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.
The term of this contract shall be for a period of one year, this is the first 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.
BACKGROUND
The City went out on formal bid solicitations for awarding a contract for the supply of Tack Coat Emulsified Asphalt Oil. Staff recommended awarding the second lowest Anderson Columbia as the Primary vendor as the cost per gallon is less picking up material locally. 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 1 of 3.
Price Summary:
Vendor: Anderson Columbia
Location/Miles: Laredo, Tx./4.1
Rate $1.00/mile: $4.10
Unit Price/gal: $5.00
Unit Price/gal w/mileage: $9.10
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: 2025
Budgeted Y/N?: Yes
Source of Funds: Construction Project Budget
Account #: 101-2730-532-3014
Change Order: Exceeds 25% Y/N: No
FINANCIAL IMPACT:
The purpose of this contract is to establish prices for the commodities or services needed, should the City need to purchase these commodities or services. The City's obligation for performance of an annual supply contract beyond the current fiscal year is contingent upon the availability of appropriated funds from which payments for the contract purchases can be made. If no funds are appropriated and budgeted during the next fiscal year, this contract becomes null and void.
VIVA LAREDO PLAN ALIGNMENT
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