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HomeMy WebLinkAboutItem 15 - Asphalt Road Surfacing C� I '� y p� �{' � l���.,�43i• 7f '6 t . 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. � ; , i 3 � � � • E � t 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. 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