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Home My WebLink AboutOrdinance 4566ORDINANCE NO. 4566 AN ORDINANCE TO WAIVE COMPETITIVE BIDDING AND AWARD AN EXTENSION OF A CONTRACT WITH DYCHEM INTERNATIONAL THROUGH THE END OF 2004 WHEREAS, Dychem International was selected by competitive bidding in 1998 and awarded a contract renewable through December 31, 2003 for automatic drive through wash equipment; and WHEREAS, city staff examined other options in early 2004 but have not found a successful alternative; and WHEREAS, it would be in the best financial interest of the City to extend the current contract with Dychem International through December 31, 2004 rather than competitively bid this contract now. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby determines that an exceptional situation exists in which competitive bidding is not deemed feasible or practical and the City Council hereby waives the requirements for competitive bidding and awards a one year extension of the current Hydro Shock Fleet Washing System Lease and Chemical Purchase Agreement entered into on June 2, 1998 so that this contract will be in effect until December 31, 2004. PASSED and APPROVED this the 4`h day of May, 2004. By: FAYETTEVILLE' ATTEST: By: SO D SMITH, City APPROVED: CONTRACT EXTENSION FOR HYDRO SHOCK FLEET WASHING SYSTEM LEASE AND CHEMICAL PURCHASE AGREEMENT THIS LEASE/PURCHASE AGREEMENT EXTENSION is made and entered into this �Z / day of 2004 by and between Dychem International, Inc. ("Lessor') and the City/of Fayetteville ("Lessee'). Both parties agree to all the terms and conditions specified in the agreement dated June 2, 1998. Both parties agree that the agreement shall be extended from May 1, 2004 to December 31, 2004. Fayetteville City Council has passed and approved Ordinance No. 4566 allowing the waiver of competitive bidding and awarding an extension of the contract. A copy of the original Agreement is attached as Exhibit A. DyChem International Inc., Lessor Attest: By: Title: V. City of Fayetteville, Lessee By: m Sondra Smith, City Clerk Date: ;L ( ttiWy ,Z o o y Date: • 0 NAME OF FILE: Ordinance No. 4566 w/agreement CROSS REFERENCE: Item # Date Document 1 04/14/04 memo to mayor & city council 2 draft ordinance 3 06/02/98 copy of Res. No. 68-98 4 04/29/98 copy of bid tabulation 5 03/29/04 memo to city council 6 06/02/98 copy of agreement 7 04/14/04 letter to David Bragg 8 04/20/04 Staff Review Form 9 05/11/04 copy of fax to Barbara 10 email to David Bragg 11 05/12/04 email to Clarice Pearman & Sondra Smith 12 email to Barbara Olsen 13 email to David Bragg & Barbar Olsen 14 06/03/04 email to David Bragg & Clarice Pearman 15 06/14/04 memo to David Bragg NOTES: M � FAY ETTEVILLE f O2D s/y/a�( y5&6 CITY OF FAYETTEWLLE;1maha'111 frffl [E�fE�� o 0 o a 1474e.*et OpC�G01 Ll IR0100 1525 S. Happy Hollow Road Fayetteville AR 72701 Interdepartmental Correspondence To: Mayor/City Council Thru: Gary Dumas, Director of Operations From: David Bragg, Fleet Operations Superintendent Date: April 14, 2004 Subject: Renewal of Drive -Through Equipment Wash Contract RECOMMENDATION: That City Council approve a one year extension of an existing contract with DyChem International for drive through equipment wash equipment and supplies. BACKGROUND: The City Council by Resolution No. 68-98 entered into a contract with DyChem International to furnish and install necessary equipment in the fleet building wash bay for a drive through truck and equipment wash and for exclusive purchase of chemical supplies for the operation of the wash equipment. The contract was for one year with an option of four additional one year periods which ended December 31, 2003. Fleet staff began a search for alternative equipment and contractors in August, 2003. A trial period with an on site mobile washing contractor during January and February, 2004 was not successful. Additional time is needed to adequately research washing alternatives and consummate the contracting process for equipment washing. In order to keep the existing system operating, it is recommended that the City extend the existing contract with all of its terms and conditions for a period of one year, ending December 31, 2004. Contract terms allow for termination upon 60 days written notice, allowing an earlier transition if a more desirable alternative can be contracted. DyChem has provided written agreement to the proposed extension. Funds are available in the operating budget for ongoing washing of equipment under this contract. ORDINANCE NO. AN ORDINANCE TO WAIVE COMPETITIVE BIDDING AND AWARD AN EXTENSION OF A CONTRACT WITH DYCHEM INTERNATIONAL THROUGH THE END OF 2004 WHEREAS, Dychem International was selected by competitive bidding in 1998 and awarded a contract renewable through December 31, 2003 for automatic drive through wash equipment; and WHEREAS, city staff examined other options in early 2004 but have not found a successful alternative; and WHEREAS, it would be in the best financial interest of the City to extend the current contract with Dychem International through December 31, 2004 rather than competitively bid this contract now. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby determines that an exceptional situation exists in which competitive bidding is not deemed feasible or practical and the City Council hereby waives the requirements for competitive bidding and awards a one year extension of the current Hydro Shock Fleet Washing System Lease and Chemical Purchase Agreement entered into on June 2, 1998 so that this contract will be in effect until December 31, 2004. PASSED and APPROVED this the 4`h day of May, 2004. ATTEST: By: SONDRA SMITH, City Clerk APPROVED: 1 By: DAN COODY, Mayor n RESOLUTION NO. 68 - Q R A RESOLUTION AWARDING BID NO. 98-37 TO DYCHEivf INTERNATIONAL, INC._ TO PROVIDE FOR tAUTOMATIC 'DRIVE Tf_>?ROTJGH•WXS $EQUIPMENT', ITEM NO. I AND 2 AT NO CHARGE; AND SUPPLIES, ITEM NO.3, HYDRO WASH A (BULK) @ $5.00 PER GALLON, HYDRO WASH S (BULK) @. $5.00 PER GALLON, TRD (OPTIONAL) @ $12.75 PER GALLON, ELBOW GREASE BULK (OPTIONAL) @ $5.50 PER GALLON. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section L. That the City Council hereby awards Bid No. 98-37 to DYCHEM International, Inc. to provide for automatic drive through wash equipment, Item No. I and 2 at no charge and supplies, Item No. 3, Hydro Wash A (bulk) @ $5.00 per gallon, Hydro Wash S (bulk) @ $5.00 per gallon, TRD (optional) @ $12.75 per gallon, Elbow Grease Bulk (optional) @ $5.50 per gallon; and authorizes the Mayor and City Clerk to execute a Washing System Lease and Chemical Purchase Agreement. A copy of the lease/agreement is attached hereto marked Exhibit "A" and made apart hereof. PASSED AND APPROVED this -2!L day of dune_, 1998. APPROVED - By: &XZIIZ�4� Fred Hanna, Mayor 11 Heather Woodruff, Ciej Clerk • 0 _' n10w $ m Q m TpC Zp gy m m S r e� a�d3= d O M N m m y D C_MO'Q �Nac G G �c ? d m O O p d 1 m m m d o 0 G1 d • 0 EXHIBIT A TIES LEASE/PURCHASE AGREEMENT is made and entered into this -.9. day of / - 1998 by and between DyChem International, Inc. ("Lessor") and the City of Fayetteville ("Lessee"). WHEREAS, Lessor is engaged in the business of manufacturing and installing hydro shock fleet washing systems ("System") and the detergents to operate System ("Detergents"); and, WHEREAS, Lessee desires to lease a System and purchase Detergents. NOW, THEREFORE, for and in consideration of the mutual promises and covenants herein contained, Lessee and Lessor agree to the terms and conditions as set forth herein: 1. System Equipment. The System equipment shall include that equipment listed in Addendum "A" attached hereto and made a part hereof. 2. Lease Fees. The System shall be provided to Lessee at no monthly charge; however, Lessee agrees to a minimum monthly purchase of Detergent. 3. Term/Termination. This Lease/Purchase Agreement shall remain if effect until December 31, 1998 and shall automatically renew, subject to Lessee's budget approval, for a period of one (1) year, (the "Principal Term"). Thereafter this Lease/Purchase Agreement shall automatically renew for four (4) one (1) year terms, subject to Lessee's budget approval. The parties shall have the right to terminate this Lease/ Purchase Agreement upon sixty (60) days written notice, at any time following the completion of the Principal Term. 4. Installation. Lessor shall provide the System including all parts and equipment, as well as all labor to fully install the System and make it fully operational. Lessee shall provide the items contained in Addendum `B" attached hereto and made a part hereof. 5. Ownership of System. All parts and equipment which constitute the System shall remain the sole and separate property of Lessor. At no time shall they be considered fixtures, but instead shall constitute personal property. The title to the System shall remain with Lessor exclusively. This Lease/Purchase Agreement shall in no way imply a right to purchase the System, any such right is hereby expressly denied. At the termination of this Lease/Purchase Agreement, Lessor shall remove the System from Lessee's premises, together with all parts and equipment appurtenant thereto. Removal shall be performed in a workmanlike and reasonable manner and shall be removed within 30 days from termination of this Lease/Purchase Agreement. Lessee agrees to execute a UCC-1 form acknowledging Lessor's ownership interest in the System equipment. 6. Detergent. Lessee shall use DyChem Products exclusively in the System. 7. Detergent Fees. The fees for Detergent shall be as set forth in Addendum "C" attached hereto and made a part hereof. 8. Maintenance of System. Lessor agrees to furnish all labor, equipment, and parts necessary for the ordinary maintenance of the System, provided that such maintenance is necessitated only by ordinary wear and tear of the System resulting from its normal, ordinary, and expected use. Damage to the System resulting from any use by Lessee outside its normal, ordinary or expected use and or use contrary to the instruction of Lessor shall be repaired by Lessor; however, all expenses relating thereto, including reasonable charges for labor and materials, shall be invoiced to the Lessee for payment. 9. Terms of Payment. All payments shall be made within thirty (30) days after receipt of invoice. 10. Notice and/or Written Communication. Any notices, requests, instructions, or other written communications shall be delivered personally or sent by registered or certified mail to: LESSEE: City of Fayetteville 1525 S. Happy Hollow Fayetteville, AR 72701 LESSOR: DyChem International, Inc. ATTN: Fred Lieber 560 North 500 West Salt Lake City, UT 84116 11. Remedies. In the event of any material breach hereunder, including but not limited to purchasing detergents to be used in the System from any party other than Lessor, or failure to make timely payment concerning invoices of Lessor, the Lessor may cancel this Lease/Purchase Agreement and remove the System, and pursue other legal and or equitable remedies, as permitted by law. Lessor's failure to maintain and/or promptly repair the System shall be a breach of the Lease/Purchase Agreement. Lessee shall give Lessor written notice of such breach and Lessor shall have 14 days to perform remedial work. Failure to perform remedial work shall entitle Lessee to seek repairs from parties other than Lessor, and to pursue other legal and/or equitable remedies, as permitted by law. 12. Amendments or Modifications to this Lease/Purchase Agreement. This Lease/Purchase Agreement may only be modified or amended in writing, executed by Lessee and Lessor. 13. Assignment. This Lease/Purchase Agreement may not be assigned by either Lessee or Lessor without prior written consent of the other party. 14. Insolvency or Creditors Relief. In the event that either Lessee or Lessor becomes insolvent, makes as assignment for the benefit of creditors, or becomes the subject of any action or proceeding in bankruptcy or for the benefit of creditors, any such occurrence will be deemed a default of and will automatically terminate this Lease/Purchase Agreement. 15. Governing Law. This Lease/Purchase Agreement shall be deemed to have been executed in the State of Arkansas. Furthermore, this Lease/Purchase Agreement shall be executed in accordance with and constructed and interpreted under the laws of the State of Arkansas. 16. Entire Agreement. This Lease/Purchase Agreement, together with Addenda A, B, and C, constitute the entire lease and purchase agreement between Lessee and Lessor and shall supersede all prior agreements, written or oral, together with any memoranda, or correspondence. Any other promises, terms, conditions, or obligations not contained herein are neither binding on the parties nor actionable in a court of law. 16. Multiple Counterparts. This Lease/Purchase Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which taken together shall constitute but a single instrument. IN WITNESS WHEREOF, this HYDRO SHOCK FLEET WASHING SYSTEM LEASE AND CHEMICAL PURCHASE AGREEMENT is executed as of the day, month, and year set forth below. DyChem IntpRrafional Inc., Lessor Title: �2c�Sii>�Ni— s�i5�9.Y^ Attest: /` / By: le Title: V. i�ro ,/r 5A7r City of Fayetteville, Lessee By: Fred Hanna, Mayor Attest: By: J% Heather Woodruff, City 16rk CI • ADDENDUM "A" SYSTEM EQUIPMENT LIST BASIC FLEET WASH COMPONENTS DyChem is providing the following equipment to be used in the City of Fayetteville Fleet Wash System. Steel Arches Guide Rail Feet Set of Guide Rails Micro Switch Mounting Brackets Rinse Pipe Rinse Pump Cover Chemical Application Pump Covers Pipe Mounting Brackets PVC Piping and Fittings Customized electrical control panel with Quick Disconnect Including Motor starters, relays, transformers, terminals and all electrical components to operate system.) Chemical Solution tanks Bulk Storage Tanks Rinse Tank 30 HP Motor with Centrifugal Pump .High viscosity D-Foam Pump 1-1/2" Clay Valve and Control Micro Switches and Actuator Clamps Hydrominders with Hoses and Fittings Tee Jets -and Vee Jet Nozzles together with Unistrut steel, clamps, miscellaneous hardware necessary for chemical application. 2 side Low PH Pipe Assemblies Sch 80 1" PVC Pipe 2 side Alkaline Pipe Assemblies Sch 80 1" PVC Pipe set of Back door Low PH and Alkaline Pipe Assemblies Alkaline Wheel wash Assemblies Low PH wheel Wash Pipe Assemblies Chemical Solution Pumps F:: wands, and other LI ADDENDUM"B" EQUIPMENT TO BE PROVIDED BY LESSEE Lessee is required to do the following: Provide an adequate building for the Fleet Washing Equipment; Provide a 1 ''/2" incoming water supply at 50 psi to the Fleet Washing Equipment; Provide incoming electrical supply at 208, 230, or 440 volts, three phase with a disconnect box to the Fleet Washing Equipment. Provide an adequate sewer line, Ensure that all required permits are obtained in advance of the date of installation. rI ADDENDUM "C" I. Deterr ents Pricing PRODUCT Hydro Wash A PRICE: $5.00 per gallon DESC: Low PH Chemical Application PRODUCT Hydro Wash S PRICE: $5.00 per gallon DESC: High PH Alkaline Hydro Shock Neutralizer PRODUCT TRD (Optional) PRICE: $12.75 per gallon DESC: Xqs-1i1- These detergents are specifically Manufactured for the Fleet Wash System. They provide a perfect balance to ensure the best possible result. DyChems stringent production control standards guarantee the highest possible quality detergents. II. Minimum Monthly Dollar Volumes Required A minimum monthly Detergent purchase of $1,500.00 is required. 11. Detergent Price Increases The above pricing will take effect as sodn as the Fleet Washing System is installed. DyChem reserves the right to change these prices in the event of a dramatic increase in production costs, but will provide notice thirty (30) days notice before doing so. Pricing for the Detergents may be increased annually, but only in the event that Lessor's costs increase is in excess of three percent (3%). Total increase shall not exceed five percent (5%) of the above quoted price. 04/14/04 16:36 FAX 801 539 V CP INDUSTRIES • Dy Chem Dyehern Intemallolm6 Inc. 6W North 500 West Salt Lake Gty, Utah 64116 (801) 521-0315 (900) 453.4606 (801) 326-9503 FAX City of Fayetteville Attn: David Bragg Fleet Operations Superintendent 1525 South Happy Hollow Fayetteville, AR 72701 April 14, 2004 Dear Mr. David Bragg, DyChem International is willing to extend the contract with the City of Fayetteville for the year 2004. The contract may be terminated provided either the City of Fayetteville or DyChem International gives a 60-day written notice. Sincerely, Fred Lieber President Fjjj0 s TA•REVIEW FORM - FINANCIAL OBLIGA•N X AGENDA REQUEST CONTRACT REVIEW GRANT REVIEW For the Fayetteville City Council Meeting of: May 4,2004 FROM: David Bragg Fleet Operations Operations Name Division Department ACTION REQuiRED: Approval of extension of contract with Dychem International to provide automatic drive through wash equipment. COST TO CITY: $48,000.00 Cost of this request 9700.1910.5203.00 Account Number Project Number S 84,000.00 Category/Project Budget Y 8,624.00 Funds Used to Date Y 75,376.00 Remaining Balance Cleaning supplies Program Category / Project Name Cleaning supplies Program / Project Category Name Shop Fund Fund Name BUDGET REVIEW: X Budgeted Item Budget Adjustment Attached 4 �7„v- Budget Manag r Date CONTRACT/GRANT/LEASE REVIEW: /goo 2 a,G fa4 (5 0L .y/ /'/^,'DateInter al Audi or Date [ / / Date STAFF RECOMMENDATION: ivision d Date Dep9rtmeric Director �Date T- 2 o-dSC Finance & Internal Services Di r. Date y-:,za 0 Chief A nistrative Officer Date Mayor Date Purchasing Manager Date Received in Mayor's Office (y U7 Date lQ Cross Reference: r Previous Ord/Res#: Orig. Contract Date: Orig. Contract Number: New Item: Yes No Fayetteville, Arkansas City Clerk's Division 113 West Mountain Fayetteville, AR 72701 479-575-8323 fax: 479-718-7695 Send to: Fleet From: Clarice Buffalohead-Pearman Attention: Barbara Date: 5/11/04 Office location: Office location: 113 West Mountain Fax number: 444-3425 Phone number: 479-575-8309 ®Per Your Request ❑Reply ❑Please comment []Please review ❑FYI Total pages, including cover: 2 Sorry but getting these back from the Mayor's office takes awhile and I was out. I send the confirmation of this information to David Blagg when I have completed process in the clerk's office. From: Clarice Pearman To: Bragg, David Subject: Dychem International I have already given Barbara a faxed copy of the ordinance passed the Council last week so that she could order soap. But I do not have a written contract extension. Had I been a little more observant I would not have done so without the extension. Please see that the clerk's office get this a.s.a.p so that we can finish the processing of this ordinance. Thanks. From: Barbara Olsen To: Pearman, Clarice; Smith, Sondra Date: 5/12/04 6:01 PM Subject: DyChem contract extention Clarice and Sondra, So you will know what is going on: I have talked to Kit Williams about this and mentioned to him that you asked for an addendum for the contract. He told me that since the contract has expired, I need to get an extension rather than an addendum. I have written up an extension per Kit's instructions and will UPS it overnight to DyChem on Friday for them to sign and return by UPS overnight. When I receive the signed copy from Dychem, I will forward it to the Mayor's office, then the original will come to your office for Sondra to sign. (Unless you need me to send the original to your office first so you can take it to the Mayor and witness his signature - please let me know.) Once everyone has signed it, please send me a copy for my files Thank you, Barbara From: Clarice Pearman To: Olsen, Barbara Subject: Re: DyChem contract extention Thanks for the update on this. I prefer that you give the contract extension to the clerk's. I will then take it to the mayor's office for signature and then send you a copy of the whole ordinance package. Thanks again. CC: Smith, Sondra From: Clarice Pearman To: Bragg, David; Olsen, Barbara Subject: DyChem Just a reminder that I'm still waiting on the contract amendment. Please let me know the status. Thanks. Clarice From: Barbara Olsen To: Bragg, David; Pearman, Clarice Date: 6/3/04 10:04AM Subject: Re: DyChem Dychem signed the contract amendment on May 20th, and mailed it back to us. However, I have not yet received it. I phoned Tim early last week to ask about it - that is when he told me they had signed it and mailed it on the 20th. I called him again yesterday (the 2nd) to let him know we have still not received it. He is going to call me back today. I may have to fax them another copy so that they can sign it. Hopefully they will send it back by UPS this time. As soon as I get it, I will get it to your office Barbara CC: Smith, Sondra From: Clarice Pearman To: Olsen, Barbara Date: 6/4/04 9:37AM Subject: Re: DyChem Thanks. I just needed to know the status. FAYETTEVILLE • THE CITY OF FAYETTEVILLE, ARKANSAS City Clerk Division DEPARTMENTAL CORRESPONDENCE To: David Bragg Fleet Operations From: Clarice Buffalohead-Pearman W City Clerk Division Date: June 14, 2004 Re: Ordinance No. 4566 113 West Mountain Fayetteville, AR 72701 Telephone: (479) 575-8323 The City Council passed a ordinance, May 4, 2004, waiving the bidding process and awarding Dychem extension to their contract. Attached is a copy of the ordinance and the contract addendum. The ordinance with attachments will be recorded in the city clerk's office and microfilmed. If anything else is needed please let the clerk's office know. /cbp attachments cc: Nancy Smith, Internal Auditor DATE MESSAGE 140 : /C=d�k. M.1/i OF_ TELEPHONED PLEASE CALL CAME TO SEE YOU WILL CALLAGAIN WANTS TO SEE YOU RUSH RETURNED YOUR CALL SPECIAL ATTENTION MESSA��G��E rL 4 ` 04AA yrQ 0 Mj,4y.�ti