AGENDA #4g
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Award of Bid for Bulk Asphalt
DATE: July 5, 2000
The attached resolution would accept a bid and award a contract to Nello L. Teer Company for asphalt and tack coat to be used for street patching by the Public Works Department. The 2000-2001 budget includes $72,500 for this purchase.
Specifications and bid notices for asphalt and tack coat were distributed to 11 prospective vendors and 4 minority business organizations in North Carolina.
The Notice to Bidders was published in the June 9, 2000, edition of The Chapel Hill News. Five bids were received and opened June 20, 2000, at 3:00 p.m. One of these was invalid because the bidder failed to attach the required bid bond. The four valid bids are as follows:
Thompson-
ITEM Nello Teer Riley Paving Arthur Lee Paving
Asphalt Type II $25.25/Ton $26.00/Ton $29.00/Ton $32.00/Ton
Asphalt I-2 $28.50/Ton $27.00/Ton $29.00/Ton $32.00/Ton
Asphalt HB $24.25/Ton $30.00/Ton $30.00/Ton $32.00/Ton
Asphalt HDB $25.00/Ton $30.00/Ton $30.00/Ton $32.00/Ton
Tack Coat $1.00/Gal. $2.50/Gal. $1.50/Gal. $1.45/Gal.
Total $61,075.00 $64,850.00 $69,150.00 $75,775.00
DISCUSSION
The process of patching streets requires that asphalt and tack coat be picked up by Town trucks and delivered to the site when needed. It is impractical to stockpile the material because it must be used when hot from the plant; therefore, we have considered costs in addition to the materials price in analyzing these bids.
The year-round availability of hot asphalt is important. The availability of hot-mix asphalt during cold weather allows us to make stable patches when we otherwise would have to use "cold patch," which is unstable. Potholes receiving cold patch typically disintegrate over the winter, resulting in expensive future repairs.
We received four valid bids from vendors with distances from Chapel Hill noted:
Lee Paving Co. - sixteen miles - twenty-eight minutes
Nello Teer - eighteen miles - thirty-nine minutes
Riley Paving Co. - twenty-nine miles - forty-three minutes
Thompson-Arthur - thirty-six miles - forty-six minutes
Given the estimated 275 round trips we make each year and the relative distance of each vendor, we have estimated mileage and travel costs as follows:
Vendor Miles Time (Hours) Cost
Lee Paving Co. 8,800 256 $12,386
Nello Teer 9,900 357 $14,965
Riley Paving Co. 15,950 394 $21,384
Thompson-Arthur 19,800 421 $25,531
The calculation is based on "Special Terms and Conditions," paragraph 2, of the bid proposal. In this section, it was stated that travel costs would be calculated and considered as part of the total cost. When the travel costs are calculated, the comparative costs of the four valid bids submitted are as follows:
Asphalt Transportation
Bidder Bid Cost Total Cost
Nello Teer $61,075 $14,965 $76,040
Riley Paving Co. $64,850 $21,384 $86,234
Lee Paving Co. $75,775 $12,386 $88,161
Thompson-Arthur $69,150 $25,531 $94,681
Therefore, we conclude that the total bid of Nello Teer in the amount of $76,040 is the most favorable to the Town.
Option to Extend Contract
This contract may be extended by one year if mutually agreeable to both the Town of Chapel Hill and Nello Teer at the same unit prices. If extended, the contract award would be within approved funding for Fiscal 2001-2002.
RECOMMENDATION
That the unit prices bid by Nello Teer, as stated
above, for asphalt and tack coat be accepted by adoption of the attached resolution.
A RESOLUTION AWARDING A CONTRACT FOR ASPHALTIC CONCRETE AND TACK COAT (2000-07-05/R-6)
WHEREAS, the Town of Chapel Hill has solicited formal bids by legal notice in The Chapel Hill News on June 9, 2000, in accordance with G.S. 143-129 for asphaltic concrete and tack coat for street patching; and
WHEREAS, the following valid bids have been received and opened on June 20, 2000, at 3:00 p.m.
Thompson-
ITEM Nello Teer Riley Paving Arthur Lee Paving
Asphalt Type II $25.25/Ton $26.00/Ton $29.00/Ton $32.00/Ton
Asphalt I-2 $28.50/Ton $27.00/Ton $29.00/Ton $32.00/Ton
Asphalt HB $24.25/Ton $30.00/Ton $30.00/Ton $32.00/Ton
Asphalt HDB $25.00/Ton $30.00/Ton $30.00/Ton $32.00/Ton
Tack Coat $1.00/Gal. $2.50/Gal. $1.50/Gal. $1.45/Gal.
Total $61,075.00 $64,850.00 $69,150.00 $75,775.00
WHEREAS, the additional cost to the Town caused by the differences in distance between the plants of the other three vendors relative to that of the Nello Teer plant results in the lowest total cost for Nello Teer; and
WHEREAS, the year-around availability of hot-mix asphalt is important to the Town's ability to maintain its system;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Town accepts the bid of Nello Teer in the amount stated above in the tabulation.
BE IT FURTHER RESOLVED that this contract may be extended by one year if mutually agreeable to the Town and Nello Teer at the same unit prices.
This the 5th day of July, 2000.