1982-04-07 Regular Meeting - Laserfiche WebLink

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~ ~ CITY OF LA PORTE • INTER-OFFICE MEMORANDUM T0: Jack Oar , Cit/yr I~ gager DATE: c / t/ FROM: Jerry~r.~Hod ,( irector of Public Works :~ SUBJECT: Heate ~'A"sphal Storage Bids a~ Ei Y March 19, 1982 Last summer, while preparing the upcoming budget, quotes were solicited for a heated asphalt storage tank. Through a misunderstanding, Public Works Department was quoted on a cold oil storage tank without heater and necessary piping. This amount, Twenty Thousand Dollars ($20,000.00), was approved by Council for inclusion in the 1981-1982 Budget. Bids were submitted by Plains Machinery Company and R.B. Everett & Company. Low bid, from Plains, was Twenty Nine Thousand Two Hundred Dollars 0 29,200.00). This amount is Nine Thousand Two Hundred .Dollars 09,200.00) over the budgeted amount. This tank is essential for the street program. In the past, heated oil was shipped in tank trucks and the City was charged freight on Five Thousand (5,000) gallons, regardless of the amount shipped. In addition, • a demurrage charge of Twenty Dollars ($20.00) per hour is charged for a tank truck to sit idle, which is necessary because the distributor truck holds only Fifteen Hundred (1500) gallons. Often it takes all day to empty the tank truck, as the oil must be reheated on the distribution truck. This results in more demurrage charge as well as idle time for crews waiting for the oil to heat. In order to more efficiently carry on the Street program, I request that Council appropriate the additional Nine Thousand Two Hundred Dollars ($9,200.00) from the General Fund Contingency and award the bid to Plains Machinery Company in the amount of Twenty Nine Thousand Two Hundred Dollars 0 29,200.00). If you should have any questions, please advise. JLFI/me ~~