SUBJECT
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Consideration to renew contract FY24-076 for the supply of Tack Coat Emulsified Asphalt Oil used in street paving, street construction, and general repair projects for all City departments to:
Anderson Columbia, Weslaco, Tx. as the Primary Vendor: $375,000.00 annually.
Ergon Asphalt & Emulsions, Jackson, Ms. as the Secondary Vendor: $100,000.00 annually.
For a total of four-year contract value of $1,900,000.00. There was a price increase in this last extension period. The term of this contract shall be for a period of one year, this is the second of three, one-year extension periods. All materials will be purchased on an as needed basis. Funding is available in General Fund-Public Works Department and construction project budgets.
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PREVIOUS COUNCIL ACTION
Contract awarded by Council on 07/22/24, Extension 1 of 3 approved by Council on 08/04/25.
BACKGROUND
The City went out on formal bid solicitations for awarding a contract for the supply of Tack Coat Emulsified Asphalt Oil. Staff recommended Anderson Columbia as the Primary vendor as their cost per gallon is less picking up material from that location, Ergon Asphalt & Emulsions is the Secondary vendor. The term of this contract shall be for a period of one year and may be extended for three, additional one year periods, this is Extension 2 of 3.
Price Summary:
Vendor: Anderson Columbia
Location/Miles: Laredo, Tx./4.1
Rate $1.00/mile: $4.10
Unit Price/gal: $5.50
Unit Price/gal w/mileage: $9.60
Vendor: Ergon Asphalt & Emulsions
Location/Miles: Corpus Christi, Tx./136
Rate $1.00/mile: $136
Unit Price/gal: $2.85
Environmental Fee/gal: $0.00150
Unit Price/gal w/mileage: $138.8515
COMMITTEE RECOMMENDATION
None
STAFF RECOMMENDATION
recommendation
It is recommended that this renewal be approved.
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Fiscal Impact
Fiscal Year: 2026
Budgeted Y/N?: Yes
Source of Funds: Street Construction Project Budget
Account #: 101-2730-532-3014
Change Order: Exceeds 25% Y/N: No
FINANCIAL IMPACT:
Funding is available in General Fund-Public Works Department and construction project budgets.