BACKGROUND

In May 2014, after a competitive bid process, the Village Board awarded a three-year contract to Schroeder Asphalt Services of Huntley, Illinois for roadway repairs using Hot Mix Asphalt Repairs (HMA). The contract is set to expire in May of 2017. HMA contracts are an important tool for Public Works to maintain asphalt throughout the Village and extend the life of our streets. This contract enables various Units within Public Works to have HMA services performed for driveway apron and roadway restoration that is generally the result of maintenance related excavations.

Public Works is requesting Village Board approval to extend the existing contract for Hot Mix Asphalt for one year, which will be the first of three possible one-year extensions. This extension would begin in May of 2017 and conclude in May of 2018.

Schroeder Asphalt has submitted a letter requesting a one-year contract extension with no unit price increases from the last year.

If this contract is rebid, the chances for unit price increases are high, as these rates are primarily labor based and hourly rates have increased by several percent over the last three years. While the total costs are dependent on the actual quantities used, Public Works expenditures will not exceed the total budgeted amount of $508,680. The bidder has been determined to be responsible and the contract extension meets specifications.

RECOMMENDATION

It is recommended that the Village Board award a one-year contract extension to Schroeder Asphalt Services of Huntley, Illinois and authorize execution of all necessary documents. The contract extension would be awarded with no increase to the original unit prices.