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.