Pricing
»... ,. : #� . .. : ate [ .
1 1 Sq Yd Furnish and Install Asphalt Slurry Seal $2.38 $2.55
2 1 Sq Yd Furnish and Install Micrasurfacing $3.50 $3.75
7%