HomeMy WebLinkAboutItem 15 - Asphalt Road Surfacing C� I '� y p� �{' �
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MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER ��'
MEETING DATE: NOVEMBER 18, 2008
SUBJECT: APPROVAL TO ESTABLISH AN ANNUAL CONTRACT FOR
ASPHALT ROAD SURFACING PRODUCTS THROUGH AN
INTERLOCAL AGREEMENT AND ESTABLISHED CONTRACT
WITH TARRANT COUNTY, TEXAS
RECOMMENDATION:
City Council to consider approval to establish an annual contract with JLB Contracting, LP
as a secondary source forAsphalt Road Surfacing Products through an existing Interlocal
Agreement and Contract with Tarrant County, Texas.Annual expenditures will be limited to
the annual budgeted amount for this service.
FUNDING SOURCE:
Funds for this purchase are available in account 174-43301-090-000 Street Maintenance/
Capital Replacement/Transportation Infrastructure Maintenance $500,000.
BACKGROUND:
The contract and subsequent purchases will be made in accordance with an existing
Interlocal Agreement with Tarrant Courty, Texas under biu rumUer 2006-186 a�d as
allowed by Texas Local Government Code, Section 271.102. This commodity was bid by
Tarrant County and a contract that included two, one-year renewal periods was awarded by
Commissioners Court on July 24, 2007. Tarrant County Commissioners Court approved
the first renewal period on July 22, 2008.
In the past, the City established its own contract for asphalt. It was determined that
purchasing through the cooperative purchasing process would present a significant cost
advantage for the City. With 25 public entities participating in the contract, including
Tarrant County, the collected volume has helped secure a lower cost for asphalt for the last
few years. Council approved a primary source for this contract on July 15, 2008. This
secondary source would cover the city's needs in case the primary vendor was not able to
have resources or meet demands.
The current cooperative contract includes the Cities of Colleyville, Grand Prairie, Bedford,
Haltom City, Southlake, Keller, Hurst and Flower Mound.
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Due to increases in liquid asphalt and fuel, JLB Contracting, LP had a recent price increase
that was approved and accepted by Tarrant County (see attached documentation). JLB
Contracting, LP has provided this service in the past with satisfactory results.
Staff recommends approval to establish an annual contract with JLB Contracting, LP as a
secondary source for Asphalt Road Surfacing Products through an existing Interlocal
Agreement and Contract with Tarrant County, Texas.
GR
_ -------_ ---- __—.- ------._.--- -___.._..----_ -_._-
(10/13/2008) Gary Roscher-JLB IncreasP "� 7-08.pdf Page 1 ',
JlB Contracting, lP
October 7, 2008
Neil Ewing C.P.M. Senior Buyer
Tarrant County Purchasing Dept.
100 E.Weatherford, Suite 303
Fort Worth, TX 76196-0104
Dear Mr. Ewing:
We need to change prices on RFB 2006-186 Annual Road Surface Products as per page
11 of the original bid of August 21,2006.
Tf�e price of liquid asphalt in August of 20Q6 was$398 per ton(see attached}. The price
as of September 2008 is$663 per ton, an increase of$265 per ton. The HMAC requires
5% liquid asphalt per ton. Therefore,the increase is$265 x .05 = $13.25 per ton. This
resu(ts in an increase as folEows from our origina!pricing.
Original Oct. 2006 Revised Oct. 2008
1 44.50 1 57.75
2 44.00 2 57.25
3 44.55 3 57.80 '
4 44.55 4 57.80
These wiU also be our price for anyone buying under the county's interlocal agreement.
I appreciate you adjusting these prices and am looking forward to doing future business
with Tarrant County.
Sincerely,
� �
James G. Humphrey
President
JGH:Imo
Enc:
P.O. Box 24131 Forf Worth,Texas 76124-1131 (817) 261-2997 Fax (817) 261-3044 I
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