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REQUEST FOR COUNCIL ACTION <br />DATE: 03/05/03 <br />ITEM: X1. A. <br />Department Approval: Manager Reviewed: Agenda Section: <br />4 Consent <br />1 <br />Item . and 2003 Street Maintenance Material Bids <br />Background: Annually, the Street Department receives bids for materials, which are used for <br />seasonal maintenance operations. Materials bid include aggregate for seal coating, bituminous <br />materials for road repair, asphalt emulsion for seal coating} and Class 5 gravel for base repair. <br />Policy Objectives: Each year city staff uses the competitive bid process to secure maintenance <br />Materials that fall within budget guidelines. This allows maintenance programs to be completed <br />as planned with quality materials at the lowest possible cost to the city. <br />Financial I rnplic ations : Street maintenance materials are financed out of the General Fund_ <br />The combined bids received are higher than the budgeted increase in material costs projected for <br />2003. Maintenance programs will need to be reduced slightly to stay within budgeted amounts <br />for 2003. while the impact to the infrastructure of reduced maintenance will not be significant in <br />the short term, a long term reduction in pavement maintenance would reduce the life of the <br />investment in this In frastrncture. <br />Discussion of • . Bids were received and opened on February 25, 2003. All materials were <br />bid higher than 2002. These materials are impacted by the fluctuation in the oil markets. <br />Increases in prices ranged from one to fifteen percent increase over 2002 pricing with the greatest <br />increase in the bituminous materials and the seal coat oil pricing. with the exception of ` asphalt, <br />materials are typically delivered to the Public works Department. The attached bid tabulation <br />summarizes all bids received and shows the comparison with 2002 prices. <br />UMT PRICE UNIT PRICE <br />BIDDER WILL/ CALL DELIVERED <br />Class 5 crushed limestone <br />Aggregate Industries $5.85 S 9.64 <br />Bryan lack Prod 6.50 $10.07 includes tax <br />2002 price /del $9.15 /ton + tax <br />FA-2 Class A Aeareizate <br />Martin Marietta Aggregate $18.58 $18,58 <br />Midwest Asphalt 20.00 22.80 <br />Dresser Traprock 1 8.75 23.95 <br />2002 price /del $18.45/ton <br />