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HomeMy WebLinkAboutOrdinance 4680 ORDINANCE NO. 4 6 8 0 AN ORDINANCE WAIVING THE REQUIREMENTS OF FORMAL COMPETITIVE BIDDING DURING 2005 FOR THE PURCHASE OF 2 TO 8 YARD DUMPSTERS, ROLL-OFF STYLE BOXES AND RECEIVER BOXES AND TO APPROVE THE PURCHASE OF 2 TO 8 YARD DUMPSTERS IN AN AMOUNT NOT TO EXCEED $40,000.00; AND TO APPROVE THE PURCHASE OF ROLL-OFF STYLE BOXES AND RECEIVER BOXES IN AN AMOUNT NOT TO EXCEED $20,000.00. WHEREAS, previous bids were awarded to WasteEquip May Fab, Inc. and Best-Pac, Inc., but could not be honored by the bidders due to extreme price volatility in the steel market; and, WHEREAS, because of this volatility (and hence the price of steel 2 to 8 yard dumpsters, roll-off style boxes and receiver boxes), normal competitive bidding procedures are unworkable, impractical and not feasible; and, WHEREAS, the Solid Waste & Recycling Division proposes to obtain telephone or fax bids by direct solicitation of the suppliers who previously bid during the formal process and accept the lowest bid in this abbreviated process. 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 finds that such circumstances constitute an exceptional situation where competitive bidding is not feasible or practical, and therefore waives the requirements of formal competitive bidding for the purchase of 2 to 8 yard dumpsters, roll-off style boxes and receiver boxes for 2005, but requires that the Solid Waste & Recycling Division solicit fax bids from at least three suppliers and award the bid to the lowest bid submitted. Section 2. That the City Council of the City of Fayetteville, Arkansas hereby approves the purchase of 2 to 8 yard dumpsters in an amount not to exceed $40,000.00. Section 3 . That the City Council of the City of Fayetteville, Arkansas hereby approves the purchase of roll-off style boxes and receiver boxes in an amount not to exceed $20,000.00. PASSED and APPROVED this 15'" day of February 2005. APPROV By: DAN COOD , Mayor ATTEST: ".NOfTRf'',.. B / :G\1 Y Oce) SGS Y: SONDRA SMITH, Cilerk a Ua : FAYETfEVILLE ' DeD 0 a � 15- SDS Ci Council Agenda Item y G8o To: Mayor and City Council From: Gary Dumas Date: January 21th, 2005 Subject: Bid waiver to purchase roll off style boxes, receiver boxes and 2 to 8 yard dumpsters for Solid Waste and Recycling in lieu of bid award. Recommendation: Staff requests approving a bid waiver to allow the Solid Waste and Recycling Division to solicit quotes from manufacturers in order to receive the best prices possible for the purchase of roll off style boxes, receiver boxes, and 2 to 8 yard dumpsters for commercial collection. Background: Traditionally the Solid Waste and Recycling Division requests yearly bids for the purchase of these items. However, recently manufacturers have indicated to staff the uncertainty of honoring bids due to the uncertainty of steel prices related to the production of containers. Manufacturer prices quoted in January could be subject to increases in costs throughout the year and any bids received by the City would be accompanied with letters from the manufacturers detailing the possibility for increases should they occur. Due to the possibility of volatile pricing, staff believes the best prices for these containers can be obtained by receiving quotes before a purchase is made. Discussion: Since containers are purchased on an as-needed basis, a bid waiver would be required to make purchases in lieu of not having a bid award in place for the year. Manufacturers have told staff that yearly bids are not practical during these times as steel prices continue to rise and production costs are unstable. Two bid waivers were granted in 2004 for purchases of these containers as a result of similar circumstances. Bids 03-80 and 03-79 were awarded to Wastequip May Fab Inc. and Best-Pac Inc. for the purchases of 2 to 8 yard dumpsters and roll-off style and receiver boxes respectively. Resolutions 14-04 and 15-04 granted authority to award these bids. On May 18`h, 2004 and August 3'a, 2004 ordinances 4575 and 4601 were passed to provide waiving competitive bidding requirements for purchases of these containers due to bidders not able to honor bids resulting from an unanticipated jump in steel prices and a volatile steel market. The 2004 budget for 2 to 8 yard dumpster budget was set at $63,000.00. The 2004 budget for roll-off style boxes and receiver boxes budget was set at $85,859.00. All purchases made during 2004 were within these budgeted amounts. Staff hopes to avoid another similar situation by waiving bids altogether at the beginning of 2005 to allow for purchases of these containers. Again purchases would be made as needed from the best quotes available at the time of purchase. The increase in business requests for the drop box program and a continued need for dumpsters is prompting the need for purchases of these containers. 1 of 2 1/21/2005 9:58:53 AM City Council Agenda Item Budget Impact: These containers are anticipated and budgeted into Solid Waste's Commercial Collection program and Commercial Drop Box Program within the container costs account, 5500.5010.5870.00 and 5500.5030.5870.00. The budget for 2005 for these purchases is $40,000 and $20,000 respectively. 2 of 2 1/21/2005 9:58:53 AM ORDINANCE NO. AN ORDINANCE WANING THE REQUIREMENTS OF FORMAL COMPETITIVE BIDDING DURING 2005 FOR THE PURCHASE OF 2 TO 8 YARD DUMPSTERS, ROLL-OFF STYLE BOXES AND RECEIVER BOXES AND TO APPROVE THE PURCHASE OF 2 TO 8 YARD DUMPSTERS IN AN AMOUNT NOT TO EXCEED $20,000.00; AND TO APPROVE THE PURCHASE OF ROLL-OFF STYLE BOXES AND RECEIVER BOXES IN AN AMOUNT NOT TO EXCEED $40,000.00. WHEREAS, previous bids were awarded to WasteEquip May Fab, Inc. and Best-Pac, Inc., but could not be honored by the bidders due to extreme price volatility in the steel market; and, WHEREAS, because of this volatility (and hence the price of steel 2 to 8 yard dumpsters, roll-off style boxes and receiver boxes), normal competitive bidding procedures are unworkable, impractical and not feasible; and, WHEREAS, the Solid Waste & Recycling Division proposes to obtain telephone or fax bids by direct solicitation of the suppliers who previously bid during the formal process and accept the lowest bid in this abbreviated process. 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 finds that such circumstances constitute an exceptional situation where competitive bidding is not feasible or practical, and therefore waives the requirements of formal competitive bidding for the purchase of 2 to 8 yard dumpsters, roll-off style boxes and receiver boxes for 2005, but requires that the Solid Waste & Recycling Division solicit fax bids from at least three suppliers and awardtli to the lowest bid submitted. Section 2. That the City Council of the City of Fayetteville,-A" r asrl et by app ves the purchase of 2 to 8 yard dumpsters in an amount not to exceed $300000. Section 3 . That the City Council of the City ,of�Fayetteville., 1,11 ansas hereby app ves the purchase of roll-off style boxes and receiver boxes' in .a amount not I eKne $40,000.0 MAO P ' PASSED and APPROY his day of/, bru8 2005 . / PR�ED: Jr B ` 4 ! y DAN COODY, Mayor ATTEST. By. r0i SON RA SMi H, City Clerk 74 L City of Fayetteville Staff Review Form City Council Agenda Items Contracts 15-Feb-05 City Council Meeting Date Brian Pugh Solid Waste and Recycling Operations Submitted By Division Department Action Required: Approve Bid Waiver to purchase roll off style boxes, receiver boxes and 2 to 8 yard dumpsters for Solid Waste and Recycling in lieu of bid award. $40,000.00 $409000 Container Costs $20,000.00 $209000 Container Costs Cost of this request Category/Project Budget Program Category / Pro ect Name 5500-5010-5870-00 $ Not applicable 5500-5030-5870-00 $ Not applicable Account Number Funds Used to Date Program / Project Category Name Not applicable $ 40,000.00 Solid Waste Notapplicable $ 20,000.00 Solid Waste Project Number Remaining Balance Fund Name Budgeted Item Budget Adjustment Attached Previous Ordinance or Resolution # 4575 & 4601 Department D ector Date Original Contract Date: Original Contract Number: City Attor TY Received in City Clerk's Office 06 At Finance and Inter al Service Director Date Received in Mayor's Office Z L"I Mayor Date Comments: Purchases for dumpsteA, drop boxes and compactors are only on an as-basis.